1.1 	A bill for an act
1.2 	relating to state government; providing supplemental appropriations for 
1.3 	higher education, jobs and economic development, public safety, corrections, 
1.4 	transportation, environment, natural resources, and agriculture, kindergarten 
1.5 	through grade 12 and adult education, health and human services; making 
1.6 	forecast adjustments; modifying prior appropriations; modifying disposition of 
1.7 	certain revenues; dedicating money to the Board of Trustees of the Minnesota 
1.8 	State Colleges and Universities for compensation costs associated with 
1.9 	settlement of employment contracts; dedicating certain funds for homeownership 
1.10 	opportunities for families evicted or given notice of eviction due to a disabled 
1.11 	child in the home; requiring the housing finance agency to improve efforts 
1.12 	to reduce racial and ethnic inequalities in homeownership rates; creating an 
1.13 	office of regenerative medicine development; modifying workforce program 
1.14 	outcomes; creating job training programs; modifying workers' compensation 
1.15 	provisions; providing funding for the Minnesota Racing Commission; providing 
1.16 	a grant to the Mille Lacs Tourism Council; funding Peace Officer Standards 
1.17 	and Training Board; modifying certain provisions pertaining to victims of 
1.18 	domestic violence and sentencing for criminal sexual conduct; continuing the 
1.19 	fire safety advisory committee; providing for disaster assistance for public 
1.20 	entities when federal aid is granted and when federal aid is absent; establishing 
1.21 	certain transportation oversight authority; modifying provisions for railroad 
1.22 	and pipeline safety; modifying certain transportation provisions; providing 
1.23 	compensation for bee deaths due to pesticide poisoning; establishing pollinator 
1.24 	emergency response team; providing nonresident off-highway motorcycle 
1.25 	state trail pass; requiring certain recycling; modifying solid waste reduction; 
1.26 	regulating harmful chemicals in children's products; providing for state parks 
1.27 	and trails license plates, and licensing and inspection of commercial dog and cat 
1.28 	breeders; providing for invasive terrestrial plants and pests center; providing 
1.29 	funding and policy modifications for early childhood, kindergarten through grade 
1.30 	12, and adult education, including general education, education excellence, 
1.31 	special education, facilities, nutrition, community education, self-sufficiency and 
1.32 	lifelong learning, and state agencies; making changes to provisions governing 
1.33 	the Department of Health, Department of Human Services, children and family 
1.34 	services, continuing care, community first services and supports, health care, 
1.35 	public assistance programs, and chemical dependency; modifying the hospital 
1.36 	payment system; modifying provisions governing background studies and 
1.37 	home and community-based services standards; setting fees; providing rate 
1.38 	increases; establishing grant programs; modifying medical assistance provisions; 
1.39 	modifying the use of positive support strategies and emergency manual restraint; 
2.1 	providing for certain grants; defining terms; creating accounts; requiring reports; 
2.2 	providing penalties; authorizing rulemaking;amending Minnesota Statutes 2012, 
2.3 	sections 12.03, by adding subdivisions; 12.221, subdivision 4, by adding a 
2.4 	subdivision; 12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision 
2.5 	3; 12A.15, subdivision 1; 13.46, subdivision 4; 13.643, subdivision 6; 13.7411, 
2.6 	subdivision 8; 13.84, subdivisions 5, 6; 16A.28, by adding a subdivision; 
2.7 	18B.01, by adding subdivisions; 18B.03, by adding a subdivision; 18B.04; 
2.8 	84.788, subdivision 2; 85.053, subdivision 2; 85.34, subdivision 7; 85A.02, 
2.9 	subdivision 2; 103G.271, subdivision 6; 115A.151; 115A.55, subdivision 4; 
2.10 	115A.551, subdivisions 1, 2a; 115A.557, subdivisions 2, 3; 115E.01, by adding 
2.11 	subdivisions; 115E.08, by adding subdivisions; 116.9401; 116.9402; 116.9403; 
2.12 	116.9405; 116.9406; 116L.98; 121A.19; 122A.40, subdivision 13; 122A.41, 
2.13 	subdivision 6; 122A.415, subdivision 1; 123A.05, subdivision 2; 123A.485; 
2.14 	123A.64; 123B.71, subdivisions 8, 9; 124D.09, subdivisions 9, 13; 124D.111, by 
2.15 	adding a subdivision; 124D.16, subdivision 2; 124D.522; 124D.531, subdivision 
2.16 	3; 124D.59, subdivision 2; 125A.76, subdivision 2; 126C.10, subdivisions 25, 
2.17 	26; 127A.45, subdivisions 2, 3; 127A.49, subdivisions 2, 3; 129C.10, subdivision 
2.18 	3, by adding a subdivision; 144.0724, as amended; 144.551, subdivision 1; 
2.19 	165.15, subdivision 2; 169.826, by adding a subdivision; 169.8261, by adding a 
2.20 	subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865, 
2.21 	subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding 
2.22 	a subdivision; 174.24, by adding a subdivision; 176.129, subdivisions 2a, 
2.23 	7; 176.135, subdivision 7; 176.136, subdivision 1a; 176.231, subdivision 2; 
2.24 	176.305, subdivision 1a; 179.02, by adding a subdivision; 181A.07, by adding 
2.25 	a subdivision; 219.015, subdivisions 1, 2; 243.167, subdivision 1; 245C.03, by 
2.26 	adding a subdivision; 245C.04, by adding a subdivision; 245C.05, subdivision 
2.27 	5; 245C.10, by adding a subdivision; 245C.33, subdivisions 1, 4; 252.451, 
2.28 	subdivision 2; 254B.12; 256.01, by adding a subdivision; 256.9685, subdivisions 
2.29 	1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a, 3b, 6a, 8, 8a, 
2.30 	9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752, subdivision 
2.31 	2; 256B.04, by adding a subdivision; 256B.0625, subdivision 30; 256B.0751, 
2.32 	by adding a subdivision; 256B.199; 256B.35, subdivision 1; 256B.441, by 
2.33 	adding a subdivision; 256B.5012, by adding a subdivision; 256I.04, subdivision 
2.34 	2b; 256I.05, subdivision 2; 256J.49, subdivision 13; 256J.53, subdivisions 1, 
2.35 	2, 5; 256J.531; 257.85, subdivision 11; 260C.212, subdivision 1; 260C.515, 
2.36 	subdivision 4; 260C.611; 299F.012, subdivisions 1, 2; 469.084, by adding 
2.37 	a subdivision; 473.408, by adding a subdivision; 609.135, subdivision 2; 
2.38 	609.3451, subdivision 3; 611A.06, by adding a subdivision; Minnesota Statutes 
2.39 	2013 Supplement, sections 16A.724, subdivision 2; 123B.53, subdivisions 
2.40 	1, 5; 123B.54; 123B.75, subdivision 5; 124D.11, subdivision 1; 124D.111, 
2.41 	subdivision 1; 124D.165, subdivision 5; 124D.531, subdivision 1; 124D.65, 
2.42 	subdivision 5; 124D.862, subdivisions 1, 2; 125A.0942; 125A.11, subdivision 
2.43 	1; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05, 
2.44 	subdivision 15; 126C.10, subdivisions 2, 2a, 2d, 24, 31; 126C.17, subdivisions 
2.45 	6, 7b, 9, 9a; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 7; 
2.46 	145.4716, subdivision 2; 168.123, subdivision 2; 174.42, subdivision 2; 176.011, 
2.47 	subdivision 15; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision 3; 
2.48 	245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b, 
2.49 	8b, 11, 15b, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1, 2, 
2.50 	3, by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions 1, 
2.51 	1a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071, 
2.52 	subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a; 
2.53 	245D.091, subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision 
2.54 	2; 256B.04, subdivision 21; 256B.056, subdivision 5c; 256B.0949, subdivision 4; 
2.55 	256B.439, subdivisions 1, 7; 256B.441, subdivision 53; 256B.4912, subdivision 
2.56 	1; 256B.69, subdivision 34; 256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 
2.57 	13, 15, 16, 17, 18, 23, 24, by adding subdivisions; 256N.22, subdivisions 1, 2, 
2.58 	4; 256N.23, subdivision 4; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 
3.1 	256N.27, subdivision 4; Laws 2008, chapter 363, article 5, section 4, subdivision 
3.2 	7, as amended; Laws 2009, chapter 83, article 1, section 10, subdivision 7; Laws 
3.3 	2010, chapter 189, sections 15, subdivision 12; 26, subdivision 4; Laws 2012, 
3.4 	chapter 249, section 11; Laws 2012, chapter 263, section 1; Laws 2012, chapter 
3.5 	287, article 2, sections 1; 3; Laws 2012, First Special Session chapter 1, article 1, 
3.6 	section 28; Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 
3.7 	85, article 1, sections 3, subdivisions 2, 5, 6; 4, subdivisions 1, 2, 3; 5; 13, 
3.8 	subdivision 5; Laws 2013, chapter 86, article 1, sections 12, subdivision 3, as 
3.9 	amended; 13; Laws 2013, chapter 108, article 1, section 24; article 3, section 48; 
3.10 	article 7, section 49; article 14, sections 2, subdivisions 1, 4, as amended, 5, 6, 
3.11 	as amended; 3, subdivisions 1, 4; 4, subdivision 8; 12; Laws 2013, chapter 114, 
3.12 	article 3, section 4, subdivision 3; Laws 2013, chapter 116, article 1, section 58, 
3.13 	subdivisions 2, 3, 4, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 
3.14 	11, 15, 20; article 4, section 9, subdivision 2; article 5, section 31, subdivisions 
3.15 	2, 3, 4, 8; article 6, section 12, subdivisions 2, 3, 4, 5, 6; article 7, section 21, 
3.16 	subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 10, 11, 14; 
3.17 	article 9, sections 1, subdivision 2; 2; Laws 2013, chapter 117, article 1, sections 
3.18 	3, subdivisions 2, 3; 4; proposing coding for new law in Minnesota Statutes, 
3.19 	chapters 18B; 19; 84; 85; 87A; 115E; 116; 116J; 123A; 123B; 124D; 129C; 144; 
3.20 	144A; 168; 219; 299A; 347; 473; proposing coding for new law as Minnesota 
3.21 	Statutes, chapter 12B; repealing Minnesota Statutes 2012, sections 115A.551, 
3.22 	subdivision 2; 116J.997; 123B.71, subdivision 1; 175.006, subdivision 1; 175.08; 
3.23 	175.14; 175.26; 176.1311; 176.136, subdivision 3; 176.2615; 176.641; 256.969, 
3.24 	subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 
3.25 	3, 4; Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7.
3.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.27 	ARTICLE 1
3.28 	HIGHER EDUCATION

3.29 	Section 1. MINNESOTA STATE COLLEGES AND UNIVERSITIES; 
3.30 	SETTLEMENT OF EMPLOYMENT CONTRACTS.
 3.31 	$17,000,000 in fiscal year 2015 is appropriated from the general fund to the Board 
3.32 	of Trustees of the Minnesota State Colleges and Universities for compensation costs 
3.33 	associated with the settlement of employment contracts for fiscal year 2014. The board's 
3.34 	appropriation base is increased by $14,000,000 in fiscal years 2016 and 2017.

3.35 	ARTICLE 2
3.36 	HOUSING

3.37 	Section 1. Laws 2013, chapter 85, article 1, section 4, subdivision 1, is amended to read:

3.38	Subdivision 1.Total Appropriation
 	$
	58,748,000
	$
	42,748,000
	
3.39 	The amounts that may be spent for each 
3.40 	purpose are specified in the following 
3.41 	subdivisions.
4.1 	Unless otherwise specified, this appropriation 
4.2 	is for transfer to the housing development 
4.3 	fund for the programs specified in this 
4.4 	section. Except as otherwise indicated, this 
4.5 	transfer is part of the agency's permanent 
4.6 	budget base.
4.7 	The Housing Finance Agency will make 
4.8 	continuous improvements to its ongoing 
4.9 	efforts to reduce the racial and ethnic 
4.10 	inequalities in homeownership rates and 
4.11 	will seek opportunities to deploy increasing 
4.12 	levels of resources toward these efforts.

4.13 	Sec. 2. Laws 2013, chapter 85, article 1, section 4, subdivision 2, is amended to read:

4.14	Subd. 2.Challenge Program
 		19,203,000
		9,203,000
	
4.15 	(a) This appropriation is for the economic 
4.16 	development and housing challenge program 
4.17 	under Minnesota Statutes, section 462A.33. 
4.18 	The agency must continue to strengthen its 
4.19 	efforts to address the disparity rate between 
4.20 	white households and indigenous American 
4.21 	Indians and communities of color. Of this 
4.22 	amount, $1,208,000 each year shall be made 
4.23 	available during the first 11 months of the 
4.24 	fiscal year exclusively for housing projects 
4.25 	for American Indians. Any funds not 
4.26 	committed to housing projects for American 
4.27 	Indians in the first 11 months of the fiscal year 
4.28 	shall be available for any eligible activity 
4.29 	under Minnesota Statues, section 462A.33.
4.30 	(b) Of this amount, $10,000,000 is a onetime 
4.31 	appropriation and is targeted for housing in 
4.32 	communities and regions that have:
4.33 	(1)(i) low housing vacancy rates; and
5.1 	(ii) cooperatively developed a plan that 
5.2 	identifies current and future housing needs; 
5.3 	and
5.4 	(2)(i) experienced job growth since 2005 and 
5.5 	have at least 2,000 jobs within the commuter 
5.6 	shed;
5.7 	(ii) evidence of anticipated job expansion; or
5.8 	(iii) a significant portion of area employees 
5.9 	who commute more than 30 miles between 
5.10 	their residence and their employment.
5.11 	(c) Priority shall be given to programs and 
5.12 	projects that are land trust programs and 
5.13 	programs that work in coordination with a 
5.14 	land trust program.
5.15 	(d) Of this amount, $500,000 is for 
5.16 	homeownership opportunities for families 
5.17 	who have been evicted or been given 
5.18 	notice of an eviction due to a disabled 
5.19 	child in the home, including adjustments 
5.20 	for the incremental increase in costs of 
5.21 	addressing the unique housing needs of those 
5.22 	households. Any funds not expended for this 
5.23 	purpose may be returned to the challenge 
5.24 	fund after October 31, 2014.
5.25 	(d) (e) The base funding for this program in 
5.26 	the 2016-2017 biennium is $12,925,000 each 
5.27 	year.

5.28 	Sec. 3. Laws 2013, chapter 85, article 1, section 4, subdivision 3, is amended to read:

5.29
5.30	Subd. 3.Housing Trust Fund
 		13,276,000
12,776,000
		10,276,000
	
5.31 	(a) This appropriation is for deposit in the 
5.32 	housing trust fund account created under 
5.33 	Minnesota Statutes, section 462A.201, and 
5.34 	may be used for the purposes provided in 
6.1 	that section. To the extent that these funds 
6.2 	are used for the acquisition of housing, the 
6.3 	agency shall give priority among comparable 
6.4 	projects to projects that focus on creating 
6.5 	safe and stable housing for homeless youth 
6.6 	or projects that provide housing to trafficked 
6.7 	women and children.
6.8 	(b) $2,000,000 in the first year is a onetime 
6.9 	appropriation for temporary rental assistance 
6.10 	for families with school-age children who 
6.11 	have changed school or home at least 
6.12 	once in the last school year. The agency, 
6.13 	in consultation with the Department of 
6.14 	Education, may establish additional targeting 
6.15 	criteria.
6.16 	(c) Of this amount, $500,000 the first year 
6.17 	is a onetime appropriation for temporary 
6.18 	rental assistance for adults who are in 
6.19 	the process of being released from state 
6.20 	correctional facilities or on supervised 
6.21 	release in the community who are homeless 
6.22 	or at risk of becoming homeless. The 
6.23 	agency, in consultation with the Department 
6.24 	of Corrections, may establish additional 
6.25 	targeting criteria to identify those adults 
6.26 	most at risk of reentering state correctional 
6.27 	facilities.
6.28 	(d) Of this amount, $500,000 the first year 
6.29 	is a onetime appropriation for a grant to the 
6.30 	nonprofit organization selected to administer 
6.31 	the state demonstration project for high-risk 
6.32 	adults established under Laws 2007, chapter 
6.33 	54, article 1, section 19.
7.1 	(e) (d) The base funding for this program in 
7.2 	fiscal years 2016 and 2017 is $11,471,000 
7.3 	each year.

7.4 	Sec. 4. AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.
 7.5 	(a) The Housing Finance Agency shall provide the chairs and ranking minority 
7.6 	members of the house of representatives and senate committees with jurisdiction over the 
7.7 	agency with the draft and final versions of its affordable housing plan before and after it 
7.8 	has been submitted to the agency board for consideration.
7.9 	(b) The Housing Finance Agency shall annually report to the chairs and ranking 
7.10 	minority members of the house of representatives and senate committees with jurisdiction 
7.11 	over the agency on the progress, if any, the agency has made in closing the racial disparity 
7.12 	gap and low-income concentrated housing disparities.
7.13 	JOBS AND ECONOMIC DEVELOPMENT

7.14 	ARTICLE 3
7.15 	DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT; 
7.16 	DEPARTMENT OF LABOR AND INDUSTRY APPROPRIATIONS

7.17	Section 1. APPROPRIATIONS.
 	
7.18 	The sums shown in the columns under "Appropriations" are added to or, if shown 
7.19 	in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1, 
7.20 	or other law to the specified agencies. The appropriations are from the general fund, or 
7.21 	another named fund, and are available for the fiscal years indicated for each purpose. The 
7.22 	figures "2014" and "2015" used in this article mean that the appropriations listed under 
7.23 	them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 
7.24 	Appropriations for the fiscal year ending June 30, 2014, are effective the day following 
7.25 	final enactment. Reductions may be taken in either fiscal year.

7.26				APPROPRIATIONS
	
7.27				Available for the Year
	
7.28				Ending June 30
	
7.29					2014
		2015

7.30
7.31	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

7.32	Subdivision 1.Total Appropriation
 	$
	0
	$
	38,350,000
	
8.1 	The amounts that may be spent for each 
8.2 	purpose are specified in the following 
8.3 	subdivisions.

8.4
8.5	Subd. 2.Business and Community 
Development
 		0
		36,250,000
	
8.6 	(a) $25,000,000 in fiscal year 2015 is for 
8.7 	grants for the development of broadband 
8.8 	infrastructure under Minnesota Statutes, 
8.9 	section 116J.395, or to supplement revenues 
8.10 	raised by bonds sold by local units of 
8.11 	government for broadband infrastructure 
8.12 	development. This is a onetime appropriation 
8.13 	and is available until June 30, 2017.
8.14 	(b) $450,000 in fiscal year 2015 is from the 
8.15 	general fund for one or more contracts with 
8.16 	an independent organization to continue to:
8.17 	(1) collect broadband deployment data from 
8.18 	Minnesota providers, verify its accuracy 
8.19 	through on-the-ground testing, and create 
8.20 	state and county maps available to the public 
8.21 	showing the availability of broadband service 
8.22 	at various upload and download speeds 
8.23 	throughout Minnesota, in order to measure 
8.24 	progress in achieving the state's broadband 
8.25 	goals established in Minnesota Statutes, 
8.26 	section 237.012;
8.27 	(2) analyze the deployment data collected to 
8.28 	help inform future investments in broadband 
8.29 	infrastructure; and
8.30 	(3) conduct business and residential surveys 
8.31 	that measure broadband adoption and use in 
8.32 	the state.
8.33 	Data provided by a broadband provider to the 
8.34 	contractor under this paragraph is nonpublic 
8.35 	data under Minnesota Statutes, section 13.02, 
9.1 	subdivision 9. Maps produced under this 
9.2 	paragraph are public data under Minnesota 
9.3 	Statutes, section 13.03. This is a onetime 
9.4 	appropriation and is available until expended.
9.5 	(c) $1,000,000 in fiscal year 2015 is from 
9.6 	the general fund for a grant to the Southwest 
9.7 	Initiative Foundation for business revolving 
9.8 	loans or other lending programs. This is a 
9.9 	onetime appropriation and is available until 
9.10 	expended.
9.11 	(d) $1,000,000 in fiscal year 2015 is from the 
9.12 	general fund for a grant to the West Central 
9.13 	Initiative Foundation for business revolving 
9.14 	loans or other lending programs. This is a 
9.15 	onetime appropriation and is available until 
9.16 	expended.
9.17 	(e) $1,000,000 in fiscal year 2015 is from 
9.18 	the general fund for a grant to the Southern 
9.19 	Minnesota Initiative Foundation for business 
9.20 	revolving loans or other lending programs. 
9.21 	This is a onetime appropriation and is 
9.22 	available until expended.
9.23 	(f) $1,000,000 in fiscal year 2015 is from the 
9.24 	general fund for a grant to the Northwest 
9.25 	Minnesota Foundation for business revolving 
9.26 	loans or other lending programs. This is a 
9.27 	onetime appropriation and is available until 
9.28 	expended.
9.29 	(g) $1,000,000 in fiscal year 2015 is from 
9.30 	the general fund for a grant to the Initiative 
9.31 	Foundation for business revolving loans or 
9.32 	other lending programs. This is a onetime 
9.33 	appropriation and is available until expended.
9.34 	(h) $1,000,000 in fiscal year 2015 is from 
9.35 	the general fund for a grant to the Northland 
10.1 	Foundation for business revolving loans or 
10.2 	other lending programs. This is a onetime 
10.3 	appropriation and is available until expended.
10.4 	(i) $1,000,000 in fiscal year 2015 is from the 
10.5 	general fund for a grant to the Urban Initiative 
10.6 	Board under Minnesota Statutes, chapter 
10.7 	116M, for business technical assistance or 
10.8 	organizational capacity building. Funds 
10.9 	available under this paragraph must be 
10.10 	allocated as follows: (1) 50 percent of 
10.11 	the funds must be allocated for projects 
10.12 	in the counties of Dakota, Ramsey, and 
10.13 	Washington; and (2) 50 percent of the funds 
10.14 	must be allocated for projects in the counties 
10.15 	of Anoka, Carver, Hennepin, and Scott. This 
10.16 	is a onetime appropriation and is available 
10.17 	until expended.
10.18 	(j) $500,000 in fiscal year 2015 is from the 
10.19 	general fund for grants to small business 
10.20 	development centers under Minnesota 
10.21 	Statutes, section 116J.68. Funds made 
10.22 	available under this paragraph may be used to 
10.23 	match funds under the federal Small Business 
10.24 	Development Center (SBDC) program under 
10.25 	United States Code, title 15, section 648, to 
10.26 	provide consulting and technical services, or 
10.27 	to build additional SBDC network capacity 
10.28 	to serve entrepreneurs and small businesses. 
10.29 	The commissioner shall allocate funds 
10.30 	equally among the nine regional centers and 
10.31 	lead center. This is a onetime appropriation 
10.32 	and is available until expended.
10.33 	(k) $750,000 in fiscal year 2015 is from the 
10.34 	general fund for the innovation voucher pilot 
10.35 	program in article 4, section 9. This is a 
11.1 	onetime appropriation and is available until 
11.2 	expended. Of this amount, up to five percent 
11.3 	may be used for administration. Vouchers 
11.4 	require a 50 percent match by recipients.
11.5 	(l) $1,600,000 in fiscal year 2015 is 
11.6 	from the general fund for the Minnesota 
11.7 	Jobs Skills Partnership program under 
11.8 	Minnesota Statutes, section 116L.02. Of this 
11.9 	appropriation, $600,000 is onetime and is 
11.10 	available until expended and $1,000,000 is 
11.11 	added to the agency's base budget each year 
11.12 	for fiscal years 2016 and 2017.
11.13 	(m) $450,000 in fiscal year 2015 is from the 
11.14 	general fund for the Office of Regenerative 
11.15 	Medicine under Minnesota Statutes, sections 
11.16 	116J.886 to 116J.8862. This is a onetime 
11.17 	appropriation and is available until expended.

11.18	Subd. 3.Workforce Development
 		0
		1,600,000
	
11.19 	(a) $75,000 in fiscal year 2015 is from 
11.20 	the general fund for workforce program 
11.21 	outcome activities under Minnesota Statutes, 
11.22 	section 116L.98. Up to five percent of 
11.23 	this appropriation may be used by the 
11.24 	commissioner for administration of the 
11.25 	program. This is a onetime appropriation and 
11.26 	is available until expended.
11.27 	(b) $1,000,000 in fiscal year 2015 is from the 
11.28 	general fund for training rebates under article 
11.29 	4, section 11. This is a onetime appropriation 
11.30 	and is available until expended.
11.31 	(c) $25,000 in fiscal year 2015 is from the 
11.32 	general fund for the information technology 
11.33 	apprenticeship pilot program under article 4, 
11.34 	section 13. This is a onetime appropriation 
11.35 	and is available until expended.

12.1	Subd. 4.General Support Services
 		0
		500,000
	
12.2 	$500,000 in fiscal year 2015 is for 
12.3 	establishing and operating the interagency 
12.4 	Olmstead Implementation Office. This is a 
12.5 	onetime appropriation and is available until 
12.6 	expended.

12.7
12.8	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY

12.9	Subdivision 1.Total Appropriation
 	$
	0
	$
	275,000
	
12.10 	The amounts that may be spent for each 
12.11 	purpose are specified in the following 
12.12 	subdivisions.

12.13	Subd. 2.Labor Standards and Apprenticeship
 		0
		275,000
	
12.14 	(a) The base for the department is increased 
12.15 	by $70,000 each year for implementing and 
12.16 	administering a minimum wage inflation 
12.17 	adjustment. This adjustment is available only 
12.18 	if a law is enacted in the 2014 legislative 
12.19 	session that includes an automatic inflation 
12.20 	adjustment to the state minimum wage. The 
12.21 	availability of this appropriation is effective 
12.22 	in the same fiscal year that the inflation 
12.23 	adjustment is first effective.
12.24 	(b) $25,000 in fiscal year 2015 is from the 
12.25 	general fund for the precision manufacturing 
12.26 	and health care services pilot program under 
12.27 	article 4, section 12. This is a onetime 
12.28 	appropriation and is available until expended.

12.29 	Sec. 4. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

12.30
12.31	Subd. 2.Business and Community 
Development
 		53,642,000
		45,407,000

13.1	Appropriations by Fund
	
13.2	General
	52,942,000
	44,707,000
	
13.3	Remediation
	700,000
	700,000
	
13.4 	(a)(1) $15,000,000 each year is for the 
13.5 	Minnesota investment fund under Minnesota 
13.6 	Statutes, section 116J.8731. Of this amount, 
13.7 	the commissioner of employment and 
13.8 	economic development may use up to three 
13.9 	percent for administrative expenses. This 
13.10 	appropriation is available until spent.
13.11 	(2) Of the amount available under clause 
13.12 	(1), up to $3,000,000 in fiscal year 2014 
13.13 	is for a loan to facilitate initial investment 
13.14 	in the purchase and operation of a 
13.15 	biopharmaceutical manufacturing facility. 
13.16 	This loan is not subject to the loan limitations 
13.17 	under Minnesota Statutes, section 116J.8731, 
13.18 	and shall be forgiven by the commissioner 
13.19 	of employment and economic development 
13.20 	upon verification of meeting performance 
13.21 	goals. Purchases related to and for the 
13.22 	purposes of this loan award must be made 
13.23 	between January 1, 2013, and June 30, 2015. 
13.24 	The amount under this clause is available 
13.25 	until expended.
13.26 	(3) Of the amount available under clause (1), 
13.27 	up to $2,000,000 is available for subsequent 
13.28 	investment in the biopharmaceutical facility 
13.29 	project in clause (2). The amount under this 
13.30 	clause is available until expended. Loan 
13.31 	thresholds under clause (2) must be achieved 
13.32 	and maintained to receive funding. Loans 
13.33 	are not subject to the loan limitations under 
13.34 	Minnesota Statutes, section 116J.8731, and 
13.35 	shall be forgiven by the commissioner of 
14.1 	employment and economic development 
14.2 	upon verification of meeting performance 
14.3 	goals. Purchases related to and for the 
14.4 	purposes of loan awards must be made during 
14.5 	the biennium the loan was received.
14.6 	(4) Notwithstanding any law to the contrary, 
14.7 	the biopharmaceutical manufacturing facility 
14.8 	in this paragraph shall be deemed eligible 
14.9 	for the Minnesota job creation fund under 
14.10 	Minnesota Statutes, section 116J.8748, 
14.11 	by having at least $25,000,000 in capital 
14.12 	investment and 190 retained employees.
14.13 	(5) For purposes of clauses (1) to (4), 
14.14 	"biopharmaceutical" and "biologics" are 
14.15 	interchangeable and mean medical drugs 
14.16 	or medicinal preparations produced using 
14.17 	technology that uses biological systems, 
14.18 	living organisms, or derivatives of living 
14.19 	organisms, to make or modify products or 
14.20 	processes for specific use. The medical drugs 
14.21 	or medicinal preparations include but are not 
14.22 	limited to proteins, antibodies, nucleic acids, 
14.23 	and vaccines.
14.24 	(b) $12,000,000 each year is for the 
14.25 	Minnesota job creation fund under Minnesota 
14.26 	Statutes, section 116J.8748. Of this amount, 
14.27 	the commissioner of employment and 
14.28 	economic development may use up to three 
14.29 	percent for administrative expenses. This 
14.30 	appropriation is available until spent. The 
14.31 	base funding for this program shall be 
14.32 	$12,500,000 each year in the fiscal year 
14.33 	2016-2017 biennium.
14.34 	(c) $1,272,000 each year is from the 
14.35 	general fund for contaminated site cleanup 
15.1 	and development grants under Minnesota 
15.2 	Statutes, sections 116J.551 to 116J.558. This 
15.3 	appropriation is available until expended.
15.4 	(d) $700,000 each year is from the 
15.5 	remediation fund for contaminated site 
15.6 	cleanup and development grants under 
15.7 	Minnesota Statutes, sections 116J.551 to 
15.8 	116J.558. This appropriation is available 
15.9 	until expended.
15.10 	(e) $1,425,000 the first year and $1,425,000 
15.11 	the second year are from the general fund for 
15.12 	the business development competitive grant 
15.13 	program. Of this amount, up to five percent 
15.14 	is for administration and monitoring of the 
15.15 	business development competitive grant 
15.16 	program. All grant awards shall be for two 
15.17 	consecutive years. Grants shall be awarded 
15.18 	in the first year.
15.19 	(f) $4,195,000 each year is from the general 
15.20 	fund for the Minnesota job skills partnership 
15.21 	program under Minnesota Statutes, sections 
15.22 	116L.01 to 116L.17. If the appropriation for 
15.23 	either year is insufficient, the appropriation 
15.24 	for the other year is available. This 
15.25 	appropriation is available until spent.
15.26 	(g) $6,000,000 the first year is from the 
15.27 	general fund for the redevelopment program 
15.28 	under Minnesota Statutes, section 116J.571. 
15.29 	This is a onetime appropriation and is 
15.30 	available until spent.
15.31 	(h) $12,000 each year is from the general 
15.32 	fund for a grant to the Upper Minnesota Film 
15.33 	Office.
15.34 	(i) $325,000 each year is from the general 
15.35 	fund for the Minnesota Film and TV Board. 
16.1 	The appropriation in each year is available 
16.2 	only upon receipt by the board of $1 in 
16.3 	matching contributions of money or in-kind 
16.4 	contributions from nonstate sources for every 
16.5 	$3 provided by this appropriation, except that 
16.6 	each year up to $50,000 is available on July 
16.7 	1 even if the required matching contribution 
16.8 	has not been received by that date.
16.9 	(j) $100,000 each year is for a grant to the 
16.10 	Northern Lights International Music Festival.
16.11 	(k) $5,000,000 each year is from the general 
16.12 	fund for a grant to the Minnesota Film 
16.13 	and TV Board for the film production jobs 
16.14 	program under Minnesota Statutes, section 
16.15 	116U.26. This appropriation is available 
16.16 	until expended. The base funding for this 
16.17 	program shall be $1,500,000 each year in the 
16.18 	fiscal year 2016-2017 biennium.
16.19 	(l) $375,000 each year is from the general 
16.20 	fund for a grant to Enterprise Minnesota, Inc., 
16.21 	for the small business growth acceleration 
16.22 	program under Minnesota Statutes, section 
16.23 	116O.115. This is a onetime appropriation.
16.24 	(m) $160,000 each year is from the general 
16.25 	fund for a grant to develop and implement 
16.26 	a southern and southwestern Minnesota 
16.27 	initiative foundation collaborative pilot 
16.28 	project. Funds available under this paragraph 
16.29 	must be used to support and develop 
16.30 	entrepreneurs in diverse populations in 
16.31 	southern and southwestern Minnesota. This 
16.32 	is a onetime appropriation and is available 
16.33 	until expended. 
16.34 	(n) $100,000 each year is from the general 
16.35 	fund for the Center for Rural Policy 
17.1 	and Development. This is a onetime 
17.2 	appropriation.
17.3 	(o) $250,000 each year is from the general 
17.4 	fund for the Broadband Development Office.
17.5 	(p) $250,000 the first year is from the 
17.6 	general fund for a onetime grant to the St. 
17.7 	Paul Planning and Economic Development 
17.8 	Department for neighborhood stabilization 
17.9 	use in NSP3.
17.10 	(q) $1,235,000 the first year is from the 
17.11 	general fund for a onetime grant to a city 
17.12 	of the second class that is designated as an 
17.13 	economically depressed area by the United 
17.14 	States Department of Commerce. The 
17.15 	appropriation is for economic development, 
17.16 	redevelopment, and job creation programs 
17.17 	and projects. This appropriation is available 
17.18 	until expended.
17.19 	(r) $875,000 each year is from the general 
17.20 	fund for the Host Community Economic 
17.21 	Development Program established in 
17.22 	Minnesota Statutes, section 116J.548.
17.23 	(s) $750,000 the first year is from the general 
17.24 	fund for a onetime grant to the city of Morris 
17.25 	for loans or grants to agricultural processing 
17.26 	facilities for energy efficiency improvements. 
17.27 	Funds available under this section shall be 
17.28 	used to increase conservation and promote 
17.29 	energy efficiency through retrofitting existing 
17.30 	systems and installing new systems to 
17.31 	recover waste heat from industrial processes 
17.32 	and reuse energy. This appropriation is not 
17.33 	available until the commissioner determines 
17.34 	that at least $1,250,000 a match of $750,000
17.35 	 is committed to the project from nonpublic 
18.1 	sources. This appropriation is available until 
18.2 	expended.

18.3 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

18.4 	Sec. 5. Laws 2013, chapter 85, article 1, section 3, subdivision 5, is amended to read:

18.5	Subd. 5.Minnesota Trade Office
 		2,322,000
		2,292,000
	
18.6 	(a) $330,000 in fiscal year 2014 and $300,000 
18.7 	in fiscal year 2015 are for the STEP grants 
18.8 	in Minnesota Statutes, section 116J.979. Of 
18.9 	the fiscal year 2014 appropriation, $30,000 is 
18.10 	available for expenditure until June 30, 2015, 
18.11 	and is for a grant to Voice of East African 
18.12 	Women, Inc., for establishing trade, export, 
18.13 	and cultural exchange relations between the 
18.14 	state of Minnesota and east African nations.
18.15 	(b) $180,000 in fiscal year 2014 and 
18.16 	$180,000 in fiscal year 2015 are for the Invest 
18.17 	Minnesota marketing initiative in Minnesota 
18.18 	Statutes, section 116J.9781. Notwithstanding 
18.19 	any other law, this provision does not expire.
18.20 	(c) $270,000 each year is from the general 
18.21 	fund for the expansion of Minnesota Trade 
18.22 	Offices under Minnesota Statutes, section 
18.23 	116J.978.
18.24 	(d) $50,000 each year is from the general 
18.25 	fund for the trade policy advisory group 
18.26 	under Minnesota Statutes, section 116J.9661.
18.27 	(e) The commissioner of employment and 
18.28 	economic development, in consultation 
18.29 	with the commissioner of agriculture, shall 
18.30 	identify and increase export opportunities for 
18.31 	Minnesota agricultural products.

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

19.1 	Sec. 6. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

19.2	Subd. 6.Vocational Rehabilitation
 		27,691,000
		27,691,000

19.3	Appropriations by Fund
	
19.4	General
	20,861,000
	20,861,000
	
19.5
19.6	Workforce 
Development
	6,830,000
	6,830,000
	
19.7 	(a) $10,800,000 each year is from the general 
19.8 	fund for the state's vocational rehabilitation 
19.9 	program under Minnesota Statutes, chapter 
19.10 	268A.
19.11 	(b) $2,261,000 each year is from the general 
19.12 	fund for grants to centers for independent 
19.13 	living under Minnesota Statutes, section 
19.14 	268A.11.
19.15 	(c) $5,745,000 each year from the general 
19.16 	fund and $6,830,000 each year from the 
19.17 	workforce development fund is for extended 
19.18 	employment services for persons with 
19.19 	severe disabilities under Minnesota Statutes, 
19.20 	section 268A.15. The allocation of extended 
19.21 	employment funds to Courage Center from 
19.22 	July 1, 2012 to June 30, 2013 must be 
19.23 	contracted to Allina Health systems from 
19.24 	July 1, 2013 to June 30, 2014 2015 to provide 
19.25 	extended employment services in accordance 
19.26 	with Minnesota Rules, parts 3300.2005 to 
19.27 	3300.2055.
19.28 	(d) $2,055,000 each year is from the general 
19.29 	fund for grants to programs that provide 
19.30 	employment support services to persons with 
19.31 	mental illness under Minnesota Statutes, 
19.32 	sections 268A.13 and 268A.14. The base 
19.33 	appropriation for this program is $1,555,000 
19.34 	each year in the fiscal year 2016-2017 
19.35 	biennium.

20.1 	Sec. 7. Laws 2013, chapter 85, article 1, section 13, subdivision 5, is amended to read:

20.2	Subd. 5.Telecommunications
 		1,949,000
		2,249,000

20.3	Appropriations by Fund
	
20.4	General
	1,009,000
	1,009,000
	
20.5	Special Revenue
	940,000
	1,240,000
	
20.6 	$940,000 in fiscal year 2014 and $1,240,000 
20.7 	in fiscal year 2015 are appropriated to the 
20.8 	commissioner from the telecommunication 
20.9 	access fund for the following transfers. This 
20.10 	appropriation is added to the department's 
20.11 	base.
20.12 	(1) $500,000 in fiscal year 2014 and $800,000 
20.13 	in fiscal year 2015 to the commissioner of 
20.14 	human services to supplement the ongoing 
20.15 	operational expenses of the Commission 
20.16 	of Deaf, DeafBlind, and Hard-of-Hearing 
20.17 	Minnesotans;
20.18 	(2) $290,000 in fiscal year 2014 and $290,000 
20.19 	in fiscal year 2015 to the chief information 
20.20 	officer for the purpose of coordinating 
20.21 	technology accessibility and usability; and
20.22 	(3) $150,000 in fiscal year 2014 and $150,000 
20.23 	in fiscal year 2015 to the Legislative 
20.24 	Coordinating Commission for captioning of 
20.25 	legislative coverage and for a consolidated 
20.26 	access fund for other state agencies. These 
20.27 	transfers are subject to Minnesota Statutes, 
20.28 	section 16A.281.

20.29 	ARTICLE 4
20.30 	ECONOMIC DEVELOPMENT AND WORKFORCE DEVELOPMENT

20.31 	Section 1. [116J.394] DEFINITIONS.
20.32 	(a) For the purposes of sections 116J.394 to 116J.396, the following terms have 
20.33 	the meanings given them.
21.1 	(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, 
21.2 	subdivision 1, paragraph (b).
21.3 	(c) "Broadband infrastructure" means networks of deployed telecommunications 
21.4 	equipment and technologies necessary to provide high-speed Internet access and other 
21.5 	advanced telecommunications services for end users.
21.6 	(d) "Commissioner" means the commissioner of employment and economic 
21.7 	development.
21.8 	(e) "Last-mile infrastructure" means broadband infrastructure that serves as the 
21.9 	final leg connecting the broadband service provider's network to the end-use customer's 
21.10 	on-premises telecommunications equipment.
21.11 	(f) "Middle-mile infrastructure" means broadband infrastructure that links a 
21.12 	broadband service provider's core network infrastructure to last-mile infrastructure.
21.13 	(g) "Political subdivision" means any county, city, town, school district, special 
21.14 	district or other political subdivision, or public corporation.
21.15 	(h) "Underserved areas" means areas of Minnesota in which households or businesses 
21.16 	lack access to wire-line broadband service at speeds that meet the state broadband goals of 
21.17 	ten to 20 megabits per second download and five to ten megabits per second upload.
21.18 	(i) "Unserved areas" means areas of Minnesota in which households or businesses 
21.19 	lack access to wire-line broadband service at speeds that meet a Federal Communications 
21.20 	Commission threshold of four megabits per second download and one megabit per second 
21.21 	upload.

21.22 	Sec. 2. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT 
21.23 	GRANT PROGRAM.
21.24 		Subdivision 1.Establishment. A grant program is established under the Department 
21.25 	of Employment and Economic Development to award grants to eligible applicants in order 
21.26 	to promote the expansion of access to broadband service in unserved or underserved 
21.27 	areas of the state.
21.28 		Subd. 2.Eligible expenditures. Grants may be awarded under this section to fund 
21.29 	the acquisition and installation of middle-mile and last-mile infrastructure that support 
21.30 	broadband service scalable to speeds of at least 100 megabits per second download and 
21.31 	100 megabits per second upload.
21.32 		Subd. 3.Eligible applicants. Eligible applicants for grants awarded under this 
21.33 	section include:
21.34 	(1) an incorporated business or a partnership;
21.35 	(2) a political subdivision;
22.1 	(3) an Indian tribe;
22.2 	(4) a Minnesota nonprofit organization organized under chapter 317A;
22.3 	(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
22.4 	(6) a Minnesota limited liability corporation organized under chapter 322B for the 
22.5 	purpose of expanding broadband access.
22.6 		Subd. 4.Application process. An eligible applicant must submit an application 
22.7 	to the commissioner on a form prescribed by the commissioner. The commissioner shall 
22.8 	develop administrative procedures governing the application and grant award process. 
22.9 	The commissioner shall act as fiscal agent for the grant program and shall be responsible 
22.10 	for receiving and reviewing grant applications and awarding grants under this section.
22.11 		Subd. 5.Application contents. An applicant for a grant under this section shall 
22.12 	provide the following information on the application:
22.13 	(1) the location of the project;
22.14 	(2) the kind and amount of broadband infrastructure to be purchased for the project;
22.15 	(3) evidence regarding the unserved or underserved nature of the community in 
22.16 	which the project is to be located;
22.17 	(4) the number of households passed that will have access to broadband service as a 
22.18 	result of the project, or whose broadband service will be upgraded as a result of the project;
22.19 	(5) significant community institutions that will benefit from the proposed project;
22.20 	(6) evidence of community support for the project;
22.21 	(7) the total cost of the project;
22.22 	(8) sources of funding or in-kind contributions for the project that will supplement 
22.23 	any grant award; and
22.24 	(9) any additional information requested by the commissioner.
22.25 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
22.26 	commissioner shall give priority to applications that are constructed in areas identified by 
22.27 	the director of the Office of Broadband Development as unserved.
22.28 	(b) In evaluating applications and awarding grants, the commissioner may give 
22.29 	priority to applications that:
22.30 	(1) are constructed in areas identified by the director of the Office of Broadband 
22.31 	Development as underserved;
22.32 	(2) offer new or substantially upgraded broadband service to important community 
22.33 	institutions including, but not limited to, libraries, educational institutions, public safety 
22.34 	facilities, and healthcare facilities;
22.35 	(3) facilitate the use of telemedicine and electronic health records;
23.1 	(4) serve economically distressed areas of the state, as measured by indices of 
23.2 	unemployment, poverty, or population loss that are significantly greater than the statewide 
23.3 	average;
23.4 	(5) provide technical support and train residents, businesses, and institutions in the 
23.5 	community served by the project to utilize broadband service;
23.6 	(6) include a component to actively promote the adoption of the newly available 
23.7 	broadband services in the community;
23.8 	(7) provide evidence of strong support for the project from citizens, government, 
23.9 	businesses, and institutions in the community;
23.10 	(8) provide access to broadband service to a greater number of unserved or 
23.11 	underserved households and businesses; or
23.12 	(9) leverage greater amounts of funding for the project from other private and 
23.13 	public sources.
23.14 	(c) The commissioner shall endeavor to award grants under this section to qualified 
23.15 	applicants in all regions of the state.

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

23.17 	Sec. 3. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
23.18 		Subdivision 1.Account established. The border-to-border broadband fund account 
23.19 	is established as a separate account in the special revenue fund in the state treasury. The 
23.20 	commissioner shall credit to the account appropriations and transfers to the account. 
23.21 	Earnings, such as interest, dividends, and any other earnings arising from assets of the 
23.22 	account, must be credited to the account. Funds remaining in the account at the end of a 
23.23 	fiscal year are not canceled to the general fund, but remain in the account until expended. 
23.24 	The commissioner shall manage the account.
23.25 		Subd. 2.Expenditures. Money in the account may be used only:
23.26 	(1) for grant awards made under section 116J.395, including up to three percent of 
23.27 	the total amount appropriated for grants awarded under that section for costs incurred by 
23.28 	the Department of Employment and Economic Development to administer that section; or
23.29 	(2) to supplement revenues raised by bonds sold by local units of government for 
23.30 	broadband infrastructure development.
23.31 		Subd. 3.Restrictions. (a) Except as provided in paragraph (c), in any fiscal year, no 
23.32 	more than one-third of the funds expended from the account established in this section 
23.33 	shall be awarded to applicants located in areas whose household density exceeds 100 
23.34 	households per square mile, as determined by the state demographer.
24.1 	(b) Except as provided in paragraph (c), in any fiscal year, no more than two-thirds 
24.2 	of the funds expended from the account established in this section shall be awarded to 
24.3 	applicants located in areas whose household density is less than 100 households per square 
24.4 	mile, as determined by the state demographer.
24.5 	(c) If applications are insufficient to exhaust all funds available in a given grant 
24.6 	round under the restrictions imposed in paragraph (a) or (b), the unexpended funds may 
24.7 	be awarded to eligible applicants, as determined by the commissioner, irrespective of the 
24.8 	population density of the area in which the applicant is located.
24.9 		Subd. 4.Appropriation. Money in the account is appropriated to the commissioner 
24.10 	for the purposes of subdivision 2.

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

24.12 	Sec. 4. [116J.886] CITATION; REGENERATIVE MEDICINE DEVELOPMENT 
24.13 	ACT.
24.14 	Sections 116J.886 to 116J.8862 shall be known as the Regenerative Medicine 
24.15 	Development Act to promote private sector investment in regenerative medicine to 
24.16 	strengthen the state's economy, reduce the long-term costs related to treating debilitating 
24.17 	illnesses, advance the regenerative medicine industry, and facilitate and expand clinical 
24.18 	research opportunities in the state.

24.19 	Sec. 5. [116J.8861] DEFINITIONS.
24.20 		Subdivision 1.Definitions. For the purposes of sections 116J.886 to 116J.8862, the 
24.21 	following terms have the meanings given them.
24.22 		Subd. 2.Business development services. "Business development services" 
24.23 	means business incubator services and services to facilitate access to existing publicly 
24.24 	or privately financed grants, loans, or loan guarantees, and to support basic or applied 
24.25 	research, development of therapies, and development of pharmacologies and treatments 
24.26 	through preclinical or clinical trials.
24.27 		Subd. 3.Commissioner. "Commissioner" means the commissioner of employment 
24.28 	and economic development.
24.29 		Subd. 4.Office. "Office" means the Office of Regenerative Medicine Development 
24.30 	established under section 116J.8862.
24.31 		Subd. 5.Regenerative medicine. "Regenerative medicine" means the process of 
24.32 	creating or using living, functional tissue to augment, repair, replace, or regenerate organs 
24.33 	and tissue that have been damaged by disease, injury, aging, or other biological processes.
25.1 		Subd. 6.Regenerative medicine development project or project. "Regenerative 
25.2 	medicine development project" or "project" means any research, product development, 
25.3 	or commercial venture relating to basic, preclinical, or clinical work to produce a drug, 
25.4 	biological or chemical material, compound, or medical device designed to augment, 
25.5 	repair, replace, or regenerate organs and tissue that have been damaged by disease, injury, 
25.6 	aging, or other biological processes.

25.7 	Sec. 6. [116J.8862] OFFICE OF REGENERATIVE MEDICINE 
25.8 	DEVELOPMENT.
25.9 		Subdivision 1.Established. The commissioner shall establish an Office of 
25.10 	Regenerative Medicine Development to provide business development services and 
25.11 	outreach to promote and expand the regenerative medicine industry in Minnesota.
25.12 		Subd. 2.Consultation. The office must regularly consult with external stakeholders, 
25.13 	and must conduct public meetings to gather input. For the purposes of this section, 
25.14 	external stakeholders must include:
25.15 	(1) the director of the Minnesota Stem Cell Institute at the University of Minnesota;
25.16 	(2) a representative of a Minnesota-based trade association with the largest number 
25.17 	of bioscience companies as its membership;
25.18 	(3) a representative of a Minnesota-based trade association with the largest number 
25.19 	of hospitals as its membership; and
25.20 	(4) a representative of the largest private entity in Minnesota conducting research 
25.21 	into the benefits and uses of regenerative medicine.
25.22 		Subd. 3.Outside funding. The commissioner, on behalf of the office, may accept 
25.23 	appropriations, gifts, grants, and bequests.
25.24 		Subd. 4.Public infrastructure grant program. The commissioner shall coordinate 
25.25 	the services and activities of the office with the innovative business development public 
25.26 	infrastructure program under section 116J.435. 
25.27 		Subd. 5.Fiscal planning. By December 15, 2014, the commissioner shall develop a 
25.28 	long-term budget proposal for the office for fiscal years 2016 to 2024 to provide business 
25.29 	development services to regenerative medicine development projects. 
25.30 		Subd. 6.Project applications; selection. (a) The office shall provide business 
25.31 	development services to eligible regenerative medicine development projects approved by 
25.32 	the commissioner. To be eligible for business development services under this section, a 
25.33 	regenerative medicine development project must: 
25.34 	(1) demonstrate that at least 70 percent of the project costs are paid from nonstate 
25.35 	sources. The nonstate share may include federal funds and the prior purchase of scientific 
26.1 	equipment and materials incidental to the project, provided the purchase is completed not 
26.2 	more than two years prior to the approval of funding by the commissioner;
26.3 	(2) not duplicate or supplant any other research or other project already conducted 
26.4 	by the federal government, or for which federal funding is available; and 
26.5 	(3) demonstrate that project activities are carried out directly by the grant recipient.
26.6 	(b) The commissioner shall establish an application and process for approving 
26.7 	projects. Project applications must include the following information:
26.8 	(1) evidence that the required match is available and committed;
26.9 	(2) a detailed estimate, along with necessary supporting evidence, of the total cost 
26.10 	of the project;
26.11 	(3) an assessment of the potential to attract new or continue existing public and 
26.12 	private research grant awards resulting from the project;
26.13 	(4) a detailed risk analysis projecting the likelihood of clinical success resulting in 
26.14 	revenues or royalty payments from the project;
26.15 	(5) an assessment of the likelihood for and potential cost savings for publicly 
26.16 	funded health care and long-term care programs from the project as a result of reducing 
26.17 	the incidence or lowering the treatment costs of debilitating illnesses and diseases over 
26.18 	the next ten years;
26.19 	(6) a timeline indicating the major milestones of research projects and their 
26.20 	anticipated completion dates, including any previously completed similar research; and
26.21 	(7) an estimate of any potential current and future employment opportunities 
26.22 	within the state, stimulation of economic growth, and the possibility for advancing the 
26.23 	development of commercially successful and affordable regenerative medicine products, 
26.24 	processes, or services. The application requirements are not in priority order and the 
26.25 	commissioner may weigh each item, depending upon the facts and circumstances, as 
26.26 	the commissioner considers appropriate.
26.27 		Subd. 7.Report. The commissioner, on behalf of the office, must report to the 
26.28 	legislative chairs with jurisdiction over economic development by January 1 of each 
26.29 	odd-numbered year on successful economic development projects implemented or 
26.30 	initiated since their last report and on plans for the upcoming year.
26.31 		Subd. 8.Sunset. The office established under this section expires June 30, 2024.

26.32 	Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
26.33 	116L.98 WORKFORCE PROGRAM OUTCOMES.
26.34 		Subdivision 1.Requirements. The commissioner shall develop and implement a 
26.35 	set of standard approaches for assessing the outcomes of workforce programs under this 
27.1 	chapter. The outcomes assessed must include, but are not limited to, periodic comparisons 
27.2 	of workforce program participants and nonparticipants uniform outcome measurement 
27.3 	and reporting system for adult workforce-related programs funded in whole or in part by 
27.4 	the workforce development fund.
27.5 	The commissioner shall also monitor the activities and outcomes of programs and 
27.6 	services funded by legislative appropriations and administered by the department on a 
27.7 	pass-through basis and develop a consistent and equitable method of assessing recipients 
27.8 	for the costs of its monitoring activities.
27.9 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in 
27.10 	this subdivision have the meanings given.
27.11 	(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates 
27.12 	awarded in recognition of an individual's attainment of measurable technical or 
27.13 	occupational skills necessary to obtain employment or advance with an occupation. 
27.14 	This definition does not include certificates awarded by workforce investment boards or 
27.15 	work-readiness certificates.
27.16 	(c) "Exit" means to have not received service under a workforce program for 90 
27.17 	consecutive calendar days. The exit date is the last date of service.
27.18 	(d) "Net impact" means the use of matched control groups and regression analysis to 
27.19 	estimate the impacts attributable to program participation net of other factors, including 
27.20 	observable personal characteristics and economic conditions.
27.21 	(e) "Pre-enrollment" means the period of time before an individual was enrolled 
27.22 	in a workforce program.
27.23 		Subd. 3.Uniform outcome report card; reporting by commissioner. (a) By 
27.24 	December 31 of each even-numbered year, the commissioner must report to the chairs 
27.25 	and ranking minority members of the committees of the house of representatives and the 
27.26 	senate having jurisdiction over economic development and workforce policy and finance 
27.27 	the following information separately for each of the previous two fiscal or calendar years, 
27.28 	for each program subject to the requirements of subdivision 1:
27.29 	(1) the total number of participants enrolled;
27.30 	(2) the median pre-enrollment wages based on participant wages for the second 
27.31 	through the fifth calendar quarters immediately preceding the quarter of enrollment 
27.32 	excluding those with zero income;
27.33 	(3) the total number of participants with zero income in the second through fifth 
27.34 	calendar quarters immediately preceding the quarter of enrollment;
27.35 	(4) the total number of participants enrolled in training;
27.36 	(5) the total number of participants enrolled in training by occupational group;
28.1 	(6) the total number of participants that exited the program and the average 
28.2 	enrollment duration of participants that have exited the program during the year;
28.3 	(7) the total number of exited participants who completed training;
28.4 	(8) the total number of exited participants who attained a credential;
28.5 	(9) the total number of participants employed during three consecutive quarters 
28.6 	immediately following the quarter of exit, by industry;
28.7 	(10) the median wages of participants employed during three consecutive quarters 
28.8 	immediately following the quarter of exit;
28.9 	(11) the total number of participants employed during eight consecutive quarters 
28.10 	immediately following the quarter of exit, by industry; and
28.11 	(12) the median wages of participants employed during eight consecutive quarters 
28.12 	immediately following the quarter of exit.
28.13 	(b) The report to the legislature must contain participant information by education 
28.14 	level, race and ethnicity, gender, and geography, and a comparison of exited participants 
28.15 	who completed training and those who did not.
28.16 	(c) The requirements of this section apply to programs administered directly by the 
28.17 	commissioner or administered by other organizations under a grant made by the department.
28.18 		Subd. 4.Data to commissioner; uniform report card. (a) A recipient of a future 
28.19 	or past grant or direct appropriation made by or through the department must report data 
28.20 	to the commissioner by September 1 of each even-numbered year on each of the items in 
28.21 	subdivision 3 for each program it administers except wages and number employed, which 
28.22 	the department shall provide. The data must be in a format prescribed by the commissioner.
28.23 	(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants 
28.24 	and recipients regarding the data collection and reporting requirements under this 
28.25 	subdivision and must provide technical assistance to applicants and recipients to assist 
28.26 	in complying with the requirements of this subdivision.
28.27 		Subd. 5.Information. The information collected and reported under subdivisions 3 
28.28 	and 4 shall be made available on the department's Web site.
28.29 		Subd. 6.Limitations on future appropriations. (a) A program that is a recipient 
28.30 	of public funds and subject to the requirements of this section as of May 1, 2014, is not 
28.31 	eligible for additional state appropriations for any fiscal year beginning after June 30, 
28.32 	2015, unless all of the reporting requirements under subdivision 4 have been satisfied.
28.33 	(b) A program with an initial request for funds on or after the effective date of this 
28.34 	section may be considered for receipt of public funds for the first two fiscal years only 
28.35 	if a plan that demonstrates how the data collection and reporting requirements under 
28.36 	subdivision 4 will be met has been submitted and approved by the commissioner. Any 
29.1 	subsequent request for funds after an initial request is subject to the requirements of 
29.2 	paragraph (a).
29.3 		Subd. 7.Workforce program net impact analysis. (a) The commissioner 
29.4 	shall contract with an independent entity to conduct a net impact analysis for adult 
29.5 	workforce-related programs funded in whole or in part by the workforce development 
29.6 	fund. The requirements of this section apply to programs administered directly by the 
29.7 	commissioner or administered by other employment organizations under a grant made by 
29.8 	the department. The net impact methodology used by the independent entity should be 
29.9 	based on the methodology and evaluation design used in paragraph (c) and must include:
29.10 	(1) standardized statistical methods for estimating the net impacts of workforce 
29.11 	services on individual employment, earnings, incarceration avoidance where appropriate, 
29.12 	and public benefits usage outcomes; and
29.13 	(2) standardized cost-benefit analysis for understanding the monetary impacts of 
29.14 	workforce services from the participant and taxpayer points of view.
29.15 	(b) By January 15 of the odd year of every other biennium, the commissioner must 
29.16 	report to the chairs and ranking minority members of the committees of the house of 
29.17 	representatives and senate having jurisdiction over economic development and workforce 
29.18 	policy and finance the following information for each program subject to this subdivision:
29.19 	(1) the net impact of workforce services on individual employment, earnings, and 
29.20 	public benefits usage outcomes; and
29.21 	(2) cost-benefit analyses for understanding the monetary impacts of workforce 
29.22 	services from the participant and taxpayer points of view. The report must be made 
29.23 	available to the public in an electronic format on the Department of Employment and 
29.24 	Economic Development's Web site.
29.25 	The department is authorized to create and maintain data-sharing agreements with 
29.26 	other departments, including corrections, human services, and any other department that 
29.27 	are necessary to complete the analysis. The department shall supply the information 
29.28 	collected for use by the independent entity conducting net impact analysis pursuant to the 
29.29 	data practices requirements under chapters 13, 13A, 13B, and 13C.
29.30 	(c) By January 15, 2015, the commissioner, in partnership with the Governor's 
29.31 	Workforce Development Council, must report to the chairs and ranking minority members 
29.32 	of the committees of the house of representatives and senate having jurisdiction over 
29.33 	economic development and workforce policy and finance the results of the net impact 
29.34 	pilot project already underway.

30.1 	Sec. 8. Minnesota Statutes 2012, section 181A.07, is amended by adding a subdivision 
30.2 	to read:
30.3 		Subd. 7.Approved training programs. The commissioner may grant exemptions 
30.4 	from any provisions of sections 181A.01 to 181A.12 for minors participating in training 
30.5 	programs approved by the commissioner; or students in a valid apprenticeship program 
30.6 	taught by or required by a trade union, the commissioner of education, the commissioner 
30.7 	of employment and economic development, the Board of Trustees of the Minnesota State 
30.8 	Colleges and Universities, or the Board of Regents of the University of Minnesota.

30.9 	Sec. 9. INNOVATION VOUCHER PILOT PROGRAM.
 30.10 	(a) The commissioner of employment and economic development shall develop and 
30.11 	implement an innovation voucher pilot program to provide financing to small businesses 
30.12 	to purchase technical assistance and services from public higher education institutions 
30.13 	and nonprofit entities to assist in the development or commercialization of innovative 
30.14 	new products or services.
30.15 	(b) Funds available under this section may be used by a small business to access 
30.16 	technical assistance and other services including, but not limited to: research, technical 
30.17 	development, product development, commercialization, technology exploration, and 
30.18 	improved business practices.
30.19 	(c) To be eligible for a voucher under this section, a business must enter into an 
30.20 	agreement with the commissioner that includes:
30.21 	(1) a list of the technical assistance and services the business proposes to purchase 
30.22 	and from whom the services will be purchased; and 
30.23 	(2) deliverable outcomes in one of the following areas:
30.24 	(i) research and development;
30.25 	(ii) business model development;
30.26 	(iii) market feasibility;
30.27 	(iv) operations; or
30.28 	(v) other outcomes determined by the commissioner.
30.29 	As part of the agreement, the commissioner must approve the technical assistance and 
30.30 	services to be purchased, and the entities from which the services or technical assistance 
30.31 	will be purchased.
30.32 	(d) For the purposes of this section, a small business means a business with fewer 
30.33 	than 25 employees.
30.34 	(e) A voucher award must not exceed $25,000 per business.
31.1 	(f) The commissioner must report to the chairs of the committees of the house of 
31.2 	representatives and senate having jurisdiction over economic development and workforce 
31.3 	policy and finance issues by December 1, 2014, on the vouchers awarded to date.

31.4 	Sec. 10. COMMISSIONER'S ACCOUNTABILITY PLAN.
 31.5 	By December 1, 2014, the commissioner shall report to the committees of the 
31.6 	house of representatives and senate having jurisdiction over workforce development 
31.7 	and economic development policy and finance issues, on the department's plan, and any 
31.8 	request for funding, to design and implement a performance accountability outcome 
31.9 	measurement system for programs under Minnesota Statutes, chapters 116J and 116L.

31.10 	Sec. 11. NEW EMPLOYEE TRAINING PARTNERSHIP.
 31.11 		Subdivision 1.Training partnership initiative. (a) The commissioner of 
31.12 	employment and economic development shall develop and implement a new employee 
31.13 	training partnership to provide rebates to employers that hire and train new employees. To 
31.14 	be eligible for a rebate under this section, an employer must enter into an agreement with 
31.15 	the commissioner under subdivision 3. The commissioner shall give priority to employers 
31.16 	in counties in which the county unemployment rate over the preceding 12 months exceeded 
31.17 	the state average unemployment rate by 1.5 percentage points over the same period. 
31.18 	(b) Before entering into an agreement with an employer, the commissioner must 
31.19 	investigate the applicability of other training programs and determine whether the job skills 
31.20 	partnership grant program is a more suitable source of funding for the training and whether 
31.21 	the training can be completed in a timely manner that meets the needs of the employer.
31.22 	The investigation must be completed within 15 days or as soon as reasonably possible 
31.23 	after the employer has provided the commissioner with all the requested information.
31.24 	(c) The commissioner shall prescribe the form of all applications for rebates, the 
31.25 	timing for submission of applications, the execution of agreements with the commissioner, 
31.26 	and the payment of rebates.
31.27 		Subd. 2.Definitions. (a) For the purposes of this section, the terms in this 
31.28 	subdivision have the meanings given.
31.29 	(b) "Agreement" means the agreement between an employer and the commissioner 
31.30 	for a training partnership.
31.31 	(c) "Commissioner" means the commissioner of employment and economic 
31.32 	development.
32.1 	(d) "Cost of training" means all necessary and incidental costs of providing training 
32.2 	services. The term does not include the cost of purchasing equipment to be owned or used 
32.3 	by the training or educational institution or service.
32.4 	(e) "Disability" has the meaning given under United States Code, title 42, chapter 126.
32.5 	(f) "Employee" means an individual employed in a new job.
32.6 	(g) "Employer" means an individual, corporation, partnership, limited liability 
32.7 	company, or association providing new jobs and entering into an agreement.
32.8 	(h) "Long-term unemployed" has the meaning given by the United States Department 
32.9 	of Labor, Bureau of Labor Standards.
32.10 	(i) "New job" means a job:
32.11 	(1) that is provided by a new or expanding business at a location outside of the 
32.12 	metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2;
32.13 	(2) that provides 32 hours of work per week for a minimum of nine months of the 
32.14 	year and is permanent with no planned termination date; and
32.15 	(3) for which the employee hired was not (i) formerly employed by the employer 
32.16 	in the state or (ii) a replacement worker, including a worker newly hired as a result of a 
32.17 	labor dispute.
32.18 	(j) "Rebate" means a payment by the commissioner to an employer for the cost 
32.19 	of training an employee. Rebates are limited to a maximum of $3,000 per employee, 
32.20 	except that the maximum rebate for the training costs of an employee with a disability, an 
32.21 	employee who was considered long-term unemployed, or an employee who is a veteran, 
32.22 	is $4,000 per employee.
32.23 	(k) "Training partnership" means a training services and rebate arrangement that is 
32.24 	the subject of an agreement entered into between the commissioner and an employer.
32.25 	(l) "Training services" means training and education specifically directed to new 
32.26 	jobs, determined to be appropriate by the commissioner, including in-house training; 
32.27 	services provided by institutions of higher education, or federal, state, or local agencies; or 
32.28 	private training or educational services. Administrative services, assessment, and testing 
32.29 	costs may be considered as training services.
32.30 		Subd. 3.Agreements; required terms. To be eligible for a rebate under this 
32.31 	section, an employer must enter into an agreement with the commissioner that:
32.32 	(1) identifies the training costs to be incurred by the employer, who will provide the 
32.33 	training services, and the amount of the rebate to be provided by the commissioner;
32.34 	(2) provides for a guarantee by the employer of payment for all training costs; and
32.35 	(3) provides that each employee must be paid wages of at least $13 per hour, plus 
32.36 	benefits, except that during a period not to exceed three weeks, during which an employee 
33.1 	is receiving training services, the employee may be paid wages of at least $11 per hour, 
33.2 	plus benefits.
33.3 		Subd. 4.Verification prior to payment of rebate. The commissioner shall not 
33.4 	pay any rebate until all training costs and payment of the training costs by the employer 
33.5 	have been verified.
33.6 		Subd. 5.Allocation. (a) The commissioner shall allocate payment for rebates 
33.7 	to employers only after receipt of a complete application for the rebate, including the 
33.8 	provision of all of the required information and the execution of an agreement and 
33.9 	approval by the commissioner. In approving applications, the commissioner must give 
33.10 	priority to employers in counties with high seasonally adjusted unemployment rates.
33.11 	(b) The commissioner may utilize existing on-the-job training rebate or payment 
33.12 	processes or procedures.
33.13 		Subd. 6.Report. By February 1, 2015, the commissioner shall report to the 
33.14 	committees of the house of representatives and the senate having jurisdiction over economic 
33.15 	development policy and finance. The report must include the following information:
33.16 	(1) the total amount of rebates issued;
33.17 	(2) the number of individuals receiving training, including disaggregate data 
33.18 	for employees who are individuals with disabilities, veterans, or who were long-term 
33.19 	unemployed;
33.20 	(3) an analysis of the effectiveness of the rebate in encouraging employment; and
33.21 	(4) any other information the commissioner determines appropriate.

33.22 	Sec. 12. PILOT PROGRAMS; PRECISION MANUFACTURING AND HEALTH 
33.23 	CARE SERVICES.
 33.24 	The commissioner of labor and industry shall establish pilot programs to develop 
33.25 	competency standards for apprenticeship programs in precision manufacturing and health 
33.26 	care services. The pilot programs shall be administered by the registered apprenticeship 
33.27 	program within the Department of Labor and Industry. In establishing the pilot programs, 
33.28 	the commissioner may convene recognized industry experts and representative employers 
33.29 	to assist in defining credible competency standards acceptable to the information 
33.30 	technology and health care services industries.

33.31 	Sec. 13. PILOT PROGRAM; INFORMATION TECHNOLOGY.
 33.32 	The commissioner of employment and economic development shall establish a pilot 
33.33 	program to develop competency standards for an information technology apprenticeship 
33.34 	program. In establishing the pilot program, the commissioner may convene recognized 
34.1 	industry experts and representative employers to define credible competency standards 
34.2 	acceptable to the information technology industry.

34.3 	Sec. 14. OUTCOMES.
 34.4 	The outcomes expected from each of the pilot programs listed in sections 12 and 
34.5 	13 include:
34.6 	(1) establishment of competency standards for entry level and at least two additional 
34.7 	higher skill levels for apprenticeship training in each industry;
34.8 	(2) verification of competency standards and skill levels and their transferability by 
34.9 	representatives of each respective industry;
34.10 	(3) clarification of ways for Minnesota educational institutions to engage in 
34.11 	providing training to meet the competency standards established; and
34.12 	(4) participation from the identified industry sectors.

34.13 	Sec. 15.  REPEALER.
 34.14 	Minnesota Statutes 2012, section 116J.997, is repealed.

34.15 	ARTICLE 5
34.16 	WORKERS' COMPENSATION

34.17 	Section 1. Minnesota Statutes 2013 Supplement, section 176.011, subdivision 15, 
34.18 	is amended to read:
34.19 		Subd. 15.Occupational disease. (a) "Occupational disease" means a mental 
34.20 	impairment as defined in paragraph (d) or physical disease arising out of and in the 
34.21 	course of employment peculiar to the occupation in which the employee is engaged 
34.22 	and due to causes in excess of the hazards ordinary of employment and shall include 
34.23 	undulant fever. Physical stimulus resulting in mental injury and mental stimulus resulting 
34.24 	in physical injury shall remain compensable. Mental impairment is not considered a 
34.25 	disease if it results from a disciplinary action, work evaluation, job transfer, layoff, 
34.26 	demotion, promotion, termination, retirement, or similar action taken in good faith by the 
34.27 	employer. Ordinary diseases of life to which the general public is equally exposed outside 
34.28 	of employment are not compensable, except where the diseases follow as an incident of an 
34.29 	occupational disease, or where the exposure peculiar to the occupation makes the disease 
34.30 	an occupational disease hazard. A disease arises out of the employment only if there be a 
34.31 	direct causal connection between the conditions under which the work is performed and 
34.32 	if the occupational disease follows as a natural incident of the work as a result of the 
34.33 	exposure occasioned by the nature of the employment. An employer is not liable for 
35.1 	compensation for any occupational disease which cannot be traced to the employment as a 
35.2 	direct and proximate cause and is not recognized as a hazard characteristic of and peculiar 
35.3 	to the trade, occupation, process, or employment or which results from a hazard to which 
35.4 	the worker would have been equally exposed outside of the employment.
35.5 	(b) If immediately preceding the date of disablement or death, an employee was 
35.6 	employed on active duty with an organized fire or police department of any municipality, 
35.7 	as a member of the Minnesota State Patrol, conservation officer service, state crime bureau, 
35.8 	as a forest officer by the Department of Natural Resources, state correctional officer, or 
35.9 	sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis, 
35.10 	coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee 
35.11 	was given a thorough physical examination by a licensed doctor of medicine, and a written 
35.12 	report thereof has been made and filed with such organized fire or police department, with 
35.13 	the Minnesota State Patrol, conservation officer service, state crime bureau, Department 
35.14 	of Natural Resources, Department of Corrections, or sheriff's department of any county, 
35.15 	which examination and report negatived any evidence of myocarditis, coronary sclerosis, 
35.16 	pneumonia or its sequel, the disease is presumptively an occupational disease and shall 
35.17 	be presumed to have been due to the nature of employment. If immediately preceding 
35.18 	the date of disablement or death, any individual who by nature of their position provides 
35.19 	emergency medical care, or an employee who was employed as a licensed police officer 
35.20 	under section 626.84, subdivision 1; firefighter; paramedic; state correctional officer; 
35.21 	emergency medical technician; or licensed nurse providing emergency medical care; and 
35.22 	who contracts an infectious or communicable disease to which the employee was exposed 
35.23 	in the course of employment outside of a hospital, then the disease is presumptively an 
35.24 	occupational disease and shall be presumed to have been due to the nature of employment 
35.25 	and the presumption may be rebutted by substantial factors brought by the employer 
35.26 	or insurer. Any substantial factors which shall be used to rebut this presumption and 
35.27 	which are known to the employer or insurer at the time of the denial of liability shall be 
35.28 	communicated to the employee on the denial of liability.
35.29 	(c) A firefighter on active duty with an organized fire department who is unable 
35.30 	to perform duties in the department by reason of a disabling cancer of a type caused 
35.31 	by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the 
35.32 	International Agency for Research on Cancer, and the carcinogen is reasonably linked to 
35.33 	the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a 
35.34 	firefighter who enters the service after August 1, 1988, is examined by a physician prior to 
35.35 	being hired and the examination discloses the existence of a cancer of a type described 
36.1 	in this paragraph, the firefighter is not entitled to the presumption unless a subsequent 
36.2 	medical determination is made that the firefighter no longer has the cancer.
36.3 	(d) For the purposes of this chapter, "mental impairment" means a diagnosis of 
36.4 	post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes 
36.5 	of this chapter, "post-traumatic stress disorder" means the condition as described in 
36.6 	the most recently published edition of the Diagnostic and Statistical Manual of Mental 
36.7 	Disorders by the American Psychiatric Association. For purposes of section 79.34, 
36.8 	subdivision 2, one or more compensable mental impairment claims arising out of a single 
36.9 	event or occurrence shall constitute a single loss occurrence.

