HF 975

1st Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 05/14/2013 05:18 p.m.

1.1A bill for an act 1.2relating to human services; modifying provisions related to fair hearings and 1.3internal audits; creating the Cultural and Ethnic Leadership Communities 1.4Council; removing obsolete language; making technical changes;amending 1.5Minnesota Statutes 2012, sections 245.4661, subdivisions 2, 6; 245.482, 1.6subdivision 5; 256.01, subdivision 2; 256.017, subdivision 1; 256.045, 1.7subdivisions 1, 3, 4, 5; 256.0451, subdivisions 5, 13, 22, 24; 256B.055, 1.8subdivision 12; 256B.056, subdivision 11; 256B.057, subdivision 3b; 256B.0595, 1.9subdivisions 1, 2, 4, 9; 256D.02, subdivision 12a; 256J.30, subdivisions 8, 9; 1.10256J.37, subdivision 3a; 256J.395, subdivision 1; 256J.575, subdivision 3; 1.11256J.626, subdivisions 6, 7; 256J.72, subdivisions 1, 3; repealing Minnesota 1.12Statutes 2012, sections 245.461, subdivision 3; 245.463, subdivisions 1, 3, 4; 1.13256.01, subdivisions 2a, 13, 23a; 256B.0185; 256D.02, subdivision 4a; 256J.575, 1.14subdivision 4; 256J.74, subdivision 4; 256L.04, subdivision 9. 1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16ARTICLE 1 1.17FAIR HEARINGS 1.18    Section 1. Minnesota Statutes 2012, section 256.045, subdivision 1, is amended to read: 1.19    Subdivision 1. Powers of the state agency. The commissioner of human services 1.20may appoint one or more state human services referees to conduct hearings and 1.21recommend orders in accordance with subdivisions 3, 3a, 3b, 4a, and 5. Human services 1.22referees designated pursuant to this section may administer oaths and shall be under the 1.23control and supervision of the commissioner of human services and shall not be a part 1.24of the Office of Administrative Hearings established pursuant to sections 14.48 to 14.56. 1.25 new text begin The commissioner shall only appoint as a full-time human services judge an individual new text end 1.26 new text begin who is licensed to practice law in Minnesota and who is: new text end 1.27 new text begin (1) in active status; new text end 2.1 new text begin (2) an inactive resident; new text end 2.2 new text begin (3) retired; new text end 2.3 new text begin (4) on disabled status; or new text end 2.4 new text begin (5) on retired senior status. new text end 2.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 2.6    Sec. 2. Minnesota Statutes 2012, section 256.045, subdivision 3, is amended to read: 2.7    Subd. 3. State agency hearings. (a) State agency hearings are available for the 2.8following: 2.9    (1) any person applying for, receiving or having received public assistance, medical 2.10care, or a program of social services granted by the state agency or a county agency or 2.11the federal Food Stamp Act whose application for assistance is denied, not acted upon 2.12with reasonable promptness, or whose assistance is suspended, reduced, terminated, or 2.13claimed to have been incorrectly paid; 2.14    (2) any patient or relative aggrieved by an order of the commissioner under section 2.15252.27 ; 2.16    (3) a party aggrieved by a ruling of a prepaid health plan; 2.17    (4) except as provided under chapter 245C, any individual or facility determined by a 2.18lead investigative agency to have maltreated a vulnerable adult under section 626.557 after 2.19they have exercised their right to administrative reconsideration under section 626.557; 2.20    (5) any person whose claim for foster care payment according to a placement of the 2.21child resulting from a child protection assessment under section 626.556 is denied or not 2.22acted upon with reasonable promptness, regardless of funding source; 2.23    (6) any person to whom a right of appeal according to this section is given by other 2.24provision of law; 2.25    (7) an applicant aggrieved by an adverse decision to an application for a hardship 2.26waiver under section 256B.15; 2.27    (8) an applicant aggrieved by an adverse decision to an application or redetermination 2.28for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a; 2.29    (9) except as provided under chapter 245A, an individual or facility determined 2.30to have maltreated a minor under section 626.556, after the individual or facility has 2.31exercised the right to administrative reconsideration under section 626.556; 2.32    (10) except as provided under chapter 245C, an individual disqualified under 2.33sections 245C.14 and 245C.15, following a reconsideration decision issued under section 2.34245C.23 , on the basis of serious or recurring maltreatment; a preponderance of the 2.35evidence that the individual has committed an act or acts that meet the definition of any of 3.1the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports 3.2required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings 3.3regarding a maltreatment determination under clause (4) or (9) and a disqualification under 3.4this clause in which the basis for a disqualification is serious or recurring maltreatment, 3.5shall be consolidated into a single fair hearing. In such cases, the scope of review by 3.6the human services referee shall include both the maltreatment determination and the 3.7disqualification. The failure to exercise the right to an administrative reconsideration shall 3.8not be a bar to a hearing under this section if federal law provides an individual the right to 3.9a hearing to dispute a finding of maltreatment. Individuals and organizations specified in 3.10this section may contest the specified action, decision, or final disposition before the state 3.11agency by submitting a written request for a hearing to the state agency within 30 days 3.12after receiving written notice of the action, decision, or final disposition, or within 90 days 3.13of such written notice if the applicant, recipient, patient, or relative shows good cause why 3.14the request was not submitted within the 30-day time limit; or 3.15    (11) any person with an outstanding debt resulting from receipt of public assistance, 3.16medical care, or the federal Food Stamp Act who is contesting a setoff claim by the 3.17Department of Human Services or a county agency. The scope of the appeal is the validity 3.18of the claimant agency's intention to request a setoff of a refund under chapter 270A 3.19against the debt. 3.20    (b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or 3.21(10), is the only administrative appeal to the final agency determination specifically, 3.22including a challenge to the accuracy and completeness of data under section 13.04. 3.23Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment 3.24that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing 3.25homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a 3.26contested case proceeding under the provisions of chapter 14. Hearings requested under 3.27paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after 3.28July 1, 1997. A hearing for an individual or facility under paragraph (a), clause new text begin clauses new text end 3.29 new text begin (4), new text end (9), new text begin and (10), new text end is only available when there is no juvenile court or adult criminal new text begin district new text end 3.30 new text begin court new text end action pending. If such action is filed in either new text begin district new text end court while an administrative 3.31review is pending, new text begin that arises out of some or all of the events or circumstances on which new text end 3.32 new text begin the appeal is based new text end the administrative review must be suspended until the judicial actions 3.33are completed. If the juvenile court action or criminal charge is new text begin district court proceedings new text end 3.34 new text begin are completed, new text end dismissed new text begin , new text end or the criminal action overturned, the matter may be considered 3.35in an administrative hearing. 4.1    (c) For purposes of this section, bargaining unit grievance procedures are not an 4.2administrative appeal. 4.3    (d) The scope of hearings involving claims to foster care payments under paragraph 4.4(a), clause (5), shall be limited to the issue of whether the county is legally responsible for a 4.5child's placement under court order or voluntary placement agreement and, if so, the correct 4.6amount of foster care payment to be made on the child's behalf and shall not include review 4.7of the propriety of the county's child protection determination or child placement decision. 4.8    (e) A vendor of medical care as defined in section 256B.02, subdivision 7, or a 4.9vendor under contract with a county agency to provide social services is not a party and 4.10may not request a hearing under this section, except if assisting a recipient as provided in 4.11subdivision 4. 4.12    (f) An applicant or recipient is not entitled to receive social services beyond the 4.13services prescribed under chapter 256M or other social services the person is eligible 4.14for under state law. 4.15    (g) The commissioner may summarily affirm the county or state agency's proposed 4.16action without a hearing when the sole issue is an automatic change due to a change in 4.17state or federal law. 4.18     new text begin (h) Unless federal or Minnesota law specifies a different time frame in which to file new text end 4.19 new text begin an appeal, an individual or organization specified in this section may contest the specified new text end 4.20 new text begin action, decision, or final disposition before the state agency by submitting a written request new text end 4.21 new text begin for a hearing to the state agency within 30 days after receiving written notice of the action, new text end 4.22 new text begin decision, or final disposition, or within 90 days of such written notice if the applicant, new text end 4.23 new text begin recipient, patient, or relative shows good cause, as defined in section 256.0451, subdivision new text end 4.24 new text begin 13, why the request was not submitted within the 30-day time limit. The individual filing new text end 4.25 new text begin the appeal has the burden of proving good cause by a preponderance of the evidence. new text end 4.26    Sec. 3. Minnesota Statutes 2012, section 256.045, subdivision 4, is amended to read: 4.27    Subd. 4. Conduct of hearings. (a) All hearings held pursuant to subdivision 3, 3a, 4.283b, or 4a shall be conducted according to the provisions of the federal Social Security 4.29Act and the regulations implemented in accordance with that act to enable this state to 4.30qualify for federal grants-in-aid, and according to the rules and written policies of the 4.31commissioner of human services. County agencies shall install equipment necessary to 4.32conduct telephone hearings. A state human services referee may schedule a telephone 4.33conference hearing when the distance or time required to travel to the county agency 4.34offices will cause a delay in the issuance of an order, or to promote efficiency, or at the 4.35mutual request of the parties. Hearings may be conducted by telephone conferences unless 5.1the applicant, recipient, former recipient, person, or facility contesting maltreatment 5.2objects. new text begin A human service judge may grant a request for a hearing in person by holding the new text end 5.3 new text begin hearing by interactive video technology or in person. The human services judge must hear new text end 5.4 new text begin the case in person if the person asserts that either the person or a witness has a physical new text end 5.5 new text begin or mental disability that would impair their ability to fully participate in a hearing held new text end 5.6 new text begin by interactive video technology. new text end The hearing shall not be held earlier than five days after 5.7filing of the required notice with the county or state agency. The state human services 5.8referee shall notify all interested persons of the time, date, and location of the hearing at 5.9least five days before the date of the hearing. Interested persons may be represented 5.10by legal counsel or other representative of their choice, including a provider of therapy 5.11services, at the hearing and may appear personally, testify and offer evidence, and examine 5.12and cross-examine witnesses. The applicant, recipient, former recipient, person, or facility 5.13contesting maltreatment shall have the opportunity to examine the contents of the case 5.14file and all documents and records to be used by the county or state agency at the hearing 5.15at a reasonable time before the date of the hearing and during the hearing. In hearings 5.16under subdivision 3, paragraph (a), clauses (4), (8), and (9), either party may subpoena the 5.17private data relating to the investigation prepared by the agency under section 626.556 5.18or 626.557 that is not otherwise accessible under section 13.04, provided the identity of 5.19the reporter may not be disclosed. 5.20(b) The private data obtained by subpoena in a hearing under subdivision 3, 5.21paragraph (a), clause (4), (8), or (9), must be subject to a protective order which prohibits 5.22its disclosure for any other purpose outside the hearing provided for in this section without 5.23prior order of the district court. Disclosure without court order is punishable by a sentence 5.24of not more than 90 days imprisonment or a fine of not more than $1,000, or both. These 5.25restrictions on the use of private data do not prohibit access to the data under section 13.03, 5.26subdivision 6 . Except for appeals under subdivision 3, paragraph (a), clauses (4), (5), (8), 5.27and (9), upon request, the county agency shall provide reimbursement for transportation, 5.28child care, photocopying, medical assessment, witness fee, and other necessary and 5.29reasonable costs incurred by the applicant, recipient, or former recipient in connection with 5.30the appeal. All evidence, except that privileged by law, commonly accepted by reasonable 5.31people in the conduct of their affairs as having probative value with respect to the issues 5.32shall be submitted at the hearing and such hearing shall not be "a contested case" within 5.33the meaning of section 14.02, subdivision 3. The agency must present its evidence prior to 5.34or at the hearing, and may not submit evidence after the hearing except by agreement of 5.35the parties at the hearing, provided the petitioner has the opportunity to respond. 6.1(c) In hearings under subdivision 3, paragraph (a), clauses (4), (8), and (9), involving 6.2determinations of maltreatment or disqualification made by more than one county agency, 6.3by a county agency and a state agency, or by more than one state agency, the hearings 6.4may be consolidated into a single fair hearing upon the consent of all parties and the state 6.5human services referee. 6.6(d) For hearings under subdivision 3, paragraph (a), clause (4) or (10), involving a 6.7vulnerable adult, the human services referee shall notify the vulnerable adult who is the 6.8subject of the maltreatment determination and, if known, a guardian of the vulnerable adult 6.9appointed under section 524.5-310, or a health care agent designated by the vulnerable 6.10adult in a health care directive that is currently effective under section 145C.06 and whose 6.11authority to make health care decisions is not suspended under section 524.5-310, of the 6.12hearing. The notice must be sent by certified mail and inform the vulnerable adult of the 6.13right to file a signed written statement in the proceedings. A guardian or health care agent 6.14who prepares or files a written statement for the vulnerable adult must indicate in the 6.15statement that the person is the vulnerable adult's guardian or health care agent and sign 6.16the statement in that capacity. The vulnerable adult, the guardian, or the health care agent 6.17may file a written statement with the human services referee hearing the case no later than 6.18five business days before commencement of the hearing. The human services referee shall 6.19include the written statement in the hearing record and consider the statement in deciding 6.20the appeal. This subdivision does not limit, prevent, or excuse the vulnerable adult from 6.21being called as a witness testifying at the hearing or grant the vulnerable adult, the guardian, 6.22or health care agent a right to participate in the proceedings or appeal the human services 6.23referee's decision in the case. The lead investigative agency must consider including the 6.24vulnerable adult victim of maltreatment as a witness in the hearing. If the lead investigative 6.25agency determines that participation in the hearing would endanger the well-being of the 6.26vulnerable adult or not be in the best interests of the vulnerable adult, the lead investigative 6.27agency shall inform the human services referee of the basis for this determination, which 6.28must be included in the final order. If the human services referee is not reasonably able to 6.29determine the address of the vulnerable adult, the guardian, or the health care agent, the 6.30human services referee is not required to send a hearing notice under this subdivision. 6.31    Sec. 4. Minnesota Statutes 2012, section 256.045, subdivision 5, is amended to read: 6.32    Subd. 5. Orders of the commissioner of human services. A state human 6.33services referee shall conduct a hearing on the appeal and shall recommend an order 6.34to the commissioner of human services. The recommended order must be based on all 6.35relevant evidence and must not be limited to a review of the propriety of the state or 7.1county agency's action. A referee may take official notice of adjudicative facts. The 7.2commissioner of human services may accept the recommended order of a state human 7.3services referee and issue the order to the county agency and the applicant, recipient, 7.4former recipient, or prepaid health plan. The commissioner on refusing to accept the 7.5recommended order of the state human services referee, shall notify the petitioner, the 7.6agency, or prepaid health plan of that fact and shall state reasons therefor and shall allow 7.7each party ten days' time to submit additional written argument on the matter. After the 7.8expiration of the ten-day period, the commissioner shall issue an order on the matter to the 7.9petitioner, the agency, or prepaid health plan. 7.10A party aggrieved by an order of the commissioner may appeal under subdivision 7.117, or request reconsideration by the commissioner within 30 days after the date the 7.12commissioner issues the order. The commissioner may reconsider an order upon request 7.13of any party or on the commissioner's own motion. A request for reconsideration does 7.14not stay implementation of the commissioner's order. new text begin The person seeking reconsideration new text end 7.15 new text begin has the burden to demonstrate why the matter should be reconsidered. The request for new text end 7.16 new text begin reconsideration may include legal argument and proposed additional evidence supporting new text end 7.17 new text begin the request. If proposed additional evidence is submitted, the person must explain new text end 7.18 new text begin why the proposed additional evidence was not provided at the time of the hearing. If new text end 7.19 new text begin reconsideration is granted, the other participants must be sent a copy of all material new text end 7.20 new text begin submitted in support of the request for reconsideration and must be given ten days to new text end 7.21 new text begin respond. new text end Upon reconsideration, the commissioner may issue an amended order or an 7.22order affirming the original order. 7.23Any order of the commissioner issued under this subdivision shall be conclusive 7.24upon the parties unless appeal is taken in the manner provided by subdivision 7. Any 7.25order of the commissioner is binding on the parties and must be implemented by the state 7.26agency, a county agency, or a prepaid health plan according to subdivision 3a, until the 7.27order is reversed by the district court, or unless the commissioner or a district court orders 7.28monthly assistance or aid or services paid or provided under subdivision 10. 7.29A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor 7.30under contract with a county agency to provide social services is not a party and may not 7.31request a hearing or seek judicial review of an order issued under this section, unless 7.32assisting a recipient as provided in subdivision 4. A prepaid health plan is a party to an 7.33appeal under subdivision 3a, but cannot seek judicial review of an order issued under 7.34this section. 7.35    Sec. 5. Minnesota Statutes 2012, section 256.0451, subdivision 5, is amended to read: 8.1    Subd. 5. Prehearing conferences. (a) The appeals referee prior to a fair hearing 8.2appeal may hold a prehearing conference to further the interests of justice or efficiency 8.3and must include the person involved in the appeal. A person involved in a fair hearing 8.4appeal or the agency may request a prehearing conference. The prehearing conference 8.5may be conducted by telephone, in person, or in writing. The prehearing conference 8.6may address the following: 8.7(1) disputes regarding access to files, evidence, subpoenas, or testimony; 8.8(2) the time required for the hearing or any need for expedited procedures or decision; 8.9(3) identification or clarification of legal or other issues that may arise at the hearing; 8.10(4) identification of and possible agreement to factual issues; and 8.11(5) scheduling and any other matter which will aid in the proper and fair functioning 8.12of the hearing. 8.13(b) The appeals referee shall make a record or otherwise contemporaneously 8.14summarize the prehearing conference in writing, which shall be sent to both the person 8.15involved in the hearing, the person's attorney or authorized representative, and the agency. 8.16 new text begin A human services judge may make and issue rulings and orders while the appeal is new text end 8.17 new text begin pending. During the pendency of the appeal these rulings and orders are not subject to new text end 8.18 new text begin a request for reconsideration or appeal. These rulings and orders are subject to review new text end 8.19 new text begin under subdivision 24 and section 256.045, subdivision 7. new text end 8.20    Sec. 6. Minnesota Statutes 2012, section 256.0451, subdivision 13, is amended to read: 8.21    Subd. 13. Failure to appear; good cause. If a person involved in a fair hearing 8.22appeal fails to appear at the hearing, the appeals referee may dismiss the appeal. The 8.23person new text begin human services judge new text end may reopen the appeal if within ten working days new text begin after the new text end 8.24 new text begin date of the dismissal new text end the person submits new text begin files new text end information to new text begin in writing with new text end the appeals 8.25referee to show good cause for not appearing. Good cause can be shown when there is: 8.26(1) a death or serious illness in the person's family; 8.27(2) a personal injury or illness which reasonably prevents the person from attending 8.28the hearing; 8.29(3) an emergency, crisis, or unforeseen event which reasonably prevents the person 8.30from attending the hearing; 8.31(4) an obligation or responsibility of the person which a reasonable person, in the 8.32conduct of one's affairs, could reasonably determine takes precedence over attending 8.33the hearing; 8.34(5) lack of or failure to receive timely notice of the hearing in the preferred language 8.35of the person involved in the hearing; and 9.1(6) excusable neglect, excusable inadvertence, excusable mistake, or other good 9.2cause as determined by the appeals referee. 9.3    Sec. 7. Minnesota Statutes 2012, section 256.0451, subdivision 22, is amended to read: 9.4    Subd. 22. Decisions. A timely, written decision must be issued in every appeal. 9.5Each decision must contain a clear ruling on the issues presented in the appeal hearing 9.6and should contain a ruling only on questions directly presented by the appeal and the 9.7arguments raised in the appeal. 9.8(a) A written decision must be issued within 90 days of the date the person involved 9.9requested the appeal unless a shorter time is required by law. An additional 30 days is 9.10provided in those cases where the commissioner refuses to accept the recommended 9.11decision. new text begin In appeals of maltreatment determinations or disqualifications filed pursuant new text end 9.12 new text begin to section 256.045, subdivision 3, paragraph (a), clause (4), (9), or (10), that also give new text end 9.13 new text begin rise to possible licensing actions, the 90-day period for issuing final decisions does not new text end 9.14 new text begin begin until the later of the date that the licensing authority provides notice to the appeals new text end 9.15 new text begin division that the authority has made the final determination in the matter or the date the new text end 9.16 new text begin appellant files the last appeal in the consolidated matters. new text end 9.17(b) The decision must contain both findings of fact and conclusions of law, clearly 9.18separated and identified. The findings of fact must be based on the entire record. Each 9.19finding of fact made by the appeals referee shall be supported by a preponderance of 9.20the evidence unless a different standard is required under the regulations of a particular 9.21program. The "preponderance of the evidence" means, in light of the record as a whole, 9.22the evidence leads the appeals referee to believe that the finding of fact is more likely to be 9.23true than not true. The legal claims or arguments of a participant do not constitute either a 9.24finding of fact or a conclusion of law, except to the extent the appeals referee adopts an 9.25argument as a finding of fact or conclusion of law. 9.26The decision shall contain at least the following: 9.27(1) a listing of the date and place of the hearing and the participants at the hearing; 9.28(2) a clear and precise statement of the issues, including the dispute under 9.29consideration and the specific points which must be resolved in order to decide the case; 9.30(3) a listing of the material, including exhibits, records, reports, placed into evidence 9.31at the hearing, and upon which the hearing decision is based; 9.32(4) the findings of fact based upon the entire hearing record. The findings of fact 9.33must be adequate to inform the participants and any interested person in the public of the 9.34basis of the decision. If the evidence is in conflict on an issue which must be resolved, the 9.35findings of fact must state the reasoning used in resolving the conflict; 10.1(5) conclusions of law that address the legal authority for the hearing and the ruling, 10.2and which give appropriate attention to the claims of the participants to the hearing; 10.3(6) a clear and precise statement of the decision made resolving the dispute under 10.4consideration in the hearing; and 10.5(7) written notice of the right to appeal to district court or to request reconsideration, 10.6and of the actions required and the time limits for taking appropriate action to appeal to 10.7district court or to request a reconsideration. 10.8(c) The appeals referee shall not independently investigate facts or otherwise rely on 10.9information not presented at the hearing. The appeals referee may not contact other agency 10.10personnel, except as provided in subdivision 18. The appeals referee's recommended 10.11decision must be based exclusively on the testimony and evidence presented at the hearing, 10.12and legal arguments presented, and the appeals referee's research and knowledge of the law. 10.13(d) The commissioner will review the recommended decision and accept or refuse to 10.14accept the decision according to section 256.045, subdivision 5. 10.15    Sec. 8. Minnesota Statutes 2012, section 256.0451, subdivision 24, is amended to read: 10.16    Subd. 24. Reconsideration. new text begin (a) new text end Reconsideration may be requested within 30 days 10.17of the date of the commissioner's final order. If reconsideration is requested new text begin under section new text end 10.18 new text begin 256.045, subdivision 5 new text end , the other participants in the appeal shall be informed of the 10.19request. The person seeking reconsideration has the burden to demonstrate why the matter 10.20should be reconsidered. The request for reconsideration may include legal argument and 10.21may include proposed additional evidence supporting the request. The other participants 10.22shall be sent a copy of all material submitted in support of the request for reconsideration 10.23and must be given ten days to respond. 10.24(a) new text begin (b) new text end When the requesting party raises a question as to the appropriateness of the 10.25findings of fact, the commissioner shall review the entire record. 10.26(b) new text begin (c) new text end When the requesting party questions the appropriateness of a conclusion 10.27of law, the commissioner shall consider the recommended decision, the decision under 10.28reconsideration, and the material submitted in connection with the reconsideration. The 10.29commissioner shall review the remaining record as necessary to issue a reconsidered 10.30decision. 10.31(c) new text begin (d) new text end The commissioner shall issue a written decision on reconsideration in a 10.32timely fashion. The decision must clearly inform the parties that this constitutes the final 10.33administrative decision, advise the participants of the right to seek judicial review, and 10.34the deadline for doing so. 11.1    Sec. 9. new text begin REVISOR'S INSTRUCTION. new text end 11.2 new text begin The revisor is instructed to substitute the term "human services judge" for the term new text end 11.3 new text begin "appeals examiner," "human services referee," "referee," or any similar terms referring new text end 11.4 new text begin to the human services referees appointed by the commissioner of human services under new text end 11.5 new text begin Minnesota Statutes, section 256.045, subdivision 1, wherever they appear in Minnesota new text end 11.6 new text begin Statutes, sections 256.045, 256.0451, 256.046, or elsewhere in Minnesota Statutes. new text end 11.7ARTICLE 2 11.8CULTURAL AND ETHNIC COMMUNITIES 11.9LEADERSHIP COUNCIL 11.10    Section 1. new text begin CULTURAL AND ETHNIC COMMUNITIES LEADERSHIP new text end 11.11 new text begin COUNCIL. new text end 11.12     new text begin Subdivision 1. new text end new text begin Establishment; purpose. new text end new text begin There is hereby established the Cultural new text end 11.13 new text begin and Ethnic Communities Leadership Council for the Department of Human Services. The new text end 11.14 new text begin purpose of the council is to advise the commissioner of human services on reducing new text end 11.15 new text begin disparities that affect racial and ethnic groups. new text end 11.16     new text begin Subd. 2. new text end new text begin Members. new text end new text begin The council must consist of: (1) the chairs and ranking minority new text end 11.17 new text begin members of the committees in the house of representatives and the senate with jurisdiction new text end 11.18 new text begin over human services; and (2) no fewer than 15 and no more than 25 members appointed new text end 11.19 new text begin by the commissioner of human services, in consultation with county, tribal, cultural, new text end 11.20 new text begin and ethnic communities; diverse program participants; and parent representatives from new text end 11.21 new text begin these communities. In making appointments under this subdivision, the commissioner new text end 11.22 new text begin shall give priority in consideration to public members of the legislative councils of color new text end 11.23 new text begin established under chapter 3. new text end 11.24     new text begin Subd. 3. new text end new text begin Guidelines. new text end new text begin (a) The commissioner shall direct the development of new text end 11.25 new text begin guidelines defining the membership of the council; setting out definitions; and developing new text end 11.26 new text begin duties of the commissioner, the council, and council members regarding racial and ethnic new text end 11.27 new text begin disparities reduction. The guidelines must be developed in consultation with: new text end 11.28 new text begin (1) the chairs of relevant committees; and new text end 11.29 new text begin (2) county, tribal, and cultural communities and program participants from these new text end 11.30 new text begin communities. new text end 11.31 new text begin (b) Members must be appointed to allow for representation of the following groups: new text end 11.32 new text begin (1) racial and ethnic minority groups; new text end 11.33 new text begin (2) tribal service providers; new text end 11.34 new text begin (3) culturally and linguistically specific advocacy groups and service providers; new text end 11.35 new text begin (4) human services program participants; new text end 12.1 new text begin (5) public and private institutions; new text end 12.2 new text begin (6) parents of human services program participants; new text end 12.3 new text begin (7) members of the faith community; new text end 12.4 new text begin (8) Department of Human Services employees; and new text end 12.5 new text begin (9) any other group the commissioner deems appropriate to facilitate the goals new text end 12.6 new text begin and duties of the council. new text end 12.7     new text begin Subd. 4. new text end new text begin First appointments and first meeting. new text end new text begin The commissioner shall appoint new text end 12.8 new text begin at least 15 members by September 15, 2013, and shall convene the first meeting of the new text end 12.9 new text begin council by November 15, 2013. new text end 12.10     new text begin Subd. 5. new text end new text begin Chair. new text end new text begin