36.10 	EFFECTIVE DATE. This section is effective for employees with dates of injury on 
36.11 	or after October 1, 2013.

36.12 	Sec. 2. Minnesota Statutes 2012, section 176.129, subdivision 2a, is amended to read:
36.13 		Subd. 2a.Payments to fund. (a) On or before April 1 of each year, all self-insured 
36.14 	employers shall report paid indemnity losses and insurers shall report paid indemnity 
36.15 	losses and standard workers' compensation premium in the form and manner prescribed 
36.16 	by the commissioner. On June 1 of each year, the commissioner shall determine the 
36.17 	total amount needed to pay all estimated liabilities, including administrative expenses, 
36.18 	of the special compensation fund for the following fiscal year. The commissioner shall 
36.19 	assess this amount against self-insured employers and insurers. The total amount of the 
36.20 	assessment must be allocated between self-insured employers and insured employers 
36.21 	based on paid indemnity losses for the preceding calendar year, as provided by paragraph 
36.22 	(b). The method of assessing self-insured employers must be based on paid indemnity 
36.23 	losses, as provided by paragraph (c). The method of assessing insured employers is based 
36.24 	on standard workers' compensation premium, as provided by paragraph (c). Each insurer 
36.25 	shall collect the assessment through a policyholder surcharge as provided by paragraph 
36.26 	(d). On or before June 30 of each year, the commissioner shall provide notification to each 
36.27 	self-insured employer and insurer of amounts due. Each self-insured employer and each 
36.28 	insurer shall pay at least one-half of the amount due to the commissioner for deposit into 
36.29 	the special compensation fund on or before August 1 of the same calendar year. The 
36.30 	remaining balance is due on February 1 of the following calendar year. Each insurer must 
36.31 	pay the full amount due as stated in the commissioner's notification, regardless of the 
36.32 	amount the insurer actually collects from the premium policyholder surcharge.
36.33 	(b) The portion of the total assessment that is allocated to self-insured employers 
36.34 	is the proportion that paid indemnity losses made by all self-insured employers bore to 
36.35 	the total paid indemnity losses made by all self-insured employers and insured employers 
37.1 	during the preceding calendar year. The portion of the total assessment that is allocated 
37.2 	to insured employers is the proportion that paid indemnity losses made on behalf of 
37.3 	all insured employers bore to the total paid indemnity losses made by all self-insured 
37.4 	employers and insured employers during the preceding calendar year.
37.5 	(c) The portion of the total assessment allocated to self-insured employers that 
37.6 	shall be paid by each self-insured employer must be based upon paid indemnity losses 
37.7 	made by that self-insured employer during the preceding calendar year. The portion of 
37.8 	the total assessment allocated to insured employers that is paid by each insurer must be 
37.9 	based on standard workers' compensation premium earned in the state by that insurer 
37.10 	during the preceding current calendar year. If the current calendar year earned standard 
37.11 	workers' compensation premium is not available, the commissioner shall estimate the 
37.12 	portion of the total assessment allocated to insured employers that is paid by each insurer 
37.13 	using the earned standard workers' compensation premium from the preceding calendar 
37.14 	year. The commissioner shall then perform a reconciliation and final determination of 
37.15 	the portion of the total assessment to be paid by each insurer when the earned standard 
37.16 	workers' compensation premium for the current calendar year is calculable, but the final 
37.17 	determination must not be made after December 1 of the following calendar year. An 
37.18 	employer who has ceased to be self-insured shall continue to be liable for assessments 
37.19 	based on paid indemnity losses arising out of injuries occurring during periods when the 
37.20 	employer was self-insured, unless the self-insured employer has purchased a replacement 
37.21 	policy covering those losses. An insurer who assumes a self-insured employer's obligation 
37.22 	under a replacement policy shall separately report and pay assessments based on indemnity 
37.23 	losses paid by the insurer under the replacement policy. The replacement policy may 
37.24 	provide for reimbursement of the assessment to the insurer by the self-insured employer.
37.25 	(d) Insurers shall collect the assessments from their insured employers through 
37.26 	a surcharge based on standard workers' compensation premium for each employer. 
37.27 	Assessments when collected do not constitute an element of loss for the purpose of 
37.28 	establishing rates for workers' compensation insurance but for the purpose of collection 
37.29 	are treated as separate costs imposed on insured employers. The premium policyholder
37.30 	 surcharge is included in the definition of gross premium as defined in section 297I.01 only 
37.31 	for premium tax purposes. An insurer may cancel a policy for nonpayment of the premium
37.32 	 policyholder surcharge. The premium policyholder surcharge is excluded from the 
37.33 	definition of premium for all other purposes, except as otherwise provided in this paragraph.
37.34 	(e) For purposes of this section, the workers' compensation assigned risk plan 
37.35 	established under section 79.252, shall report and pay assessments on standard workers' 
37.36 	compensation premium in the same manner as an insurer.

38.1 	EFFECTIVE DATE. This section is effective for assessments due under Minnesota 
38.2 	Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February 
38.3 	1, 2014, and for the first reconciliation and final determination under Minnesota Statutes, 
38.4 	section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.

38.5 	Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 7, is amended to read:
38.6 		Subd. 7.Refunds. In case deposit is or has been made pursuant to subdivision 
38.7 	2a by mistake or inadvertence, or under circumstances that justice requires a refund, 
38.8 	the commissioner of management and budget is authorized to refund the deposit under 
38.9 	order of the commissioner, a compensation judge, the Workers' Compensation Court of 
38.10 	Appeals, or a district court. Claims for refunds must be submitted to the commissioner 
38.11 	within three years of the assessment due date of reconciliation and final determination 
38.12 	under subdivision 2a. There is appropriated to the commissioner from the fund an amount 
38.13 	sufficient to make the refund and payment.

38.14 	EFFECTIVE DATE. This section is effective for assessments due under Minnesota 
38.15 	Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February 
38.16 	1, 2014, and for the first reconciliation and final determination under Minnesota Statutes, 
38.17 	section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.

38.18 	Sec. 4. Minnesota Statutes 2012, section 176.135, subdivision 7, is amended to read:
38.19 		Subd. 7.Medical bills and records. (a) Health care providers shall submit to the 
38.20 	insurer an itemized statement of charges in the standard electronic transaction format when 
38.21 	required by section 62J.536 or, if there is no prescribed standard electronic transaction 
38.22 	format, on a billing form prescribed by the commissioner. Health care providers shall also 
38.23 	submit copies of medical records or reports that substantiate the nature of the charge and its 
38.24 	relationship to the work injury. Health care providers may charge for copies of any records 
38.25 	or reports that are in existence and directly relate to the items for which payment is sought 
38.26 	under this chapter. The commissioner shall adopt a schedule of reasonable charges by rule.
38.27 	A health care provider shall not collect, attempt to collect, refer a bill for collection, 
38.28 	or commence an action for collection against the employee, employer, or any other party 
38.29 	until the information required by this section has been furnished.
38.30 	A United States government facility rendering health care services to veterans is not 
38.31 	subject to the uniform billing form requirements of this subdivision.
38.32 	(b) For medical services provided under this section on or after October 1, 
38.33 	2014, the codes from the International Classification of Diseases, Tenth Edition, 
38.34 	Clinical Modification/Procedure Coding System (ICD-10), must be used to report 
39.1 	medical diagnoses and hospital inpatient procedures. The commissioner must replace 
39.2 	the codes from the International Classification of Diseases, Ninth Edition, Clinical 
39.3 	Modification/Procedure Coding System (ICD-9), with equivalent ICD-10 codes wherever 
39.4 	the ICD-9 codes appear in rules adopted under this chapter. The commissioner must use 
39.5 	the General Equivalence Mappings established by the Centers for Medicare and Medicaid 
39.6 	Services to replace the ICD-9 diagnostic codes with ICD-10 codes in the rules.

39.7 	Sec. 5. Minnesota Statutes 2012, section 176.136, subdivision 1a, is amended to read:
39.8 		Subd. 1a.Relative value fee schedule. (a) The liability of an employer for services 
39.9 	included in the medical fee schedule is limited to the maximum fee allowed by the 
39.10 	schedule in effect on the date of the medical service, or the provider's actual fee, whichever 
39.11 	is lower. The commissioner shall adopt permanent rules regulating fees allowable for 
39.12 	medical, chiropractic, podiatric, surgical, and other health care provider treatment or 
39.13 	service, including those provided to hospital outpatients, by implementing a relative value 
39.14 	fee schedule. The commissioner may adopt by reference, according to the procedures in 
39.15 	paragraph (h), clause (2), the relative value fee schedule tables adopted for the federal 
39.16 	Medicare program. The relative value fee schedule must contain reasonable classifications 
39.17 	including, but not limited to, classifications that differentiate among health care provider 
39.18 	disciplines. The conversion factors for the original relative value fee schedule must 
39.19 	reasonably reflect a 15 percent overall reduction from the medical fee schedule most 
39.20 	recently in effect. The reduction need not be applied equally to all treatment or services, 
39.21 	but must represent a gross 15 percent reduction.
39.22 	(b) Effective October 1, 2005, the commissioner shall remove all scaling factors 
39.23 	from the relative value units and establish four separate conversion factors according to 
39.24 	paragraphs (c) and (d) for each of the following parts of Minnesota Rules:
39.25 	(1) medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part 
39.26 	5221.0700, subpart 3, item C, subitem (2);
39.27 	(2) pathology and laboratory services in Minnesota Rules, part 5221.4040, as 
39.28 	defined in part 5221.0700, subpart 3, item C, subitem (3);
39.29 	(3) physical medicine and rehabilitation services in Minnesota Rules, part 
39.30 	5221.4050, as defined in part 5221.0700, subpart 3, item C, subitem (4); and
39.31 	(4) chiropractic services in Minnesota Rules, part 5221.4060, as defined in part 
39.32 	5221.0700, subpart 3, item C, subitem (5).
39.33 	(c) The four conversion factors established under paragraph (b) shall be calculated 
39.34 	so that there is no change in each maximum fee for each service under the current fee 
39.35 	schedule, except as provided in paragraphs (d) and (e).
40.1 	(d) By October 1, 2006, the conversion factor for chiropractic services described in 
40.2 	paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor 
40.3 	for medical/surgical services described in paragraph (b), clause (1). Beginning October 1, 
40.4 	2005, the increase in chiropractic conversion factor shall be phased in over two years by 
40.5 	approximately equal percentage point increases.
40.6 	(e) When adjusting the conversion factors in accordance with paragraph (g) on 
40.7 	October 1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero, 
40.8 	all of the conversion factors as necessary to offset any overall increase in payments under 
40.9 	the fee schedule resulting from the increase in the chiropractic conversion factor.
40.10 	(f) The commissioner shall give notice of the relative value units and conversion 
40.11 	factors established under paragraphs (b), (c), and (d) according to the procedures in section 
40.12 	14.386, paragraph (a). The relative value units and conversion factors established under 
40.13 	paragraphs (b), (c), and (d) are not subject to expiration under section 14.386, paragraph (b).
40.14 	(g) (c) The conversion factors shall be adjusted as follows:
40.15 	(1) After permanent rules have been adopted to implement this section, the conversion 
40.16 	factors must be adjusted annually on October 1 by no more than the percentage change 
40.17 	computed under section 176.645, but without the annual cap provided by that section.
40.18 	(2) Each time the workers' compensation relative value fee schedule tables are 
40.19 	updated under paragraph (h), the commissioner shall adjust the conversion factors so that, 
40.20 	for services in both fee schedules, there is no difference between the overall payment in each 
40.21 	category of service listed in paragraph (b) under the new schedule and the overall payment 
40.22 	for that category under the workers' compensation fee schedule most recently in effect. 
40.23 	This adjustment must be made before making any additional adjustment under clause (1).
40.24 	(h) (d) The commissioner shall give notice of the adjusted conversion factors and 
40.25 	updates to the relative value fee schedule as follows:
40.26 	(1) The commissioner shall annually give notice in the State Register of the adjusted 
40.27 	conversion factors and any amendments to rules to implement Medicare relative value 
40.28 	tables incorporated by reference under this subdivision. The notices of the adjusted 
40.29 	conversion factors and amended rules to implement the relative value tables are subject 
40.30 	to the requirements of section 14.386, paragraph (a). The annual adjustments to the 
40.31 	conversion factors and the medical fee schedules adopted under this section, including all 
40.32 	previous fee schedules, are not subject to expiration under section 14.386, paragraph (b).
40.33 	(2) The commissioner shall periodically, but at least once every three years, update 
40.34 	the workers' compensation relative value tables by incorporating by reference the relative 
40.35 	value tables in the national physician fee schedule relative value file established by the 
40.36 	Centers for Medicare and Medicaid Services. The commissioner shall publish the notices 
41.1 	of the incorporation by reference in the State Register at least 60 days before the tables 
41.2 	are to become effective for purposes of payment under this section. Each notice of 
41.3 	incorporation must state the date the incorporated tables will become effective and must 
41.4 	include information on how the Medicare relative value tables may be obtained. The 
41.5 	published notices of incorporation by reference and the incorporated tables are not rules 
41.6 	subject to section 14.386 or other provisions of chapter 14, but have the force and effect of 
41.7 	law as of the date specified in the notices.

41.8 	Sec. 6. Minnesota Statutes 2012, section 176.231, subdivision 2, is amended to read:
41.9 		Subd. 2.Initial report, written report. Where subdivision 1 requires an injury 
41.10 	to be reported within 48 hours, the employer may make an initial report by telephone, 
41.11 	telegraph, or personal notice, and file a written report of the injury within seven days from 
41.12 	its occurrence or within such time as the commissioner of labor and industry designates. 
41.13 	All written reports of injuries required by subdivision 1 shall include the date of injury. 
41.14 	The reports shall be on a form designed by the commissioner, with a clear copy suitable 
41.15 	for imaging to the commissioner, one copy to the insurer, and one copy to the employee.
41.16 	The employer must give the employee the "Minnesota Workers' Compensation 
41.17 	System Employee Information Sheet" at the time the employee is given a copy of the 
41.18 	first report of injury.
41.19 	If an insurer or self-insurer repeatedly fails to pay benefits within three days of the 
41.20 	due date, pursuant to section 176.221, the insurer or self-insurer shall be ordered by the 
41.21 	commissioner to explain, in person, the failure to pay benefits due in a reasonable time. 
41.22 	If prompt payments are not thereafter made, the commissioner shall refer the insurer or 
41.23 	self-insurer to the commissioner of commerce for action pursuant to section 176.225, 
41.24 	subdivision 4.

41.25 	Sec. 7. Minnesota Statutes 2012, section 176.305, subdivision 1a, is amended to read:
41.26 		Subd. 1a.Settlement and pretrial conferences; summary decision. The chief 
41.27 	administrative law judge shall promptly assign the petition to a compensation judge under 
41.28 	section 176.307, and shall schedule a settlement conference before a compensation judge, 
41.29 	to be held no later than 180 days after a claim petition was filed, or 45 days after a petition 
41.30 	to discontinue, objection to discontinuance, or request for formal hearing was filed.
41.31 	All parties must appear at the settlement conference, either personally or by 
41.32 	representative, must be prepared to discuss settlement of all issues, and must be prepared 
41.33 	to discuss or present the information required by the joint rules of the division and the 
41.34 	office. If a representative appears on behalf of a party, the representative must have 
42.1 	authority to fully settle the matter. The parties shall serve and file a pretrial statement no 
42.2 	fewer than five days before the settlement conference.
42.3 	If settlement is not reached, the chief administrative law judge shall schedule a 
42.4 	hearing to be held within 90 days from the scheduled settlement conference. However, 
42.5 	the hearing must be held earlier than 90 days from the scheduled settlement conference if 
42.6 	this chapter requires an expedited hearing to be held at an earlier date. The hearing must 
42.7 	be held before a compensation judge other than the compensation judge who conducted 
42.8 	the settlement conference. The compensation judge assigned to hold the hearing may 
42.9 	choose to conduct a pretrial conference to clarify the issues and evidence that will be 
42.10 	presented at the hearing.
42.11 	Cancellations and continuations of proceedings are disfavored but may be granted 
42.12 	upon the showing of good cause under section 176.341, subdivision 4.
42.13 	The compensation judge conducting the settlement conference may require the 
42.14 	parties to present copies of all documentary evidence not previously filed and a summary 
42.15 	of the evidence they will present at a formal hearing. If appropriate, a written summary 
42.16 	decision shall be issued within ten days after the conference stating the issues and a 
42.17 	determination of each issue. If a party fails to appear at the conference, all issues may 
42.18 	be determined contrary to the absent party's interest, provided the party in attendance 
42.19 	presents a prima facie case.
42.20 	The summary decision is final unless a written request for a formal hearing is served 
42.21 	on all parties and filed with the commissioner within 30 days after the date of service 
42.22 	and filing of the summary decision. Within ten days after receipt of the request, the 
42.23 	commissioner shall certify the matter to the office for a de novo hearing. In proceedings 
42.24 	under section 176.2615, the summary decision is final and not subject to appeal or de 
42.25 	novo proceedings.

42.26 	Sec. 8.  REPEALER.
 42.27 	Minnesota Statutes 2012, sections 175.006, subdivision 1; 175.08; 175.14; 175.26; 
42.28 	176.1311; 176.136, subdivision 3; 176.2615; and 176.641, are repealed.

42.29 	ARTICLE 6
42.30 	MISCELLANEOUS FOR JOBS AND ECONOMIC DEVELOPMENT

42.31 	Section 1. Minnesota Statutes 2012, section 179.02, is amended by adding a 
42.32 	subdivision to read:
43.1 		Subd. 6.Receipt of gifts, money; appropriation. (a) The commissioner may apply 
43.2 	for, accept, and disburse gifts, bequests, grants, or payments for services from the United 
43.3 	States, the state, private foundations, or any other source.
43.4 	(b) Money received by the commissioner under this subdivision must be deposited in 
43.5 	a separate account in the state treasury and invested by the State Board of Investment. The 
43.6 	amount deposited, including investment earnings, is appropriated to the commissioner 
43.7 	to carry out duties of the commissioner.

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

43.9 	Sec. 2. Minnesota Statutes 2012, section 469.084, is amended by adding a subdivision 
43.10 	to read:
43.11 		Subd. 1a.Meetings by telephone or other electronic means. The port authority 
43.12 	may conduct meetings as provided by section 13D.015.

43.13 	ARTICLE 7
43.14 	COMMERCE

43.15 	Section 1. Laws 2013, chapter 85, article 1, section 5, is amended to read:

43.16	Sec. 5. EXPLORE MINNESOTA TOURISM
 	$
	13,988,000
	$
	13,988,000
	
43.17 	(a) To develop maximum private sector 
43.18 	involvement in tourism, $500,000 in fiscal 
43.19 	year 2014 and $500,000 in fiscal year 2015 
43.20 	must be matched by Explore Minnesota 
43.21 	Tourism from nonstate sources. Each $1 of 
43.22 	state incentive must be matched with $6 of 
43.23 	private sector funding. Cash match is defined 
43.24 	as revenue to the state or documented cash 
43.25 	expenditures directly expended to support 
43.26 	Explore Minnesota Tourism programs. Up 
43.27 	to one-half of the private sector contribution 
43.28 	may be in-kind or soft match. The incentive 
43.29 	in fiscal year 2014 shall be based on fiscal 
43.30 	year 2013 private sector contributions. The 
43.31 	incentive in fiscal year 2015 shall be based on 
43.32 	fiscal year 2014 private sector contributions. 
43.33 	This incentive is ongoing.
44.1 	Funding for the marketing grants is available 
44.2 	either year of the biennium. Unexpended 
44.3 	grant funds from the first year are available 
44.4 	in the second year.
44.5 	(b) $100,000 of the second year appropriation 
44.6 	is for a grant to the Mille Lacs Tourism 
44.7 	Council to enhance marketing activities 
44.8 	related to tourism promotion in the Mille 
44.9 	Lacs Lake area.
44.10 	(c) $100,000 of the second year appropriation 
44.11 	is for additional marketing activities.

44.12 	Sec. 2. RACING COMMISSION.
 44.13 	$100,000 in fiscal year 2014 and $85,000 in fiscal year 2015 are appropriated 
44.14 	from the racing and card playing regulation account in the special revenue fund to the 
44.15 	Minnesota Racing Commission. These appropriations are onetime and are available 
44.16 	either year of the biennium.
44.17 	PUBLIC SAFETY AND CORRECTIONS

44.18 	ARTICLE 8
44.19 	PUBLIC SAFETY AND CORRECTIONS APPROPRIATIONS

44.20	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
44.21 	The amounts shown in this section summarize direct appropriations, by fund, made 
44.22 	in this article.

44.23			2014
		2015
		Total
	
44.24	General
	$
	-0-
	$
	36,475,000
	$
	36,496,000
	
44.25
44.26	State Government Special 
Revenue
		6,359,000
		6,865,000
		13,224,000
	
44.27	Total
	$
	6,359,000
	$
	43,361,000
	$
	49,720,000

44.28	Sec. 2. APPROPRIATIONS.
 	
44.29 	The sums shown in the columns marked "Appropriations" are added to the 
44.30 	appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes 
44.31 	specified in this article. The appropriations are from the general fund, or another named 
44.32 	fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 
44.33 	and "2015" used in this article mean that the addition to the appropriation listed under 
45.1 	them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 
45.2 	Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 
45.3 	day following final enactment.

45.4				APPROPRIATIONS
	
45.5				Available for the Year
	
45.6				Ending June 30
	
45.7					2014
		2015

45.8	Sec. 3. DEPARTMENT OF PUBLIC SAFETY

45.9	Subdivision 1.Total Appropriation
 	$
	 6,359,000
	$
	13,126,000

45.10	Appropriations by Fund
	
45.11	General
	-0-
	6,261,000
	
45.12
45.13	State Government 
Special Revenue
	6,359,000
	6,865,000
	
45.14 	The amounts that may be spent for each 
45.15 	purpose are specified in the following 
45.16 	subdivisions.

45.17	Subd. 2.Emergency Communication Networks
 		5,059,000
		6,865,000
	
45.18 	This appropriation is from the state 
45.19 	government special revenue fund for 911 
45.20 	emergency telecommunications services.

45.21	Subd. 3.Office of Justice Programs
 		-0-
		600,000
	
45.22 	(a) $300,000 in 2015 is for grants to 
45.23 	fund emergency shelter, housing, or 
45.24 	advocacy services targeted to culturally 
45.25 	specific programming for newer immigrant 
45.26 	populations. The funds must be awarded 
45.27 	to a program or programs that demonstrate 
45.28 	leadership in the community to be served. 
45.29 	This appropriation is added to the base.
45.30 	(b) $300,000 in 2015 is for grants to sexual 
45.31 	assault advocacy programs for sexual 
45.32 	violence community prevention networks. 
45.33 	For purposes of this section, "sexual 
45.34 	assault" means a violation of Minnesota 
46.1 	Statutes, sections 609.342 to 609.3453. This 
46.2 	appropriation is added to the base.

46.3	Subd. 4.Emergency Management
 		-0-
		5,661,000
	
46.4 	$5,661,000 in 2015 is for the disaster 
46.5 	assistance contingency account in Minnesota 
46.6 	Statutes, section 12.221. These funds are 
46.7 	available until spent.

46.8	Subd. 5.Fire Safety Account
 		1,300,000
		-0-
	
46.9 	$1,300,000 in 2014 is appropriated from the 
46.10 	fire safety account in the special revenue 
46.11 	fund to the commissioner of public safety 
46.12 	for activities and programs under Minnesota 
46.13 	Statutes, section 299F.012. This is a onetime 
46.14 	appropriation. By January 15, 2015, the 
46.15 	commissioner shall report to the chairs and 
46.16 	ranking minority members of the legislative 
46.17 	committees with jurisdiction over the fire 
46.18 	safety account regarding the balances and 
46.19 	uses of the account.

46.20	Sec. 4. CORRECTIONS

46.21	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	30,164,000
	
46.22 	The amounts that may be spent for each 
46.23 	purpose are specified in the following 
46.24 	subdivisions.

46.25	Subd. 2.Correctional Institutions
 		-0-
		27,321,000
	
46.26 	This includes a onetime appropriation of 
46.27 	$11,089,000.

46.28	Subd. 3.Community Services
 		-0-
		1,900,000

46.29	Subd. 4.Operations Support
 		-0-
		900,000

46.30
46.31	Sec. 5. PEACE OFFICER STANDARDS AND 
TRAINING (POST) BOARD
 		-0-
		50,000
	
47.1 	$50,000 in 2015 is for training state and 
47.2 	local community safety personnel in the 
47.3 	use of crisis de-escalation techniques for 
47.4 	use with Minnesota veterans following 
47.5 	their return from active military service in 
47.6 	a combat zone. The director may consult 
47.7 	with any other state or local governmental 
47.8 	official or nongovernmental authority the 
47.9 	director determines to be relevant, to include 
47.10 	postsecondary institutions, when selecting 
47.11 	a service provider for this training. The 
47.12 	training provider must have a demonstrated 
47.13 	understanding of the transitions and 
47.14 	challenges that veterans may experience 
47.15 	during their re-entry into society following 
47.16 	combat service. The training opportunities 
47.17 	provided must be reasonably distributed 
47.18 	statewide. This is a onetime appropriation.

47.19 	Sec. 6. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:

47.20	Subd. 7.Emergency Communication Networks
 		66,470,000
		70,233,000
	
47.21 	This appropriation is from the state 
47.22 	government special revenue fund for 911 
47.23 	emergency telecommunications services.
47.24 	(a) Public Safety Answering Points.
47.25 	$13,664,000 each year is to be distributed 
47.26 	as provided in Minnesota Statutes, section 
47.27 	403.113, subdivision 2.
47.28 	(b) Medical Resource Communication 
47.29 	Centers. $683,000 each year is for grants 
47.30 	to the Minnesota Emergency Medical 
47.31 	Services Regulatory Board for the Metro 
47.32 	East and Metro West Medical Resource 
47.33 	Communication Centers that were in 
47.34 	operation before January 1, 2000.
48.1 	(c) ARMER Debt Service. $17,557,000 the 
48.2 	first year and $23,261,000 the second year 
48.3 	are to the commissioner of finance to pay 
48.4 	debt service on revenue bonds issued under 
48.5 	Minnesota Statutes, section 403.275.
48.6 	Any portion of this appropriation not needed 
48.7 	to pay debt service in a fiscal year may be 
48.8 	used by the commissioner of public safety to 
48.9 	pay cash for any of the capital improvements 
48.10 	for which bond proceeds were appropriated 
48.11 	by Laws 2005, chapter 136, article 1, section 
48.12 	9, subdivision 8, or Laws 2007, chapter 54, 
48.13 	article 1, section 10, subdivision 8.
48.14 	(d) Metropolitan Council Debt Service.
48.15 	$1,410,000 each year is to the commissioner 
48.16 	of finance for payment to the Metropolitan 
48.17 	Council for debt service on bonds issued 
48.18 	under Minnesota Statutes, section 403.27.
48.19 	(e) ARMER State Backbone Operating 
48.20 	Costs. $5,060,000 each year is to the 
48.21 	commissioner of transportation for costs 
48.22 	of maintaining and operating the statewide 
48.23 	radio system backbone.
48.24 	(f) ARMER Improvements. $1,000,000 
48.25 	each year is for the Statewide Radio Board for 
48.26 	costs of design, construction, maintenance 
48.27 	of, and improvements to those elements 
48.28 	of the statewide public safety radio and 
48.29 	communication system that support mutual 
48.30 	aid communications and emergency medical 
48.31 	services or provide enhancement of public 
48.32 	safety communication interoperability.
48.33 	(g) Next Generation 911. $3,431,000 the 
48.34 	first year and $6,490,000 the second year 
48.35 	are to replace the current system with the 
49.1 	Next Generation Internet Protocol (IP) based 
49.2 	network. This appropriation is available until 
49.3 	expended. The base level of funding for 
49.4 	fiscal year 2012 shall be $2,965,000.
49.5 	(h) Grants to Local Government. 
49.6 	$5,000,000 the first year is for grants to 
49.7 	local units of government to assist with 
49.8 	the transition to the ARMER system. This 
49.9 	appropriation is available until June 30, 2012.

49.10 	Sec. 7. Laws 2013, chapter 86, article 1, section 12, subdivision 3, as amended by 
49.11 	Laws 2013, chapter 140, section 2, is amended to read:

49.12	Subd. 3.Criminal Apprehension
 		47,588,000
		47,197,000

49.13	Appropriations by Fund
	
49.14	General
	42,315,000
	42,924,000
	
49.15	Special Revenue
	3,000,000
	2,000,000
	
49.16
49.17	State Government 
Special Revenue
	7,000
	7,000
	
49.18	Trunk Highway
	2,266,000
	2,266,000

49.19	(a) DWI Lab Analysis; Trunk Highway Fund
					
49.20 	Notwithstanding Minnesota Statutes, section 
49.21 	161.20, subdivision 3, $1,941,000 each year 
49.22 	is from the trunk highway fund for laboratory 
49.23 	analysis related to driving-while-impaired 
49.24 	cases.

49.25	(b) Criminal History System
					
49.26 	$50,000 the first year and $580,000 the 
49.27 	second year from the general fund and, 
49.28 	notwithstanding Minnesota Statutes, section 
49.29 	299A.705, subdivision 4, $3,000,000 the 
49.30 	first year and $2,000,000 the second year 
49.31 	from the vehicle services account in the 
49.32 	special revenue fund are to replace the state 
49.33 	criminal history system. This appropriation 
49.34 	is available until expended. Of this amount, 
50.1 	$2,980,000 the first year and $2,580,000 
50.2 	the second year are for a onetime transfer 
50.3 	to the Office of Enterprise Technology for 
50.4 	start-up costs. Service level agreements 
50.5 	must document all project-related transfers 
50.6 	under this paragraph. Ongoing operating 
50.7 	and support costs for this system shall 
50.8 	be identified and incorporated into future 
50.9 	service level agreements.
50.10 	The commissioner is authorized to use funds 
50.11 	appropriated under this paragraph for the 
50.12 	purposes specified in paragraph (c).
50.13 	The general fund base for this program is 
50.14 	$4,930,000 in fiscal year 2016 and $417,000 
50.15 	in fiscal year 2017.

50.16	(c) Criminal Reporting System
					
50.17 	$1,360,000 the first year and $1,360,000 the 
50.18 	second year from the general fund are to 
50.19 	replace the state's crime reporting system
50.20 	 and include one full-time equivalent business 
50.21 	analyst. This appropriation is available until 
50.22 	expended. Of these amounts, $1,360,000 
50.23 	the first year and $1,360,000 $1,290,000
50.24 	 the second year are for a onetime transfer 
50.25 	to the Office of Enterprise Technology for 
50.26 	start-up costs. Service level agreements 
50.27 	must document all project-related transfers 
50.28 	under this paragraph. Ongoing operating 
50.29 	and support costs for this system shall 
50.30 	be identified and incorporated into future 
50.31 	service level agreements.
50.32 	The commissioner is authorized to use funds 
50.33 	appropriated under this paragraph for the 
50.34 	purposes specified in paragraph (b).
51.1 	The base funding for this program is 
51.2 	$1,360,000 in fiscal year 2016 and $380,000 
51.3 	in fiscal year 2017.

51.4	(d) Forensic Laboratory
					
51.5 	$125,000 the first year and $125,000 the 
51.6 	second year from the general fund and, 
51.7 	notwithstanding Minnesota Statutes, section 
51.8 	161.20, subdivision 3, $125,000 the first 
51.9 	year and $125,000 the second year from the 
51.10 	trunk highway fund are to replace forensic 
51.11 	laboratory equipment at the Bureau of 
51.12 	Criminal Apprehension.
51.13 	$200,000 the first year and $200,000 the 
51.14 	second year from the general fund and, 
51.15 	notwithstanding Minnesota Statutes, section 
51.16 	161.20, subdivision 3, $200,000 the first 
51.17 	year and $200,000 the second year from the 
51.18 	trunk highway fund are to improve forensic 
51.19 	laboratory staffing at the Bureau of Criminal 
51.20 	Apprehension.

51.21	(e) Livescan Fingerprinting
					
51.22 	$310,000 the first year and $389,000 the 
51.23 	second year from the general fund are to 
51.24 	maintain Livescan fingerprinting machines.

51.25	(f) Report
					
51.26 	If the vehicle services special revenue account 
51.27 	accrues an unallocated balance in excess 
51.28 	of 50 percent of the previous fiscal year's 
51.29 	expenditures, the commissioner of public 
51.30 	safety shall submit a report to the chairs 
51.31 	and ranking minority members of the house 
51.32 	of representatives and senate committees 
51.33 	with jurisdiction over transportation and 
51.34 	public safety policy and finance. The report 
52.1 	must contain specific policy and legislative 
52.2 	recommendations for reducing the fund 
52.3 	balance and avoiding future excessive fund 
52.4 	balances. The report is due within three 
52.5 	months of the fund balance exceeding the 
52.6 	threshold established in this paragraph.

52.7 	Sec. 8. Laws 2013, chapter 86, article 1, section 13, is amended to read:

52.8
52.9	Sec. 13. PEACE OFFICER STANDARDS 
AND TRAINING (POST) BOARD
 	$
	3,870,000
	$
	3,870,000
	
52.10 	(a) Excess Amounts Transferred
52.11 	This appropriation is from the peace officer 
52.12 	training account in the special revenue fund. 
52.13 	Any new receipts credited to that account in 
52.14 	the first year in excess of $3,870,000 must be 
52.15 	transferred and credited to the general fund. 
52.16 	Any new receipts credited to that account in 
52.17 	the second year in excess of $3,870,000 must 
52.18 	be transferred and credited to the general 
52.19 	fund.
52.20 	(b) Peace Officer Training 
52.21 	Reimbursements
52.22 	$2,734,000 each year is for reimbursements 
52.23 	to local governments for peace officer 
52.24 	training costs.
52.25 	(c) Training; Sexually Exploited and 
52.26 	Trafficked Youth
52.27 	Of the appropriation in paragraph (b), 
52.28 	$100,000 the first year is for reimbursements 
52.29 	to local governments for peace officer 
52.30 	training costs on sexually exploited and 
52.31 	trafficked youth, including effectively 
52.32 	identifying sex trafficked victims and 
52.33 	traffickers, investigation techniques, and 
53.1 	assisting sexually exploited youth. These 
53.2 	funds are available until June 30, 2016.
53.3 	Reimbursement shall be provided on a flat 
53.4 	fee basis of $100 per diem per officer.

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

53.6 	ARTICLE 9
53.7 	PUBLIC SAFETY AND CORRECTIONS

53.8 	Section 1. Minnesota Statutes 2012, section 13.84, subdivision 5, is amended to read:
53.9 		Subd. 5.Disclosure. Private or confidential court services data shall not be 
53.10 	disclosed except:
53.11 	(a) pursuant to section 13.05;
53.12 	(b) pursuant to a statute specifically authorizing disclosure of court services data;
53.13 	(c) with the written permission of the source of confidential data;
53.14 	(d) to the court services department, parole or probation authority or state or local 
53.15 	correctional agency or facility having statutorily granted supervision over the individual 
53.16 	subject of the data;
53.17 	(e) pursuant to subdivision 6; or
53.18 	(f) pursuant to a valid court order.; or
53.19 	(g) pursuant to section 611A.06, subdivision 6.

53.20 	EFFECTIVE DATE. This section is effective January 1, 2015.

53.21 	Sec. 2. Minnesota Statutes 2012, section 13.84, subdivision 6, is amended to read:
53.22 		Subd. 6.Public benefit data. (a) The responsible authority or its designee of a 
53.23 	parole or probation authority or correctional agency may release private or confidential 
53.24 	court services data related to:
53.25 	(1) criminal acts to any law enforcement agency, if necessary for law enforcement 
53.26 	purposes; and
53.27 	(2) criminal acts or delinquent acts to the victims of criminal or delinquent acts to the 
53.28 	extent that the data are necessary for the victim to assert the victim's legal right to restitution.
53.29 	(b) A parole or probation authority, a correctional agency, or agencies that provide 
53.30 	correctional services under contract to a correctional agency may release to a law 
53.31 	enforcement agency the following data on defendants, parolees, or probationers: current 
54.1 	address, dates of entrance to and departure from agency programs, and dates and times of 
54.2 	any absences, both authorized and unauthorized, from a correctional program.
54.3 	(c) The responsible authority or its designee of a juvenile correctional agency may 
54.4 	release private or confidential court services data to a victim of a delinquent act to the 
54.5 	extent the data are necessary to enable the victim to assert the victim's right to request 
54.6 	notice of release under section 611A.06. The data that may be released include only the 
54.7 	name, home address, and placement site of a juvenile who has been placed in a juvenile 
54.8 	correctional facility as a result of a delinquent act.
54.9 	(d) Upon the victim's written or electronic request and, if the victim and offender 
54.10 	have been household or family members as defined in section 518B.01, subdivision 1, 
54.11 	paragraph (b), the commissioner of corrections or the commissioner's designee may 
54.12 	disclose to the victim of an offender convicted of a crime pursuant to section 609.02, 
54.13 	subdivision 16, notification of the city and five-digit zip code of the offender's residency 
54.14 	upon or after release from a Department of Corrections facility, unless:
54.15 	(1) the offender is not supervised by the commissioner of corrections or the 
54.16 	commissioner's designee at the time of the victim's request;
54.17 	(2) the commissioner of corrections or the commissioner's designee does not have 
54.18 	the city or zip code; or 
54.19 	(3) the commissioner of corrections or the commissioner's designee reasonably 
54.20 	believes that disclosure of the city or zip code of the offender's residency creates a risk 
54.21 	to the victim, offender, or public safety.

54.22 	EFFECTIVE DATE. This section is effective January 1, 2015.

54.23 	Sec. 3. Minnesota Statutes 2012, section 243.167, subdivision 1, is amended to read:
54.24 		Subdivision 1.Definition. As used in this section, "crime against the person" means 
54.25 	a violation of any of the following or a similar law of another state or of the United States: 
54.26 	section 609.165; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 609.223; 
54.27 	609.2231; 609.224, subdivision 2 or 4; 609.2242, subdivision 2 or 4; 609.2247; 609.235; 
54.28 	609.245, subdivision 1; 609.25; 609.255; 609.3451, subdivision 2 3; 609.498, subdivision 
54.29 	1; 609.582, subdivision 1; or 617.23, subdivision 2; or any felony-level violation of 
54.30 	section 609.229; 609.377; 609.749; or 624.713.

54.31 	Sec. 4. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:
54.32 		Subdivision 1.Authorized programs within department. From the revenues 
54.33 	appropriated from the fire safety account, established under section 297I.06, subdivision 
54.34 	3, the commissioner of public safety may expend funds for the activities and programs 
55.1 	identified by the advisory committee established under subdivision 2 and recommended 
55.2 	to the commissioner of public safety. The commissioner shall not expend funds without 
55.3 	the recommendation of the advisory committee established under subdivision 2. The 
55.4 	commissioner shall not expend funds without the recommendation of the advisory 
55.5 	committee established under subdivision 2. These funds are to be used to provide 
55.6 	resources needed for identified activities and programs of the Minnesota fire service and to 
55.7 	ensure the State Fire Marshal Division responsibilities are fulfilled.

55.8 	Sec. 5. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
55.9 		Subd. 2.Fire Service Advisory Committee. (a) The Fire Service Advisory 
55.10 	Committee shall provide recommendations to the commissioner of public safety on 
55.11 	fire service-related issues and shall consist of representatives of each of the following 
55.12 	organizations: two appointed by the president of the Minnesota State Fire Chiefs 
55.13 	Association, two appointed by the president of the Minnesota State Fire Department 
55.14 	Association, two appointed by the president of the Minnesota Professional Fire Fighters, 
55.15 	two appointed by the president of the League of Minnesota Cities, one appointed by the 
55.16 	president of the Minnesota Association of Townships, one appointed by the president 
55.17 	of the Insurance Federation of Minnesota, one appointed jointly by the presidents of 
55.18 	the Minnesota Chapter of the International Association of Arson Investigators and the 
55.19 	Fire Marshals Association of Minnesota, and the commissioner of public safety or the 
55.20 	commissioner's designee. The commissioner of public safety must ensure that at least 
55.21 	three of the members of the advisory committee work and reside in counties outside of the 
55.22 	seven-county metropolitan area. The committee shall provide funding recommendations 
55.23 	to the commissioner of public safety from the fire safety fund for the following purposes:
55.24 	(1) for the Minnesota Board of Firefighter Training and Education;
55.25 	(2) for programs and staffing for the State Fire Marshal Division; and
55.26 	(3) for fire-related regional response team programs and any other fire service 
55.27 	programs that have the potential for statewide impact.
55.28 	(b) The committee under paragraph (a) does not expire.

55.29 	Sec. 6. Minnesota Statutes 2012, section 609.135, subdivision 2, is amended to read:
55.30 		Subd. 2.Stay of sentence maximum periods. (a) If the conviction is for a felony 
55.31 	other than section 609.21, subdivision 1a, paragraph (b) or (c), the stay shall be for not 
55.32 	more than four years or the maximum period for which the sentence of imprisonment 
55.33 	might have been imposed, whichever is longer.
56.1 	(b) If the conviction is for a gross misdemeanor violation of section 169A.20 
56.2 	or 609.21, subdivision 1a, paragraph (d), or for a felony described in section 609.21, 
56.3 	subdivision 1a, paragraph (b) or (c), the stay shall be for not more than six years. The 
56.4 	court shall provide for unsupervised probation for the last year of the stay unless the court 
56.5 	finds that the defendant needs supervised probation for all or part of the last year.
56.6 	(c) If the conviction is for a gross misdemeanor violation of section 609.3451, 
56.7 	subdivision 1, the stay shall be for not more than six years.
56.8 	(c) (d) If the conviction is for a gross misdemeanor not specified in paragraph (b), 
56.9 	the stay shall be for not more than two years.
56.10 	(d) (e) If the conviction is for any misdemeanor under section 169A.20; 609.746, 
56.11 	subdivision 1; 609.79; or 617.23; or for a misdemeanor under section 609.2242 or 
56.12 	609.224, subdivision 1, in which the victim of the crime was a family or household 
56.13 	member as defined in section 518B.01, the stay shall be for not more than two years. The 
56.14 	court shall provide for unsupervised probation for the second year of the stay unless the 
56.15 	court finds that the defendant needs supervised probation for all or part of the second year.
56.16 	(e) (f) If the conviction is for a misdemeanor not specified in paragraph (d) (e), the 
56.17 	stay shall be for not more than one year.
56.18 	(f) (g) The defendant shall be discharged six months after the term of the stay 
56.19 	expires, unless the stay has been revoked or extended under paragraph (g) (h), or the 
56.20 	defendant has already been discharged.
56.21 	(g) (h) Notwithstanding the maximum periods specified for stays of sentences under 
56.22 	paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to one 
56.23 	year if it finds, at a hearing conducted under subdivision 1a, that:
56.24 	(1) the defendant has not paid court-ordered restitution in accordance with the 
56.25 	payment schedule or structure; and
56.26 	(2) the defendant is likely to not pay the restitution the defendant owes before the 
56.27 	term of probation expires.
56.28 	This one-year extension of probation for failure to pay restitution may be extended by 
56.29 	the court for up to one additional year if the court finds, at another hearing conducted 
56.30 	under subdivision 1a, that the defendant still has not paid the court-ordered restitution 
56.31 	that the defendant owes.
56.32 	Nothing in this subdivision limits the court's ability to refer the case to collections 
56.33 	under section 609.104.
56.34 	(h) (i) Notwithstanding the maximum periods specified for stays of sentences under 
56.35 	paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to three 
56.36 	years if it finds, at a hearing conducted under subdivision 1c, that:
57.1 	(1) the defendant has failed to complete court-ordered treatment successfully; and
57.2 	(2) the defendant is likely not to complete court-ordered treatment before the term of 
57.3 	probation expires.

57.4 	EFFECTIVE DATE. This section is effective August 1, 2014, and applies to crimes 
57.5 	committed on or after that date.

57.6 	Sec. 7. Minnesota Statutes 2012, section 609.3451, subdivision 3, is amended to read:
57.7 		Subd. 3.Felony. A person is guilty of a felony and may be sentenced to 
57.8 	imprisonment for not more than five ten years or to payment of a fine of not more than 
57.9 	$10,000, or both, if the person violates subdivision 1, clause (2), this section within ten 
57.10 	years after having been previously convicted of or adjudicated delinquent for violating 
57.11 	subdivision 1, clause (2) this section; sections 609.342 to 609.345; or 609.3453; section
57.12 	 617.23, subdivision 2, clause (1); 617.247; or a statute from another state in conformity 
57.13 	with subdivision 1, clause (2), or section 617.23, subdivision 2, clause (1) therewith.

57.14 	EFFECTIVE DATE. This section is effective August 1, 2014, and applies to crimes 
57.15 	committed on or after that date.

57.16 	Sec. 8. Minnesota Statutes 2012, section 611A.06, is amended by adding a subdivision 
57.17 	to read:
57.18 		Subd. 6.Offender location. (a) Upon the victim's written or electronic request 
57.19 	and if the victim and offender have been household or family members as defined in 
57.20 	section 518B.01, subdivision 2, paragraph (b), the commissioner of corrections or the 
57.21 	commissioner's designee shall disclose to the victim of an offender convicted of a crime 
57.22 	pursuant to section 609.02, subdivision 16, notification of the city and five-digit zip code 
57.23 	of the offender's residency upon release from a Department of Corrections facility, unless:
57.24 	(1) the offender is not supervised by the commissioner of corrections or the 
57.25 	commissioner's designee at the time of the victim's request;
57.26 	(2) the commissioner of corrections or the commissioner's designee does not have 
57.27 	the city or zip code; or
57.28 	(3) the commissioner of corrections or the commissioner's designee reasonably 
57.29 	believes that disclosure of the city or zip code of the offender's residency creates a risk 
57.30 	to the victim, offender, or public safety.
57.31 	(b) All identifying information regarding the victim including, but not limited to, the 
57.32 	notification provided by the commissioner of corrections or the commissioner's designee 
58.1 	is classified as private data on individuals as defined in section 13.02, subdivision 12, and 
58.2 	is accessible only to the victim.

58.3 	EFFECTIVE DATE. This section is effective January 15, 2015.

58.4 	Sec. 9. REVISOR'S INSTRUCTION.
 58.5 	In the next edition of Minnesota Statutes, the revisor of statutes shall change the 
58.6 	headnote of section 609.3451, subdivision 2, from "Penalty" to "Gross misdemeanor."

58.7 	ARTICLE 10
58.8 	DISASTER ASSISTANCE FOR PUBLIC ENTITIES; FEDERAL AID GRANTED

58.9 	Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision 
58.10 	to read:
58.11 		Subd. 5d.Local government. "Local government" has the meaning given in Code 
58.12 	of Federal Regulations, title 44, section 206.2 (2012).

58.13 	Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to 
58.14 	read:
58.15 		Subd. 6b.Nonfederal share. "Nonfederal share" has the meaning given in section 
58.16 	12A.02, subdivision 7.

58.17 	Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:
58.18 		Subd. 4.Subgrant agreements; state share. (a) The state director, serving as the 
58.19 	governor's authorized representative, may enter into subgrant agreements with eligible 
58.20 	applicants to provide federal and state financial assistance made available as a result 
58.21 	of a disaster declaration.
58.22 	(b) When state funds are used to provide the FEMA Public Assistance Program 
58.23 	cost-share requirement for a local government, the state director must award a local 
58.24 	government 100 percent of the nonfederal share of the local government's FEMA Public 
58.25 	Assistance Program costs.

58.26 	Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision 
58.27 	to read:
58.28 		Subd. 6.Disaster assistance contingency account; appropriation. (a) A disaster 
58.29 	assistance contingency account is created in the general fund in the state treasury. Money 
59.1 	in the disaster assistance contingency account is appropriated to the commissioner of 
59.2 	public safety to provide:
59.3 	(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
59.4 	(2) state public disaster assistance to eligible applicants under chapter 12B.
59.5 	(b) For appropriations under paragraph (a), clause (1), the amount appropriated is 
59.6 	100 percent of any nonfederal share for state agencies and local governments. Money 
59.7 	appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the 
59.8 	nonfederal share for publicly owned capital improvement projects.
59.9 	(c) For appropriations under paragraph (a), clause (2), the amount appropriated 
59.10 	is the amount required to pay eligible claims under chapter 12B, as certified by the 
59.11 	commissioner of public safety.
59.12 	(d) If the amount appropriated is insufficient to cover costs for paragraph (a), clauses 
59.13 	(1) and (2), the commissioner of public safety shall pay up to an additional $4,000,000 
59.14 	from the general fund appropriation provided under this paragraph. No payment shall be 
59.15 	made under this paragraph until:
59.16 	(1) the commissioner of public safety has given the commissioner of management 
59.17 	and budget an estimate of the additional funds required;
59.18 	(2) the commissioner of management and budget has reported the estimate to the 
59.19 	chairs of the house of representatives Ways and Means Committee and the senate Finance 
59.20 	Committee; and
59.21 	(3) the commissioner of management and budget has approved the payments.
59.22 	(e) Amounts approved by the commissioner of management and budget, up to 
59.23 	$4,000,000 per fiscal year, are appropriated from the general fund to the commissioner 
59.24 	of public safety. By January 15 of each year, the commissioner of management and 
59.25 	budget shall submit a report to the chairs of the house of representatives Ways and 
59.26 	Means Committee and the senate Finance Committee detailing state disaster assistance 
59.27 	appropriations and expenditures under this subdivision during the previous calendar year.
59.28 	(f) The governor's budget proposal submitted to the legislature under section 16A.11 
59.29 	must include recommended appropriations to the disaster assistance contingency account. 
59.30 	The governor's appropriation recommendations must be informed by the commissioner of 
59.31 	public safety's estimate of the amount of money that will be necessary to:
59.32 	(1) provide 100 percent of the nonfederal share for state agencies and local 
59.33 	governments that will receive federal financial assistance from FEMA during the next 
59.34 	biennium; and
59.35 	(2) fully pay all eligible claims under chapter 12B.
59.36 	(g) Notwithstanding section 16A.28:
60.1 	(1) funds appropriated or transferred to the disaster assistance contingency account 
60.2 	do not lapse but remain in the account until appropriated; and
60.3 	(2) funds appropriated from the disaster assistance contingency account do not lapse 
60.4 	and are available until expended.

60.5 	Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:
60.6 		Subd. 2.Appropriation. "Appropriation" means an appropriation provided in law 
60.7 	specifically to implement this chapter, including but not limited to a statutory appropriation 
60.8 	to provide the required cost-share for federal disaster assistance under section 12.221.

60.9 	Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision 
60.10 	to read:
60.11 		Subd. 6.Local government. "Local government" has the meaning given in section 
60.12 	12.03, subdivision 5d.

60.13 	Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision 
60.14 	to read:
60.15 		Subd. 7.Nonfederal share. "Nonfederal share" means that portion of total FEMA 
60.16 	Public Assistance Program costs that is no more than 25 percent and is not eligible for 
60.17 	FEMA reimbursement.

60.18 	Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
60.19 		Subd. 3.Nonduplication of federal assistance. State assistance may not duplicate 
60.20 	or supplement eligible FEMA Public Assistance Program assistance. For eligible Public 
60.21 	Assistance Program costs, any state matching cost-share money made available for 
60.22 	that assistance must be disbursed by the Department of Public Safety to a state agency, 
60.23 	local political subdivision, Indian tribe government, or other applicant. State assistance 
60.24 	distributed by a state agency, other than the Department of Public Safety, to a political 
60.25 	subdivision local government or other applicant for disaster costs that are eligible for 
60.26 	FEMA Public Assistance Program assistance constitutes an advance of funds. Such 
60.27 	advances must be repaid to the applicable state agency when the applicant has received 
60.28 	the FEMA Public Assistance Program assistance, and whatever state matching cost-share
60.29 	 money may be made available for that assistance, from the Department of Public Safety.

60.30 	Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:
61.1 		Subdivision 1.State match cost-share for federal assistance. State appropriations 
61.2 	may be used for payment of the state match for federal disaster assistance to pay 100 
61.3 	percent of the nonfederal share for state agencies. If authorized in law, state appropriations 
61.4 	may be used to pay all or a portion of the local share of the match for federal funds for 
61.5 	political subdivisions and local governments under section 12.221. An appropriation from 
61.6 	the bond proceeds fund may be used to fund federal match obligations as cost-share for 
61.7 	federal disaster assistance for publicly owned capital improvement projects resulting from 
61.8 	the receipt of federal disaster assistance.

61.9 	Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision 
61.10 	to read:
61.11 		Subd. 9.Disaster assistance. (a) The commissioner of management and budget 
61.12 	must transfer the unexpended and unencumbered balance of a general fund disaster 
61.13 	assistance appropriation that expires as provided under this section or as otherwise provided 
61.14 	by law to the disaster assistance contingency account in section 12.221, subdivision 6.
61.15 	(b) Expired disaster assistance transferred to the disaster assistance contingency 
61.16 	account is appropriated as provided under section 12.221, subdivision 6, regardless of the 
61.17 	specific disaster event or purpose for which the expired disaster assistance was originally 
61.18 	appropriated.
61.19 	(c) The commissioner must report each transfer to the chairs of the house of 
61.20 	representatives Ways and Means Committee and the senate Finance Committee.
61.21 	(d) For the purposes of this subdivision, "disaster assistance appropriation" means 
61.22 	an appropriation from the general fund to provide cost-share required for federal disaster 
61.23 	assistance or to provide other state disaster assistance under chapter 12A or 12B.

61.24 	Sec. 11. EFFECTIVE DATE.
 61.25 	This article is effective the day following final enactment.

61.26 	ARTICLE 11
61.27 	DISASTER ASSISTANCE FOR PUBLIC ENTITIES; ABSENT FEDERAL AID

61.28 	Section 1. [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL 
61.29 	AID.
61.30 	This chapter establishes a state public assistance program to provide cost-share 
61.31 	assistance to local governments that sustain significant damage on a per capita basis but 
61.32 	are not eligible for federal disaster assistance or corresponding state assistance under 
61.33 	chapter 12A.

62.1 	Sec. 2. [12B.15] DEFINITIONS.
62.2 		Subdivision 1.Application. The definitions in this section apply to this chapter.
62.3 		Subd. 2.Applicant. "Applicant" means a local government that applies for state 
62.4 	disaster assistance under this chapter.
62.5 		Subd. 3.Commissioner. "Commissioner" means the commissioner of public safety.
62.6 		Subd. 4.Director. "Director" means the director of the Division of Homeland 
62.7 	Security and Emergency Management in the Department of Public Safety.
62.8 		Subd. 5.Disaster. "Disaster" means any catastrophe, including but not limited 
62.9 	to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic 
62.10 	eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire, 
62.11 	flood, or explosion.
62.12 		Subd. 6.FEMA. "FEMA" means the Federal Emergency Management Agency.
62.13 		Subd. 7.Incident period. "Incident period" means the time interval of a disaster as 
62.14 	delineated by specific start and end dates.
62.15 		Subd. 8.Local government. "Local government" has the meaning given in section 
62.16 	12A.03, subdivision 5d.

62.17 	Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
62.18 		Subdivision 1.Payment required; eligibility criteria. The director, serving as 
62.19 	the governor's authorized representative, may enter into grant agreements with eligible 
62.20 	applicants to provide state financial assistance made available as a result of a disaster 
62.21 	that satisfies all of the following criteria:
62.22 	(1) the state and applicable local government declares a disaster or emergency 
62.23 	during the incident period;
62.24 	(2) damages suffered and eligible costs incurred are the direct result of the disaster;
62.25 	(3) federal disaster assistance is not available to the applicant because the governor 
62.26 	did not request a presidential declaration of major disaster, the president denied the 
62.27 	governor's request, or the applicant is not eligible for federal disaster assistance because 
62.28 	the state or county did not meet the per capita impact indicator under FEMA's Public 
62.29 	Assistance Program;
62.30 	(4) the applicant incurred eligible damages that, on a per capita basis, equal or 
62.31 	exceed 50 percent of the countywide per capita impact indicator under FEMA's Public 
62.32 	Assistance Program;
62.33 	(5) the applicant assumes responsibility for 25 percent of the applicant's total 
62.34 	eligible costs; and
62.35 	(6) the applicant satisfies all requirements in this chapter.
63.1 		Subd. 2.Considerations; other resources available. When evaluating applicant 
63.2 	eligibility under subdivision 1, the director must consider:
63.3 	(1) the availability of other resources from federal, state, local, private, or other 
63.4 	sources; and
63.5 	(2) the availability or existence of insurance.

63.6 	Sec. 4. [12B.30] ELIGIBLE COSTS.
63.7 		Subdivision 1.Eligible costs. Costs eligible for payment under this chapter are 
63.8 	those costs that would be eligible for federal financial assistance under FEMA's Public 
63.9 	Assistance Program.
63.10 		Subd. 2.Ineligible costs. Ineligible costs are all costs not included in subdivision 
63.11 	1, including but not limited to:
63.12 	(1) ordinary operating expenses, including salaries and expenses of employees and 
63.13 	public officials that are not directly related to the disaster response;
63.14 	(2) costs for which payment has been or will be received from any other funding 
63.15 	source;
63.16 	(3) disaster-related costs that should, in the determination of the director, be covered 
63.17 	and compensated by insurance; and
63.18 	(4) projects and claims totaling less than the minimum FEMA project threshold.

63.19 	Sec. 5. [12B.35] APPLICANT'S SHARE.
63.20 	An applicant's share of eligible costs incurred must not be less than 25 percent. The 
63.21 	substantiated value of donated materials, equipment, services, and labor may be used as 
63.22 	all or part of the applicant's share of eligible costs, subject to the following:
63.23 	(1) all items and sources of donation must be indicated on the application and any 
63.24 	supporting documentation submitted to the commissioner;
63.25 	(2) the rate for calculating the value of donated, nonprofessional labor is the 
63.26 	prevailing federal minimum wage;
63.27 	(3) the value of donated equipment may not exceed the highway equipment rates 
63.28 	approved by the commissioner of transportation; and
63.29 	(4) the value of donated materials and professional services must conform to market 
63.30 	rates and be established by invoice.

63.31 	Sec. 6. [12B.40] APPLICATION PROCESS.
64.1 	(a) The director must develop application materials and may update the materials as 
64.2 	needed. Application materials must include instructions and requirements for assistance 
64.3 	under this chapter.
64.4 	(b) An applicant has 30 days from the end of the incident period or the president's 
64.5 	official denial of the governor's request for a declaration of a major disaster to provide the 
64.6 	director with written notice of intent to apply. The director may deny an application due to 
64.7 	a late notice of intent to apply.
64.8 	(c) Within 60 days after the end of the incident period or the president's official denial 
64.9 	of the governor's request for a declaration of a major disaster, the applicant must submit a 
64.10 	complete application to the director. A complete application includes the following:
64.11 	(1) the cause, location of damage, and incident period;
64.12 	(2) documentation of a local, tribal, county, or state disaster or emergency 
64.13 	declaration in response to the disaster;
64.14 	(3) a description of damages, an initial damage assessment, and the amount of 
64.15 	eligible costs incurred by the applicant;
64.16 	(4) a statement or evidence that the applicant has the ability to pay for at least 25 
64.17 	percent of total eligible costs incurred from the disaster; and
64.18 	(5) a statement or evidence that the local government has incurred damages equal to 
64.19 	or exceeding 50 percent of the federal countywide threshold in effect during the incident 
64.20 	period.
64.21 	(d) The director must review the application and supporting documentation for 
64.22 	completeness and may return the application with a request for more detailed information. 
64.23 	The director may consult with local public officials to ensure the application reflects the 
64.24 	extent and magnitude of the damage and to reconcile any differences. The application is 
64.25 	not complete until the director receives all requested information.
64.26 	(e) If the director returns an application with a request for more detailed information 
64.27 	or for correction of deficiencies, the applicant must submit all required information within 
64.28 	30 days of the applicant's receipt of the director's request. The applicant's failure to 
64.29 	provide the requested information in a timely manner without a reasonable explanation 
64.30 	may be cause for denial of the application.
64.31 	(f) The director has no more than 60 days from the receipt of a complete application 
64.32 	to approve or deny the application, or the application is deemed approved. If the director 
64.33 	denies an application, the director must send a denial letter. If the director approves an 
64.34 	application or the application is automatically deemed approved after 60 days, the director 
64.35 	must notify the applicant of the steps necessary to obtain reimbursement of eligible 
65.1 	costs, including submission of invoices or other documentation substantiating the costs 
65.2 	submitted for reimbursement.

65.3 	Sec. 7. [12B.45] CLAIMS PROCESS.
65.4 		Subdivision 1.Claims; appeal. (a) An applicant must submit to the director 
65.5 	completed claims for payment of actual and eligible costs on forms provided by the 
65.6 	director. All eligible costs claimed for payment must be documented and consistent with 
65.7 	the eligibility provisions of this chapter.
65.8 	(b) If the director denies an applicant's claim for payment, the applicant has 30 days 
65.9 	from receipt of the director's determination to appeal in writing to the commissioner. The 
65.10 	appeal must include the applicant's rationale for reversing the director's determination. The 
65.11 	commissioner has 30 days from receipt of the appeal to uphold or modify the director's 
65.12 	determination and formally respond to the applicant. If, within 30 days of receiving 
65.13 	the commissioner's decision, the applicant notifies the commissioner that the applicant 
65.14 	intends to contest the commissioner's decision, the Office of Administrative Hearings shall 
65.15 	conduct a hearing under the contested case provisions of chapter 14.
65.16 		Subd. 2.Final inspection. Upon completion of all work by an applicant, the 
65.17 	director may inspect all work claimed by the applicant. The applicant must provide the 
65.18 	director with access to records pertaining to all claimed work and must permit the director 
65.19 	to review all records relating to the work.
65.20 		Subd. 3.Closeout. The director must close out an applicant's disaster assistance 
65.21 	application after all of the following occur:
65.22 	(1) eligible work is complete;
65.23 	(2) the applicant receives the final amount due or pays any amount owed under 
65.24 	section 12B.50; and
65.25 	(3) any extant or scheduled audits are complete.
65.26 		Subd. 4.Audit. (a) An applicant must account for all funds received under this 
65.27 	chapter in conformance with generally accepted accounting principles and practices. The 
65.28 	applicant must maintain detailed records of expenditures to show that grants received under 
65.29 	this chapter were used for the purpose for which the payment was made. The applicant 
65.30 	must maintain records for five years and make the records available for inspection and 
65.31 	audit by the director or the state auditor. The applicant must keep all financial records for 
65.32 	five years after the final payment, including but not limited to all invoices and canceled 
65.33 	checks or bank statements that support all eligible costs claimed by the applicant.
65.34 	(b) The director or state auditor may audit all applicant records pertaining to an 
65.35 	application or payment under this chapter.
66.1 		Subd. 5.Reporting payments. The director must post on the division Web site a 
66.2 	list of the recipients and amounts of the payments made under this chapter.

66.3 	Sec. 8. [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT 
66.4 	REQUIRED.
66.5 	If an applicant subsequently recovers eligible costs from another source after 
66.6 	receiving payment under this chapter, the applicant must pay the commissioner an amount 
66.7 	equal to the corresponding state funds received within 30 days. The commissioner must 
66.8 	deposit any repayment in the disaster response contingency account in section 12.221, 
66.9 	subdivision 6.

66.10 	Sec. 9. EFFECTIVE DATE.
 66.11 	This article is effective the day following final enactment.
66.12 	TRANSPORTATION

66.13 	ARTICLE 12
66.14 	TRANSPORTATION APPROPRIATIONS

66.15	Section 1. APPROPRIATIONS.
 	
66.16 	The sums shown in the columns marked "Appropriations" are added to the 
66.17 	appropriations in Laws 2013, chapter 117, article 1, unless otherwise specified, to the 
66.18 	agencies and for the purposes specified in this article. Unless otherwise specified, the 
66.19 	appropriations are not added to the base appropriation for each purpose. The appropriations 
66.20 	are from the general fund, or another named fund, and are available for the fiscal years 
66.21 	indicated for each purpose. The figures "2014" and "2015" used in this article mean that the 
66.22 	appropriations listed under them are available for the fiscal year ending June 30, 2014, or 
66.23 	June 30, 2015, respectively. For purposes of this article, "the first year" is fiscal year 2014, 
66.24 	"the second year" is fiscal year 2015, and "the biennium" is fiscal years 2014 and 2015.

66.25				APPROPRIATIONS
	
66.26				Available for the Year
	
66.27				Ending June 30
	
66.28					2014
		2015

66.29
66.30	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

66.31	Subdivision 1.Total Appropriation
 	$
	10,000,000
	$
	 42,732,000
	
67.1 	The amounts that may be spent for each 
67.2 	purpose are specified in the following 
67.3 	subdivisions.

67.4	Subd. 2.Multimodal Systems

67.5	(a) Election Day Transit Service
				32,000
	
67.6 	This appropriation is for allocation to public 
67.7 	transit systems under Minnesota Statutes, 
67.8 	section 174.24, in amounts that reflect the 
67.9 	respective foregone fare revenues from 
67.10 	transit service under Minnesota Statutes, 
67.11 	section 174.24, subdivision 8.

67.12	(b) Safe Routes to School
				250,000
	
67.13 	This appropriation is for non-infrastructure 
67.14 	activities in the safe routes to school program 
67.15 	under Minnesota Statutes, section 174.40, 
67.16 	subdivision 7a.

67.17
67.18	(c) Highway-Rail Grade Crossings; Oil and 
Other Hazardous Material
				5,000,000
	
67.19 	This appropriation is for development and 
67.20 	implementation of safety improvements at 
67.21 	highway grade crossings along rail corridors 
67.22 	in which oil or other hazardous materials are 
67.23 	transported. The commissioner shall identify 
67.24 	highway-rail grade crossing locations and 
67.25 	improvements in consultation with railroads 
67.26 	and relevant road authorities.

67.27	(d) Port Development Assistance Program
				500,000
	
67.28 	This appropriation is for grants under the 
67.29 	port development assistance program in 
67.30 	Minnesota Statutes, chapter 457A.

67.31	Subd. 3.State Roads

67.32	(a) Winter-Related Trunk Highway Repair
		10,000,000
			
68.1 	This appropriation is from the trunk highway 
68.2 	fund for materials and supplies related to 
68.3 	road repair resulting from effects of the 
68.4 	2013-2014 winter season.

68.5
68.6	(b) Transportation Economic Development 
Program
				4,000,000
	
68.7 	This appropriation is for the transportation 
68.8 	economic development program under 
68.9 	Minnesota Statutes, section 174.12.

68.10	(c) Corridors of Commerce Program
				10,000,000
	
68.11 	This appropriation is for the corridors 
68.12 	of commerce program under Minnesota 
68.13 	Statutes, section 161.088, and may include 
68.14 	right-of-way acquisition for projects included 
68.15 	in the program. The commissioner may 
68.16 	identify projects based on the most recent 
68.17 	selection process or may perform a new 
68.18 	selection.

68.19	Subd. 4.Local Roads

68.20
68.21	(a) Winter-Related County State-Aid Road 
Repair
				 11,448,000
	
68.22 	This appropriation is for materials and 
68.23 	supplies related to road repair resulting from 
68.24 	effects of the 2013-2014 winter season.
68.25 	By September 1, 2014, the commissioner 
68.26 	shall apportion funds to counties in the 
68.27 	same manner as county state-aid highway 
68.28 	funds provided for calendar year 2014 under 
68.29 	Minnesota Statutes, section 162.07.

68.30
68.31	(b) Winter-Related Municipal State-Aid Road 
Repair
				 3,552,000
	
68.32 	This appropriation is for materials and 
68.33 	supplies related to road repair resulting from 
68.34 	effects of the 2013-2014 winter season.
69.1 	By September 1, 2014, the commissioner 
69.2 	shall apportion funds to cities in the same 
69.3 	manner as municipal state-aid street funds 
69.4 	provided for calendar year 2014 under 
69.5 	Minnesota Statutes, section 162.13.

69.6	Subd. 5.Willmar District Headquarters
 				4,370,000
	
69.7 	This appropriation is from the trunk 
69.8 	highway fund to complete the Willmar 
69.9 	district headquarters and is added to the 
69.10 	appropriation in Laws 2012, chapter 287, 
69.11 	article 1, section 1, subdivision 2.

69.12	Subd. 6.Little Falls Truck Station
 				3,580,000
	
69.13 	This appropriation is from the trunk highway 
69.14 	fund to complete the Little Falls truck station 
69.15 	and is added to the appropriation in Laws 
69.16 	2010, chapter 189, section 15, subdivision 15.

69.17	Sec. 3. METROPOLITAN COUNCIL

69.18	Subdivision 1.Total Appropriation
 			$
	10,400,000
	
69.19 	The amounts that may be spent for each 
69.20 	purpose are specified in the following 
69.21 	subdivisions.

69.22
69.23	Subd. 2.Transit Development and 
Improvements
 				 10,150,000
	
69.24 	This appropriation is for:
69.25 	(1) arterial bus rapid transit development, 
69.26 	which may include but is not limited to 
69.27 	design, engineering, construction, capital 
69.28 	costs, technology, equipment, and rolling 
69.29 	stock;
69.30 	(2) bus rapid transit station development;
69.31 	(3) transit shelter improvements under 
69.32 	Minnesota Statutes, section 473.41; and
70.1 	(4) foregone fare revenues from transit 
70.2 	service under Minnesota Statutes, section 
70.3 	473.408, subdivision 11. The Metropolitan 
70.4 	Council shall allocate amounts under this 
70.5 	appropriation to transit providers receiving 
70.6 	financial assistance under Minnesota 
70.7 	Statutes, section 473.388, based on 
70.8 	respective foregone fare revenues.

70.9	Subd. 3.Suburban Transit Providers
 				250,000
	
70.10 	This appropriation is for allocation to 
70.11 	replacement service providers operating 
70.12 	under Minnesota Statutes, section 473.388, 
70.13 	as provided in this subdivision.
70.14 	Upon receipt of a prioritized listing of 
70.15 	expenditure items and amounts submitted 
70.16 	by the Suburban Transit Association, or by 
70.17 	all replacement service providers jointly, 
70.18 	the Metropolitan Council shall distribute all 
70.19 	funds appropriated under this subdivision to 
70.20 	each identified replacement service provider, 
70.21 	following the priority order in the listing. An 
70.22 	expenditure item in the listing must be for 
70.23 	nonoperating transit-related expenses.

70.24	Sec. 4. DEPARTMENT OF PUBLIC SAFETY

70.25	Subdivision 1.Total Appropriation
 			$
	2,060,000
	
70.26 	The amounts that may be spent for each 
70.27 	purpose are specified in the following 
70.28 	subdivisions.

70.29	Subd. 2.Transit Safety Oversight
 				60,000
	
70.30 	$60,000 in the second year is for light rail 
70.31 	transit safety oversight under Minnesota 
70.32 	Statutes, section 299A.017, and is added to 
70.33 	the base appropriation for the administration 
70.34 	and related services program.

71.1	Subd. 3.Capitol Security
 				2,000,000
	
71.2 	This appropriation is for an increase in 
71.3 	the number of State Patrol troopers or 
71.4 	other security officers assigned to the 
71.5 	Capitol complex, and is added to the base 
71.6 	appropriation for the capitol security budget 
71.7 	activity.

71.8 	Sec. 5. TRANSFER; RAILROAD AND PIPELINE SAFETY.
 71.9 	On or before July 31, 2014, the commissioner of management and budget shall 
71.10 	transfer $2,500,000 from the general fund to the railroad and pipeline safety account in the 
71.11 	special revenue fund under Minnesota Statutes, section 299A.55. This is a onetime transfer.

71.12 	Sec. 6. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

71.13
71.14	Subd. 12.Rochester Maintenance Facility
 				26,430,000
 24,937,000
	
71.15 	This appropriation is from the bond proceeds 
71.16 	account in the trunk highway fund.
71.17 	To prepare a site for and design, construct, 
71.18 	furnish, and equip a new maintenance facility 
71.19 	in Rochester.

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

71.21 	Sec. 7. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
71.22 		Subd. 4.Trunk highway fund bond proceeds account. To provide the money 
71.23 	appropriated in this act from the bond proceeds account in the trunk highway fund, the 
71.24 	commissioner of management and budget shall sell and issue bonds of the state in an 
71.25 	amount up to $32,945,000$31,452,000 in the manner, upon the terms, and with the effect 
71.26 	prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
71.27 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
71.28 	commissioner of transportation. The proceeds of the bonds, except accrued interest and 
71.29 	any premium received from the sale of the bonds, must be credited to the bond proceeds 
71.30 	account in the trunk highway fund.

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

72.1 	Sec. 8. Laws 2012, chapter 287, article 2, section 1, is amended to read:
72.2 	Section 1. ROCHESTER MAINTENANCE FACILITY.
 72.3 	$16,100,000 $17,593,000 is appropriated to the commissioner of transportation 
72.4 	to design, construct, furnish, and equip the maintenance facility in Rochester and 
72.5 	corresponding remodeling of the existing district headquarters building. This appropriation 
72.6 	is from the bond proceeds account in the trunk highway fund.

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

72.8 	Sec. 9. Laws 2012, chapter 287, article 2, section 3, is amended to read:
72.9 	Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
 72.10 	To provide the money appropriated in this article from the bond proceeds account in 
72.11 	the trunk highway fund, the commissioner of management and budget shall sell and issue 
72.12 	bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the 
72.13 	terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
72.14 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
72.15 	requested by the commissioner of transportation. The proceeds of the bonds, except 
72.16 	accrued interest and any premium received from the sale of the bonds, must be credited 
72.17 	to the bond proceeds account in the trunk highway fund.

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

72.19 	Sec. 10. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended 
72.20 	to read:
72.21 	Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND 
72.22 	SALE AUTHORIZATIONS REDUCED.
 72.23 	(a) The remaining balance of the appropriation in Laws 2010, Second Special 
72.24 	Session chapter 1, article 1, section 7, for the economic development and housing 
72.25 	challenge program, estimated to be $450,000, is transferred to the general fund.
72.26 	(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
72.27 	section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section 
72.28 	12A.07, is reduced by $1,358,000.
72.29 	(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
72.30 	section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota 
72.31 	Statutes, section 12A.06, is reduced by $30,000.
73.1 	(d) The appropriation in Laws 2010, Second Special Session chapter 1, article 
73.2 	1, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota 
73.3 	Statutes, section 12A.06, is reduced by $392,000.
73.4 	(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
73.5 	section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota 
73.6 	Statutes, section 12A.06, is reduced by $2,000.
73.7 	(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
73.8 	section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes, 
73.9 	section 12A.06, is reduced by $5,000.
73.10 	(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2, 
73.11 	section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes, 
73.12 	section 12A.06, is reduced by $271,000.
73.13 	(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
73.14 	section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08, 
73.15 	is reduced by $103,000.
73.16 	(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session 
73.17 	chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk 
73.18 	highways and trunk highway bridges is canceled. The bond sale authorization in Laws 
73.19 	2007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced 
73.20 	by $1,428,000 $534,000.
73.21 	(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2, 
73.22 	article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for 
73.23 	grants to local governments for capital costs related to rehabilitation and replacement of 
73.24 	local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes, 
73.25 	section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special 
73.26 	Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
73.27 	(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1, 
73.28 	article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement 
73.29 	pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond 
73.30 	sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17, 
73.31 	subdivision 2, is reduced by $2,133,000.
73.32 	(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
73.33 	section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant 
73.34 	to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.