The commissioner shall appoint a chair. new text end 12.11     new text begin Subd. 6. new text end new text begin Terms for first appointees. new text end new text begin Seven of the first members shall serve until new text end 12.12 new text begin January 15, 2015. The remainder of the first members shall serve until January 15, 2016. new text end 12.13     new text begin Subd. 7. new text end new text begin Terms. new text end new text begin Except for the first appointees, a term shall be for one year new text end 12.14 new text begin and appointees can be appointed to serve two terms. The commissioner shall make new text end 12.15 new text begin appointments to replace vacating members by January 15 every year. new text end 12.16     new text begin Subd. 8. new text end new text begin Compensation. new text end new text begin Public members of the council shall receive no new text end 12.17 new text begin compensation from the council for their services. new text end 12.18     new text begin Subd. 9. new text end new text begin Duties of commissioner. new text end new text begin (a) The commissioner of human services or the new text end 12.19 new text begin commissioner's designee shall: new text end 12.20 new text begin (1) maintain the council established in this section; new text end 12.21 new text begin (2) supervise and coordinate policies for persons from racial, ethnic, cultural, new text end 12.22 new text begin linguistic, and tribal communities who experience disparities in access and outcomes; new text end 12.23 new text begin (3) identify human services rules or statutes affecting persons from racial, ethnic, new text end 12.24 new text begin cultural, linguistic, and tribal communities that may need to be revised; new text end 12.25 new text begin (4) investigate and implement cost-effective models of service delivery such as new text end 12.26 new text begin careful adaptation of clinically proven services that constitute one strategy for increasing the new text end 12.27 new text begin number of culturally relevant services available to currently underserved populations; and new text end 12.28 new text begin (5) based on recommendations of the council, review identified department new text end 12.29 new text begin policies that maintain racial, ethnic, cultural, linguistic, and tribal disparities, and make new text end 12.30 new text begin adjustments to ensure those disparities are not perpetuated. new text end 12.31 new text begin (b) The commissioner of human services or the commissioner's designee shall new text end 12.32 new text begin consult with the council and receive recommendations from the council when meeting the new text end 12.33 new text begin requirements in this subdivision. new text end 12.34     new text begin Subd. 10. new text end new text begin Duties of council. new text end new text begin The Cultural and Ethnic Communities Leadership new text end 12.35 new text begin Council shall: new text end 13.1 new text begin (1) recommend to the commissioner for review identified policies in the Department new text end 13.2 new text begin of Human Services that maintain racial, ethnic, cultural, linguistic, and tribal disparities; new text end 13.3 new text begin (2) identify issues regarding disparities by engaging diverse populations in human new text end 13.4 new text begin services programs; new text end 13.5 new text begin (3) engage in mutual learning essential for achieving human services parity and new text end 13.6 new text begin optimal wellness for service recipients; new text end 13.7 new text begin (4) raise awareness about human services disparities to the legislature and media; new text end 13.8 new text begin (5) provide technical assistance and consultation support to counties, private new text end 13.9 new text begin nonprofit agencies, and other service providers to build their capacity to provide equitable new text end 13.10 new text begin human services for persons from racial, ethnic, cultural, linguistic, and tribal communities new text end 13.11 new text begin who experience disparities in access and outcomes; new text end 13.12 new text begin (6) provide technical assistance to promote statewide development of culturally new text end 13.13 new text begin and linguistically appropriate, accessible, and cost-effective human services and related new text end 13.14 new text begin policies; new text end 13.15 new text begin (7) provide training and outreach to facilitate access to culturally and linguistically new text end 13.16 new text begin appropriate, accessible, and cost-effective human services to prevent disparities; new text end 13.17 new text begin (8) facilitate culturally appropriate and culturally sensitive admissions, continued new text end 13.18 new text begin services, discharges, and utilization review for human services agencies and institutions; new text end 13.19 new text begin (9) form work groups to help carry out the duties of the council that include, but are new text end 13.20 new text begin not limited to, persons who provide and receive services and representatives of advocacy new text end 13.21 new text begin groups, and provide the work groups with clear guidelines, standardized parameters, and new text end 13.22 new text begin tasks for the work groups to accomplish; new text end 13.23 new text begin (10) promote information-sharing in the human services community and statewide; new text end 13.24 new text begin and new text end 13.25 new text begin (11) by February 15, 2014, and annually thereafter, prepare and submit a report to new text end 13.26 new text begin the chairs and ranking minority members of the committees in the house of representatives new text end 13.27 new text begin and senate with jurisdiction over human services that summarizes the activities of the new text end 13.28 new text begin council, identifies the major problems and issues confronting racial and ethnic groups in new text end 13.29 new text begin accessing human services, makes recommendations to address issues, and list the specific new text end 13.30 new text begin objectives that the council seeks to attain during the next biennium. The report must new text end 13.31 new text begin also include a list of programs, groups, and grants used to reduce disparities, and also new text end 13.32 new text begin statistically valid reports of outcomes on the reduction of the disparities. new text end 13.33     new text begin Subd. 11. new text end new text begin Duties of council members. new text end new text begin The members of the council shall: new text end 13.34 new text begin (1) attend and participate in scheduled meetings and be prepared by reviewing new text end 13.35 new text begin meeting notes; new text end 13.36 new text begin (2) maintain open communication channels with respective constituencies; new text end 14.1 new text begin (3) identify and communicate issues and risks that could impact the timely new text end 14.2 new text begin completion of tasks; new text end 14.3 new text begin (4) collaborate on disparity reduction efforts; new text end 14.4 new text begin (5) communicate updates of the council's work progress and status on the new text end 14.5 new text begin Department of Human Services Web site; and new text end 14.6 new text begin (6) participate in any activities the council or chair deem appropriate and necessary new text end 14.7 new text begin to facilitate the goals and duties of the council. new text end 14.8     new text begin Subd. 12. new text end new text begin Expiration. new text end new text begin The council expires on March 15, 2015. new text end 14.9ARTICLE 3 14.10INTERNAL AUDITS 14.11    Section 1. Minnesota Statutes 2012, section 256.017, subdivision 1, is amended to read: 14.12    Subdivision 1. Authority and purpose. The commissioner shall administer a 14.13compliance system for the Minnesota family investment program, the food stamp or food 14.14support program, emergency assistance, general assistance, medical assistance, general 14.15assistance medical care, emergency general assistance, Minnesota supplemental assistance, 14.16preadmission screening, alternative care grants, and the child care assistance program new text begin , and new text end 14.17 new text begin all other programs administered by the commissioner or on behalf of the commissioner new text end 14.18 under the powers and authorities named in section 256.01, subdivision 2. The purpose of 14.19the compliance system is to permit the commissioner to supervise the administration of 14.20public assistance programs and to enforce timely and accurate distribution of benefits, 14.21completeness of service and efficient and effective program management and operations, 14.22to increase uniformity and consistency in the administration and delivery of public 14.23assistance programs throughout the state, and to reduce the possibility of sanctions and 14.24fiscal disallowances for noncompliance with federal regulations and state statutes. new text begin The new text end 14.25 new text begin commissioner, or the commissioner's representative, may issue administrative subpoenas new text end 14.26 new text begin as needed in administering the compliance system. new text end 14.27    The commissioner shall utilize training, technical assistance, and monitoring 14.28activities, as specified in section 256.01, subdivision 2, to encourage county agency 14.29compliance with written policies and procedures. 14.30ARTICLE 4 14.31TECHNICAL CHANGES 14.32    Section 1. Minnesota Statutes 2012, section 245.4661, subdivision 2, is amended to read: 15.1    Subd. 2. Program design and implementation. (a) The pilot projects shall be 15.2established to design, plan, and improve the mental health service delivery system for 15.3adults with serious and persistent mental illness that would: 15.4(1) provide an expanded array of services from which clients can choose services 15.5appropriate to their needs; 15.6(2) be based on purchasing strategies that improve access and coordinate services 15.7without cost shifting; 15.8(3) incorporate existing state facilities and resources into the community mental 15.9health infrastructure through creative partnerships with local vendors; and 15.10(4) utilize existing categorical funding streams and reimbursement sources in 15.11combined and creative ways, except appropriations to regional treatment centers and all 15.12funds that are attributable to the operation of state-operated services are excluded unless 15.13appropriated specifically by the legislature for a purpose consistent with this section or 15.14section 246.0136, subdivision 1. 15.15(b) All projects funded by January 1, 1997, must complete the planning phase and be 15.16operational by June 30, 1997; all projects funded by January 1, 1998, must be operational 15.17by June 30, 1998. 15.18    Sec. 2. Minnesota Statutes 2012, section 245.4661, subdivision 6, is amended to read: 15.19    Subd. 6. Duties of commissioner. (a) For purposes of the pilot projects, the 15.20commissioner shall facilitate integration of funds or other resources as needed and 15.21requested by each project. These resources may include: 15.22(1) residential services funds administered under Minnesota Rules, parts 9535.2000 15.23to 9535.3000, in an amount to be determined by mutual agreement between the project's 15.24managing entity and the commissioner of human services after an examination of the 15.25county's historical utilization of facilities located both within and outside of the county 15.26and licensed under Minnesota Rules, parts 9520.0500 to 9520.0690; 15.27(2) new text begin (1) new text end community support services funds administered under Minnesota Rules, 15.28parts 9535.1700 to 9535.1760; 15.29(3) new text begin (2) new text end other mental health special project funds; 15.30(4) new text begin (3) new text end medical assistance, general assistance medical care, MinnesotaCare and group 15.31residential housing if requested by the project's managing entity, and if the commissioner 15.32determines this would be consistent with the state's overall health care reform efforts; and 15.33(5) new text begin (4) new text end regional treatment center resources consistent with section 246.0136, 15.34subdivision 1 . 16.1(b) The commissioner shall consider the following criteria in awarding start-up and 16.2implementation grants for the pilot projects: 16.3(1) the ability of the proposed projects to accomplish the objectives described in 16.4subdivision 2; 16.5(2) the size of the target population to be served; and 16.6(3) geographical distribution. 16.7(c) The commissioner shall review overall status of the projects initiatives at least 16.8every two years and recommend any legislative changes needed by January 15 of each 16.9odd-numbered year. 16.10(d) The commissioner may waive administrative rule requirements which are 16.11incompatible with the implementation of the pilot project. 16.12(e) The commissioner may exempt the participating counties from fiscal sanctions 16.13for noncompliance with requirements in laws and rules which are incompatible with the 16.14implementation of the pilot project. 16.15(f) The commissioner may award grants to an entity designated by a county board or 16.16group of county boards to pay for start-up and implementation costs of the pilot project. 16.17    Sec. 3. Minnesota Statutes 2012, section 245.482, subdivision 5, is amended to read: 16.18    Subd. 5. Commissioner's consolidated reporting recommendations. The 16.19commissioner's reports of February 15, 1990, required under sections 245.461, subdivision 16.203 , and new text begin section new text end 245.487, subdivision 4, shall include recommended measures to provide 16.21coordinated, interdepartmental efforts to ensure early identification and intervention for 16.22children with, or at risk of developing, emotional disturbance, to improve the efficiency 16.23of the mental health funding mechanisms, and to standardize and consolidate fiscal and 16.24program reporting. The recommended measures must provide that client needs are met 16.25in an effective and accountable manner and that state and county resources are used as 16.26efficiently as possible. The commissioner shall consider the advice of the state advisory 16.27council and the children's subcommittee in developing these recommendations. 16.28    Sec. 4. Minnesota Statutes 2012, section 256.01, subdivision 2, is amended to read: 16.29    Subd. 2. Specific powers. Subject to the provisions of section 241.021, subdivision 16.302 , the commissioner of human services shall carry out the specific duties in paragraphs (a) 16.31through (cc): 16.32    (a) Administer and supervise all forms of public assistance provided for by state law 16.33and other welfare activities or services as are vested in the commissioner. Administration 16.34and supervision of human services activities or services includes, but is not limited to, 17.1assuring timely and accurate distribution of benefits, completeness of service, and quality 17.2program management. In addition to administering and supervising human services 17.3activities vested by law in the department, the commissioner shall have the authority to: 17.4    (1) require county agency participation in training and technical assistance programs 17.5to promote compliance with statutes, rules, federal laws, regulations, and policies 17.6governing human services; 17.7    (2) monitor, on an ongoing basis, the performance of county agencies in the 17.8operation and administration of human services, enforce compliance with statutes, rules, 17.9federal laws, regulations, and policies governing welfare services and promote excellence 17.10of administration and program operation; 17.11    (3) develop a quality control program or other monitoring program to review county 17.12performance and accuracy of benefit determinations; 17.13    (4) require county agencies to make an adjustment to the public assistance benefits 17.14issued to any individual consistent with federal law and regulation and state law and rule 17.15and to issue or recover benefits as appropriate; 17.16    (5) delay or deny payment of all or part of the state and federal share of benefits and 17.17administrative reimbursement according to the procedures set forth in section 256.017; 17.18    (6) make contracts with and grants to public and private agencies and organizations, 17.19both profit and nonprofit, and individuals, using appropriated funds; and 17.20    (7) enter into contractual agreements with federally recognized Indian tribes with 17.21a reservation in Minnesota to the extent necessary for the tribe to operate a federally 17.22approved family assistance program or any other program under the supervision of the 17.23commissioner. The commissioner shall consult with the affected county or counties in 17.24the contractual agreement negotiations, if the county or counties wish to be included, 17.25in order to avoid the duplication of county and tribal assistance program services. The 17.26commissioner may establish necessary accounts for the purposes of receiving and 17.27disbursing funds as necessary for the operation of the programs. 17.28    (b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 17.29regulation, and policy necessary to county agency administration of the programs. 17.30    (c) Administer and supervise all child welfare activities; promote the enforcement of 17.31laws protecting disabled, dependent, neglected and delinquent children, and children born 17.32to mothers who were not married to the children's fathers at the times of the conception 17.33nor at the births of the children; license and supervise child-caring and child-placing 17.34agencies and institutions; supervise the care of children in boarding and foster homes or 17.35in private institutions; and generally perform all functions relating to the field of child 17.36welfare now vested in the State Board of Control. 18.1    (d) Administer and supervise all noninstitutional service to disabled persons, 18.2including those who are visually impaired, hearing impaired, or physically impaired 18.3or otherwise disabled. The commissioner may provide and contract for the care and 18.4treatment of qualified indigent children in facilities other than those located and available 18.5at state hospitals when it is not feasible to provide the service in state hospitals. 18.6    (e) Assist and actively cooperate with other departments, agencies and institutions, 18.7local, state, and federal, by performing services in conformity with the purposes of Laws 18.81939, chapter 431. 18.9    (f) Act as the agent of and cooperate with the federal government in matters of 18.10mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 18.11431, including the administration of any federal funds granted to the state to aid in the 18.12performance of any functions of the commissioner as specified in Laws 1939, chapter 431, 18.13and including the promulgation of rules making uniformly available medical care benefits 18.14to all recipients of public assistance, at such times as the federal government increases its 18.15participation in assistance expenditures for medical care to recipients of public assistance, 18.16the cost thereof to be borne in the same proportion as are grants of aid to said recipients. 18.17    (g) Establish and maintain any administrative units reasonably necessary for the 18.18performance of administrative functions common to all divisions of the department. 18.19    (h) Act as designated guardian of both the estate and the person of all the wards of 18.20the state of Minnesota, whether by operation of law or by an order of court, without any 18.21further act or proceeding whatever, except as to persons committed as developmentally 18.22disabled. For children under the guardianship of the commissioner or a tribe in Minnesota 18.23recognized by the Secretary of the Interior whose interests would be best served by 18.24adoptive placement, the commissioner may contract with a licensed child-placing agency 18.25or a Minnesota tribal social services agency to provide adoption services. A contract 18.26with a licensed child-placing agency must be designed to supplement existing county 18.27efforts and may not replace existing county programs or tribal social services, unless the 18.28replacement is agreed to by the county board and the appropriate exclusive bargaining 18.29representative, tribal governing body, or the commissioner has evidence that child 18.30placements of the county continue to be substantially below that of other counties. Funds 18.31encumbered and obligated under an agreement for a specific child shall remain available 18.32until the terms of the agreement are fulfilled or the agreement is terminated. 18.33    (i) Act as coordinating referral and informational center on requests for service for 18.34newly arrived immigrants coming to Minnesota. 18.35    (j) The specific enumeration of powers and duties as hereinabove set forth shall in no 18.36way be construed to be a limitation upon the general transfer of powers herein contained. 19.1    (k) Establish county, regional, or statewide schedules of maximum fees and charges 19.2which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 19.3nursing home care and medicine and medical supplies under all programs of medical 19.4care provided by the state and for congregate living care under the income maintenance 19.5programs. 19.6    (l) Have the authority to conduct and administer experimental projects to test methods 19.7and procedures of administering assistance and services to recipients or potential recipients 19.8of public welfare. To carry out such experimental projects, it is further provided that the 19.9commissioner of human services is authorized to waive the enforcement of existing specific 19.10statutory program requirements, rules, and standards in one or more counties. The order 19.11establishing the waiver shall provide alternative methods and procedures of administration, 19.12shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and 19.13in no event shall the duration of a project exceed four years. It is further provided that no 19.14order establishing an experimental project as authorized by the provisions of this section 19.15shall become effective until the following conditions have been met: 19.16    (1) the secretary of health and human services of the United States has agreed, for 19.17the same project, to waive state plan requirements relative to statewide uniformity; and 19.18    (2) a comprehensive plan, including estimated project costs, shall be approved by 19.19the Legislative Advisory Commission and filed with the commissioner of administration. 19.20    (m) According to federal requirements, establish procedures to be followed by 19.21local welfare boards in creating citizen advisory committees, including procedures for 19.22selection of committee members. 19.23    (n) Allocate federal fiscal disallowances or sanctions which are based on quality 19.24control error rates for the aid to families with dependent children program formerly 19.25codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the 19.26following manner: 19.27    (1) one-half of the total amount of the disallowance shall be borne by the county 19.28boards responsible for administering the programs. For the medical assistance and the 19.29AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be 19.30shared by each county board in the same proportion as that county's expenditures for the 19.31sanctioned program are to the total of all counties' expenditures for the AFDC program 19.32formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the 19.33food stamp program, sanctions shall be shared by each county board, with 50 percent of 19.34the sanction being distributed to each county in the same proportion as that county's 19.35administrative costs for food stamps are to the total of all food stamp administrative costs 19.36for all counties, and 50 percent of the sanctions being distributed to each county in the 20.1same proportion as that county's value of food stamp benefits issued are to the total of 20.2all benefits issued for all counties. Each county shall pay its share of the disallowance 20.3to the state of Minnesota. When a county fails to pay the amount due hereunder, the 20.4commissioner may deduct the amount from reimbursement otherwise due the county, or 20.5the attorney general, upon the request of the commissioner, may institute civil action 20.6to recover the amount due; and 20.7    (2) notwithstanding the provisions of clause (1), if the disallowance results from 20.8knowing noncompliance by one or more counties with a specific program instruction, and 20.9that knowing noncompliance is a matter of official county board record, the commissioner 20.10may require payment or recover from the county or counties, in the manner prescribed in 20.11clause (1), an amount equal to the portion of the total disallowance which resulted from the 20.12noncompliance, and may distribute the balance of the disallowance according to clause (1). 20.13    (o) Develop and implement special projects that maximize reimbursements and 20.14result in the recovery of money to the state. For the purpose of recovering state money, 20.15the commissioner may enter into contracts with third parties. Any recoveries that result 20.16from projects or contracts entered into under this paragraph shall be deposited in the 20.17state treasury and credited to a special account until the balance in the account reaches 20.18$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 20.19transferred and credited to the general fund. All money in the account is appropriated to 20.20the commissioner for the purposes of this paragraph. 20.21    (p) Have the authority to make direct payments to facilities providing shelter 20.22to women and their children according to section 256D.05, subdivision 3. Upon 20.23the written request of a shelter facility that has been denied payments under section 20.24256D.05, subdivision 3 , the commissioner shall review all relevant evidence and make 20.25a determination within 30 days of the request for review regarding issuance of direct 20.26payments to the shelter facility. Failure to act within 30 days shall be considered a 20.27determination not to issue direct payments. 20.28    (q) Have the authority to establish and enforce the following county reporting 20.29requirements: 20.30    (1) the commissioner shall establish fiscal and statistical reporting requirements 20.31necessary to account for the expenditure of funds allocated to counties for human 20.32services programs. When establishing financial and statistical reporting requirements, the 20.33commissioner shall evaluate all reports, in consultation with the counties, to determine if 20.34the reports can be simplified or the number of reports can be reduced; 20.35    (2) the county board shall submit monthly or quarterly reports to the department 20.36as required by the commissioner. Monthly reports are due no later than 15 working days 21.1after the end of the month. Quarterly reports are due no later than 30 calendar days after 21.2the end of the quarter, unless the commissioner determines that the deadline must be 21.3shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines 21.4or risking a loss of federal funding. Only reports that are complete, legible, and in the 21.5required format shall be accepted by the commissioner; 21.6    (3) if the required reports are not received by the deadlines established in clause (2), 21.7the commissioner may delay payments and withhold funds from the county board until 21.8the next reporting period. When the report is needed to account for the use of federal 21.9funds and the late report results in a reduction in federal funding, the commissioner shall 21.10withhold from the county boards with late reports an amount equal to the reduction in 21.11federal funding until full federal funding is received; 21.12    (4) a county board that submits reports that are late, illegible, incomplete, or not 21.13in the required format for two out of three consecutive reporting periods is considered 21.14noncompliant. When a county board is found to be noncompliant, the commissioner 21.15shall notify the county board of the reason the county board is considered noncompliant 21.16and request that the county board develop a corrective action plan stating how the 21.17county board plans to correct the problem. The corrective action plan must be submitted 21.18to the commissioner within 45 days after the date the county board received notice 21.19of noncompliance; 21.20    (5) the final deadline for fiscal reports or amendments to fiscal reports is one year 21.21after the date the report was originally due. If the commissioner does not receive a report 21.22by the final deadline, the county board forfeits the funding associated with the report for 21.23that reporting period and the county board must repay any funds associated with the 21.24report received for that reporting period; 21.25    (6) the commissioner may not delay payments, withhold funds, or require repayment 21.26under clause (3) or (5) if the county demonstrates that the commissioner failed to 21.27provide appropriate forms, guidelines, and technical assistance to enable the county to 21.28comply with the requirements. If the county board disagrees with an action taken by the 21.29commissioner under clause (3) or (5), the county board may appeal the action according 21.30to sections 14.57 to 14.69; and 21.31    (7) counties subject to withholding of funds under clause (3) or forfeiture or 21.32repayment of funds under clause (5) shall not reduce or withhold benefits or services to 21.33clients to cover costs incurred due to actions taken by the commissioner under clause 21.34(3) or (5). 22.1    (r) Allocate federal fiscal disallowances or sanctions for audit exceptions when 22.2federal fiscal disallowances or sanctions are based on a statewide random sample in direct 22.3proportion to each county's claim for that period. 22.4    (s) Be responsible for ensuring the detection, prevention, investigation, and 22.5resolution of fraudulent activities or behavior by applicants, recipients, and other 22.6participants in the human services programs administered by the department. 22.7    (t) Require county agencies to identify overpayments, establish claims, and utilize 22.8all available and cost-beneficial methodologies to collect and recover these overpayments 22.9in the human services programs administered by the department. 22.10    (u) Have the authority to administer a drug rebate program for drugs purchased 22.11pursuant to the prescription drug program established under section after the 22.12beneficiary's satisfaction of any deductible established in the program. The commissioner 22.13shall require a rebate agreement from all manufacturers of covered drugs as defined in 22.14section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on 22.15or after July 1, 2002, must include rebates for individuals covered under the prescription 22.16drug program who are under 65 years of age. For each drug, the amount of the rebate shall 22.17be equal to the rebate as defined for purposes of the federal rebate program in United 22.18States Code, title 42, section 1396r-8. The manufacturers must provide full payment 22.19within 30 days of receipt of the state invoice for the rebate within the terms and conditions 22.20used for the federal rebate program established pursuant to section 1927 of title XIX of 22.21the Social Security Act. The manufacturers must provide the commissioner with any 22.22information necessary to verify the rebate determined per drug. The rebate program shall 22.23utilize the terms and conditions used for the federal rebate program established pursuant to 22.24section 1927 of title XIX of the Social Security Act. 22.25    (v) new text begin (u) new text end Have the authority to administer the federal drug rebate program for drugs 22.26purchased under the medical assistance program as allowed by section 1927 of title XIX 22.27of the Social Security Act and according to the terms and conditions of section 1927. 22.28Rebates shall be collected for all drugs that have been dispensed or administered in an 22.29outpatient setting and that are from manufacturers who have signed a rebate agreement 22.30with the United States Department of Health and Human Services. 22.31    (w) new text begin (v) new text end Have the authority to administer a supplemental drug rebate program for 22.32drugs purchased under the medical assistance program. The commissioner may enter into 22.33supplemental rebate contracts with pharmaceutical manufacturers and may require prior 22.34authorization for drugs that are from manufacturers that have not signed a supplemental 22.35rebate contract. Prior authorization of drugs shall be subject to the provisions of section 22.36256B.0625, subdivision 13 . 23.1    (x) new text begin (w) new text end Operate the department's communication systems account established 23.2in Laws 1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to 23.3manage shared communication costs necessary for the operation of the programs the 23.4commissioner supervises. A communications account may also be established for each 23.5regional treatment center which operates communications systems. Each account must be 23.6used to manage shared communication costs necessary for the operations of the programs 23.7the commissioner supervises. The commissioner may distribute the costs of operating and 23.8maintaining communication systems to participants in a manner that reflects actual usage. 23.9Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and 23.10other costs as determined by the commissioner. Nonprofit organizations and state, county, 23.11and local government agencies involved in the operation of programs the commissioner 23.12supervises may participate in the use of the department's communications technology and 23.13share in the cost of operation. The commissioner may accept on behalf of the state any 23.14gift, bequest, devise or personal property of any kind, or money tendered to the state for 23.15any lawful purpose pertaining to the communication activities of the department. Any 23.16money received for this purpose must be deposited in the department's communication 23.17systems accounts. Money collected by the commissioner for the use of communication 23.18systems must be deposited in the state communication systems account and is appropriated 23.19to the commissioner for purposes of this section. 