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

74.1 	Sec. 11. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

74.2	Subd. 2.Multimodal Systems
 					
74.3 	(a) Aeronautics

74.4
74.5	(1) Airport Development and Assistance
		13,648,000
14,648,000
		13,648,000
16,648,000
	
74.6 	This appropriation is from the state 
74.7 	airports fund and must be spent according 
74.8 	to Minnesota Statutes, section 360.305, 
74.9 	subdivision 4.
74.10 	The base appropriation for fiscal years 2016 
74.11 	and 2017 is $14,298,000 for each year.
74.12 	Notwithstanding Minnesota Statutes, section 
74.13 	16A.28, subdivision 6, this appropriation is 
74.14 	available for five years after appropriation. 
74.15 	If the appropriation for either year is 
74.16 	insufficient, the appropriation for the other 
74.17 	year is available for it.
74.18 	For the current biennium, the commissioner 
74.19 	of transportation may establish different 
74.20 	local contribution rates for airport projects 
74.21 	than those established in Minnesota Statutes, 
74.22 	section 360.305, subdivision 4.

74.23	(2) Aviation Support and Services
		6,386,000
		6,386,000

74.24	Appropriations by Fund
	
74.25	Airports
	5,286,000
	5,286,000
	
74.26	Trunk Highway
	1,100,000
	1,100,000
	
74.27 	$65,000 in each year is from the state airports 
74.28 	fund for the Civil Air Patrol.

74.29	(b) Transit
		17,226,000
		17,245,000

74.30	Appropriations by Fund
	
74.31	General
	16,451,000
	16,470,000
	
74.32	Trunk Highway
	775,000
	775,000
	
74.33 	$100,000 in each year is from the general 
74.34 	fund for the administrative expenses of the 
75.1 	Minnesota Council on Transportation Access 
75.2 	under Minnesota Statutes, section 174.285.
75.3 	$78,000 in each year is from the general 
75.4 	fund for grants to greater Minnesota transit 
75.5 	providers as reimbursement for the costs of 
75.6 	providing fixed route public transit rides free 
75.7 	of charge under Minnesota Statutes, section 
75.8 	174.24, subdivision 7, for veterans certified 
75.9 	as disabled.

75.10	(c) Passenger Rail
		500,000
		500,000
	
75.11 	This appropriation is from the general 
75.12 	fund for passenger rail system planning, 
75.13 	alternatives analysis, environmental analysis, 
75.14 	design, and preliminary engineering under 
75.15 	Minnesota Statutes, sections 174.632 to 
75.16 	174.636.

75.17	(d) Freight
		5,653,000
		5,153,000

75.18	Appropriations by Fund
	
75.19	General
	756,000
	256,000
	
75.20	Trunk Highway
	4,897,000
	4,897,000
	
75.21 	$500,000 in the first year is from the general 
75.22 	fund to pay for the department's share of costs 
75.23 	associated with the cleanup of contaminated 
75.24 	state rail bank property. This appropriation is 
75.25 	available until expended.

75.26	(e) Safe Routes to School
		250,000
		250,000
	
75.27 	This appropriation is from the general fund 
75.28 	for non-infrastructure activities in the safe 
75.29 	routes to school program under Minnesota 
75.30 	Statutes, section 174.40, subdivision 7a.

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

75.32 	Sec. 12. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:

76.1	Subd. 3.State Roads

76.2
76.3	(a) Operations and Maintenance
		262,395,000
287,395,000
		262,395,000
280,395,000
	
76.4 	$5,000,000 in each year is for accelerated 
76.5 	replacement of snow plowing equipment.
76.6 	The base appropriation for operations and 
76.7 	maintenance for fiscal years 2016 and 2017 
76.8 	is $267,395,000 in each year.

76.976.10
	(b) Program Planning and Delivery
		206,795,000
		206,720,000
209,720,000

76.11	Appropriations by Fund
	
76.12		2014
	2015
	
76.13	H.U.T.D.
	75,000
	0
	
76.14
76.15	Trunk Highway
	206,720,000
	206,720,000
209,720,000
	
76.16 	The base appropriation for program planning 
76.17 	and delivery for fiscal years 2016 and 2017 
76.18 	is $206,720,000 in each year.
76.19 	$250,000 in each year is for the department's 
76.20 	administrative costs for creation and 
76.21 	operation of the Joint Program Office for 
76.22 	Economic Development and Alternative 
76.23 	Finance, including costs of hiring a 
76.24 	consultant and preparing required reports.
76.25 	$130,000 in each year is available for 
76.26 	administrative costs of the targeted group 
76.27 	business program.
76.28 	$266,000 in each year is available for grants 
76.29 	to metropolitan planning organizations 
76.30 	outside the seven-county metropolitan area.
76.31 	$75,000 in each year is available for a 
76.32 	transportation research contingent account 
76.33 	to finance research projects that are 
76.34 	reimbursable from the federal government or 
76.35 	from other sources. If the appropriation for 
77.1 	either year is insufficient, the appropriation 
77.2 	for the other year is available for it.
77.3 	$900,000 in each year is available for 
77.4 	grants for transportation studies outside 
77.5 	the metropolitan area to identify critical 
77.6 	concerns, problems, and issues. These 
77.7 	grants are available: (1) to regional 
77.8 	development commissions; (2) in regions 
77.9 	where no regional development commission 
77.10 	is functioning, to joint powers boards 
77.11 	established under agreement of two or 
77.12 	more political subdivisions in the region to 
77.13 	exercise the planning functions of a regional 
77.14 	development commission; and (3) in regions 
77.15 	where no regional development commission 
77.16 	or joint powers board is functioning, to the 
77.17 	department's district office for that region.
77.18 	$75,000 in the first year is from the highway 
77.19 	user tax distribution fund to the commissioner 
77.20 	for a grant to the Humphrey School of Public 
77.21 	Affairs at the University of Minnesota for 
77.22 	WorkPlace Telework program congestion 
77.23 	relief efforts consisting of maintenance of 
77.24 	Web site tools and content. This is a onetime 
77.25 	appropriation and is available in the second 
77.26 	year.

77.27	(c) State Road Construction Activity

77.28
77.29	(1) Economic Recovery Funds - Federal 
Highway Aid
		1,000,000
		1,000,000
	
77.30 	This appropriation is to complete projects 
77.31 	using funds made available to the 
77.32 	commissioner of transportation under 
77.33 	title XII of the American Recovery and 
77.34 	Reinvestment Act of 2009, Public Law 
77.35 	111-5, and implemented under Minnesota 
78.1 	Statutes, section 161.36, subdivision 7. The 
78.2 	base appropriation is $1,000,000 in fiscal 
78.3 	year 2016 and $0 in fiscal year 2017.

78.4
78.5	(2) State Road Construction
		909,400,000
923,400,000
		815,600,000
	
78.6 	It is estimated that these appropriations will 
78.7 	be funded as follows:

78.8	Appropriations by Fund
	
78.978.10
	Federal Highway 
Aid
	489,200,000
	482,200,000
	
78.11
78.12	Highway User Taxes
	420,200,000
434,200,000
	333,400,000
	
78.13 	The commissioner of transportation shall 
78.14 	notify the chairs and ranking minority 
78.15 	members of the legislative committees with 
78.16 	jurisdiction over transportation finance of 
78.17 	any significant events that should cause these 
78.18 	estimates to change.
78.19 	This appropriation is for the actual 
78.20 	construction, reconstruction, and 
78.21 	improvement of trunk highways, including 
78.22 	design-build contracts and consultant usage 
78.23 	to support these activities. This includes the 
78.24 	cost of actual payment to landowners for 
78.25 	lands acquired for highway rights-of-way, 
78.26 	payment to lessees, interest subsidies, and 
78.27 	relocation expenses.
78.28 	The base appropriation for state road 
78.29 	construction for fiscal years 2016 and 2017 
78.30 	is $645,000,000 in each year.
78.31 	$10,000,000 in each year is for the 
78.32 	transportation economic development 
78.33 	program under Minnesota Statutes, section 
78.34 	174.12.
78.35 	The commissioner may expend up to one-half 
78.36 	of one percent of the federal appropriations 
79.1 	under this clause as grants to opportunity 
79.2 	industrialization centers and other nonprofit 
79.3 	job training centers for job training programs 
79.4 	related to highway construction.
79.5 	The commissioner may transfer up to 
79.6 	$15,000,000 each year to the transportation 
79.7 	revolving loan fund.
79.8 	The commissioner may receive money 
79.9 	covering other shares of the cost of 
79.10 	partnership projects. These receipts are 
79.11 	appropriated to the commissioner for these 
79.12 	projects.
79.13 	Notwithstanding subdivision 6, the 
79.14 	commissioner may transfer up to $6,000,000 
79.15 	from the trunk highway fund under this 
79.16 	appropriation to the Stillwater lift bridge 
79.17 	endowment account under Minnesota 
79.18 	Statutes, section 165.15.
79.19 	Of this appropriation, $14,000,000 in the first 
79.20 	year is for the specific improvements to "Old 
79.21 	Highway 14" described in the settlement 
79.22 	agreement and release executed January 
79.23 	7, 2014, between the state and Steele and 
79.24 	Waseca Counties.

79.25	(d) Highway Debt Service
		158,417,000
		189,821,000
	
79.26 	$148,917,000 in the first year and 
79.27 	$180,321,000 in the second year are for 
79.28 	transfer to the state bond fund. If an 
79.29 	appropriation is insufficient to make all 
79.30 	transfers required in the year for which it is 
79.31 	made, the commissioner of management and 
79.32 	budget shall notify the senate Committee 
79.33 	on Finance and the house of representatives 
79.34 	Committee on Ways and Means of the 
79.35 	amount of the deficiency and shall then 
80.1 	transfer that amount under the statutory open 
80.2 	appropriation. Any excess appropriation 
80.3 	cancels to the trunk highway fund.

80.4	(e) Electronic Communications
		5,171,000
		5,171,000

80.5	Appropriations by Fund
	
80.6	General
	3,000
	3,000
	
80.7	Trunk Highway
	5,168,000
	5,168,000
	
80.8 	The general fund appropriation is to equip 
80.9 	and operate the Roosevelt signal tower for 
80.10 	Lake of the Woods weather broadcasting.

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

80.12 	Sec. 13. Laws 2013, chapter 117, article 1, section 4, is amended to read:

80.13
80.14	Sec. 4. METROPOLITAN COUNCIL
 	$
	107,889,000
	$
	76,970,000
76,910,000
	
80.15 	This appropriation is from the general fund 
80.16 	for transit system operations under Minnesota 
80.17 	Statutes, sections 473.371 to 473.449.
80.18 	The base appropriation for fiscal years 2016 
80.19 	and 2017 is $76,686,000 $76,626,000 in 
80.20 	each year.
80.21 	$37,000,000 in the first year is for the 
80.22 	Southwest Corridor light rail transit line 
80.23 	from the Hiawatha light rail transit line in 
80.24 	downtown Minneapolis to Eden Prairie, to be 
80.25 	used for environmental studies, preliminary 
80.26 	engineering, acquisition of real property, or 
80.27 	interests in real property, and design. This 
80.28 	is a onetime appropriation and is available 
80.29 	until expended.

80.30 	Sec. 14. EFFECTIVE DATE; SUPERSEDING PROVISIONS.
 80.31 	Regardless of order of enactment, sections 1 to 5 of this article are not effective if 
80.32 	House File No. 2395 is enacted in the 2014 legislative session.

81.1 	ARTICLE 13
81.2 	RAILROAD AND PIPELINE SAFETY

81.3 	Section 1. Minnesota Statutes 2012, section 115E.01, is amended by adding a 
81.4 	subdivision to read:
81.5 		Subd. 6a.Incident commander. "Incident commander" means the official at the 
81.6 	site of a discharge who has the responsibility for operations at the site, as established 
81.7 	following National Incident Management System guidelines.

81.8 	Sec. 2. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision 
81.9 	to read:
81.10 		Subd. 7a.Listed sensitive area. "Listed sensitive area" means an area or location 
81.11 	listed as an area of special economic or environmental importance in an Area Contingency 
81.12 	Plan or a Sub-Area Contingency Plan prepared under the federal Clean Water Act, United 
81.13 	States Code, title 33, section 1321(j)(4).

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

81.15 	Sec. 3. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision 
81.16 	to read:
81.17 		Subd. 11d.Unit train. "Unit train" means a train with more than 25 tanker railcars 
81.18 	carrying oil or hazardous substance cargo.

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

81.20 	Sec. 4. [115E.042] PREPAREDNESS AND RESPONSE FOR CERTAIN 
81.21 	RAILROADS AND PIPELINES.
81.22 		Subdivision 1.Application. In addition to the requirements of section 115E.04, 
81.23 	a person who owns or operates railroad car rolling stock transporting a unit train must 
81.24 	comply with this section. A person who owns or operates pipeline facilities and is required 
81.25 	to show specific preparedness under section 115E.03, subdivision 2, must comply with 
81.26 	this section as applicable and with the provisions of chapters 299F and 299J.
81.27 		Subd. 2.Training. (a) Each railroad must offer training to each fire department 
81.28 	having jurisdiction along the route of unit trains. Initial training under this subdivision 
81.29 	must be offered to each fire department by June 30, 2016, and refresher training must be 
81.30 	offered to each fire department at least once every three years thereafter.
82.1 	(b) The training must address the general hazards of oil and hazardous substances, 
82.2 	techniques to assess hazards to the environment and to the safety of responders and the 
82.3 	public, factors an incident commander must consider in determining whether to attempt to 
82.4 	suppress a fire or to evacuate the public and emergency responders from an area, and other 
82.5 	strategies for initial response by local emergency responders. The training must include 
82.6 	suggested protocol or practices for local responders to safely accomplish these tasks.
82.7 		Subd. 3.Coordination. Beginning June 30, 2015, each railroad and pipeline 
82.8 	company must communicate at least annually with each county or city emergency 
82.9 	manager and a senior fire department officer of each fire department having jurisdiction 
82.10 	along the route of a unit train or a pipeline to ensure coordination of emergency response 
82.11 	activities between the railroad or pipeline company and local responders.
82.12 		Subd. 4.Response capabilities; time limits; drills. (a) Following confirmation of a 
82.13 	discharge, a railroad or pipeline company must deliver and deploy sufficient equipment 
82.14 	and trained personnel to contain and recover discharged oil or hazardous substances and to 
82.15 	protect the environment and public safety.
82.16 	(b) Within one hour of confirmation of a discharge, a railroad or pipeline company 
82.17 	must provide a qualified company employee to advise the incident commander. The 
82.18 	employee may be made available by telephone, and must be authorized to deploy all 
82.19 	necessary response resources of the railroad or pipeline company.
82.20 	(c) Within three hours of confirmation of a discharge, a railroad or pipeline 
82.21 	company must be capable of delivering monitoring equipment and a trained operator 
82.22 	to assist in protection of responder and public safety. A plan to ensure delivery of 
82.23 	monitoring equipment and an operator to a discharge site must be provided each year to 
82.24 	the commissioner of public safety.
82.25 	(d) Within three hours of confirmation of a discharge, a railroad or pipeline company 
82.26 	must provide qualified personnel at a discharge site to assess the discharge and to advise 
82.27 	the incident commander.
82.28 	(e) A railroad or pipeline company must be capable of deploying containment boom 
82.29 	from land across sewer outfalls, creeks, ditches, and other places where oil or hazardous 
82.30 	substances may drain, in order to contain leaked material before it reaches those resources. 
82.31 	The arrangement to provide containment boom and staff may be made by:
82.32 	(1) training and caching equipment with local jurisdictions;
82.33 	(2) training and caching equipment with a fire mutual-aid group;
82.34 	(3) means of an industry cooperative or mutual-aid group;
82.35 	(4) deployment of a contractor;
82.36 	(5) deployment of a response organization under state contract; or
83.1 	(6) other dependable means acceptable to the Pollution Control Agency.
83.2 	(f) Each arrangement under paragraph (e) must be confirmed each year. Each 
83.3 	arrangement must be tested by drill at least once every five years.
83.4 	(g) Within eight hours of confirmation of a discharge, a railroad or pipeline company 
83.5 	must be capable of delivering and deploying oil spill containment booms, boats, oil 
83.6 	recovery equipment, trained staff, and all other materials needed to provide:
83.7 	(1) on-site containment and recovery of a volume of oil equal to ten percent of the 
83.8 	calculated worst case discharge at any location along the route; and
83.9 	(2) protection of listed sensitive areas and potable water intakes within one mile of 
83.10 	a discharge site and within eight hours of water travel time downstream in any river 
83.11 	or stream that the right-of-way intersects.
83.12 	(h) Within 60 hours of confirmation of a discharge, a railroad or pipeline company 
83.13 	must be capable of delivering and deploying additional oil spill containment booms, 
83.14 	boats, oil recovery equipment, trained staff, and all other materials needed to provide 
83.15 	containment and recovery of a worst-case oil discharge and to protect listed sensitive areas 
83.16 	and potable water intakes at any location along the route.
83.17 	(i) Each railroad and pipeline must conduct at least one oil containment, recovery, 
83.18 	and sensitive area protection drill every three years, at a location and time chosen by the 
83.19 	Pollution Control Agency.
83.20 		Subd. 5.Prevention and response plans. (a) By June 30, 2015, a railroad or 
83.21 	pipeline company shall submit the prevention and response plan required under section 
83.22 	115E.04, as necessary to comply with the requirements of this section, to the commissioner 
83.23 	of the Pollution Control Agency on a form designated by the commissioner.
83.24 	(b) By June 30 of every third year following a plan submission under this 
83.25 	subdivision, a railroad and pipeline company must update and resubmit the prevention and 
83.26 	response plan to the commissioner.

83.27 	EFFECTIVE DATE. Subdivisions 1 to 3 and 5 are effective the day following final 
83.28 	enactment. Subdivision 4 is effective July 1, 2015.

83.29 	Sec. 5. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision 
83.30 	to read:
83.31 		Subd. 3a.Railroad and pipeline preparedness; pollution control. The Pollution 
83.32 	Control Agency shall carry out environmental protection activities related to railroad 
83.33 	and pipeline discharge preparedness. Duties under this subdivision include, but are not 
83.34 	limited to:
84.1 	(1) assisting local emergency managers and fire officials in understanding the 
84.2 	hazards of oil and hazardous substances, as well as general strategies for containment and 
84.3 	environmental protection;
84.4 	(2) assisting railroads and pipeline companies to identify natural resources and 
84.5 	sensitive areas, and to devise strategies to contain and recover oil and hazardous 
84.6 	substances from land and waters along routes;
84.7 	(3) facilitating cooperation between railroad and pipeline companies for mutual aid 
84.8 	arrangements that provide training, staff, and equipment as required by this chapter;
84.9 	(4) participating in drills and training sessions;
84.10 	(5) reviewing each railroad and pipeline company's prevention and response plans 
84.11 	for compliance with the requirements of this chapter, and assessing each company's 
84.12 	readiness to protect the environment;
84.13 	(6) conducting inspections and drills as necessary to determine the railroad or 
84.14 	pipeline company's compliance with the requirements of this chapter and ability to protect 
84.15 	the environment; and
84.16 	(7) conducting follow-up corrective action directives, orders, and enforcement as 
84.17 	necessary based on a finding of inadequate environmental protection preparedness.

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

84.19 	Sec. 6. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision 
84.20 	to read:
84.21 		Subd. 3b.Railroad and pipeline preparedness; public safety. The commissioner 
84.22 	of public safety shall carry out public safety protection activities related to railroad and 
84.23 	pipeline spill and discharge preparedness. Duties under this subdivision include, but 
84.24 	are not limited to:
84.25 	(1) assisting local emergency managers and fire officials to understand the hazards 
84.26 	of oil and hazardous substances, as well as general strategies for hazard identification, 
84.27 	initial isolation, and other actions necessary to ensure public safety;
84.28 	(2) assisting railroads and pipeline companies to develop suggested protocols and 
84.29 	practices for local first responder use in protecting the public's safety;
84.30 	(3) facilitating cooperation between railroads, pipeline companies, county and city 
84.31 	emergency managers, and other public safety organizations;
84.32 	(4) participating in major exercises and training sessions;
84.33 	(5) assisting local units of government to incorporate railroad and pipeline hazard 
84.34 	and response information into local emergency operations plans;
85.1 	(6) monitoring the public safety-related training and planning requirements of 
85.2 	section 115E.03; and
85.3 	(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.

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

85.5 	Sec. 7. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
85.6 		Subdivision 1.Position Positions established; duties. (a) The commissioner of 
85.7 	transportation shall establish a position of three state rail safety inspector positions in 
85.8 	the Office of Freight and Commercial Vehicle Operations of the Minnesota Department 
85.9 	of Transportation. On or after July 1, 2015, the commissioner may establish a fourth 
85.10 	state rail safety inspector position following consultation with railroad companies.
85.11 	 The commissioner shall apply to and enter into agreements with the Federal Railroad 
85.12 	Administration (FRA) of the United States Department of Transportation to participate 
85.13 	in the federal State Rail Safety Partnership Participation Program for training and 
85.14 	certification of an inspector under authority of United States Code, title 49, sections 20103, 
85.15 	20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
85.16 	The (b) A state rail safety inspector shall inspect mainline track, secondary track, and 
85.17 	yard and industry track; inspect railroad right-of-way, including adjacent or intersecting 
85.18 	drainage, culverts, bridges, overhead structures, and traffic and other public crossings; 
85.19 	inspect yards and physical plants; review and enforce safety requirements; review 
85.20 	maintenance and repair records; and review railroad security measures.
85.21 	(c) A state rail safety inspector may perform, but is not limited to, the duties 
85.22 	described in the federal State Rail Safety Participation Program. An inspector may train, 
85.23 	be certified, and participate in any of the federal State Rail Safety Participation Program 
85.24 	disciplines, including track, signal and train control, motive power and equipment, 
85.25 	operating practices compliance, hazardous materials, and highway-rail grade crossings.
85.26 	(d) To the extent delegated by the Federal Railroad Administration and authorized
85.27 	 by the commissioner, the an inspector may issue citations for violations of this chapter, or 
85.28 	to ensure railroad employee and public safety and welfare.

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

85.30 	Sec. 8. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
85.31 		Subd. 2.Railroad company assessment; account; appropriation. (a) As provided 
85.32 	in this subdivision, the commissioner shall annually assess railroad companies that are 
85.33 	(1) defined as common carriers under section 218.011,; (2) classified by federal law or 
86.1 	regulation as Class I Railroads,or Class I Rail Carriers, Class II Railroads, or Class II Rail 
86.2 	Carriers; and (3) operating in this state,.
86.3 	(b) The assessment must be by a division of state rail safety inspector program costs 
86.4 	in equal proportion between carriers based on route miles operated in Minnesota, assessed 
86.5 	in equal amounts for 365 days of the calendar year. The commissioner shall assess all 
86.6 	start-up or re-establishment costs, and all related costs of initiating the state rail safety 
86.7 	inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties 
86.8 	must begin and be assessed on January 1, 2009.
86.9 	(c) The assessments must be deposited in a special account in the special revenue 
86.10 	fund, to be known as the state rail safety inspection account. Money in the account is 
86.11 	appropriated to the commissioner and may be expended to cover the costs incurred for the 
86.12 	establishment and ongoing responsibilities of the state rail safety inspector program.

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

86.14 	Sec. 9. [299A.55] RAILROAD AND PIPELINE SAFETY; OIL AND OTHER 
86.15 	HAZARDOUS MATERIALS.
86.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
86.17 	have the meanings given.
86.18 	(b) "Applicable rail carrier" means a railroad company that is subject to an 
86.19 	assessment under section 219.015, subdivision 2.
86.20 	(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
86.21 	(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
86.22 	(e) "Pipeline company" means any individual, partnership, association, or public 
86.23 	or private corporation required to show specific preparedness under section 115E.03, 
86.24 	subdivision 2.
86.25 		Subd. 2.Railroad and pipeline safety account. (a) A railroad and pipeline safety 
86.26 	account is created in the special revenue fund. The account consists of funds collected 
86.27 	under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the 
86.28 	account.
86.29 	(b) $208,000 is annually appropriated to the commissioner of the Pollution Control 
86.30 	Agency for environmental protection activities related to railroad and pipeline discharge 
86.31 	preparedness under chapter 115E.
86.32 	(c) Following the appropriation in paragraph (b), the remaining money in the 
86.33 	account is annually appropriated to the commissioner of public safety for the purposes 
86.34 	specified in subdivision 3.
87.1 		Subd. 3.Allocation of railroad and pipeline safety funds. (a) Subject to funding 
87.2 	appropriated for this subdivision, the commissioner shall provide funds for training and 
87.3 	response preparedness related to (1) derailments, discharge incidents, or spills involving 
87.4 	trains carrying oil or other hazardous substances, and (2) pipeline discharge incidents or 
87.5 	spills involving oil or other hazardous substances.
87.6 	(b) The commissioner shall allocate available funds to the Board of Firefighter 
87.7 	Training and Education under section 299N.02 and the Division of Homeland Security 
87.8 	and Emergency Management.
87.9 	(c) Prior to making allocations under paragraph (b), the commissioner shall consult 
87.10 	with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
87.11 	(d) The commissioner and the entities identified in paragraph (b) shall prioritize 
87.12 	uses of funds based on:
87.13 	(1) firefighter training needs;
87.14 	(2) community risk from discharge incidents or spills;
87.15 	(3) geographic balance; and
87.16 	(4) recommendations of the Fire Service Advisory Committee.
87.17 	(e) The following are permissible uses of funds provided under this subdivision:
87.18 	(1) training costs, which may include but are not limited to training curriculum, 
87.19 	trainers, trainee overtime salary, other personnel overtime salary, and tuition;
87.20 	(2) costs of gear and equipment related to hazardous materials readiness, response, 
87.21 	and management, which may include but is not limited to original purchase, maintenance, 
87.22 	and replacement;
87.23 	(3) supplies related to the uses under clauses (1) and (2); and
87.24 	(4) emergency preparedness planning and coordination.
87.25 	(f) Notwithstanding paragraph (b), from funds in the railroad and pipeline safety 
87.26 	account provided for the purposes under this subdivision, the commissioner may retain a 
87.27 	balance in the account for budgeting in subsequent fiscal years.
87.28 		Subd. 4.Assessments; oil and hazardous substances. (a) The commissioner of 
87.29 	public safety shall annually assess $2,500,000 to railroad and pipeline companies based on 
87.30 	the formula specified in paragraph (b). The commissioner shall deposit funds collected 
87.31 	under this subdivision in the railroad and pipeline safety account under subdivision 2.
87.32 	(b) The assessment for each railroad is 50 percent of the total annual assessment 
87.33 	amount, divided in equal proportion between applicable rail carriers based on route miles 
87.34 	operated in Minnesota. The assessment for each pipeline company is 50 percent of the 
87.35 	total annual assessment amount, divided in equal proportion between companies based on 
88.1 	the yearly aggregate gallons of oil and hazardous substance transported in Minnesota. The 
88.2 	assessment must be in equal amounts for each day of the fiscal year.
88.3 	(c) The assessments under this subdivision expire July 1, 2019.

88.4 	Sec. 10. REPORTS ON INCIDENT PREPAREDNESS FOR OIL AND OTHER 
88.5 	HAZARDOUS MATERIALS TRANSPORTATION.
 88.6 		Subdivision 1.Report on response preparedness. By January 15, 2015, the 
88.7 	commissioner of public safety shall submit a report on emergency response preparedness 
88.8 	in the public and private sectors for incidents involving oil and other hazardous materials 
88.9 	transported by rail and pipeline to the chairs and ranking minority members of the 
88.10 	legislative committees with jurisdiction over transportation and public safety policy and 
88.11 	finance. At a minimum, the report must:
88.12 	(1) summarize the preparedness and emergency response framework in the state;
88.13 	(2) provide an assessment of costs and needs of fire departments and other 
88.14 	emergency first responders for training and equipment to respond to discharge or spill 
88.15 	incidents involving oil and other hazardous materials transported by rail and pipeline;
88.16 	(3) develop a comprehensive public and private response capacity inventory that, 
88.17 	to the extent feasible, includes statewide identification of major emergency response 
88.18 	equipment, equipment staging locations, mutual aid agreements, and capacities across 
88.19 	industries involved in transportation and storage of oil and other hazardous materials;
88.20 	(4) provide information and analysis that forms the basis for allocation of funds 
88.21 	under Minnesota Statutes, section 299A.55;
88.22 	(5) develop benchmarks or assessment criteria for the evaluation under subdivision 2;
88.23 	(6) assist in long-range oil and other hazardous materials incident preparedness 
88.24 	planning; and
88.25 	(7) make recommendations for any legislative changes.
88.26 		Subd. 2.Evaluation of response preparedness and funding. By November 1, 
88.27 	2017, the commissioner of public safety shall submit an evaluation of railroad and pipeline 
88.28 	safety preparedness and funding related to incidents involving oil and other hazardous 
88.29 	materials to the chairs and ranking minority members of the legislative committees with 
88.30 	jurisdiction over transportation and public safety policy and finance. At a minimum, 
88.31 	the evaluation must:
88.32 	(1) provide an update to the report under subdivision 1 that identifies notable 
88.33 	changes and provides updated information as appropriate;
89.1 	(2) evaluate the effectiveness of training and response preparedness activities under 
89.2 	Minnesota Statutes, section 299A.55, using the criteria established under subdivision 
89.3 	1, clause (5);
89.4 	(3) identify current sources of funds, funding levels, and any unfunded needs for 
89.5 	preparedness activities;
89.6 	(4) analyze equity in the distribution of funding sources for preparedness activities, 
89.7 	which must include but is not limited to (i) examination of the public-private partnership 
89.8 	financing model, and (ii) review of balance across industries involved in storage and 
89.9 	distribution of oil and other hazardous materials; and
89.10 	(5) make recommendations for any programmatic or legislative changes.

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

89.12 	Sec. 11. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND 
89.13 	RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS 
89.14 	TRANSPORTATION.
 89.15 	(a) The commissioner of transportation shall conduct a study on highway-rail grade 
89.16 	crossing improvement for oil and other hazardous materials transported by rail, and on 
89.17 	rail safety. At a minimum, the study must:
89.18 	(1) provide information that assists in risk management associated with 
89.19 	transportation of oil and other hazardous materials by rail;
89.20 	(2) develop criteria to prioritize needs and improvements at highway-rail grade 
89.21 	crossings;
89.22 	(3) consider alternatives for safety improvements, including but not limited to active 
89.23 	warning devices such as gates and signals, closings, and grade separation;
89.24 	(4) provide findings and recommendations that serve to direct accelerated 
89.25 	investments in highway-rail grade crossing safety improvements; and
89.26 	(5) analyze state inspection activities and staffing for track and hazardous materials 
89.27 	under Minnesota Statutes, section 219.015.
89.28 	(b) The commissioner shall submit an interim update on the study by August 31, 
89.29 	2014, and a final report by October 31, 2014, to the chairs and ranking minority members 
89.30 	of the legislative committees with jurisdiction over transportation policy and finance.

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

90.1 	ARTICLE 14
90.2 	TRANSPORTATION FINANCE PROVISIONS

90.3 	Section 1. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
90.4 		Subd. 2.Use of funds. (a) Income derived from the investment of principal in the 
90.5 	account may be used by the commissioner of transportation for operations and routine 
90.6 	maintenance, including bridge safety inspections and reactive repairs, of the Stillwater 
90.7 	lift bridge. No money from this account may be used for any purposes except those 
90.8 	described in this section, and no money from this account may be transferred to any 
90.9 	other account in the state treasury without specific legislative authorization. Any money 
90.10 	transferred from the trunk highway fund may only be used for trunk highway purposes.
90.11 	 For the purposes of this section:
90.12 	(1) "Income" is the amount of interest on debt securities and dividends on equity 
90.13 	securities. Any gains or losses from the sale of securities must be added to the principal 
90.14 	of the account.
90.15 	(2) "Routine maintenance" means activities that are predictable and repetitive, but 
90.16 	not activities that would constitute major repairs or rehabilitation.
90.17 	(b) Investment management fees incurred by the State Board of Investment are 
90.18 	eligible expenses for reimbursement from the account.
90.19 	(c) The commissioner of transportation has authority to approve or deny expenditures 
90.20 	of funds in the account.

90.21 	Sec. 2. Minnesota Statutes 2013 Supplement, section 168.123, subdivision 2, is 
90.22 	amended to read:
90.23 		Subd. 2.Design. (a) The commissioner of veterans affairs shall design the emblem 
90.24 	for the veterans' special plates, subject to the approval of the commissioner, that satisfy the 
90.25 	following requirements:
90.26 	(a) (b) For a Vietnam veteran who served after July 1, 1961, and before July 1, 1978, 
90.27 	in the active military service in a branch of the armed forces of the United States or a 
90.28 	nation or society allied with the United States the special plates must bear the inscription 
90.29 	"VIETNAM VET."
90.30 	(b) (c) For a veteran stationed on the island of Oahu, Hawaii, or offshore, during the 
90.31 	attack on Pearl Harbor on December 7, 1941, the special plates must bear the inscription 
90.32 	"PEARL HARBOR SURVIVOR."
90.33 	(c) (d) For a veteran who served during World War II, the plates must bear the 
90.34 	inscription "WORLD WAR VET."
91.1 	(d) (e) For a veteran who served during the Korean Conflict, the special plates 
91.2 	must bear the inscription "KOREAN VET."
91.3 	(e) (f) For a combat wounded veteran who is a recipient of the Purple Heart medal, 
91.4 	the plates must bear the inscription "COMBAT WOUNDED VET" and have a facsimile 
91.5 	or an emblem of the official Purple Heart medal.
91.6 	A member of the United States armed forces who is serving actively in the military 
91.7 	and who is a recipient of the Purple Heart medal is also eligible for this license plate. 
91.8 	The commissioner of public safety shall ensure that information regarding the required 
91.9 	proof of eligibility for any applicant under this paragraph who has not yet been issued 
91.10 	military discharge papers is distributed to the public officials responsible for administering 
91.11 	this section.
91.12 	(f) (g) For a Persian Gulf War veteran, the plates must bear the inscription "GULF 
91.13 	WAR VET." For the purposes of this section, "Persian Gulf War veteran" means a person 
91.14 	who served on active duty after August 1, 1990, in a branch of the armed forces of the 
91.15 	United States or a nation or society allied with the United States or the United Nations 
91.16 	during Operation Desert Shield, Operation Desert Storm, or other military operation in 
91.17 	the Persian Gulf area combat zone as designated in United States Presidential Executive 
91.18 	Order No. 12744, dated January 21, 1991.
91.19 	(g) (h) For a veteran who served in the Laos War after July 1, 1961, and before July 
91.20 	1, 1978, the special plates must bear the inscription "LAOS WAR VET."
91.21 	(h) (i) For a veteran who is the recipient of:
91.22 	(1) the Iraq Campaign Medal, the special plates must be inscribed with a facsimile of 
91.23 	that medal and must bear the inscription "IRAQ WAR VET" directly below the special 
91.24 	plate number;
91.25 	(2) the Afghanistan Campaign Medal, the special plates must be inscribed with a 
91.26 	facsimile of that medal and must bear the inscription "AFGHAN WAR VET" directly 
91.27 	below the special plate number;
91.28 	(3) the Global War on Terrorism Expeditionary Medal, the special plates must 
91.29 	be inscribed with a facsimile of that medal and must bear the inscription "GWOT 
91.30 	VETERAN" directly below the special plate number; or
91.31 	(4) the Armed Forces Expeditionary Medal, the special plates must bear an 
91.32 	appropriate inscription that includes a facsimile of that medal.
91.33 	(i) (j) For a veteran who is the recipient of the Global War on Terrorism Service 
91.34 	Medal, the special plates must be inscribed with a facsimile of that medal and must bear 
91.35 	the inscription "GWOT VETERAN" directly below the special plate number. In addition, 
91.36 	any member of the National Guard or other military reserves who has been ordered to 
92.1 	federally funded state active service under United States Code, title 32, as defined in 
92.2 	section 190.05, subdivision 5b, and who is the recipient of the Global War on Terrorism 
92.3 	Service Medal, is eligible for the license plate described in this paragraph, irrespective of 
92.4 	whether that person qualifies as a veteran under section 197.447.
92.5 	(j) (k) For a veteran who is the recipient of the Korean Defense Service Medal, 
92.6 	the special plates must be inscribed with a facsimile of that medal and must bear the 
92.7 	inscription "KOREAN DEFENSE SERVICE" directly below the special plate number.
92.8 	(k) (l) For a veteran who is a recipient of the Bronze Star medal, the plates must 
92.9 	bear the inscription "BRONZE STAR VET" and have a facsimile or an emblem of the 
92.10 	official Bronze Star medal.
92.11 	(l) (m) For a veteran who is a recipient of the Silver Star medal, the plates must bear 
92.12 	the inscription "SILVER STAR VET" and have a facsimile or an emblem of the official 
92.13 	Silver Star medal.
92.14 	(n) For a woman veteran, the plates must bear the inscription "WOMAN 
92.15 	VETERAN" and have a facsimile or an emblem as designated by the commissioners of 
92.16 	veterans affairs and public safety.

92.17 	EFFECTIVE DATE. This section is effective January 1, 2015.

92.18 	Sec. 3. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision 
92.19 	to read:
92.20 		Subd. 7.Expiration date. Upon request of the permit applicant, the expiration 
92.21 	date for a permit issued under this section must be the same as the expiration date of the 
92.22 	permitted vehicle's registration.

92.23 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
92.24 	to permits issued on and after that date.

92.25 	Sec. 4. Minnesota Statutes 2012, section 169.8261, is amended by adding a subdivision 
92.26 	to read:
92.27 		Subd. 3.Expiration date. Upon request of the permit applicant, the expiration 
92.28 	date for a permit issued under this section must be the same as the expiration date of the 
92.29 	permitted vehicle's registration.

92.30 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
92.31 	to permits issued on and after that date.

92.32 	Sec. 5. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
93.1 		Subd. 5.Fees; proceeds deposited; appropriation. The commissioner, with 
93.2 	respect to highways under the commissioner's jurisdiction, may charge a fee for each 
93.3 	permit issued. The fee for an annual permit that expires by law on the date of the 
93.4 	vehicle registration expiration must be based on the proportion of the year that remains 
93.5 	until the expiration date. Unless otherwise specified, all fees for permits issued by the 
93.6 	commissioner of transportation must be deposited in the state treasury and credited to 
93.7 	the trunk highway fund. Except for those annual permits for which the permit fees are 
93.8 	specified elsewhere in this chapter, the fees are:
93.9 	(a) $15 for each single trip permit.
93.10 	(b) $36 for each job permit. A job permit may be issued for like loads carried on 
93.11 	a specific route for a period not to exceed two months. "Like loads" means loads of the 
93.12 	same product, weight, and dimension.
93.13 	(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive 
93.14 	months. Annual permits may be issued for:
93.15 	(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety 
93.16 	or well-being of the public;
93.17 	(2) motor vehicles that travel on interstate highways and carry loads authorized 
93.18 	under subdivision 1a;
93.19 	(3) motor vehicles operating with gross weights authorized under section 169.826, 
93.20 	subdivision 1a;
93.21 	(4) special pulpwood vehicles described in section 169.863;
93.22 	(5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
93.23 	(6) noncommercial transportation of a boat by the owner or user of the boat;
93.24 	(7) motor vehicles carrying bales of agricultural products authorized under section 
93.25 	169.862; and
93.26 	(8) special milk-hauling vehicles authorized under section 169.867.
93.27 	(d) $120 for an oversize annual permit to be issued for a period not to exceed 12 
93.28 	consecutive months. Annual permits may be issued for:
93.29 	(1) mobile cranes;
93.30 	(2) construction equipment, machinery, and supplies;
93.31 	(3) manufactured homes and manufactured storage buildings;
93.32 	(4) implements of husbandry;
93.33 	(5) double-deck buses;
93.34 	(6) commercial boat hauling and transporting waterfront structures, including, but 
93.35 	not limited to, portable boat docks and boat lifts;
94.1 	(7) three-vehicle combinations consisting of two empty, newly manufactured trailers 
94.2 	for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however, 
94.3 	the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer 
94.4 	only while operating on twin-trailer routes designated under section 169.81, subdivision 3, 
94.5 	paragraph (c); and
94.6 	(8) vehicles operating on that portion of marked Trunk Highway 36 described in 
94.7 	section 169.81, subdivision 3, paragraph (e).
94.8 	(e) For vehicles that have axle weights exceeding the weight limitations of sections 
94.9 	169.823 to 169.829, an additional cost added to the fees listed above. However, this 
94.10 	paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph 
94.11 	(b), but only when the vehicle exceeds its gross weight allowance set forth in that 
94.12 	paragraph, and then the additional cost is for all weight, including the allowance weight, 
94.13 	in excess of the permitted maximum axle weight. The additional cost is equal to the 
94.14 	product of the distance traveled times the sum of the overweight axle group cost factors 
94.15 	shown in the following chart:

94.16		Overweight Axle Group Cost Factors
		
94.17	Weight (pounds)
		Cost Per Mile For Each Group Of:
	
94.18
94.19
94.20
94.21
94.22	exceeding weight 
limitations on axles
		Two 
consecutive 
axles spaced 
within 8 feet 
or less
		Three 
consecutive 
axles spaced 
within 9 feet 
or less
		Four consecutive 
axles spaced within 
14 feet or less
	
94.23	0-2,000
		.12
		.05
		.04
	
94.24	2,001-4,000
		.14
		.06
		.05
	
94.25	4,001-6,000
		.18
		.07
		.06
	
94.26	6,001-8,000
		.21
		.09
		.07
	
94.27	8,001-10,000
		.26
		.10
		.08
	
94.28	10,001-12,000
		.30
		.12
		.09
	
94.29
94.30	12,001-14,000
		Not 
permitted
		.14
		.11
	
94.31
94.32	14,001-16,000
		Not 
permitted
		.17
		.12
	
94.33
94.34	16,001-18,000
		Not 
permitted
		.19
		.15
	
94.35
94.36	18,001-20,000
		Not 
permitted
		Not 
permitted
		.16
	
94.37
94.38	20,001-22,000
		Not 
permitted
		Not 
permitted
		.20
	
94.39 	The amounts added are rounded to the nearest cent for each axle or axle group. The 
94.40 	additional cost does not apply to paragraph (c), clauses (1) and (3).
95.1 	For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile 
95.2 	fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed 
95.3 	in addition to the normal permit fee. Miles must be calculated based on the distance 
95.4 	already traveled in the state plus the distance from the point of detection to a transportation 
95.5 	loading site or unloading site within the state or to the point of exit from the state.
95.6 	(f) As an alternative to paragraph (e), an annual permit may be issued for overweight, 
95.7 	or oversize and overweight, mobile cranes; construction equipment, machinery, and 
95.8 	supplies; implements of husbandry; and commercial boat hauling. The fees for the permit 
95.9 	are as follows:

95.10	Gross Weight (pounds) of Vehicle
	Annual Permit Fee 
	
95.11	90,000
	or less 
	$200
	
95.12	90,001
	- 100,000
	$300
	
95.13	100,001
	- 110,000
	$400
	
95.14	110,001
	- 120,000
	$500
	
95.15	120,001
	- 130,000
	$600
	
95.16	130,001
	- 140,000
	$700
	
95.17	140,001
	- 145,000
	$800
	
95.18	145,001
	- 155,000
	$900
	
95.19 	If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined 
95.20 	under paragraph (e).
95.21 	(g) For vehicles which exceed the width limitations set forth in section 169.80 by 
95.22 	more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) 
95.23 	when the permit is issued while seasonal load restrictions pursuant to section 169.87 are 
95.24 	in effect.
95.25 	(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for 
95.26 	refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on 
95.27 	a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828, 
95.28 	subdivision 2, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds 
95.29 	on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
95.30 	(i) $300 for a motor vehicle described in section 169.8261. The fee under this 
95.31 	paragraph must be deposited as follows:
95.32 	(1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for 
95.33 	costs related to administering the permit program and inspecting and posting bridges; and
95.34 	(2) all remaining money in each fiscal year must be deposited in the bridge 
95.35 	inspection and signing account as provided under subdivision 5b.
95.36 	(j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating 
95.37 	under authority of section 169.824, subdivision 2, paragraph (a), clause (2).

96.1 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
96.2 	to permits issued on and after that date.

96.3 	Sec. 6. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision 
96.4 	to read:
96.5 		Subd. 3.Expiration date. Upon request of the permit applicant, the expiration 
96.6 	date for a permit issued under this section must be the same as the expiration date of the 
96.7 	permitted vehicle's registration.

96.8 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
96.9 	to permits issued on and after that date.

96.10 	Sec. 7. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
96.11 		Subdivision 1.Six-axle vehicles. (a) A road authority may issue an annual permit 
96.12 	authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw 
96.13 	or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
96.14 	(1) 90,000 pounds; and
96.15 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
96.16 	subdivision 1.
96.17 	(b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or 
96.18 	combination of vehicles operated under this subdivision and transporting only sealed 
96.19 	intermodal containers may be operated on an interstate highway if allowed by the United 
96.20 	States Department of Transportation.
96.21 	(c) The fee for a permit issued under this subdivision is $300, or a proportional 
96.22 	amount as provided in section 169.86, subdivision 5.

96.23 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
96.24 	to permits issued on and after that date.

96.25 	Sec. 8. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
96.26 		Subd. 2.Seven-axle vehicles. (a) A road authority may issue an annual permit 
96.27 	authorizing a vehicle or combination of vehicles with a total of seven or more axles to 
96.28 	haul raw or unprocessed agricultural products and be operated with a gross vehicle weight 
96.29 	of up to:
96.30 	(1) 97,000 pounds; and
96.31 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
96.32 	subdivision 1.
97.1 	(b) Drivers of vehicles operating under this subdivision must comply with driver 
97.2 	qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code 
97.3 	of Federal Regulations, title 49, parts 40 and 382.
97.4 	(c) The fee for a permit issued under this subdivision is $500, or a proportional 
97.5 	amount as provided in section 169.86, subdivision 5.

97.6 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
97.7 	to permits issued on and after that date.

97.8 	Sec. 9. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision 
97.9 	to read:
97.10 		Subd. 5.Expiration date. Upon request of the permit applicant, the expiration 
97.11 	date for a permit issued under this section must be the same as the expiration date of the 
97.12 	permitted vehicle's registration.

97.13 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
97.14 	to permits issued on and after that date.

97.15 	Sec. 10. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
97.16 		Subd. 3.Permit fee; appropriation. Vehicle permits issued under subdivision 1 
97.17 	must be annual permits. The fee is $850 for each vehicle, or a proportional amount as 
97.18 	provided in section 169.86, subdivision 5, and must be deposited in the trunk highway 
97.19 	fund. An amount sufficient to administer the permit program is appropriated from the 
97.20 	trunk highway fund to the commissioner for the costs of administering the permit program.

97.21 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
97.22 	to permits issued on and after that date.

97.23 	Sec. 11. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision 
97.24 	to read:
97.25 		Subd. 4.Expiration date. Upon request of the permit applicant, the expiration 
97.26 	date for a permit issued under this section must be the same as the expiration date of the 
97.27 	permitted vehicle's registration.

97.28 	EFFECTIVE DATE. This section is effective November 30, 2016, and applies 
97.29 	to permits issued on and after that date.

98.1 	Sec. 12. Minnesota Statutes 2012, section 174.24, is amended by adding a subdivision 
98.2 	to read:
98.3 		Subd. 8.Transit service on election day. An eligible recipient of operating 
98.4 	assistance under this section who contracts or has contracted to provide fixed route public 
98.5 	transit shall provide fixed route public transit service free of charge on a day a state 
98.6 	general election is held.

98.7 	EFFECTIVE DATE. This section is effective July 1, 2014, and expires November 
98.8 	5, 2014.

98.9 	Sec. 13. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is 
98.10 	amended to read:
98.11 		Subd. 2.Funding requirement. In each federal fiscal year, the commissioner 
98.12 	shall obtain a total amount in federal authorizations for reimbursement on transportation 
98.13 	alternatives projects that is equal to or greater than the annual average of federal 
98.14 	authorizations on transportation alternatives projects calculated over the preceding four
98.15 	 federal fiscal years 2009 to 2012.

98.16 	EFFECTIVE DATE. This section is effective the day following final enactment and 
98.17 	applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

98.18 	Sec. 14. [219.375] RAILROAD YARD LIGHTING.
98.19 		Subdivision 1.General requirements. (a) All railroad common carriers, and their 
98.20 	officers, agents, and employees, operating a railroad in this state are required to maintain 
98.21 	lighting between sunset and sunrise above switches in railroad yards where:
98.22 	(1) cars or locomotives are switched or inspected; or
98.23 	(2) cars are switched to assemble or disassemble trains.
98.24 	(b) Railroad common carriers shall provide lighting adjacent to those portions of 
98.25 	railroad yard tracks where railroad common carrier employees frequently work on the 
98.26 	ground performing switching, inspection, and repair activities. For purposes of this 
98.27 	section, "frequently work" means at least five days per week.
98.28 	(c) Railroad yard lighting over switches and inspection areas must:
98.29 	(1) conform with the guidelines set forth by the American Railway Engineering 
98.30 	and Manufacturing Association (AREMA);
98.31 	(2) include at least one lighting source for each two-yard track switch segment; and
98.32 	(3) be displayed from a height of at least 30 feet above the railroad yard lead-track 
98.33 	area.
99.1 	(d) Lighting over switches and other light sources within railroad yards or at other 
99.2 	railroad locations must be:
99.3 	(1) maintained to illuminate as designed;
99.4 	(2) compliant with the National Electrical Code;
99.5 	(3) kept clear of obstructions; and
99.6 	(4) focused on the railroad common carrier property designed to be illuminated.
99.7 	(e) The energy source for lighting is permitted, though not required, to:
99.8 	(1) be direct wired from a carrier facility power source, have solar panel power with 
99.9 	a battery storage source, or have another constant energy source; or
99.10 	(2) be designed to have standard or light-emitting diode fixtures or electrical circuits 
99.11 	that include power saving or ambient atmosphere actuating switches.
99.12 	(f) Railroad common carriers must replace damaged or nonoperative lighting within 
99.13 	48 hours after light source damage has been reported to the carrier.
99.14 		Subd. 2.Allowances for unusual conditions. Railroad common carriers are not 
99.15 	required to comply with the requirements of this section during:
99.16 	(1) maintenance activities;
99.17 	(2) derailments;
99.18 	(3) any period of heavy rain or snow, washouts, or similar weather or seismic 
99.19 	conditions; or 
99.20 	(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no 
99.21 	longer than is necessary to achieve compliance with this section.
99.22 		Subd. 3.Lighting orders; commissioner authority. (a) When the commissioner 
99.23 	finds that railroad common carrier employees who frequently work adjacent to a portion 
99.24 	of track performing switching, inspection, maintenance, repair, or fueling activities are 
99.25 	exposed to hazard resulting from the lack of lighting, or to the condition of lighting 
99.26 	constructed before July 1, 2014, the commissioner may order a railroad common carrier 
99.27 	to construct lighting adjacent to a portion of track where employees are performing 
99.28 	switching, inspection, maintenance, repair, or fueling activities, or require a railroad 
99.29 	common carrier to modify existing  lighting to conform with the standards set forth by 
99.30 	AREMA lighting standards, within a reasonable period of time.
99.31 	(b) A railroad common carrier, person, or corporation may appeal an order under this 
99.32 	subdivision. An appeal under this paragraph is subject to the processes and requirements 
99.33 	of chapter 14.
99.34 		Subd. 4.Failure to correct. If a railroad common carrier, person, or corporation 
99.35 	fails to correct a violation of this section within the time provided in an order issued by 
99.36 	the commissioner of transportation under subdivision 3, and the railroad common carrier, 
100.1 	person, or corporation does  not appeal the order, the failure to correct the violation as 
100.2 	ordered by the commissioner constitutes a new and separate offense distinct from the 
100.3 	original violation of this section.
100.4 		Subd. 5.Complaints. No formal complaint of an alleged violation of this section 
100.5 	may be filed until the filing party has attempted to address the alleged violations with the 
100.6 	railroad common carrier. Any complaint of an alleged  violation must contain a written 
100.7 	statement that the filing party has made a reasonable, good faith attempt to address the 
100.8 	alleged violation. 
100.9 		Subd. 6.Waiver. Upon written request of a railroad common carrier, the 
100.10 	commissioner of transportation may waive any portion of this section if conditions do 
100.11 	not reasonably permit compliance. The commissioner's decision is subject to section 
100.12 	218.041, and must include an on-site inspection of the area for which the waiver has 
100.13 	been requested. The inspection shall occur between sunset and sunrise, and all parties of 
100.14 	interest shall be permitted to attend.
100.15 		Subd. 7.Violations and penalties.  A railroad common carrier, corporation, or 
100.16 	person who violates this section is subject to a penalty not to exceed $500 for each violation.
100.17 		Subd. 8.Exceptions; applicability. (a) This section establishes minimum standards 
100.18 	for railroad yard lighting. Nothing in this section shall be construed to preclude design of 
100.19 	railroad yard towers with multiple lighting sources, a brighter lighting design, or other 
100.20 	features that exceed the requirements of this section.
100.21 	(b) This section applies to all Class I and Class II railroad common carrier railroad 
100.22 	yards. This section does not apply to an entity that owns or operates track in Minnesota 
100.23 	that is not a Class I or Class II railroad common carrier as classified by the Federal 
100.24 	Railroad Administration.
100.25 	(c) Railroad yards and other locations where lighting exists on July 1, 2014, are 
100.26 	deemed compliant with subdivision 1, paragraphs (b) and (c).

100.27 	EFFECTIVE DATE. This section is effective November 1, 2016.

100.28 	Sec. 15. [219.995] MADE IN MINNESOTA SOLAR INSTALLATIONS.
100.29 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
100.30 	have the meanings given.
100.31 	(b) "Made in Minnesota" has the meaning given in section 216C.411, paragraph (a).
100.32 	(c) "Solar photovoltaic module" has the meaning given in section 116C.7791, 
100.33 	subdivision 1, paragraph (e).
100.34 		Subd. 2.Made in Minnesota solar energy system requirement. Notwithstanding 
100.35 	any other law to the contrary, if a railroad common carrier engages in any project in 
101.1 	Minnesota for the construction, improvement, maintenance, or repair of any building, 
101.2 	railroad, railroad yard, railroad facility, or land owned or controlled by the railroad 
101.3 	common carrier and the construction, improvement, maintenance, or repair involves 
101.4 	installation of one or more solar photovoltaic modules, the railroad common carrier 
101.5 	must ensure that the solar photovoltaic modules purchased and installed are "Made in 
101.6 	Minnesota" as defined in subdivision 1, paragraph (b).
101.7 		Subd. 3.Application. Subdivision 2 does not apply if:
101.8 	(1) as a condition of the receipt of federal financial assistance for a specific project, 
101.9 	the railroad common carrier is required to use a procurement method that might result in 
101.10 	the award of a contract to a manufacturer that does not meet the "Made in Minnesota" 
101.11 	definition in subdivision 1, paragraph (b); 
101.12 	(2) no solar photovoltaic modules are available that meet the "Made in Minnesota" 
101.13 	definition and fulfill the function required by the project; or
101.14 	(3) a railroad common carrier's compliance with the "Made in Minnesota" solar 
101.15 	energy system requirement would result in noncompliance with any applicable federal 
101.16 	statute or regulation.

101.17 	Sec. 16. [299A.017] STATE SAFETY OVERSIGHT.
101.18 		Subdivision 1.Office created. The commissioner of public safety shall establish an 
101.19 	Office of State Safety Oversight in the Department of Public Safety for safety oversight of 
101.20 	rail fixed guideway public transportation systems within the state. The commissioner shall 
101.21 	designate a director of the office.
101.22 		Subd. 2.Authority. The director shall implement and has regulatory authority to 
101.23 	enforce the requirements for the state set forth in United States Code, title 49, sections 
101.24 	5329 and 5330, federal regulations adopted pursuant to those sections, and successor or 
101.25 	supplemental requirements.

101.26 	Sec. 17. Minnesota Statutes 2012, section 473.408, is amended by adding a subdivision 
101.27 	to read:
101.28 		Subd. 11.Transit service on election day. (a) The council shall provide regular 
101.29 	route transit, as defined in section 473.385, subdivision 1, paragraph (b), free of charge 
101.30 	on a day a state general election is held.
101.31 	(b) The requirements under this subdivision apply to operators of regular route 
101.32 	transit (1) receiving financial assistance under section 473.388, or (2) operating under 
101.33 	section 473.405, subdivision 12.

102.1 	EFFECTIVE DATE. This section is effective July 1, 2014, and expires November 
102.2 	5, 2014.

102.3 	Sec. 18. [473.41] TRANSIT SHELTERS AND STOPS.
102.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
102.5 	have the meanings given.
102.6 	(b) "Transit authority" means:
102.7 	(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and 
102.8 	train stop locations, transit shelters, and transit passenger seating facilities owned by the 
102.9 	city or established pursuant to a vendor contract with the city;
102.10 	(2) the Metropolitan Council, with respect to transit shelters and transit passenger 
102.11 	seating facilities owned by the council or established pursuant to a vendor contract with 
102.12 	the council; or
102.13 	(3) a replacement service provider under section 473.388, with respect to 
102.14 	rights-of-way at bus stop and train stop locations, transit shelters, and transit passenger 
102.15 	seating facilities owned by the provider or established pursuant to a vendor contract 
102.16 	with the provider.
102.17 	(c) "Transit shelter" means a wholly or partially enclosed structure provided for 
102.18 	public use as a waiting area in conjunction with light rail transit, bus rapid transit, or 
102.19 	regular route transit.
102.20 		Subd. 2.Design. (a) A transit authority shall establish design specifications for 
102.21 	establishment and replacement of its transit shelters, which must include:
102.22 	(1) engineering standards, as appropriate;
102.23 	(2) maximization of protection from the wind, snow, and other elements, including 
102.24 	but not limited to entrances that are equivalently sized to regular doorways;
102.25 	(3) to the extent feasible, inclusion of warming capability at each shelter in which 
102.26 	there is a proportionally high number of transit service passenger boardings; and
102.27 	(4) full accessibility for the elderly and persons with disabilities.
102.28 	(b) The council shall consult with the Transportation Accessibility Advisory 
102.29 	Committee. 
102.30 		Subd. 3.Maintenance. A transit authority shall ensure transit shelters are 
102.31 	maintained in good working order and are accessible to all users of the transit system. 
102.32 	This requirement includes but is not limited to:
102.33 	(1) keeping transit shelters reasonably clean and free from graffiti; and
103.1 	(2) removing snow and ice in a manner that provides accessibility for the elderly 
103.2 	and persons with disabilities to be able to enter and exit transit shelters, and board and 
103.3 	exit trains at each stop.

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

103.5 	Sec. 19. WATERCRAFT DECONTAMINATION SITES; REST AREAS.
 103.6 	Where feasible with existing resources, the commissioners of natural resources 
103.7 	and transportation shall cooperate in an effort to use rest areas as sites for watercraft 
103.8 	decontamination and other activities to prevent the spread of aquatic invasive species.

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

103.10 	Sec. 20. WOMAN VETERAN LICENSE PLATES; DESIGN.
 103.11 	The commissioner of veterans affairs, in consultation with the commissioner of 
103.12 	public safety, a representative of the Minnesota Women Veterans Initiative Working 
103.13 	Group, and any interested Minnesota veterans service organization, shall design the 
103.14 	"WOMAN VETERAN" special plates established in Minnesota Statutes, section 168.123, 
103.15 	subdivision 2, subject to the approval of the commissioner of public safety.

103.16 	Sec. 21. HIGHWAY 14 TURNBACK.
 103.17 	Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or 
103.18 	any other law to the contrary, the commissioner of transportation may:
103.19 	(1) by temporary order, take over the road described as "Old Highway 14" in the 
103.20 	settlement agreement and release executed January 7, 2014, between the state and Waseca 
103.21 	and Steele Counties;
103.22 	(2) expend $35,000,000 or the amount necessary to complete the work required 
103.23 	under the settlement agreement; and
103.24 	(3) upon completion of the work described in the settlement agreement, release "Old 
103.25 	Highway 14" back to Steele and Waseca Counties.
103.26 	Upon completion of the work described in the settlement agreement between the 
103.27 	state and Waseca and Steele Counties, the counties shall accept responsibility for the road 
103.28 	described in the agreement as "Old Highway 14."

103.29 	Sec. 22. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
 103.30 		Subdivision 1.Definition. (a) For purposes of this section, the following terms 
103.31 	have the meanings given.
104.1 	(b) "City" means the city of Two Harbors.
104.2 	(c) "General retail services" means a business that sells goods or services at retail 
104.3 	and directly to an end-use consumer. General retail services includes but is not limited to:
104.4 	(1) personal services;
104.5 	(2) repair services;
104.6 	(3) hardware stores;
104.7 	(4) lumber or building supply stores; and
104.8 	(5) automotive parts sellers.
104.9 		Subd. 2.Pilot program established. (a) In consultation with the city of Two 
104.10 	Harbors, the commissioner of transportation shall establish a community destination sign 
104.11 	pilot program for wayfinding within the city to destinations or attractions of interest to 
104.12 	the traveling public.
104.13 	(b) For purposes of Minnesota Statutes, chapter 173, signs under the pilot program 
104.14 	are official signs.
104.15 		Subd. 3.Signage, design. (a) The pilot program must include as eligible attractions 
104.16 	and destinations:
104.17 	(1) minor traffic generators; and
104.18 	(2) general retail services, specified by business name, that are identified in a 
104.19 	community wayfinding program established by the city.
104.20 	(b) The commissioner of transportation, in coordination with the city, may establish 
104.21 	sign design specifications for signs under the pilot program. Design specifications must 
104.22 	allow for placement of:
104.23 	(1) a city name and city logo or symbol; and
104.24 	(2) up to five attractions or destinations on a community destination sign assembly.
104.25 		Subd. 4.Program costs. The city shall pay costs of design, construction, 
104.26 	erection, and maintenance of the signs and sign assemblies under the pilot program. The 
104.27 	commissioner shall not impose fees for the pilot program.
104.28 		Subd. 5.Expiration. The pilot program under this section expires January 1, 2022.

104.29 	EFFECTIVE DATE. This section is effective the day following final enactment.
104.30 	AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES

104.31 	ARTICLE 15
104.32 	AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES 
104.33 	APPROPRIATIONS

104.34	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
105.1 	The amounts shown in this section summarize direct appropriations, by fund, made 
105.2 	in this article.

105.3							2015
	
105.4	General
					$
	15,999,000
	
105.5	Natural Resources
						900,000
	
105.6	Game and Fish
						3,000
	
105.7
105.8	Environment and Natural 
Resources Trust 
						490,000
	
105.9	Total
					$
	17,392,000

105.10	Sec. 2. APPROPRIATIONS.
 	
105.11 	The sums shown in the columns marked "Appropriations" are added to the 
105.12 	appropriations in Laws 2013, chapter 114, or appropriated to the agencies and for the 
105.13 	purposes specified in this article. The appropriations are from the general fund, or another 
105.14 	named fund, and are available for the fiscal year indicated for each purpose. The figure 
105.15 	"2015" used in this article means that the addition to the appropriations listed under them 
105.16 	are available for the fiscal year ending June 30, 2015.

105.17				APPROPRIATIONS
	
105.18				Available for the Year
	
105.19				Ending June 30
	
105.20							2015

105.21	Sec. 3. AGRICULTURE.

105.22	Subdivision 1.Total Appropriation
 			$
	1,910,000
	
105.23 	The amounts that may be spent for each 
105.24 	purpose are specified in the following 
105.25 	subdivisions.

105.26	Subd. 2.Department of Agriculture
 				1,600,000
	
105.27 	$1,500,000 in 2015 is for a grant to Second 
105.28 	Harvest Heartland on behalf of the six 
105.29 	Feeding America food banks that serve 
105.30 	Minnesota to compensate agricultural 
105.31 	producers and processors for costs incurred 
105.32 	to harvest and package for transfer surplus 
105.33 	fruits, vegetables, or other agricultural 
105.34 	commodities that would otherwise go 
105.35 	unharvested or be discarded. Surplus 
106.1 	commodities must be distributed statewide 
106.2 	to food shelves and other charitable 
106.3 	organizations that are eligible to receive 
106.4 	food from the food banks. Surplus food 
106.5 	acquired under this appropriation must be 
106.6 	from Minnesota producers and processors. 
106.7 	Second Harvest Heartland must report when 
106.8 	required by, and in the form prescribed by, 
106.9 	the commissioner. Second Harvest Heartland 
106.10 	may use up to 11 percent of the grant for 
106.11 	administrative expenses. This appropriation 
106.12 	is added to the base.
106.13 	$100,000 in 2015 is to compensate experts 
106.14 	evaluating pollinator death or illness as 
106.15 	authorized in Minnesota Statutes, section 
106.16 	18B.04. $65,000 is added to the base.
106.17 	The commissioner shall examine how other 
106.18 	states are implementing the industrial hemp 
106.19 	research authority provided in Public Law 
106.20 	113-79 and to gauge the interest of Minnesota 
106.21 	higher education institutions. No later than 
106.22 	January 15, 2015, the commissioner 
106.23 	must report the information and items for 
106.24 	legislative consideration to the legislative 
106.25 	committees with jurisdiction over agriculture 
106.26 	policy and finance.

106.27	Subd. 3.Board of Animal Health
 				310,000
	
106.28 	$310,000 in 2015 is to administer the dog and 
106.29 	cat breeder licensing and inspection program. 
106.30 	The base in fiscal year 2016 is $426,000 and 
106.31 	the base in fiscal year 2017 is $435,000.

106.32	Sec. 4. POLLUTION CONTROL AGENCY

106.33	Subdivision 1.Total Appropriation
 			$
	7,349,000
	
107.1 	The amounts that may be spent for each 
107.2 	purpose are specified in the following 
107.3 	subdivisions.

107.4	Subd. 2.Water
 						1,000
	
107.5 	$1,000 in 2015 is to compile information 
107.6 	on the presence of plastic microbeads in the 
107.7 	state's waters and their potential impacts 
107.8 	on aquatic ecosystems and human health, 
107.9 	in consultation with the University of 
107.10 	Minnesota. No later than December 15, 
107.11 	2014, the commissioner must present the 
107.12 	information to the legislative committees 
107.13 	with jurisdiction over environment and 
107.14 	natural resources policy and finance and 
107.15 	make recommendations. This is a onetime 
107.16 	appropriation.

107.17
107.18	Subd. 3.Environmental 
Assistance and Cross-Media
 						7,348,000
	
107.19 	$7,000,000 in 2015 is for the purposes 
107.20 	of Minnesota Statutes, section 115A.557, 
107.21 	subdivision 2. This appropriation is added 
107.22 	to the base.
107.23 	$348,000 in 2015 is for costs incurred 
107.24 	implementing Minnesota Statutes, sections 
107.25 	116.9401 to 116.9425. This is a onetime 
107.26 	appropriation. Of this amount, $13,000 
107.27 	is transferred to the commissioner of 
107.28 	health. The base for this program from the 
107.29 	environmental fund is $744,000 in fiscal year 
107.30 	2016 and $495,000 in fiscal year 2017.

107.31	Sec. 5. NATURAL RESOURCES

107.32	Subdivision 1.Total Appropriation
 			$
	2,107,000

107.33	Appropriations by Fund
	
107.34	General
		1,654,000
	
108.1	Game and Fish
		3,000
	
108.2	Natural Resources 
		450,000
	
108.3 	The amounts that may be spent for each 
108.4 	purpose are specified in the following 
108.5 	subdivisions.

108.6	Subd. 2.Ecological and Water Resources
 				50,000
	
108.7 	$50,000 in 2015 is for a study of the effects 
108.8 	of the Lake Emily dam in Crow Wing County 
108.9 	on water clarity and water levels in Lake 
108.10 	Emily, Lake Mary, and the Little Pine River. 
108.11 	This is a onetime appropriation.

108.12
108.13	Subd. 3.Parks and Trails 
Management
 						2,045,000
	
108.14 	$1,595,000 in 2015 is for the improvement, 
108.15 	maintenance, and conditions of facilities and 
108.16 	infrastructure in state parks for safety and 
108.17 	general use. This is a onetime appropriation.
108.18 	$450,000 in 2015 is from the natural 
108.19 	resources fund for state trail, park, and 
108.20 	recreation area operations. This appropriation 
108.21 	is from the revenue deposited in the natural 
108.22 	resources fund under Minnesota Statutes, 
108.23 	section 297A.94, paragraph (e), clause (2). 
108.24 	This is a onetime appropriation.

108.25
108.26	Subd. 4.Fish and Wildlife 
Management
 						12,000
	
108.27 	$3,000 in 2015 is from the game and fish fund 
108.28 	for a report on aquatic plant management 
108.29 	permitting policies for the management 
108.30 	of narrow-leaved and hybrid cattail in a 
108.31 	range of basin types across the state. The 
108.32 	report shall be submitted to the chairs and 
108.33 	ranking minority members of the house of 
108.34 	representatives and senate committees with 
108.35 	jurisdiction over environment and natural 
109.1 	resources by December 15, 2014, and include 
109.2 	recommendations for any necessary changes 
109.3 	in statutes, rules, or permitting procedures. 
109.4 	This is a onetime appropriation.
109.5 	$9,000 in 2015 is for the commissioner, 
109.6 	in consultation with interested parties, 
109.7 	agencies, and other states, to develop a 
109.8 	detailed restoration plan to recover the 
109.9 	historical native population of bobwhite 
109.10 	quail in Minnesota for its ecological and 
109.11 	recreational benefits to the citizens of the 
109.12 	state. The commissioner shall conduct public 
109.13 	meetings in developing the plan. No later 
109.14 	than January 15, 2015, the commissioner 
109.15 	must report on the plan's progress to the 
109.16 	legislative committees with jurisdiction over 
109.17 	environment and natural resources policy 
109.18 	and finance. This is a onetime appropriation.

109.19	Sec. 6. METROPOLITAN COUNCIL
 			$
	450,000
	
109.20 	$450,000 in 2015 is from the natural 
109.21 	resources fund for metropolitan area regional 
109.22 	parks and trails maintenance and operations. 
109.23 	This appropriation is from the revenue 
109.24 	deposited in the natural resources fund 
109.25 	under Minnesota Statutes, section 297A.94, 
109.26 	paragraph (e), clause (3). This is a onetime 
109.27 	appropriation.

109.28	Sec. 7. UNIVERSITY OF MINNESOTA
 			$
	5,554,000

109.29	Appropriations by Fund
	
109.30	General
		5,064,000
	
109.31
109.32
109.33	Environment and 
Natural Resources 
Trust 
		490,000
	
109.34 	$5,064,000 in 2015 is from the general fund 
109.35 	for the Invasive Terrestrial Plants and Pests 
110.1 	Center requested under this act, including a 
110.2 	director, graduate students, and necessary 
110.3 	supplies. This is a onetime appropriation and 
110.4 	is available until June 30, 2025.
110.5 	$490,000 in 2015 is from the environment 
110.6 	and natural resources trust fund for the 
110.7 	Invasive Terrestrial Plants and Pests Center 
110.8 	requested under this act, including a director, 
110.9 	graduate students, and necessary supplies. 
110.10 	This is a onetime appropriation and is 
110.11 	available until June 30, 2025.
110.12 	$970,000 from the environment and natural 
110.13 	resources trust fund appropriated in Laws 
110.14 	2011, First Special Session chapter 2, article 
110.15 	3, section 2, subdivision 9, paragraph (d), 
110.16 	Reinvest in Minnesota Wetlands Reserve 
110.17 	Acquisition and Restoration Program 
110.18 	Partnership, is transferred to the Board of 
110.19 	Regents of the University of Minnesota for 
110.20 	the Invasive Terrestrial Plants and Pests 
110.21 	Center requested under this act, including a 
110.22 	director, graduate students, and necessary 
110.23 	supplies and is available until June 30, 2025.