23.20    (y) new text begin (x) new text end Receive any federal matching money that is made available through the 23.21medical assistance program for the consumer satisfaction survey. Any federal money 23.22received for the survey is appropriated to the commissioner for this purpose. The 23.23commissioner may expend the federal money received for the consumer satisfaction 23.24survey in either year of the biennium. 23.25    (z) new text begin (y) new text end Designate community information and referral call centers and incorporate 23.26cost reimbursement claims from the designated community information and referral 23.27call centers into the federal cost reimbursement claiming processes of the department 23.28according to federal law, rule, and regulations. Existing information and referral centers 23.29provided by Greater Twin Cities United Way or existing call centers for which Greater 23.30Twin Cities United Way has legal authority to represent, shall be included in these 23.31designations upon review by the commissioner and assurance that these services are 23.32accredited and in compliance with national standards. Any reimbursement is appropriated 23.33to the commissioner and all designated information and referral centers shall receive 23.34payments according to normal department schedules established by the commissioner 23.35upon final approval of allocation methodologies from the United States Department of 23.36Health and Human Services Division of Cost Allocation or other appropriate authorities. 24.1    (aa) new text begin (z) new text end Develop recommended standards for foster care homes that address the 24.2components of specialized therapeutic services to be provided by foster care homes with 24.3those services. 24.4    (bb) new text begin (aa) new text end Authorize the method of payment to or from the department as part of the 24.5human services programs administered by the department. This authorization includes the 24.6receipt or disbursement of funds held by the department in a fiduciary capacity as part of 24.7the human services programs administered by the department. 24.8    (cc) Have the authority to administer a drug rebate program for drugs purchased for 24.9persons eligible for general assistance medical care under section 256D.03, subdivision 3. 24.10For manufacturers that agree to participate in the general assistance medical care rebate 24.11program, the commissioner shall enter into a rebate agreement for covered drugs as 24.12defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the 24.13rebate shall be equal to the rebate as defined for purposes of the federal rebate program in 24.14United States Code, title 42, section 1396r-8. The manufacturers must provide payment 24.15within the terms and conditions used for the federal rebate program established under 24.16section 1927 of title XIX of the Social Security Act. The rebate program shall utilize 24.17the terms and conditions used for the federal rebate program established under section 24.181927 of title XIX of the Social Security Act. 24.19    Effective January 1, 2006, drug coverage under general assistance medical care shall 24.20be limited to those prescription drugs that: 24.21    (1) are covered under the medical assistance program as described in section 24.22256B.0625, subdivisions 13 and 13d; and 24.23    (2) are provided by manufacturers that have fully executed general assistance 24.24medical care rebate agreements with the commissioner and comply with such agreements. 24.25Prescription drug coverage under general assistance medical care shall conform to 24.26coverage under the medical assistance program according to section 256B.0625, 24.27subdivisions 13 to 13g . 24.28    The rebate revenues collected under the drug rebate program are deposited in the 24.29general fund. 24.30    Sec. 5. Minnesota Statutes 2012, section 256B.055, subdivision 12, is amended to read: 24.31    Subd. 12. Disabled children. (a) A person is eligible for medical assistance if the 24.32person is under age 19 and qualifies as a disabled individual under United States Code, 24.33title 42, section 1382c(a), and would be eligible for medical assistance under the state 24.34plan if residing in a medical institution, and the child requires a level of care provided in 24.35a hospital, nursing facility, or intermediate care facility for persons with developmental 25.1disabilities, for whom home care is appropriate, provided that the cost to medical 25.2assistance under this section is not more than the amount that medical assistance would pay 25.3for if the child resides in an institution. After the child is determined to be eligible under 25.4this section, the commissioner shall review the child's disability under United States Code, 25.5title 42, section 1382c(a) and level of care defined under this section no more often than 25.6annually and may elect, based on the recommendation of health care professionals under 25.7contract with the state medical review team, to extend the review of disability and level of 25.8care up to a maximum of four years. The commissioner's decision on the frequency of 25.9continuing review of disability and level of care is not subject to administrative appeal 25.10under section 256.045. The county agency shall send a notice of disability review to the 25.11enrollee six months prior to the date the recertification of disability is due. Nothing in this 25.12subdivision shall be construed as affecting other redeterminations of medical assistance 25.13eligibility under this chapter and annual cost-effective reviews under this section. 25.14    (b) For purposes of this subdivision, "hospital" means an institution as defined 25.15in section 144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 25.164640.3600, and licensed pursuant to sections 144.50 to 144.58. For purposes of this 25.17subdivision, a child requires a level of care provided in a hospital if the child is determined 25.18by the commissioner to need an extensive array of health services, including mental health 25.19services, for an undetermined period of time, whose health condition requires frequent 25.20monitoring and treatment by a health care professional or by a person supervised by a 25.21health care professional, who would reside in a hospital or require frequent hospitalization 25.22if these services were not provided, and the daily care needs are more complex than 25.23a nursing facility level of care. 25.24    A child with serious emotional disturbance requires a level of care provided in a 25.25hospital if the commissioner determines that the individual requires 24-hour supervision 25.26because the person exhibits recurrent or frequent suicidal or homicidal ideation or 25.27behavior, recurrent or frequent psychosomatic disorders or somatopsychic disorders that 25.28may become life threatening, recurrent or frequent severe socially unacceptable behavior 25.29associated with psychiatric disorder, ongoing and chronic psychosis or severe, ongoing 25.30and chronic developmental problems requiring continuous skilled observation, or severe 25.31disabling symptoms for which office-centered outpatient treatment is not adequate, and 25.32which overall severely impact the individual's ability to function. 25.33    (c) For purposes of this subdivision, "nursing facility" means a facility which 25.34provides nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to 25.35sections 144A.02 to 144A.10, which is appropriate if a person is in active restorative 25.36treatment; is in need of special treatments provided or supervised by a licensed nurse; or 26.1has unpredictable episodes of active disease processes requiring immediate judgment 26.2by a licensed nurse. For purposes of this subdivision, a child requires the level of care 26.3provided in a nursing facility if the child is determined by the commissioner to meet 26.4the requirements of the preadmission screening assessment document under section 26.5256B.0911 , adjusted to address age-appropriate standards for children age 18 and under. 26.6    (d) For purposes of this subdivision, "intermediate care facility for persons with 26.7developmental disabilities" or "ICF/MR" means a program licensed to provide services to 26.8persons with developmental disabilities under section 252.28, and chapter 245A, and a 26.9physical plant licensed as a supervised living facility under chapter 144, which together 26.10are certified by the Minnesota Department of Health as meeting the standards in Code of 26.11Federal Regulations, title 42, part 483, for an intermediate care facility which provides 26.12services for persons with developmental disabilities who require 24-hour supervision 26.13and active treatment for medical, behavioral, or habilitation needs. For purposes of this 26.14subdivision, a child requires a level of care provided in an ICF/MR if the commissioner 26.15finds that the child has a developmental disability in accordance with section 256B.092, is 26.16in need of a 24-hour plan of care and active treatment similar to persons with developmental 26.17disabilities, and there is a reasonable indication that the child will need ICF/MR services. 26.18    (e) For purposes of this subdivision, a person requires the level of care provided 26.19in a nursing facility if the person requires 24-hour monitoring or supervision and a plan 26.20of mental health treatment because of specific symptoms or functional impairments 26.21associated with a serious mental illness or disorder diagnosis, which meet severity criteria 26.22for mental health established by the commissioner and published in March 1997 as 26.23the Minnesota Mental Health Level of Care for Children and Adolescents with Severe 26.24Emotional Disorders. 26.25    (f) The determination of the level of care needed by the child shall be made by 26.26the commissioner based on information supplied to the commissioner by the parent or 26.27guardian, the child's physician or physicians, and other professionals as requested by the 26.28commissioner. The commissioner shall establish a screening team to conduct the level of 26.29care determinations according to this subdivision. 26.30    (g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner 26.31must assess the case to determine whether: 26.32    (1) the child qualifies as a disabled individual under United States Code, title 42, 26.33section 1382c(a), and would be eligible for medical assistance if residing in a medical 26.34institution; and 27.1    (2) the cost of medical assistance services for the child, if eligible under this 27.2subdivision, would not be more than the cost to medical assistance if the child resides in a 27.3medical institution to be determined as follows: 27.4    (i) for a child who requires a level of care provided in an ICF/MR, the cost of 27.5care for the child in an institution shall be determined using the average payment rate 27.6established for the regional treatment centers that are certified as ICF's/MR; 27.7    (ii) for a child who requires a level of care provided in an inpatient hospital setting 27.8according to paragraph (b), cost-effectiveness shall be determined according to Minnesota 27.9Rules, part 9505.3520, items F and G; and 27.10    (iii) for a child who requires a level of care provided in a nursing facility according 27.11to paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota 27.12Rules, part 9505.3040, except that the nursing facility average rate shall be adjusted to 27.13reflect rates which would be paid for children under age 16. The commissioner may 27.14authorize an amount up to the amount medical assistance would pay for a child referred to 27.15the commissioner by the preadmission screening team under section 256B.0911. 27.16    (h) Children eligible for medical assistance services under section 256B.055, 27.17subdivision 12 , as of June 30, 1995, must be screened according to the criteria in this 27.18subdivision prior to January 1, 1996. Children found to be ineligible may not be removed 27.19from the program until January 1, 1996. 27.20    Sec. 6. Minnesota Statutes 2012, section 256B.056, subdivision 11, is amended to read: 27.21    Subd. 11. Treatment of annuities. (a) Any person requesting medical assistance 27.22payment of long-term care services shall provide a complete description of any interest 27.23either the person or the person's spouse has in annuities on a form designated by the 27.24department. The form shall include a statement that the state becomes a preferred 27.25remainder beneficiary of annuities or similar financial instruments by virtue of the receipt 27.26of medical assistance payment of long-term care services. The person and the person's 27.27spouse shall furnish the agency responsible for determining eligibility with complete 27.28current copies of their annuities and related documents and complete the form designating 27.29the state as the preferred remainder beneficiary for each annuity in which the person or the 27.30person's spouse has an interest. 27.31    (b) The department shall provide notice to the issuer of the department's right under 27.32this section as a preferred remainder beneficiary under the annuity or similar financial 27.33instrument for medical assistance furnished to the person or the person's spouse, and 27.34provide notice of the issuer's responsibilities as provided in paragraph (c). 28.1    (c) An issuer of an annuity or similar financial instrument who receives notice of 28.2the state's right to be named a preferred remainder beneficiary as described in paragraph 28.3(b) shall provide confirmation to the requesting agency that the state has been made a 28.4preferred remainder beneficiary. The issuer shall also notify the county agency when a 28.5change in the amount of income or principal being withdrawn from the annuity or other 28.6similar financial instrument or a change in the state's preferred remainder beneficiary 28.7designation under the annuity or other similar financial instrument occurs. The county 28.8agency shall provide the issuer with the name, address, and telephone number of a unit 28.9within the department that the issuer can contact to comply with this paragraph. 28.10    (d) "Preferred remainder beneficiary" for purposes of this subdivision and sections 28.11256B.0594 and 256B.0595 means the state is a remainder beneficiary in the first position in 28.12an amount equal to the amount of medical assistance paid on behalf of the institutionalized 28.13person, or is a remainder beneficiary in the second position if the institutionalized person 28.14designates and is survived by a remainder beneficiary who is (1) a spouse who does not 28.15reside in a medical institution, (2) a minor child, or (3) a child of any age who is blind or 28.16permanently and totally disabled as defined in the Supplemental Security Income program. 28.17Notwithstanding this paragraph, the state is the remainder beneficiary in the first position 28.18if the spouse or child disposes of the remainder for less than fair market value. 28.19    (e) For purposes of this subdivision, "institutionalized person" and "long-term care 28.20services" have the meanings given in section 256B.0595, subdivision 1, paragraph (h) new text begin (g) new text end . 28.21    (f) For purposes of this subdivision, "medical institution" means a skilled 28.22nursing facility, intermediate care facility, intermediate care facility for persons with 28.23developmental disabilities, nursing facility, or inpatient hospital. 28.24    Sec. 7. Minnesota Statutes 2012, section 256B.057, subdivision 3b, is amended to read: 28.25    Subd. 3b. Qualifying individuals. Beginning July 1, 1998, contingent upon federal 28.26funding, a person who would otherwise be eligible as a qualified Medicare beneficiary 28.27under subdivision 3, except that the person's income is in excess of the limit, is eligible as 28.28a qualifying individual according to the following criteria: new text begin . new text end 28.29(1) If the person's income is greater than 120 percent, but less than 135 percent of 28.30the official federal poverty guidelines for the applicable family size, the person is eligible 28.31for medical assistance reimbursement of Medicare Part B premiums; or new text begin . new text end 28.32(2) if the person's income is equal to or greater than 135 percent but less than 175 28.33percent of the official federal poverty guidelines for the applicable family size, the person 28.34is eligible for medical assistance reimbursement of that portion of the Medicare Part B 28.35premium attributable to an increase in Part B expenditures which resulted from the shift of 29.1home care services from Medicare Part A to Medicare Part B under Public Law 105-33, 29.2section 4732, the Balanced Budget Act of 1997. 29.3The commissioner shall limit enrollment of qualifying individuals under this 29.4subdivision according to the requirements of Public Law 105-33, section 4732. 29.5    Sec. 8. Minnesota Statutes 2012, section 256B.0595, subdivision 1, is amended to read: 29.6    Subdivision 1. Prohibited transfers. (a) For transfers of assets made on or before 29.7August 10, 1993, if an institutionalized person or the institutionalized person's spouse has 29.8given away, sold, or disposed of, for less than fair market value, any asset or interest 29.9therein, except assets other than the homestead that are excluded under the supplemental 29.10security program, within 30 months before or any time after the date of institutionalization 29.11if the person has been determined eligible for medical assistance, or within 30 months 29.12before or any time after the date of the first approved application for medical assistance 29.13if the person has not yet been determined eligible for medical assistance, the person is 29.14ineligible for long-term care services for the period of time determined under subdivision 2. 29.15    (b) new text begin (a) new text end Effective for transfers made after August 10, 1993, an institutionalized 29.16person, an institutionalized person's spouse, or any person, court, or administrative body 29.17with legal authority to act in place of, on behalf of, at the direction of, or upon the request 29.18of the institutionalized person or institutionalized person's spouse, may not give away, 29.19sell, or dispose of, for less than fair market value, any asset or interest therein, except 29.20assets other than the homestead that are excluded under the Supplemental Security Income 29.21program, for the purpose of establishing or maintaining medical assistance eligibility. This 29.22applies to all transfers, including those made by a community spouse after the month in 29.23which the institutionalized spouse is determined eligible for medical assistance. For 29.24purposes of determining eligibility for long-term care services, any transfer of such 29.25assets within 36 months before or any time after an institutionalized person requests 29.26medical assistance payment of long-term care services, or 36 months before or any time 29.27after a medical assistance recipient becomes an institutionalized person, for less than 29.28fair market value may be considered. Any such transfer is presumed to have been made 29.29for the purpose of establishing or maintaining medical assistance eligibility and the 29.30institutionalized person is ineligible for long-term care services for the period of time 29.31determined under subdivision 2, unless the institutionalized person furnishes convincing 29.32evidence to establish that the transaction was exclusively for another purpose, or unless 29.33the transfer is permitted under subdivision 3 or 4. In the case of payments from a trust or 29.34portions of a trust that are considered transfers of assets under federal law, or in the case of 29.35any other disposal of assets made on or after February 8, 2006, any transfers made within 30.160 months before or any time after an institutionalized person requests medical assistance 30.2payment of long-term care services and within 60 months before or any time after a 30.3medical assistance recipient becomes an institutionalized person, may be considered. 30.4    (c) new text begin (b) new text end This section applies to transfers, for less than fair market value, of income 30.5or assets, including assets that are considered income in the month received, such as 30.6inheritances, court settlements, and retroactive benefit payments or income to which the 30.7institutionalized person or the institutionalized person's spouse is entitled but does not 30.8receive due to action by the institutionalized person, the institutionalized person's spouse, 30.9or any person, court, or administrative body with legal authority to act in place of, on 30.10behalf of, at the direction of, or upon the request of the institutionalized person or the 30.11institutionalized person's spouse. 30.12    (d) new text begin (c) new text end This section applies to payments for care or personal services provided by a 30.13relative, unless the compensation was stipulated in a notarized, written agreement which 30.14was in existence when the service was performed, the care or services directly benefited 30.15the person, and the payments made represented reasonable compensation for the care 30.16or services provided. A notarized written agreement is not required if payment for the 30.17services was made within 60 days after the service was provided. 30.18    (e) new text begin (d) new text end This section applies to the portion of any asset or interest that an 30.19institutionalized person, an institutionalized person's spouse, or any person, court, or 30.20administrative body with legal authority to act in place of, on behalf of, at the direction of, 30.21or upon the request of the institutionalized person or the institutionalized person's spouse, 30.22transfers to any annuity that exceeds the value of the benefit likely to be returned to the 30.23institutionalized person or institutionalized person's spouse while alive, based on estimated 30.24life expectancy as determined according to the current actuarial tables published by the 30.25Office of the Chief Actuary of the Social Security Administration. The commissioner may 30.26adopt rules reducing life expectancies based on the need for long-term care. This section 30.27applies to an annuity purchased on or after March 1, 2002, that: 30.28    (1) is not purchased from an insurance company or financial institution that is 30.29subject to licensing or regulation by the Minnesota Department of Commerce or a similar 30.30regulatory agency of another state; 30.31    (2) does not pay out principal and interest in equal monthly installments; or 30.32    (3) does not begin payment at the earliest possible date after annuitization. 30.33    (f) new text begin (e) new text end Effective for transactions, including the purchase of an annuity, occurring 30.34on or after February 8, 2006, by or on behalf of an institutionalized person who has 30.35applied for or is receiving long-term care services or the institutionalized person's spouse 30.36shall be treated as the disposal of an asset for less than fair market value unless the 31.1department is named a preferred remainder beneficiary as described in section 256B.056, 31.2subdivision 11 . Any subsequent change to the designation of the department as a preferred 31.3remainder beneficiary shall result in the annuity being treated as a disposal of assets for 31.4less than fair market value. The amount of such transfer shall be the maximum amount 31.5the institutionalized person or the institutionalized person's spouse could receive from 31.6the annuity or similar financial instrument. Any change in the amount of the income or 31.7principal being withdrawn from the annuity or other similar financial instrument at the 31.8time of the most recent disclosure shall be deemed to be a transfer of assets for less than 31.9fair market value unless the institutionalized person or the institutionalized person's spouse 31.10demonstrates that the transaction was for fair market value. In the event a distribution 31.11of income or principal has been improperly distributed or disbursed from an annuity or 31.12other retirement planning instrument of an institutionalized person or the institutionalized 31.13person's spouse, a cause of action exists against the individual receiving the improper 31.14distribution for the cost of medical assistance services provided or the amount of the 31.15improper distribution, whichever is less. 31.16    (g) new text begin (f) new text end Effective for transactions, including the purchase of an annuity, occurring on 31.17or after February 8, 2006, by or on behalf of an institutionalized person applying for or 31.18receiving long-term care services shall be treated as a disposal of assets for less than fair 31.19market value unless it is: 31.20    (i) an annuity described in subsection (b) or (q) of section 408 of the Internal 31.21Revenue Code of 1986; or 31.22    (ii) purchased with proceeds from: 31.23    (A) an account or trust described in subsection (a), (c), or (p) of section 408 of the 31.24Internal Revenue Code; 31.25    (B) a simplified employee pension within the meaning of section 408(k) of the 31.26Internal Revenue Code; or 31.27    (C) a Roth IRA described in section 408A of the Internal Revenue Code; or 31.28    (iii) an annuity that is irrevocable and nonassignable; is actuarially sound as 31.29determined in accordance with actuarial publications of the Office of the Chief Actuary of 31.30the Social Security Administration; and provides for payments in equal amounts during 31.31the term of the annuity, with no deferral and no balloon payments made. 31.32    (h) new text begin (g) new text end For purposes of this section, long-term care services include services in a 31.33nursing facility, services that are eligible for payment according to section 256B.0625, 31.34subdivision 2 , because they are provided in a swing bed, intermediate care facility 31.35for persons with developmental disabilities, and home and community-based services 31.36provided pursuant to sections 256B.0915, 256B.092, and 256B.49. For purposes of this 32.1subdivision and subdivisions 2, 3, and 4, "institutionalized person" includes a person who 32.2is an inpatient in a nursing facility or in a swing bed, or intermediate care facility for 32.3persons with developmental disabilities or who is receiving home and community-based 32.4services under sections 256B.0915, 256B.092, and 256B.49. 32.5    (i) new text begin (h) new text end This section applies to funds used to purchase a promissory note, loan, or 32.6mortgage unless the note, loan, or mortgage: 32.7    (1) has a repayment term that is actuarially sound; 32.8    (2) provides for payments to be made in equal amounts during the term of the loan, 32.9with no deferral and no balloon payments made; and 32.10    (3) prohibits the cancellation of the balance upon the death of the lender. 32.11    In the case of a promissory note, loan, or mortgage that does not meet an exception 32.12in clauses (1) to (3), the value of such note, loan, or mortgage shall be the outstanding 32.13balance due as of the date of the institutionalized person's request for medical assistance 32.14payment of long-term care services. 32.15    (j) new text begin (i) new text end This section applies to the purchase of a life estate interest in another person's 32.16home unless the purchaser resides in the home for a period of at least one year after the 32.17date of purchase. 32.18(k) new text begin (j) new text end This section applies to transfers into a pooled trust that qualifies under United 32.19States Code, title 42, section 1396p(d)(4)(C), by: 32.20(1) a person age 65 or older or the person's spouse; or 32.21(2) any person, court, or administrative body with legal authority to act in place 32.22of, on behalf of, at the direction of, or upon the request of a person age 65 or older or 32.23the person's spouse. 32.24    Sec. 9. Minnesota Statutes 2012, section 256B.0595, subdivision 2, is amended to read: 32.25    Subd. 2. Period of ineligibility for long-term care services. (a) For any 32.26uncompensated transfer occurring on or before August 10, 1993, the number of months 32.27of ineligibility for long-term care services shall be the lesser of 30 months, or the 32.28uncompensated transfer amount divided by the average medical assistance rate for nursing 32.29facility services in the state in effect on the date of application. The amount used to 32.30calculate the average medical assistance payment rate shall be adjusted each July 1 to 32.31reflect payment rates for the previous calendar year. The period of ineligibility begins with 32.32the month in which the assets were transferred. If the transfer was not reported to the local 32.33agency at the time of application, and the applicant received long-term care services during 32.34what would have been the period of ineligibility if the transfer had been reported, a cause of 32.35action exists against the transferee for the cost of long-term care services provided during 33.1the period of ineligibility, or for the uncompensated amount of the transfer, whichever is 33.2less. The uncompensated transfer amount is the fair market value of the asset at the time it 33.3was given away, sold, or disposed of, less the amount of compensation received. 33.4    (b) new text begin (a) new text end For uncompensated transfers made after August 10, 1993, the number of 33.5months of ineligibility for long-term care services shall be the total uncompensated value 33.6of the resources transferred divided by the average medical assistance rate for nursing 33.7facility services in the state in effect on the date of application. The amount used to 33.8calculate the average medical assistance payment rate shall be adjusted each July 1 to 33.9reflect payment rates for the previous calendar year. The period of ineligibility begins with 33.10the first day of the month after the month in which the assets were transferred except that 33.11if one or more uncompensated transfers are made during a period of ineligibility, the 33.12total assets transferred during the ineligibility period shall be combined and a penalty 33.13period calculated to begin on the first day of the month after the month in which the first 33.14uncompensated transfer was made. If the transfer was reported to the local agency after 33.15the date that advance notice of a period of ineligibility that affects the next month could 33.16be provided to the recipient and the recipient received medical assistance services or the 33.17transfer was not reported to the local agency, and the applicant or recipient received 33.18medical assistance services during what would have been the period of ineligibility if 33.19the transfer had been reported, a cause of action exists against the transferee for that 33.20portion of long-term care services provided during the period of ineligibility, or for the 33.21uncompensated amount of the transfer, whichever is less. The uncompensated transfer 33.22amount is the fair market value of the asset at the time it was given away, sold, or disposed 33.23of, less the amount of compensation received. Effective for transfers made on or after 33.24March 1, 1996, involving persons who apply for medical assistance on or after April 13, 33.251996, no cause of action exists for a transfer unless: 33.26    (1) the transferee knew or should have known that the transfer was being made by a 33.27person who was a resident of a long-term care facility or was receiving that level of care in 33.28the community at the time of the transfer; 33.29    (2) the transferee knew or should have known that the transfer was being made to 33.30assist the person to qualify for or retain medical assistance eligibility; or 33.31    (3) the transferee actively solicited the transfer with intent to assist the person to 33.32qualify for or retain eligibility for medical assistance. 33.33    (c) new text begin (b) new text end For uncompensated transfers made on or after February 8, 2006, the period 33.34of ineligibility: 33.35    (1) for uncompensated transfers by or on behalf of individuals receiving medical 33.36assistance payment of long-term care services, begins the first day of the month following 34.1advance notice of the period of ineligibility, but no later than the first day of the month that 34.2follows three full calendar months from the date of the report or discovery of the transfer; or 34.3    (2) for uncompensated transfers by individuals requesting medical assistance 34.4payment of long-term care services, begins the date on which the individual is eligible 34.5for medical assistance under the Medicaid state plan and would otherwise be receiving 34.6long-term care services based on an approved application for such care but for the period 34.7of ineligibility resulting from the uncompensated transfer; and 34.8    (3) cannot begin during any other period of ineligibility. 34.9    (d) new text begin (c) new text end If a calculation of a period of ineligibility results in a partial month, payments 34.10for long-term care services shall be reduced in an amount equal to the fraction. 34.11    (e) new text begin (d) new text end In the case of multiple fractional transfers of assets in more than one month 34.12for less than fair market value on or after February 8, 2006, the period of ineligibility is 34.13calculated by treating the total, cumulative, uncompensated value of all assets transferred 34.14during all months on or after February 8, 2006, as one transfer. 34.15    (f) new text begin (e) new text end A period of ineligibility established under paragraph (c) new text begin (b) new text end may be eliminated 34.16if all of the assets transferred for less than fair market value used to calculate the period of 34.17ineligibility, or cash equal to the value of the assets at the time of the transfer, are returned. 