110.24 	Sec. 8. Laws 2013, chapter 114, article 3, section 4, subdivision 3, is amended to read:

110.25
110.26	Subd. 3.Ecological and Water Resources
 		27,182,000
		31,582,000
31,604,000

110.27	Appropriations by Fund
	
110.28
110.29	General
	12,117,000
	16,817,000
16,839,000
	
110.30	Natural Resources
	11,002,000
	10,702,000
	
110.31	Game and Fish
	4,063,000
	4,063,000
	
110.32 	$3,542,000 the first year and $3,242,000 the 
110.33 	second year are from the invasive species 
110.34 	account in the natural resources fund and 
110.35 	$2,906,000 the first year and $3,206,000 the 
111.1 	second year are from the general fund for 
111.2 	management, public awareness, assessment 
111.3 	and monitoring research, and water access 
111.4 	inspection to prevent the spread of invasive 
111.5 	species; management of invasive plants in 
111.6 	public waters; and management of terrestrial 
111.7 	invasive species on state-administered lands.
111.8 	$5,000,000 the first year and $5,000,000 the 
111.9 	second year are from the water management 
111.10 	account in the natural resources fund for only 
111.11 	the purposes specified in Minnesota Statutes, 
111.12 	section 103G.27, subdivision 2.
111.13 	$103,000 the first year and $103,000
111.14 	 $125,000 the second year are for a grant to 
111.15 	the Mississippi Headwaters Board for up to 
111.16 	50 percent of the cost of implementing the 
111.17 	comprehensive plan for the upper Mississippi 
111.18 	within areas under the board's jurisdiction.
111.19 	 The base for this grant is $103,000. By 
111.20 	January 15, 2015, the board shall submit a 
111.21 	report detailing the results achieved with 
111.22 	the fiscal year 2014 appropriation and the 
111.23 	anticipated results that will be achieved with 
111.24 	the fiscal year 2015 appropriation to the 
111.25 	commissioner and the chairs and ranking 
111.26 	minority members of the senate and house 
111.27 	of representatives committees and divisions 
111.28 	with jurisdiction over environment and 
111.29 	natural resources policy and finance.
111.30 	$10,000 the first year and $10,000 the second 
111.31 	year are for payment to the Leech Lake Band 
111.32 	of Chippewa Indians to implement the band's 
111.33 	portion of the comprehensive plan for the 
111.34 	upper Mississippi.
112.1 	$264,000 the first year and $264,000 the 
112.2 	second year are for grants for up to 50 
112.3 	percent of the cost of implementation of 
112.4 	the Red River mediation agreement. The 
112.5 	commissioner shall submit a report to the 
112.6 	chairs of the legislative committees having 
112.7 	primary jurisdiction over environment and 
112.8 	natural resources policy and finance on the 
112.9 	accomplishments achieved with the grants 
112.10 	by January 15, 2015.
112.11 	$1,643,000 the first year and $1,643,000 
112.12 	the second year are from the heritage 
112.13 	enhancement account in the game and 
112.14 	fish fund for only the purposes specified 
112.15 	in Minnesota Statutes, section 297A.94, 
112.16 	paragraph (e), clause (1).
112.17 	$1,223,000 the first year and $1,223,000 the 
112.18 	second year are from the nongame wildlife 
112.19 	management account in the natural resources 
112.20 	fund for the purpose of nongame wildlife 
112.21 	management. Notwithstanding Minnesota 
112.22 	Statutes, section 290.431, $100,000 the first 
112.23 	year and $100,000 the second year may 
112.24 	be used for nongame wildlife information, 
112.25 	education, and promotion.
112.26 	$1,600,000 the first year and $6,000,000 the 
112.27 	second year are from the general fund for the 
112.28 	following activities:
112.29 	(1) increased financial reimbursement 
112.30 	and technical support to soil and water 
112.31 	conservation districts or other local units 
112.32 	of government for groundwater level 
112.33 	monitoring;
113.1 	(2) additional surface water monitoring and 
113.2 	analysis, including installation of monitoring 
113.3 	gauges;
113.4 	(3) additional groundwater analysis to 
113.5 	assist with water appropriation permitting 
113.6 	decisions;
113.7 	(4) additional permit application review 
113.8 	incorporating surface water and groundwater 
113.9 	technical analysis;
113.10 	(5) enhancement of precipitation data and 
113.11 	analysis to improve the use of irrigation;
113.12 	(6) enhanced information technology, 
113.13 	including electronic permitting and 
113.14 	integrated data systems; and
113.15 	(7) increased compliance and monitoring.
113.16 	Of this amount, $600,000 the first year is for 
113.17 	silica sand rulemaking and is available until 
113.18 	spent.
113.19 	The commissioner, in cooperation with the 
113.20 	commissioner of agriculture, shall enforce 
113.21 	compliance with aquatic plant management 
113.22 	requirements regulating the control of 
113.23 	aquatic plants with pesticides and removal of 
113.24 	aquatic plants by mechanical means under 
113.25 	Minnesota Statutes, section 103G.615.

113.26 	ARTICLE 16
113.27 	AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES 
113.28 	FISCAL IMPLEMENTATION PROVISIONS

113.29 	Section 1. Minnesota Statutes 2012, section 13.643, subdivision 6, is amended to read:
113.30 		Subd. 6.Animal premises data. (a) The following data collected and maintained 
113.31 	by the Board of Animal Health related to registration and identification of premises and 
113.32 	animals under chapter 35, are classified as private or nonpublic:
113.33 	(1) the names and addresses;
114.1 	(2) the location of the premises where animals are kept; and
114.2 	(3) the identification number of the premises or the animal.
114.3 	(b) Except as provided in section 347.58, subdivision 5, data collected and 
114.4 	maintained by the Board of Animal Health under sections 347.57 to 347.64 are classified 
114.5 	as private or nonpublic.
114.6 	(b) (c) The Board of Animal Health may disclose data collected under paragraph (a)
114.7 	 or (b) to any person, agency, or to the public if the board determines that the access will 
114.8 	aid in the law enforcement process or the protection of public or animal health or safety.

114.9 	Sec. 2. Minnesota Statutes 2012, section 13.7411, subdivision 8, is amended to read:
114.10 		Subd. 8.Pollution Control Agency. (a) Hazardous waste generators.
114.11 	Information provided by hazardous waste generators under section 473.151 and for which 
114.12 	confidentiality is claimed is governed by section 116.075, subdivision 2.
114.13 	(b) Tests. Trade secret information made available by applicants for certain projects 
114.14 	of the Pollution Control Agency is classified under section 116.54.
114.15 	(c) Priority chemicals. Information submitted to the Pollution Control Agency 
114.16 	related to priority chemicals in children's products is classified under section 116.9403.

114.17 	Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
114.18 	to read:
114.19 		Subd. 1c.Apiary. "Apiary" means a place where a collection of one or more hives 
114.20 	or colonies of bees or the nuclei of bees are kept.

114.21 	Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
114.22 	to read:
114.23 		Subd. 2a.Bee. "Bee" means any stage of the common honeybee, Apis mellifera (L).

114.24 	Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
114.25 	to read:
114.26 		Subd. 2b.Bee owner. "Bee owner" means a person who owns an apiary.

114.27 	Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
114.28 	to read:
114.29 		Subd. 4c.Colony. "Colony" means the aggregate of worker bees, drones, the queen, 
114.30 	and developing young bees living together as a family unit in a hive or other dwelling.

115.1 	Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
115.2 	to read:
115.3 		Subd. 11a.Hive. "Hive" means a frame hive, box hive, box, barrel, log gum, skep, 
115.4 	or any other receptacle or container, natural or artificial, or any part of one, which is 
115.5 	used as domicile for bees.

115.6 	Sec. 8. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
115.7 	to read:
115.8 		Subd. 20a.Pollinator. "Pollinator" means an insect that pollinates flowers.

115.9 	Sec. 9. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision 
115.10 	to read:
115.11 		Subd. 4.Pollinator enforcement. The commissioner may take enforcement action 
115.12 	under chapter 18D for a violation of this chapter, or any rule adopted under this chapter, 
115.13 	that results in harm to pollinators, including but not limited to applying a pesticide in 
115.14 	a manner inconsistent with the pesticide product's label or labeling and resulting in 
115.15 	pollinator death or willfully applying pesticide in a manner inconsistent with the pesticide 
115.16 	product's label or labeling. The commissioner must deposit any penalty collected under 
115.17 	this subdivision in the pesticide regulatory account in section 18B.05.

115.18 	Sec. 10. Minnesota Statutes 2012, section 18B.04, is amended to read:
115.19 	18B.04 PESTICIDE IMPACT ON ENVIRONMENT.
115.20 	(a) The commissioner shall:
115.21 	(1) determine the impact of pesticides on the environment, including the impacts on 
115.22 	surface water and groundwater in this state;
115.23 	(2) develop best management practices involving pesticide distribution, storage, 
115.24 	handling, use, and disposal; and
115.25 	(3) cooperate with and assist other state agencies and local governments to protect 
115.26 	public health, pollinators, and the environment from harmful exposure to pesticides.
115.27 	(b) The commissioner may assemble a group of experts under section 16C.10, 
115.28 	subdivision 2, to consult in the investigation of pollinator deaths or illnesses. The group of 
115.29 	experts may include representatives from local, state, and federal agencies; academia; the 
115.30 	state pollinator bank; or other professionals as deemed necessary by the commissioner.

115.31 	Sec. 11. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE; 
115.32 	APPROPRIATION.
116.1 		Subdivision 1.Compensation required. (a) The commissioner of agriculture 
116.2 	must compensate a person for an acute pesticide poisoning resulting in the death of bees 
116.3 	owned by the person, provided: 
116.4 	(1) the person who applied the pesticide cannot be determined;
116.5 	(2) the person who applied the pesticide did so in a manner consistent with the 
116.6 	pesticide product's label or labeling; or 
116.7 	(3) the person who applied the pesticide did so in a manner inconsistent with the 
116.8 	pesticide product's label or labeling.
116.9 	(b) Except as provided in this section, the bee owner is entitled to the fair market 
116.10 	value of the dead bees as determined by the commissioner upon recommendation by 
116.11 	academic experts and bee keepers. In any fiscal year, a bee owner must not be compensated 
116.12 	for a claim that is less than $100 or compensated more than $20,000 for all eligible claims.
116.13 		Subd. 2.Applicator responsible. In the event a person applies a pesticide in a 
116.14 	manner inconsistent with the pesticide product's label or labeling requirements as approved 
116.15 	by the commissioner and is determined to have caused the acute pesticide poisoning of 
116.16 	bees, resulting in death, kept for commercial purposes, then the person so identified must 
116.17 	bear the responsibility of restitution for the value of the bees to the bee owner. In such 
116.18 	cases the commissioner must not provide compensation as provided in this section.
116.19 		Subd. 3.Claim form. The bee owner must file a claim on forms provided by the 
116.20 	commissioner and available on the Department of Agriculture's Web site.
116.21 		Subd. 4.Determination. The commissioner must determine whether the death of 
116.22 	the bees was caused by an acute pesticide poisoning, whether the pesticide applicator can 
116.23 	be determined, and whether the pesticide applicator applied the pesticide product in a 
116.24 	manner consistent with the pesticide product's label or labeling.
116.25 		Subd. 5.Payments; denial of compensation. (a) If the commissioner determines 
116.26 	the bee death was caused by an acute pesticide poisoning and either the pesticide 
116.27 	applicator cannot be determined or the pesticide applicator applied the pesticide product in 
116.28 	a manner consistent with the pesticide product's label or labeling, the commissioner may 
116.29 	award compensation from the pesticide regulatory account. If the pesticide applicator can 
116.30 	be determined and the applicator applied the pesticide product in a manner inconsistent 
116.31 	with the product's label or labeling, the commissioner may collect a penalty from the 
116.32 	pesticide applicator sufficient to compensate the bee owner for the fair market value of the 
116.33 	dead bees and must award the money to the bee owner.
116.34 	(b) If the commissioner denies compensation claimed by a bee owner under this 
116.35 	section, the commissioner must issue a written decision based upon the available evidence. 
116.36 	The decision must include specification of the facts upon which the decision is based and 
117.1 	the conclusions on the material issues of the claim. The commissioner must mail a copy 
117.2 	of the decision to the bee owner.
117.3 	(c) A decision to deny compensation claimed under this section is not subject to the 
117.4 	contested case review procedures of chapter 14, but may be reviewed upon a trial de 
117.5 	novo in a court in the county where the loss occurred. The decision of the court may be 
117.6 	appealed as in other civil cases. Review in court may be obtained by filing a petition for 
117.7 	review with the administrator of the court within 60 days following receipt of a decision 
117.8 	under this section. Upon the filing of a petition, the administrator must mail a copy to the 
117.9 	commissioner and set a time for hearing within 90 days of the filing.
117.10 		Subd. 6.Deduction from payment. In order to be eligible for compensation under 
117.11 	this section, a bee owner must document that at the time of the loss the bee owner had 
117.12 	insurance sufficient to cover up to 50 percent of the total value of the owner's colony. 
117.13 	The commissioner must reduce payments made under this section by any compensation 
117.14 	received by the bee owner as proceeds from an insurance policy or from another source.
117.15 		Subd. 7.Appropriation. The amount necessary to pay claims under this section, 
117.16 	not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory 
117.17 	account in section 18B.05.

117.18 	Sec. 12. [19.70] DEFINITIONS.
117.19 		Subdivision 1.Scope. For the purposes of this chapter the terms defined in this 
117.20 	section have the meanings given.
117.21 		Subd. 2.Abandoned apiary. "Abandoned apiary" means any apiary not regularly 
117.22 	attended in accordance with good beekeeping practices and which constitutes a disease or 
117.23 	parasite hazard to the beekeeping industry.
117.24 		Subd. 3.Africanized honeybees. "Africanized honeybees" means Africanized 
117.25 	honeybees using United States Department of Agriculture standards.
117.26 		Subd. 4.Bee diseases. "Bee diseases" means infectious, contagious, or harmful 
117.27 	diseases including but not limited to: American or European foulbrood, sacbrood, 
117.28 	chalkbrood, Nosema, bee paralysis, or abnormal condition of egg, larval, pupal, or adult 
117.29 	stages of bees.
117.30 		Subd. 5.Bee equipment. "Bee equipment" means hives, supers, frames, veils, 
117.31 	gloves, and any apparatus, tool, machine, vehicle, or other device used in the handling, 
117.32 	moving, or manipulating of bees, honey, wax, or hives, including containers of honey or 
117.33 	wax which may be used in an apiary or in transporting bees and their products and apiary 
117.34 	supplies.
117.35 		Subd. 6.Beekeeper. "Beekeeper" means a person who keeps bees.
118.1 		Subd. 7.Beekeeping. "Beekeeping" means the moving, raising, and producing of 
118.2 	bees, beeswax, honey, related products, and pollination.
118.3 		Subd. 8.Commissioner. "Commissioner" means the commissioner of agriculture 
118.4 	or the commissioner's authorized agents.
118.5 		Subd. 9.Department. "Department" means the Department of Agriculture.
118.6 		Subd. 10.Exotic parasite. "Exotic parasite" means any parasite harmful to bees 
118.7 	including but not limited to: Varroa jacobsoni, Tropilaelaps clareae, or Acarapis woodi.
118.8 		Subd. 11.Queen apiary. "Queen apiary" means any apiary or premises in which 
118.9 	queen bees are reared or kept for sale or gift.

118.10 	Sec. 13. Minnesota Statutes 2012, section 84.788, subdivision 2, is amended to read:
118.11 		Subd. 2.Exemptions. Registration is not required for off-highway motorcycles:
118.12 	(1) owned and used by the United States, an Indian tribal government, the state, 
118.13 	another state, or a political subdivision;
118.14 	(2) registered in another state or country that have not been within this state for 
118.15 	more than 30 consecutive days; or
118.16 	(3) registered under chapter 168, when operated on forest roads to gain access to a 
118.17 	state forest campground;
118.18 	(4) used exclusively in organized track racing events;
118.19 	(5) operated on state or grant-in-aid trails by a nonresident possessing a nonresident 
118.20 	off-highway motorcycle state trail pass; or
118.21 	(6) operated by a person participating in an event for which the commissioner has 
118.22 	issued a special use permit.

118.23 	Sec. 14. [84.7945] NONRESIDENT OFF-HIGHWAY MOTORCYCLE STATE 
118.24 	TRAIL PASS.
118.25 		Subdivision 1.Pass required; fee. (a) A tribal member exempt from registration 
118.26 	under section 84.788, subdivision 2, clause (2), or a nonresident, may not operate an 
118.27 	off-highway motorcycle on a state or grant-in-aid off-highway motorcycle trail unless the 
118.28 	operator carries a valid nonresident off-highway motorcycle state trail pass in immediate 
118.29 	possession. The pass must be available for inspection by a peace officer, a conservation 
118.30 	officer, or an employee designated under section 84.0835.
118.31 	(b) The commissioner of natural resources shall issue a pass upon application and 
118.32 	payment of a $20 fee. The pass is valid from January 1 through December 31. Fees 
118.33 	collected under this section, except for the issuing fee for licensing agents, shall be 
118.34 	deposited in the state treasury and credited to the off-highway motorcycle account in 
119.1 	the natural resources fund and, except for the electronic licensing system commission 
119.2 	established by the commissioner under section 84.027, subdivision 15, must be used for 
119.3 	grants-in-aid to counties and municipalities for off-highway motorcycle organizations to 
119.4 	construct and maintain off-highway motorcycle trails and use areas.
119.5 	(c) A nonresident off-highway motorcycle state trail pass is not required for:
119.6 	(1) an off-highway motorcycle that is owned and used by the United States, another 
119.7 	state, or a political subdivision thereof that is exempt from registration under section 
119.8 	84.788, subdivision 2;
119.9 	(2) a person operating an off-highway motorcycle only on the portion of a trail that 
119.10 	is owned by the person or the person's spouse, child, or parent; or
119.11 	(3) a nonresident operating an off-highway motorcycle that is registered according 
119.12 	to section 84.788.
119.13 		Subd. 2.License agents. The commissioner may appoint agents to issue and sell 
119.14 	nonresident off-highway motorcycle state trail passes. The commissioner may revoke the 
119.15 	appointment of an agent at any time. The commissioner may adopt additional rules as 
119.16 	provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted 
119.17 	by the commissioner for accounting and handling of passes pursuant to section 97A.485, 
119.18 	subdivision 11. An agent shall promptly deposit and remit all money received from the 
119.19 	sale of the passes, exclusive of the issuing fee, to the commissioner.
119.20 		Subd. 3.Issuance of passes. The commissioner and agents shall issue and sell 
119.21 	nonresident off-highway motorcycle state trail passes. The commissioner shall also make 
119.22 	the passes available through the electronic licensing system established under section 
119.23 	84.027, subdivision 15.
119.24 		Subd. 4.Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass 
119.25 	shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees 
119.26 	for passes issued by the commissioner shall be deposited in the off-highway motorcycle 
119.27 	account in the natural resources fund and retained for the operation of the electronic 
119.28 	licensing system.
119.29 		Subd. 5.Duplicate passes. The commissioner and agents shall issue a duplicate 
119.30 	pass to persons whose pass is lost or destroyed using the process established under section 
119.31 	97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident 
119.32 	off-highway motorcycle state trail pass is $2, with an issuing fee of 50 cents.

119.33 	Sec. 15. Minnesota Statutes 2012, section 85.053, subdivision 2, is amended to read:
119.34 		Subd. 2.Requirement. Except as provided in section 85.054, a motor vehicle 
119.35 	may not enter a state park, state recreation area, or state wayside over 50 acres in area, 
120.1 	without a state park permit issued under this section or a state parks and trails plate issued 
120.2 	under section 168.1295. Except for vehicles permitted under subdivisions 7, paragraph 
120.3 	(a), clause (2), and 8, the state park permit must be affixed to the lower right corner 
120.4 	windshield of the motor vehicle and must be completely affixed by its own adhesive to 
120.5 	the windshield, or the commissioner may, by written order, provide an alternative means 
120.6 	to display and validate state park permits.

120.7 	Sec. 16. [85.056] STATE PARKS AND TRAILS DONATION ACCOUNT.
120.8 		Subdivision 1.Establishment. The state parks and trails donation account is 
120.9 	established as a separate account in the natural resources fund. The account shall be 
120.10 	administered by the commissioner of natural resources as provided in this section.
120.11 		Subd. 2.Funding sources. The state parks and trails donation account shall consist 
120.12 	of contributions made under section 168.1295 and other contributions. The contributions 
120.13 	may be made in cash, property, land, or interests in land.
120.14 		Subd. 3.Uses. Money in the account is appropriated to the commissioner of natural 
120.15 	resources to operate and maintain the state parks and trails system.

120.16 	Sec. 17. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
120.17 		Subd. 7.Disposition of proceeds. (a) All revenue derived from the lease of the Fort 
120.18 	Snelling upper bluff, with the exception of payment for costs of the water line as described 
120.19 	in subdivision 6, shall be deposited in the natural resources fund and credited to a state 
120.20 	park account. Interest earned on the money in the account accrues to the account.
120.21 	(b) Revenue and expenses from the upper bluff shall be tracked separately within 
120.22 	the account. Money in the account derived from the leasing or operation of the property 
120.23 	described in subdivision 1 may be is appropriated annually to the commissioner for 
120.24 	the payment of expenses attributable to the leasing, development, and operation of the 
120.25 	property described in subdivision 1, including, but not limited to, the maintenance, repair, 
120.26 	and rehabilitation of historic buildings and landscapes.

120.27 	Sec. 18. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
120.28 		Subd. 2.Zoological Garden. The board shall acquire, construct, equip, operate 
120.29 	and maintain the Minnesota Zoological Garden at a site in Dakota County legally 
120.30 	described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist 
120.31 	of adequate facilities and structures for the collection, habitation, preservation, care, 
120.32 	exhibition, examination or study of wild and domestic animals, including, but not limited 
120.33 	to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board 
121.1 	may provide such lands, buildings and equipment as it deems necessary for parking, 
121.2 	transportation, entertainment, education or instruction of the public in connection with 
121.3 	such Zoological Garden. The Zoological Garden is the official pollinator bank for the state 
121.4 	of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to 
121.5 	avert the extinction of pollinator species by cultivating insurance breeding populations.

121.6 	Sec. 19. [87A.10] TRAP SHOOTING SPORTS FACILITY GRANTS.
121.7 	The commissioner of natural resources shall administer a program to provide 
121.8 	cost-share grants to local recreational trap shooting clubs for up to 50 percent of the costs 
121.9 	of developing or rehabilitating trap shooting sports facilities for public use. A facility 
121.10 	rehabilitated or developed with a grant under this section must be open to the general 
121.11 	public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner 
121.12 	shall give preference to projects that will provide the most opportunities for youth.

121.13 	Sec. 20. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
121.14 		Subd. 6.Water use permit processing fee. (a) Except as described in paragraphs 
121.15 	(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in 
121.16 	accordance with the schedule of fees in this subdivision for each water use permit in force 
121.17 	at any time during the year. Fees collected under this paragraph are credited to the water 
121.18 	management account in the natural resources fund. The schedule is as follows, with the 
121.19 	stated fee in each clause applied to the total amount appropriated:
121.20 	(1) $140 for amounts not exceeding 50,000,000 gallons per year;
121.21 	(2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 
121.22 	than 100,000,000 gallons per year;
121.23 	(3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less 
121.24 	than 150,000,000 gallons per year;
121.25 	(4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but 
121.26 	less than 200,000,000 gallons per year;
121.27 	(5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less 
121.28 	than 250,000,000 gallons per year;
121.29 	(6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but 
121.30 	less than 300,000,000 gallons per year;
121.31 	(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 
121.32 	than 350,000,000 gallons per year;
121.33 	(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 
121.34 	less than 400,000,000 gallons per year;
122.1 	(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 
122.2 	than 450,000,000 gallons per year;
122.3 	(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 
122.4 	less than 500,000,000 gallons per year; and
122.5 	(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
122.6 	(b) For once-through cooling systems, a water use processing fee must be prescribed 
122.7 	by the commissioner in accordance with the following schedule of fees for each water use 
122.8 	permit in force at any time during the year:
122.9 	(1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
122.10 	(2) for all other users, $420 per 1,000,000 gallons.
122.11 	(c) The fee is payable based on the amount of water appropriated during the year 
122.12 	and, except as provided in paragraph (f), the minimum fee is $100.
122.13 	(d) For water use processing fees other than once-through cooling systems:
122.14 	(1) the fee for a city of the first class may not exceed $250,000 per year;
122.15 	(2) the fee for other entities for any permitted use may not exceed:
122.16 	(i) $60,000 per year for an entity holding three or fewer permits;
122.17 	(ii) $90,000 per year for an entity holding four or five permits; or
122.18 	(iii) $300,000 per year for an entity holding more than five permits;
122.19 	(3) the fee for agricultural irrigation may not exceed $750 per year;
122.20 	(4) the fee for a municipality that furnishes electric service and cogenerates steam 
122.21 	for home heating may not exceed $10,000 for its permit for water use related to the 
122.22 	cogeneration of electricity and steam; and
122.23 	(5) no fee is required for a project involving the appropriation of surface water to 
122.24 	prevent flood damage or to remove flood waters during a period of flooding, as determined 
122.25 	by the commissioner.
122.26 	(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two 
122.27 	percent per month calculated from the original due date must be imposed on the unpaid 
122.28 	balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 
122.29 	may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal 
122.30 	governmental agency holding a water appropriation permit.
122.31 	(f) The minimum water use processing fee for a permit issued for irrigation of 
122.32 	agricultural land is $20 for years in which:
122.33 	(1) there is no appropriation of water under the permit; or
122.34 	(2) the permit is suspended for more than seven consecutive days between May 1 
122.35 	and October 1.
123.1 	(g) The commissioner shall waive the water use permit fee for installations and 
123.2 	projects that use storm water runoff or for a public entity that is diverting water to treat a 
123.3 	water quality issue and returning that water to its source without using the water for 
123.4 	any other purpose, unless the commissioner determines that any of the proposed uses 
123.5 	adversely affect surface water or groundwater.
123.6 	(g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in 
123.7 	paragraph (a) shall be applied to the volume of water used in each of the months of June, 
123.8 	July, and August that exceeds the volume of water used in January for municipal water 
123.9 	use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 
123.10 	with more than one permit shall be determined based on the total appropriations from all 
123.11 	permits that supply a common distribution system.

123.12 	Sec. 21. Minnesota Statutes 2012, section 115A.151, is amended to read:
123.13 	115A.151 RECYCLABLE MATERIAL CONTAINER REQUIREMENTS; 
123.14 	PUBLIC ENTITIES, SPORTS FACILITIES, AND COMMERCIAL BUILDINGS.
123.15 	(a) A public entity, the owner of a sports facility, and the owner of a commercial 
123.16 	building shall:
123.17 	(1) ensure that facilities under its control, from which mixed municipal solid waste 
123.18 	is collected, have containers for at least three recyclable materials, such as, but not limited 
123.19 	to, paper, glass, plastic, and metal; and
123.20 	(2) transfer all recyclable materials collected to a recycler.
123.21 	(b) For the purposes of this section:
123.22 	(1) "public entity" means the state, an office, agency, or institution of the state, 
123.23 	the Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control 
123.24 	Commission, the legislature, the courts, a county, a statutory or home rule charter city, a 
123.25 	town, a school district, a special taxing district, or any entity that receives an appropriation 
123.26 	from the state for a capital improvement project after August 1, 2002;
123.27 	(2) "metropolitan agency" and "Metropolitan Council," have the meanings given 
123.28 	them in section 473.121; and
123.29 	(3) "Metropolitan Mosquito Control Commission" means the commission created 
123.30 	in section 473.702;
123.31 	(4) "commercial building" means a building that contains a business classified in 
123.32 	sectors 42 to 81 under the North American Industrial Classification System and that 
123.33 	contracts for two cubic yards or more per week of solid waste collection; and
123.34 	(5) "sports facility" means a professional or collegiate sports facility at which 
123.35 	competitions take place before a public audience.

124.1 	EFFECTIVE DATE. This section is effective January 1, 2015.

124.2 	Sec. 22. Minnesota Statutes 2012, section 115A.55, subdivision 4, is amended to read:
124.3 		Subd. 4.Statewide source reduction goal. (a) It is a goal of the state that there 
124.4 	be a minimum ten percent per capita reduction in the amount of mixed and counties to 
124.5 	reduce the generation of municipal solid waste generated in the state by December 31, 
124.6 	2000, based on a reasonable estimate of the amount of mixed municipal solid waste that 
124.7 	was generated in calendar year 1993.
124.8 	(b) As part of the 1997 report required under section 115A.411, the commissioner 
124.9 	shall submit to the senate and house of representatives committees having jurisdiction 
124.10 	over environment and natural resources and environment and natural resources finance 
124.11 	a proposed strategy for meeting the goal in paragraph (a). The strategy must include a 
124.12 	discussion of the different reduction potentials to be found in various sectors and may 
124.13 	include recommended interim goals. The commissioner shall report progress on meeting 
124.14 	the goal in paragraph (a), as well as recommendations and revisions to the proposed 
124.15 	strategy, as part of the 1999 report required under section 115A.411.

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

124.17 	Sec. 23. Minnesota Statutes 2012, section 115A.551, subdivision 1, is amended to read:
124.18 		Subdivision 1.Definition. (a) For the purposes of this section, "recycling" means, 
124.19 	in addition to the meaning given in section 115A.03, subdivision 25b, yard waste and 
124.20 	source-separated compostable materials composting, and recycling that occurs through 
124.21 	mechanical or hand separation of materials that are then delivered for reuse in their 
124.22 	original form or for use in manufacturing processes that do not cause the destruction of 
124.23 	recyclable materials in a manner that precludes further use.
124.24 	(b) For the purposes of this section, "total solid waste generation" means the total 
124.25 	by weight of:
124.26 	(1) materials separated for recycling;
124.27 	(2) materials separated for yard waste and source-separated compostable materials 
124.28 	composting;
124.29 	(3) mixed municipal solid waste plus yard waste, motor and vehicle fluids and 
124.30 	filters, tires, lead acid batteries, and major appliances; and
124.31 	(4) residential and commercial waste materials that would be mixed municipal solid 
124.32 	waste but for the fact that they are not collected as such.

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

125.1 	Sec. 24. Minnesota Statutes 2012, section 115A.551, subdivision 2a, is amended to read:
125.2 		Subd. 2a.Supplementary County recycling goals. (a) By December 31, 1996
125.3 	 2030, each county will have as a goal to recycle the following amounts:
125.4 	(1) for a county outside of the metropolitan area, 35 percent by weight of total 
125.5 	solid waste generation; and
125.6 	(2) for a metropolitan county, 50 75 percent by weight of total solid waste generation.
125.7 	(b) Each county will develop and implement or require political subdivisions within 
125.8 	the county to develop and implement programs, practices, or methods designed to meet its 
125.9 	recycling goal. Nothing in this section or in any other law may be construed to prohibit a 
125.10 	county from establishing a higher recycling goal.

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

125.12 	Sec. 25. Minnesota Statutes 2012, section 115A.557, subdivision 2, is amended to read:
125.13 		Subd. 2.Purposes for which money may be spent. (a) A county receiving money 
125.14 	distributed by the commissioner under this section may use the money only for the 
125.15 	development and implementation of programs to:
125.16 	(1) reduce the amount of solid waste generated;
125.17 	(2) recycle the maximum amount of solid waste technically feasible;
125.18 	(3) create and support markets for recycled products;
125.19 	(4) remove problem materials from the solid waste stream and develop proper 
125.20 	disposal options for them;
125.21 	(5) inform and educate all sectors of the public about proper solid waste management 
125.22 	procedures;
125.23 	(6) provide technical assistance to public and private entities to ensure proper solid 
125.24 	waste management;
125.25 	(7) provide educational, technical, and financial assistance for litter prevention; and
125.26 	(8) process mixed municipal solid waste generated in the county at a resource 
125.27 	recovery facility located in Minnesota; and
125.28 	(9) compost source-separated compostable materials, including the provision of 
125.29 	receptacles for residential composting.
125.30 	(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed 
125.31 	by the commissioner under this section to a metropolitan county, as defined in section 
125.32 	473.121, subdivision 4, that exceeds the amount the county was eligible to receive under 
125.33 	this section in fiscal year 2014: (1) at least 50 percent must be expended on activities 
125.34 	in paragraph (a), clause (9); and (2) the remainder must be expended on activities in 
126.1 	paragraph (a), clauses (1) to (7) and (9) that advance the county toward achieving its 
126.2 	recycling goal under section 115A.551.

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

126.4 	Sec. 26. Minnesota Statutes 2012, section 115A.557, subdivision 3, is amended to read:
126.5 		Subd. 3.Eligibility to receive money. (a) To be eligible to receive money distributed 
126.6 	by the commissioner under this section, a county shall within one year of October 4, 1989:
126.7 	(1) create a separate account in its general fund to credit the money; and
126.8 	(2) set up accounting procedures to ensure that money in the separate account is 
126.9 	spent only for the purposes in subdivision 2.
126.10 	(b) In each following year, each county shall also:
126.11 	(1) have in place an approved solid waste management plan or master plan including 
126.12 	a recycling implementation strategy under section 115A.551, subdivision 7, and a 
126.13 	household hazardous waste management plan under section 115A.96, subdivision 6, 
126.14 	by the dates specified in those provisions;
126.15 	(2) submit a report by April 1 of each year to the commissioner, which may be 
126.16 	submitted electronically and must be posted on the agency's Web site, detailing for the 
126.17 	previous calendar year:
126.18 	(i) how the money was spent including, but not limited to, specific recycling and 
126.19 	composting activities undertaken to increase the county's proportion of solid waste 
126.20 	recycled in order to achieve its recycling goal established in section 115A.551; specific 
126.21 	information on the number of employees performing SCORE planning, oversight, and 
126.22 	administration; the percentage of those employees' total work time allocated to SCORE 
126.23 	planning, oversight, and administration; the specific duties and responsibilities of those 
126.24 	employees; and the amount of staff salary for these SCORE duties and responsibilities of 
126.25 	the employees; and
126.26 	(ii) the resulting gains achieved in solid waste management practices; and
126.27 	(3) provide evidence to the commissioner that local revenue equal to 25 percent of 
126.28 	the money sought for distribution under this section will be spent for the purposes in 
126.29 	subdivision 2.
126.30 	(c) The commissioner shall withhold all or part of the funds to be distributed 
126.31 	to a county under this section if the county fails to comply with this subdivision and 
126.32 	subdivision 2.

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

127.1 	Sec. 27. Minnesota Statutes 2012, section 116.9401, is amended to read:
127.2 	116.9401 DEFINITIONS.
127.3 	(a) For the purposes of sections 116.9401 to 116.9407 116.9425, the following terms 
127.4 	have the meanings given them.
127.5 	(b) "Agency" means the Pollution Control Agency.
127.6 	(c) "Alternative" means a substitute process, product, material, chemical, strategy, 
127.7 	or combination of these that is technically feasible and serves a functionally equivalent 
127.8 	purpose to a chemical in a children's product.
127.9 	(d) "Chemical" means a substance with a distinct molecular composition or a group 
127.10 	of structurally related substances and includes the breakdown products of the substance or 
127.11 	substances that form through decomposition, degradation, or metabolism.
127.12 	(e) "Chemical of high concern" means a chemical identified on the basis of credible 
127.13 	scientific evidence by a state, federal, or international agency as being known or suspected 
127.14 	with a high degree of probability to:
127.15 	(1) harm the normal development of a fetus or child or cause other developmental 
127.16 	toxicity;
127.17 	(2) cause cancer, genetic damage, or reproductive harm;
127.18 	(3) disrupt the endocrine or hormone system;
127.19 	(4) damage the nervous system, immune system, or organs, or cause other systemic 
127.20 	toxicity;
127.21 	(5) be persistent, bioaccumulative, and toxic; or
127.22 	(6) be very persistent and very bioaccumulative.
127.23 	(f) "Child" means a person under 12 years of age.
127.24 	(g) "Children's product" means a consumer product intended for use by children, 
127.25 	such as baby products, toys, car seats, personal care products, and clothing.
127.26 	(h) "Commissioner" means the commissioner of the Pollution Control Agency.
127.27 	(i) "Contaminant" means a trace amount of a chemical that is incidental to 
127.28 	manufacturing and serves no intended function in the product component. Contaminant 
127.29 	includes, but is not limited to, unintended by-products of chemical reactions that 
127.30 	occur during the manufacture of the product component, trace impurities in feedstock, 
127.31 	incompletely reacted chemical mixtures, and degradation products.
127.32 	(j) "Department" means the Department of Health.
127.33 	(j) (k) "Distributor" means a person who sells consumer products to retail 
127.34 	establishments on a wholesale basis.
127.35 	(k) (l) "Green chemistry" means an approach to designing and manufacturing 
127.36 	products that minimizes the use and generation of toxic substances.
128.1 	(m) "Intentionally added chemical" means a chemical in a product that serves an 
128.2 	intended function in the product component.
128.3 	(l) (n) "Manufacturer" means any person who manufactures a final consumer product 
128.4 	sold at retail or whose brand name is affixed to the consumer product. In the case of a 
128.5 	consumer product imported into the United States, manufacturer includes the importer 
128.6 	or domestic distributor of the consumer product if the person who manufactured or 
128.7 	assembled the consumer product or whose brand name is affixed to the consumer product 
128.8 	does not have a presence in the United States.
128.9 	(o) "Mouthable" means a product that can be placed into and kept in a child's 
128.10 	mouth to be sucked or chewed, including any product or product part smaller than five 
128.11 	centimeters in one dimension. A product that can only be licked is not mouthable.
128.12 	(p) "Practical quantification limit" means the lowest concentration of a chemical that 
128.13 	can be reliably measured within specified limits of precision, accuracy, representativeness, 
128.14 	completeness, and comparability under routine laboratory operating conditions and the 
128.15 	value of which:
128.16 	(1) is based on scientifically defensible, standard analytical methods;
128.17 	(2) may vary depending on the matrix and analytical method used; and
128.18 	(3) will be determined by the commissioner, taking into consideration practical 
128.19 	quantification limits established by federal or state agencies.
128.20 	(m) (q) "Priority chemical" means a chemical identified by the Department of Health 
128.21 	as a chemical of high concern that meets the criteria in section 116.9403.
128.22 	(r) "Product category" means the brick level of the GS1 Global Product Classification 
128.23 	(GPC) standard, which identifies products that serve a common purpose, are of a similar 
128.24 	form and material, and share the same set of category attributes.
128.25 	(s) "Product code" means the numeric representation of the item level of the 
128.26 	GS1 electronic product code (EPC), the international article number (EAN), or the 
128.27 	universal product code (UPC), whichever is used by a manufacturer to identify a unique 
128.28 	company-specific or brand-specific product.
128.29 	(t) "Product component" means a uniquely identifiable material or coating including, 
128.30 	but not limited to, an ink or dye that is intended to be included as a part of a finished 
128.31 	children's product.
128.32 	(n) (u) "Safer alternative" means:
128.33 	(1) an alternative whose potential to harm human health or the environment is less 
128.34 	than that of the use of a priority chemical that it could replace.;
128.35 	(2) an alternative chemical that is not a priority chemical identified by the department 
128.36 	under section 116.9403; or
129.1 	(3) an alternative chemical that is not identified on the basis of credible scientific 
129.2 	evidence by a state, federal, or international agency as being known or suspected with 
129.3 	a high degree of probability to:
129.4 	(i) harm the normal development of a fetus or child or cause other developmental 
129.5 	toxicity;
129.6 	(ii) cause cancer, genetic damage, or reproductive harm;
129.7 	(iii) disrupt the endocrine or hormone system; or
129.8 	(iv) damage the nervous system, immune system, or organs, or cause other systemic 
129.9 	toxicity.
129.10 	(v) "Toy" means a product designed or intended by the manufacturer to be used 
129.11 	by a child at play.
129.12 	(w) "Trade association" means a membership organization of persons engaging 
129.13 	in a similar or related line of commerce, organized to promote and improve business 
129.14 	conditions in that line of commerce and not to engage in a regular business of a kind 
129.15 	ordinarily carried on for profit.

129.16 	Sec. 28. Minnesota Statutes 2012, section 116.9402, is amended to read:
129.17 	116.9402 IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
129.18 	(a) By July 1, 2010, the department shall, after consultation with the agency, 
129.19 	generate a list of chemicals of high concern.
129.20 	(b) The department must periodically review and revise the list of chemicals of 
129.21 	high concern at least every three years. The department may add chemicals to the list if 
129.22 	the chemical meets one or more of the criteria in section 116.9401, paragraph (e). Any 
129.23 	changes to the list of chemicals of high concern must be published on the department's 
129.24 	Web site and in the State Register when a change is made.
129.25 	(c) The department shall consider chemicals listed as a suspected carcinogen, 
129.26 	reproductive or developmental toxicant, or as being persistent, bioaccumulative, and 
129.27 	toxic, or very persistent and very bioaccumulative by a state, federal, or international 
129.28 	agency. These agencies may include, but are not limited to, the California Environmental 
129.29 	Protection Agency, the Washington Department of Ecology, the United States Department 
129.30 	of Health, the United States Environmental Protection Agency, the United Nation's World 
129.31 	Health Organization, and European Parliament Annex XIV concerning the Registration, 
129.32 	Evaluation, Authorisation, and Restriction of Chemicals.
129.33 	(d) The department may consider chemicals listed by another state as harmful to 
129.34 	human health or the environment for possible inclusion in the list of chemicals of high 
129.35 	concern.

130.1 	Sec. 29. Minnesota Statutes 2012, section 116.9403, is amended to read:
130.2 	116.9403 IDENTIFICATION OF PRIORITY CHEMICALS.
130.3 		Subdivision 1.Designation; publication. (a) The department, after consultation 
130.4 	with the agency, may designate a chemical of high concern as a priority chemical if the 
130.5 	department finds that the chemical:
130.6 	(1) has been identified as a high-production volume chemical by the United States 
130.7 	Environmental Protection Agency; and
130.8 	(2) meets any of the following criteria:
130.9 	(i) the chemical has been found through biomonitoring to be present in human blood, 
130.10 	including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
130.11 	(ii) the chemical has been found through sampling and analysis to be present in 
130.12 	household dust, indoor air, drinking water, or elsewhere in the home environment; or
130.13 	(iii) the chemical has been found through monitoring to be present in fish, wildlife, 
130.14 	or the natural environment.
130.15 	(b) By February 1, 2011, the department shall publish a list of priority chemicals in 
130.16 	the State Register and on the department's Internet Web site and shall update the published 
130.17 	list whenever a new priority chemical is designated. Any proposed changes to the list 
130.18 	of priority chemicals must be published on the department's Web site and in the State 
130.19 	Register and will be subject to a minimum 60-day public comment period. In the 60 days 
130.20 	following the date of publication in the State Register, the public may submit comments 
130.21 	to the department on the proposed changes to the priority chemical list. A final list of 
130.22 	changes to the list of priority chemicals must be published on the department's Web site 
130.23 	following the end of the comment period and the department's review and consideration of 
130.24 	all comments received during this period before finalizing changes to the list.
130.25 		Subd. 2.Public data. Notwithstanding section 13.37, subdivision 2, the presence 
130.26 	and concentration and total amount of a priority chemical in a specific children's product 
130.27 	reported to the agency under section 116.9409, clauses (1) to (6), are classified as public 
130.28 	data.
130.29 		Subd. 3.Not misappropriation of trade secret. Notwithstanding section 325C.01, 
130.30 	subdivision 3, publication of the presence and concentration and total amount of a priority 
130.31 	chemical in a specific children's product under this section is not misappropriation of 
130.32 	a trade secret.

130.33 	Sec. 30. Minnesota Statutes 2012, section 116.9405, is amended to read:
130.34 	116.9405 APPLICABILITY EXEMPTIONS.
131.1 	The requirements of sections 116.9401116.9408 to 116.9407 116.9425 do not 
131.2 	apply to:
131.3 	(1) chemicals in used previously owned children's products;
131.4 	(2) priority chemicals used in the manufacturing process, but that are not present 
131.5 	in the final product;
131.6 	(3) priority chemicals used in agricultural production;
131.7 	(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter 
131.8 	86B or their component parts, except that the use of priority chemicals in detachable 
131.9 	car seats is not exempt;
131.10 	(5) priority chemicals generated solely as combustion by-products or that are present 
131.11 	in combustible fuels; in combustible petroleum fuels or in biofuel, as defined in section 
131.12 	239.051, subdivision 5a;
131.13 	(6) retailers, except if a retailer is also the producer, manufacturer, importer, or 
131.14 	domestic distributor of a children's product containing a priority chemical or the retailer's 
131.15 	brand name is affixed to a children's product containing a priority chemical;
131.16 	(7) over-the-counter drugs, pharmaceutical products, dietary supplements, or 
131.17 	biologics;
131.18 	(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United 
131.19 	States Code, title 21, section 321(h);
131.20 	(9) food and food or beverage packaging, except a container containing baby food 
131.21 	or infant formula;
131.22 	(10) consumer electronics products and electronic components, including but not 
131.23 	limited to personal computers; audio and video equipment; calculators; digital displays; 
131.24 	wireless phones; cameras; game consoles; printers; and handheld electronic and electrical 
131.25 	devices used to access interactive software or their associated peripherals; or products that 
131.26 	comply with the provisions of directive 2002/95/EC of the European Union, adopted by 
131.27 	the European Parliament and Council of the European Union now or hereafter in effect; or
131.28 	(10) interactive software, such as computer games, and their storage media, such as 
131.29 	compact discs;
131.30 	(11) outdoor sport equipment, including snowmobiles as defined in section 84.81, 
131.31 	subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal 
131.32 	watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section 
131.33 	86B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787, 
131.34 	subdivision 7, and all attachments and repair parts for all of this equipment.; 
131.35 	(12) batteries; or
132.1 	(13) a children's product, manufactured or distributed by an individual manufacturer 
132.2 	or distributor, if fewer than 3,000 units of the children's product are manufactured or 
132.3 	distributed annually in the United States by that manufacturer.

132.4 	Sec. 31. Minnesota Statutes 2012, section 116.9406, is amended to read:
132.5 	116.9406 DONATIONS TO THE STATE.
132.6 	The commissioner may accept donations, grants, and other funds to carry out the 
132.7 	purposes of sections 116.9401 to 116.9407 116.9425. All donations, grants, and other 
132.8 	funds must be accepted without preconditions regarding the outcomes of the regulatory 
132.9 	oversight processes set forth in sections 116.9401 to 116.9407 116.9425.

132.10 	Sec. 32. [116.9408] CHILDREN'S PRODUCTS; INITIAL NOTIFICATION 
132.11 	ON PRIORITY CHEMICALS.
132.12 	(a) A manufacturer or distributor of a children's product offered for sale in this state 
132.13 	that contains a priority chemical must, unless the children's product is not subject to 
132.14 	regulation under section 116.9405, provide the information required under this section 
132.15 	to the agency:
132.16 	(1) within one year of the effective date of this act, if both the designation of the 
132.17 	priority chemical under section 116.9403 and the offering for sale in this state of the 
132.18 	children's product containing the priority chemical occurred prior to the effective date 
132.19 	of this act;
132.20 	(2) within one year of the priority chemical being designated under section 116.9403, 
132.21 	if the children's product is initially offered for sale in this state before the designation and 
132.22 	the designation is made after the effective date of this act; or
132.23 	(3) within one year of the initial offering of the children's product for sale in this 
132.24 	state, if the initial offering occurs after the priority chemical is designated under section 
132.25 	116.9403 and the designation is made after the effective date of this act.
132.26 	(b) An initial notification is required for each children's product that is known 
132.27 	or believed likely to include a priority chemical in any amount and must include the 
132.28 	following information submitted to the agency on a form developed by the commissioner:
132.29 	(1) the name of the priority chemical and its Chemical Abstracts Service Registry 
132.30 	number;
132.31 	(2) in which of the following tiers the children's product containing a priority 
132.32 	chemical belongs:
133.1 	(i) Tier 1: a mouthable children's product intended to be used by children three years 
133.2 	of age or younger or a children's product intended to be placed in a child's mouth or 
133.3 	directly applied to a child's skin;
133.4 	(ii) Tier 2: a children's product intended to be in direct contact with a child's skin for 
133.5 	one hour or longer, including but not limited to clothing, jewelry, bedding, or a car seat;
133.6 	(iii) Tier 3: a children's product intended to be in direct contact with a child's skin 
133.7 	for less than one hour; or
133.8 	(iv) Tier 4: a children's product in which a priority chemical is contained only in an 
133.9 	internal component that, under normal use, is unlikely to come into direct contact with 
133.10 	a child's skin or mouth;
133.11 	(3) a description of the product component in which the priority chemical is present; 
133.12 	and
133.13 	(4) the name and address of the reporting manufacturer or distributor and the name, 
133.14 	address, and telephone number of the contact person for the reporting manufacturer or 
133.15 	distributor.

133.16 	Sec. 33. [116.9409] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING 
133.17 	INFORMATION ON PRIORITY CHEMICALS; TIMING.
133.18 	A manufacturer or distributor of a children's product offered for sale in this state 
133.19 	that contains a priority chemical must, unless the children's product is not subject to 
133.20 	regulation under section 116.9405, provide the full product information required under 
133.21 	section 116.9410 to the agency. The maximum length of time between the filing of the 
133.22 	information required under section 116.9408, paragraph (a), and the filing of full product 
133.23 	information required under section 116.9410 varies according to the manufacturer's or 
133.24 	distributor's annual aggregate gross sales, both within and outside the state, as reported in 
133.25 	the manufacturer's or distributor's most recently filed federal tax return, as follows:
133.26 	(1) for a manufacturer or distributor with gross sales exceeding $1,000,000,000, one 
133.27 	year or, for a priority chemical designated under section 116.9403 before January 1, 2014, 
133.28 	by two years after the effective date of this section; 
133.29 	(2) for a manufacturer or distributor with gross sales exceeding $250,000,000 but 
133.30 	less than or equal to $1,000,000,000, 1-1/2 years or, for a priority chemical designated 
133.31 	under section 116.9403 before January 1, 2014, by 2-1/2 years after the effective date 
133.32 	of this section;
133.33 	(3) for a manufacturer or distributor with gross sales exceeding $100,000,000 but less 
133.34 	than or equal to $250,000,000, two years or, for a priority chemical designated under section 
133.35 	116.9403 before January 1, 2014, by three years after the effective date of this section;
134.1 	(4) for a manufacturer or distributor with gross sales exceeding $5,000,000 but 
134.2 	less than or equal to $100,000,000, three years or, for a priority chemical designated 
134.3 	under section 116.9403 before January 1, 2014, by four years after the effective date 
134.4 	of this section;
134.5 	(5) for a manufacturer or distributor with gross sales exceeding $100,000 but less 
134.6 	than or equal to $5,000,000, four years or, for a priority chemical designated under section 
134.7 	116.9403 before January 1, 2014, by five years after the effective date of this section; and
134.8 	(6) for a manufacturer or distributor with gross sales less than or equal to $100,000, 
134.9 	five years or, for a priority chemical designated under section 116.9403 before January 1, 
134.10 	2014, by six years after the effective date of this section.

134.11 	Sec. 34. [116.9410] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING 
134.12 	INFORMATION ON PRIORITY CHEMICALS.
134.13 	(a) A manufacturer or distributor of a children's product offered for sale in the state 
134.14 	that contains one or more priority chemicals must, except as provided in paragraph (e) or 
134.15 	if the children's product is not subject to regulation under section 116.9405, provide the 
134.16 	following full product information to the agency on a form developed by the commissioner:
134.17 	(1) the name of each priority chemical and its Chemical Abstracts Service Registry 
134.18 	number;
134.19 	(2) in which of the following tiers the children's product containing a priority 
134.20 	chemical belongs:
134.21 	(i) Tier 1: a mouthable children's product intended to be used by children three years 
134.22 	of age or younger or a children's product intended to be placed in a child's mouth or 
134.23 	directly applied to a child's skin;
134.24 	(ii) Tier 2: a children's product intended to be in direct contact with a child's skin for 
134.25 	one hour or longer, including but not limited to clothing, jewelry, bedding, or a car seat;
134.26 	(iii) Tier 3: a children's product intended to be in direct contact with a child's skin 
134.27 	for less than one hour; or
134.28 	(iv) Tier 4: a children's product in which a priority chemical is contained only in an 
134.29 	internal component that, under normal use, is unlikely to come into direct contact with 
134.30 	a child's skin or mouth;
134.31 	(3) the product components, materials, or coatings that contain one or more priority 
134.32 	chemicals;
134.33 	(4) the concentration and total amount of each priority chemical contained in a 
134.34 	children's product, a description of how the concentration was determined, and an 
135.1 	evaluation of the accuracy of the determination. Concentrations at or above the practical 
135.2 	quantification limit must be reported, but may be reported in the following ranges:
135.3 	(i) greater than or equal to the practical quantification limit but less than 100 ppm;
135.4 	(ii) greater than or equal to 100 ppm but less than 500 ppm;
135.5 	(iii) greater than or equal to 500 ppm but less than 1,000 ppm;
135.6 	(iv) greater than or equal to 1,000 ppm but less than 5,000 ppm;
135.7 	(v) greater than or equal to 5,000 ppm but less than 10,000 ppm; and
135.8 	(vi) greater than or equal to 10,000 ppm.
135.9 	For the purposes of this section, "ppm" means parts per million;
135.10 	(5) the product category or categories for the children's product;
135.11 	(6) a description of the function of the priority chemical in the product, including 
135.12 	whether it is present as a contaminant;
135.13 	(7) the name and address of the manufacturer, distributor, or trade association filing 
135.14 	the report and the name, address, and telephone number of the contact person for the 
135.15 	reporting manufacturer, distributor, or trade association;
135.16 	(8) evidence describing the extent to which a child is likely to be exposed to the 
135.17 	priority chemical through normal use of the children's product;
135.18 	(9) the number of units of the children's product sold or distributed in Minnesota 
135.19 	or nationally;
135.20 	(10) any other information the manufacturer or distributor deems relevant; and
135.21 	(11) any other information requested by the commissioner.
135.22 	(b) Reporting shall include all intentionally added chemicals at or above the 
135.23 	applicable practical quantification limit, and contaminants present in a product component 
135.24 	at a concentration above 100 ppm.
135.25 	(c) Reporting parties are not required to include any specific formula information 
135.26 	or the specific name and address of the facility that is responsible for introduction of a 
135.27 	priority chemical into a children's product or product component.
135.28 	(d) If the information required in paragraph (a) is not submitted in a timely fashion 
135.29 	or is incomplete or otherwise unacceptable as determined by the agency, the agency may 
135.30 	contract with an independent third party of the agency's choice to provide the information 
135.31 	and may assess a fee on the manufacturer or distributor to pay the costs as specified 
135.32 	under section 116.9419.
135.33 	(e) The agency shall determine on a case-by-case basis if reporting the information 
135.34 	in paragraph (a), clauses (3) to (9), is required by a manufacturer or distributor whose 
135.35 	children's product belongs in Tier 4 under paragraph (a), clause (2).
136.1 	(f) If a manufacturer claims that any of the information provided to the agency under 
136.2 	this section is trade secret information under section 13.37, subdivision 1, the agency shall 
136.3 	make a determination regarding the claim. Information determined to be public data shall 
136.4 	be posted on the agency's Web site. This paragraph does not apply to the presence and 
136.5 	concentration and total amount of a priority chemical in a specific children's product, 
136.6 	which is governed under section 116.9403, subdivisions 2 and 3.
136.7 	(g) A trade association may file the information required under this section on behalf 
136.8 	of a manufacturer or distributor, provided that the trade association includes in the filing a 
136.9 	list of the manufacturers or distributors on whose behalf the trade association is reporting 
136.10 	and all the information otherwise required of an individual manufacturer or distributor.

136.11 	Sec. 35. [116.9411] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING 
136.12 	INFORMATION ON PRIORITY CHEMICALS; SECOND AND SUBSEQUENT 
136.13 	REPORTS.
136.14 	(a) Following the initial submission of the information required under section 
136.15 	116.9410, a manufacturer or distributor of a children's product offered for sale in the state 
136.16 	that continues to contain a priority chemical must submit the information required under 
136.17 	section 116.9410 to the agency every two years.
136.18 	(b) If a reporting party determines that there has been no change in the information 
136.19 	required to be filed under section 116.9410 since the most recent filing, the reporting party 
136.20 	may submit a written statement indicating that the previously filed data is still valid, in 
136.21 	lieu of a new duplicate complete report, and must submit the required fees.
136.22 	(c) If a manufacturer or distributor is required to file more than one report under 
136.23 	section 116.9410 on the same priority chemical in the same children's product code, each 
136.24 	subsequent report must include the following information in addition to the information 
136.25 	required under section 116.9410:
136.26 	(1) the product code of the children's product; and
136.27 	(2) a description of the manufacturer's attempts to remove the priority chemical 
136.28 	from the children's product and any evaluation made of the use of safer alternatives to 
136.29 	substitute for the priority chemical contained in the children's product, including the 
136.30 	Chemical Abstracts Service Registry numbers of safer alternatives considered. If the 
136.31 	manufacturer claims that any information provided to the agency under this clause is 
136.32 	trade secret information under section 13.37, subdivision 1, the agency shall make a 
136.33 	determination regarding the claim.

137.1 	Sec. 36. [116.9412] CHILDREN'S PRODUCTS; REMOVING A PRIORITY 
137.2 	CHEMICAL; REPORTING REQUIREMENT.
137.3 	A manufacturer or distributor who removes a priority chemical from a children's 
137.4 	product for which an initial notification has been filed under section 116.9408 or for which 
137.5 	full product information has been filed under section 116.9410 must notify the agency 
137.6 	of the removal at the earliest date possible. If the priority chemical removed is replaced 
137.7 	by a safer alternative, the manufacturer or distributor must provide, on a form developed 
137.8 	by the commissioner, the information in section 116.9410, paragraph (a), clauses (1) to 
137.9 	(7), and the name of the safer alternative and its Chemical Abstracts Service Registry 
137.10 	number, or, if not replaced by a chemical alternative, a description of the techniques or 
137.11 	design changes implemented. The safer alternative or nonchemical techniques or design 
137.12 	changes are trade secrets.

137.13 	Sec. 37. [116.9419] FEES.
137.14 	(a) The agency shall, if applicable, assess and collect the following fees from 
137.15 	manufacturers and distributors of children's products offered for sale in this state:
137.16 	(1) a fee of $1,000 for each full product report required under section 116.9410. If 
137.17 	a children's product contains more than one priority chemical, each priority chemical is 
137.18 	subject to this fee;
137.19 	(2) a fee equal to the costs billed by the independent contractor plus the agency's 
137.20 	actual incurred costs to bid and administer the contract for each contract issued under 
137.21 	section 116.9410, paragraph (d); and
137.22 	(3) a fee equal to twice the fee in clause (1) for the second full product report 
137.23 	required under section 116.9410 on the same priority chemical in the same children's 
137.24 	product. The fee for each subsequent full product report required under that section is 
137.25 	correspondingly increased by an amount equal to the fee in clause (1).
137.26 	(b) No fee is required for filing an initial notification under section 116.9408.
137.27 	(c) The commissioner shall deposit all fees collected under this section in the 
137.28 	environmental fund. All fees collected under this section are exempt from section 
137.29 	16A.1285.

137.30 	Sec. 38. [116.9420] STATE AGENCY DUTIES.
137.31 	(a) The agency shall publish all data that is required to be filed under sections 
137.32 	116.9410 and 116.9411 and that is not trade secret data on the agency's Web site and 
137.33 	through other means determined by the commissioner.
138.1 	(b) If a priority chemical continues to be used in a specific children's product after 
138.2 	its manufacturer files a report required under section 116.9411, the commissioner may 
138.3 	recommend options to further reduce or eliminate the use of the priority chemical in the 
138.4 	report required under section 116.9425.
138.5 	(c) The commissioner, in consultation with the commissioners of commerce and 
138.6 	health, may use fee revenue in excess of program implementation costs to offer grants 
138.7 	awarded competitively to manufacturers or other researchers to develop safer alternatives 
138.8 	to priority chemicals in children's products, to establish alternatives as safer alternatives, 
138.9 	or to accelerate the commercialization of safer alternatives.
138.10 	(d) The commissioners of health and commerce shall develop and implement 
138.11 	an education effort regarding priority chemicals in children's products. Education and 
138.12 	outreach activities include, but are not limited to, consumer product safety advice; 
138.13 	notification of recalls; identification of target audiences for product alerts and methods 
138.14 	of notification; outreach and feedback at county and state fairs; publicity of reporting 
138.15 	requirements of priority chemicals in children's products; and education of retailers about 
138.16 	reporting requirements.

138.17 	Sec. 39. [116.9423] ENFORCEMENT.
138.18 	The agency shall enforce sections 116.9401 to 116.9424 and rules adopted 
138.19 	thereunder in the manner provided by section 115.071, subdivisions 1, 3, 4, 5, and 6. 
138.20 	Section 115.071, subdivision 2, does not apply to violations of sections 116.9401 to 
138.21 	116.9424 and rules adopted thereunder.

138.22 	Sec. 40. [116.9424] RULES.
138.23 	The commissioner or the commissioner of commerce may adopt rules as necessary 
138.24 	to implement, administer, and enforce sections 116.9401 to 116.9425.

138.25 	Sec. 41. [116.9425] REPORT.
138.26 	By November 15, 2015, and every three years thereafter, the commissioners of the 
138.27 	Pollution Control Agency, health, and commerce shall report to the legislative committees 
138.28 	with jurisdiction over environment and natural resources, commerce, and public health 
138.29 	on the implementation of sections 116.9401 to 116.9424.

138.30 	Sec. 42. [168.1295] STATE PARKS AND TRAILS PLATES.
138.31 		Subdivision 1.General requirements and procedures. (a) The commissioner shall 
138.32 	issue state parks and trails plates to an applicant who:
139.1 	(1) is a registered owner of a passenger automobile, recreational vehicle, one ton 
139.2 	pickup truck, or motorcycle;
139.3 	(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
139.4 	(3) pays the registration tax required under section 168.013;
139.5 	(4) pays the fees required under this chapter;
139.6 	(5) contributes a minimum of $50 annually to the state parks and trails donation 
139.7 	account established in section 85.056; and
139.8 	(6) complies with this chapter and rules governing registration of motor vehicles 
139.9 	and licensing of drivers.
139.10 	(b) The state parks and trails plate application must indicate that the contribution 
139.11 	specified under paragraph (a), clause (5), is a minimum contribution to receive the plate 
139.12 	and that the applicant may make an additional contribution to the account.
139.13 	(c) State parks and trails plates may be personalized according to section 168.12, 
139.14 	subdivision 2a.
139.15 		Subd. 2.Design. After consultation with interested groups, the commissioners of 
139.16 	natural resources and public safety shall jointly select a suitable symbol for use by the 
139.17 	commissioner of public safety to design the state parks and trails plates.
139.18 		Subd. 3.No refund. Contributions under this section must not be refunded.
139.19 		Subd. 4.Plate transfers. Notwithstanding section 168.12, subdivision 1, on 
139.20 	payment of a transfer fee of $5, plates issued under this section may be transferred to 
139.21 	another passenger automobile registered to the person to whom the plates were issued.
139.22 		Subd. 5.Contribution and fees credited. Contributions under subdivision 1, 
139.23 	paragraph (a), clause (5), must be paid to the commissioner and credited to the state 
139.24 	parks and trails donation account established in section 85.056. The other fees collected 
139.25 	under this section must be deposited in the vehicle services operating account of the 
139.26 	special revenue fund under section 299A.705.
139.27 		Subd. 6.Record. The commissioner shall maintain a record of the number of 
139.28 	plates issued under this section.
139.29 		Subd. 7.Exemption. Special plates issued under this section are not subject to 
139.30 	section 168.1293, subdivision 2.

139.31 	EFFECTIVE DATE. This section is effective the day following final enactment and 
139.32 	applies to applications submitted on or after January 1, 2016, or the date the new driver and 
139.33 	vehicle services information technology system is implemented, whichever comes later.

139.34 	Sec. 43. [347.57] DEFINITIONS.
140.1 		Subdivision 1.Terms. The definitions in this section apply to sections 347.57 
140.2 	to 347.64.
140.3 		Subd. 2.Animal. "Animal" means a dog or a cat.
140.4 		Subd. 3.Board. "Board" means the Board of Animal Health.
140.5 		Subd. 4.Cat. "Cat" means a mammal that is wholly or in part of the species Felis 
140.6 	domesticus. An adult cat is a cat 28 weeks of age or older. A kitten is a cat under 28 
140.7 	weeks of age.
140.8 		Subd. 5.Commercial breeder. "Commercial breeder" means a person who 
140.9 	possesses or has an ownership interest in animals and is engaged in the business of 
140.10 	breeding animals for sale or for exchange in return for consideration, and who possesses 
140.11 	ten or more adult intact animals and whose animals produce more than five total litters of 
140.12 	puppies or kittens per year.
140.13 		Subd. 6.Confinement area. "Confinement area" means a structure used or 
140.14 	designed for use to restrict an animal to a limited amount of space, such as a room, pen, 
140.15 	cage, kennel, compartment, crate, or hutch.
140.16 		Subd. 7.Dog. "Dog" means a mammal that is wholly or in part of the species Canis 
140.17 	familiaris. An adult dog is a dog 28 weeks of age or older. A puppy is a dog under 28 
140.18 	weeks of age.
140.19 		Subd. 8.Facility. "Facility" means the place used by a commercial breeder for 
140.20 	breeding animals, and includes all buildings, property, confinement areas, and vehicles.
140.21 		Subd. 9.Local animal control authority. "Local animal control authority" means 
140.22 	an agency of the state, county, municipality, or other political subdivision of the state that 
140.23 	is responsible for animal control operations in its jurisdiction.
140.24 		Subd. 10.Person. "Person" means a natural person, firm, partnership, corporation, 
140.25 	or association, however organized.
140.26 		Subd. 11.Possess. "Possess" means to have custody of or have control over.
140.27 		Subd. 12.Veterinarian. "Veterinarian" means a veterinarian in good standing and 
140.28 	licensed in the state of Minnesota.

140.29 	Sec. 44. [347.58] LICENSING AND INSPECTIONS.
140.30 		Subdivision 1.Licensing. (a) The board may grant an operating license to a 
140.31 	commercial breeder and must enforce sections 347.58 to 347.64.
140.32 	(b) Beginning July 1, 2015, a commercial breeder must obtain an annual license 
140.33 	for each facility it owns or operates. More than one building on the same premises is 
140.34 	considered one facility. The initial prelicense inspection fee and the annual license fee is 
140.35 	$10 per adult intact animal, but each fee must not exceed $250.
141.1 	(c) The board must perform an announced initial prelicense inspection within 60 
141.2 	days from the date of receiving a license application. A commercial breeder is not in 
141.3 	violation of this section if the commercial breeder has filed a completed license application 
141.4 	with the board and the board has not performed the initial prelicense inspection. The 
141.5 	board must inspect a commercial breeder's facility before an initial license is issued. The 
141.6 	initial prelicense inspection fee must be included with the license application. Upon 
141.7 	completion of the inspection, the inspector must provide the commercial breeder an 
141.8 	inspection certificate signed by the inspector in a format approved by the board.
141.9 	(d) The license application must indicate if a commercial breeder operates under 
141.10 	more than one name from a single location or has an ownership interest in any other 
141.11 	facility. License holders must keep separate records for each business name.
141.12 	(e) The application must include a statement that includes the following information:
141.13 	(1) whether any license held by an applicant under this section or under any other 
141.14 	federal, state, county, or local law, ordinance, or other regulation relating to breeding cats 
141.15 	or dogs was ever suspended, revoked, or denied; and
141.16 	(2) whether the applicant was ever convicted of animal cruelty.
141.17 	(f) An application from a partnership, corporation, or limited liability company must 
141.18 	include the name and address of all partners, directors, officers, or members and must 
141.19 	include a notation of any partners, directors, officers, members, or others authorized to 
141.20 	represent the partnership, corporation, or limited liability company.
141.21 	(g) A nonresident applicant must consent to adjudication of any violation under the 
141.22 	laws of the state of Minnesota and in Minnesota courts.
141.23 	(h) A license issued under this section is not transferable.
141.24 	(i) A license holder must apply for license renewal annually by submitting a renewal 
141.25 	application on a form approved by the board. The license renewal application must be 
141.26 	postmarked or submitted electronically in a method approved by the board by July 1 
141.27 	of each year. The board may assess a late renewal penalty of up to 50 percent of the 
141.28 	license fee. If a license is not renewed by August 1, the board may require the commercial 
141.29 	breeder to reapply for an initial license.
141.30 	(j) A commercial breeder must submit to the board an annual report by July 1 on a 
141.31 	form prepared by the board. The form must include the current number of cats and dogs at 
141.32 	the facility on the date of the report, the number of animals during the preceding year that 
141.33 	were sold, traded, bartered, leased, brokered, given away, euthanized, or deceased from 
141.34 	other causes, and any other information required by the board.
141.35 	(k) If a commercial breeder is required to be licensed by the United States 
141.36 	Department of Agriculture, United States Department of Agriculture inspection reports 
142.1 	and records relating to animal care plans and veterinary care must be made available 
142.2 	during an inspection, upon request.
142.3 	(l) A commercial breeder must prominently display the commercial breeder's license 
142.4 	at each facility.
142.5 	(m) A commercial breeder's state license number or a symbol approved by the board 
142.6 	must be included in all of the commercial breeder's advertisements or promotions that 
142.7 	pertain to animals being sold or traded including, but not limited to, all newspapers, 
142.8 	Internet, radio, or flyers.
142.9 	(n) A commercial breeder must notify the board by certified mail or electronically 
142.10 	in a method approved by the board within ten days of any change in address, name, 
142.11 	management, or substantial control and ownership of the business or operation.
142.12 	(o) The board must refuse to issue an initial license when a commercial breeder:
142.13 	(1) is in violation of section 343.21; 343.24; 343.27; 343.28; 343.31; 343.37; 346.37; 
142.14 	346.38; 346.39; 346.44; or 346.155;
142.15 	(2) has failed to meet any of the requirements of this section and section 347.59;
142.16 	(3) is in violation of a local ordinance regarding breeders;
142.17 	(4) has been convicted, other than a petty misdemeanor conviction, of cruelty to 
142.18 	animals under Minnesota law or a substantially similar animal cruelty law of another 
142.19 	jurisdiction;
142.20 	(5) has had a substantially similar license denied, revoked, or suspended by another 
142.21 	federal or state authority within the last five years; or
142.22 	(6) has falsified any material information requested by the board.
142.23 	(p) A person who has been an officer, agent, direct family member, or employee of a 
142.24 	commercial breeder whose license was revoked or suspended and who was responsible for 
142.25 	or participated in the violation that was a basis for the revocation or suspension may not 
142.26 	be licensed while the revocation or suspension is in effect.
142.27 		Subd. 2.Inspections. (a) The board must inspect each licensed facility at least 
142.28 	annually. The inspection must be with the commercial breeder or an agent of the 
142.29 	commercial breeder present. The inspector must submit an inspection report to the board 
142.30 	within ten days of each inspection on a form prepared by the board. The inspection report 
142.31 	form must list separately each law, rule, regulation, and ordinance the facility is not in 
142.32 	compliance with and what correction is required for compliance. The inspection report 
142.33 	form must document the animal inventory on the date of the inspection.
142.34 	(b) If, after the prelicense inspection, the commercial breeder has two consecutive 
142.35 	years of inspections with no violations, the board must inspect the commercial breeder at 
143.1 	least every two years. If the commercial breeder has any violations during an inspection or 
143.2 	if the board has cause, the board must inspect the commercial breeder at least annually.
143.3 	(c) If a license to operate is suspended, revoked, or denied, the board must be granted 
143.4 	access to the facility during normal business hours to verify that it is not operating.
143.5 		Subd. 3.Record requirements. (a) The commercial breeder must keep records on 
143.6 	each animal at the facility that includes:
143.7 	(1) the name, address, and United States Department of Agriculture license number, 
143.8 	if applicable, from whom an animal was received; the date the commercial breeder 
143.9 	received the animal; the date of the animal's birth; the breed, sex, color, and identifying 
143.10 	marks of the animal; any identifying tag, tattoo, microchip, or collar number; worming 
143.11 	treatments, vaccinations, and name of the person who administered the vaccination; 
143.12 	medication received by the animal while in the possession of the commercial breeder; and 
143.13 	any disease conditions diagnosed by a veterinarian; and
143.14 	(2) the name and address of the person or entity to whom an animal was transferred.
143.15 	(b) The commercial breeder must maintain a copy of the records required to be 
143.16 	kept under this subdivision for two years.
143.17 		Subd. 4.Veterinary protocol. (a) A commercial breeder must establish and 
143.18 	maintain a written protocol for disease control and prevention, euthanasia, and veterinary 
143.19 	care of animals at each facility. The initial protocol must be developed under the direction 
143.20 	and supervision of the board. A commercial breeder must maintain a written protocol that 
143.21 	is updated at least every 12 months and that is signed and dated by the board or by a 
143.22 	veterinarian along with the commercial breeder. The written protocol must be available to 
143.23 	the board upon request or at the time of inspection.
143.24 	(b) An animal sold or otherwise distributed by a commercial breeder must be 
143.25 	accompanied by a veterinary health certificate completed by a veterinarian. The certificate 
143.26 	must be completed within 30 days prior to the sale or distribution and must indicate that 
143.27 	the animal is current with vaccinations and has no signs of infectious or contagious 
143.28 	diseases. The certificate accompanying an adult dog that was not spayed or neutered must 
143.29 	indicate that the dog has no signs of infectious or contagious diseases and was tested for 
143.30 	canine brucellosis with a test approved by the board and found to be negative.
143.31 		Subd. 5.Posting of information. The board must maintain and post in a timely 
143.32 	manner on its Web site a list of commercial breeders licensed and in good standing 
143.33 	under this section.

143.34 	Sec. 45. [347.59] STANDARDS OF CARE.
143.35 	(a) A commercial breeder must comply with chapters 343 and 346.
144.1 	(b) A commercial breeder must ensure that animals that are part of the commercial 
144.2 	breeder's breeding business operations are cared for as follows:
144.3 	(1) cats must not be housed in outdoor confinement areas;
144.4 	(2) animals exercised in groups must be compatible and show no signs of contagious 
144.5 	or infectious disease;
144.6 	(3) females in estrus must not be housed in the same confinement area with 
144.7 	unneutered males, except for breeding purposes;
144.8 	(4) animals must be provided daily enrichment and must be provided positive physical 
144.9 	contact with human beings and compatible animals at least twice daily unless a veterinarian 
144.10 	determines such activities would adversely affect the health or well-being of the animal;
144.11 	(5) animals must not be sold, traded, or given away before the age of eight weeks 
144.12 	unless a veterinarian determines it would be in the best interests of the health or well-being 
144.13 	of the animal;
144.14 	(6) the commercial breeder must provide identification and tracking for each animal, 
144.15 	which is not transferable to another animal; and
144.16 	(7) the commercial breeder must provide adequate staff to maintain the facility and 
144.17 	observe each animal daily to monitor each animal's health and well-being, and to properly 
144.18 	care for the animals.
144.19 	(c) A commercial breeder must not knowingly hire staff or independent contractors 
144.20 	who have been convicted of cruelty to animals under the law of any jurisdiction.
144.21 	(d) A commercial breeder must comply with any additional standards the board 
144.22 	considers necessary to protect the public health and welfare of animals covered under 
144.23 	sections 347.57 to 347.61. The standards must be established by rule.
144.24 	(e) A United States Department of Agriculture (USDA) licensed breeder or dealer 
144.25 	who is in compliance with the minimum USDA regulations governing the license holder 
144.26 	as they relate to animal confinement areas as of the effective date of this section does not 
144.27 	have to comply with the minimum confinement area measurements under section 346.39, 
144.28 	subdivision 4, for existing confinement areas in each facility the breeder or dealer owns. If 
144.29 	a USDA-licensed breeder or dealer builds a new confinement area after the effective date 
144.30 	of this section, those minimum standards must meet or exceed the minimum specifications 
144.31 	as they relate to confinement area size under section 346.39, subdivision 4.