34.18A period of ineligibility must not be adjusted if less than the full amount of the transferred 34.19assets or the full cash value of the transferred assets are returned. 34.20    Sec. 10. Minnesota Statutes 2012, section 256B.0595, subdivision 4, is amended to read: 34.21    Subd. 4. Other exceptions to transfer prohibition. (a) An institutionalized person, 34.22as defined in subdivision 1, paragraph (h) new text begin (g) new text end , who has made, or whose spouse has made 34.23a transfer prohibited by subdivision 1, is not ineligible for long-term care services if 34.24one of the following conditions applies: 34.25    (1) the assets were transferred to the individual's spouse or to another for the sole 34.26benefit of the spouse; or 34.27    (2) the institutionalized spouse, prior to being institutionalized, transferred assets 34.28to a spouse, provided that the spouse to whom the assets were transferred does not then 34.29transfer those assets to another person for less than fair market value. (At the time when 34.30one spouse is institutionalized, assets must be allocated between the spouses as provided 34.31under section 256B.059); or 34.32    (3) the assets were transferred to the individual's child who is blind or permanently 34.33and totally disabled as determined in the supplemental security income program; or 34.34    (4) a satisfactory showing is made that the individual intended to dispose of the 34.35assets either at fair market value or for other valuable consideration; or 35.1    (5) the local agency determines that denial of eligibility for long-term care 35.2services would work an undue hardship and grants a waiver of a period of ineligibility 35.3resulting from a transfer for less than fair market value based on an imminent threat to 35.4the individual's health and well-being. Imminent threat to the individual's health and 35.5well-being means that imposing a period of ineligibility would endanger the individual's 35.6health or life or cause serious deprivation of food, clothing, or shelter. Whenever an 35.7applicant or recipient is denied eligibility because of a transfer for less than fair market 35.8value, the local agency shall notify the applicant or recipient that the applicant or recipient 35.9may request a waiver of the period of ineligibility if the denial of eligibility will cause 35.10undue hardship. With the written consent of the individual or the personal representative 35.11of the individual, a long-term care facility in which an individual is residing may file an 35.12undue hardship waiver request, on behalf of the individual who is denied eligibility for 35.13long-term care services on or after July 1, 2006, due to a period of ineligibility resulting 35.14from a transfer on or after February 8, 2006. 35.15(b) Subject to paragraph (c), when evaluating a hardship waiver, the local agency 35.16shall take into account whether the individual was the victim of financial exploitation, 35.17whether the individual has made reasonable efforts to recover the transferred property or 35.18resource, whether the individual has taken any action to prevent the designation of the 35.19department as a remainder beneficiary on an annuity as described in section 256B.056, 35.20subdivision 11, and other factors relevant to a determination of hardship. 35.21(c) In the case of an imminent threat to the individual's health and well-being, the 35.22local agency shall approve a hardship waiver of the portion of an individual's period of 35.23ineligibility resulting from a transfer of assets for less than fair market value by or to 35.24a person: 35.25(1) convicted of financial exploitation, fraud, or theft upon the individual for the 35.26transfer of assets; or 35.27(2) against whom a report of financial exploitation upon the individual has been 35.28substantiated. For purposes of this paragraph, "financial exploitation" and "substantiated" 35.29have the meanings given in section 626.5572. 35.30(d) The local agency shall make a determination within 30 days of the receipt of all 35.31necessary information needed to make such a determination. If the local agency does not 35.32approve a hardship waiver, the local agency shall issue a written notice to the individual 35.33stating the reasons for the denial and the process for appealing the local agency's decision. 35.34When a waiver is granted, a cause of action exists against the person to whom the assets 35.35were transferred for that portion of long-term care services provided within: 35.36    (1) 30 months of a transfer made on or before August 10, 1993; 36.1    (2) 60 months of a transfer if the assets were transferred after August 30, 1993, to a 36.2trust or portion of a trust that is considered a transfer of assets under federal law; 36.3    (3) 36 months of a transfer if transferred in any other manner after August 10, 1993, 36.4but prior to February 8, 2006; or 36.5    (4) 60 months of any transfer made on or after February 8, 2006, 36.6or the amount of the uncompensated transfer, whichever is less, together with the costs 36.7incurred due to the action; or 36.8    (5) for transfers occurring after August 10, 1993, the assets were transferred by the 36.9person or person's spouse: (i) into a trust established for the sole benefit of a son or daughter 36.10of any age who is blind or disabled as defined by the Supplemental Security Income 36.11program; or (ii) into a trust established for the sole benefit of an individual who is under 36.1265 years of age who is disabled as defined by the Supplemental Security Income program. 36.13    "For the sole benefit of" has the meaning found in section 256B.059, subdivision 1. 36.14    Sec. 11. Minnesota Statutes 2012, section 256B.0595, subdivision 9, is amended to read: 36.15    Subd. 9. Filing cause of action; limitation. (a) The county of financial responsibility 36.16under chapter 256G may bring a cause of action under any or all of the following: 36.17    (1) subdivision 1, paragraph (f) new text begin (e) new text end ; 36.18    (2) subdivision 2, paragraphs new text begin paragraph new text end (a) and (b); 36.19    (3) subdivision 3, paragraph (b); 36.20    (4) subdivision 4, paragraph (d); and 36.21    (5) subdivision 8 36.22on behalf of the claimant who must be the commissioner. 36.23    (b) Notwithstanding any other law to the contrary, a cause of action under subdivision 36.242, paragraph (a) or (b), or 8, must be commenced within six years of the date the local 36.25agency determines that a transfer was made for less than fair market value. Notwithstanding 36.26any other law to the contrary, a cause of action under subdivision 3, paragraph (b), or 4, 36.27clause (5), must be commenced within six years of the date of approval of a waiver of the 36.28penalty period for a transfer for less than fair market value based on undue hardship. 36.29    Sec. 12. Minnesota Statutes 2012, section 256D.02, subdivision 12a, is amended to read: 36.30    Subd. 12a. Resident. (a) For purposes of eligibility for general assistance and 36.31general assistance medical care, a person must be a resident of this state. 36.32(b) A "resident" is a person living in the state for at least 30 days with the intention of 36.33making the person's home here and not for any temporary purpose. Time spent in a shelter 36.34for battered women shall count toward satisfying the 30-day residency requirement. All 37.1applicants for these programs are required to demonstrate the requisite intent and can do 37.2so in any of the following ways: 37.3(1) by showing that the applicant maintains a residence at a verified address, other 37.4than a place of public accommodation. An applicant may verify a residence address by 37.5presenting a valid state driver's license, a state identification card, a voter registration card, 37.6a rent receipt, a statement by the landlord, apartment manager, or homeowner verifying 37.7that the individual is residing at the address, or other form of verification approved by 37.8the commissioner; or 37.9(2) by verifying residence according to Minnesota Rules, part 9500.1219, subpart 37.103, item C. 37.11(c) For general assistance medical care, a county agency shall waive the 30-day 37.12residency requirement in cases of medical emergencies. For general assistance, a county 37.13shall waive the 30-day residency requirement where unusual hardship would result from 37.14denial of general assistance. For purposes of this subdivision, "unusual hardship" means 37.15the applicant is without shelter or is without available resources for food. 37.16The county agency must report to the commissioner within 30 days on any waiver 37.17granted under this section. The county shall not deny an application solely because the 37.18applicant does not meet at least one of the criteria in this subdivision, but shall continue to 37.19process the application and leave the application pending until the residency requirement 37.20is met or until eligibility or ineligibility is established. 37.21(d) For purposes of paragraph (c), the following definitions apply (1) "metropolitan 37.22statistical area" is as defined by the United States Census Bureau; (2) "shelter" includes 37.23any shelter that is located within the metropolitan statistical area containing the county 37.24and for which the applicant is eligible, provided the applicant does not have to travel more 37.25than 20 miles to reach the shelter and has access to transportation to the shelter. Clause (2) 37.26does not apply to counties in the Minneapolis-St. Paul metropolitan statistical area. 37.27(e) Migrant workers as defined in section 256J.08 and, until March 31, 1998, their 37.28immediate families are exempt from the residency requirements of this section, provided 37.29the migrant worker provides verification that the migrant family worked in this state 37.30within the last 12 months and earned at least $1,000 in gross wages during the time the 37.31migrant worker worked in this state. 37.32(f) For purposes of eligibility for emergency general assistance, the 30-day residency 37.33requirement under this section shall not be waived. 37.34(g) If any provision of this subdivision is enjoined from implementation or found 37.35unconstitutional by any court of competent jurisdiction, the remaining provisions shall 37.36remain valid and shall be given full effect. 38.1    Sec. 13. Minnesota Statutes 2012, section 256J.30, subdivision 8, is amended to read: 38.2    Subd. 8. Late MFIP household report forms. (a) Paragraphs (b) to (e) apply to the 38.3reporting requirements in subdivision 7. 38.4(b) When the county agency receives an incomplete MFIP household report form, 38.5the county agency must immediately return the incomplete form and clearly state what the 38.6caregiver must do for the form to be complete. 38.7(c) The automated eligibility system must send a notice of proposed termination 38.8of assistance to the assistance unit if a complete MFIP household report form is not 38.9received by a county agency. The automated notice must be mailed to the caregiver by 38.10approximately the 16th of the month. When a caregiver submits an incomplete form on 38.11or after the date a notice of proposed termination has been sent, the termination is valid 38.12unless the caregiver submits a complete form before the end of the month. 38.13(d) An assistance unit required to submit an MFIP household report form is considered 38.14to have continued its application for assistance if a complete MFIP household report 38.15form is received within a calendar month after the month in which the form was due and 38.16assistance shall be paid for the period beginning with the first day of that calendar month. 38.17(e) A county agency must allow good cause exemptions from the reporting 38.18requirements under subdivisions new text begin subdivision new text end 5 and 6 when any of the following factors 38.19cause a caregiver to fail to provide the county agency with a completed MFIP household 38.20report form before the end of the month in which the form is due: 38.21(1) an employer delays completion of employment verification; 38.22(2) a county agency does not help a caregiver complete the MFIP household report 38.23form when the caregiver asks for help; 38.24(3) a caregiver does not receive an MFIP household report form due to mistake on 38.25the part of the department or the county agency or due to a reported change in address; 38.26(4) a caregiver is ill, or physically or mentally incapacitated; or 38.27(5) some other circumstance occurs that a caregiver could not avoid with reasonable 38.28care which prevents the caregiver from providing a completed MFIP household report 38.29form before the end of the month in which the form is due. 38.30    Sec. 14. Minnesota Statutes 2012, section 256J.30, subdivision 9, is amended to read: 38.31    Subd. 9. Changes that must be reported. A caregiver must report the changes or 38.32anticipated changes specified in clauses (1) to (16) within ten days of the date they occur, 38.33at the time of the periodic recertification of eligibility under section 256J.32, subdivision 38.346 , or within eight calendar days of a reporting period as in subdivision 5 or 6, whichever 38.35occurs first. A caregiver must report other changes at the time of the periodic recertification 39.1of eligibility under section 256J.32, subdivision 6, or at the end of a reporting period under 39.2subdivision 5 or 6, as applicable. A caregiver must make these reports in writing to the 39.3county agency. When a county agency could have reduced or terminated assistance for 39.4one or more payment months if a delay in reporting a change specified under clauses (1) 39.5to (15) had not occurred, the county agency must determine whether a timely notice 39.6under section 256J.31, subdivision 4, could have been issued on the day that the change 39.7occurred. When a timely notice could have been issued, each month's overpayment 39.8subsequent to that notice must be considered a client error overpayment under section 39.9256J.38 . Calculation of overpayments for late reporting under clause (16) is specified in 39.10section 256J.09, subdivision 9. Changes in circumstances which must be reported within 39.11ten days must also be reported on the MFIP household report form for the reporting period 39.12in which those changes occurred. Within ten days, a caregiver must report: 39.13(1) a change in initial employment; 39.14(2) a change in initial receipt of unearned income; 39.15(3) a recurring change in unearned income; 39.16(4) a nonrecurring change of unearned income that exceeds $30; 39.17(5) the receipt of a lump sum; 39.18(6) an increase in assets that may cause the assistance unit to exceed asset limits; 39.19(7) a change in the physical or mental status of an incapacitated member of the 39.20assistance unit if the physical or mental status is the basis for reducing the hourly 39.21participation requirements under section 256J.55, subdivision 1, or the type of activities 39.22included in an employment plan under section 256J.521, subdivision 2; 39.23(8) a change in employment status; 39.24(9) information affecting an exception under section 256J.24, subdivision 9; 39.25(10) the marriage or divorce of an assistance unit member; 39.26(11) the death of a parent, minor child, or financially responsible person; 39.27(12) a change in address or living quarters of the assistance unit; 39.28(13) the sale, purchase, or other transfer of property; 39.29(14) a change in school attendance of a caregiver under age 20 or an employed child; 39.30(15) filing a lawsuit, a workers' compensation claim, or a monetary claim against a 39.31third party; and 39.32(16) a change in household composition, including births, returns to and departures 39.33from the home of assistance unit members and financially responsible persons, or a change 39.34in the custody of a minor child. 39.35    Sec. 15. Minnesota Statutes 2012, section 256J.37, subdivision 3a, is amended to read: 40.1    Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the 40.2county agency shall count $50 of the value of public and assisted rental subsidies provided 40.3through the Department of Housing and Urban Development (HUD) as unearned income 40.4to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 40.5unearned income when the subsidy is less than $50. The income from this subsidy shall 40.6be budgeted according to section 256J.34. 40.7(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 40.8which includes a participant who is: 40.9(1) age 60 or older; 40.10(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 40.11certified by a qualified professional when the illness, injury, or incapacity is expected 40.12to continue for more than 30 days and severely limits the person's ability to obtain or 40.13maintain suitable employment; or 40.14(3) a caregiver whose presence in the home is required due to the illness or 40.15incapacity of another member in the assistance unit, a relative in the household, or a foster 40.16child in the household when the illness or incapacity and the need for the participant's 40.17presence in the home has been certified by a qualified professional and is expected to 40.18continue for more than 30 days. 40.19(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 40.20where the parental caregiver is an SSI recipient. 