144.32 	Sec. 46. [347.60] INVESTIGATIONS.
144.33 	(a) The board must initiate an investigation upon receiving a formal complaint 
144.34 	alleging violations of section 347.58 or 347.59.
145.1 	(b) When a local animal control authority, a peace officer, or a humane agent 
145.2 	appointed under section 343.01 is made aware of an alleged violation under this chapter 
145.3 	or chapter 343 or 346, committed by a commercial breeder, the local animal control 
145.4 	authority, peace officer, or humane agent appointed under section 343.01 must report the 
145.5 	alleged violation in a timely manner to the board.

145.6 	Sec. 47. [347.61] CIVIL ENFORCEMENT.
145.7 		Subdivision 1.Correction orders. (a) The board may issue a correction order 
145.8 	requiring a commercial breeder to correct a violation of state statutes, rules, and 
145.9 	regulations governing breeding facilities. The correction order must state the deficiencies 
145.10 	that constitute the violation; the specific statute, rule, or regulation violated; and when 
145.11 	the violation must be corrected.
145.12 	(b) A commercial breeder may ask the board to reconsider any portion of the 
145.13 	correction order that the commercial breeder believes is in error. The request for 
145.14 	reconsideration must be made in writing by certified mail or electronically in a method 
145.15 	approved by the board within seven days after receipt of the correction order. The 
145.16 	request for reconsideration does not stay the correction order. The board must respond 
145.17 	to the request for reconsideration within 15 days after receiving a request. The board's 
145.18 	disposition of a request for reconsideration is final. The board may extend the time for 
145.19 	complying with a correction order after receiving a request for reconsideration if necessary.
145.20 	(c) The board must reinspect the facility within 15 days after the time for correcting 
145.21 	the violation has passed to determine whether the violation has been corrected. If the 
145.22 	violation has been corrected, the board must notify the commercial breeder in writing that 
145.23 	the commercial breeder is in compliance with the correction order. The board may charge 
145.24 	a reinspection fee to determine if a previous violation has been corrected.
145.25 		Subd. 2.Administrative penalty orders. After the inspection required under 
145.26 	subdivision 1, paragraph (c), the board may issue an order requiring violations to 
145.27 	be corrected and administratively assessing monetary penalties for violations. The 
145.28 	administrative penalty order must include a citation of the statute, rule, or regulation 
145.29 	violated; a description of the violation; and the amount of the penalty for each violation. A 
145.30 	single correction order may assess a maximum administrative penalty of $5,000.
145.31 		Subd. 3.Injunctive relief. In addition to any other remedy provided by law, the 
145.32 	board may bring an action for injunctive relief in the district court in Ramsey County or in 
145.33 	the county in which a violation of the statutes, rules, or regulations governing the breeding 
145.34 	of cats and dogs occurred to enjoin the violation.
146.1 		Subd. 4.Cease and desist. The board must issue an order to cease a practice if its 
146.2 	continuation would result in an immediate risk to animal welfare or public health. An 
146.3 	order issued under this subdivision is effective for a maximum of 72 hours. The board or 
146.4 	its designated agent must seek an injunction or take other administrative action authorized 
146.5 	by law to restrain a practice beyond 72 hours. The issuance of a cease-and-desist order 
146.6 	does not preclude other enforcement action by the board.
146.7 		Subd. 5.Refusal to reissue license; license suspension or revocation. (a) The 
146.8 	board may suspend, revoke, or refuse to renew a license as follows:
146.9 	(1) for failure to comply with a correction order;
146.10 	(2) for failure to pay an administrative penalty;
146.11 	(3) for failure to meet the requirements of section 347.58 or 347.59; or
146.12 	(4) for falsifying information requested by the board.
146.13 	A license suspension, revocation, or nonrenewal may be appealed through the Office of 
146.14 	Administrative Hearings. A notice of intent to appeal must be filed in writing with the 
146.15 	board within 20 days after receipt of the notice of suspension, revocation, or nonrenewal.
146.16 	(b) The board must revoke a license if a commercial breeder has been convicted 
146.17 	of cruelty to animals under Minnesota law or a substantially similar animal cruelty law 
146.18 	of another jurisdiction, or for the denial, revocation, or suspension of a similar license 
146.19 	by another federal or state authority. A license revocation under this subdivision may be 
146.20 	appealed through the Office of Administrative Hearings. A notice of intent to appeal must 
146.21 	be filed in writing with the board within 20 days after receipt of the notice of revocation.
146.22 	(c) A commercial breeder whose license is revoked may not reapply for licensure for 
146.23 	two years after the date of revocation. The license is permanently revoked if the basis for 
146.24 	the revocation was a gross misdemeanor or felony conviction for animal cruelty.
146.25 	(d) A commercial breeder whose license is suspended or revoked two times is 
146.26 	permanently barred from licensure.
146.27 		Subd. 6.Administrative hearing rights. (a) Except as provided in paragraph 
146.28 	(b), if the board proposes to refuse to renew, suspend, or revoke a license, the board 
146.29 	must first notify the commercial breeder in writing of the proposed action and provide an 
146.30 	opportunity to request a hearing under the contested case provisions of chapter 14. If the 
146.31 	commercial breeder does not request a hearing within 20 days after receipt of the notice of 
146.32 	the proposed action, the board may proceed with the action without a hearing.
146.33 	(b) The contested case provisions of chapter 14 do not apply when the board denies 
146.34 	a license based on an applicant's failure to meet the minimum qualifications for licensure.
146.35 	(c) A commercial breeder may appeal the amount of an administrative penalty 
146.36 	order through the Office of Administrative Hearings pursuant to the procedures set forth 
147.1 	in chapter 14. A commercial breeder wishing to file an appeal must notify the board in 
147.2 	writing within 20 days after receipt of the administrative penalty order.
147.3 		Subd. 7.Other jurisdictions. The board may accept as prima facie evidence of 
147.4 	grounds for an enforcement action under this section any enforcement or disciplinary 
147.5 	action from another jurisdiction, if the underlying violation would be grounds for a 
147.6 	violation under the provisions of this section.
147.7 		Subd. 8.Appeals. A final order by the board may be appealed to the Minnesota 
147.8 	Court of Appeals.

147.9 	Sec. 48. [347.615] BIOSECURITY; ENTRY INTO FACILITIES.
147.10 	No law enforcement officer, agent of the board, or other official may enter a 
147.11 	commercial breeder facility unless the person follows either the biosecurity procedure 
147.12 	issued by the board or a reasonable biosecurity procedure maintained and prominently 
147.13 	posted by the commercial breeder at each entry to a facility, whichever is more stringent. 
147.14 	This section does not apply in emergency or exigent circumstances.

147.15 	Sec. 49. [347.62] PENALTIES.
147.16 	(a) A violation of section 347.58 or 347.59 that results in cruelty or torture to an 
147.17 	animal, as those terms are defined in section 343.20, subdivision 3, is subject to the 
147.18 	penalties in section 343.21, subdivisions 9 and 10, relating to pet or companion animals.
147.19 	(b) It is a misdemeanor to falsify information in a license application, annual report, 
147.20 	or record.
147.21 	(c) It is a misdemeanor for an unlicensed commercial breeder to advertise animals 
147.22 	for sale.
147.23 	(d) It is a misdemeanor for a commercial breeder to operate without a license.

147.24 	Sec. 50. [347.63] DOG AND CAT BREEDERS LICENSING ACCOUNT; 
147.25 	APPROPRIATION.
147.26 	A dog and cat breeders licensing account is created in the special revenue fund. 
147.27 	All fees and penalties collected by the board under sections 347.58 to 347.62 must be 
147.28 	deposited in the state treasury and credited to the dog and cat breeders licensing account 
147.29 	in the special revenue fund. Money in the account, including interest on the account, is 
147.30 	annually appropriated to the board to administer those sections.

147.31 	Sec. 51. [347.64] APPLICABILITY.
147.32 	Sections 347.57 to 347.63 do not apply to:
148.1 	(1) any species other than dogs and cats as they are defined in section 347.57; and
148.2 	(2) veterinary clinics or veterinary hospitals.

148.3 	Sec. 52. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by 
148.4 	Laws 2009, chapter 37, article 1, section 61, is amended to read:

148.5	Subd. 7.Fish and Wildlife Management
 		123,000
		119,000

148.6	Appropriations by Fund
	
148.7	General
	-0-
	(427,000)
	
148.8	Game and Fish
	123,000
	546,000
	
148.9 	$329,000 in 2009 is a reduction for fish and 
148.10 	wildlife management.
148.11 	$46,000 in 2009 is a reduction in the 
148.12 	appropriation for the Minnesota Shooting 
148.13 	Sports Education Center.
148.14 	$52,000 in 2009 is a reduction for licensing.
148.15 	$123,000 in 2008 and $246,000 in 2009 are 
148.16 	from the game and fish fund to implement 
148.17 	fish virus surveillance, prepare infrastructure 
148.18 	to handle possible outbreaks, and implement 
148.19 	control procedures for highest risk waters 
148.20 	and fish production operations. This is a 
148.21 	onetime appropriation.
148.22 	Notwithstanding Minnesota Statutes, section 
148.23 	297A.94, paragraph (e), $300,000 in 2009 
148.24 	is from the second year appropriation in 
148.25 	Laws 2007, chapter 57, article 1, section 4, 
148.26 	subdivision 7, from the heritage enhancement 
148.27 	account in the game and fish fund to study, 
148.28 	predesign, and design a shooting sports 
148.29 	facility in the seven-county metropolitan 
148.30 	area for shooting sports facilities. Of this 
148.31 	amount, $100,000 is for a grant to the Itasca 
148.32 	County Gun Club for shooting sports facility 
148.33 	improvements; and the remaining balance 
148.34 	is for trap shooting facility grants under 
149.1 	Minnesota Statutes, section 87A.10. This is 
149.2 	available onetime only and is available until 
149.3 	expended.
149.4 	$300,000 in 2009 is appropriated from the 
149.5 	game and fish fund for only activities that 
149.6 	improve, enhance, or protect fish and wildlife 
149.7 	resources. This is a onetime appropriation.

149.8 	Sec. 53. Laws 2012, chapter 249, section 11, is amended to read:
149.9 	Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND 
149.10 	LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
 149.11 	(a) The costs of the school trust lands director, including the costs of hiring staff, 
149.12 	and the Legislative Permanent School Fund Commission for fiscal years 2014 and, 2015, 
149.13 	and 2016 shall be from the state forest developmentsuspense account under Minnesota 
149.14 	Statutes, section 16A.125, and from the minerals management account under Minnesota 
149.15 	Statutes, section 93.2236, as appropriated by the legislature.
149.16 	(b) The school trust lands director and the Legislative Permanent School Fund 
149.17 	Commission shall submit to the 20142015 legislature a proposal to fund the operational 
149.18 	costs of the Legislative Permanent School Fund Commission and school trust lands 
149.19 	director and staff with a cost certification method using revenues generated by the 
149.20 	permanent school fund lands.

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

149.22 	Sec. 54. RECOGNITION; COMMERCIAL BREEDER EXCELLENCE.
 149.23 	The Board of Animal Health, in consultation with representatives of the licensed 
149.24 	commercial breeder industry, must develop a program to recognize persons who 
149.25 	demonstrate commercial breeder excellence and exceed the standards and practices 
149.26 	required of commercial breeders under this act.

149.27 	Sec. 55. REGISTRATION; INITIAL PRELICENSE INSPECTIONS.
 149.28 		Subdivision 1.Commercial breeder registration. Beginning July 1, 2014, until 
149.29 	June 30, 2015, a commercial breeder must register each facility it owns or operates by 
149.30 	paying a registration fee not to exceed $250 per facility to the Board of Animal Health. 
149.31 		Subd. 2.Initial prelicense inspections. Beginning July 1, 2014, the board may 
149.32 	begin the initial prelicense inspections under Minnesota Statutes, section 347.58.
150.1 		Subd. 3.Deposits of fees. Fees collected under this section must be deposited in the 
150.2 	dog and cat breeders licensing account in the special revenue fund.

150.3 	Sec. 56. BEE VALUATION PROTOCOL REQUIRED.
 150.4 	No later than January 1, 2015, the commissioner of agriculture must report to 
150.5 	the house of representatives and senate committees with jurisdiction over agriculture 
150.6 	finance the protocol that the commissioner developed, in consultation with experts, for 
150.7 	determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for 
150.8 	purposes of compensation under Minnesota Statutes, section 18B.055.

150.9 	Sec. 57. INVASIVE TERRESTRIAL PLANTS AND PESTS CENTER.
 150.10 		Subdivision 1.Establishment. The Board of Regents of the University of Minnesota 
150.11 	is requested to establish an Invasive Terrestrial Plants and Pests Center to prevent and 
150.12 	minimize the threats posed by terrestrial invasive plants, other weeds, pathogens, and 
150.13 	pests in order to protect the state's prairies, forests, wetlands, and agricultural resources. 
150.14 	With the approval of the board, the College of Food, Agricultural and Natural Resource 
150.15 	Science, in coordination with the College of Biological Sciences, shall administer the 
150.16 	center utilizing the following departments:
150.17 	(1) Entomology;
150.18 	(2) Plant Pathology;
150.19 	(3) Forest Resources;
150.20 	(4) Horticultural Science;
150.21 	(5) Fisheries Wildlife and Conservation Biology;
150.22 	(6) Agronomy and Plant Genetics;
150.23 	(7) Plant Biology; and
150.24 	(8) Ecology, Evolution, and Behavior.
150.25 	The college may also utilize the following research and outreach centers in 
150.26 	achieving the purposes of this section: Cloquet Forestry Center; North Central Research 
150.27 	and Outreach Center; Northwest Research and Outreach Center; Southern Research and 
150.28 	Outreach Center; Southwest Research and Outreach Center; West Central Research and 
150.29 	Outreach Center; Rosemount Research and Outreach Center; Horticultural Research 
150.30 	Center; and Sand Plain Research Center.
150.31 		Subd. 2.Purpose. The purpose of the Invasive Terrestrial Plants and Pests Center is 
150.32 	to research and develop effective measures to prevent and minimize the threats posed by 
151.1 	terrestrial invasive plants, pathogens, and pests, including agricultural weeds and pests, in 
151.2 	order to protect the state's native prairies, forests, wetlands, and agricultural resources, by:
151.3 	(1) creating a prioritized list of pest and plant species that threaten the state's prairies, 
151.4 	forests, wetlands, and agricultural resources and making the list publicly accessible; and
151.5 	(2) conducting research focused on the species included on the prioritized list 
151.6 	developed under this subdivision that includes:
151.7 	(i) development of new control methods, including biocontrols;
151.8 	(ii) development of integrated pest management tools that minimize nontarget 
151.9 	impacts;
151.10 	(iii) research projects focused on establishment prevention, early detection, and 
151.11 	rapid response;
151.12 	(iv) an analysis of any consequences related to the management of prioritized species 
151.13 	to the state's water, pollinators, and native prairies and other native species; and
151.14 	(v) reports on the results that are made publicly accessible.
151.15 		Subd. 3.Report. By January 15, each year as a condition of the appropriation 
151.16 	provided under this act, the Board of Regents of the University of Minnesota shall submit 
151.17 	a report to the chairs and ranking minority members of the house of representatives and 
151.18 	senate committees and divisions with jurisdiction over the environment and natural 
151.19 	resources and agriculture on: (1) the activities and outcomes of the center; and (2) any 
151.20 	recommendations for additional funding for education, implementation, or other activities.

151.21 	Sec. 58.  REPEALER.
 151.22 	Minnesota Statutes 2012, section 115A.551, subdivision 2, is repealed.
151.23 	EDUCATION

151.24 	ARTICLE 17
151.25 	GENERAL EDUCATION

151.26 	Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
151.27 		Subd. 2.Reserve revenue. Each district that is a member of an area learning center 
151.28 	or alternative learning program must reserve revenue in an amount equal to the sum of 
151.29 	(1) at least 90 and no more than 100 percent of the district average general education 
151.30 	revenue per adjusted pupil unit minus an amount equal to the product of the formula 
151.31 	allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated 
151.32 	without basic skills revenue and transportation sparsity revenue, times the number of 
151.33 	pupil units attending an area learning center or alternative learning program under this 
152.1 	section, plus (2) the amount of basic skills revenue generated by pupils attending the area 
152.2 	learning center or alternative learning program. The amount of reserved revenue under 
152.3 	this subdivision may only be spent on program costs associated with the area learning 
152.4 	center or alternative learning program.

152.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
152.6 	and later.

152.7 	Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is 
152.8 	amended to read:
152.9 		Subd. 5.Levy recognition.  For fiscal year 2011 2014 and later years, in June of 
152.10 	each year, the school district must recognize as revenue, in the fund for which the levy 
152.11 	was made, the lesser of:
152.12 	(1) the sum of May, June, and July school district tax settlement revenue received in 
152.13 	that calendar year, plus general education aid according to section 126C.13, subdivision 
152.14 	4, received in July and August of that calendar year; or
152.15 	(2) the sum of:
152.16 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
152.17 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
152.18 	according to section 126C.17 in calendar year 2000; plus
152.19 	(ii) the entire amount of the levy certified in the prior calendar year according 
152.20 	to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue 
152.21 	under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special 
152.22 	School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and 
152.23 	Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a), 
152.24 	and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
152.25 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
152.26 	school district's general and community service funds, plus or minus auditor's adjustments, 
152.27 	that remains after subtracting the referendum levy certified according to section 126C.17 
152.28 	and the amount recognized according to item (ii).

152.29 	Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
152.30 		Subd. 9.Enrollment priority. A postsecondary institution shall give priority to its 
152.31 	postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 
152.32 	A postsecondary institution may provide information about its programs to a secondary 
152.33 	school or to a pupil or parent and it may advertise or otherwise recruit or solicit a 
152.34 	secondary pupil to enroll in its programs on educational and programmatic grounds only. 
153.1 	An institution must not enroll secondary pupils, for postsecondary enrollment options 
153.2 	purposes, in remedial, developmental, or other courses that are not college level except 
153.3 	when a student eligible to participate in the graduation incentives program under section 
153.4 	124D.68 enrolls full time in a middle or early college program specifically designed to 
153.5 	allow the student to earn dual high school and college credit. In this case, the student shall 
153.6 	receive developmental college credit and not college credit for completing remedial or 
153.7 	developmental courses. Once a pupil has been enrolled in a postsecondary course under 
153.8 	this section, the pupil shall not be displaced by another student.

153.9 	EFFECTIVE DATE. This section is effective July 1, 2014.

153.10 	Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
153.11 		Subd. 13.Financial arrangements. For a pupil enrolled in a course under this 
153.12 	section, the department must make payments according to this subdivision for courses that 
153.13 	were taken for secondary credit.
153.14 	The department must not make payments to a school district or postsecondary 
153.15 	institution for a course taken for postsecondary credit only. The department must not 
153.16 	make payments to a postsecondary institution for a course from which a student officially 
153.17 	withdraws during the first 14 days of the quarter or semester or who has been absent from 
153.18 	the postsecondary institution for the first 15 consecutive school days of the quarter or 
153.19 	semester and is not receiving instruction in the home or hospital.
153.20 	A postsecondary institution shall receive the following:
153.21 	(1) for an institution granting quarter credit, the reimbursement per credit hour shall 
153.22 	be an amount equal to 88 percent of the product of the formula allowance minus $415
153.23 	 $425, multiplied by 1.3 1.2, and divided by 45; or
153.24 	(2) for an institution granting semester credit, the reimbursement per credit hour 
153.25 	shall be an amount equal to 88 percent of the product of the general revenue formula 
153.26 	allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
153.27 	The department must pay to each postsecondary institution 100 percent of the 
153.28 	amount in clause (1) or (2) within 30 days of receiving initial enrollment information 
153.29 	each quarter or semester. If changes in enrollment occur during a quarter or semester, 
153.30 	the change shall be reported by the postsecondary institution at the time the enrollment 
153.31 	information for the succeeding quarter or semester is submitted. At any time the 
153.32 	department notifies a postsecondary institution that an overpayment has been made, the 
153.33 	institution shall promptly remit the amount due.

153.34 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

154.1 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is 
154.2 	amended to read:
154.3 		Subdivision 1.General education revenue.  General education revenue must be 
154.4 	paid to a charter school as though it were a district. The general education revenue 
154.5 	for each adjusted pupil unit is the state average general education revenue per pupil 
154.6 	unit, plus the referendum equalization aid allowance in the pupil's district of residence, 
154.7 	minus an amount equal to the product of the formula allowance according to section 
154.8 	126C.10, subdivision 2, times .0466, calculated without declining enrollment revenue, 
154.9 	local optional revenue, basic skills revenue, extended time revenue, pension adjustment 
154.10 	revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment 
154.11 	revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and 
154.12 	transition revenue as though the school were a school district. The general education 
154.13 	revenue for each extended time pupil unit equals $4,794.

154.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
154.15 	and later.

154.16 	Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
154.17 		Subd. 2.English learner. (a) "English learner" means a pupil in kindergarten 
154.18 	through grade 12 who meets the following requirements:
154.19 	(1) the pupil, as declared by a parent or guardian first learned a language other than 
154.20 	English, comes from a home where the language usually spoken is other than English, or 
154.21 	usually speaks a language other than English; and
154.22 	(2) the pupil is determined by a valid assessment measuring the pupil's English 
154.23 	language proficiency and by developmentally appropriate measures, which might include 
154.24 	observations, teacher judgment, parent recommendations, or developmentally appropriate 
154.25 	assessment instruments, to lack the necessary English skills to participate fully in 
154.26 	academic classes taught in English.
154.27 	(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school 
154.28 	in grades any grade 4 through 12 who was enrolled in a Minnesota public school on 
154.29 	the dates during in the previous school year when a commissioner provided took a 
154.30 	commissioner-provided assessment that measures measuring the pupil's emerging 
154.31 	academic English was administered, shall not be counted as an English learner in 
154.32 	calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
154.33 	 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil 
154.34 	scored below the state cutoff score or is otherwise counted as a nonproficient participant 
154.35 	on an the assessment measuring the pupil's emerging academic English provided by the 
155.1 	commissioner during the previous school year, or, in the judgment of the pupil's classroom 
155.2 	teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate 
155.3 	academic language proficiency in English, including oral academic language, sufficient to 
155.4 	successfully and fully participate in the general core curriculum in the regular classroom.
155.5 	(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 
155.6 	12 shall not be counted as an English learner in calculating English learner pupil units 
155.7 	under section 126C.05, subdivision 17, and shall not generate state English learner aid 
155.8 	under section 124D.65, subdivision 5, if:
155.9 	(1) the pupil is not enrolled during the current fiscal year in an educational program 
155.10 	for English learners in accordance with under sections 124D.58 to 124D.64; or
155.11 	(2) the pupil has generated five six  or more years of average daily membership in 
155.12 	Minnesota public schools since July 1, 1996.

155.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
155.14 	and later.

155.15 	Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.65, subdivision 5, is 
155.16 	amended to read:
155.17 		Subd. 5.School district EL revenue. (a) A district's English learner programs 
155.18 	revenue equals the product of (1) $704 $726 times (2) the greater of 20 or the adjusted 
155.19 	average daily membership of eligible English learners enrolled in the district during the 
155.20 	current fiscal year.
155.21 	(b) A pupil ceases to generate state English learner aid in the school year following 
155.22 	the school year in which the pupil attains the state cutoff score on a commissioner-provided 
155.23 	assessment that measures the pupil's emerging academic English.

155.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
155.25 	and later.

155.26 	Sec. 8. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
155.27 		Subdivision 1.Approved recovery program. "Approved recovery program" means 
155.28 	a course of instruction offered by a recovery school that provides academic services, 
155.29 	assistance with recovery, and continuing care to students recovering from substance abuse 
155.30 	or dependency. A recovery program may be offered in a transitional academic setting 
155.31 	designed to meet graduation requirements. A recovery program must be approved by the 
155.32 	commissioner of education. The commissioner may specify the manner and form of the 
155.33 	application for the approval of a recovery school or recovery program.
156.1 		Subd. 2. Eligibility. An approved recovery program is eligible for an annual 
156.2 	recovery program grant of up to $125,000 to pay for a portion of the costs of recovery 
156.3 	program support staff under this section. "Recovery program support staff" means licensed 
156.4 	alcohol and chemical dependency counselors, licensed school counselors, licensed school 
156.5 	psychologists, licensed school nurses, and licensed school social workers.

156.6 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
156.7 	and later.

156.8 	Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is 
156.9 	amended to read:
156.10 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
156.11 	year program under section 124D.128, an area learning center or an alternative learning 
156.12 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
156.13 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
156.14 	subdivision 4, for more than 1,020 hours in a school year for a secondary student, more 
156.15 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
156.16 	year for a kindergarten student without a disability in an all-day kindergarten program, 
156.17 	or more than 425 hours in a school year for a half-day kindergarten student without a 
156.18 	disability, that pupil may be counted as more than one pupil in average daily membership 
156.19 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
156.20 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
156.21 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
156.22 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
156.23 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
156.24 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the 
156.25 	number of hours required for a full-time kindergarten student without a disability in the 
156.26 	district to 425 850 for a kindergarten student without a disability; and (iv) the greater of 
156.27 	425 hours or the number of hours required for a half-time kindergarten student without a 
156.28 	disability in the district to 425 for a half-day kindergarten student without a disability. 
156.29 	Hours that occur after the close of the instructional year in June shall be attributable to 
156.30 	the following fiscal year. A student in kindergarten or grades 1 through 12 must not be 
156.31 	counted as more than 1.2 pupils in average daily membership under this subdivision.
156.32 	(b)(i) To receive general education revenue for a pupil in an area learning center 
156.33 	or alternative learning program that has an independent study component, a district 
156.34 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
156.35 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
157.1 	district that has an area learning center or alternative learning program must reserve 
157.2 	revenue in an amount equal to at least 90 and not more than 100 percent of the district 
157.3 	average general education revenue per pupil unit, minus an amount equal to the product 
157.4 	of the formula allowance according to section 126C.10, subdivision 2, times .0466, 
157.5 	calculated without basic skills and transportation sparsity revenue, times the number of 
157.6 	pupil units generated by students attending an area learning center or alternative learning 
157.7 	program. The amount of reserved revenue available under this subdivision may only be 
157.8 	spent for program costs associated with the area learning center or alternative learning 
157.9 	program. Basic skills revenue generated according to section 126C.10, subdivision 4, by 
157.10 	pupils attending the eligible program must be allocated to the program.
157.11 	(ii) General education revenue for a pupil in a state-approved alternative program 
157.12 	without an independent study component must be prorated for a pupil participating for 
157.13 	less than a full year, or its equivalent. The district must develop a continual learning plan 
157.14 	for the pupil, consistent with section 124D.128, subdivision 3. Each school district that 
157.15 	has an area learning center or alternative learning program must reserve revenue in an 
157.16 	amount equal to at least 90 and not more than 100 percent of the district average general 
157.17 	education revenue per pupil unit, minus an amount equal to the product of the formula 
157.18 	allowance according to section 126C.10, subdivision 2, times .0466, calculated without 
157.19 	basic skills and transportation sparsity revenue, times the number of pupil units generated 
157.20 	by students attending an area learning center or alternative learning program. The amount 
157.21 	of reserved revenue available under this subdivision may only be spent for program costs 
157.22 	associated with the area learning center or alternative learning program. Basic skills 
157.23 	revenue generated according to section 126C.10, subdivision 4, by pupils attending the 
157.24 	eligible program must be allocated to the program.
157.25 	(iii) General education revenue for a pupil in a state-approved alternative program 
157.26 	that has an independent study component must be paid for each hour of teacher contact 
157.27 	time and each hour of independent study time completed toward a credit or graduation 
157.28 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
157.29 	number of hours of teacher contact time and independent study time divided by 1,020.
157.30 	(iv) For a state-approved alternative program having an independent study 
157.31 	component, the commissioner shall require a description of the courses in the program, the 
157.32 	kinds of independent study involved, the expected learning outcomes of the courses, and 
157.33 	the means of measuring student performance against the expected outcomes.

157.34 	Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is 
157.35 	amended to read:
158.1 		Subd. 2.Basic revenue. For fiscal year 2014, the basic revenue for each district 
158.2 	equals the formula allowance times the adjusted marginal cost pupil units for the school 
158.3 	year. For fiscal year 2015 and later, the basic revenue for each district equals the formula 
158.4 	allowance times the adjusted pupil units for the school year. The formula allowance for 
158.5 	fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The 
158.6 	formula allowance for fiscal year 2015 and later is $5,806 $5,864.

158.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
158.8 	and later.

158.9 	Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, 
158.10 	is amended to read:
158.11 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue for 
158.12 	fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal 
158.13 	cost pupil units of the district for each pupil in average daily membership in excess of 1.0 
158.14 	and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended 
158.15 	time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum 
158.16 	of the adjusted pupil units of the district for each pupil in average daily membership in 
158.17 	excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
158.18 	(b) A school district's extended time revenue may be used for extended day 
158.19 	programs, extended week programs, summer school, and other programming authorized 
158.20 	under the learning year program.

158.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
158.22 	and applies to revenue for fiscal year 2014 and later.

158.23 	Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, 
158.24 	is amended to read:
158.25 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
158.26 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
158.27 	revenue, and referendum revenue is less than the value of the school district at or 
158.28 	immediately above the 95th percentile of school districts in its equity region for those 
158.29 	revenue categories; and
158.30 	(2) the school district's administrative offices are not located in a city of the first 
158.31 	class on July 1, 1999.
158.32 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
158.33 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
159.1 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
159.2 	equity index computed under subdivision 27.
159.3 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
159.4 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
159.5 	units for that year times $14.
159.6 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
159.7 	equal to the district's resident adjusted pupil units times the difference between ten percent 
159.8 	of the statewide average amount of referendum revenue per resident adjusted pupil unit for 
159.9 	that year and the district's referendum revenue per resident adjusted pupil unit. A school 
159.10 	district's revenue under this paragraph must not exceed $100,000 for that year.
159.11 	(e) A school district's equity revenue for a school district located in the metro equity 
159.12 	region or a school district with its administrative offices located in any Minnesota county 
159.13 	in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area delineated in 
159.14 	2009 by the United States Census Bureau equals the amount computed in paragraphs (b), 
159.15 	(c), and (d) multiplied by 1.25.
159.16 	(f) A school district's additional equity revenue equals $50 times its adjusted pupil 
159.17 	units.

159.18 	EFFECTIVE DATE. The changes in paragraph (d) are effective for revenue for 
159.19 	fiscal year 2015 and later. The changes in paragraph (e) are effective for revenue for 
159.20 	fiscal years 2017 and later.

159.21 	Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
159.22 		Subd. 25.Regional equity gap. The regional equity gap equals the difference 
159.23 	between the value of the school district at or immediately above the fifth percentile of 
159.24 	adjusted general revenue per adjusted marginal cost pupil unit and the value of the school 
159.25 	district at or immediately above the 95th percentile of adjusted general revenue per 
159.26 	adjusted marginal cost pupil unit.

159.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
159.28 	and later.

159.29 	Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
159.30 		Subd. 26.District equity gap. A district's equity gap equals the greater of zero 
159.31 	or the difference between the district's adjusted general revenue and the value of the 
159.32 	school district at or immediately above the regional 95th percentile of adjusted general 
159.33 	revenue per adjusted marginal cost pupil unit.

160.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
160.2 	and later.

160.3 	Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, 
160.4 	is amended to read:
160.5 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
160.6 	sum of the transition revenue the district would have received for fiscal year 2015 under 
160.7 	Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater 
160.8 	of zero or the difference between:
160.9 	(1) the sum of:
160.10 	(i) the general education revenue the district would have received for fiscal year 
160.11 	2015 according to Minnesota Statutes 2012, section 126C.10;
160.12 	(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 
160.13 	Statutes 2012, section 124D.86;
160.14 	(iii) the pension adjustment the district would have received for fiscal year 2015 
160.15 	under Minnesota Statutes 2012, section 127A.50;
160.16 	(iv) the special education aid the district would have received for fiscal year 2015 
160.17 	under Minnesota Statutes 2012, section 125A.76; and
160.18 	(v) the special education excess cost aid the district would have received for fiscal 
160.19 	year 2015 under Minnesota Statutes 2012, section 125A.79; and
160.20 	(2) the sum of the district's:
160.21 	(i) general education revenue for fiscal year 2015 excluding transition revenue 
160.22 	under this section;
160.23 	(ii) achievement and integration revenue for fiscal year 2015 under section 
160.24 	124D.862; and
160.25 	(iii) special education aid for fiscal year 2015 under section 125A.76; and
160.26 	(iv) alternative teacher compensation revenue for fiscal year 2015 under section 
160.27 	122A.415,
160.28 	divided by the number of adjusted pupil units for fiscal year 2015.
160.29 	(b) A district's transition revenue for fiscal year 2015 and later equals the product of 
160.30 	the district's transition allowance times the district's adjusted pupil units.

160.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
160.32 	and later.

161.1 	Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is 
161.2 	amended to read:
161.3 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
161.4 	 A district's referendum equalization levy equals the sum of the first tier referendum 
161.5 	equalization levy, the second tier referendum equalization levy, and the third tier 
161.6 	referendum equalization levy.
161.7 	(b) A district's first tier referendum equalization levy equals the district's first tier 
161.8 	referendum equalization revenue times the lesser of one or the ratio of the district's 
161.9 	referendum market value per resident pupil unit to $880,000.
161.10 	(c) A district's second tier referendum equalization levy equals the district's second 
161.11 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
161.12 	referendum market value per resident pupil unit to $510,000.
161.13 	(d) A district's third tier referendum equalization levy equals the district's third 
161.14 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
161.15 	referendum market value per resident pupil unit to $290,000.

161.16 	Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, 
161.17 	is amended to read:
161.18 		Subd. 7b.Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum 
161.19 	of a district's referendum equalization aid and location equity aid under section 126C.10, 
161.20 	subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum 
161.21 	equalization aid the district would have received for fiscal year 2015 under Minnesota 
161.22 	Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have 
161.23 	received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs 
161.24 	(a), (b), and (c).
161.25 	(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and 
161.26 	location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, 
161.27 	for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must 
161.28 	not be less than the product of (1) the district's referendum equalization aid for fiscal year 
161.29 	2015, times (2) the lesser of one or the ratio of the district's referendum revenue for that 
161.30 	school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser 
161.31 	of one or the ratio of the district's referendum market value used for fiscal year 2015 
161.32 	referendum equalization calculations to the district's referendum market value used for 
161.33 	that year's referendum equalization calculations.

161.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
161.35 	and later.

162.1 	Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is 
162.2 	amended to read:
162.3 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
162.4 	subdivision 1, may be increased in the amount approved by the voters of the district 
162.5 	at a referendum called for the purpose. The referendum may be called by the board. 
162.6 	The referendum must be conducted one or two calendar years before the increased levy 
162.7 	authority, if approved, first becomes payable. Only one election to approve an increase 
162.8 	may be held in a calendar year. Unless the referendum is conducted by mail under 
162.9 	subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 
162.10 	first Monday in November. The ballot must state the maximum amount of the increased 
162.11 	revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, 
162.12 	of increased revenue per adjusted pupil unit that differs from year to year over the number 
162.13 	of years for which the increased revenue is authorized or may state that the amount shall 
162.14 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
162.15 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
162.16 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
162.17 	compare the proposed levy authority to the existing expiring levy authority, and express 
162.18 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
162.19 	The ballot must designate the specific number of years, not to exceed ten, for which the 
162.20 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
162.21 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
162.22 	"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may 
162.23 	be modified to read, in cases of renewing existing levies at the same amount per pupil 
162.24 	as in the previous year:
162.25 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
162.26 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
162.27 	SCHEDULED TO EXPIRE."
162.28 	The ballot may contain a textual portion with the information required in this 
162.29 	subdivision and a question stating substantially the following:
162.30 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
162.31 	School District No. .., be approved?"
162.32 	If approved, an amount equal to the approved revenue per adjusted pupil unit times 
162.33 	the adjusted pupil units for the school year beginning in the year after the levy is certified 
162.34 	shall be authorized for certification for the number of years approved, if applicable, or 
162.35 	until revoked or reduced by the voters of the district at a subsequent referendum.
163.1 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
163.2 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
163.3 	and the proposed revenue increase. The board need not mail more than one notice to any 
163.4 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
163.5 	those shown to be owners on the records of the county auditor or, in any county where 
163.6 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
163.7 	Every property owner whose name does not appear on the records of the county auditor 
163.8 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
163.9 	has requested in writing that the county auditor or county treasurer, as the case may be, 
163.10 	include the name on the records for this purpose. The notice must project the anticipated 
163.11 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
163.12 	homesteads, apartments, and commercial-industrial property within the school district.
163.13 	The notice for a referendum may state that an existing referendum levy is expiring 
163.14 	and project the anticipated amount of increase over the existing referendum levy in 
163.15 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
163.16 	homesteads, apartments, and commercial-industrial property within the district.
163.17 	The notice must include the following statement: "Passage of this referendum will 
163.18 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
163.19 	the notice may include the following statement: "Passage of this referendum extends an 
163.20 	existing operating referendum at the same amount per pupil as in the previous year."
163.21 	(c) A referendum on the question of revoking or reducing the increased revenue 
163.22 	amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 
163.23 	revoke or reduce the revenue amount must state the amount per resident marginal cost
163.24 	 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved 
163.25 	by the voters of the district pursuant to paragraph (a) must be available to the school 
163.26 	district at least once before it is subject to a referendum on its revocation or reduction for 
163.27 	subsequent years. Only one revocation or reduction referendum may be held to revoke or 
163.28 	reduce referendum revenue for any specific year and for years thereafter.
163.29 	(d) The approval of 50 percent plus one of those voting on the question is required to 
163.30 	pass a referendum authorized by this subdivision.
163.31 	(e) At least 15 days before the day of the referendum, the district must submit a 
163.32 	copy of the notice required under paragraph (b) to the commissioner and to the county 
163.33 	auditor of each county in which the district is located. Within 15 days after the results 
163.34 	of the referendum have been certified by the board, or in the case of a recount, the 
163.35 	certification of the results of the recount by the canvassing board, the district must notify 
163.36 	the commissioner of the results of the referendum.

164.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
164.2 	and later.

164.3 	Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, 
164.4 	is amended to read:
164.5 		Subd. 9a.Board-approved referendum allowance. Notwithstanding subdivision 
164.6 	9, a school district may convert up to $300 per adjusted pupil unit of referendum authority 
164.7 	from voter approved to board approved by a board vote. A district with less than $300 per 
164.8 	adjusted pupil unit of referendum authority after the local optional revenue subtraction 
164.9 	under subdivision 1 may authorize new referendum authority up to the difference between 
164.10 	$300 per adjusted pupil unit and the district's referendum authority. The board may 
164.11 	authorize this levy for up to five years and may subsequently reauthorize that authority 
164.12 	in increments of up to five years.

164.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
164.14 	and later.

164.15 	Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
164.16 	126C.44 SAFE SCHOOLS LEVY.
164.17 	(a) Each district may make a levy on all taxable property located within the district 
164.18 	for the purposes specified in this section. The maximum amount which may be levied for 
164.19 	all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil 
164.20 	units for the school year. The proceeds of the levy must be reserved and used for directly 
164.21 	funding the following purposes or for reimbursing the cities and counties who contract 
164.22 	with the district for the following purposes:
164.23 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
164.24 	peace officers and sheriffs for liaison in services in the district's schools;
164.25 	(2) to pay the costs for a drug abuse prevention program as defined in section 
164.26 	609.101, subdivision 3, paragraph (e), in the elementary schools;
164.27 	(3) to pay the costs for a gang resistance education training curriculum in the 
164.28 	district's schools;
164.29 	(4) to pay the costs for security in the district's schools and on school property;
164.30 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
164.31 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
164.32 	the school district;
165.1 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed 
165.2 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
165.3 	dependency counselors to help provide early responses to problems;
165.4 	(7) to pay for facility security enhancements including laminated glass, public 
165.5 	announcement systems, emergency communications devices, and equipment and facility 
165.6 	modifications related to violence prevention and facility security;
165.7 	(8) to pay for costs associated with improving the school climate; or
165.8 	(9) to pay costs for colocating and collaborating with mental health professionals 
165.9 	who are not district employees or contractors.
165.10 	(b) For expenditures under paragraph (a), clause (1), the district must initially 
165.11 	attempt to contract for services to be provided by peace officers or sheriffs with the 
165.12 	police department of each city or the sheriff's department of the county within the district 
165.13 	containing the school receiving the services. If a local police department or a county 
165.14 	sheriff's department does not wish to provide the necessary services, the district may 
165.15 	contract for these services with any other police or sheriff's department located entirely or 
165.16 	partially within the school district's boundaries.
165.17 	(c) A school district that is a member of an intermediate school district may 
165.18 	include in its authority under this section the costs associated with safe schools activities 
165.19 	authorized under paragraph (a) for intermediate school district programs. This authority 
165.20 	must not exceed $10 $15  times the adjusted marginal cost pupil units of the member 
165.21 	districts. This authority is in addition to any other authority authorized under this section. 
165.22 	Revenue raised under this paragraph must be transferred to the intermediate school district.

165.23 	EFFECTIVE DATE. This section is effective for taxes payable in 2015 and later.

165.24 	Sec. 21. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
165.25 		Subd. 2.Definitions. (a) "Other district receipts" means payments by county 
165.26 	treasurers pursuant to section 276.10, apportionments from the school endowment fund 
165.27 	pursuant to section 127A.33, apportionments by the county auditor pursuant to section 
165.28 	127A.34, subdivision 2, and payments to school districts by the commissioner of revenue 
165.29 	pursuant to chapter 298.
165.30 	(b) "Cumulative amount guaranteed" means the product of
165.31 	(1) the cumulative disbursement percentage shown in subdivision 3; times
165.32 	(2) the sum of
165.33 	(i) the current year aid payment percentage of the estimated aid and credit 
165.34 	entitlements paid according to subdivision 13; plus
165.35 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
166.1 	(iii) the other district receipts.
166.2 	(c) "Payment date" means the date on which state payments to districts are made 
166.3 	by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 
166.4 	or a weekday which is a legal holiday, the payment shall be made on the immediately 
166.5 	preceding business day. The commissioner may make payments on dates other than 
166.6 	those listed in subdivision 3, but only for portions of payments from any preceding 
166.7 	payment dates which could not be processed by the electronic funds transfer method due 
166.8 	to documented extenuating circumstances.
166.9 	(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 
166.10 	fiscal year 2011, and 60in fiscal years 2012 and later 90.

166.11 	Sec. 22. Minnesota Statutes 2012, section 127A.45, subdivision 3, is amended to read:
166.12 		Subd. 3.Payment dates and percentages. (a) The commissioner shall pay to a 
166.13 	district on the dates indicated an amount computed as follows: the cumulative amount 
166.14 	guaranteed minus the sum of (1) the district's other district receipts through the current 
166.15 	payment, and (2) the aid and credit payments through the immediately preceding payment. 
166.16 	For purposes of this computation, the payment dates and the cumulative disbursement 
166.17 	percentages are as follows:

166.18		Payment date
	Percentage
		
166.19	Payment 1
	July 15:
	5.5
		
166.20	Payment 2
	July 30:
	8.0
		
166.21	Payment 3
	August 15:
	17.5
		
166.22	Payment 4
	August 30:
	20.0
		
166.23	Payment 5
	September 15:
	22.5
		
166.24	Payment 6
	September 30:
	25.0
		
166.25	Payment 7
	October 15:
	27.0
		
166.26	Payment 8
	October 30:
	30.0
		
166.27	Payment 9
	November 15:
	32.5
		
166.28	Payment 10
	November 30:
	36.5
		
166.29	Payment 11
	December 15:
	42.0
		
166.30	Payment 12
	December 30:
	45.0
		
166.31	Payment 13
	January 15:
	50.0
		
166.32	Payment 14
	January 30:
	54.0
		
166.33	Payment 15
	February 15:
	58.0
		
166.34	Payment 16
	February 28:
	63.0
		
166.35	Payment 17
	March 15:
	68.0
		
166.36	Payment 18
	March 30:
	74.0
		
166.37	Payment 19
	April 15:
	78.0
		
166.38	Payment 20
	April 30:
	85.0
		
166.39	Payment 21
	May 15:
	90.0
		
167.1	Payment 22
	May 30:
	95.0
		
167.2	Payment 23
	June 20:
	100.0
		
167.3 	(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay 
167.4 	to a school district or charter school on the dates indicated an amount computed as follows:

167.5
167.6	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
167.7
167.8	Payment 4
	August 30: 30 percent of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
167.9167.10
	Payment 6
	September 30: 40 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
167.11
167.12	Payment 8
	October 30: 30 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
167.13 	(c) Notwithstanding paragraph (b), if the current year aid payment percentage 
167.14 	under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under 
167.15 	paragraph (a), the commissioner shall pay to a charter school on the dates indicated an 
167.16 	amount computed as follows:

167.17
167.18	Payment 1
	July 15: 75 percent of the final adjustment for the prior fiscal year for 
all aid entitlements
	
167.19
167.20	Payment 8
	October 30: 25 percent of the final adjustment for the prior fiscal year 
for all aid entitlements

167.21 	EFFECTIVE DATE. This section is effective July 1, 2015.

167.22 	Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is 
167.23 	amended to read:
167.24 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
167.25 	special education aid for districts must be adjusted for each pupil attending a nonresident 
167.26 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
167.27 	adjustments must be made according to this subdivision.
167.28 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
167.29 	education and services" means the difference between: (1) the actual cost of providing 
167.30 	special instruction and services, including special transportation and unreimbursed 
167.31 	building lease and debt service costs for facilities used primarily for special education, for 
167.32 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
167.33 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
167.34 	receives special instruction and services outside the regular classroom for more than 
167.35 	60 percent of the school day, the amount of general education revenue and referendum 
167.36 	equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable 
167.37 	to that pupil for the portion of time the pupil receives special instruction and services 
168.1 	outside of the regular classroom, excluding portions attributable to district and school 
168.2 	administration, district support services, operations and maintenance, capital expenditures, 
168.3 	and pupil transportation, minus (3) special education aid under section 125A.76 
168.4 	attributable to that pupil, that is received by the district providing special instruction and 
168.5 	services. For purposes of this paragraph, general education revenue and referendum 
168.6 	equalization aid attributable to a pupil must be calculated using the serving district's 
168.7 	average general education revenue and referendum equalization aid per adjusted pupil unit.
168.8 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
168.9 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
168.10 	special education and services.
168.11 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
168.12 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
168.13 	education and services provided to students at an intermediate district, cooperative, or 
168.14 	charter school where the percent of students eligible for special education services is at 
168.15 	least 70 percent of the charter school's total enrollment.
168.16 	(e) Special education aid paid to the district or cooperative providing special 
168.17 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
168.18 	must be increased by the amount of the reduction in the aid paid to the resident district 
168.19 	under paragraphs (c) and (d). If the resident district's special education aid is insufficient 
168.20 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
168.21 	due to the district.
168.22 	(f) An area learning center operated by a service cooperative, intermediate district, 
168.23 	education district, or a joint powers cooperative may elect through the action of the 
168.24 	constituent boards to charge the resident district tuition for pupils rather than to have the 
168.25 	general education revenue paid to a fiscal agent school district. Except as provided in 
168.26 	paragraph (e), the district of residence must pay tuition equal to at least 90 and no more 
168.27 	than 100 percent of the district average general education revenue per pupil unit minus 
168.28 	an amount equal to the product of the formula allowance according to section 126C.10, 
168.29 	subdivision 2, times .0466, calculated without compensatory revenue and transportation 
168.30 	sparsity revenue, times the number of pupil units for pupils attending the area learning 
168.31 	center.

168.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
168.33 	and later.

168.34 	Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
169.1 	Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND 
169.2 	SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
 169.3 		Subdivision 1.Establishment; requirements for participation. (a) A five-year
169.4 	 pilot project for the 2013-2014 through 2017-2018 school years is established to improve 
169.5 	student and school outcomes by allowing groups of school districts to work together to 
169.6 	provide innovative education programs and activities and share district resources. The 
169.7 	pilot project may last until June 30, 2018, or for up to five years, whichever is less, except 
169.8 	that innovation partnerships formed during the period of the pilot project may continue 
169.9 	past June 30, 2018, with the agreement of the partnership members.
169.10 	(b) To participate in this pilot project to improve student and school outcomes, a 
169.11 	group of two or more school districts must collaborate with school staff and receive formal 
169.12 	school board approval to form a partnership. The partnership must develop a plan to 
169.13 	provide challenging programmatic options for students, create professional development 
169.14 	opportunities for educators, increase student engagement and connection and challenging 
169.15 	learning opportunities for students, or demonstrate efficiencies in delivering financial and 
169.16 	other services. The plan must establish:
169.17 	(1) collaborative educational goals and objectives;
169.18 	(2) strategies and processes to implement those goals and objectives, including a 
169.19 	budget process with periodic expenditure reviews;
169.20 	(3) valid and reliable measures to evaluate progress in realizing the goals and 
169.21 	objectives;
169.22 	(4) an implementation timeline; and
169.23 	(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee 
169.24 	schedules, and legal considerations needed to fully implement the plan.
169.25 	A partnership may invite additional districts to join the partnership during the pilot 
169.26 	project term after notifying the commissioner.
169.27 	(c) A partnership of interested districts must apply by February 1, 2013, of any year
169.28 	 to the education commissioner in the form and manner the commissioner determines, 
169.29 	consistent with this section. The application must contain the formal approval adopted by 
169.30 	the school board in each district to participate in the plan.
169.31 	(d) Notwithstanding other law to the contrary, a participating school district under 
169.32 	this section continues to: receive revenue and maintain its taxation authority; be organized 
169.33 	and governed by an elected school board with general powers under Minnesota Statutes, 
169.34 	section 123B.02; and be subject to employment agreements under Minnesota Statutes, 
169.35 	chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue 
169.36 	to remain employees of the employing school district.
170.1 		Subd. 2.Commissioner's role. Interested groups of school districts must submit 
170.2 	a completed application to the commissioner by March 1, 2013, of any year in the form 
170.3 	and manner determined by the commissioner. The education commissioner must convene 
170.4 	an advisory panel composed of a teacher appointed by Education Minnesota, a school 
170.5 	principal appointed by the Minnesota Association of Secondary School Principals, a 
170.6 	school board member appointed by the Minnesota School Boards Association, and a 
170.7 	school superintendent appointed by the Minnesota Association of School Administrators 
170.8 	to advise the commissioner on applicants' qualifications to participate in this pilot project. 
170.9 	The commissioner must select between three and may select up to six qualified applicants 
170.10 	under subdivision 1 by April 1, 2013, of any year to participate in this pilot project, 
170.11 	ensuring an equitable geographical distribution of project participants to the extent 
170.12 	practicable. The commissioner must select only those applicants that fully comply with 
170.13 	the requirements in subdivision 1. The commissioner must terminate a project participant 
170.14 	that fails to effectively implement the goals and objectives contained in its application and 
170.15 	according to its stated timeline.
170.16 		Subd. 3.Pilot project evaluation. Participating school districts must submit pilot 
170.17 	project data to the commissioner in the form and manner determined by the commissioner. 
170.18 	The education commissioner must analyze participating districts' progress in realizing 
170.19 	their educational goals and objectives to work together in providing innovative education 
170.20 	programs and activities and sharing resources. The commissioner must include the 
170.21 	analysis of best practices in a report to the legislative committees with jurisdiction over 
170.22 	kindergarten through grade 12 education finance and policy on the efficacy of this pilot 
170.23 	project. The commissioner may shall submit an interim project report at any time by 
170.24 	February 1, 2016, and must submit a final report to the legislature by February 1, 2018
170.25 	 2019, recommending whether or not to continue or expand the pilot project.

170.26 	Sec. 25. Laws 2012, chapter 263, section 1, the effective date, is amended to read:

170.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
170.28 	and applies to the 2013-2014 through 2017-2018 school years.

170.29 	Sec. 26. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
170.30 		Subd. 2.General education aid. For general education aid under Minnesota 
170.31 	Statutes, section 126C.13, subdivision 4:

171.1
171.2		$
	6,051,766,000
6,851,972,000
	.....
	2014
	
171.3
171.4		$
	6,370,640,000
6,495,698,000
	.....
	2015
	
171.5 	The 2014 appropriation includes $781,842,000 $780,709,000 for 2013 and 
171.6 	$5,269,924,000 $6,071,263,000 for 2014.
171.7 	The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and 
171.8 	$5,547,600,000 $5,906,601,000 for 2015.

171.9 	Sec. 27. APPROPRIATIONS.
 171.10 		Subdivision 1.Department of Education. The sums indicated in this section are 
171.11 	appropriated from the general fund to the Department of Education for the fiscal years 
171.12 	designated.
171.13 		Subd. 2.Recovery program grants. For recovery program grants under Minnesota 
171.14 	Statutes, section 124D.695:

171.15		$
	500,000
	.....
	2015

171.16 	Sec. 28. REVISOR'S INSTRUCTION.
 171.17 	In Minnesota Statutes, the revisor of statutes shall change the term "location equity" 
171.18 	to "local optional."

171.19 	ARTICLE 18
171.20 	EDUCATION EXCELLENCE

171.21 	Section 1. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to 
171.22 	read:
171.23 		Subd. 13.Immediate discharge. (a) Except as otherwise provided in paragraph 
171.24 	(b), a board may discharge a continuing-contract teacher, effective immediately, upon any 
171.25 	of the following grounds:
171.26 	(1) immoral conduct, insubordination, or conviction of a felony;
171.27 	(2) conduct unbecoming a teacher which requires the immediate removal of the 
171.28 	teacher from classroom or other duties;
171.29 	(3) failure without justifiable cause to teach without first securing the written release 
171.30 	of the school board;
171.31 	(4) gross inefficiency which the teacher has failed to correct after reasonable written 
171.32 	notice;
172.1 	(5) willful neglect of duty; or
172.2 	(6) continuing physical or mental disability subsequent to a 12 months leave of 
172.3 	absence and inability to qualify for reinstatement in accordance with subdivision 12.
172.4 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
172.5 	discriminatory practice described in section 363A.13.
172.6 	Prior to discharging a teacher under this paragraph, the board must notify the teacher 
172.7 	in writing and state its ground for the proposed discharge in reasonable detail. Within 
172.8 	ten days after receipt of this notification the teacher may make a written request for a 
172.9 	hearing before the board and it shall be granted before final action is taken. The board 
172.10 	may suspend a teacher with pay pending the conclusion of the hearing and determination 
172.11 	of the issues raised in the hearing after charges have been filed which constitute ground for 
172.12 	discharge. If a teacher has been charged with a felony and the underlying conduct that 
172.13 	is the subject of the felony charge is a ground for a proposed immediate discharge, the 
172.14 	suspension pending the conclusion of the hearing and determination of the issues may be 
172.15 	without pay. If a hearing under this paragraph is held, the board must reimburse the teacher 
172.16 	for any salary or compensation withheld if the final decision of the board or the arbitrator 
172.17 	does not result in a penalty to or suspension, termination, or discharge of the teacher.
172.18 	(b) A board must discharge a continuing-contract teacher, effective immediately, 
172.19 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
172.20 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
172.21 	(c) When a teacher is discharged under paragraph (b) or when the commissioner 
172.22 	makes a final determination of child maltreatment involving a teacher under section 
172.23 	626.556, subdivision 11, the school principal or other person having administrative 
172.24 	control of the school must include in the teacher's employment record the information 
172.25 	contained in the record of the disciplinary action or the final maltreatment determination, 
172.26 	consistent with the definition of public data under section 13.41, subdivision 5, and must 
172.27 	provide the Board of Teaching and the licensing division at the department with the 
172.28 	necessary and relevant information to enable the Board of Teaching and the department's 
172.29 	licensing division to fulfill their statutory and administrative duties related to issuing, 
172.30 	renewing, suspending, or revoking a teacher's license. Information received by the Board 
172.31 	of Teaching or the licensing division at the department under this paragraph is governed 
172.32 	by section 13.41 or other applicable law governing data of the receiving entity. In addition 
172.33 	to the background check required under section 123B.03, a school board or other school 
172.34 	hiring authority must contact the Board of Teaching and the department to determine 
172.35 	whether the teacher's license has been suspended or revoked, consistent with the discharge 
172.36 	and final maltreatment determinations identified in this paragraph.

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

173.2 	Sec. 2. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
173.3 		Subd. 6.Grounds for discharge or demotion. (a) Except as otherwise provided 
173.4 	in paragraph (b), causes for the discharge or demotion of a teacher either during or after 
173.5 	the probationary period must be:
173.6 	(1) immoral character, conduct unbecoming a teacher, or insubordination;
173.7 	(2) failure without justifiable cause to teach without first securing the written release 
173.8 	of the school board having the care, management, or control of the school in which the 
173.9 	teacher is employed;
173.10 	(3) inefficiency in teaching or in the management of a school, consistent with 
173.11 	subdivision 5, paragraph (b);
173.12 	(4) affliction with active tuberculosis or other communicable disease must be 
173.13 	considered as cause for removal or suspension while the teacher is suffering from such 
173.14 	disability; or
173.15 	(5) discontinuance of position or lack of pupils.
173.16 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
173.17 	discriminatory practice described in section 363A.13.
173.18 	(b) A probationary or continuing-contract teacher must be discharged immediately 
173.19 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
173.20 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
173.21 	(c) When a teacher is discharged under paragraph (b) or when the commissioner 
173.22 	makes a final determination of child maltreatment involving a teacher under section 
173.23 	626.556, subdivision 11, the school principal or other person having administrative 
173.24 	control of the school must include in the teacher's employment record the information 
173.25 	contained in the record of the disciplinary action or the final maltreatment determination, 
173.26 	consistent with the definition of public data under section 13.41, subdivision 5, and must 
173.27 	provide the Board of Teaching and the licensing division at the department with the 
173.28 	necessary and relevant information to enable the Board of Teaching and the department's 
173.29 	licensing division to fulfill their statutory and administrative duties related to issuing, 
173.30 	renewing, suspending, or revoking a teacher's license. Information received by the Board 
173.31 	of Teaching or the licensing division at the department under this paragraph is governed 
173.32 	by section 13.41 or other applicable law governing data of the receiving entity. In addition 
173.33 	to the background check required under section 123B.03, a school board or other school 
173.34 	hiring authority must contact the Board of Teaching and the department to determine 
174.1 	whether the teacher's license has been suspended or revoked, consistent with the discharge 
174.2 	and final maltreatment determinations identified in this paragraph.

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

174.4 	Sec. 3. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
174.5 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
174.6 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
174.7 	application approved by the commissioner is eligible for alternative teacher compensation 
174.8 	revenue.
174.9 	(b) For school district and intermediate school district applications, the commissioner 
174.10 	must consider only those applications to participate that are submitted jointly by a 
174.11 	district and the exclusive representative of the teachers. The application must contain an 
174.12 	alternative teacher professional pay system agreement that:
174.13 	(1) implements an alternative teacher professional pay system consistent with 
174.14 	section 122A.414; and
174.15 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
174.16 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
174.17 	district may enter into a contract for a term of two or four years.
174.18 	Alternative teacher compensation revenue for a qualifying school district or site in 
174.19 	which the school board and the exclusive representative of the teachers agree to place 
174.20 	teachers in the district or at the site on the alternative teacher professional pay system 
174.21 	equals $260 times the number of pupils enrolled at the district or site on October 1 of 
174.22 	the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
174.23 	intermediate school district must be calculated under section 126C.10, subdivision 34
174.24 	 subdivision 4, paragraphs (a) and (b).
174.25 	(c) For a newly combined or consolidated district, the revenue shall be computed 
174.26 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
174.27 	into the combination or consolidation. The commissioner may adjust the revenue computed 
174.28 	for a site using prior year data to reflect changes attributable to school closings, school 
174.29 	openings, or grade level reconfigurations between the prior year and the current year.
174.30 	(d) The revenue is available only to school districts, intermediate school districts, 
174.31 	school sites, and charter schools that fully implement an alternative teacher professional 
174.32 	pay system by October 1 of the current school year.

174.33 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
174.34 	and later.

175.1 	Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is 
175.2 	amended to read:
175.3 		Subdivision 1.Initial achievement and integration revenue. (a) An eligible 
175.4 	district's initial achievement and integration revenue equals the lesser of 100.3 percent of 
175.5 	the district's expenditures under the budget approved by the commissioner under section 
175.6 	124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive 
175.7 	revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil 
175.8 	units for that year times the ratio of the district's enrollment of protected students for the 
175.9 	previous school year to total enrollment for the previous school year and (2) the greater of 
175.10 	zero or 66 percent of the difference between the district's integration revenue for fiscal 
175.11 	year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
175.12 	(b) In each year, 0.3 percent of each district's initial achievement and integration 
175.13 	revenue is transferred to the department for the oversight and accountability activities 
175.14 	required under this section and section 124D.861.

175.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
175.16 	and applies to revenue for fiscal year 2014 and later.

175.17 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is 
175.18 	amended to read:
175.19 		Subd. 2.Incentive revenue. An eligible school district's maximum incentive 
175.20 	revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 
175.21 	be A district's incentive revenue equals the lesser of the maximum incentive revenue 
175.22 	or the district's expenditures for implementing a voluntary plan to reduce racial and 
175.23 	economic enrollment disparities through intradistrict and interdistrict activities that have 
175.24 	been approved as a part of the district's achievement and integration plan under the budget 
175.25 	approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).

175.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
175.27 	and applies to revenue for fiscal year 2014 and later.

175.28 	Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 11, is amended to read:
175.29 		Subd. 11.Concurrent enrollment program. For concurrent enrollment programs 
175.30 	under Minnesota Statutes, section 124D.091:

175.31		$
	2,000,000
	.....
	2014
	
175.32
175.33		$
	2,000,000
3,897,000
	.....
	2015
	
176.1 	If the appropriation is insufficient, the commissioner must proportionately reduce 
176.2 	the aid payment to each district.
176.3 	Any balance in the first year does not cancel but is available in the second year. The 
176.4 	annual base budget for this program is $2,000,000 for fiscal years 2016 and 2017.

176.5 	Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
176.6 		Subd. 15.Early childhood literacy programs. For early childhood literacy 
176.7 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

176.8		$
	4,125,000
	.....
	2014
	
176.9176.10
		$
	4,125,000
 4,625,000
	.....
	2015
	
176.11 	Up to $4,125,000 eachin the first year and $4,625,000 in the second year is for 
176.12 	leveraging federal and private funding to support AmeriCorps members serving in the 
176.13 	Minnesota Reading Corps program established by ServeMinnesota, including costs 
176.14 	associated with the training and teaching of early literacy skills to children age three 
176.15 	to grade 3 and the evaluation of the impact of the program under Minnesota Statutes, 
176.16 	sections 124D.38, subdivision 2, and 124D.42, subdivision 6. Up to $500,000 in fiscal 
176.17 	year 2015 must be used to support priority and focus schools as defined by the Department 
176.18 	of Education and to expand kindergarten programming.
176.19 	Any balance in the first year does not cancel but is available in the second year.

176.20 	Sec. 8. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER 
176.21 	PROFESSIONAL PAY SYSTEM AND TEACHER DEVELOPMENT AND 
176.22 	EVALUATION PROGRAM.
 176.23 	To better align Minnesota's alternative teacher professional pay system under 
176.24 	Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher development 
176.25 	and evaluation program under Minnesota Statutes, sections 122A.40, subdivision 8, and 
176.26 	122A.41, subdivision 5, and effect and fund an improved alignment of this system and 
176.27 	program, the commissioner of education must consult with stakeholders, including, but 
176.28 	not limited to, representatives of the Minnesota Association of School Administrators, 
176.29 	the Minnesota Association of Secondary School Principals, the Minnesota Elementary 
176.30 	School Principals' Association, Education Minnesota, Schools for Equity in Education, the 
176.31 	Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota 
176.32 	School Boards Association, the Department of Education, the College of Education 
176.33 	and Human Development at the University of Minnesota, the Minnesota Association 
176.34 	of the Colleges for Teacher Education, licensed elementary and secondary school 
177.1 	teachers employed in school districts with an alternative teacher professional pay system 
177.2 	agreement and licensed elementary and secondary school teachers employed in school 
177.3 	districts without an alternative teacher professional pay system agreement, where one or 
177.4 	more of these teachers may be a master teacher, peer evaluator, in another teacher leader 
177.5 	position, or national board certified teacher, a teacher or school administrator employed in 
177.6 	a Minnesota charter school with an alternative teacher professional pay system agreement 
177.7 	and a teacher or school administrator employed in a Minnesota charter school without an 
177.8 	alternative teacher professional pay system agreement, a parent or guardian of a student 
177.9 	currently enrolled in a Minnesota public school, the Association of Metropolitan School 
177.10 	Districts, and the Minnesota Rural Education Association. The commissioner also must 
177.11 	consult with members of the house of representatives and members of the senate.
177.12 	The commissioner, by February 1, 2015, must submit to the education policy and 
177.13 	finance committees of the legislature written recommendations on better aligning and 
177.14 	financing the alternative teacher professional pay system and teacher development and 
177.15 	evaluation program.

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

177.17 	Sec. 9. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
 177.18 	(a) The commissioner of education must consult with experts knowledgeable about 
177.19 	secondary and postsecondary career and technical education programs to determine the 
177.20 	content and status of particular career and technical education programs in Minnesota 
177.21 	school districts, including cooperating districts under Minnesota Statutes, 123A.33, 
177.22 	subdivision 2, integration districts, and postsecondary institutions partnering with school 
177.23 	districts or offering courses through PSEO or career and technical programs and the rates 
177.24 	of student participation and completion for these various programs, including: agriculture, 
177.25 	food, and natural resources; architecture and construction; arts, audiovisual technology, 
177.26 	and communications; business management and administration; computer science; family 
177.27 	and consumer science; finance; health science; hospitality and tourism; human services; 
177.28 	information technology; manufacturing; marketing; science, technology, engineering, and 
177.29 	mathematics; and transportation, distribution, and logistics.
177.30 	(b) To accomplish paragraph (a) and to understand the current role of local school 
177.31 	districts and postsecondary institutions in providing career and technical education 
177.32 	programs, the commissioner of education, in consultation with experts, also must examine 
177.33 	the extent to which secondary and postsecondary education programs offer students a 
177.34 	progression of coordinated, nonduplicative courses that adequately prepare students to 
177.35 	successfully complete a career and technical education program.
178.1 	(c) The commissioner of education must submit a report by February 1, 2015, 
178.2 	to the education policy and finance committees of the legislature, consistent with this 
178.3 	section, and include information about each district's dedicated equipment, resources, and 
178.4 	relationships with postsecondary institutions and the local business community.

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

178.6 	Sec. 10. APPROPRIATIONS.
 178.7 		Subdivision 1.Department of Education. The sums indicated in this section are 
178.8 	appropriated from the general fund to the Department of Education for the fiscal years 
178.9 	designated.
178.10 		Subd. 2.Career and technical program inventory. For the career and technical 
178.11 	program inventory program under section 9:

178.12		$
	150,000
	.....
	2015
	
178.13 	This is a onetime appropriation.
178.14 		Subd. 3.Teacher Professional Pay System and Teacher Evaluation Program 
178.15 	alignment. For the alignment and reporting activities under section 8:

178.16		$
	25,000
	.....
	2015

178.17 	ARTICLE 19
178.18 	SPECIAL EDUCATION

178.19 	Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
178.20 	125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
178.21 		Subdivision 1.Restrictive procedures plan. (a) Schools that intend to use 
178.22 	restrictive procedures shall maintain and make publicly accessible in an electronic format 
178.23 	on a school or district Web site or make a paper copy available upon request describing a 
178.24 	restrictive procedures plan for children with disabilities that at least:
178.25 	(1) lists the restrictive procedures the school intends to use;
178.26 	(2) describes how the school will implement a range of positive behavior strategies 
178.27 	and provide links to mental health services;
178.28 	(3) describes how the school will provide training on de-escalation techniques, 
178.29 	consistent with section 122A.09, subdivision 4, paragraph (k);
178.30 	(4) describes how the school will monitor and review the use of restrictive 
178.31 	procedures, including:
179.1 	(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a), 
179.2 	clause (5); and
179.3 	(ii) convening an oversight committee to undertake a quarterly review of the use 
179.4 	of restrictive procedures based on patterns or problems indicated by similarities in the 
179.5 	time of day, day of the week, duration of the use of a procedure, the individuals involved, 
179.6 	or other factors associated with the use of restrictive procedures; the number of times a 
179.7 	restrictive procedure is used schoolwide and for individual children; the number and types 
179.8 	of injuries, if any, resulting from the use of restrictive procedures; whether restrictive 
179.9 	procedures are used in nonemergency situations; the need for additional staff training; and 
179.10 	proposed actions to minimize the use of restrictive procedures; and
179.11 	(4) (5) includes a written description and documentation of the training staff 
179.12 	completed under subdivision 5.
179.13 	(b) Schools annually must publicly identify oversight committee members who 
179.14 	must at least include:
179.15 	(1) a mental health professional, school psychologist, or school social worker;
179.16 	(2) an expert in positive behavior strategies;
179.17 	(3) a special education administrator; and
179.18 	(4) a general education administrator.
179.19 		Subd. 2.Restrictive procedures. (a) Restrictive procedures may be used only 
179.20 	by a licensed special education teacher, school social worker, school psychologist, 
179.21 	behavior analyst certified by the National Behavior Analyst Certification Board, a person 
179.22 	with a master's degree in behavior analysis, other licensed education professional, 
179.23 	paraprofessional under section 120B.363, or mental health professional under section 
179.24 	245.4871, subdivision 27, who has completed the training program under subdivision 5.
179.25 	(b) A school shall make reasonable efforts to notify the parent on the same day a 
179.26 	restrictive procedure is used on the child, or if the school is unable to provide same-day 
179.27 	notice, notice is sent within two days by written or electronic means or as otherwise 
179.28 	indicated by the child's parent under paragraph (d) (f).
179.29 	(c) The district must hold a meeting of the individualized education program team, 
179.30 	conduct or review a functional behavioral analysis, review data, consider developing 
179.31 	additional or revised positive behavioral interventions and supports, consider actions to 
179.32 	reduce the use of restrictive procedures, and modify the individualized education program 
179.33 	or behavior intervention plan as appropriate. The district must hold the meeting: within 
179.34 	ten calendar days after district staff use restrictive procedures on two separate school 
179.35 	days within 30 calendar days or a pattern of use emerges and the child's individualized 
179.36 	education program or behavior intervention plan does not provide for using restrictive 
180.1 	procedures in an emergency; or at the request of a parent or the district after restrictive 
180.2 	procedures are used. The district must review use of restrictive procedures at a child's 
180.3 	annual individualized education program meeting when the child's individualized 
180.4 	education program provides for using restrictive procedures in an emergency.
180.5 	(d) If the individualized education program team under paragraph (c) determines 
180.6 	that existing interventions and supports are ineffective in reducing the use of restrictive 
180.7 	procedures or the district uses restrictive procedures on a child on ten or more school days 
180.8 	during the same school year, the team, as appropriate, either must consult with other 
180.9 	professionals working with the child; consult with experts in behavior analysis, mental 
180.10 	health, communication, or autism; consult with culturally competent professionals; 
180.11 	review existing evaluations, resources, and successful strategies; or consider whether to 
180.12 	reevaluate the child.
180.13 	(e) At the individualized education program meeting under paragraph (c), the team 
180.14 	must review any known medical or psychological limitations, including any medical 
180.15 	information the parent provides voluntarily, that contraindicate the use of a restrictive 
180.16 	procedure, consider whether to prohibit that restrictive procedure, and document any 
180.17 	prohibition in the individualized education program or behavior intervention plan.
180.18 	(f) An individualized education program team may plan for using restrictive 
180.19 	procedures and may include these procedures in a child's individualized education 
180.20 	program or behavior intervention plan; however, the restrictive procedures may be used 
180.21 	only in response to behavior that constitutes an emergency, consistent with this section. 
180.22 	The individualized education program or behavior intervention plan shall indicate how the 
180.23 	parent wants to be notified when a restrictive procedure is used.
180.24 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
180.25 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
180.26 	following requirements:
180.27 	(1) physical holding or seclusion is the least intrusive intervention that effectively 
180.28 	responds to the emergency;
180.29 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
180.30 	(3) physical holding or seclusion ends when the threat of harm ends and the staff 
180.31 	determines the child can safely return to the classroom or activity;
180.32 	(4) staff directly observes the child while physical holding or seclusion is being used;
180.33 	(5) each time physical holding or seclusion is used, the staff person who implements 
180.34 	or oversees the physical holding or seclusion documents, as soon as possible after the 
180.35 	incident concludes, the following information:
180.36 	(i) a description of the incident that led to the physical holding or seclusion;
181.1 	(ii) why a less restrictive measure failed or was determined by staff to be 
181.2 	inappropriate or impractical;
181.3 	(iii) the time the physical holding or seclusion began and the time the child was 
181.4 	released; and
181.5 	(iv) a brief record of the child's behavioral and physical status;
181.6 	(6) the room used for seclusion must:
181.7 	(i) be at least six feet by five feet;
181.8 	(ii) be well lit, well ventilated, adequately heated, and clean;
181.9 	(iii) have a window that allows staff to directly observe a child in seclusion;
181.10 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
181.11 	door, and secure ceilings;
181.12 	(v) have doors that open out and are unlocked, locked with keyless locks that 
181.13 	have immediate release mechanisms, or locked with locks that have immediate release 
181.14 	mechanisms connected with a fire and emergency system; and
181.15 	(vi) not contain objects that a child may use to injure the child or others;
181.16 	(7) before using a room for seclusion, a school must:
181.17 	(i) receive written notice from local authorities that the room and the locking 
181.18 	mechanisms comply with applicable building, fire, and safety codes; and
181.19 	(ii) register the room with the commissioner, who may view that room; and
181.20 	(8) until August 1, 2015, a school district may use prone restraints with children 
181.21 	age five or older if:
181.22 	(i) the district has provided to the department a list of staff who have had specific 
181.23 	training on the use of prone restraints;
181.24 	(ii) the district provides information on the type of training that was provided and 
181.25 	by whom;
181.26 	(iii) only staff who received specific training use prone restraints;
181.27 	(iv) each incident of the use of prone restraints is reported to the department within 
181.28 	five working days on a form provided by the department; and
181.29 	(v) the district, before using prone restraints, must review any known medical or 
181.30 	psychological limitations that contraindicate the use of prone restraints.
181.31 	The department must collect data on districts' use of prone restraints and publish the data 
181.32 	in a readily accessible format on the department's Web site on a quarterly basis.
181.33 	(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must 
181.34 	recommend to the commissioner specific and measurable implementation and outcome 
181.35 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
181.36 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
182.1 	that recommends how to further reduce these procedures and eliminate the use of prone 
182.2 	restraints. The statewide plan includes the following components: measurable goals; the 
182.3 	resources, training, technical assistance, mental health services, and collaborative efforts 
182.4 	needed to significantly reduce districts' use of prone restraints; and recommendations 
182.5 	to clarify and improve the law governing districts' use of restrictive procedures. The 
182.6 	commissioner must consult with interested stakeholders when preparing the report, 
182.7 	including representatives of advocacy organizations, special education directors, teachers, 
182.8 	paraprofessionals, intermediate school districts, school boards, day treatment providers, 
182.9 	county social services, state human services department staff, mental health professionals, 
182.10 	and autism experts. By June 30 each year, districts must report summary data on their 
182.11 	use of restrictive procedures to the department, in a form and manner determined by the 
182.12 	commissioner. The summary data must include information about the use of restrictive 
182.13 	procedures, including use of reasonable force under section 121A.582.
182.14 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
182.15 	(1) engaging in conduct prohibited under section 121A.58;
182.16 	(2) requiring a child to assume and maintain a specified physical position, activity, 
182.17 	or posture that induces physical pain;
182.18 	(3) totally or partially restricting a child's senses as punishment;
182.19 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
182.20 	substance, or spray as punishment;
182.21 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
182.22 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
182.23 	except when temporarily removing the equipment or device is needed to prevent injury 
182.24 	to the child or others or serious damage to the equipment or device, in which case the 
182.25 	equipment or device shall be returned to the child as soon as possible;
182.26 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
182.27 	physical abuse under section 626.556;
182.28 	(7) withholding regularly scheduled meals or water;
182.29 	(8) denying access to bathroom facilities; and
182.30 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
182.31 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
182.32 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
182.33 	straddling a child's torso.
182.34 		Subd. 5.Training for staff. (a) To meet the requirements of subdivision 1, staff 
182.35 	who use restrictive procedures, including paraprofessionals, shall complete training in 
182.36 	the following skills and knowledge areas:
183.1 	(1) positive behavioral interventions;
183.2 	(2) communicative intent of behaviors;
183.3 	(3) relationship building;
183.4 	(4) alternatives to restrictive procedures, including techniques to identify events and 
183.5 	environmental factors that may escalate behavior;
183.6 	(5) de-escalation methods;
183.7 	(6) standards for using restrictive procedures only in an emergency;
183.8 	(7) obtaining emergency medical assistance;
183.9 	(8) the physiological and psychological impact of physical holding and seclusion;
183.10 	(9) monitoring and responding to a child's physical signs of distress when physical 
183.11 	holding is being used;
183.12 	(10) recognizing the symptoms of and interventions that may cause positional 
183.13 	asphyxia when physical holding is used;
183.14 	(11) district policies and procedures for timely reporting and documenting each 
183.15 	incident involving use of a restricted procedure; and
183.16 	(12) schoolwide programs on positive behavior strategies.
183.17 	(b) The commissioner, after consulting with the commissioner of human services, 
183.18 	must develop and maintain a list of training programs that satisfy the requirements of 
183.19 	paragraph (a). The commissioner also must develop and maintain a list of experts to 
183.20 	help individualized education program teams reduce the use of restrictive procedures. 
183.21 	The district shall maintain records of staff who have been trained and the organization 
183.22 	or professional that conducted the training. The district may collaborate with children's 
183.23 	community mental health providers to coordinate trainings.
183.24 		Subd. 6.Behavior supports; reasonable force. (a) School districts are encouraged 
183.25 	to establish effective schoolwide systems of positive behavior interventions and supports.
183.26 	(b) Nothing in this section or section 125A.0941 precludes the use of reasonable 
183.27 	force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015 
183.28 	school year and later, districts must collect and submit to the commissioner summary 
183.29 	data, consistent with subdivision 3, paragraph (b), on district use of reasonable force 
183.30 	that is consistent with the definition of physical holding or seclusion for a child with a 
183.31 	disability under this section.

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

183.33 	Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is 
183.34 	amended to read:
184.1 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
184.2 	later, when a school district provides special instruction and services for a pupil with 
184.3 	a disability as defined in section 125A.02 outside the district of residence, excluding 
184.4 	a pupil for whom an adjustment to special education aid is calculated according to 
184.5 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
184.6 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
184.7 	special instruction and services to the pupil, including a proportionate amount for special 
184.8 	transportation and unreimbursed building lease and debt service costs for facilities used 
184.9 	primarily for special education, plus (2) the amount of general education revenue and 
184.10 	referendum equalization aid attributable to that pupil, calculated using the resident district's 
184.11 	average general education revenue and referendum equalization aid per adjusted pupil 
184.12 	unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 
184.13 	revenue, minus (3) the amount of special education aid for children with a disability 
184.14 	under section 125A.76 received on behalf of that child, minus (4) if the pupil receives 
184.15 	special instruction and services outside the regular classroom for more than 60 percent 
184.16 	of the school day, the amount of general education revenue and referendum equalization 
184.17 	aid, excluding portions attributable to district and school administration, district support 
184.18 	services, operations and maintenance, capital expenditures, and pupil transportation, 
184.19 	attributable to that pupil for the portion of time the pupil receives special instruction 
184.20 	and services outside of the regular classroom, calculated using the resident district's 
184.21 	average general education revenue and referendum equalization aid per adjusted pupil unit 
184.22 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
184.23 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
184.24 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
184.25 	served by a cooperative unit without a fiscal agent school district, the general education 
184.26 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
184.27 	the resident district's average general education revenue and referendum equalization aid 
184.28 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
184.29 	revenue. Special education aid paid to the district or cooperative providing special 
184.30 	instruction and services for the pupil must be increased by the amount of the reduction in 
184.31 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
184.32 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
184.33 	expenditures on the resident school district's books of account under sections 123B.75 
184.34 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
184.35 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
185.1 	(b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
185.2 	(b) to (d), a charter school where more than 30 percent of enrolled students receive special 
185.3 	education and related services, a site approved under section 125A.515, an intermediate 
185.4 	district, a special education cooperative, or a school district that served as the applicant 
185.5 	agency for a group of school districts for federal special education aids for fiscal year 
185.6 	2006 may apply to the commissioner for authority to charge the resident district an 
185.7 	additional amount to recover any remaining unreimbursed costs of serving pupils with 
185.8 	a disability. The application must include a description of the costs and the calculations 
185.9 	used to determine the unreimbursed portion to be charged to the resident district. Amounts 
185.10 	approved by the commissioner under this paragraph must be included in the tuition billings 
185.11 	or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs 
185.12 	(b) to (d), as applicable.
185.13 	(c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
185.14 	(d) and (e) paragraph (b), "general education revenue and referendum equalization aid" 
185.15 	means the sum of the general education revenue according to section 126C.10, subdivision 
185.16 	1, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph 
185.17 	(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.

185.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
185.19 	and later.

185.20 	Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is 
185.21 	amended to read:
185.22 		Subdivision 1.Definitions. (a) For the purposes of this section and section 125A.79, 
185.23 	the definitions in this subdivision apply.
185.24 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
185.25 	For the purposes of computing basic revenue pursuant to this section, each child with a 
185.26 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
185.27 	(c) "Essential personnel" means teachers, cultural liaisons, related services, and 
185.28 	support services staff providing services to students. Essential personnel may also include 
185.29 	special education paraprofessionals or clericals providing support to teachers and students 
185.30 	by preparing paperwork and making arrangements related to special education compliance 
185.31 	requirements, including parent meetings and individualized education programs. Essential 
185.32 	personnel does not include administrators and supervisors.
185.33 	(d) "Average daily membership" has the meaning given it in section 126C.05.
186.1 	(e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015, 
186.2 	1.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the 
186.3 	program growth factor for the previous year for fiscal year 2018 and later.
186.4 	(f) "Nonfederal special education expenditure" means all direct expenditures that 
186.5 	are necessary and essential to meet the district's obligation to provide special instruction 
186.6 	and services to children with a disability according to sections 124D.454, 125A.03 to 
186.7 	125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by 
186.8 	the department under section 125A.75, subdivision 4, excluding expenditures:
186.9 	(1) reimbursed with federal funds;
186.10 	(2) reimbursed with other state aids under this chapter;
186.11 	(3) for general education costs of serving students with a disability;
186.12 	(4) for facilities;
186.13 	(5) for pupil transportation; and
186.14 	(6) for postemployment benefits.
186.15 	(g) "Old formula special education expenditures" means expenditures eligible for 
186.16 	revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
186.17 	(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy 
186.18 	for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and 
186.19 	fringe benefits of one-to-one instructional and behavior management aides and one-to-one 
186.20 	licensed, certified professionals assigned to a child attending the academy, if the aides or 
186.21 	professionals are required by the child's individualized education program.
186.22 	(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 
186.23 	2014 and 2.27 percent for fiscal year 2015.
186.24 	(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 
186.25 	for fiscal year 2015.
186.26 	(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 
186.27 	for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education 
186.28 	aid increase limit for the previous fiscal year and $40.

186.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
186.30 	and later.

186.31 	Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
186.32 		Subd. 2.Special education initial aid. The special education initial aid equals the 
186.33 	sum of the following amounts computed using current year data:
187.1 	(1) 68 percent of the salary of each essential person employed in the district's program 
187.2 	for children with a disability during the fiscal year, whether the person is employed by one 
187.3 	or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
187.4 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
187.5 	for the Blind, 68 percent of the salary of each one to one one-to-one instructional and 
187.6 	behavior management aide and one-to-one licensed, certified professional assigned to 
187.7 	a child attending the academy, if the aides or professionals are required by the child's 
187.8 	individualized education program;
187.9 	(3) for special instruction and services provided to any pupil by contracting with 
187.10 	public, private, or voluntary agencies other than school districts, in place of special 
187.11 	instruction and services provided by the district, 52 percent of the difference between 
187.12 	the amount of the contract and the general education revenue, excluding basic skills 
187.13 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
187.14 	attributable to a pupil, calculated using the resident district's average general education 
187.15 	revenue and referendum equalization aid per adjusted pupil unit for the fraction of the 
187.16 	school day the pupil receives services under the contract. This includes children who 
187.17 	are residents of the state, receive services under this subdivision and subdivision 1, and 
187.18 	are placed in a care and treatment facility by court action in a state that does not have a 
187.19 	reciprocity agreement with the commissioner under section 125A.155 as provided for in 
187.20 	section 125A.79, subdivision 8;
187.21 	(4) for special instruction and services provided to any pupil by contracting for 
187.22 	services with public, private, or voluntary agencies other than school districts, that are 
187.23 	supplementary to a full educational program provided by the school district, 52 percent of 
187.24 	the amount of the contract for that pupil;
187.25 	(5) for supplies and equipment purchased or rented for use in the instruction of 
187.26 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
187.27 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
187.28 	not to exceed an average of $47 in any one school year for each child with a disability 
187.29 	receiving instruction;
187.30 	(6) for fiscal years 1997 and later, special education base revenue shall include 
187.31 	amounts under clauses (1) to (5) for special education summer programs provided during 
187.32 	the base year for that fiscal year;
187.33 	(7) the cost of providing transportation services for children with disabilities under 
187.34 	section 123B.92, subdivision 1, paragraph (b), clause (4); and
187.35 	(8) the district's transition-disabled program initial aid according to section 
187.36 	124D.454, subdivision 3.
188.1 	The department shall establish procedures through the uniform financial accounting 
188.2 	and reporting system to identify and track all revenues generated from third-party billings 
188.3 	as special education revenue at the school district level; include revenue generated from 
188.4 	third-party billings as special education revenue in the annual cross-subsidy report; and 
188.5 	exclude third-party revenue from calculation of excess cost aid to the districts.

188.6 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
188.7 	and later.

188.8 	Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is 
188.9 	amended to read:
188.10 		Subd. 2a.Special education initial aid. For fiscal year 2016 and later, a district's 
188.11 	special education initial aid equals the sum of:
188.12 	(1) the lesser least of 62 percent of the district's old formula special education 
188.13 	expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 
188.14 	percent of the district's nonfederal special education expenditures for the prior year, 
188.15 	excluding pupil transportation expenditures, or 56 percent of the product of the sum of the 
188.16 	following amounts, computed using prior fiscal year data, and the program growth factor:
188.17 	(i) the product of the district's average daily membership served and the sum of:
188.18 	(A) $450; plus
188.19 	(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
188.20 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
188.21 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
188.22 	(C) .008 times the district's average daily membership served; plus
188.23 	(ii) $10,400 times the December 1 child count for the primary disability areas of 
188.24 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
188.25 	(iii) $18,000 times the December 1 child count for the primary disability areas of 
188.26 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
188.27 	(iv) $27,000 times the December 1 child count for the primary disability areas of 
188.28 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
188.29 	physically impaired, visually impaired, and deafblind; plus
188.30 	(2) the cost of providing transportation services for children with disabilities under 
188.31 	section 123B.92, subdivision 1, paragraph (b), clause (4).

188.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
188.33 	and later.

189.1 	Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is 
189.2 	amended to read:
189.3 		Subd. 2b.Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 
189.4 	subsidy reduction aid for a school district, not including a charter school, equals the 
189.5 	lesser of (a) the product of the cross subsidy reduction aid limit and the district's average 
189.6 	daily membership served or (b) the sum of the product of the cross subsidy reduction aid 
189.7 	percentage, the district's average daily membership served, and the sum of:
189.8 	(1) $450; plus
189.9 	(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
189.10 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
189.11 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
189.12 	(3) .008 times the district's average daily membership served; plus the product of the 
189.13 	cross subsidy aid percentage and the sum of:
189.14 	(i) $10,100 times the December 1 child count for the primary disability areas of 
189.15 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
189.16 	(ii) $17,500 times the December 1 child count for the primary disability areas of 
189.17 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
189.18 	(iii) $26,000 times the December 1 child count for the primary disability areas of 
189.19 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
189.20 	physically impaired, visually impaired, and deafblind.

189.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
189.22 	and applies to revenue for fiscal year 2014 and later.

189.23 	Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is 
189.24 	amended to read:
189.25 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
189.26 	district's special education aid equals the sum of the district's special education initial aid 
189.27 	under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and 
189.28 	the district's excess cost aid under section 125A.79, subdivision 7.
189.29 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
189.30 	the district's special education initial aid under subdivision 2a and the district's excess cost 
189.31 	aid under section 125A.79, subdivision 5.
189.32 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
189.33 	a school district must not exceed the sum of the special education aid the district would 
189.34 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
189.35 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
190.1 	127A.47, subdivision 7, and the product of the district's average daily membership served 
190.2 	and the special education aid increase limit.
190.3 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
190.4 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
190.5 	daily membership served and the special education aid increase limit and (ii) the product 
190.6 	of the sum of the special education aid the district would have received for fiscal year 2016 
190.7 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
190.8 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
190.9 	the district's average daily membership served for the current fiscal year to the district's 
190.10 	average daily membership served for fiscal year 2016, and the program growth factor.
190.11 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 
190.12 	aid for a school district, not including a charter school, must not be less than the lesser of 
190.13 	(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 
190.14 	product of the sum of the special education aid the district would have received for fiscal 
190.15 	year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted 
190.16 	according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the 
190.17 	ratio of the district's adjusted daily membership for the current fiscal year to the district's 
190.18 	average daily membership for fiscal year 2016, and the program growth factor.

190.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
190.20 	and applies to revenue for fiscal year 2014 and later.

190.21 	Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is 
190.22 	amended to read:
190.23 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
190.24 	subdivision apply.
190.25 	(a) "Unreimbursed old formula special education expenditures" means:
190.26 	(1) old formula special education expenditures for the prior fiscal year; minus
190.27 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
190.28 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
190.29 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
190.30 	initial aid under section 125A.76, subdivision 2a; minus
190.31 	(3) the amount of general education revenue, excluding local optional revenue, plus 
190.32 	local optional aid and referendum equalization aid for the prior fiscal year attributable 
190.33 	to pupils receiving special instruction and services outside the regular classroom for 
190.34 	more than 60 percent of the school day for the portion of time the pupils receive special 
190.35 	instruction and services outside the regular classroom, excluding portions attributable to 
191.1 	district and school administration, district support services, operations and maintenance, 
191.2 	capital expenditures, and pupil transportation.
191.3 	(b) "Unreimbursed nonfederal special education expenditures" means:
191.4 	(1) nonfederal special education expenditures for the prior fiscal year; minus
191.5 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
191.6 	(3) for fiscal year 2016 and later, the amount of general education revenue and 
191.7 	referendum equalization aid for the prior fiscal year attributable to pupils receiving 
191.8 	special instruction and services outside the regular classroom for more than 60 percent of 
191.9 	the school day for the portion of time the pupils receive special instruction and services 
191.10 	outside of the regular classroom, excluding portions attributable to district and school 
191.11 	administration, district support services, operations and maintenance, capital expenditures, 
191.12 	and pupil transportation.
191.13 	(c) "General revenue" for a school district means the sum of the general education 
191.14 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
191.15 	compensation revenue, minus transportation sparsity revenue minus, local optional 
191.16 	revenue, and total operating capital revenue. "General revenue" for a charter school means 
191.17 	the sum of the general education revenue according to section 124D.11, subdivision 1, and 
191.18 	transportation revenue according to section 124D.11, subdivision 2, excluding alternative 
191.19 	teacher compensation revenue, minus referendum equalization aid minus, transportation 
191.20 	sparsity revenue minus, and operating capital revenue.

191.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
191.22 	and applies to revenue for fiscal year 2014 and later.

191.23 	Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is 
191.24 	amended to read:
191.25 		Subd. 5.Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
191.26 	 excess cost aid equals the greater of:
191.27 	(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal 
191.28 	special education expenditures and (ii) 7.0 percent of the district's general revenue;
191.29 	(2) 62 percent of the difference between (i) the district's unreimbursed old formula 
191.30 	special education expenditures and (ii) 2.5 percent of the district's general revenue; or
191.31 	(3) zero.

191.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
191.33 	and later.

192.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is 
192.2 	amended to read:
192.3 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
192.4 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
192.5 	treatment facility by court action in a state that does not have a reciprocity agreement with 
192.6 	the commissioner under section 125A.155, the resident school district shall submit the 
192.7 	balance receive special education out-of-state tuition aid equal to the amount of the tuition 
192.8 	bills, minus (1) the general education revenue, excluding basic skills revenue and the local 
192.9 	optional levy attributable to the pupil, calculated using the resident district's average 
192.10 	general education revenue per adjusted pupil unit, and (2) the referendum equalization aid 
192.11 	attributable to the pupil, calculated using the resident district's average general education 
192.12 	revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special 
192.13 	education contracted services initial revenueaid attributable to the pupil.

192.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
192.15 	and later.

192.16 	Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
192.17 		Subd. 8.Special education paperwork cost savings. (a) For the contract to 
192.18 	customize a statewide online reporting system and effect special education paperwork 
192.19 	cost savings:

192.20		$
	1,763,000
	.....
	2014
	
192.21 	For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and 
192.22 	must be expended according to this subdivision for online due process reporting.
192.23 	(b) To ensure a strong focus on outcomes for children with disabilities informs 
192.24 	federal and state compliance and accountability requirements and to increase opportunities 
192.25 	for special educators and related-services providers to focus on teaching children with 
192.26 	disabilities, the commissioner must customize a streamlined, user-friendly statewide 
192.27 	online system, with a single model online form, for effectively and efficiently collecting 
192.28 	and reporting required special education-related data to individuals with a legitimate 
192.29 	educational interest and who are authorized by law to access the data.
192.30 	(c) The commissioner must consult with qualified experts, including information 
192.31 	technology specialists, licensed special education teachers and directors of special 
192.32 	education, related-services providers, third-party vendors, a designee of the commissioner 
192.33 	of human services, parents of children with disabilities, representatives of advocacy groups 
192.34 	representing children with disabilities, and representatives of school districts and special 
193.1 	education cooperatives on integrating, field testing, customizing, and sustaining this simple, 
193.2 	easily accessible, efficient, and effective online data system for uniform statewide reporting 
193.3 	of required due process compliance data. Among other outcomes, the system must:
193.4 	(1) reduce special education teachers' paperwork burden and thereby increase the 
193.5 	teachers' opportunities to focus on teaching children;
193.6 	(2) to the extent authorized by chapter 13 or other applicable state or federal law 
193.7 	governing access to and dissemination of educational records, provide for efficiently 
193.8 	and effectively transmitting the records of all transferring children with disabilities, 
193.9 	including highly mobile and homeless children with disabilities, among others, and avoid 
193.10 	fragmented service delivery;
193.11 	(3) address language and other barriers and disparities that prevent parents from 
193.12 	understanding and communicating information about the needs of their children with 
193.13 	disabilities; and
193.14 	(4) help continuously improve the interface among the online systems serving 
193.15 	children with disabilities in order to maintain and reinforce the children's ability to learn.
193.16 	(d) The commissioner must use the federal Office of Special Education Programs 
193.17 	model forms for the (1) individualized education program, (2) notice of procedural 
193.18 	safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate 
193.19 	and customize a state-sponsored universal special education online case management 
193.20 	system, consistent with the requirements of state law and this subdivision for customizing 
193.21 	a statewide online reporting system. The commissioner must use a request for proposal 
193.22 	process to contract for the technology and software needed for customizing the online 
193.23 	system in order for the system to be fully functional, consistent with the requirements of 
193.24 	this subdivision. This online system must be made available to school districts without 
193.25 	charge beginning in the 2015-2016 school year. All actions in which data in the system 
193.26 	are entered, updated, accessed, or shared or disseminated outside of the system, must be 
193.27 	recorded in a data audit trail. The audit trail must identify the user responsible for the 
193.28 	action, and the date and time the action occurred. Data contained in the audit trail maintain 
193.29 	the same classification as the underlying data that was affected by the action, and may be 
193.30 	accessed by the responsible authority at any time for purposes of auditing the system's 
193.31 	user activity and security safeguards. For the 2015-2016 through 2017-2018 school years, 
193.32 	school districts may use this online system or may contract with an outside vendor for 
193.33 	compliance reporting. Beginning in the 2018-2019 school year and later, school districts 
193.34 	must use this online system for compliance reporting.
193.35 	(e) Consistent with this subdivision, the commissioner must establish a public 
193.36 	Internet Web interface to provide information to educators, parents, and the public about 
194.1 	the form and content of required special education reports, to respond to queries from 
194.2 	educators, parents, and the public about specific aspects of special education reports and 
194.3 	reporting, and to use the information garnered from the interface to streamline and revise 
194.4 	special education reporting on the online system under this subdivision. The public Internet 
194.5 	Web interface must not provide access to the educational records of any individual child.
194.6 	(f) The commissioner annually by February 1 must submit to the legislature a report 
194.7 	on the status, recent changes, and sustainability of the online system under this subdivision.

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

194.9 	Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE 
194.10 	RECOMMENDATIONS.
 194.11 	The commissioner of education must use the expedited rulemaking process under 
194.12 	Minnesota Statutes, section 14.389, including subdivision 5, to make the rule changes 
194.13 	recommended by the Special Education Case Load and Rule Alignment Task Force in 
194.14 	its 2014 report entitled "Recommendations for Special Education Case Load and Rule 
194.15 	Alignment" submitted to the legislature on February 15, 2014.

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

194.17 	Sec. 13. APPROPRIATION.
 194.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
194.19 	appropriated from the general fund to the Department of Education for the fiscal years 
194.20 	designated.
194.21 		Subd. 2.Department assistance. For the commissioner of education to assist 
194.22 	school districts in meeting the needs of children who have experienced a high use of prone 
194.23 	restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

194.24		$
	250,000
	.....
	2015
	
194.25 	The commissioners of education and human services, or their designees, must 
194.26 	discuss coordinating use of funds and personnel available for this purpose within their 
194.27 	respective departments. This is a onetime appropriation.

194.28 	ARTICLE 20
194.29 	FACILITIES

194.30 	Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
195.1 		Subdivision 1.Schools may be jointly operated. Two or more school districts may 
195.2 	agree to jointly operate a secondary facility. The districts may choose to operate the 
195.3 	facility according to a joint powers agreement under section 123A.78 or 471.59.
195.4 		Subd. 2.Expanded program offerings. A jointly operated secondary program 
195.5 	seeking funding under section 123A.485 must demonstrate to the commissioner's 
195.6 	satisfaction that the jointly operated program provides enhanced learning opportunities and 
195.7 	broader curriculum offerings to the students attending that program. The commissioner 
195.8 	must approve or disapprove a cooperative secondary program within 60 days of receipt of 
195.9 	an application.
195.10 		Subd. 3.Transfer of employees. If an employee is transferred between two 
195.11 	employer members of the joint powers agreement under this section, the employee's 
195.12 	length of service under section 122A.40, subdivision 5, remains uninterrupted. The 
195.13 	employee shall receive credit on the receiving district's salary schedule for the employee's 
195.14 	educational attainment and years of continuous service in the sending district, or shall 
195.15 	receive a comparable salary, whichever is greater. The employee shall receive credit for 
195.16 	accrued sick leave and rights to severance benefits as if the employee had been employed 
195.17 	by the receiving district during the employee's years of employment in the sending district.
195.18 		Subd. 4.Revenue. An approved program that is jointly operated under this section 
195.19 	is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections 
195.20 	123A.44 to 123A.446.
195.21 		Subd. 5.Duty to maintain elementary and secondary schools met. A school 
195.22 	district operating a joint facility under this section meets the requirements of section 
195.23 	123A.64.
195.24 		Subd. 6.Estimated market value limit exclusion. Bonds for a cooperative facility 
195.25 	operated under this section issued by a member school district are not subject to the net 
195.26 	debt limit under section 475.53, subdivision 4. 
195.27 		Subd. 7.Allocation of levy authority for joint facility. For purposes of determining 
195.28 	each member district's school levy, a jointly operated secondary program may allocate 
195.29 	program costs to each member district according to the joint powers agreement and each 
195.30 	member district may include those costs in its tax levy. The joint powers agreement may 
195.31 	choose to allocate costs on any basis adopted as part of the joint powers agreement.
195.32 		Subd. 8.Effect of consolidation. The joint powers agreement may allow member 
195.33 	school districts that choose to consolidate to continue to certify levies separately based on 
195.34 	each component district's characteristics.
195.35 		Subd. 9.Bonds. A joint powers district formed under this section may issue bonds 
195.36 	according to section 123A.78 or its member districts may issue bonds individually after 
196.1 	complying with this subdivision. The joint powers board must submit the project for 
196.2 	review and comment under section 123B.71. The joint powers board must hold a hearing 
196.3 	on the proposal. If the bonds are not issued under section 123A.78, each member district 
196.4 	of the joint powers district must submit the question of authorizing borrowing of funds for 
196.5 	the project to the voters of the district at a special election. The question submitted shall 
196.6 	state the total amount of funding needed from that district. The member district may issue 
196.7 	the bonds according to chapter 475 and certify the levy required by section 475.61 only if 
196.8 	a majority of those voting on the question in that district vote in the affirmative and only 
196.9 	after the board has adopted a resolution pledging the full faith and credit of that unit. The 
196.10 	resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy 
196.11 	shortages that, together with other funds available, would allow the member school board 
196.12 	to pay the principal and interest on the obligations. The clerk of the joint powers board 
196.13 	must certify the vote of any bond elections to the commissioner. Bonds issued under this 
196.14 	section first qualify for debt service equalization aid in fiscal year 2018.
196.15 		Subd. 10.Election. A district entering into a joint powers agreement under this 
196.16 	section may conduct a referendum seeking approval for a new facility. This election may 
196.17 	be held separately or at the same time as a bond election under subdivision 9. If the 
196.18 	election is held at the same time, the questions may be asked separately or as a conjunctive 
196.19 	question. The question must be approved by a majority of those voting on the question. 
196.20 	If asked separately and the question fails, a district may not proceed with the sale of 
196.21 	bonds according to subdivision 9.

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

196.23 	Sec. 2. Minnesota Statutes 2012, section 123A.485, is amended to read:
196.24 	123A.485 CONSOLIDATION TRANSITION REVENUE AID.
196.25 		Subdivision 1.Eligibility and use. A district that operates a cooperative facility 
196.26 	under section 123A.482 or that has been reorganized after June 30, 1994, under section 
196.27 	123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
196.28 	 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
196.29 	 aid may only be used according to this section. Revenue must be used for the following 
196.30 	purposes and may be distributed among these purposes at the discretion of the district or 
196.31 	the governing board of the cooperative facility:
196.32 	(1) to offer early retirement incentives as provided by section 123A.48, subdivision 
196.33 	23;
196.34 	(2) to reduce operating debt as defined in section 123B.82;
197.1 	(3) to enhance learning opportunities for students in the reorganized district; and
197.2 	(4) to repay building debt; or
197.3 	(5) for other costs incurred in the reorganization.
197.4 	Revenue received and utilized under clause (3) or (4) (5) may be expended for 
197.5 	operating, facilities, and/or equipment.
197.6 		Subd. 2.Aid. (a) Consolidation transition aid is equal to $200 $300 times the 
197.7 	number of resident adjusted pupil units in the newly created cooperative facility under 
197.8 	section 123A.482 or the consolidated district in the year of consolidation and $100 times 
197.9 	the number of resident pupil units in the first year following the year of consolidation
197.10 	 under section 123A.48. The number of pupil units used to calculate aidin either year 
197.11 	shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts 
197.12 	consolidating July 1, 1995, and thereafter A district may receive aid under this section for 
197.13 	not more than five years except as provided in subdivision 4.
197.14 	(b) If the total appropriation for consolidation transition aid for any fiscal year, plus 
197.15 	any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all 
197.16 	districts the full amount of aid earned, the department must first pay the districts in the first 
197.17 	year following the year of consolidation the full amount of aid earned and distribute any 
197.18 	remaining funds to the newly created districts in the first year of consolidation.
197.19 		Subd. 3.Levy. If the aid available in subdivision 2 is insufficient to cover the costs 
197.20 	of the district under section 123A.48, subdivision 23, the district may levy the difference 
197.21 	over a period of time not to exceed three years.
197.22 		Subd. 4.New districts. If a district enters into a cooperative secondary facilities 
197.23 	program or consolidates with another district that has received aid under section 123A.39, 
197.24 	subdivision 3, or 123A.485 for a combination or consolidation taking effect within 
197.25 	six years of the effective date of the new consolidation or the start of the cooperative 
197.26 	secondary facilities program, only the pupil units in the district or districts not previously
197.27 	 cooperating or reorganized must be counted for aid purposes under subdivision 2. If 
197.28 	two or more districts consolidate and all districts received aid under subdivision 2 for a 
197.29 	consolidation taking effect within six years of the effective date of the new consolidation, 
197.30 	only one quarter of the pupil units in the newly created district must be used to determine 
197.31 	aid under subdivision 2.

197.32 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2017 
197.33 	and later.

198.1 	Sec. 3. Minnesota Statutes 2012, section 123A.64, is amended to read:
198.2 	123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY 
198.3 	SCHOOLS.
198.4 	Each district must maintain classified elementary and secondary schools, grades 1 
198.5 	through 12, unless the district is exempt according to section 123A.61 or 123A.62, has 
198.6 	made an agreement with another district or districts as provided in sections 123A.30, 
198.7 	123A.32, or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a 
198.8 	grant under sections 123A.441 to 123A.446, or has formed a cooperative under section 
198.9 	123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or 
198.10 	123A.32 must operate a school with the number of grades required by those sections. A 
198.11 	district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or 
198.12 	has received a grant under sections 123A.441 to 123A.446 must operate a school for the 
198.13 	grades not included in the agreement, but not fewer than three grades.

198.14 	Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is 
198.15 	amended to read:
198.16 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
198.17 	revenue of a district is defined as follows:
198.18 	(1) the amount needed to produce between five and six percent in excess of the 
198.19 	amount needed to meet when due the principal and interest payments on the obligations 
198.20 	of the district for eligible projects according to subdivision 2, including the amounts 
198.21 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
198.22 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
198.23 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
198.24 	5, paragraph (a), minus
198.25 	(2) the amount of debt service excess levy reduction for that school year calculated 
198.26 	according to the procedure established by the commissioner.
198.27 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
198.28 	(1) obligations under section 123B.61;
198.29 	(2) the part of debt service principal and interest paid from the taconite environmental 
198.30 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
198.31 	taconite payments from the Iron Range school consolidation and cooperatively operated 
198.32 	school account under section 298.28, subdivision 7a;
198.33 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
198.34 	amended by Laws 1992, chapter 499, article 5, section 24; and
198.35 	(4) obligations under section 123B.62; and
199.1 	(5) obligations equalized under section 123B.535.
199.2 	(c) For purposes of this section, if a preexisting school district reorganized under 
199.3 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
199.4 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
199.5 	service equalization aid must be computed separately for each of the preexisting districts.
199.6 	(d) For purposes of this section, the adjusted net tax capacity determined according 
199.7 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
199.8 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

199.9 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

199.10 	Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is 
199.11 	amended to read:
199.12 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
199.13 	district equals the sum of the first tier equalized debt service levy and the second tier 
199.14 	equalized debt service levy.
199.15 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
199.16 	service equalization revenue times the lesser of one or the ratio of:
199.17 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
199.18 	the year before the year the levy is certified by the adjusted pupil units in the district for 
199.19 	the school year ending in the year prior to the year the levy is certified; to
199.20 	(2) $3,550 $4,970.
199.21 	(c) A district's second tier equalized debt service levy equals the district's second tier 
199.22 	debt service equalization revenue times the lesser of one or the ratio of:
199.23 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
199.24 	the year before the year the levy is certified by the adjusted pupil units in the district for 
199.25 	the school year ending in the year prior to the year the levy is certified; to
199.26 	(2) $7,900 $8,000.

199.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
199.28 	and later.

199.29 	Sec. 6. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
199.30 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible natural 
199.31 	disaster debt service revenue of a district is defined as the amount needed to produce 
199.32 	between five and six percent in excess of the amount needed to meet when due the 
200.1 	principal and interest payments on the obligations of the district that would otherwise 
200.2 	qualify under section 123B.53 under the following conditions:
200.3 	(1) the district was impacted by a natural disaster event or area occurring January 
200.4 	1, 2005, or later, as declared by the President of the United States of America, which is 
200.5 	eligible for Federal Emergency Management Agency payments;
200.6 	(2) the natural disaster caused $500,000 or more in damages to school district 
200.7 	buildings; and
200.8 	(3) the repair and replacement costs are not covered by insurance payments or 
200.9 	Federal Emergency Management Agency payments.
200.10 	(b) For purposes of this section, the adjusted net tax capacity equalizing factor 
200.11 	equals the quotient derived by dividing the total adjusted net tax capacity of all school 
200.12 	districts in the state for the year before the year the levy is certified by the total number of 
200.13 	adjusted pupil units in the state for the year prior to the year the levy is certified.
200.14 	(c) For purposes of this section, the adjusted net tax capacity determined according 
200.15 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
200.16 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.
200.17 		Subd. 2.Notification. A district eligible for natural disaster debt service 
200.18 	equalization revenue under subdivision 1 must notify the commissioner of the amount of 
200.19 	its intended natural disaster debt service revenue calculated under subdivision 1 for all 
200.20 	bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
200.21 		Subd. 3.Natural disaster debt service equalization revenue. The debt service 
200.22 	equalization revenue of a district equals the greater of zero or the eligible debt service 
200.23 	revenue, minus the greater of zero or the difference between:
200.24 	(1) the amount raised by a levy of ten percent times the adjusted net tax capacity 
200.25 	of the district; and
200.26 	(2) the district's eligible debt service revenue under section 123B.53.
200.27 		Subd. 4.Equalized natural disaster debt service levy. A district's equalized 
200.28 	natural disaster debt service levy equals the district's natural disaster debt service 
200.29 	equalization revenue times the lesser of one or the ratio of:
200.30 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
200.31 	the year before the year the levy is certified by the adjusted pupil units in the district for 
200.32 	the school year ending in the year prior to the year the levy is certified; to
200.33 	(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
200.34 		Subd. 5.Natural disaster debt service equalization aid. A district's natural 
200.35 	disaster debt service equalization aid equals the difference between the district's natural 
201.1 	disaster debt service equalization revenue and the district's equalized natural disaster 
201.2 	debt service levy.
201.3 		Subd. 6.Natural disaster debt service equalization aid payment schedule. Debt 
201.4 	service equalization aid must be paid according to section 127A.45, subdivision 10.

201.5 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and 
201.6 	revenue for fiscal year 2017 and later.

201.7 	Sec. 7. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
201.8 	123B.54 DEBT SERVICE APPROPRIATION.
201.9 	(a) The amount necessary to make debt service equalization aid payments under 
201.10 	section sections123B.53and 123B.535 is annually appropriated from the general fund to 
201.11 	the commissioner of education.
201.12 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
201.13 	money specifically appropriated for the same purpose in any year from any state fund.

201.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
201.15 	and later.

201.16 	Sec. 8. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
201.17 		Subd. 8.Review and comment. A school district, a special education cooperative, 
201.18 	or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not 
201.19 	initiate an installment contract for purchase or a lease agreement, hold a referendum for 
201.20 	bonds, nor solicit bids for new construction, expansion, or remodeling of an educational 
201.21 	facility that requires an expenditure in excess of $500,000 per school site if it has a capital 
201.22 	loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital 
201.23 	loan outstanding, prior to review and comment by the commissioner. The commissioner 
201.24 	may exempt A facility addition, maintenance project, or remodeling project funded only 
201.25 	with general education aid and levy revenue, deferred maintenance revenue, alternative 
201.26 	facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond 
201.27 	proceeds, or health and safety revenue is exempt from this provision after reviewing a 
201.28 	written request from a school district describing the scope of work. A capital project under 
201.29 	section 123B.63 addressing only technology is exempt from this provision if the district 
201.30 	submits a school board resolution stating that funds approved by the voters will be used 
201.31 	only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
201.32 	portions of a single project into components to avoid the requirements of this subdivision.

202.1 	Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
202.2 		Subd. 9.Information required. A school board proposing to construct, expand, 
202.3 	or remodel a facility described in that requires a review and comment under subdivision 
202.4 	8 shall submit to the commissioner a proposal containing information including at least 
202.5 	the following:
202.6 	(1) the geographic area and population to be served, preschool through grade 12 
202.7 	student enrollments for the past five years, and student enrollment projections for the 
202.8 	next five years;
202.9 	(2) a list of existing facilities by year constructed, their uses, and an assessment of 
202.10 	the extent to which alternate facilities are available within the school district boundaries 
202.11 	and in adjacent school districts;
202.12 	(3) a list of the specific deficiencies of the facility that demonstrate the need for a 
202.13 	new or renovated facility to be provided, the process used to determine the deficiencies, a 
202.14 	list of those deficiencies that will and will not be addressed by the proposed project, and a 
202.15 	list of the specific benefits that the new or renovated facility will provide to the students, 
202.16 	teachers, and community users served by the facility;
202.17 	(4) the relationship of the project to any priorities established by the school district, 
202.18 	educational cooperatives that provide support services, or other public bodies in the 
202.19 	service area;
202.20 	(5) a description of the pedestrian, bicycle, and transit connections between the 
202.21 	school and nearby residential areas that make it easier for children, teachers, and parents 
202.22 	to get to the school by walking, bicycling, and taking transit;
202.23 	(6) a specification of how the project maximizes the opportunity for cooperative use 
202.24 	of existing park, recreation, and other public facilities and whether and how the project 
202.25 	will increase collaboration with other governmental or nonprofit entities;
202.26 	(7) (4) a description of the project, including the specification of site and outdoor 
202.27 	space acreage and square footage allocations for classrooms, laboratories, and support 
202.28 	spaces; estimated expenditures for the major portions of the project; and the dates the 
202.29 	project will begin and be completed;
202.30 	(8) (5) a specification of the source of financing the project, including applicable 
202.31 	statutory citations; the scheduled date for a bond issue or school board action; a schedule 
202.32 	of payments, including debt service equalization aid; and the effect of a bond issue on 
202.33 	local property taxes by the property class and valuation;
202.34 	(9) an analysis of how the proposed new or remodeled facility will affect school 
202.35 	district operational or administrative staffing costs, and how the district's operating budget 
202.36 	will cover any increased operational or administrative staffing costs;
203.1 	(10) a description of the consultation with local or state transportation officials 
203.2 	on multimodal school site access and safety issues, and the ways that the project will 
203.3 	address those issues;
203.4 	(11) a description of how indoor air quality issues have been considered and a 
203.5 	certification that the architects and engineers designing the facility will have professional 
203.6 	liability insurance;
203.7 	(12) as required under section 123B.72, for buildings coming into service after July 1, 
203.8 	2002, a certification that the plans and designs for the extensively renovated or new facility's 
203.9 	heating, ventilation, and air conditioning systems will meet or exceed code standards; will 
203.10 	provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and 
203.11 	will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
203.12 	(13) a specification of any desegregation requirements that cannot be met by any 
203.13 	other reasonable means;
203.14 	(14) a specification of how the facility will utilize environmentally sustainable 
203.15 	school facility design concepts;
203.16 	(15) a description of how the architects and engineers have considered the American 
203.17 	National Standards Institute Acoustical Performance Criteria, Design Requirements 
203.18 	and Guidelines for Schools of the maximum background noise level and reverberation 
203.19 	times; and
203.20 	(16) any existing information from the relevant local unit of government about the 
203.21 	cumulative costs to provide infrastructure to serve the school, such as utilities, sewer, 
203.22 	roads, and sidewalks.
203.23 	(6) documents obligating the school district and contractors to comply with items (i) 
203.24 	to (vii) in planning and executing the project:
203.25 	(i) section 471.346 governing municipal contracts;
203.26 	(ii) sustainable design;
203.27 	(iii) school facility commissioning under section 123B.72 certifying the plans and 
203.28 	designs for the heating, ventilating, air conditioning, and air filtration for an extensively 
203.29 	renovated or new facility meet or exceed current code standards, including the ASHRAE 
203.30 	air filtration standard 52.1;
203.31 	(iv) American National Standards Institute Acoustical Performance Criteria, Design 
203.32 	Requirements and Guidelines for Schools on maximum background noise level and 
203.33 	reverberation times;
203.34 	(v) State Fire Code;
203.35 	(vi) chapter 326B governing building codes; and
204.1 	(vii) consultation with affected government units about the impact of the project 
204.2 	on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic, 
204.3 	access to mass transit, and safe access for pedestrians and cyclists.

204.4 	Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d, 
204.5 	is amended to read:
204.6 		Subd. 2d.Declining enrollment revenue. (a) A school district's declining 
204.7 	enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the 
204.8 	formula allowance for that year and (2) the difference between the adjusted pupil units for 
204.9 	the preceding year and the adjusted pupil units for the current year.
204.10 	(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil 
204.11 	enrolled at the Crosswinds school shall not generate declining enrollment revenue for the 
204.12 	district or charter school in which the pupil was last counted in average daily membership.

204.13 	Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is 
204.14 	amended to read:
204.15 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
204.16 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
204.17 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
204.18 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
204.19 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 
204.20 	to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon 
204.21 	severed mineral values must reduce the levies authorized by this chapter and chapters 
204.22 	120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the 
204.23 	previous year's revenue specified under this clause and the amount attributable to the same 
204.24 	production year distributed to the cities and townships within the school district under 
204.25 	section 298.28, subdivision 2, paragraph (c).
204.26 	(3) The amount of any voter approved referendum, facilities down payment, and 
204.27 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
204.28 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
204.29 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
204.30 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
204.31 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
204.32 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
204.33 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
204.34 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
205.1 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
205.2 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
205.3 	reduce any voter approved debt levies.
205.4 	(4) Before computing the reduction pursuant to this subdivision of the health and 
205.5 	safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner 
205.6 	shall ascertain from each affected school district the amount it proposes to levy under 
205.7 	each section or subdivision. The reduction shall be computed on the basis of the amount 
205.8 	so ascertained.
205.9 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
205.10 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
205.11 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
205.12 	year to the cities and townships within the school district in the proportion that their 
205.13 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
205.14 	the school district for property taxes payable in the year prior to distribution. No city or 
205.15 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
205.16 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
205.17 	towns under this paragraph to the county auditor by September 30 of the year preceding 
205.18 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
205.19 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
205.20 	and towns shall be made at the times provided under section 298.27.

205.21 	Sec. 12. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
205.22 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
205.23 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
205.24 	any taxable year is changed after the taxes for that year have been spread by the county 
205.25 	auditor and the local tax rate as determined by the county auditor based upon the original 
205.26 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
205.27 	prior to February 1 of each year, certify to the commissioner of education the amount of 
205.28 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
205.29 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
205.30 	calculated according to the provisions of this subdivision. This amount shall be deducted 
205.31 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
205.32 	adjustment must be the product of:
205.33 	(1) the net revenue loss as certified by the county auditor, times
205.34 	(2) the ratio of:
206.1 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
206.2 	according to the following:
206.3 	(A) section 123B.57, if the district received health and safety aid according to that 
206.4 	section for the second preceding year;
206.5 	(B) section 124D.20, if the district received aid for community education programs 
206.6 	according to that section for the second preceding year;
206.7 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
206.8 	education aid according to section 124D.135 for the second preceding year;
206.9 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
206.10 	aid according to that section for the second preceding year;
206.11 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
206.12 	according to section 126C.10, subdivision 13b, in the second preceding year;
206.13 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
206.14 	section 126C.10, subdivision 30, in the second preceding year;
206.15 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
206.16 	to section 126C.10, subdivision 33, in the second preceding year;
206.17 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
206.18 	aid according to section 123B.53, subdivision 6, in the second preceding year;
206.19 	(I) section 123B.535, subdivision 4, if the district received natural disaster debt 
206.20 	service equalization aid according to section 123B.535, subdivision 5, in the second 
206.21 	preceding year;
206.22 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
206.23 	according to section 124D.22, subdivision 4, in the second preceding year;
206.24 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
206.25 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
206.26 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
206.27 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
206.28 	(a), in the second preceding year; to
206.29 	(ii) the total amount of the district's certified levy in the third preceding December, 
206.30 	plus or minus auditor's adjustments.

206.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
206.32 	and later.

206.33 	Sec. 13. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
206.34 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
206.35 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
207.1 	decertification of a tax increment district, the school district's aid and levy limitations 
207.2 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
207.3 	provisions of this subdivision.
207.4 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
207.5 	equal to the product of:
207.6 	(1) the amount of the payment of excess tax increment to the district, times
207.7 	(2) the ratio of:
207.8 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
207.9 	the excess tax increment is paid according to the following:
207.10 	(A) section 123B.57, if the district received health and safety aid according to that 
207.11 	section for the second preceding year;
207.12 	(B) section 124D.20, if the district received aid for community education programs 
207.13 	according to that section for the second preceding year;
207.14 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
207.15 	education aid according to section 124D.135 for the second preceding year;
207.16 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
207.17 	aid according to that section for the second preceding year;
207.18 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
207.19 	according to section 126C.10, subdivision 13b, in the second preceding year;
207.20 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
207.21 	section 126C.10, subdivision 30, in the second preceding year;
207.22 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
207.23 	to section 126C.10, subdivision 33, in the second preceding year;
207.24 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
207.25 	aid according to section 123B.53, subdivision 6, in the second preceding year;
207.26 	(I) section 123B.535, subdivision 4, if the district received natural disaster debt 
207.27 	service equalization aid according to section 123B.535, subdivision 5, in the second 
207.28 	preceding year;
207.29 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
207.30 	according to section 124D.22, subdivision 4, in the second preceding year;
207.31 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
207.32 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
207.33 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
207.34 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
207.35 	(a), in the second preceding year; to
208.1 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
208.2 	auditor's adjustments.
208.3 	(c) An amount must be subtracted from the school district's levy limitation for the 
208.4 	next levy certified equal to the difference between:
208.5 	(1) the amount of the distribution of excess increment; and
208.6 	(2) the amount subtracted from aid pursuant to clause (a).
208.7 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
208.8 	for the fiscal year specified or to the levy specified, the reductions must be made from 
208.9 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
208.10 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
208.11 	this subdivision.
208.12 	(d) This subdivision applies only to the total amount of excess increments received 
208.13 	by a district for a calendar year that exceeds $25,000.

208.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
208.15 	and later.

208.16 	Sec. 14. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
208.17 		Subd. 3.Powers and duties of board. (a) The board has the powers necessary for 
208.18 	the care, management, and control of the Perpich Center for Arts Education and any other 
208.19 	school authorized in this chapter, and all its their real and personal property. The powers 
208.20 	shall include, but are not limited to, those listed in this subdivision.
208.21 	(b) The board may employ and discharge necessary employees, and contract for 
208.22 	other services to ensure the efficient operation of the Center for Arts Education and any 
208.23 	other school authorized in this chapter.
208.24 	(c) The board may receive and award grants. The board may establish a charitable 
208.25 	foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for 
208.26 	educational purposes and hold, manage, invest, and dispose of them and the proceeds 
208.27 	and income of them according to the terms and conditions of the gift, grant, bequest, or 
208.28 	devise and its acceptance. The board must adopt internal procedures to administer and 
208.29 	monitor aids and grants.
208.30 	(d) The board may establish or coordinate evening, continuing education, extension, 
208.31 	and summer programs for teachers and pupils.
208.32 	(e) The board may identify pupils who have artistic talent, either demonstrated or 
208.33 	potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more 
208.34 	than one art form.
208.35 	(f) The board must educate pupils with artistic talent by providing:
209.1 	(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th 
209.2 	grades. The total number of pupils accepted under this clause and clause (2) shall not 
209.3 	exceed 310;
209.4 	(2) additional instruction to pupils for a 13th grade. Pupils eligible for this 
209.5 	instruction are those enrolled in 12th grade who need extra instruction and who apply 
209.6 	to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes 
209.7 	established by the board;
209.8 	(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
209.9 	(4) summer arts institutes for pupils in grades 9 to 12;
209.10 	(5) artist mentor and extension programs in regional sites; and
209.11 	(6) teacher education programs for indirect curriculum delivery.
209.12 	(g) The board may determine the location for the Perpich Center for Arts Education 
209.13 	and any additional facilities related to the center, including the authority to lease a 
209.14 	temporary facility.
209.15 	(h) The board must plan for the enrollment of pupils on an equal basis from each 
209.16 	congressional district.
209.17 	(i) The board may establish task forces as needed to advise the board on policies and 
209.18 	issues. The task forces expire as provided in section 15.059, subdivision 6.
209.19 	(j) The board may request the commissioner of education for assistance and services.
209.20 	(k) The board may enter into contracts with other public and private agencies 
209.21 	and institutions for residential and building maintenance services if it determines that 
209.22 	these services could be provided more efficiently and less expensively by a contractor 
209.23 	than by the board itself. The board may also enter into contracts with public or private 
209.24 	agencies and institutions, school districts or combinations of school districts, or service 
209.25 	cooperatives to provide supplemental educational instruction and services.
209.26 	(l) The board may provide or contract for services and programs by and for the 
209.27 	Center for Arts Education, including a store, operating in connection with the center; 
209.28 	theatrical events; and other programs and services that, in the determination of the board, 
209.29 	serve the purposes of the center.
209.30 	(m) The board may provide for transportation of pupils to and from the Center for 
209.31 	Arts Education for all or part of the school year, as the board considers advisable and 
209.32 	subject to its rules. Notwithstanding any other law to the contrary, the board may charge a 
209.33 	reasonable fee for transportation of pupils. Every driver providing transportation of pupils 
209.34 	under this paragraph must possess all qualifications required by the commissioner of 
209.35 	education. The board may contract for furnishing authorized transportation under rules 
209.36 	established by the commissioner of education and may purchase and furnish gasoline to a 
210.1 	contract carrier for use in the performance of a contract with the board for transportation 
210.2 	of pupils to and from the Center for Arts Education. When transportation is provided, 
210.3 	scheduling of routes, establishment of the location of bus stops, the manner and method of 
210.4 	transportation, the control and discipline of pupils, and any other related matter is within 
210.5 	the sole discretion, control, and management of the board.
210.6 	(n) The board may provide room and board for its pupils. If the board provides room 
210.7 	and board, it shall charge a reasonable fee for the room and board. The fee is not subject 
210.8 	to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
210.9 	(o) The board may establish and set fees for services and programs. If the board sets 
210.10 	fees not authorized or prohibited by the Minnesota public school fee law, it may do so 
210.11 	without complying with the requirements of section 123B.38.
210.12 	(p) The board may apply for all competitive grants administered by agencies of the 
210.13 	state and other government or nongovernment sources.

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

210.15 	Sec. 15. Minnesota Statutes 2012, section 129C.10, is amended by adding a 
210.16 	subdivision to read:
210.17 		Subd. 5a.Interdistrict voluntary integration magnet program. Notwithstanding 
210.18 	Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate 
210.19 	an interdistrict integration magnet program according to section 129C.30. For fiscal year 
210.20 	2016 and later, the board must have an approved achievement and integration plan and 
210.21 	budget under section 124D.861.

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

210.23 	Sec. 16. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
210.24 		Subdivision 1.Definitions. (a) The following terms having the meanings given 
210.25 	them for this chapter.
210.26 	(b) "Board" means the board of directors of the Perpich Center for Arts Education.
210.27 	(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during 
210.28 	the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration 
210.29 	District.
210.30 		Subd. 2.Board to operate the Crosswinds school. The board may operate the 
210.31 	Crosswinds school with the powers and duties granted to it under this chapter. A student 
210.32 	may apply to the Crosswinds school under section 124D.03 and the Crosswinds school 
210.33 	may accept students under that section.
211.1 		Subd. 3.General education funding. General education revenue must be paid to 
211.2 	the Crosswinds school as though it were a district. The general education revenue for each 
211.3 	adjusted pupil unit is the state average general education revenue per pupil unit, plus 
211.4 	the referendum equalization aid allowance in the pupil's district of residence, minus an 
211.5 	amount equal to the product of the formula allowance according to section 126C.10, 
211.6 	subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue, 
211.7 	extended time revenue, pension adjustment revenue, transition revenue, and transportation 
211.8 	sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue, 
211.9 	pension adjustment revenue, and transition revenue as though the school were a school 
211.10 	district. The general education revenue for each extended time pupil unit equals $4,794.
211.11 		Subd. 4.Special education funding. Special education aid must be paid to the 
211.12 	Crosswinds school according to sections 125A.76 and 125A.79, as though it were a 
211.13 	school district. The special education aid paid to the Crosswinds school shall be adjusted 
211.14 	as follows:
211.15 	(1) if the Crosswinds school does not receive general education revenue on behalf of 
211.16 	the student according to subdivision 3, the aid shall be adjusted as provided in section 
211.17 	125A.11; or
211.18 	(2) if the Crosswinds school receives general education revenue on behalf of the 
211.19 	student according to subdivision 3, the aid shall be adjusted as provided in section 
211.20 	127A.47, subdivision 7, paragraphs (b) to (d).
211.21 		Subd. 5.Pupil transportation.  (a) For fiscal year 2015 only, a member district of 
211.22 	Joint Powers District No. 6067, East Metro Integration District, must transport pupils 
211.23 	enrolled at the Crosswinds school in the same manner as they were transported in fiscal 
211.24 	year 2014. 
211.25 	(b) Pupil transportation expenses under this section are reimbursable under section 
211.26 	124D.87.
211.27 		Subd. 6.Achievement and integration aid. For fiscal year 2016 and later, the 
211.28 	Crosswinds school is eligible for achievement and integration aid under section 124D.862 
211.29 	as if it were a school district.
211.30 		Subd. 7.Other aids, grants, revenue. (a) The Crosswinds school is eligible to 
211.31 	receive other aids, grants, and revenue according to chapters 120A to 129C as though it 
211.32 	were a district.
211.33 	(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a 
211.34 	grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue 
211.35 	replaces levy revenue that is not general education revenue, except as otherwise provided 
211.36 	in this section.
212.1 	(c) Federal aid received by the state must be paid to the school if it qualifies for 
212.2 	the aid as though it were a school district.
212.3 	(d) In the year-end report to the commissioner of education, the Crosswinds school 
212.4 	shall report the total amount of funds received from grants and other outside sources.
212.5 		Subd. 8.Year-round programming. The Crosswinds school may operate as a 
212.6 	flexible learning year program under sections 124D.12 to 124D.127.
212.7 		Subd. 9.Data requirements. The commissioner of education shall require the 
212.8 	Crosswinds school to follow the budget and accounting procedures required for school 
212.9 	districts and the Crosswinds school shall report all data to the Department of Education in 
212.10 	the form and manner required by the commissioner.

212.11 	Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 5, is amended to read:
212.12 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
212.13 	access:

212.14		$
	3,750,000
	.....
	2014
	
212.15
212.16		$
	3,750,000
8,750,000
	.....
	2015
	
212.17 	If the appropriation amount is insufficient, the commissioner shall reduce the 
212.18 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
212.19 	revenue for fiscal years 2014 and 2015 shall be prorated.
212.20 	Any balance in the first year does not cancel but is available in the second year.
212.21 	 The base appropriation for this program for fiscal years 2016 and 2017 is $8,750,000 
212.22 	for each year.

212.23 	Sec. 18. HARAMBEE COMMUNITY SCHOOL TRANSITION.
 212.24 		Subdivision 1.Facilities. Notwithstanding the appropriations of state general 
212.25 	obligation bond proceeds in Laws 1994, chapter 643, section 14, subdivision 7, to Joint 
212.26 	Powers District No. 6067, East Metro Integration District, to acquire and better the 
212.27 	Harambee community school, in Maplewood, the real and personal property of the 
212.28 	Harambee school, may be conveyed to Independent School District No. 623, Roseville, 
212.29 	for operation of a multidistrict integration facility that serves students in any grade from 
212.30 	early education through grade 12.
212.31 		Subd. 2.Student enrollment. A student enrolled in the Harambee community 
212.32 	school during the 2013-2014 school year may continue to enroll in the Harambee 
212.33 	community school in any subsequent year. For the 2014-2015 school year and later, other 
212.34 	students may apply for enrollment under Minnesota Statutes, section 124D.03.
213.1 		Subd. 3.Compensatory revenue; literacy aid; alternative compensation 
213.2 	revenue. For the 2014-2015 school year only, the Department of Education must calculate 
213.3 	compensatory revenue, literacy aid, and alternative compensation revenue for the 
213.4 	Harambee community school based on the October 1, 2013, enrollment counts.
213.5 		Subd. 4.Year-round programming. Harambee community school may operate as 
213.6 	a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
213.7 		Subd. 5.Pupil transportation. The board may transport pupils enrolled in the 
213.8 	2013-2014 school year to and from the Harambee community school in succeeding school 
213.9 	years regardless of the students' districts of residence. Pupil transportation expenses under 
213.10 	this section are reimbursable under Minnesota Statutes, section 124D.87.

213.11 	Sec. 19. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
 213.12 		Subdivision 1.Transfer. Notwithstanding the appropriation of state general 
213.13 	obligation bond proceeds in Laws 1998, chapter 404, section 5, subdivision 5; Laws 1999, 
213.14 	chapter 240, article 1, section 3; Laws 2000, chapter 492, article 1, section 5, subdivision 
213.15 	2; Laws 2001, First Special Session chapter 12, section 2, subdivision 2; and Laws 
213.16 	2005, chapter 20, article 1, section 5, subdivision 3, to acquire and better the Crosswinds 
213.17 	school facilities by the Joint Powers District No. 6067, East Metro Integration District, 
213.18 	in Woodbury, the Crosswinds school may be conveyed to the Perpich Center for Arts 
213.19 	Education for use as an east metropolitan area integration magnet school.
213.20 		Subd. 2.Student enrollment. Any student enrolled in the Crosswinds school 
213.21 	during the 2013-2014 school year may continue to enroll in the Crosswinds school in 
213.22 	any subsequent year. For the 2014-2015 school year and later, a student may apply for 
213.23 	enrollment to the school under Minnesota Statutes, section 124D.03.
213.24 		Subd. 3.Compensatory revenue, literacy aid, and alternative compensation 
213.25 	revenue. For the 2014-2015 school year only, the Department of Education must calculate 
213.26 	compensatory revenue, literacy aid, and alternative compensation revenue for the 
213.27 	Crosswinds school based on the October 1, 2013, enrollment counts at that site.
213.28 		Subd. 4.Title 1 funding. To the extent possible, the Department of Education 
213.29 	must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding 
213.30 	as if the program were still operated by Joint Powers District No. 6067, East Metro 
213.31 	Integration District.

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

213.33 	Sec. 20. LEASE LEVY; TRANSPORTATION HUB FOR ROSEMOUNT-APPLE 
213.34 	VALLEY-EAGAN SCHOOL DISTRICT.
 214.1 	Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent 
214.2 	School District No. 196, Rosemount-Apple Valley-Eagan, may lease a transportation 
214.3 	hub under Minnesota Statutes, section 126C.40, subdivision 1. Levy authority under 
214.4 	this section shall not exceed the total levy authority under Minnesota Statutes, section 
214.5 	126C.40, subdivision 1, paragraph (e).

214.6 	EFFECTIVE DATE. This section is effective for taxes payable in 2015 and later.

214.7 	Sec. 21.  REPEALER.
 214.8 	Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.

214.9 	ARTICLE 21
214.10 	NUTRITION

214.11 	Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1, 
214.12 	is amended to read:
214.13 		Subdivision 1.School lunch aid computation. Each school year, the state must 
214.14 	pay participants in the national school lunch program the amount of 12.5 cents for each 
214.15 	full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price 
214.16 	lunch served to students.

214.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
214.18 	and later.

214.19 	Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a 
214.20 	subdivision to read:
214.21 		Subd. 4.No fees. A participant that receives school lunch aid under this section 
214.22 	must make lunch available without charge to all participating students who qualify for 
214.23 	free or reduced-price meals. The participant must also ensure that any reminders for 
214.24 	payment of outstanding student meal balances do not demean or stigmatize any child 
214.25 	participating in the school lunch program.

214.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
214.27 	and later.

214.28 	Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
214.29 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
214.30 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

215.1
215.2		$
	13,032,000
12,417,000
	.....
	2014
	
215.3
215.4		$
	13,293,000
16,185,000
	.....
	2015

215.5 	ARTICLE 22
215.6 	EARLY EDUCATION, COMMUNITY EDUCATION, SELF-SUFFICIENCY 
215.7 	AND LIFELONG LEARNING

215.8 	Section 1. Minnesota Statutes 2012, section 121A.19, is amended to read:
215.9 	121A.19 DEVELOPMENTAL SCREENING AID.
215.10 	Each school year, the state must pay a district for each child or student screened by 
215.11 	the district according to the requirements of section 121A.17. The amount of state aid 
215.12 	for each child or student screened shall be: (1) $75 $80 for a child screened at age three; 
215.13 	(2) $50 $55 for a child screened at age four; (3) $40 for a child screened at age five or 
215.14 	six prior to kindergarten; and (4) $30 for a student screened within 30 days after first 
215.15 	enrolling in a public school kindergarten if the student has not previously been screened 
215.16 	according to the requirements of section 121A.17. If this amount of aid is insufficient, 
215.17 	the district may permanently transfer from the general fund an amount that, when added 
215.18 	to the aid, is sufficient. Developmental screening aid shall not be paid for any student 
215.19 	who is screened more than 30 days after the first day of attendance at a public school 
215.20 	kindergarten, except if a student transfers to another public school kindergarten within 
215.21 	30 days after first enrolling in a Minnesota public school kindergarten program. In this 
215.22 	case, if the student has not been screened, the district to which the student transfers may 
215.23 	receive developmental screening aid for screening that student when the screening is 
215.24 	performed within 30 days of the transfer date.

215.25 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
215.26 	and later.

215.27 	Sec. 2. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
215.28 		Subd. 2.Amount of aid. (a) A district is eligible to receive school readiness aid 
215.29 	for eligible prekindergarten pupils enrolled in a school readiness program under section 
215.30 	124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been 
215.31 	approved by the commissioner.
215.32 	(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid 
215.33 	equal to:
216.1 	(1) the number of four-year-old children in the district on October 1 for the previous 
216.2 	school year times the ratio of 50 percent of the total school readiness aid for that year to 
216.3 	the total number of four-year-old children reported to the commissioner for the previous 
216.4 	school year; plus
216.5 	(2) the number of pupils enrolled in the school district from families eligible for the 
216.6 	free or reduced school lunch program for the previous school year times the ratio of 
216.7 	50 percent of the total school readiness aid for that year to the total number of pupils 
216.8 	in the state from families eligible for the free or reduced school lunch program for the 
216.9 	previous school year.
216.10 	(c) For fiscal year 2015 and later, total school readiness aid equals $12,000,000.

216.11 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
216.12 	and later.

216.13 	Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, is 
216.14 	amended to read:
216.15 		Subd. 5.Report required. The commissioner shall contract with an independent 
216.16 	contractor to evaluate the early learning scholarship program. The evaluation must 
216.17 	include recommendations regarding the appropriate scholarship amount, efficiency, and 
216.18 	effectiveness of the administration, and impact on kindergarten readiness. By January 
216.19 	15, 2016, the commissioner shall submit a written copy of the evaluation to the chairs 
216.20 	and ranking minority members of the legislative committees and divisions with primary 
216.21 	jurisdiction over kindergarten through grade 12 education.

216.22 	Sec. 4. Minnesota Statutes 2012, section 124D.522, is amended to read:
216.23 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
216.24 	GRANTS.
216.25 	(a) The commissioner, in consultation with the policy review task force under 
216.26 	section 124D.521, may make grants to nonprofit organizations to provide services that 
216.27 	are not offered by a district adult basic education program or that are supplemental to 
216.28 	either the statewide adult basic education program, or a district's adult basic education 
216.29 	program. The commissioner may make grants for: staff development for adult basic 
216.30 	education teachers and administrators; training for volunteer tutors; training, services, and 
216.31 	materials for serving disabled students through adult basic education programs; statewide 
216.32 	promotion of adult basic education services and programs; development and dissemination 
216.33 	of instructional and administrative technology for adult basic education programs; 
217.1 	programs which primarily serve communities of color; adult basic education distance 
217.2 	learning projects, including television instruction programs; and other supplemental 
217.3 	services to support the mission of adult basic education and innovative delivery of adult 
217.4 	basic education services.
217.5 	(b) The commissioner must establish eligibility criteria and grant application 
217.6 	procedures. Grants under this section must support services throughout the state, focus on 
217.7 	educational results for adult learners, and promote outcome-based achievement through 
217.8 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
217.9 	make grants under this section from the state total adult basic education aid set aside for 
217.10 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
217.11 	for supplemental service grants must be used for grants for adult basic education programs 
217.12 	to encourage and support innovations in adult basic education instruction and service 
217.13 	delivery. A grant to a single organization cannot exceed 20 40 percent of the total 
217.14 	supplemental services aid. Nothing in this section prevents an approved adult basic 
217.15 	education program from using state or federal aid to purchase supplemental services.

217.16 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is 
217.17 	amended to read:
217.18 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
217.19 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
217.20 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
217.21 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
217.22 	fiscal years equals:
217.23 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
217.24 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
217.25 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
217.26 	(2) the lesser of:
217.27 	(i) 1.025 1.03; or
217.28 	(ii) the average growth in state total contact hours over the prior ten program years.
217.29 	Beginning in fiscal year 2002, two Three percent of the state total adult basic 
217.30 	education aid must be set aside for adult basic education supplemental service grants 
217.31 	under section 124D.522.
217.32 	(b) The state total adult basic education aid, excluding basic population aid, equals 
217.33 	the difference between the amount computed in paragraph (a), and the state total basic 
217.34 	population aid under subdivision 2.

218.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
218.2 	and later.

218.3 	Sec. 6. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
218.4 		Subd. 3.Program revenue. Adult basic education programs established under 
218.5 	section 124D.52 and approved by the commissioner are eligible for revenue under this 
218.6 	subdivision. For fiscal year 2001 and later, adult basic education revenue for each 
218.7 	approved program equals the sum of:
218.8 	(1) the basic population aid under subdivision 2 for districts participating in the 
218.9 	program during the current program year; plus
218.10 	(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the 
218.11 	ratio of the contact hours for students participating in the program during the first prior 
218.12 	program year to the state total contact hours during the first prior program year; plus
218.13 	(3) eight percent times the amount computed in subdivision 1, paragraph (b), times 
218.14 	the ratio of the enrollment of English learners during the second prior school year in 
218.15 	districts participating in the program during the current program year to the state total 
218.16 	enrollment of English learners during the second prior school year in districts participating 
218.17 	in adult basic education programs during the current program year; plus
218.18 	(4) eight percent times the amount computed in subdivision 1, paragraph (b), times 
218.19 	the ratio of the latest federal census count of the number of adults aged 20 25 or older 
218.20 	with no diploma residing in the districts participating in the program during the current 
218.21 	program year to the latest federal census count of the state total number of adults aged 20
218.22 	 25 or older with no diploma residing in the districts participating in adult basic education 
218.23 	programs during the current program year.

218.24 	Sec. 7. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
218.25 		Subd. 2.School readiness. For revenue for school readiness programs under 
218.26 	Minnesota Statutes, sections 124D.15 and 124D.16:

218.27
218.28		$
	10,095,000
10,458,000
	.....
	2014
	
218.29
218.30		$
	10,159,000
11,809,000
	.....
	2015
	
218.31 	The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
218.32 	 for 2014.
218.33 	The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
218.34 	 $10,800,000 for 2015.

219.1 	Sec. 8. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
219.2 		Subd. 4.Health and developmental screening aid. For health and developmental 
219.3 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

219.4		$
	3,421,000
	.....
	2014
	
219.5
219.6		$
	3,344,000
3,569,000
	.....
	2015
	
219.7 	The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
219.8 	The 2015 appropriation includes $463,000 for 2014 and $2,881,000 $3,106,000
219.9 	 for 2015.

219.10 	Sec. 9. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
219.11 		Subd. 14.Adult basic education aid. For adult basic education aid under 
219.12 	Minnesota Statutes, section 124D.531:

219.13
219.14		$
	47,005,000
48,782,000
	.....
	2014
	
219.15
219.16		$
	48,145,000
48,415,000
	.....
	2015
	
219.17 	The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
219.18 	 for 2014.
219.19 	The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
219.20 	 $43,693,000 for 2015.

219.21 	Sec. 10. APPROPRIATIONS.
 219.22 		Subdivision 1.Department of Education. The sums indicated in this section are 
219.23 	appropriated from the general fund to the Department of Education for the fiscal years 
219.24 	designated.
219.25 		Subd. 2.Northside Achievement Zone. (a) For a grant to the Northside 
219.26 	Achievement Zone:

219.27		$
	1,132,000
	.....
	2015
	
219.28 	(b) Funds appropriated in this subdivision are to reduce multigenerational poverty 
219.29 	and the educational achievement gap through increased enrollment of families within 
219.30 	the zone, and may be used for Northside Achievement Zone programming and services 
219.31 	consistent with federal Promise Neighborhood program agreements and requirements.
219.32 	(c) The Northside Achievement Zone shall submit a report by October 1, 2015, to 
219.33 	the chairs of the legislative committees with jurisdiction over early childhood through 
220.1 	grade 12 education policy and finance that, at a minimum, summarizes program activities, 
220.2 	specifies performance measures, and analyzes program outcomes.
220.3 	(d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.
220.4 		Subd. 3.St. Paul Promise Neighborhood. (a) For a grant to the St. Paul Promise 
220.5 	Neighborhood:

220.6		$
	1,132,000
	.....
	2015
	
220.7 	(b) Funds appropriated in this subdivision are to reduce multigenerational poverty 
220.8 	and the educational achievement gap through increased enrollment of families within the 
220.9 	zone, and may be used for St. Paul Promise Neighborhood programming and services 
220.10 	consistent with federal Promise Neighborhood program agreements and requirements. 
220.11 	(c) The St. Paul Promise Neighborhood shall submit a report by October 1, 2015, to 
220.12 	the chairs of the legislative committees with jurisdiction over early childhood through 
220.13 	grade 12 education policy and finance that, at a minimum, summarizes program activities, 
220.14 	specifies performance measures, and analyzes program outcomes.
220.15 	(d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.

220.16 	ARTICLE 23
220.17 	STATE AGENCIES

220.18 	Section 1. Laws 2013, chapter 116, article 9, section 1, subdivision 2, is amended to read:
220.19 		Subd. 2.Department. (a) For the Department of Education:

220.20		$
	20,058,000
	.....
	2014
	
220.21
220.22		$
	19,308,000
 19,716,000
	.....
	2015
	
220.23 	Any balance in the first year does not cancel but is available in the second year.
220.24 	(b) $260,000 each year is for the Minnesota Children's Museum.
220.25 	(c) $41,000 each year is for the Minnesota Academy of Science.
220.26 	(d) $50,000 each year is for the Duluth Children's Museum.
220.27 	(e) $618,000 eachin fiscal year 2014 and $718,000 in fiscal year is2015 only are
220.28 	 for the Board of Teaching. Any balance in the first year does not cancel but is available 
220.29 	in the second year.
220.30 	(f) $167,000 eachin fiscal year 2014 and $225,000 in fiscal year is2015 are for 
220.31 	the Board of School Administrators. Any balance in the first year does not cancel but 
220.32 	is available in the second year.
220.33 	(g) $75,000 in fiscal year 2015 only is for The Works Museum.
221.1 	(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center 
221.2 	for hands-on science, technology, engineering, and math (STEM) education.
221.3 	(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263, 
221.4 	section 1.
221.5 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
221.6 	document and its supplements are approved and appropriated and shall be spent as 
221.7 	indicated.
221.8 	(h) (k) None of the amounts appropriated under this subdivision may be used for 
221.9 	Minnesota's Washington, D.C. office.
221.10 	(i) (l) $250,000 each year is for the School Finance Division to enhance financial 
221.11 	data analysis.
221.12 	(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with 
221.13 	teacher development and evaluation. Any balance in the first year does not cancel and 
221.14 	is available in the second year.