40.21(d) Prior to implementing this provision, the commissioner must identify the MFIP 40.22participants subject to this provision and provide written notice to these participants at 40.23least 30 days before the first grant reduction. The notice must inform the participant of the 40.24basis for the potential grant reduction, the exceptions to the provision, if any, and inform 40.25the participant of the steps necessary to claim an exception. A person who is found not to 40.26meet one of the exceptions to the provision must be notified and informed of the right to a 40.27fair hearing under section . The notice must also inform the participant that the 40.28participant may be eligible for a rent reduction resulting from a reduction in the MFIP 40.29grant and encourage the participant to contact the local housing authority. 40.30    Sec. 16. Minnesota Statutes 2012, section 256J.395, subdivision 1, is amended to read: 40.31    Subdivision 1. Vendor payment. (a) Effective July 1, 1997, when a county is 40.32required to provide assistance to a participant in vendor form for shelter costs and utilities 40.33under this chapter, or chapter 256, 256D, or 256K, the cost of utilities for a given family 40.34may be assumed to be: 41.1(1) the average of the actual monthly cost of utilities for that family for the prior 41.212 months at the family's current residence, if applicable; 41.3(2) the monthly plan amount, if any, set by the local utilities for that family at the 41.4family's current residence; or 41.5(3) the estimated monthly utility costs for the dwelling in which the family currently 41.6resides. 41.7(b) For purposes of this section, "utility" means any of the following: municipal 41.8water and sewer service; electric, gas, or heating fuel service; or wood, if that is the 41.9heating source. 41.10(c) In any instance where a vendor payment for rent is directed to a landlord not 41.11legally entitled to the payment, the county social services agency shall immediately 41.12institute proceedings to collect the amount of the vendored rent payment, which shall be 41.13considered a debt under section 270A.03, subdivision 5. 41.14    Sec. 17. Minnesota Statutes 2012, section 256J.575, subdivision 3, is amended to read: 41.15    Subd. 3. Eligibility. (a) The following MFIP participants are eligible for the 41.16services under this section: 41.17    (1) a participant who meets the requirements for or has been granted a hardship 41.18extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for 41.19the participant to have reached or be approaching 60 months of eligibility for this section 41.20to apply; 41.21    (2) a participant who is applying for Supplemental Security Income or Social 41.22Security disability insurance; 41.23    (3) a participant who is a noncitizen who has been in the United States for 12 or 41.24fewer months; and 41.25(4) a participant who is age 60 or older. 41.26    (b) Families must meet all other eligibility requirements for MFIP established in 41.27this chapter. Families are eligible for financial assistance to the same extent as if they 41.28were participating in MFIP. 41.29    (c) new text begin (b) new text end A participant under paragraph (a), clause (3), must be provided with English 41.30as a second language opportunities and skills training for up to 12 months. After 12 41.31months, the case manager and participant must determine whether the participant should 41.32continue with English as a second language classes or skills training, or both, and continue 41.33to receive family stabilization services. 41.34(d) new text begin (c) new text end If a county agency or employment services provider has information that 41.35an MFIP participant may meet the eligibility criteria set forth in this subdivision, the 42.1county agency or employment services provider must assist the participant in obtaining 42.2the documentation necessary to determine eligibility. 42.3    Sec. 18. Minnesota Statutes 2012, section 256J.626, subdivision 6, is amended to read: 42.4    Subd. 6. Base allocation to counties and tribes; definitions. (a) For purposes of 42.5this section, the following terms have the meanings given. 42.6    (1) "2002 historic spending base" means the commissioner's determination of 42.7the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 42.8expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 42.9related to calendar year 2002 in the base program listed in clause (6), item (v), and the 42.10amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 42.11issued to or on behalf of persons residing in the county or tribal service delivery area. 42.12    (2) "Adjusted caseload factor" means a factor weighted: 42.13    (i) 47 percent on the MFIP cases in each county at four points in time in the most 42.14recent 12-month period for which data is available multiplied by the county's caseload 42.15difficulty factor; and 42.16    (ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 42.17in time in the most recent 12-month period for which data is available multiplied by the 42.18county or tribe's caseload difficulty factor. 42.19    (3) "Caseload difficulty factor" means a factor determined by the commissioner for 42.20each county and tribe based upon the self-support index described in section 256J.751, 42.21subdivision 2 , clause (6). 42.22    (4) "Initial allocation" means the amount potentially available to each county or tribe 42.23based on the formula in paragraphs (b) through (d). 42.24    (5) "Final allocation" means the amount available to each county or tribe based on 42.25the formula in paragraphs (b) through (d), after adjustment by subdivision 7. 42.26    (6) "Base programs" means the: 42.27    (i) MFIP employment and training services under Minnesota Statutes 2002, section 42.28256J.62, subdivision 1 , in effect June 30, 2002; 42.29    (ii) bilingual employment and training services to refugees under Minnesota Statutes 42.302002, section 256J.62, subdivision 6, in effect June 30, 2002; 42.31    (iii) work literacy language programs under Minnesota Statutes 2002, section 42.32256J.62, subdivision 7 , in effect June 30, 2002; 42.33    (iv) supported work program authorized in Laws 2001, First Special Session chapter 42.349, article 17, section 2, in effect June 30, 2002; 43.1    (v) administrative aid program under section 256J.76 in effect December 31, 2002; 43.2and 43.3    (vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 43.4in effect June 30, 2002. 43.5    (b) The commissioner shall: 43.6    (1) beginning July 1, 2003, determine the initial allocation of funds available under 43.7this section according to clause (2); 43.8    (2) allocate all of the funds available for the period beginning July 1, 2003, and 43.9ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's 43.10share of the statewide 2002 historic spending base; 43.11    (3) determine for calendar year 2005 the initial allocation of funds to be made 43.12available under this section in proportion to the county or tribe's initial allocation for the 43.13period of July 1, 2003, to December 31, 2004; 43.14    (4) determine for calendar year 2006 the initial allocation of funds to be made 43.15available under this section based 90 percent on the proportion of the county or tribe's 43.16share of the statewide 2002 historic spending base and ten percent on the proportion of 43.17the county or tribe's share of the adjusted caseload factor; 43.18    (5) determine for calendar year 2007 the initial allocation of funds to be made 43.19available under this section based 70 percent on the proportion of the county or tribe's 43.20share of the statewide 2002 historic spending base and 30 percent on the proportion of the 43.21county or tribe's share of the adjusted caseload factor; and 43.22    (6) determine for calendar year 2008 and subsequent years the initial allocation of 43.23funds to be made available under this section based 50 percent on the proportion of the 43.24county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 43.25proportion of the county or tribe's share of the adjusted caseload factor. 43.26    (c) With the commencement of a new or expanded tribal TANF program or an 43.27agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 43.28the responsibilities of particular counties under this section are transferred to a tribe, 43.29the commissioner shall: 43.30    (1) in the case where all responsibilities under this section are transferred to a tribal 43.31program, determine the percentage of the county's current caseload that is transferring to a 43.32tribal program and adjust the affected county's allocation accordingly; and 43.33    (2) in the case where a portion of the responsibilities under this section are 43.34transferred to a tribal program, the commissioner shall consult with the affected county or 43.35counties to determine an appropriate adjustment to the allocation. 44.1    (d) Effective January 1, 2005, counties and tribes will have their final allocations 44.2adjusted based on the performance provisions of subdivision 7. 44.3    Sec. 19. Minnesota Statutes 2012, section 256J.626, subdivision 7, is amended to read: 44.4    Subd. 7. Performance base funds. (a) For the purpose of this section, the following 44.5terms have the meanings given. 44.6(1) "Caseload Reduction Credit" (CRC) means the measure of how much Minnesota 44.7TANF and separate state program caseload has fallen relative to federal fiscal year 2005 44.8based on caseload data from October 1 to September 30. 44.9(2) "TANF participation rate target" means a 50 percent participation rate reduced by 44.10the CRC for the previous year. 44.11(b) For calendar year 2010 and yearly thereafter, Each county and tribe will be 44.12allocated 95 percent of their initial calendar year allocation. Counties and tribes will be 44.13allocated additional funds based on performance as follows: 44.14    (1) a county or tribe that achieves the TANF participation rate target or a five 44.15percentage point improvement over the previous year's TANF participation rate under 44.16section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive months for 44.17the most recent year for which the measurements are available, will receive an additional 44.18allocation equal to 2.5 percent of its initial allocation; 44.19    (2) a county or tribe that performs within or above its range of expected performance 44.20on the annualized three-year self-support index under section 256J.751, subdivision 2, 44.21clause (6), will receive an additional allocation equal to 2.5 percent of its initial allocation; 44.22and 44.23    (3) a county or tribe that does not achieve the TANF participation rate target or 44.24a five percentage point improvement over the previous year's TANF participation rate 44.25under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive 44.26months for the most recent year for which the measurements are available, will not 44.27receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear 44.28improvement plan with the commissioner; or 44.29    (4) a county or tribe that does not perform within or above its range of expected 44.30performance on the annualized three-year self-support index under section 256J.751, 44.31subdivision 2 , clause (6), will not receive an additional allocation equal to 2.5 percent 44.32of its initial allocation until after negotiating a multiyear improvement plan with the 44.33commissioner. 45.1    (c) For calendar year 2009 and yearly thereafter, performance-based funds for a 45.2federally approved tribal TANF program in which the state and tribe have in place a contract 45.3under section 256.01, addressing consolidated funding, will be allocated as follows: 45.4    (1) a tribe that achieves the participation rate approved in its federal TANF plan 45.5using the average of 12 consecutive months for the most recent year for which the 45.6measurements are available, will receive an additional allocation equal to 2.5 percent of 45.7its initial allocation; and 45.8    (2) a tribe that performs within or above its range of expected performance on the 45.9annualized three-year self-support index under section 256J.751, subdivision 2, clause (6), 45.10will receive an additional allocation equal to 2.5 percent of its initial allocation; or 45.11    (3) a tribe that does not achieve the participation rate approved in its federal TANF 45.12plan using the average of 12 consecutive months for the most recent year for which the 45.13measurements are available, will not receive an additional allocation equal to 2.5 percent 45.14of its initial allocation until after negotiating a multiyear improvement plan with the 45.15commissioner; or 45.16    (4) a tribe that does not perform within or above its range of expected performance 45.17on the annualized three-year self-support index under section 256J.751, subdivision 45.182 , clause (6), will not receive an additional allocation equal to 2.5 percent until after 45.19negotiating a multiyear improvement plan with the commissioner. 45.20    (d) Funds remaining unallocated after the performance-based allocations in paragraph 45.21(b) are available to the commissioner for innovation projects under subdivision 5. 45.22     (1) If available funds are insufficient to meet county and tribal allocations under 45.23paragraph (b), the commissioner may make available for allocation funds that are 45.24unobligated and available from the innovation projects through the end of the current 45.25biennium. 45.26    (2) If after the application of clause (1) funds remain insufficient to meet county and 45.27tribal allocations under paragraph (b), the commissioner must proportionally reduce the 45.28allocation of each county and tribe with respect to their maximum allocation available 45.29under paragraph (b). 45.30    Sec. 20. Minnesota Statutes 2012, section 256J.72, subdivision 1, is amended to read: 45.31    Subdivision 1. Nondisplacement protection. For job assignments under jobs 45.32programs established under this chapter or chapter 256, new text begin or new text end 256D, or 256K, the county 45.33agency must provide written notification to and obtain the written concurrence of the 45.34appropriate exclusive bargaining representatives with respect to job duties covered under 46.1collective bargaining agreements and ensure that no work assignment under this chapter 46.2or chapter 256, new text begin or new text end 256D, or 256K results in: 46.3(1) termination, layoff, or reduction of the work hours of an employee for the 46.4purpose of hiring an individual under this section; 46.5(2) the hiring of an individual if any other person is on layoff, including seasonal 46.6layoff, from the same or a substantially equivalent job; 46.7(3) any infringement of the promotional opportunities of any currently employed 46.8individual; 46.9(4) the impairment of existing contract for services of collective bargaining 46.10agreements; or 46.11(5) a participant filling an established unfilled position vacancy, except for on-the-job 46.12training. 46.13The written notification must be provided to the appropriate exclusive bargaining 46.14representatives at least 14 days in advance of placing recipients in temporary public 46.15service employment. The notice must include the number of individuals involved, their 46.16work locations and anticipated hours of work, a summary of the tasks to be performed, 46.17and a description of how the individuals will be trained and supervised. 46.18    Sec. 21. Minnesota Statutes 2012, section 256J.72, subdivision 3, is amended to read: 46.19    Subd. 3. Status of participant. A participant may not work in a temporary public 46.20service or community service job for a public employer for more than 67 working days or 46.21536 hours, whichever is greater, as part of a work program established under this chapter, 46.22or chapter 256, new text begin or chapter new text end 256D, or 256K. A participant who exceeds the time limits in 46.23this subdivision is a public employee, as that term is used in chapter 179A. Upon the 46.24written request of the exclusive bargaining representative, a county or public service 46.25employer shall make available to the affected exclusive bargaining representative a report 46.26of hours worked by participants in temporary public service or community service jobs. 46.27    Sec. 22. new text begin REPEALER. new text end 46.28 new text begin Minnesota Statutes 2012, sections 245.461, subdivision 3; 245.463, subdivisions new text end 46.29 new text begin 1, 3, and 4; 256.01, subdivisions 2a, 13, and 23a; 256B.0185; 256D.02, subdivision 4a; new text end 46.30 new text begin 256J.575, subdivision 4; 256J.74, subdivision 4; and 256L.04, subdivision 9, new text end new text begin are repealed. new text end