221.15 	Sec. 2. Laws 2013, chapter 116, article 9, section 2, is amended to read:
221.16 	Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 221.17 	The sums indicated in this section are appropriated from the general fund to the 
221.18 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

221.19		$
	11,749,000
	.....
	2014
	
221.20
221.21		$
	11,664,000
11,964,000
	.....
	2015
	
221.22 	$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 
221.23 	kitchen facilities. Any balance in the first year does not cancel but is available in the 
221.24 	second year.

221.25 	Sec. 3. APPROPRIATION; RESPONSES TO HEALTH INSURANCE 
221.26 	TRANSPARENCY ACT BID REQUESTS.
 221.27 	(a) $294,000 is appropriated for fiscal year 2015 from the general fund to the 
221.28 	commissioner of management and budget to comply with the requirements relating to 
221.29 	health insurance transparency similar to those proposed in House File 2180, if enacted in 
221.30 	the 2014 regular legislative session. This is a onetime appropriation.
221.31 	(b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner 
221.32 	of management and budget shall report by January 15, 2015, to the legislative chairs 
221.33 	and ranking minority members with jurisdiction over state government finance on the 
221.34 	ongoing costs incurred by the public employees insurance program in compliance with 
222.1 	the requirements of the health insurance transparency act and may request additional 
222.2 	appropriations, if necessary.

222.3 	ARTICLE 24
222.4 	FORECAST ADJUSTMENTS
222.5 	A. GENERAL EDUCATION

222.6 	Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to 
222.7 	read:
222.8 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
222.9 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
222.10 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

222.11
222.12		$
	44,000
37,000
	.....
	2014
	
222.13
222.14		$
	48,000
40,000
	.....
	2015

222.15 	Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
222.16 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
222.17 	127A.49:

222.18
222.19		$
	2,747,000
2,876,000
	.....
	2014
	
222.20
222.21		$
	3,136,000
3,103,000
	.....
	2015
	
222.22 	The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
222.23 	 for 2014.
222.24 	The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
222.25 	 $2,817,000 for 2015.

222.26 	Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
222.27 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
222.28 	Statutes, section 123A.485:

222.29
222.30		$
	472,000
585,000
	.....
	2014
	
222.31
222.32		$
	480,000
254,000
	.....
	2015
	
222.33 	The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
223.1 	The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
223.2 	 for 2015.

223.3 	Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
223.4 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
223.5 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

223.6
223.7		$
	15,582,000
16,068,000
	.....
	2014
	
223.8
223.9		$
	16,169,000
16,074,000
	.....
	2015
	
223.10 	The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
223.11 	 for 2014.
223.12 	The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
223.13 	 $14,522,000 for 2015.

223.14 	Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
223.15 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
223.16 	under Minnesota Statutes, section 123B.92, subdivision 9:

223.17
223.18		$
	18,565,000
18,566,000
	.....
	2014
	
223.19
223.20		$
	18,946,000
17,646,000
	.....
	2015
	
223.21 	The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
223.22 	 for 2014.
223.23 	The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
223.24 	 $15,880,000 for 2015.

223.25 	Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
223.26 		Subd. 11.Career and technical aid. For career and technical aid under Minnesota 
223.27 	Statutes, section 124D.4531, subdivision 1b:

223.28
223.29		$
	4,320,000
3,959,000
	.....
	2014
	
223.30
223.31		$
	5,680,000
5,172,000
	.....
	2015
	
223.32 	The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
223.33 	The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
223.34 	 $4,733,000 for 2015.
223.35 	B. EDUCATION EXCELLENCE

224.1 	Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
224.2 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
224.3 	under Minnesota Statutes, section 124D.862:

224.4
224.5		$
	58,911,000
55,609,000
	.....
	2014
	
224.6
224.7		$
	68,623,000
62,692,000
	.....
	2015
	
224.8 	The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
224.9 	The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
224.10 	 $56,514,000 for 2015.

224.11 	Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
224.12 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
224.13 	Statutes, section 124D.98:

224.14
224.15		$
	52,514,000
50,998,000
	.....
	2014
	
224.16
224.17		$
	53,818,000
47,458,000
	.....
	2015
	
224.18 	The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
224.19 	 for 2014.
224.20 	The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
224.21 	 $42,526,000 for 2015.

224.22 	Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
224.23 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
224.24 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
224.25 	section 124D.87:

224.26
224.27		$
	13,968,000
13,521,000
	.....
	2014
	
224.28
224.29		$
	14,712,000
14,248,000
	.....
	2015

224.30 	Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
224.31 		Subd. 6.Success for the future. For American Indian success for the future grants 
224.32 	under Minnesota Statutes, section 124D.81:

224.33
224.34		$
	2,137,000
2,214,000
	.....
	2014
	
224.35		$
	2,137,000
	.....
	2015
	
225.1 	The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
225.2 	 for 2014.
225.3 	The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
225.4 	 $1,924,000 for 2015.

225.5 	Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
225.6 		Subd. 8.Tribal contract schools. For tribal contract school aid under Minnesota 
225.7 	Statutes, section 124D.83:

225.8
225.9		$
	2,080,000
2,144,000
	.....
	2014
	
225.10
225.11		$
	2,230,000
2,152,000
	.....
	2015
	
225.12 	The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
225.13 	 for 2014.
225.14 	The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
225.15 	 $1,944,000 for 2015.

225.16 	Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to 
225.17 	read:
225.18 		Subd. 20.Alternative compensation. For alternative teacher compensation aid 
225.19 	under Minnesota Statutes, section 122A.415, subdivision 4:

225.20
225.21		$
	60,340,000
71,599,000
	.....
	2015
	
225.22 	The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.
225.23 	C. CHARTER SCHOOLS

225.24 	Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
225.25 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
225.26 	Statutes, section 124D.11, subdivision 4: 

225.27
225.28		$
	54,484,000
54,763,000
	.....
	2014
	
225.29
225.30		$
	59,533,000
58,294,000
	.....
	2015
	
225.31 	The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
225.32 	 for 2014.
225.33 	The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
225.34 	 $52,967,000 for 2015.
226.1 	D. SPECIAL PROGRAMS

226.2 	Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
226.3 		Subd. 2.Special education; regular. For special education aid under Minnesota 
226.4 	Statutes, section 125A.75:

226.5
226.6		$
	997,725,000
1,038,514,000
	.....
	2014
	
226.7
226.8		$
	1,108,211,000
1,111,641,000
	.....
	2015
	
226.9 	The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
226.10 	 $920,282,000 for 2014.
226.11 	The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and 
226.12 	$938,282,000 $982,092,000 for 2015.

226.13 	Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
226.14 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
226.15 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
226.16 	within the district boundaries for whom no district of residence can be determined:

226.17
226.18		$
	1,655,000
1,548,000
	.....
	2014
	
226.19
226.20		$
	1,752,000
1,674,000
	.....
	2015
	
226.21 	If the appropriation for either year is insufficient, the appropriation for the other 
226.22 	year is available.

226.23 	Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
226.24 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
226.25 	services under Minnesota Statutes, section 125A.75, subdivision 1:

226.26
226.27		$
	345,000
351,000
	.....
	2014
	
226.28
226.29		$
	355,000
346,000
	.....
	2015
	
226.30 	The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
226.31 	The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
226.32 	 for 2015.
226.33 	E. FACILITIES AND TECHNOLOGY

226.34 	Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
227.1 		Subd. 2.Health and safety revenue. For health and safety aid according to 
227.2 	Minnesota Statutes, section 123B.57, subdivision 5:

227.3
227.4		$
	463,000
473,000
	.....
	2014
	
227.5
227.6		$
	434,000
651,000
	.....
	2015
	
227.7 	The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
227.8 	The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
227.9 	 for 2015.

227.10 	Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
227.11 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
227.12 	Statutes, section 123B.53, subdivision 6:

227.13
227.14		$
	19,083,000
19,778,000
	.....
	2014
	
227.15
227.16		$
	25,060,000
22,591,000
	.....
	2015
	
227.17 	The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
227.18 	 for 2014.
227.19 	The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
227.20 	 $20,660,000 for 2015.

227.21 	Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
227.22 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
227.23 	according to Minnesota Statutes, section 123B.59, subdivision 1:

227.24
227.25		$
	19,287,000
19,982,000
	.....
	2014
	
227.26		$
	19,287,000
	.....
	2015
	
227.27 	The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
227.28 	 for 2014.
227.29 	The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
227.30 	 $17,359,000 for 2015.

227.31 	Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
227.32 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
227.33 	Minnesota Statutes, section 123B.591, subdivision 4:

228.1
228.2		$
	3,564,000
3,858,000
	.....
	2014
	
228.3
228.4		$
	3,730,000
4,024,000
	.....
	2015
	
228.5 	The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
228.6 	 for 2014.
228.7 	The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
228.8 	 $3,646,000 for 2015.
228.9 	F. NUTRITION AND LIBRARIES

228.10 	Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
228.11 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
228.12 	Statutes, section 124D.1158:

228.13
228.14		$
	5,711,000
5,308,000
	.....
	2014
	
228.15
228.16		$
	6,022,000
5,607,000
	.....
	2015

228.17 	Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
228.18 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
228.19 	section 124D.118:

228.20
228.21		$
	1,039,000
992,000
	.....
	2014
	
228.22
228.23		$
	1,049,000
1,002,000
	.....
	2015

228.24 	Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
228.25 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
228.26 	Statutes, section 134.355:

228.27
228.28		$
	13,570,000
14,058,000
	.....
	2014
	
228.29
228.30		$
	13,570,000
13,570,000
	.....
	2015
	
228.31 	The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
228.32 	 for 2014.
228.33 	The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
228.34 	 $12,213,000 for 2015.

229.1 	Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
229.2 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
229.3 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

229.4
229.5		$
	1,300,000
1,346,000
	.....
	2014
	
229.6		$
	1,300,000
	.....
	2015
	
229.7 	The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
229.8 	 for 2014.
229.9 	The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
229.10 	 $1,170,000 for 2015.

229.11 	Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
229.12 		Subd. 9.Regional library telecommunications aid. For regional library 
229.13 	telecommunications aid under Minnesota Statutes, section 134.355:

229.14
229.15		$
	2,300,000
2,382,000
	.....
	2014
	
229.16		$
	2,300,000
	.....
	2015
	
229.17 	The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
229.18 	 for 2014.
229.19 	The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
229.20 	 $2,070,000 for 2015.
229.21 	G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 
229.22 	AND LIFELONG LEARNING

229.23 	Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
229.24 		Subd. 3.Early childhood family education aid. For early childhood family 
229.25 	education aid under Minnesota Statutes, section 124D.135:

229.26
229.27		$
	22,078,000
22,797,000
	.....
	2014
	
229.28
229.29		$
	22,425,000
22,001,000
	.....
	2015
	
229.30 	The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
229.31 	 for 2014.
229.32 	The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
229.33 	 $19,803,000 for 2015.

229.34 	Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
230.1 		Subd. 10.Community education aid. For community education aid under 
230.2 	Minnesota Statutes, section 124D.20:

230.3
230.4		$
	935,000
955,000
	.....
	2014
	
230.5
230.6		$
	1,056,000
1,060,000
	.....
	2015
	
230.7 	The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
230.8 	The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
230.9 	 for 2015.

230.10 	Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
230.11 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
230.12 	programs under Minnesota Statutes, section 124D.56:

230.13
230.14		$
	710,000
735,000
	.....
	2014
	
230.15		$
	710,000
	.....
	2015
	
230.16 	The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
230.17 	The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
230.18 	 for 2015.
230.19 	HEALTH AND HUMAN SERVICES

230.20 	ARTICLE 25
230.21 	HEALTH DEPARTMENT

230.22 	Section 1. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
230.23 		Subdivision 1.Restricted construction or modification. (a) The following 
230.24 	construction or modification may not be commenced:
230.25 	(1) any erection, building, alteration, reconstruction, modernization, improvement, 
230.26 	extension, lease, or other acquisition by or on behalf of a hospital that increases the bed 
230.27 	capacity of a hospital, relocates hospital beds from one physical facility, complex, or site 
230.28 	to another, or otherwise results in an increase or redistribution of hospital beds within 
230.29 	the state; and
230.30 	(2) the establishment of a new hospital.
230.31 	(b) This section does not apply to:
230.32 	(1) construction or relocation within a county by a hospital, clinic, or other health 
230.33 	care facility that is a national referral center engaged in substantial programs of patient 
231.1 	care, medical research, and medical education meeting state and national needs that 
231.2 	receives more than 40 percent of its patients from outside the state of Minnesota;
231.3 	(2) a project for construction or modification for which a health care facility held 
231.4 	an approved certificate of need on May 1, 1984, regardless of the date of expiration of 
231.5 	the certificate;
231.6 	(3) a project for which a certificate of need was denied before July 1, 1990, if a 
231.7 	timely appeal results in an order reversing the denial;
231.8 	(4) a project exempted from certificate of need requirements by Laws 1981, chapter 
231.9 	200, section 2;
231.10 	(5) a project involving consolidation of pediatric specialty hospital services within 
231.11 	the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the 
231.12 	number of pediatric specialty hospital beds among the hospitals being consolidated;
231.13 	(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds 
231.14 	to an existing licensed hospital that will allow for the reconstruction of a new philanthropic, 
231.15 	pediatric-orthopedic hospital on an existing site and that will not result in a net increase in 
231.16 	the number of hospital beds. Upon completion of the reconstruction, the licenses of both 
231.17 	hospitals must be reinstated at the capacity that existed on each site before the relocation;
231.18 	(7) the relocation or redistribution of hospital beds within a hospital building or 
231.19 	identifiable complex of buildings provided the relocation or redistribution does not result 
231.20 	in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds 
231.21 	from one physical site or complex to another; or (iii) redistribution of hospital beds within 
231.22 	the state or a region of the state;
231.23 	(8) relocation or redistribution of hospital beds within a hospital corporate system 
231.24 	that involves the transfer of beds from a closed facility site or complex to an existing site 
231.25 	or complex provided that: (i) no more than 50 percent of the capacity of the closed facility 
231.26 	is transferred; (ii) the capacity of the site or complex to which the beds are transferred 
231.27 	does not increase by more than 50 percent; (iii) the beds are not transferred outside of a 
231.28 	federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or 
231.29 	redistribution does not involve the construction of a new hospital building;
231.30 	(9) a construction project involving up to 35 new beds in a psychiatric hospital in 
231.31 	Rice County that primarily serves adolescents and that receives more than 70 percent of its 
231.32 	patients from outside the state of Minnesota;
231.33 	(10) a project to replace a hospital or hospitals with a combined licensed capacity 
231.34 	of 130 beds or less if: (i) the new hospital site is located within five miles of the current 
231.35 	site; and (ii) the total licensed capacity of the replacement hospital, either at the time of 
232.1 	construction of the initial building or as the result of future expansion, will not exceed 70 
232.2 	licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
232.3 	(11) the relocation of licensed hospital beds from an existing state facility operated 
232.4 	by the commissioner of human services to a new or existing facility, building, or complex 
232.5 	operated by the commissioner of human services; from one regional treatment center 
232.6 	site to another; or from one building or site to a new or existing building or site on the 
232.7 	same campus;
232.8 	(12) the construction or relocation of hospital beds operated by a hospital having a 
232.9 	statutory obligation to provide hospital and medical services for the indigent that does not 
232.10 	result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27 
232.11 	beds, of which 12 serve mental health needs, may be transferred from Hennepin County 
232.12 	Medical Center to Regions Hospital under this clause;
232.13 	(13) a construction project involving the addition of up to 31 new beds in an existing 
232.14 	nonfederal hospital in Beltrami County;
232.15 	(14) a construction project involving the addition of up to eight new beds in an 
232.16 	existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
232.17 	(15) a construction project involving the addition of 20 new hospital beds 
232.18 	used for rehabilitation services in an existing hospital in Carver County serving the 
232.19 	southwest suburban metropolitan area. Beds constructed under this clause shall not be 
232.20 	eligible for reimbursement under medical assistance, general assistance medical care, 
232.21 	or MinnesotaCare;
232.22 	(16) a project for the construction or relocation of up to 20 hospital beds for the 
232.23 	operation of up to two psychiatric facilities or units for children provided that the operation 
232.24 	of the facilities or units have received the approval of the commissioner of human services;
232.25 	(17) a project involving the addition of 14 new hospital beds to be used for 
232.26 	rehabilitation services in an existing hospital in Itasca County;
232.27 	(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin 
232.28 	County that closed 20 rehabilitation beds in 2002, provided that the beds are used only 
232.29 	for rehabilitation in the hospital's current rehabilitation building. If the beds are used for 
232.30 	another purpose or moved to another location, the hospital's licensed capacity is reduced 
232.31 	by 20 beds;
232.32 	(19) a critical access hospital established under section 144.1483, clause (9), and 
232.33 	section 1820 of the federal Social Security Act, United States Code, title 42, section 
232.34 	1395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public 
232.35 	Law 105-33, to the extent that the critical access hospital does not seek to exceed the 
232.36 	maximum number of beds permitted such hospital under federal law;
233.1 	(20) notwithstanding section 144.552, a project for the construction of a new hospital 
233.2 	in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
233.3 	(i) the project, including each hospital or health system that will own or control the 
233.4 	entity that will hold the new hospital license, is approved by a resolution of the Maple 
233.5 	Grove City Council as of March 1, 2006;
233.6 	(ii) the entity that will hold the new hospital license will be owned or controlled by 
233.7 	one or more not-for-profit hospitals or health systems that have previously submitted a 
233.8 	plan or plans for a project in Maple Grove as required under section 144.552, and the 
233.9 	plan or plans have been found to be in the public interest by the commissioner of health 
233.10 	as of April 1, 2005;
233.11 	(iii) the new hospital's initial inpatient services must include, but are not limited 
233.12 	to, medical and surgical services, obstetrical and gynecological services, intensive 
233.13 	care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics, 
233.14 	behavioral health services, and emergency room services;
233.15 	(iv) the new hospital:
233.16 	(A) will have the ability to provide and staff sufficient new beds to meet the growing 
233.17 	needs of the Maple Grove service area and the surrounding communities currently being 
233.18 	served by the hospital or health system that will own or control the entity that will hold 
233.19 	the new hospital license;
233.20 	(B) will provide uncompensated care;
233.21 	(C) will provide mental health services, including inpatient beds;
233.22 	(D) will be a site for workforce development for a broad spectrum of 
233.23 	health-care-related occupations and have a commitment to providing clinical training 
233.24 	programs for physicians and other health care providers;
233.25 	(E) will demonstrate a commitment to quality care and patient safety;
233.26 	(F) will have an electronic medical records system, including physician order entry;
233.27 	(G) will provide a broad range of senior services;
233.28 	(H) will provide emergency medical services that will coordinate care with regional 
233.29 	providers of trauma services and licensed emergency ambulance services in order to 
233.30 	enhance the continuity of care for emergency medical patients; and
233.31 	(I) will be completed by December 31, 2009, unless delayed by circumstances 
233.32 	beyond the control of the entity holding the new hospital license; and
233.33 	(v) as of 30 days following submission of a written plan, the commissioner of health 
233.34 	has not determined that the hospitals or health systems that will own or control the entity 
233.35 	that will hold the new hospital license are unable to meet the criteria of this clause;
233.36 	(21) a project approved under section 144.553;
234.1 	(22) a project for the construction of a hospital with up to 25 beds in Cass County 
234.2 	within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's 
234.3 	license holder is approved by the Cass County Board;
234.4 	(23) a project for an acute care hospital in Fergus Falls that will increase the bed 
234.5 	capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16 
234.6 	and closing a separately licensed 13-bed skilled nursing facility; or
234.7 	(24) notwithstanding section 144.552, a project for the construction and expansion 
234.8 	of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for 
234.9 	patients who are under 21 years of age on the date of admission. The commissioner 
234.10 	conducted a public interest review of the mental health needs of Minnesota and the Twin 
234.11 	Cities metropolitan area in 2008. No further public interest review shall be conducted for 
234.12 	the construction or expansion project under this clause; or
234.13 	(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if 
234.14 	the commissioner finds the project is in the public interest after the public interest review 
234.15 	conducted under section 144.552 is complete.

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

234.17 	Sec. 2. [144.9513] HEALTHY HOUSING GRANTS.
234.18 		Subdivision 1.Definitions. For purposes of this section and sections 144.9501 to 
234.19 	144.9512, the following terms have the meanings given.
234.20 	(a) "Housing" means a room or group of rooms located within a dwelling forming 
234.21 	a single habitable unit with facilities used or intended to be used for living, sleeping, 
234.22 	cooking, and eating.
234.23 	(b) "Healthy housing" means housing that is sited, designed, built, renovated, and 
234.24 	maintained in ways that supports the health of residents.
234.25 	(c) "Housing-based health threat" means a chemical, biologic, or physical agent in 
234.26 	the immediate housing environment which constitutes a potential or actual hazard to 
234.27 	human health at acute or chronic exposure levels.
234.28 	(d) "Primary prevention" means preventing exposure to housing-based health threats 
234.29 	before seeing clinical symptoms or a diagnosis.
234.30 		Subd. 2.Grants; administration. Grant applicants shall submit applications to 
234.31 	the commissioner as directed by a request for proposals. Grants must be competitively 
234.32 	awarded and recipients of a grant under this section must prepare and submit a quarterly 
234.33 	progress report to the commissioner beginning three months after receipt of the grant. The 
234.34 	commissioner shall provide technical assistance and program support as needed to ensure 
235.1 	that housing-based health threats are effectively identified, mitigated, and evaluated by 
235.2 	grantees.
235.3 		Subd. 3.Education and training grant; eligible activities. (a) Within the limits of 
235.4 	available appropriations, the commissioner shall make grants to nonprofit organizations, 
235.5 	community health boards, and community action agencies under section 256E.31 with 
235.6 	expertise in providing outreach, education, and training on healthy homes subjects and in 
235.7 	providing comprehensive healthy homes assessments and interventions to provide healthy 
235.8 	housing education, training, and technical assistance services for persons engaged in 
235.9 	addressing housing-based health threats and other individuals impacted by housing-based 
235.10 	health threats. 
235.11 	(b) The grantee may conduct the following activities: 
235.12 	(1) implement and maintain primary prevention programs to reduce housing-based 
235.13 	health threats that include the following:
235.14 	(i) providing education materials to the general public and to property owners, 
235.15 	contractors, code officials, health care providers, public health professionals, health 
235.16 	educators, nonprofit organizations, and other persons and organizations engaged in 
235.17 	housing and health issues; 
235.18 	(ii) promoting awareness of community, legal, and housing resources; and 
235.19 	(iii) promoting the use of hazard reduction measures in new housing construction 
235.20 	and housing rehabilitation programs;
235.21 	(2) provide training on identifying and addressing housing-based health threats;  
235.22 	(3) provide technical assistance on the implementation of mitigation measures;
235.23 	(4) promote adoption of evidence-based best practices for mitigation of 
235.24 	housing-based health threats; or 
235.25 	(5) develop work practices for addressing specific housing-based health threats.

235.26 	Sec. 3. [144A.484] INTEGRATED LICENSURE; HOME AND 
235.27 	COMMUNITY-BASED SERVICES DESIGNATION.
235.28 		Subdivision 1.Integrated licensing established. (a) From January 1, 2014, to June 
235.29 	30, 2015, the commissioner of health shall enforce the home and community-based services 
235.30 	standards under chapter 245D for those providers who also have a home care license 
235.31 	pursuant to chapter 144A as required under Laws 2013, chapter 108, article 11, section 31, 
235.32 	and article 8, section 60. During this period, the commissioner shall provide technical 
235.33 	assistance on how to achieve and maintain compliance with applicable law or rules 
235.34 	governing the provision of home and community-based services, including complying with 
235.35 	the service recipient rights notice in subdivision 4, clause (4). If, during the survey, the 
236.1 	commissioner finds that the licensee has failed to achieve compliance with an applicable 
236.2 	law or rule under chapter 245D and this failure does not imminently endanger the health, 
236.3 	safety, or rights of the persons served by the program, the commissioner may issue a 
236.4 	licensing survey report with recommendations for achieving and maintaining compliance.
236.5 	(b) Beginning July 1, 2015, a home care provider applicant or license holder may 
236.6 	apply to the commissioner of health for a home and community-based services designation 
236.7 	for the provision of basic home and community-based services identified under section 
236.8 	245D.03, subdivision 1, paragraph (b). The designation allows the license holder to 
236.9 	provide basic home and community-based services that would otherwise require licensure 
236.10 	under chapter 245D, under the license holder's home care license governed by sections 
236.11 	144A.43 to 144A.481.
236.12 		Subd. 2.Application for home and community-based services designation. An 
236.13 	application for a home and community-based services designation must be made on the 
236.14 	forms and in the manner prescribed by the commissioner. The commissioner shall provide 
236.15 	the applicant with instruction for completing the application and provide information 
236.16 	about the requirements of other state agencies that affect the applicant. Application for 
236.17 	the home and community-based services designation is subject to the requirements under 
236.18 	section 144A.473.
236.19 		Subd. 3.Home and community-based services designation fees. A home care 
236.20 	provider applicant or licensee applying for the home and community-based services 
236.21 	designation or renewal of a home and community-based services designation must submit 
236.22 	a fee in the amount specified in subdivision 8.
236.23 		Subd. 4.Applicability of home and community-based services requirements. A 
236.24 	home care provider with a home and community-based services designation must comply 
236.25 	with the requirements for home care services governed by this chapter. For the provision 
236.26 	of basic home and community-based services, the home care provider must also comply 
236.27 	with the following home and community-based services licensing requirements:
236.28 	(1) person-centered planning requirements in section 245D.07;
236.29 	(2) protection standards in section 245D.06;
236.30 	(3) emergency use of manual restraints in section 245D.061; and
236.31 	(4) service recipient rights in section 245D.04, subdivision 3, paragraph (a), clauses 
236.32 	(5), (7), (8), (12), and (13), and paragraph (b).
236.33 	A home care provider with the integrated license-HCBS designation may utilize a bill of 
236.34 	rights which incorporates the service recipient rights in section 245D.04, subdivision 3, 
236.35 	paragraph (a), clauses (5), (7), (8), (12), and (13), and paragraph (b) with the home care 
236.36 	bill of rights in section 144A.44.
237.1 		Subd. 5.Monitoring and enforcement. (a) The commissioner shall monitor for 
237.2 	compliance with the home and community-based services requirements identified in 
237.3 	subdivision 5, in accordance with this section and any agreements by the commissioners 
237.4 	of health and human services.
237.5 	(b) The commissioner shall enforce compliance with applicable home and 
237.6 	community-based services licensing requirements as follows:
237.7 	(1) the commissioner may deny a home and community-based services designation 
237.8 	in accordance with section 144A.473 or 144A.475; and
237.9 	(2) if the commissioner finds that the applicant or license holder has failed to comply 
237.10 	with the applicable home and community-based services designation requirements the 
237.11 	commissioner may issue:
237.12 	(i) a correction order in accordance with section 144A.474;
237.13 	(ii) an order of conditional license in accordance with section 144A.475;
237.14 	(iii) a sanction in accordance with section 144A.475; or
237.15 	(iv) any combination of clauses (i) to (iii).
237.16 		Subd. 6.Appeals. A home care provider applicant that has been denied a temporary 
237.17 	license will also be denied their application for the home and community-based services 
237.18 	designation. The applicant may request reconsideration in accordance with section 
237.19 	144A.473, subdivision 3. A licensed home care provider whose application for a home 
237.20 	and community-based services designation has been denied or whose designation has been 
237.21 	suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a 
237.22 	home and community-based services designation in accordance with section 144A.475. 
237.23 	A license holder may request reconsideration of a correction order in accordance with 
237.24 	section 144A.474, subdivision 12.
237.25 		Subd. 7.Agreements. The commissioners of health and human services shall enter 
237.26 	into any agreements necessary to implement this section.
237.27 		Subd. 8.Fees; home and community-based services designation. (a) The initial 
237.28 	fee for a basic home and community-based services designation is $155. A home care 
237.29 	provider who is seeking to renew the provider's home and community-based services 
237.30 	designation must pay an annual nonrefundable fee with the annual home care license 
237.31 	fee according to the following schedule and based on revenues from the home and 
237.32 	community-based services:

237.33
237.34	Provider Annual Revenue from HCBS
	HCBS 
Designation

237.35	greater than $1,500,000
	$320
	
237.36	greater than $1,275,000 and no more than $1,500,000
	$300
	
238.1	greater than $1,100,000 and no more than $1,275,000
	$280
	
238.2	greater than $950,000 and no more than $1,100,000
	$260
	
238.3	greater than $850,000 and no more than $950,000
	$240
	
238.4	greater than $750,000 and no more than $850,000
	$220
	
238.5	greater than $650,000 and no more than $750,000
	$200
	
238.6	greater than $550,000 and no more than $650,000
	$180
	
238.7	greater than $450,000 and no more than $550,000
	$160
	
238.8	greater than $350,000 and no more than $450,000
	$140
	
238.9	greater than $250,000 and no more than $350,000
	$120
	
238.10	greater than $100,000 and no more than $250,000
	$100
	
238.11	greater than $50,000 and no more than $100,000
	$80
	
238.12	greater than $25,000 and no more than $50,000
	$60
	
238.13	no more than $25,000
	$40
	
238.14 	(b) Fees and penalties collected under this section shall be deposited in the state 
238.15 	treasury and credited to the state government special revenue fund.
238.16 		Subd. 9.Study and report about client bill of rights. The commissioner shall 
238.17 	consult with Aging Services of Minnesota, Care Providers of Minnesota, Minnesota Home 
238.18 	Care Association, Department of Human Services, the Ombudsman for Long-Term Care, 
238.19 	and other stakeholders to review how to streamline the client bill of rights requirements 
238.20 	in sections 144A.44, 144A.441, and 245D.04 for providers whose practices fit into one 
238.21 	or several of these practice areas, while assuring and maintaining the health and safety 
238.22 	of clients. The evaluation shall consider the federal client bill of rights requirements for 
238.23 	Medicare-certified home care providers. The evaluation must determine whether there 
238.24 	are duplications or conflicts of client rights, evaluate how to reduce the complexity of the 
238.25 	client bill of rights requirements for providers and consumers, determine which of the 
238.26 	rights must be included in a client bill of rights document, and evaluate whether there are 
238.27 	other ways to ensure that consumers know their rights. The commissioner shall report to 
238.28 	the chairs of the health and human services committees of the legislature no later than 
238.29 	February 15, 2015, along with any recommendations for legislative changes.

238.30 	EFFECTIVE DATE. Minnesota Statutes, section 144A.484, subdivisions 2 to 8, 
238.31 	are effective July 1, 2015.

238.32 	Sec. 4. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is 
238.33 	amended to read:
238.34 		Subd. 2.Duties of director. The director of child sex trafficking prevention is 
238.35 	responsible for the following:
239.1 	(1) developing and providing comprehensive training on sexual exploitation of 
239.2 	youth for social service professionals, medical professionals, public health workers, and 
239.3 	criminal justice professionals;
239.4 	(2) collecting, organizing, maintaining, and disseminating information on sexual 
239.5 	exploitation and services across the state, including maintaining a list of resources on the 
239.6 	Department of Health Web site;
239.7 	(3) monitoring and applying for federal funding for antitrafficking efforts that may 
239.8 	benefit victims in the state;
239.9 	(4) managing grant programs established under sections 145.4716 to 145.4718;
239.10 	(5) managing the request for proposals for grants for comprehensive services, 
239.11 	including trauma-informed, culturally specific services;
239.12 	(6) identifying best practices in serving sexually exploited youth, as defined in 
239.13 	section 260C.007, subdivision 31;
239.14 	(6)(7) providing oversight of and technical support to regional navigators pursuant 
239.15 	to section 145.4717;
239.16 	(7)(8) conducting a comprehensive evaluation of the statewide program for safe 
239.17 	harbor of sexually exploited youth; and
239.18 	(8)(9) developing a policy consistent with the requirements of chapter 13 for sharing 
239.19 	data related to sexually exploited youth, as defined in section 260C.007, subdivision 31, 
239.20 	among regional navigators and community-based advocates.

239.21 	Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is 
239.22 	amended to read:
239.23 		Subd. 21.Provider enrollment. (a) If the commissioner or the Centers for 
239.24 	Medicare and Medicaid Services determines that a provider is designated "high-risk," the 
239.25 	commissioner may withhold payment from providers within that category upon initial 
239.26 	enrollment for a 90-day period. The withholding for each provider must begin on the date 
239.27 	of the first submission of a claim.
239.28 	(b) An enrolled provider that is also licensed by the commissioner under chapter 
239.29 	245A or that is licensed by the Department of Health under chapter 144A and has a 
239.30 	HCBS designation on the home care license must designate an individual as the entity's 
239.31 	compliance officer. The compliance officer must:
239.32 	(1) develop policies and procedures to assure adherence to medical assistance laws 
239.33 	and regulations and to prevent inappropriate claims submissions;
239.34 	(2) train the employees of the provider entity, and any agents or subcontractors of 
239.35 	the provider entity including billers, on the policies and procedures under clause (1);
240.1 	(3) respond to allegations of improper conduct related to the provision or billing of 
240.2 	medical assistance services, and implement action to remediate any resulting problems;
240.3 	(4) use evaluation techniques to monitor compliance with medical assistance laws 
240.4 	and regulations;
240.5 	(5) promptly report to the commissioner any identified violations of medical 
240.6 	assistance laws or regulations; and
240.7 	(6) within 60 days of discovery by the provider of a medical assistance 
240.8 	reimbursement overpayment, report the overpayment to the commissioner and make 
240.9 	arrangements with the commissioner for the commissioner's recovery of the overpayment.
240.10 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
240.11 	provider within a particular industry sector or category establish a compliance program that 
240.12 	contains the core elements established by the Centers for Medicare and Medicaid Services.
240.13 	(c) The commissioner may revoke the enrollment of an ordering or rendering 
240.14 	provider for a period of not more than one year, if the provider fails to maintain and, upon 
240.15 	request from the commissioner, provide access to documentation relating to written orders 
240.16 	or requests for payment for durable medical equipment, certifications for home health 
240.17 	services, or referrals for other items or services written or ordered by such provider, when 
240.18 	the commissioner has identified a pattern of a lack of documentation. A pattern means a 
240.19 	failure to maintain documentation or provide access to documentation on more than one 
240.20 	occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a 
240.21 	provider under the provisions of section 256B.064.
240.22 	(d) The commissioner shall terminate or deny the enrollment of any individual or 
240.23 	entity if the individual or entity has been terminated from participation in Medicare or 
240.24 	under the Medicaid program or Children's Health Insurance Program of any other state.
240.25 	(e) As a condition of enrollment in medical assistance, the commissioner shall 
240.26 	require that a provider designated "moderate" or "high-risk" by the Centers for Medicare 
240.27 	and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
240.28 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
240.29 	designated contractors to conduct unannounced on-site inspections of any provider location. 
240.30 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
240.31 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
240.32 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
240.33 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
240.34 	The commissioner's designations are not subject to administrative appeal.
240.35 	(f) As a condition of enrollment in medical assistance, the commissioner shall 
240.36 	require that a high-risk provider, or a person with a direct or indirect ownership interest in 
241.1 	the provider of five percent or higher, consent to criminal background checks, including 
241.2 	fingerprinting, when required to do so under state law or by a determination by the 
241.3 	commissioner or the Centers for Medicare and Medicaid Services that a provider is 
241.4 	designated high-risk for fraud, waste, or abuse.
241.5 	(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical 
241.6 	equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in 
241.7 	Minnesota and receiving Medicaid funds must purchase a surety bond that is annually 
241.8 	renewed and designates the Minnesota Department of Human Services as the obligee, and 
241.9 	must be submitted in a form approved by the commissioner.
241.10 	(2) At the time of initial enrollment or reenrollment, the provider agency must 
241.11 	purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 
241.12 	in the previous calendar year is up to and including $300,000, the provider agency must 
241.13 	purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 
241.14 	in the previous calendar year is over $300,000, the provider agency must purchase a 
241.15 	performance bond of $100,000. The performance bond must allow for recovery of costs 
241.16 	and fees in pursuing a claim on the bond.
241.17 	(h) The Department of Human Services may require a provider to purchase a 
241.18 	performance surety bond as a condition of initial enrollment, reenrollment, reinstatement, 
241.19 	or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the 
241.20 	department determines there is significant evidence of or potential for fraud and abuse by 
241.21 	the provider, or (3) the provider or category of providers is designated high-risk pursuant 
241.22 	to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The 
241.23 	performance bond must be in an amount of $100,000 or ten percent of the provider's 
241.24 	payments from Medicaid during the immediately preceding 12 months, whichever is 
241.25 	greater. The performance bond must name the Department of Human Services as an 
241.26 	obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

241.27 	Sec. 6. LEGISLATIVE HEALTH CARE WORKFORCE COMMISSION.
 241.28 		Subdivision 1.Legislative oversight. The Legislative Health Care Workforce 
241.29 	Commission is created to study and make recommendations to the legislature on how to 
241.30 	achieve the goal of strengthening the workforce in healthcare.
241.31 		Subd. 2.Membership. The Legislative Health Care Workforce Commission 
241.32 	consists of five members of the senate appointed by the Subcommittee on Committees 
241.33 	of the Committee on Rules and Administration and five members of the house of 
241.34 	representatives appointed by the speaker of the house. The Legislative Health Care 
242.1 	Workforce Commission must include three members of the majority party and two 
242.2 	members of the minority party in each house.
242.3 		Subd. 3.Report to the legislature. The Legislative Health Care Workforce 
242.4 	Commission must provide a report making recommendations to the legislature by 
242.5 	December 31, 2014. The report must:
242.6 	(1) identify current and anticipated health care workforce shortages, by both 
242.7 	provider type and geography;
242.8 	(2) evaluate the effectiveness of incentives currently available to develop, attract, 
242.9 	and retain a highly skilled health care workforce;
242.10 	(3) study alternative incentives to develop, attract, and retain a highly skilled and 
242.11 	diverse health care workforce; and
242.12 	(4) identify current causes and potential solutions to barriers related to the primary 
242.13 	care workforce, including, but not limited to:
242.14 	(i) training and residency shortages;
242.15 	(ii) disparities in income between primary care and other providers; and
242.16 	(iii) negative perceptions of primary care among students.
242.17 		Subd. 4.Assistance to the commission. The commissioners of health, human 
242.18 	services, commerce, and other state agencies shall provide assistance and technical 
242.19 	support to the commission at the request of the commission. The commission may 
242.20 	convene subcommittees to provide additional assistance and advice to the commission.
242.21 		Subd. 5.Expiration. The Legislative Health Care Workforce Commission expires 
242.22 	on January 1, 2015.

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

242.24 	Sec. 7. GRANT PROGRAMS TO ADDRESS MINORITY HEALTH 
242.25 	DISPARITIES.
 242.26 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
242.27 	have the meanings given.
242.28 	(b) "Dementia" means a condition ascribed within the brain that leads to confusion, 
242.29 	lack of focus, and decreased memory.
242.30 	(c) "Education activities" means providing materials related to health care topics 
242.31 	in ethnic-specific languages through materials including, but not limited to, Web sites, 
242.32 	brochures, flyers, and other similar vehicles.
242.33 	(d) "Minority populations" means racial and ethnic groups including, but not limited 
242.34 	to, African-Americans, Native Americans, Hmong, Asians, and other similar groups.
243.1 	(e) "Outreach" means the active pursuit of people within the minority groups 
243.2 	through specific and targeted activities to contact individuals who may not regularly 
243.3 	be contacted by health care professionals.
243.4 		Subd. 2.Grants; distribution. The commissioner of health shall distribute grant 
243.5 	funds to grantees for the following purposes:
243.6 	(1) dementia education and training to specific minority and under-represented 
243.7 	groups;
243.8 	(2) a training conference related to immigrant and refugee mental health issues; and 
243.9 	(3) other programs, as prioritized by the commissioner, relating to health disparities 
243.10 	in minority populations, including, but not limited to, a Somali women-led prevention 
243.11 	health care agency located in Minnesota focused on minority women's health disparities.
243.12 		Subd. 3.Grants; administration. Grant applicants shall submit applications 
243.13 	to the commissioner of health as directed by a request for proposals. Grants must be 
243.14 	competitively awarded and recipients of a grant under this section must prepare and 
243.15 	submit a quarterly progress report to the commissioner beginning three months after 
243.16 	receipt of the grant. The commissioner shall provide technical assistance and program 
243.17 	support as needed, including, but not limited to, assurance that minority individuals with 
243.18 	dementia are effectively identified, mitigated, and evaluated by grantees.
243.19 		Subd. 4.Dementia education and training grant; eligible activities for dementia 
243.20 	outreach. (a) Within the limits of available appropriations, the commissioner shall make 
243.21 	a grant to a nonprofit organization with expertise in providing outreach, education, and 
243.22 	training on dementia, Alzheimer's, and other related disabilities within specific minority 
243.23 	and under-represented groups.
243.24 	(b) The grantee must conduct the following activities:
243.25 	(1) providing and making available educational materials to the general public 
243.26 	as well as specific minority populations;
243.27 	(2) promoting awareness of dementia-related resources and educational materials; 
243.28 	and
243.29 	(3) promoting the use of materials within health care organizations.

243.30 	Sec. 8. FULL-TIME EMPLOYEE RESTRICTION.
 243.31 	No more than one full-time employee may be hired by the Department of Health to 
243.32 	administer the grants under Minnesota Statutes, section 144.9513.

244.1 	ARTICLE 26
244.2 	HEALTH CARE

244.3 	Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a 
244.4 	subdivision to read:
244.5 		Subd. 38.Contract to match recipient third-party liability information. The 
244.6 	commissioner may enter into a contract with a national organization to match recipient 
244.7 	third-party liability information and provide coverage and insurance primacy information 
244.8 	to the department at no charge to providers and the clearinghouses.

244.9 	Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
244.10 		Subdivision 1.Authority. (a) The commissioner shall establish procedures for 
244.11 	determining medical assistance and general assistance medical care payment rates under 
244.12 	a prospective payment system for inpatient hospital services in hospitals that qualify as 
244.13 	vendors of medical assistance. The commissioner shall establish, by rule, procedures for 
244.14 	implementing this section and sections 256.9686, 256.969, and 256.9695. Services must 
244.15 	meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7, 
244.16 	paragraph (b), to be eligible for payment.
244.17 	(b) The commissioner may reduce the types of inpatient hospital admissions that 
244.18 	are required to be certified as medically necessary after notice in the State Register and a 
244.19 	30-day comment period.

244.20 	Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
244.21 		Subd. 1a.Administrative reconsideration. Notwithstanding sections section
244.22 	256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish 
244.23 	an administrative reconsideration process for appeals of inpatient hospital services 
244.24 	determined to be medically unnecessary. A physician or hospital may request a 
244.25 	reconsideration of the decision that inpatient hospital services are not medically necessary 
244.26 	by submitting a written request for review to the commissioner within 30 days after 
244.27 	receiving notice of the decision. The reconsideration process shall take place prior to the 
244.28 	procedures of subdivision 1b and shall be conducted by physicians that are independent 
244.29 	of the case under reconsideration. A majority decision by the physicians is necessary to 
244.30 	make a determination that the services were not medically necessary.

244.31 	Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
245.1 		Subd. 2.Base year. "Base year" means a hospital's fiscal year that is recognized 
245.2 	by the Medicare program or a hospital's fiscal year specified by the commissioner if a 
245.3 	hospital is not required to file information by the Medicare program from which cost and 
245.4 	statistical data are used to establish medical assistance and general assistance medical 
245.5 	care payment rates.

245.6 	Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
245.7 		Subdivision 1.Hospital cost index. (a) The hospital cost index shall be the change 
245.8 	in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted 
245.9 	by Data Resources, Inc. The commissioner shall use the indices as forecasted in the 
245.10 	third quarter of the calendar year prior to the rate year. The hospital cost index may be 
245.11 	used to adjust the base year operating payment rate through the rate year on an annually 
245.12 	compounded basis.
245.13 	(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human 
245.14 	services shall not provide automatic annual inflation adjustments for hospital payment 
245.15 	rates under medical assistance, nor under general assistance medical care, except that 
245.16 	the inflation adjustments under paragraph (a) for medical assistance, excluding general 
245.17 	assistance medical care, shall apply through calendar year 2001. The index for calendar 
245.18 	year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index 
245.19 	from 1994 to 1996. The commissioner of management and budget shall include as a 
245.20 	budget change request in each biennial detailed expenditure budget submitted to the 
245.21 	legislature under section 16A.11 annual adjustments in hospital payment rates under 
245.22 	medical assistance and general assistance medical care, based upon the hospital cost index.

245.23 	Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
245.24 		Subd. 2.Diagnostic categories. The commissioner shall use to the extent possible 
245.25 	existing diagnostic classification systems, including such as the system used by the 
245.26 	Medicare program all patient refined diagnosis-related groups (APR-DRGs) or other 
245.27 	similar classification programs to determine the relative values of inpatient services 
245.28 	and case mix indices. The commissioner may combine diagnostic classifications into 
245.29 	diagnostic categories and may establish separate categories and numbers of categories 
245.30 	based on program eligibility or hospital peer group. Relative values shall be recalculated
245.31 	 recalibrated when the base year is changed. Relative value determinations shall include 
245.32 	paid claims for admissions during each hospital's base year. The commissioner may 
245.33 	extend the time period forward to obtain sufficiently valid information to establish relative 
245.34 	values supplement the diagnostic classification systems data with national averages. 
246.1 	Relative value determinations shall not include property cost data, Medicare crossover 
246.2 	data, and data on admissions that are paid a per day transfer rate under subdivision 14. The 
246.3 	computation of the base year cost per admission must include identified outlier cases and 
246.4 	their weighted costs up to the point that they become outlier cases, but must exclude costs 
246.5 	recognized in outlier payments beyond that point. The commissioner may recategorize the 
246.6 	diagnostic classifications and recalculate recalibrate relative values and case mix indices 
246.7 	to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce 
246.8 	variances within the diagnostic categories after notice in the State Register and a 30-day 
246.9 	comment period. The commissioner shall recategorize the diagnostic classifications and 
246.10 	recalculate relative values and case mix indices based on the two-year schedule in effect 
246.11 	prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur 
246.12 	January 1, 2013, and shall occur every two years after. When rates are not rebased under 
246.13 	subdivision 2b, the commissioner may establish relative values and case mix indices based 
246.14 	on charge data and may update the base year to the most recent data available.

246.15 	Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
246.16 		Subd. 2b.Operating Hospital payment rates. (a) For discharges occurring on and 
246.17 	after September 1, 2014, hospital inpatient services for hospitals located in Minnesota 
246.18 	shall be paid according to the following:
246.19 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
246.20 	methodology;
246.21 	(2) long-term care hospitals as defined by Medicare shall be paid on a per diem 
246.22 	methodology under subdivision 25;
246.23 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
246.24 	distinct parts as defined by Medicare shall be paid according to the methodology under 
246.25 	subdivision 12; and
246.26 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
246.27 	(b) In determining operating payment rates for admissions occurring on or after the 
246.28 	rate year beginning January 1, 1991, and every two years after, or more frequently as 
246.29 	determined by the commissioner, the commissioner shall obtain operating data from an 
246.30 	updated base year and establish operating payment rates per admission for each hospital 
246.31 	based on the cost-finding methods and allowable costs of the Medicare program in effect 
246.32 	during the base year. Rates under the general assistance medical care, medical assistance, 
246.33 	and MinnesotaCare programs shall not be rebased to more current data on January 1, 1997, 
246.34 	January 1, 2005, for the first 24 months of the rebased period beginning January 1, 2009.
246.35 	 For the rebased period beginning January 1, 2011, through August 31, 2014, rates shall not 
247.1 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 1, 
247.2 	2011, based on its most recent Medicare cost report ending on or before September 1, 2008, 
247.3 	with the provisions under subdivisions 9 and 23, based on the rates in effect on December 
247.4 	31, 2010. For subsequent rate setting periods after September 1, 2014, in which the base 
247.5 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
247.6 	period as other hospitals. Effective January 1, 2013, and after, rates shall not be rebased.
247.7 	(c) Effective for discharges occurring on and after September 1, 2014, payment rates 
247.8 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
247.9 	area, except those hospitals paid under the methodologies under paragraph (a), clauses 
247.10 	(2) and (3), shall be rebased incorporating cost and payment methodologies in a manner 
247.11 	similar to Medicare. The base year for the rates effective September 1, 2014, shall be state 
247.12 	fiscal year 2012. The rebasing must be budget neutral, ensuring that the total aggregate 
247.13 	payments under the rebased system are equal to the total aggregate payments made for the 
247.14 	same number and types of services in the base year. Separate budget neutrality calculations 
247.15 	shall be determined for payments made to critical access hospitals and payments made to 
247.16 	hospitals paid under the DRG system. Any rate increases or decreases under subdivision 
247.17 	3a that applied to the hospitals being rebased during the base period shall be incorporated 
247.18 	into the budget neutrality calculation. Any rate increases or decreases that did not apply to 
247.19 	the base period shall not be considered in the budget neutrality calculation.
247.20 	(d) For discharges occurring September 1, 2014, through and including June 30, 
247.21 	2016, the rebased rates shall include necessary adjustments to the projected rates that 
247.22 	result in no greater than a five percent increase or decrease from the base year payments 
247.23 	for any hospital. In addition to such adjustments, the commissioner may make adjustments 
247.24 	to rates and must consider the impact of changes on at least the following when evaluating 
247.25 	whether additional adjustments should be made:
247.26 	(1) pediatric services;
247.27 	(2) behavioral health services;
247.28 	(3) trauma services as defined by the National Uniform Billing Committee;
247.29 	(4) transplant services;
247.30 	(5) obstetric services, newborn services, and behavioral health services provided 
247.31 	by hospitals outside the seven-county metropolitan area;
247.32 	(6) outlier admissions;
247.33 	(7) low volume providers; and
247.34 	(8) services provided by small rural hospitals that are not critical access hospitals.
247.35 	(e) Hospital payment rates established under paragraph (c) shall incorporate the 
247.36 	following:
248.1 	(1) for hospitals paid under the DRG methodology, the base year operating payment 
248.2 	rate per admission is standardized by the case mix index and adjusted by the hospital cost 
248.3 	index, relative values, and disproportionate population adjustment. applicable Medicare 
248.4 	wage index and adjusted by the hospital's disproportionate population adjustment;
248.5 	(2) for critical access hospitals, interim per diem payment rates shall be based on the 
248.6 	ratio of cost and charges reported on the base year Medicare cost report or reports and 
248.7 	applied to medical assistance utilization data.  Final settlement payments for a state fiscal 
248.8 	year will be determined based on a review of the Medicaid cost report for the applicable 
248.9 	state fiscal year;
248.10 	(3) the cost and charge data used to establish operating hospital payment rates shall 
248.11 	only reflect inpatient services covered by medical assistance and shall not include property 
248.12 	cost information and costs recognized in outlier payments; and
248.13 	(4) in determining hospital payment rates for discharges occurring on or after the 
248.14 	rate year beginning January 1, 2011, through December 31, 2012, the hospital payment 
248.15 	rate per discharge must be based on the cost-finding methods and allowable costs of the 
248.16 	Medicare program in effect during the base year or years.

248.17 	Sec. 8. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
248.18 	to read:
248.19 		Subd. 2d.Budget neutrality factor. For the rebased period effective September 1, 
248.20 	2014, when rebasing rates under subdivision 2b, paragraph (c), the commissioner must 
248.21 	apply a budget neutrality factor if applicable to all hospitals' rebased rates to ensure that 
248.22 	total DRG and critical access hospital payments to hospitals do not exceed total DRG and 
248.23 	critical access hospital payments that would have been made to hospitals for the same 
248.24 	number and types of services if the relative rates and weights had not been recalibrated 
248.25 	and cost-based payments for critical access hospitals had not been established. For the 
248.26 	purposes of this section, budget neutrality factor equals the percentage change from total 
248.27 	aggregate payments calculated under a new payment system to total aggregate payments 
248.28 	calculated under the old system for the same number and types of services.

248.29 	Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
248.30 	to read:
248.31 		Subd. 2e.Interim payments. Notwithstanding subdivision 2b, for discharges 
248.32 	occurring on or after September 1, 2014, and no later than June 30, 2015, the commissioner 
248.33 	may implement an interim payment process to pay hospitals, including payments based on 
248.34 	each hospital's average payments per claim for state fiscal years 2011 and 2012. These 
249.1 	interim payments may be used to pay hospitals if the new payment system and rebasing 
249.2 	under subdivision 2b is not complete by September 1, 2014. Claims paid at interim 
249.3 	payment rates shall be reprocessed and paid at the rates established under the new system 
249.4 	upon implementation of the new system.

249.5 	Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
249.6 	to read:
249.7 		Subd. 2f.Report required. (a) The commissioner shall annually report to the 
249.8 	legislature beginning March 1, 2015, and ending March 1, 2016, on the financial impacts 
249.9 	by hospital and policy ramifications, if any, resulting from payment methodology changes 
249.10 	implemented after August 31, 2014, and before December 31, 2015.
249.11 	(b) The commissioner shall provide, at a minimum, the following information:
249.12 	(1) case-mix adjusted calculations of net payment impacts for each hospital resulting 
249.13 	from the difference between the payments each hospital would have received under the 
249.14 	payment methodology for discharges before August 31, 2014, and the payments each 
249.15 	hospital has or is expected to receive for the same number and types of services under the 
249.16 	payment methodology implemented effective September 1, 2014;
249.17 	(2) any adjustments authorized under subdivision 2b, paragraph (d), that were made 
249.18 	and the impacts of those adjustments; and
249.19 	(3) recommendations for further refinement or improvement of the hospital inpatient 
249.20 	payment system or methodologies.

249.21 	Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
249.22 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
249.23 	assistance program must not be submitted until the recipient is discharged. However, 
249.24 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
249.25 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
249.26 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
249.27 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
249.28 	hospital payments established under this section and sections 256.9685, 256.9686, and 
249.29 	256.9695, in addition to third-party and recipient liability, for discharges occurring during 
249.30 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
249.31 	inpatient services paid for the same period of time to the hospital. This payment limitation 
249.32 	shall be calculated separately for medical assistance and general assistance medical 
249.33 	care services. The limitation on general assistance medical care shall be effective for 
249.34 	admissions occurring on or after July 1, 1991. Services that have rates established under 
250.1 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
250.2 	the affected hospitals, the commissioner may consider related hospitals one entity and may 
250.3 	merge the payment rates while maintaining separate provider numbers. The operating and 
250.4 	property base rates per admission or per day shall be derived from the best Medicare and 
250.5 	claims data available when rates are established. The commissioner shall determine the 
250.6 	best Medicare and claims data, taking into consideration variables of recency of the data, 
250.7 	audit disposition, settlement status, and the ability to set rates in a timely manner. The 
250.8 	commissioner shall notify hospitals of payment rates by December 1 of the year preceding 
250.9 	the rate year 30 days prior to implementation. The rate setting data must reflect the 
250.10 	admissions data used to establish relative values. Base year changes from 1981 to the base 
250.11 	year established for the rate year beginning January 1, 1991, and for subsequent rate years, 
250.12 	shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase 
250.13 	under subdivision 1. The commissioner may adjust base year cost, relative value, and case 
250.14 	mix index data to exclude the costs of services that have been discontinued by the October 
250.15 	1 of the year preceding the rate year or that are paid separately from inpatient services. 
250.16 	Inpatient stays that encompass portions of two or more rate years shall have payments 
250.17 	established based on payment rates in effect at the time of admission unless the date of 
250.18 	admission preceded the rate year in effect by six months or more. In this case, operating 
250.19 	payment rates for services rendered during the rate year in effect and established based on 
250.20 	the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
250.21 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
250.22 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
250.23 	services is reduced by .5 percent from the current statutory rates.
250.24 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
250.25 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before 
250.26 	third-party liability and spenddown, is reduced five percent from the current statutory 
250.27 	rates. Mental health services within diagnosis related groups 424 to 432 or corresponding 
250.28 	APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.
250.29 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
250.30 	fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 
250.31 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent from 
250.32 	the current statutory rates. Mental health services within diagnosis related groups 424 to 
250.33 	432 or corresponding APR-DRGs and facilities defined under subdivision 16 are excluded 
250.34 	from this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes 
250.35 	of this paragraph, medical assistance does not include general assistance medical care.
251.1 	 Payments made to managed care plans shall be reduced for services provided on or after 
251.2 	January 1, 2006, to reflect this reduction.
251.3 	(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
251.4 	for fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, 
251.5 	made to hospitals for inpatient services before third-party liability and spenddown, 
251.6 	is reduced 3.46 percent from the current statutory rates. Mental health services with 
251.7 	diagnosis related groups 424 to 432 or corresponding APR-DRGs and facilities defined 
251.8 	under subdivision 16 are excluded from this paragraph. Payments made to managed care 
251.9 	plans shall be reduced for services provided on or after January 1, 2009, through June 
251.10 	30, 2009, to reflect this reduction.
251.11 	(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
251.12 	for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, 
251.13 	made to hospitals for inpatient services before third-party liability and spenddown, is 
251.14 	reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis 
251.15 	related groups 424 to 432 or corresponding APR-DRGs and facilities defined under 
251.16 	subdivision 16 are excluded from this paragraph. Payments made to managed care plans 
251.17 	shall be reduced for services provided on or after July 1, 2009, through June 30, 2011, 
251.18 	to reflect this reduction.
251.19 	(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
251.20 	for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for 
251.21 	inpatient services before third-party liability and spenddown, is reduced 1.79 percent from 
251.22 	the current statutory rates. Mental health services with diagnosis related groups 424 to 432 
251.23 	or corresponding APR-DRGs and facilities defined under subdivision 16 are excluded 
251.24 	from this paragraph. Payments made to managed care plans shall be reduced for services 
251.25 	provided on or after July 1, 2011, to reflect this reduction.
251.26 	(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 
251.27 	payment for fee-for-service admissions occurring on or after July 1, 2009, made to 
251.28 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
251.29 	one percent from the current statutory rates. Facilities defined under subdivision 16 are 
251.30 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
251.31 	services provided on or after October 1, 2009, to reflect this reduction.
251.32 	(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total 
251.33 	payment for fee-for-service admissions occurring on or after July 1, 2011, made to 
251.34 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
251.35 	1.96 percent from the current statutory rates. Facilities defined under subdivision 16 are 
252.1 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
252.2 	services provided on or after January 1, 2011, to reflect this reduction.
252.3 	(j) Effective for discharges on and after September 1, 2014, from hospitals paid 
252.4 	under subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this 
252.5 	subdivision shall be incorporated into the rebased rates established under subdivision 2b, 
252.6 	paragraph (c), and shall not be applied to each claim.

252.7 	Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
252.8 		Subd. 3b.Nonpayment for hospital-acquired conditions and for certain 
252.9 	treatments. (a) The commissioner must not make medical assistance payments to a 
252.10 	hospital for any costs of care that result from a condition listed identified in paragraph 
252.11 	(c), if the condition was hospital acquired.
252.12 	(b) For purposes of this subdivision, a condition is hospital acquired if it is not 
252.13 	identified by the hospital as present on admission. For purposes of this subdivision, 
252.14 	medical assistance includes general assistance medical care and MinnesotaCare.
252.15 	(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired 
252.16 	condition listed identified in this paragraph that is represented by an ICD-9-CM or 
252.17 	ICD-10-CM diagnosis code and is designated as a complicating condition or a major 
252.18 	complicating condition:. The list of conditions shall be the hospital-acquired conditions 
252.19 	list defined by the Centers for Medicare and Medicaid Services on an annual basis.
252.20 	(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
252.21 	(2) air embolism (ICD-9-CM code 999.1);
252.22 	(3) blood incompatibility (ICD-9-CM code 999.6);
252.23 	(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
252.24 	(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing 
252.25 	injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating 
252.26 	condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929; 
252.27 	940-949; and 991-994);
252.28 	(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
252.29 	(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
252.30 	(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11; 
252.31 	249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and 
252.32 	251.0);
252.33 	(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain 
252.34 	orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07; 
253.1 	81.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and 
253.2 	81.85);
253.3 	(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery 
253.4 	(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity 
253.5 	(ICD-9-CM code 278.01);
253.6 	(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary 
253.7 	artery bypass graft (procedure codes 36.10 to 36.19); and
253.8 	(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary 
253.9 	embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement 
253.10 	(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 
253.11 	to 81.52).
253.12 	(d) The prohibition in paragraph (a) applies to any additional payments that result 
253.13 	from a hospital-acquired condition listed identified in paragraph (c), including, but not 
253.14 	limited to, additional treatment or procedures, readmission to the facility after discharge, 
253.15 	increased length of stay, change to a higher diagnostic category, or transfer to another 
253.16 	hospital. In the event of a transfer to another hospital, the hospital where the condition 
253.17 	listed identified under paragraph (c) was acquired is responsible for any costs incurred at 
253.18 	the hospital to which the patient is transferred.
253.19 	(e) A hospital shall not bill a recipient of services for any payment disallowed under 
253.20 	this subdivision.

253.21 	Sec. 13. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
253.22 	to read:
253.23 		Subd. 3d.Rate increase. The total payment for fee for service admissions occurring 
253.24 	on or after July 1, 2014, through December 31, 2014, made to hospitals for inpatient 
253.25 	services before third-party liability and spenddown, is increased by three percent from 
253.26 	the current statutory rates. Facilities defined under subdivision 16, long-term hospitals 
253.27 	as determined under the Medicare program, children's hospitals whose inpatients are 
253.28 	predominantly under 18 years of age, and payments under managed care are excluded 
253.29 	from this rate increase.

253.30 	Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
253.31 	to read:
253.32 		Subd. 4b.Medical assistance cost reports for services. (a) A hospital that meets 
253.33 	one of the following criteria must annually file medical assistance cost reports within six 
253.34 	months of the end of the hospital's fiscal year:
254.1 	(1) a hospital designated as a critical access hospital that receives medical assistance 
254.2 	payments; or
254.3 	(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local 
254.4 	trade area that receives a disproportionate population adjustment under subdivision 9.
254.5 	For purposes of this subdivision, local trade area has the meaning given in subdivision 17.
254.6 	(b) The Department of Human Services must suspend payments to any hospital that 
254.7 	fails to file a report required under this subdivision. Payments must remain suspended  
254.8 	until the report has been filed with and accepted by the Department of Human Services  
254.9 	inpatient rates unit.

254.10 	Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:
254.11 		Subd. 6a.Special considerations. In determining the payment rates, the 
254.12 	commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.

254.13 	Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:
254.14 		Subd. 8.Unusual length of stay experience. (a) The commissioner shall establish 
254.15 	day outlier thresholds for each diagnostic category established under subdivision 2 at 
254.16 	two standard deviations beyond the mean length of stay. Payment for the days beyond 
254.17 	the outlier threshold shall be in addition to the operating and property payment rates per 
254.18 	admission established under subdivisions 2, and 2b, and 2c. Payment for outliers shall 
254.19 	be at 70 percent of the allowable operating cost, after adjustment by the case mix index, 
254.20 	hospital cost index, relative values and the disproportionate population adjustment. The 
254.21 	outlier threshold for neonatal and burn diagnostic categories shall be established at one 
254.22 	standard deviation beyond the mean length of stay, and payment shall be at 90 percent 
254.23 	of allowable operating cost calculated in the same manner as other outliers. A hospital 
254.24 	may choose an alternative to the 70 percent outlier payment that is at a minimum of 60 
254.25 	percent and a maximum of 80 percent if the commissioner is notified in writing of the 
254.26 	request by October 1 of the year preceding the rate year. The chosen percentage applies 
254.27 	to all diagnostic categories except burns and neonates. The percentage of allowable cost 
254.28 	that is unrecognized by the outlier payment shall be added back to the base year operating 
254.29 	payment rate per admission.
254.30 	(b) Effective for transfers occurring on or after September 1, 2014, the commissioner 
254.31 	shall establish payment rates for acute transfers that are based on Medicare methodologies.

254.32 	Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:
255.1 		Subd. 8a.Short length of stay. Except as provided in subdivision 13, for 
255.2 	admissions occurring on or after July 1, 1995, payment shall be determined as follows and 
255.3 	shall be included in the base year for rate setting purposes:
255.4 	(1) for an admission that is categorized to a neonatal diagnostic related group 
255.5 	in which the length of stay is less than 50 percent of the average length of stay for the 
255.6 	category in the base year and the patient at admission is equal to or greater than the age of 
255.7 	one, payments shall be established according to the methods of subdivision 14;
255.8 	(2) For an admission that is categorized to a diagnostic category that includes 
255.9 	neonatal respiratory distress syndrome, the hospital must have a level II or level III 
255.10 	nursery and the patient must receive treatment in that unit or payment will be made 
255.11 	without regard to the syndrome condition.

255.12 	Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
255.13 	to read:
255.14 		Subd. 8c.Hospital residents. Payments for hospital residents shall be made 
255.15 	as follows:
255.16 	(1) payments for the first 180 days of inpatient care shall be the DRG system 
255.17 	payment plus any appropriate outliers; and
255.18 	(2) payment for all medically necessary patient care subsequent to 180 days shall 
255.19 	be reimbursed at a rate equal to 80 percent of the product of the statewide average 
255.20 	cost-to-charge ratio multiplied by the usual and customary charges.

255.21 	Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
255.22 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For 
255.23 	admissions occurring on or after October 1, 1992, through December 31, 1992, the 
255.24 	medical assistance disproportionate population adjustment shall comply with federal law 
255.25 	and shall be paid to a hospital, excluding regional treatment centers and facilities of the 
255.26 	federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 
255.27 	of the arithmetic mean. The adjustment must be determined as follows:
255.28 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
255.29 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
255.30 	federal Indian Health Service but less than or equal to one standard deviation above the 
255.31 	mean, the adjustment must be determined by multiplying the total of the operating and 
255.32 	property payment rates by the difference between the hospital's actual medical assistance 
255.33 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
255.34 	treatment centers and facilities of the federal Indian Health Service; and
256.1 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
256.2 	standard deviation above the mean, the adjustment must be determined by multiplying 
256.3 	the adjustment that would be determined under clause (1) for that hospital by 1.1. If 
256.4 	federal matching funds are not available for all adjustments under this subdivision, the 
256.5 	commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 
256.6 	federal match. The commissioner may establish a separate disproportionate population 
256.7 	operating payment rate adjustment under the general assistance medical care program. 
256.8 	For purposes of this subdivision medical assistance does not include general assistance 
256.9 	medical care. The commissioner shall report annually on the number of hospitals likely to 
256.10 	receive the adjustment authorized by this paragraph. The commissioner shall specifically 
256.11 	report on the adjustments received by public hospitals and public hospital corporations 
256.12 	located in cities of the first class.
256.13 	(b) For admissions occurring on or after July 1, 1993, the medical assistance 
256.14 	disproportionate population adjustment shall comply with federal law and shall be paid to 
256.15 	a hospital, excluding regional treatment centers and facilities of the federal Indian Health 
256.16 	Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 
256.17 	mean. The adjustment must be determined as follows:
256.18 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
256.19 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
256.20 	federal Indian Health Service but less than or equal to one standard deviation above the 
256.21 	mean, the adjustment must be determined by multiplying the total of the operating and 
256.22 	property payment rates by the difference between the hospital's actual medical assistance 
256.23 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
256.24 	treatment centers and facilities of the federal Indian Health Service; and
256.25 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
256.26 	standard deviation above the mean, the adjustment must be determined by multiplying 
256.27 	the adjustment that would be determined under clause (1) for that hospital by 1.1. The 
256.28 	commissioner may establish a separate disproportionate population operating payment 
256.29 	rate adjustment under the general assistance medical care program. For purposes of this 
256.30 	subdivision, medical assistance does not include general assistance medical care. The 
256.31 	commissioner shall report annually on the number of hospitals likely to receive the 
256.32 	adjustment authorized by this paragraph. The commissioner shall specifically report on 
256.33 	the adjustments received by public hospitals and public hospital corporations located in 
256.34 	cities of the first class;.
256.35 	(3) for a hospital that had medical assistance fee-for-service payment volume during 
256.36 	calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 
257.1 	payment volume, a medical assistance disproportionate population adjustment shall be 
257.2 	paid in addition to any other disproportionate payment due under this subdivision as 
257.3 	follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 
257.4 	For a hospital that had medical assistance fee-for-service payment volume during calendar 
257.5 	year 1991 in excess of eight percent of total medical assistance fee-for-service payment 
257.6 	volume and was the primary hospital affiliated with the University of Minnesota, a 
257.7 	medical assistance disproportionate population adjustment shall be paid in addition to any 
257.8 	other disproportionate payment due under this subdivision as follows: $505,000 due on 
257.9 	the 15th of each month after noon, beginning July 15, 1995; and
257.10 	(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 
257.11 	reduced to zero.
257.12 	(c) The commissioner shall adjust rates paid to a health maintenance organization 
257.13 	under contract with the commissioner to reflect rate increases provided in paragraph (b), 
257.14 	clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 
257.15 	rates to reflect payments provided in clause (3).
257.16 	(d) If federal matching funds are not available for all adjustments under paragraph 
257.17 	(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 
257.18 	pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
257.19 	(e) For purposes of this subdivision, medical assistance does not include general 
257.20 	assistance medical care.
257.21 	(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
257.22 	(1) general assistance medical care expenditures for fee-for-service inpatient and 
257.23 	outpatient hospital payments made by the department shall be considered Medicaid 
257.24 	disproportionate share hospital payments, except as limited below:
257.25 	 (i) only the portion of Minnesota's disproportionate share hospital allotment under 
257.26 	section 1923(f) of the Social Security Act that is not spent on the disproportionate 
257.27 	population adjustments in paragraph (b), clauses (1) and (2), may be used for general 
257.28 	assistance medical care expenditures;
257.29 	 (ii) only those general assistance medical care expenditures made to hospitals that 
257.30 	qualify for disproportionate share payments under section 1923 of the Social Security Act 
257.31 	and the Medicaid state plan may be considered disproportionate share hospital payments;
257.32 	 (iii) only those general assistance medical care expenditures made to an individual 
257.33 	hospital that would not cause the hospital to exceed its individual hospital limits under 
257.34 	section 1923 of the Social Security Act may be considered; and
257.35 	 (iv) general assistance medical care expenditures may be considered only to the 
257.36 	extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
258.1 	All hospitals and prepaid health plans participating in general assistance medical care 
258.2 	must provide any necessary expenditure, cost, and revenue information required by the 
258.3 	commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 
258.4 	general assistance medical care expenditures; and
258.5 	(2) (c) Certified public expenditures made by Hennepin County Medical Center shall 
258.6 	be considered Medicaid disproportionate share hospital payments. Hennepin County 
258.7 	and Hennepin County Medical Center shall report by June 15, 2007, on payments made 
258.8 	beginning July 1, 2005, or another date specified by the commissioner, that may qualify 
258.9 	for reimbursement under federal law. Based on these reports, the commissioner shall 
258.10 	apply for federal matching funds.
258.11 	(g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
258.12 	 is effective retroactively from July 1, 2005, or the earliest effective date approved by the 
258.13 	Centers for Medicare and Medicaid Services.

258.14 	Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
258.15 		Subd. 10.Separate billing by certified registered nurse anesthetists. Hospitals 
258.16 	may must exclude certified registered nurse anesthetist costs from the operating payment 
258.17 	rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must 
258.18 	notify the commissioner in writing by October 1 of even-numbered years to exclude 
258.19 	certified registered nurse anesthetist costs. The hospital must agree that all hospital 
258.20 	claims for the cost and charges of certified registered nurse anesthetist services will not 
258.21 	be included as part of the rates for inpatient services provided during the rate year. In 
258.22 	this case, the operating payment rate shall be adjusted to exclude the cost of certified 
258.23 	registered nurse anesthetist services.
258.24 	For admissions occurring on or after July 1, 1991, and until the expiration date of 
258.25 	section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided 
258.26 	on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when 
258.27 	the hospital's base year did not include the cost of these services. To be eligible, a hospital 
258.28 	must notify the commissioner in writing by July 1, 1991, of the request and must comply 
258.29 	with all other requirements of this subdivision.

258.30 	Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:
258.31 		Subd. 12.Rehabilitation distinct parts. (a) Units of hospitals that are recognized 
258.32 	as rehabilitation distinct parts by the Medicare program shall have separate provider 
258.33 	numbers under the medical assistance program for rate establishment and billing 
258.34 	purposes only. These units shall also have operating and property payment rates and the 
259.1 	disproportionate population adjustment, if allowed by federal law, established separately 
259.2 	from other inpatient hospital services.
259.3 	(b) The commissioner may shall establish separate relative values under subdivision 
259.4 	2 for rehabilitation hospitals and distinct parts as defined by the Medicare program.
259.5 	 Effective for discharges on or after September 1, 2014, the commissioner, to the extent 
259.6 	possible, shall replicate the existing payment rate methodology under the new diagnostic 
259.7 	classification system. The result must be budget neutral, ensuring that the total aggregate 
259.8 	payments under the new system are equal to the total aggregate payments made for the 
259.9 	same number and types of services in the base year, state fiscal year 2012.
259.10 	(c) For individual hospitals that did not have separate medical assistance 
259.11 	rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals 
259.12 	shall provide the information needed to separate rehabilitation distinct part cost and claims 
259.13 	data from other inpatient service data.

259.14 	Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
259.15 		Subd. 14.Transfers. Except as provided in subdivisions 11 and 13, (a) Operating 
259.16 	and property payment rates for admissions that result in transfers and transfers shall be 
259.17 	established on a per day payment system. The per day payment rate shall be the sum of 
259.18 	the adjusted operating and property payment rates determined under this subdivision and 
259.19 	subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 to 12, divided by the arithmetic mean length of 
259.20 	stay for the diagnostic category. Each admission that results in a transfer and each transfer 
259.21 	is considered a separate admission to each hospital, and the total of the admission and 
259.22 	transfer payments to each hospital must not exceed the total per admission payment that 
259.23 	would otherwise be made to each hospital under this subdivision and subdivisions 2, 2b, 
259.24 	2c, 3a, 4a, 5a, and 7 to 13 8 to 12.
259.25 	(b) Effective for transfers occurring on and after September 1, 2014, the commissioner 
259.26 	shall establish payment rates for acute transfers that are based on Medicare methodologies.

259.27 	Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
259.28 		Subd. 17.Out-of-state hospitals in local trade areas. Out-of-state hospitals that 
259.29 	are located within a Minnesota local trade area and that have more than 20 admissions in 
259.30 	the base year  or years shall have rates established using the same procedures and methods 
259.31 	that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area 
259.32 	means a county contiguous to Minnesota and located in a metropolitan statistical area as 
259.33 	determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals 
259.34 	that are not required by law to file information in a format necessary to establish rates shall 
260.1 	have rates established based on the commissioner's estimates of the information. Relative 
260.2 	values of the diagnostic categories shall not be redetermined under this subdivision until 
260.3 	required by rule statute. Hospitals affected by this subdivision shall then be included in 
260.4 	determining relative values. However, hospitals that have rates established based upon 
260.5 	the commissioner's estimates of information shall not be included in determining relative 
260.6 	values. This subdivision is effective for hospital fiscal years beginning on or after July 
260.7 	1, 1988. A hospital shall provide the information necessary to establish rates under this 
260.8 	subdivision at least 90 days before the start of the hospital's fiscal year.

260.9 	Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:
260.10 		Subd. 18.Out-of-state hospitals outside local trade areas. Hospitals that are 
260.11 	not located within Minnesota or a Minnesota local trade area shall have operating and 
260.12 	property inpatient hospital rates established at the average of statewide and local trade area 
260.13 	rates or, at the commissioner's discretion, at an amount negotiated by the commissioner. 
260.14 	Relative values shall not include data from hospitals that have rates established under this 
260.15 	subdivision. Payments, including third-party and recipient liability, established under this 
260.16 	subdivision may not exceed the charges on a claim specific basis for inpatient services that 
260.17 	are covered by medical assistance.

260.18 	Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:
260.19 		Subd. 25.Long-term hospital rates. (a) Long-term hospitals shall be paid a per 
260.20 	diem rate established by the commissioner.
260.21 	(b) For admissions occurring on or after April 1, 1995, a long-term hospital as 
260.22 	designated by Medicare that does not have admissions in the base year shall have 
260.23 	inpatient rates established at the average of other hospitals with the same designation. For 
260.24 	subsequent rate-setting periods in which base years are updated, the hospital's base year 
260.25 	shall be the first Medicare cost report filed with the long-term hospital designation and 
260.26 	shall remain in effect until it falls within the same period as other hospitals.

260.27 	Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
260.28 		Subd. 30.Payment rates for births. (a) For admissions occurring on or after 
260.29 	October 1, 2009, September 1, 2014, the total operating and property payment rate, 
260.30 	excluding disproportionate population adjustment, for the following diagnosis-related 
260.31 	groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section 
260.32 	without complicating diagnosis; (2) 372 vaginal delivery with complicating diagnosis; 
261.1 	and (3) 373 vaginal delivery without complicating diagnosis, 5401, 5402, 5403, and 5404 
261.2 	cesarean section, shall be no greater than $3,528.
261.3 	(b) The rates described in this subdivision do not include newborn care.
261.4 	(c) Payments to managed care and county-based purchasing plans under section 
261.5 	256B.69, 256B.692, or 256L.12 shall be reduced for services provided on or after October 
261.6 	1, 2009, to reflect the adjustments in paragraph (a).
261.7 	(d) Prior authorization shall not be required before reimbursement is paid for a 
261.8 	cesarean section delivery.

261.9 	Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a 
261.10 	subdivision to read:
261.11 		Subd. 24.Medicaid waiver requests and state plan amendments. Prior to 
261.12 	submitting any Medicaid waiver request or Medicaid state plan amendment to the federal 
261.13 	government for approval, the commissioner shall publish the text of the waiver request or 
261.14 	state plan amendment, and a summary of and explanation of the need for the request, on 
261.15 	the agency's Web site and provide a 30-day public comment period. The commissioner 
261.16 	shall notify the public of the availability of this information through the agency's electronic 
261.17 	subscription service. The commissioner shall consider public comments when preparing 
261.18 	the final waiver request or state plan amendment that is to be submitted to the federal 
261.19 	government for approval. The commissioner shall also publish on the agency's Web site 
261.20 	notice of any federal decision related to the state request for approval, within 30 days of 
261.21 	the decision. This notice must describe any modifications to the state request that have 
261.22 	been agreed to by the commissioner as a condition of receiving federal approval.

261.23 	Sec. 28. Minnesota Statutes 2013 Supplement, section 256B.056, subdivision 5c, 
261.24 	is amended to read:
261.25 		Subd. 5c.Excess income standard. (a) The excess income standard for parents 
261.26 	and caretaker relatives, pregnant women, infants, and children ages two through 20 is the 
261.27 	standard specified in subdivision 4, paragraph (b).
261.28 	(b) The excess income standard for a person whose eligibility is based on blindness, 
261.29 	disability, or age of 65 or more years shall equal 75 percent of the federal poverty 
261.30 	guidelines. The excess income standard under this paragraph shall equal 80 percent of 
261.31 	the federal poverty guidelines, effective January 1, 2017.

261.32 	Sec. 29. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to 
261.33 	read:
262.1 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic 
262.2 	services, federally qualified health center services, nonprofit community health clinic 
262.3 	services, and public health clinic services. Rural health clinic services and federally 
262.4 	qualified health center services mean services defined in United States Code, title 42, 
262.5 	section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 
262.6 	health center services shall be made according to applicable federal law and regulation.
262.7 	(b) A federally qualified health center that is beginning initial operation shall submit 
262.8 	an estimate of budgeted costs and visits for the initial reporting period in the form and 
262.9 	detail required by the commissioner. A federally qualified health center that is already in 
262.10 	operation shall submit an initial report using actual costs and visits for the initial reporting 
262.11 	period. Within 90 days of the end of its reporting period, a federally qualified health 
262.12 	center shall submit, in the form and detail required by the commissioner, a report of 
262.13 	its operations, including allowable costs actually incurred for the period and the actual 
262.14 	number of visits for services furnished during the period, and other information required 
262.15 	by the commissioner. Federally qualified health centers that file Medicare cost reports 
262.16 	shall provide the commissioner with a copy of the most recent Medicare cost report filed 
262.17 	with the Medicare program intermediary for the reporting year which support the costs 
262.18 	claimed on their cost report to the state.
262.19 	(c) In order to continue cost-based payment under the medical assistance program 
262.20 	according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 
262.21 	must apply for designation as an essential community provider within six months of final 
262.22 	adoption of rules by the Department of Health according to section 62Q.19, subdivision 
262.23 	7. For those federally qualified health centers and rural health clinics that have applied 
262.24 	for essential community provider status within the six-month time prescribed, medical 
262.25 	assistance payments will continue to be made according to paragraphs (a) and (b) for the 
262.26 	first three years after application. For federally qualified health centers and rural health 
262.27 	clinics that either do not apply within the time specified above or who have had essential 
262.28 	community provider status for three years, medical assistance payments for health services 
262.29 	provided by these entities shall be according to the same rates and conditions applicable 
262.30 	to the same service provided by health care providers that are not federally qualified 
262.31 	health centers or rural health clinics.
262.32 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 
262.33 	qualified health center or a rural health clinic to make application for an essential 
262.34 	community provider designation in order to have cost-based payments made according 
262.35 	to paragraphs (a) and (b) no longer apply.
263.1 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 
263.2 	shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
263.3 	(f) Effective January 1, 2001, each federally qualified health center and rural health 
263.4 	clinic may elect to be paid either under the prospective payment system established 
263.5 	in United States Code, title 42, section 1396a(aa), or under an alternative payment 
263.6 	methodology consistent with the requirements of United States Code, title 42, section 
263.7 	1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 
263.8 	alternative payment methodology shall be 100 percent of cost as determined according to 
263.9 	Medicare cost principles.
263.10 	(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
263.11 	(1) has nonprofit status as specified in chapter 317A;
263.12 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
263.13 	(3) is established to provide health services to low-income population groups, 
263.14 	uninsured, high-risk and special needs populations, underserved and other special needs 
263.15 	populations;
263.16 	(4) employs professional staff at least one-half of which are familiar with the 
263.17 	cultural background of their clients;
263.18 	(5) charges for services on a sliding fee scale designed to provide assistance to 
263.19 	low-income clients based on current poverty income guidelines and family size; and
263.20 	(6) does not restrict access or services because of a client's financial limitations or 
263.21 	public assistance status and provides no-cost care as needed.
263.22 	(h) Effective for dates of service on and after January 1, 2015, all claims for payment 
263.23 	of clinic services provided by federally qualified health centers and rural health clinics 
263.24 	shall be submitted directly to the commissioner and paid by the commissioner. The 
263.25 	commissioner shall provide claims information received by the commissioner under 
263.26 	this paragraph for recipients enrolled in managed care to managed care organizations 
263.27 	on a regular basis.
263.28 	(i) For clinic services provided prior to January 1, 2015, the commissioner shall 
263.29 	calculate and pay monthly the proposed managed care supplemental payments to clinics 
263.30 	and clinics shall conduct a timely review of the payment calculation data in order to 
263.31 	finalize all supplemental payments in accordance with federal law. Any issues arising 
263.32 	from a clinic's review must be reported to the commissioner by January 1, 2017. Upon 
263.33 	final agreement between the commissioner and a clinic on issues identified under this 
263.34 	subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no 
263.35 	supplemental payments for managed care claims for dates of service prior to January 1, 
263.36 	2015, shall be made after June 30, 2017. If the commissioner and clinics are unable to 
264.1 	resolve issues under this subdivision, the parties shall submit the dispute to the arbitration 
264.2 	process under section 14.57.

264.3 	Sec. 30. Minnesota Statutes 2012, section 256B.0751, is amended by adding a 
264.4 	subdivision to read:
264.5 		Subd. 10.Health care homes advisory committee. (a) The commissioners of 
264.6 	health and human services shall establish a health care homes advisory committee to 
264.7 	advise the commissioners on the ongoing statewide implementation of the health care 
264.8 	homes program authorized in this section.
264.9 	(b) The commissioners shall establish an advisory committee that includes 
264.10 	representatives of the health care professions such as primary care providers; mental 
264.11 	health providers; nursing and care coordinators; certified health care home clinics with 
264.12 	statewide representation; health plan companies; state agencies; employers; academic 
264.13 	researchers; consumers; and organizations that work to improve health care quality in 
264.14 	Minnesota. At least 25 percent of the committee members must be consumers or patients 
264.15 	in health care homes. The commissioners, in making appointments to the committee, shall 
264.16 	ensure geographic representation of all regions of the state.
264.17 	(c) The advisory committee shall advise the commissioners on ongoing 
264.18 	implementation of the health care homes program, including, but not limited to, the 
264.19 	following activities:
264.20 	(1) implementation of certified health care homes across the state on performance 
264.21 	management and implementation of benchmarking;
264.22 	(2) implementation of modifications to the health care homes program based on 
264.23 	results of the legislatively mandated health care home evaluation;
264.24 	(3) statewide solutions for engagement of employers and commercial payers;
264.25 	(4) potential modifications of the health care home rules or statutes;
264.26 	(5) consumer engagement, including patient and family-centered care, patient 
264.27 	activation in health care, and shared decision making;
264.28 	(6) oversight for health care home subject matter task forces or workgroups; and
264.29 	(7) other related issues as requested by the commissioners.
264.30 	(d) The advisory committee shall have the ability to establish subcommittees on 
264.31 	specific topics. The advisory committee is governed by section 15.059. Notwithstanding 
264.32 	section 15.059, the advisory committee does not expire.

264.33 	Sec. 31. Minnesota Statutes 2012, section 256B.199, is amended to read:
264.34 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
265.1 	(a) Effective July 1, 2007, The commissioner shall apply for federal matching 
265.2 	funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the 
265.3 	commissioner shall apply for matching funds for expenditures in paragraph (e).
265.4 	(b) The commissioner shall apply for federal matching funds for certified public 
265.5 	expenditures as follows:
265.6 	(1) Hennepin County, Hennepin County Medical Center, Ramsey County, and
265.7 	 Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
265.8 	 shall report quarterly to the commissioner beginning June 1, 2007, payments made during 
265.9 	the second previous quarter that may qualify for reimbursement under federal law;
265.10 	 (2) based on these reports, the commissioner shall apply for federal matching 
265.11 	funds. These funds are appropriated to the commissioner for the payments under section 
265.12 	256.969, subdivision 27; and
265.13 	 (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
265.14 	the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 
265.15 	hospital payment money expected to be available in the current federal fiscal year.
265.16 	(c) The commissioner shall apply for federal matching funds for general assistance 
265.17 	medical care expenditures as follows:
265.18 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
265.19 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
265.20 	the department shall be used to apply for federal matching funds, except as limited below:
265.21 	(i) only those general assistance medical care expenditures made to an individual 
265.22 	hospital that would not cause the hospital to exceed its individual hospital limits under 
265.23 	section 1923 of the Social Security Act may be considered; and
265.24 	(ii) general assistance medical care expenditures may be considered only to the extent 
265.25 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
265.26 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
265.27 	information required by the commissioner as necessary for purposes of obtaining federal 
265.28 	Medicaid matching funds for general assistance medical care expenditures.
265.29 	(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner 
265.30 	shall apply for additional federal matching funds available as disproportionate share 
265.31 	hospital payments under the American Recovery and Reinvestment Act of 2009. These 
265.32 	funds shall be made available as the state share of payments under section 256.969, 
265.33 	subdivision 28. The entities required to report certified public expenditures under 
265.34 	paragraph (b), clause (1), shall report additional certified public expenditures as necessary 
265.35 	under this paragraph.
266.1 	(e) (d) For services provided on or after September 1, 2011, the commissioner shall 
266.2 	apply for additional federal matching funds available as disproportionate share hospital 
266.3 	payments under the MinnesotaCare program according to the requirements and conditions 
266.4 	of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate 
266.5 	share hospital for purposes of this paragraph, if the hospital does not qualify for a payment 
266.6 	under section 256.969, subdivision 9, paragraph (b).

266.7 	Sec. 32. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:
266.8 		Subdivision 1.Personal needs allowance. (a) Notwithstanding any law to the 
266.9 	contrary, welfare allowances for clothing and personal needs for individuals receiving 
266.10 	medical assistance while residing in any skilled nursing home, intermediate care facility, 
266.11 	or medical institution including recipients of Supplemental Security Income, in this state 
266.12 	shall not be less than $45 per month from all sources. When benefit amounts for Social 
266.13 	Security or Supplemental Security Income recipients are increased pursuant to United 
266.14 	States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the 
266.15 	month in which the increase takes effect, increase by the same percentage to the nearest 
266.16 	whole dollar the clothing and personal needs allowance for individuals receiving medical 
266.17 	assistance while residing in any skilled nursing home, medical institution, or intermediate 
266.18 	care facility. The commissioner shall provide timely notice to local agencies, providers, 
266.19 	and recipients of increases under this provision.
266.20 	(b) The personal needs allowance may be paid as part of the Minnesota supplemental 
266.21 	aid program, and payments to recipients of Minnesota supplemental aid may be made once 
266.22 	each three months covering liabilities that accrued during the preceding three months.
266.23 	(c) The personal needs allowance shall be increased to include income garnished 
266.24 	for child support under a court order, up to a maximum of $250 per month but only to 
266.25 	the extent that the amount garnished is not deducted as a monthly allowance for children 
266.26 	under section 256B.0575, paragraph (a), clause (5).
266.27 	(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause 
266.28 	(1), the personal needs allowance shall be increased to include income garnished for 
266.29 	spousal maintenance under a judgment and decree for dissolution of marriage, and any 
266.30 	administrative fees garnished for collection efforts.

266.31 	Sec. 33. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34, 
266.32 	is amended to read:
266.33 		Subd. 34.Supplemental recovery program. The commissioner shall conduct a 
266.34 	supplemental recovery program for third-party liabilities, identified through coordination 
267.1 	of benefits,  not recovered by managed care plans and county-based purchasing plans for 
267.2 	state public health programs. Any third-party liability identified through coordination 
267.3 	of benefits, and recovered by the commissioner more than six eight  months after the 
267.4 	date a managed care plan or county-based purchasing plan receives adjudicates a health 
267.5 	care claim, shall be retained by the commissioner and deposited in the general fund. 
267.6 	The commissioner shall establish a mechanism, including a reconciliation process,  for 
267.7 	managed care plans and county-based purchasing plans to coordinate third-party liability 
267.8 	collections efforts resulting from coordination of benefits under this subdivision with the 
267.9 	commissioner to ensure there is no duplication of efforts. The coordination mechanism 
267.10 	must be consistent with the reporting requirements in subdivision 9c. The commissioner 
267.11 	shall share accurate and timely third-party liability data with managed care organizations.

267.12 	Sec. 34. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to 
267.13 	read:

267.14 	EFFECTIVE DATE. This section is effective January July 1, 2014.

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

267.16 	Sec. 35. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.
 267.17 	The commissioner of human services, in consultation with interested stakeholders, 
267.18 	shall review medical assistance spenddown requirements and processes, including those 
267.19 	used in other states, for individuals with disabilities and seniors age 65 years of age or 
267.20 	older. Based on this review, the commissioner shall recommend alternative medical 
267.21 	assistance spenddown payment requirements and processes that:
267.22 	(1) are practical for current and potential medical assistance recipients, providers, 
267.23 	and the Department of Human Services;
267.24 	(2) improve the medical assistance payment process for providers; and
267.25 	(3) allow current and potential medical assistance recipients to obtain consistent 
267.26 	and affordable medical coverage.
267.27 	The commissioner shall report these recommendations, along with the projected cost, 
267.28 	to the chairs and ranking minority members of the legislative committees and divisions 
267.29 	with jurisdiction over health and human services policy and finance by November 15, 2015.

267.30 	Sec. 36.  REPEALER.
 267.31 	Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 
267.32 	21, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed.

268.1 	ARTICLE 27
268.2 	CHILDREN AND FAMILY SERVICES AND NORTHSTAR 
268.3 	CARE FOR CHILDREN

268.4 	Section 1. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
268.5 		Subd. 5.Fingerprints. (a) Except as provided in paragraph (c), for any background 
268.6 	study completed under this chapter, when the commissioner has reasonable cause to 
268.7 	believe that further pertinent information may exist on the subject of the background 
268.8 	study, the subject shall provide the commissioner with a set of classifiable fingerprints 
268.9 	obtained from an authorized agency.
268.10 	(b) For purposes of requiring fingerprints, the commissioner has reasonable cause 
268.11 	when, but not limited to, the:
268.12 	(1) information from the Bureau of Criminal Apprehension indicates that the subject 
268.13 	is a multistate offender;
268.14 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
268.15 	offender status is undetermined; or
268.16 	(3) commissioner has received a report from the subject or a third party indicating 
268.17 	that the subject has a criminal history in a jurisdiction other than Minnesota.
268.18 	(c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for 
268.19 	background studies conducted by the commissioner for child foster care or, adoptions, or a 
268.20 	transfer of permanent legal and physical custody of a child, the subject of the background 
268.21 	study, who is 18 years of age or older, shall provide the commissioner with a set of 
268.22 	classifiable fingerprints obtained from an authorized agency.

268.23 	Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is 
268.24 	amended to read:
268.25 		Subdivision 1.Background studies conducted by Department of Human 
268.26 	Services. (a) For a background study conducted by the Department of Human Services, 
268.27 	the commissioner shall review:
268.28 	(1) information related to names of substantiated perpetrators of maltreatment of 
268.29 	vulnerable adults that has been received by the commissioner as required under section 
268.30 	626.557, subdivision 9c, paragraph (j);
268.31 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
268.32 	programs, and from findings of maltreatment of minors as indicated through the social 
268.33 	service information system;
269.1 	(3) information from juvenile courts as required in subdivision 4 for individuals 
269.2 	listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
269.3 	(4) information from the Bureau of Criminal Apprehension, including information 
269.4 	regarding a background study subject's registration in Minnesota as a predatory offender 
269.5 	under section 243.166;
269.6 	(5) except as provided in clause (6), information from the national crime information 
269.7 	system when the commissioner has reasonable cause as defined under section 245C.05, 
269.8 	subdivision 5; and
269.9 	(6) for a background study related to a child foster care application for licensure, a 
269.10 	transfer of permanent legal and physical custody of a child under sections 260C.503 to 
269.11 	260C.515, or adoptions, the commissioner shall also review:
269.12 	(i) information from the child abuse and neglect registry for any state in which the 
269.13 	background study subject has resided for the past five years; and
269.14 	(ii) information from national crime information databases, when the background 
269.15 	study subject is 18 years of age or older.
269.16 	(b) Notwithstanding expungement by a court, the commissioner may consider 
269.17 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
269.18 	received notice of the petition for expungement and the court order for expungement is 
269.19 	directed specifically to the commissioner.
269.20 	(c) The commissioner shall also review criminal case information received according 
269.21 	to section 245C.04, subdivision 4a, from the Minnesota court information system that 
269.22 	relates to individuals who have already been studied under this chapter and who remain 
269.23 	affiliated with the agency that initiated the background study.

269.24 	Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
269.25 		Subdivision 1.Background studies conducted by commissioner. (a) Before 
269.26 	placement of a child for purposes of adoption, the commissioner shall conduct a 
269.27 	background study on individuals listed in section sections259.41, subdivision 3, and 
269.28 	260C.611, for county agencies and private agencies licensed to place children for adoption.
269.29 	 When a prospective adoptive parent is seeking to adopt a child who is currently placed in 
269.30 	the prospective adoptive parent's home and is under the guardianship of the commissioner 
269.31 	according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive 
269.32 	parent holds a child foster care license, a new background study is not required when:
269.33 	(1) a background study was completed on persons required to be studied under section 
269.34 	245C.03 in connection with the application for child foster care licensure after July 1, 2007;
270.1 	(2) the background study included a review of the information in section 245C.08, 
270.2 	subdivisions 1, 3, and 4; and
270.3 	(3) as a result of the background study, the individual was either not disqualified 
270.4 	or, if disqualified, the disqualification was set aside under section 245C.22, or a variance 
270.5 	was issued under section 245C.30.
270.6 	(b) Before the kinship placement agreement is signed for the purpose of transferring 
270.7 	permanent legal and physical custody to a relative under sections 260C.503 to 260C.515, 
270.8 	the commissioner shall conduct a background study on each person age 13 or older living 
270.9 	in the home. When a prospective relative custodian has a child foster care license, a new 
270.10 	background study is not required when:
270.11 	(1) a background study was completed on persons required to be studied under section 
270.12 	245C.03 in connection with the application for child foster care licensure after July 1, 2007;
270.13 	(2) the background study included a review of the information in section 245C.08, 
270.14 	subdivisions 1, 3, and 4; and
270.15 	(3) as a result of the background study, the individual was either not disqualified or, 
270.16 	if disqualified, the disqualification was set aside under section 245C.22, or a variance was 
270.17 	issued under section 245C.30. The commissioner and the county agency shall expedite any 
270.18 	request for a set aside or variance for a background study required under chapter 256N.

270.19 	Sec. 4. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
270.20 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
270.21 	the following information regarding the background study subject:
270.22 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
270.23 	(2) information from the child abuse and neglect registry for any state in which the 
270.24 	subject has resided for the past five years; and
270.25 	(3) information from national crime information databases, when required under 
270.26 	section 245C.08.
270.27 	(b) The commissioner shall provide any information collected under this subdivision 
270.28 	to the county or private agency that initiated the background study. The commissioner 
270.29 	shall also provide the agency:
270.30 	(1) notice whether the information collected shows that the subject of the background 
270.31 	study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
270.32 	(2) for background studies conducted under subdivision 1, paragraph (a), the date of 
270.33 	all adoption-related background studies completed on the subject by the commissioner 
270.34 	after June 30, 2007, and the name of the county or private agency that initiated the 
270.35 	adoption-related background study.

271.1 	Sec. 5. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:
271.2 		Subd. 13.Work activity. (a) "Work activity" means any activity in a participant's 
271.3 	approved employment plan that leads to employment. For purposes of the MFIP program, 
271.4 	this includes activities that meet the definition of work activity under the participation 
271.5 	requirements of TANF. Work activity includes:
271.6 	(1) unsubsidized employment, including work study and paid apprenticeships or 
271.7 	internships;
271.8 	(2) subsidized private sector or public sector employment, including grant diversion 
271.9 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid 
271.10 	work experience, and supported work when a wage subsidy is provided;
271.11 	(3) unpaid work experience, including community service, volunteer work, 
271.12 	the community work experience program as specified in section 256J.67, unpaid 
271.13 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
271.14 	Unpaid work experience is only an option if the participant has been unable to obtain or 
271.15 	maintain paid employment in the competitive labor market, and no paid work experience 
271.16 	programs are available to the participant. Prior to placing a participant in unpaid work, 
271.17 	the county must inform the participant that the participant will be notified if a paid work 
271.18 	experience or supported work position becomes available. Unless a participant consents in 
271.19 	writing to participate in unpaid work experience, the participant's employment plan may 
271.20 	only include unpaid work experience if including the unpaid work experience in the plan 
271.21 	will meet the following criteria:
271.22 	(i) the unpaid work experience will provide the participant specific skills or 
271.23 	experience that cannot be obtained through other work activity options where the 
271.24 	participant resides or is willing to reside; and
271.25 	(ii) the skills or experience gained through the unpaid work experience will result 
271.26 	in higher wages for the participant than the participant could earn without the unpaid 
271.27 	work experience;
271.28 	(4) job search including job readiness assistance, job clubs, job placement, 
271.29 	job-related counseling, and job retention services;
271.30 	(5) job readiness education, including English as a second language (ESL) or 
271.31 	functional work literacy classes as limited by the provisions of section 256J.531, 
271.32 	subdivision 2, general educational development (GED) or Minnesota adult diploma course 
271.33 	work, high school completion, and adult basic education as limited by the provisions of 
271.34 	section 256J.531, subdivision 1;
272.1 	(6) job skills training directly related to employment, including postsecondary 
272.2 	education and training that can reasonably be expected to lead to employment, as limited 
272.3 	by the provisions of section 256J.53;
272.4 	(7) providing child care services to a participant who is working in a community 
272.5 	service program;
272.6 	(8) activities included in the employment plan that is developed under section 
272.7 	256J.521, subdivision 3; and
272.8 	(9) preemployment activities including chemical and mental health assessments, 
272.9 	treatment, and services; learning disabilities services; child protective services; family 
272.10 	stabilization services; or other programs designed to enhance employability.
272.11 	(b) "Work activity" does not include activities done for political purposes as defined 
272.12 	in section 211B.01, subdivision 6.

272.13 	Sec. 6. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:
272.14 		Subdivision 1.Length of program. (a) In order for a postsecondary education 
272.15 	or training program to be an approved work activity as defined in section 256J.49, 
272.16 	subdivision 13, clause (6), it must be a program lasting 24 monthsfour years or less, and 
272.17 	the participant must meet the requirements of subdivisions 2, 3, and 5.
272.18 	(b) Participants with a high school diploma, general educational development (GED) 
272.19 	credential, or Minnesota adult diploma must be informed of the opportunity to participate 
272.20 	in postsecondary education or training while in the Minnesota family investment program.

272.21 	Sec. 7. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:
272.22 		Subd. 2.Approval of postsecondary education or training. (a) In order for a 
272.23 	postsecondary education or training program to be an approved activity in an employment 
272.24 	plan, the plan must include additional work activities if the education and training 
272.25 	activities do not meet the minimum hours required to meet the federal work participation 
272.26 	rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.
272.27 	(b) Participants seeking approval of a who are interested in participating in
272.28 	 postsecondary education or training plan as part of their employment plan must provide 
272.29 	documentation that discuss their education plans with their job counselor. Job counselors 
272.30 	must work with participants to evaluate options by:
272.31 	(1) the employment goal can only be met with the additional education or training;
272.32 	(2)advising whether there are suitable employment opportunities that require the 
272.33 	specific education or training in the area in which the participant resides or is willing 
272.34 	to reside;
273.1 	(3) the education or training will result in significantly higher wages for the 
273.2 	participant than the participant could earn without the education or training;
273.3 	(4) (2)assisting the participant in exploring whether the participant can meet the 
273.4 	requirements for admission into the program; and
273.5 	(5) (3)there is a reasonable expectation that the participant will complete the training 
273.6 	program discussing the participant's strengths and challenges based on such factors as the 
273.7 	participant's MFIP assessment, previous education, training, and work history; current 
273.8 	motivation; and changes in previous circumstances.
273.9 	(b) The requirements of this subdivision do not apply to participants who are in:
273.10 	(1) a recognized career pathway program that leads to stackable credentials;
273.11 	(2) a training program lasting 12 weeks or less; or
273.12 	(3) the final year of a multi-year postsecondary education or training program.

273.13 	Sec. 8. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:
273.14 		Subd. 5.Requirements after postsecondary education or training. Upon 
273.15 	completion of an approved education or training program, a participant who does not meet 
273.16 	the participation requirements in section 256J.55, subdivision 1, through unsubsidized 
273.17 	employment must participate in job search. If, after six12 weeks of job search, the 
273.18 	participant does not find a full-time job consistent with the employment goal, the 
273.19 	participant must accept any offer of full-time suitable employment, or meet with the job 
273.20 	counselor to revise the employment plan to include additional work activities necessary to 
273.21 	meet hourly requirements.

273.22 	Sec. 9. Minnesota Statutes 2012, section 256J.531, is amended to read:
273.23 	256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
273.24 		Subdivision 1.Approval of adult basic education. With the exception of classes 
273.25 	related to obtaining a general educational development credential (GED), a participant 
273.26 	must have reading or mathematics proficiency below a ninth grade level in order for adult 
273.27 	basic education classes to be anA participant who lacks a high school diploma, general 
273.28 	educational development (GED) credential, or Minnesota adult diploma must be allowed 
273.29 	to pursue these credentials as an approved work activity, provided that the participant 
273.30 	is making satisfactory progress. Participants eligible to pursue a general educational 
273.31 	development (GED) credential or Minnesota adult diploma under this subdivision must 
273.32 	be informed of the opportunity to participate while in the Minnesota family investment 
273.33 	program. The employment plan must also specify that the participant fulfill no more than 
274.1 	one-half of the participation requirements in section 256J.55, subdivision 1, through 
274.2 	attending adult basic education or general educational development classes.
274.3 		Subd. 2.Approval of English as a second language. In order for English as a 
274.4 	second language (ESL) classes to be an approved work activity in an employment plan, a 
274.5 	participant must be below a spoken language proficiency level of SPL6 or its equivalent, 
274.6 	as measured by a nationally recognized test. In approving ESL as a work activity, the job 
274.7 	counselor must give preference to enrollment in a functional work literacy program, 
274.8 	if one is available, over a regular ESL program. A participant may not be approved 
274.9 	for more than a combined total of 24 months of ESL classes while participating in the 
274.10 	diversionary work program and the employment and training services component of 
274.11 	MFIP. The employment plan must also specify that the participant fulfill no more than 
274.12 	one-half of the participation requirements in section 256J.55, subdivision 1, through 
274.13 	attending ESL classes. For participants enrolled in functional work literacy classes, no 
274.14 	more than two-thirds of the participation requirements in section 256J.55, subdivision 1, 
274.15 	may be met through attending functional work literacy classes.

274.16 	Sec. 10. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is 
274.17 	amended to read:
274.18 		Subdivision 1.General eligibility requirements. (a) To be eligible for guardianship 
274.19 	assistance under this section, there must be a judicial determination under section 
274.20 	260C.515, subdivision 4, that a transfer of permanent legal and physical custody to a 
274.21 	relative is in the child's best interest. For a child under jurisdiction of a tribal court, a 
274.22 	judicial determination under a similar provision in tribal code indicating that a relative 
274.23 	will assume the duty and authority to provide care, control, and protection of a child who 
274.24 	is residing in foster care, and to make decisions regarding the child's education, health 
274.25 	care, and general welfare until adulthood, and that this is in the child's best interest is 
274.26 	considered equivalent. Additionally, a child must:
274.27 	(1) have been removed from the child's home pursuant to a voluntary placement 
274.28 	agreement or court order;
274.29 	(2)(i) have resided in with the prospective relative custodian who has been a 
274.30 	licensed child foster care parent for at least six consecutive months in the home of the 
274.31 	prospective relative custodian; or
274.32 	(ii) have received from the commissioner an exemption from the requirement in item 
274.33 	(i) from the court that the prospective relative custodian has been a licensed child foster 
274.34 	parent for at least six consecutive months, based on a determination that:
274.35 	(A) an expedited move to permanency is in the child's best interest;
275.1 	(B) expedited permanency cannot be completed without provision of guardianship 
275.2 	assistance; and
275.3 	(C) the prospective relative custodian is uniquely qualified to meet the child's needs, 
275.4 	as defined in section 260C.212, subdivision 2, on a permanent basis;
275.5 	(D) the child and prospective relative custodian meet the eligibility requirements 
275.6 	of this section; and
275.7 	(E) efforts were made by the legally responsible agency to place the child with the 
275.8 	prospective relative custodian as a licensed child foster parent for six consecutive months 
275.9 	before permanency, or an explanation why these efforts were not in the child's best interests;
275.10 	(3) meet the agency determinations regarding permanency requirements in 
275.11 	subdivision 2;
275.12 	(4) meet the applicable citizenship and immigration requirements in subdivision 3;
275.13 	(5) have been consulted regarding the proposed transfer of permanent legal and 
275.14 	physical custody to a relative, if the child is at least 14 years of age or is expected to attain 
275.15 	14 years of age prior to the transfer of permanent legal and physical custody; and
275.16 	(6) have a written, binding agreement under section 256N.25 among the caregiver or 
275.17 	caregivers, the financially responsible agency, and the commissioner established prior to 
275.18 	transfer of permanent legal and physical custody.
275.19 	(b) In addition to the requirements in paragraph (a), the child's prospective relative 
275.20 	custodian or custodians must meet the applicable background study requirements in 
275.21 	subdivision 4.
275.22 	(c) To be eligible for title IV-E guardianship assistance, a child must also meet any 
275.23 	additional criteria in section 473(d) of the Social Security Act. The sibling of a child 
275.24 	who meets the criteria for title IV-E guardianship assistance in section 473(d) of the 
275.25 	Social Security Act is eligible for title IV-E guardianship assistance if the child and 
275.26 	sibling are placed with the same prospective relative custodian or custodians, and the 
275.27 	legally responsible agency, relatives, and commissioner agree on the appropriateness of 
275.28 	the arrangement for the sibling. A child who meets all eligibility criteria except those 
275.29 	specific to title IV-E guardianship assistance is entitled to guardianship assistance paid 
275.30 	through funds other than title IV-E.

275.31 	Sec. 11. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is 
275.32 	amended to read:
275.33 		Subd. 2.Agency determinations regarding permanency. (a) To be eligible for 
275.34 	guardianship assistance, the legally responsible agency must complete the following 
276.1 	determinations regarding permanency for the child prior to the transfer of permanent 
276.2 	legal and physical custody:
276.3 	(1) a determination that reunification and adoption are not appropriate permanency 
276.4 	options for the child; and
276.5 	(2) a determination that the child demonstrates a strong attachment to the prospective 
276.6 	relative custodian and the prospective relative custodian has a strong commitment to 
276.7 	caring permanently for the child.
276.8 	(b) The legally responsible agency shall document the determinations in paragraph 
276.9 	(a) and the eligibility requirements in this section that comply with United States Code, 
276.10 	title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a 
276.11 	kinship placement agreement, which must be in the format prescribed by the commissioner 
276.12 	and must be signed by the prospective relative custodian and the legally responsible 
276.13 	agency. In the case of a Minnesota tribe, the determinations and eligibility requirements 
276.14 	in this section may be provided in an alternative format approved by the commissioner.
276.15 	 Supporting information for completing each determination must be documented in the 
276.16 	legally responsible agency's case file and make them available for review as requested 
276.17 	by the financially responsible agency and the commissioner during the guardianship 
276.18 	assistance eligibility determination process.

276.19 	Sec. 12. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is 
276.20 	amended to read:
276.21 		Subd. 4.Background study. (a) A background study under section 245C.33 must be 
276.22 	completed on each prospective relative custodian and any other adult residing in the home 
276.23 	of the prospective relative custodian. The background study must meet the requirements of 
276.24 	United States Code, title 42, section 671(a)(20). A study completed under section 245C.33 
276.25 	meets this requirement. A background study on the prospective relative custodian or adult 
276.26 	residing in the household previously completed under section 245C.04 chapter 245C for the 
276.27 	purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota 
276.28 	tribe, shall be used for the purposes of this section, provided that the background study is 
276.29 	current meets the requirements of this subdivision and the prospective relative custodian is 
276.30 	a licensed child foster parent at the time of the application for guardianship assistance.
276.31 	(b) If the background study reveals:
276.32 	(1) a felony conviction at any time for:
276.33 	(i) child abuse or neglect;
276.34 	(ii) spousal abuse;
276.35 	(iii) a crime against a child, including child pornography; or
277.1 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
277.2 	including other physical assault or battery; or
277.3 	(2) a felony conviction within the past five years for:
277.4 	(i) physical assault;
277.5 	(ii) battery; or
277.6 	(iii) a drug-related offense;
277.7 	the prospective relative custodian is prohibited from receiving guardianship assistance 
277.8 	on behalf of an otherwise eligible child.

277.9 	Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is 
277.10 	amended to read:
277.11 		Subd. 4.Background study. (a) A background study under section 259.41 must be 
277.12 	completed on each prospective adoptive parent. and all other adults residing in the home. 
277.13 	A background study must meet the requirements of United States Code, title 42, section 
277.14 	671(a)(20). A study completed under section 245C.33 meets this requirement. If the 
277.15 	prospective adoptive parent is a licensed child foster parent licensed under chapter 245A 
277.16 	or by a Minnesota tribe, the background study previously completed for the purposes of 
277.17 	child foster care licensure shall be used for the purpose of this section, provided that the 
277.18 	background study meets all other requirements of this subdivision and the prospective 
277.19 	adoptive parent is a licensed child foster parent at the time of the application for adoption 
277.20 	assistance.
277.21 	(b) If the background study reveals:
277.22 	(1) a felony conviction at any time for:
277.23 	(i) child abuse or neglect;
277.24 	(ii) spousal abuse;
277.25 	(iii) a crime against a child, including child pornography; or
277.26 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
277.27 	including other physical assault or battery; or
277.28 	(2) a felony conviction within the past five years for:
277.29 	(i) physical assault;
277.30 	(ii) battery; or
277.31 	(iii) a drug-related offense;
277.32 	the adoptive parent is prohibited from receiving adoption assistance on behalf of an 
277.33 	otherwise eligible child.

278.1 	Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is 
278.2 	amended to read:
278.3 		Subd. 2.Negotiation of agreement. (a) When a child is determined to be eligible 
278.4 	for guardianship assistance or adoption assistance, the financially responsible agency, or, 
278.5 	if there is no financially responsible agency, the agency designated by the commissioner, 
278.6 	must negotiate with the caregiver to develop an agreement under subdivision 1. If and when 
278.7 	the caregiver and agency reach concurrence as to the terms of the agreement, both parties 
278.8 	shall sign the agreement. The agency must submit the agreement, along with the eligibility 
278.9 	determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to 
278.10 	the commissioner for final review, approval, and signature according to subdivision 1.
278.11 	(b) A monthly payment is provided as part of the adoption assistance or guardianship 
278.12 	assistance agreement to support the care of children unless the child is eligible for adoption 
278.13 	assistance and determined to be an at-risk child, in which case the special at-risk monthly 
278.14 	payment under section 256N.26, subdivision 7, must no payment will be made unless and 
278.15 	until the caregiver obtains written documentation from a qualified expert that the potential 
278.16 	disability upon which eligibility for the agreement was based has manifested itself.
278.17 	(1) The amount of the payment made on behalf of a child eligible for guardianship 
278.18 	assistance or adoption assistance is determined through agreement between the prospective 
278.19 	relative custodian or the adoptive parent and the financially responsible agency, or, if there 
278.20 	is no financially responsible agency, the agency designated by the commissioner, using 
278.21 	the assessment tool established by the commissioner in section 256N.24, subdivision 2, 
278.22 	and the associated benefit and payments outlined in section 256N.26. Except as provided 
278.23 	under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes 
278.24 	the monthly benefit level for a child under foster care. The monthly payment under a 
278.25 	guardianship assistance agreement or adoption assistance agreement may be negotiated up 
278.26 	to the monthly benefit level under foster care. In no case may the amount of the payment 
278.27 	under a guardianship assistance agreement or adoption assistance agreement exceed the 
278.28 	foster care maintenance payment which would have been paid during the month if the 
278.29 	child with respect to whom the guardianship assistance or adoption assistance payment is 
278.30 	made had been in a foster family home in the state.
278.31 	(2) The rate schedule for the agreement is determined based on the age of the 
278.32 	child on the date that the prospective adoptive parent or parents or relative custodian or 
278.33 	custodians sign the agreement.
278.34 	(3) The income of the relative custodian or custodians or adoptive parent or parents 
278.35 	must not be taken into consideration when determining eligibility for guardianship 
278.36 	assistance or adoption assistance or the amount of the payments under section 256N.26.
279.1 	(4) With the concurrence of the relative custodian or adoptive parent, the amount of 
279.2 	the payment may be adjusted periodically using the assessment tool established by the 
279.3 	commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under 
279.4 	subdivision 3 when there is a change in the child's needs or the family's circumstances.
279.5 	(5) The guardianship assistance or adoption assistance agreement of a child who is 
279.6 	identified as at-risk receives the special at-risk monthly payment under section 256N.26, 
279.7 	subdivision 7, unless and until the potential disability manifests itself, as documented by 
279.8 	an appropriate professional, and the commissioner authorizes commencement of payment 
279.9 	by modifying the agreement accordingly. A relative custodian or An adoptive parent 
279.10 	of an at-risk child with a guardianship assistance or an adoption assistance agreement 
279.11 	may request a reassessment of the child under section 256N.24, subdivision 9 10, and 
279.12 	renegotiation of the guardianship assistance or adoption assistance agreement under 
279.13 	subdivision 3 to include a monthly payment, if the caregiver has written documentation 
279.14 	from a qualified expert that the potential disability upon which eligibility for the agreement 
279.15 	was based has manifested itself. Documentation of the disability must be limited to 
279.16 	evidence deemed appropriate by the commissioner.
279.17 	(c) For guardianship assistance agreements:
279.18 	(1) the initial amount of the monthly guardianship assistance payment must be 
279.19 	equivalent to the foster care rate in effect at the time that the agreement is signed less any 
279.20 	offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to 
279.21 	by the prospective relative custodian and specified in that agreement, unless the child is 
279.22 	identified as at-risk or the guardianship assistance agreement is entered into when a child 
279.23 	is under the age of six; and
279.24 	(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 
279.25 	receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 
279.26 	and until the potential disability manifests itself, as documented by a qualified expert, and 
279.27 	the commissioner authorizes commencement of payment by modifying the agreement 
279.28 	accordingly; and
279.29 	(3) (2) the amount of the monthly payment for a guardianship assistance agreement 
279.30 	for a child, other than an at-risk child, who is under the age of six must be as specified in 
279.31 	section 256N.26, subdivision 5.
279.32 	(d) For adoption assistance agreements:
279.33 	(1) for a child in foster care with the prospective adoptive parent immediately prior 
279.34 	to adoptive placement, the initial amount of the monthly adoption assistance payment 
279.35 	must be equivalent to the foster care rate in effect at the time that the agreement is signed 
279.36 	less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed 
280.1 	to by the prospective adoptive parents and specified in that agreement, unless the child is 
280.2 	identified as at-risk or the adoption assistance agreement is entered into when a child is 
280.3 	under the age of six;
280.4 	(2) for an at-risk child who must be assigned level A as outlined in section 
280.5 	256N.26and receive the special at-risk monthly payment under section 256N.26, 
280.6 	subdivision 7, no payment will be made  unless and until the potential disability manifests 
280.7 	itself, as documented by an appropriate professional, and the commissioner authorizes 
280.8 	commencement of payment by modifying the agreement accordingly;
280.9 	(3) the amount of the monthly payment for an adoption assistance agreement for 
280.10 	a child under the age of six, other than an at-risk child, must be as specified in section 
280.11 	256N.26, subdivision 5;
280.12 	(4) for a child who is in the guardianship assistance program immediately prior 
280.13 	to adoptive placement, the initial amount of the adoption assistance payment must be 
280.14 	equivalent to the guardianship assistance payment in effect at the time that the adoption 
280.15 	assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive 
280.16 	parent and specified in that agreement, unless the child is identified as an at-risk child; and
280.17 	(5) for a child who is not in foster care placement or the guardianship assistance 
280.18 	program immediately prior to adoptive placement or negotiation of the adoption assistance 
280.19 	agreement, the initial amount of the adoption assistance agreement must be determined 
280.20 	using the assessment tool and process in this section and the corresponding payment 
280.21 	amount outlined in section 256N.26.

280.22 	Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is 
280.23 	amended to read:
280.24 		Subd. 3.Renegotiation of agreement. (a) A relative custodian or adoptive 
280.25 	parent of a child with a guardianship assistance or adoption assistance agreement may 
280.26 	request renegotiation of the agreement when there is a change in the needs of the child 
280.27 	or in the family's circumstances. When a relative custodian or adoptive parent requests 
280.28 	renegotiation of the agreement, a reassessment of the child must be completed consistent 
280.29 	with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the 
280.30 	child's level has changed, the financially responsible agency or, if there is no financially 
280.31 	responsible agency, the agency designated by the commissioner or the commissioner's 
280.32 	designee, and the caregiver must renegotiate the agreement to include a payment with 
280.33 	the level determined through the reassessment process. The agreement must not be 
280.34 	renegotiated unless the commissioner, the financially responsible agency, and the caregiver 
281.1 	mutually agree to the changes. The effective date of any renegotiated agreement must be 
281.2 	determined by the commissioner.
281.3 	(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship 
281.4 	assistance or an adoption assistance agreement may request renegotiation of the agreement 
281.5 	to include a monthly payment higher than the special at-risk monthly payment under 
281.6 	section 256N.26, subdivision 7, if the caregiver has written documentation from a 
281.7 	qualified expert that the potential disability upon which eligibility for the agreement 
281.8 	was based has manifested itself. Documentation of the disability must be limited to 
281.9 	evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a 
281.10 	reassessment of the child must be conducted as outlined in section 256N.24, subdivision 
281.11 	9. The reassessment must be used to renegotiate the agreement to include an appropriate 
281.12 	monthly payment. The agreement must not be renegotiated unless the commissioner, the 
281.13 	financially responsible agency, and the caregiver mutually agree to the changes. The 
281.14 	effective date of any renegotiated agreement must be determined by the commissioner.
281.15 	(c) Renegotiation of a guardianship assistance or adoption assistance agreement is 
281.16 	required when one of the circumstances outlined in section 256N.26, subdivision 13, 
281.17 	occurs.

281.18 	Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is 
281.19 	amended to read:
281.20 		Subdivision 1.Benefits. (a) There are three benefits under Northstar Care for 
281.21 	Children: medical assistance, basic payment, and supplemental difficulty of care payment.
281.22 	(b) A child is eligible for medical assistance under subdivision 2.
281.23 	(c) A child is eligible for the basic payment under subdivision 3, except for a child 
281.24 	assigned level A under section 256N.24, subdivision 1, because the child is determined to 
281.25 	be an at-risk child receiving guardianship assistance or adoption assistance.
281.26 	(d) A child, including a foster child age 18 to 21, is eligible for an additional 
281.27 	supplemental difficulty of care payment under subdivision 4, as determined by the 
281.28 	assessment under section 256N.24.
281.29 	(e) An eligible child entering guardianship assistance or adoption assistance under 
281.30 	the age of six receives a basic payment and supplemental difficulty of care payment as 
281.31 	specified in subdivision 5.
281.32 	(f) A child transitioning in from a pre-Northstar Care for Children program under 
281.33 	section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental 
281.34 	payments according to those provisions.

282.1 	Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is 
282.2 	amended to read:
282.3 		Subd. 4.Nonfederal share. (a) The commissioner shall establish a percentage share 
282.4 	of the maintenance payments, reduced by federal reimbursements under title IV-E of the 
282.5 	Social Security Act, to be paid by the state and to be paid by the financially responsible 
282.6 	agency.
282.7 	(b) These state and local shares must initially be calculated based on the ratio of the 
282.8 	average appropriate expenditures made by the state and all financially responsible agencies 
282.9 	during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation, 
282.10 	appropriate expenditures for the financially responsible agencies must include basic and 
282.11 	difficulty of care payments for foster care reduced by federal reimbursements, but not 
282.12 	including any initial clothing allowance, administrative payments to child care agencies 
282.13 	specified in section 317A.907, child care, or other support or ancillary expenditures. For 
282.14 	purposes of this calculation, appropriate expenditures for the state shall include adoption 
282.15 	assistance and relative custody assistance, reduced by federal reimbursements.
282.16 	(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017, 
282.17 	2018, and 2019, the commissioner shall adjust this initial percentage of state and local 
282.18 	shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and 
282.19 	2014, taking into account appropriations for Northstar Care for Children and the turnover 
282.20 	rates of the components. In making these adjustments, the commissioner's goal shall be to 
282.21 	make these state and local expenditures other than the appropriations for Northstar Care 
282.22 	for Children to be the same as they would have been had Northstar Care for Children not 
282.23 	been implemented, or if that is not possible, proportionally higher or lower, as appropriate. 
282.24 	Except for adjustments so that the costs of the phase-in are borne by the state, the state and 
282.25 	local share percentages for fiscal year 2019 must be used for all subsequent years.

282.26 	Sec. 18. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
282.27 		Subd. 11.Financial considerations. (a) Payment of relative custody assistance 
282.28 	under a relative custody assistance agreement is subject to the availability of state funds 
282.29 	and payments may be reduced or suspended on order of the commissioner if insufficient 
282.30 	funds are available.
282.31 	(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner 
282.32 	shall reimburse the local agency in an amount equal to 100 percent of the relative custody 
282.33 	assistance payments provided to relative custodians. The A local agency may not seek and 
282.34 	the commissioner shall not provide reimbursement for the administrative costs associated 
282.35 	with performing the duties described in subdivision 4.
283.1 	(c) For the purposes of determining eligibility or payment amounts under MFIP, 
283.2 	relative custody assistance payments shall be excluded in determining the family's 
283.3 	available income.
283.4 	(d) For expenditures made on or before December 31, 2014, upon receipt from a 
283.5 	local agency of a claim for reimbursement, the commissioner shall reimburse the local 
283.6 	agency in an amount equal to 100 percent of the relative custody assistance payments 
283.7 	provided to relative custodians.
283.8 	(e) For expenditures made on or after January 1, 2015, upon receipt from a local 
283.9 	agency of a claim for reimbursement, the commissioner shall reimburse the local agency as 
283.10 	part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

283.11 	Sec. 19. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
283.12 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan 
283.13 	shall be prepared within 30 days after any child is placed in foster care by court order or a 
283.14 	voluntary placement agreement between the responsible social services agency and the 
283.15 	child's parent pursuant to section 260C.227 or chapter 260D.
283.16 	(b) An out-of-home placement plan means a written document which is prepared 
283.17 	by the responsible social services agency jointly with the parent or parents or guardian 
283.18 	of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 
283.19 	child is an Indian child, the child's foster parent or representative of the foster care facility, 
283.20 	and, where appropriate, the child. For a child in voluntary foster care for treatment under 
283.21 	chapter 260D, preparation of the out-of-home placement plan shall additionally include 
283.22 	the child's mental health treatment provider. As appropriate, the plan shall be:
283.23 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
283.24 	(2) ordered by the court, either as presented or modified after hearing, under section 
283.25 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
283.26 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad 
283.27 	litem, a representative of the child's tribe, the responsible social services agency, and, if 
283.28 	possible, the child.
283.29 	(c) The out-of-home placement plan shall be explained to all persons involved in its 
283.30 	implementation, including the child who has signed the plan, and shall set forth:
283.31 	(1) a description of the foster care home or facility selected, including how the 
283.32 	out-of-home placement plan is designed to achieve a safe placement for the child in the 
283.33 	least restrictive, most family-like, setting available which is in close proximity to the home 
283.34 	of the parent or parents or guardian of the child when the case plan goal is reunification, 
284.1 	and how the placement is consistent with the best interests and special needs of the child 
284.2 	according to the factors under subdivision 2, paragraph (b);
284.3 	(2) the specific reasons for the placement of the child in foster care, and when 
284.4 	reunification is the plan, a description of the problems or conditions in the home of the 
284.5 	parent or parents which necessitated removal of the child from home and the changes the 
284.6 	parent or parents must make in order for the child to safely return home;
284.7 	(3) a description of the services offered and provided to prevent removal of the child 
284.8 	from the home and to reunify the family including:
284.9 	(i) the specific actions to be taken by the parent or parents of the child to eliminate 
284.10 	or correct the problems or conditions identified in clause (2), and the time period during 
284.11 	which the actions are to be taken; and
284.12 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 
284.13 	to achieve a safe and stable home for the child including social and other supportive 
284.14 	services to be provided or offered to the parent or parents or guardian of the child, the 
284.15 	child, and the residential facility during the period the child is in the residential facility;
284.16 	(4) a description of any services or resources that were requested by the child or the 
284.17 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
284.18 	in the residential facility, and whether those services or resources were provided and if 
284.19 	not, the basis for the denial of the services or resources;
284.20 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined 
284.21 	in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed 
284.22 	together in foster care, and whether visitation is consistent with the best interest of the 
284.23 	child, during the period the child is in foster care;
284.24 	(6) when a child cannot return to or be in the care of either parent, documentation of 
284.25 	steps to finalize the permanency plan for the child, including:
284.26 	(i) reasonable efforts to place the child for adoption or legal guardianship of the child 
284.27 	if the court has issued an order terminating the rights of both parents of the child or of the 
284.28 	only known, living parent of the child. At a minimum, the documentation must include 
284.29 	consideration of whether adoption is in the best interests of the child, child-specific 
284.30 	recruitment efforts such as relative search and the use of state, regional, and national 
284.31 	adoption exchanges to facilitate orderly and timely placements in and outside of the state. 
284.32 	A copy of this documentation shall be provided to the court in the review required under 
284.33 	section 260C.317, subdivision 3, paragraph (b); and
284.34 	(ii) documentation necessary to support the requirements of the kinship placement 
284.35 	agreement under section 256N.22 when adoption is determined not to be in the child's 
284.36 	best interest;
285.1 	(7) efforts to ensure the child's educational stability while in foster care, including:
285.2 	(i) efforts to ensure that the child remains in the same school in which the child was 
285.3 	enrolled prior to placement or upon the child's move from one placement to another, 
285.4 	including efforts to work with the local education authorities to ensure the child's 
285.5 	educational stability; or
285.6 	(ii) if it is not in the child's best interest to remain in the same school that the child 
285.7 	was enrolled in prior to placement or move from one placement to another, efforts to 
285.8 	ensure immediate and appropriate enrollment for the child in a new school;
285.9 	(8) the educational records of the child including the most recent information 
285.10 	available regarding:
285.11 	(i) the names and addresses of the child's educational providers;
285.12 	(ii) the child's grade level performance;
285.13 	(iii) the child's school record;
285.14 	(iv) a statement about how the child's placement in foster care takes into account 
285.15 	proximity to the school in which the child is enrolled at the time of placement; and
285.16 	(v) any other relevant educational information;
285.17 	(9) the efforts by the local agency to ensure the oversight and continuity of health 
285.18 	care services for the foster child, including:
285.19 	(i) the plan to schedule the child's initial health screens;
285.20 	(ii) how the child's known medical problems and identified needs from the screens, 
285.21 	including any known communicable diseases, as defined in section 144.4172, subdivision 
285.22 	2, will be monitored and treated while the child is in foster care;
285.23 	(iii) how the child's medical information will be updated and shared, including 
285.24 	the child's immunizations;
285.25 	(iv) who is responsible to coordinate and respond to the child's health care needs, 
285.26 	including the role of the parent, the agency, and the foster parent;
285.27 	(v) who is responsible for oversight of the child's prescription medications;
285.28 	(vi) how physicians or other appropriate medical and nonmedical professionals 
285.29 	will be consulted and involved in assessing the health and well-being of the child and 
285.30 	determine the appropriate medical treatment for the child; and
285.31 	(vii) the responsibility to ensure that the child has access to medical care through 
285.32 	either medical insurance or medical assistance;
285.33 	(10) the health records of the child including information available regarding:
285.34 	(i) the names and addresses of the child's health care and dental care providers;
285.35 	(ii) a record of the child's immunizations;
286.1 	(iii) the child's known medical problems, including any known communicable 
286.2 	diseases as defined in section 144.4172, subdivision 2;
286.3 	(iv) the child's medications; and
286.4 	(v) any other relevant health care information such as the child's eligibility for 
286.5 	medical insurance or medical assistance;
286.6 	(11) an independent living plan for a child age 16 or older. The plan should include, 
286.7 	but not be limited to, the following objectives:
286.8 	(i) educational, vocational, or employment planning;
286.9 	(ii) health care planning and medical coverage;
286.10 	(iii) transportation including, where appropriate, assisting the child in obtaining a 
286.11 	driver's license;
286.12 	(iv) money management, including the responsibility of the agency to ensure that 
286.13 	the youth annually receives, at no cost to the youth, a consumer report as defined under 
286.14 	section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
286.15 	(v) planning for housing;
286.16 	(vi) social and recreational skills; and
286.17 	(vii) establishing and maintaining connections with the child's family and 
286.18 	community; and
286.19 	(12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 
286.20 	and assessment information, specific services relating to meeting the mental health care 
286.21 	needs of the child, and treatment outcomes.
286.22 	(d) The parent or parents or guardian and the child each shall have the right to legal 
286.23 	counsel in the preparation of the case plan and shall be informed of the right at the time 
286.24 	of placement of the child. The child shall also have the right to a guardian ad litem. 
286.25 	If unable to employ counsel from their own resources, the court shall appoint counsel 
286.26 	upon the request of the parent or parents or the child or the child's legal guardian. The 
286.27 	parent or parents may also receive assistance from any person or social services agency 
286.28 	in preparation of the case plan.
286.29 	After the plan has been agreed upon by the parties involved or approved or ordered 
286.30 	by the court, the foster parents shall be fully informed of the provisions of the case plan 
286.31 	and shall be provided a copy of the plan.
286.32 	Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 
286.33 	physical custodian, as appropriate, and the child, if appropriate, must be provided with 
286.34 	a current copy of the child's health and education record.

286.35 	Sec. 20. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
287.1 		Subd. 4.Custody to relative. The court may order permanent legal and physical 
287.2 	custody to a fit and willing relative in the best interests of the child according to the 
287.3 	following conditions requirements:
287.4 	(1) an order for transfer of permanent legal and physical custody to a relative shall 
287.5 	only be made after the court has reviewed the suitability of the prospective legal and 
287.6 	physical custodian;
287.7 	(2) in transferring permanent legal and physical custody to a relative, the juvenile 
287.8 	court shall follow the standards applicable under this chapter and chapter 260, and the 
287.9 	procedures in the Minnesota Rules of Juvenile Protection Procedure;
287.10 	(3) a transfer of legal and physical custody includes responsibility for the protection, 
287.11 	education, care, and control of the child and decision making on behalf of the child;
287.12 	(4) a permanent legal and physical custodian may not return a child to the permanent 
287.13 	care of a parent from whom the court removed custody without the court's approval and 
287.14 	without notice to the responsible social services agency;
287.15 	(5) the social services agency may file a petition naming a fit and willing relative as 
287.16 	a proposed permanent legal and physical custodian. A petition for transfer of permanent 
287.17 	legal and physical custody to a relative who is not a parent shall be accompanied by a 
287.18 	kinship placement agreement under section 256N.22, subdivision 2, between the agency 
287.19 	and proposed permanent legal and physical custodian;
287.20 	(6) another party to the permanency proceeding regarding the child may file a 
287.21 	petition to transfer permanent legal and physical custody to a relative, but the. The petition 
287.22 	must include facts upon which the court can make the determination required under clause 
287.23 	(7) and must be filed not later than the date for the required admit-deny hearing under 
287.24 	section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision 
287.25 	2, the petition must be filed not later than 30 days prior to the trial required under section 
287.26 	260C.509; and
287.27 	(7) where a petition is for transfer of permanent legal and physical custody to a 
287.28 	relative who is not a parent, the court must find that:
287.29 	(i) transfer of permanent legal and physical custody and receipt of Northstar kinship 
287.30 	assistance under chapter 256N, when requested and the child is eligible, is in the child's 
287.31 	best interests;
287.32 	(ii) adoption is not in the child's best interests based on the determinations in the 
287.33 	kinship placement agreement required under section 256N.22, subdivision 2;
287.34 	(iii) the agency made efforts to discuss adoption with the child's parent or parents, 
287.35 	or the agency did not make efforts to discuss adoption and the reasons why efforts were 
287.36 	not made; and
288.1 	(iv) there are reasons to separate siblings during placement, if applicable;
288.2 	(8) the court may defer finalization of an order transferring permanent legal and 
288.3 	physical custody to a relative when deferring finalization is necessary to determine 
288.4 	eligibility for Northstar kinship assistance under chapter 256N; 
288.5 	(9) the court may finalize a permanent transfer of physical and legal custody to a 
288.6 	relative regardless of eligibility for Northstar kinship assistance under chapter 256N; and
288.7 	(7) (10) the juvenile court may maintain jurisdiction over the responsible social 
288.8 	services agency, the parents or guardian of the child, the child, and the permanent legal 
288.9 	and physical custodian for purposes of ensuring appropriate services are delivered to the 
288.10 	child and permanent legal custodian for the purpose of ensuring conditions ordered by the 
288.11 	court related to the care and custody of the child are met.

288.12 	Sec. 21. Minnesota Statutes 2012, section 260C.611, is amended to read:
288.13 	260C.611 ADOPTION STUDY REQUIRED.
288.14 	(a) An adoption study under section 259.41 approving placement of the child in the 
288.15 	home of the prospective adoptive parent shall be completed before placing any child under 
288.16 	the guardianship of the commissioner in a home for adoption. If a prospective adoptive 
288.17 	parent has a current child foster care license under chapter 245A and is seeking to adopt 
288.18 	a foster child who is placed in the prospective adoptive parent's home and is under the 
288.19 	guardianship of the commissioner according to section 260C.325, subdivision 1, the child 
288.20 	foster care home study meets the requirements of this section for an approved adoption 
288.21 	home study if:
288.22 	(1) the written home study on which the foster care license was based is completed 
288.23 	in the commissioner's designated format, consistent with the requirements in sections 
288.24 	260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules, 
288.25 	part 2960.3060, subpart 4;
288.26 	(2) the background studies on each prospective adoptive parent and all required 
288.27 	household members were completed according to section 245C.33;
288.28 	(3) the commissioner has not issued, within the last three years, a sanction on the 
288.29 	license under section 245A.07 or an order of a conditional license under section 245A.06; 
288.30 	and
288.31 	(4) the legally responsible agency determines that the individual needs of the child 
288.32 	are being met by the prospective adoptive parent through an assessment under section 
288.33 	256N.24, subdivision 2, or a documented placement decision consistent with section 
288.34 	260C.212, subdivision 2.
289.1 	(b) If a prospective adoptive parent has previously held a foster care license or 
289.2 	adoptive home study, any update necessary to the foster care license, or updated or new 
289.3 	adoptive home study, if not completed by the licensing authority responsible for the 
289.4 	previous license or home study, shall include collateral information from the previous 
289.5 	licensing or approving agency, if available.

289.6 	Sec. 22. Laws 2013, chapter 108, article 3, section 48, is amended to read:
289.7 	Sec. 48. REPEALER.
 289.8 	(a) Minnesota Statutes 2012, section 256J.24, subdivision 6, is repealed January
289.9 	 July 1, 2015 2014.
289.10 	(b) Minnesota Statutes 2012, section 609.093, is repealed effective the day following 
289.11 	final enactment.

289.12 	EFFECTIVE DATE. This section is effective July 1, 2014.

289.13 	Sec. 23. PARENT AWARE QUALITY RATING AND IMPROVEMENT 
289.14 	SYSTEM ACCESSIBILITY REPORT.
 289.15 		Subdivision 1.Recommendations. The commissioner of human services, in 
289.16 	consultation with representatives from the child care and early childhood advocacy 
289.17 	community, child care provider organizations, child care providers, organizations 
289.18 	administering Parent Aware, the Departments of Education and Health, counties, 
289.19 	and parents, shall make recommendations to the legislature on increasing statewide 
289.20 	accessibility for child care providers to the Parent Aware quality rating and improvement 
289.21 	system and for increasing access to Parent Aware-rated programs for families with 
289.22 	children. The recommendations must address the following factors impacting accessibility:
289.23 	(1) availability of rated and nonrated programs by child care provider type, within 
289.24 	rural and underserved areas, and for different cultural and non-English-speaking groups;
289.25 	(2) time and resources necessary for child care providers to participate in Parent 
289.26 	Aware at various rating levels, including cultural and linguistic considerations;
289.27 	(3) federal child care development fund regulations; and
289.28 	(4) other factors as determined by the commissioner.
289.29 		Subd. 2.Report. By February 15, 2015, the commissioner of human services 
289.30 	shall report to the legislative committees with jurisdiction over the child care 
289.31 	assistance programs and the Parent Aware quality rating and improvement system with 
289.32 	recommendations to increase access for families and child care providers to Parent Aware, 
289.33 	including benchmarks for achieving the maximum participation in Parent Aware-rated 
289.34 	child care programs by families receiving child care assistance. 
290.1 	The recommendations may also include, but are not limited to, potential 
290.2 	modifications to Minnesota Statutes, sections 119B.09, subdivision 5; and 119B.125, 
290.3 	subdivision 1, if necessary, which may include a delayed effective date, different phase-in 
290.4 	process, or repealer.

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

290.6 	Sec. 24. DIRECTION TO COMMISSIONER.
 290.7 	The commissioner of human services shall implement the repeal of the MFIP 
290.8 	family cap July 1, 2014. The commissioner shall make every effort to complete systems 
290.9 	modifications by that date. If systems modifications cannot be completed in time, the 
290.10 	commissioner shall implement a manual procedure to implement the change.

290.11 	Sec. 25. REVISOR'S INSTRUCTION.
 290.12 	The revisor of statutes shall change the term "guardianship assistance" to "Northstar 
290.13 	kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to 
290.14 	refer to the program components related to Northstar Care for Children under Minnesota 
290.15 	Statutes, chapter 256N.

290.16 	Sec. 26.  REPEALER.
 290.17 	Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.

290.18 	ARTICLE 28
290.19 	COMMUNITY FIRST SERVICES AND SUPPORTS

290.20 	Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a 
290.21 	subdivision to read:
290.22 		Subd. 8.Community first services and supports organizations. The 
290.23 	commissioner shall conduct background studies on any individual required under section 
290.24 	256B.85 to have a background study completed under this chapter.

290.25 	Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision 
290.26 	to read:
290.27 		Subd. 7.Community first services and supports organizations. (a) The 
290.28 	commissioner shall conduct a background study of an individual required to be studied 
290.29 	under section 245C.03, subdivision 8, at least upon application for initial enrollment 
290.30 	under section 256B.85.
291.1 	(b) Before an individual described in section 245C.03, subdivision 8, begins a 
291.2 	position allowing direct contact with a person served by an organization required to initiate 
291.3 	a background study under section 256B.85, the organization must receive a notice from 
291.4 	the commissioner that the support worker is:
291.5 	(1) not disqualified under section 245C.14; or
291.6 	(2) disqualified, but the individual has received a set-aside of the disqualification 
291.7 	under section 245C.22.

291.8 	Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision 
291.9 	to read:
291.10 		Subd. 10.Community first services and supports organizations. The 
291.11 	commissioner shall recover the cost of background studies initiated by an agency-provider 
291.12 	delivering services under section 256B.85, subdivision 11, or a financial management 
291.13 	services contractor providing service functions under section 256B.85, subdivision 13, 
291.14 	through a fee of no more than $20 per study, charged to the organization responsible for 
291.15 	submitting the background study form. The fees collected under this subdivision are 
291.16 	appropriated to the commissioner for the purpose of conducting background studies.

291.17 	Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is 
291.18 	amended to read:
291.19 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in 
291.20 	this subdivision have the meanings given.
291.21 	(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming, 
291.22 	dressing, bathing, mobility, positioning, and transferring.
291.23 	(c) "Agency-provider model" means a method of CFSS under which a qualified 
291.24 	agency provides services and supports through the agency's own employees and policies. 
291.25 	The agency must allow the participant to have a significant role in the selection and 
291.26 	dismissal of support workers of their choice for the delivery of their specific services 
291.27 	and supports.
291.28 	(d) "Behavior" means a description of a need for services and supports used to 
291.29 	determine the home care rating and additional service units. The presence of Level I 
291.30 	behavior is used to determine the home care rating. "Level I behavior" means physical 
291.31 	aggression towards self or others or destruction of property that requires the immediate 
291.32 	response of another person. If qualified for a home care rating as described in subdivision 
291.33 	8, additional service units can be added as described in subdivision 8, paragraph (f), for 
291.34 	the following behaviors:
292.1 	(1) Level I behavior;
292.2 	(2) increased vulnerability due to cognitive deficits or socially inappropriate 
292.3 	behavior; or
292.4 	(3) increased need for assistance for recipients participants who are verbally 
292.5 	aggressive or resistive to care so that time needed to perform activities of daily living is 
292.6 	increased.
292.7 	(e) "Budget model" means a service delivery method of CFSS that allows the 
292.8 	use of a service budget and assistance from a vendor fiscal/employer agent financial 
292.9 	management services (FMS) contractor for a participant to directly employ support 
292.10 	workers and purchase supports and goods.
292.11 	(e) (f) "Complex health-related needs" means an intervention listed in clauses (1) 
292.12 	to (8) that has been ordered by a physician, and is specified in a community support 
292.13 	plan, including:
292.14 	(1) tube feedings requiring:
292.15 	(i) a gastrojejunostomy tube; or
292.16 	(ii) continuous tube feeding lasting longer than 12 hours per day;
292.17 	(2) wounds described as:
292.18 	(i) stage III or stage IV;
292.19 	(ii) multiple wounds;
292.20 	(iii) requiring sterile or clean dressing changes or a wound vac; or
292.21 	(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require 
292.22 	specialized care;
292.23 	(3) parenteral therapy described as:
292.24 	(i) IV therapy more than two times per week lasting longer than four hours for 
292.25 	each treatment; or
292.26 	(ii) total parenteral nutrition (TPN) daily;
292.27 	(4) respiratory interventions, including:
292.28 	(i) oxygen required more than eight hours per day;
292.29 	(ii) respiratory vest more than one time per day;
292.30 	(iii) bronchial drainage treatments more than two times per day;
292.31 	(iv) sterile or clean suctioning more than six times per day;
292.32 	(v) dependence on another to apply respiratory ventilation augmentation devices 
292.33 	such as BiPAP and CPAP; and
292.34 	(vi) ventilator dependence under section 256B.0652;
292.35 	(5) insertion and maintenance of catheter, including:
292.36 	(i) sterile catheter changes more than one time per month;
293.1 	(ii) clean intermittent catheterization, and including self-catheterization more than 
293.2 	six times per day; or
293.3 	(iii) bladder irrigations;
293.4 	(6) bowel program more than two times per week requiring more than 30 minutes to 
293.5 	perform each time;
293.6 	(7) neurological intervention, including:
293.7 	(i) seizures more than two times per week and requiring significant physical 
293.8 	assistance to maintain safety; or
293.9 	(ii) swallowing disorders diagnosed by a physician and requiring specialized 
293.10 	assistance from another on a daily basis; and
293.11 	(8) other congenital or acquired diseases creating a need for significantly increased 
293.12 	direct hands-on assistance and interventions in six to eight activities of daily living.
293.13 	(f) (g) "Community first services and supports" or "CFSS" means the assistance and 
293.14 	supports program under this section needed for accomplishing activities of daily living, 
293.15 	instrumental activities of daily living, and health-related tasks through hands-on assistance 
293.16 	to accomplish the task or constant supervision and cueing to accomplish the task, or the 
293.17 	purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace 
293.18 	the need for human assistance.
293.19 	(g) (h) "Community first services and supports service delivery plan" or "service 
293.20 	delivery plan" means a written summary of document detailing the services and supports 
293.21 	chosen by the participant to meet assessed needs that is are within the approved CFSS 
293.22 	service authorization amount. Services and supports are based on the community support 
293.23 	plan identified in section 256B.0911 and coordinated services and support plan and budget 
293.24 	identified in section 256B.0915, subdivision 6, if applicable, that is determined by the 
293.25 	participant to meet the assessed needs, using a person-centered planning process.
293.26 	(i) "Consultation services" means a Minnesota health care program enrolled provider 
293.27 	organization that is under contract with the department and has the knowledge, skills, 
293.28 	and ability to assist CFSS participants in using either the agency-provider model under 
293.29 	subdivision 11 or the budget model under subdivision 13.
293.30 	(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and 
293.31 	toileting.
293.32 	(i) (k) "Dependency" in activities of daily living means a person requires hands-on 
293.33 	assistance or constant supervision and cueing to accomplish one or more of the activities 
293.34 	of daily living every day or on the days during the week that the activity is performed; 
293.35 	however, a child may not be found to be dependent in an activity of daily living if, 
293.36 	because of the child's age, an adult would either perform the activity for the child or assist 
294.1 	the child with the activity and the assistance needed is the assistance appropriate for 
294.2 	a typical child of the same age.
294.3 	(j) (l) "Extended CFSS" means CFSS services and supports under the 
294.4 	agency-provider model included in a service plan through one of the home and 
294.5 	community-based services waivers and as approved and authorized under sections 
294.6 	256B.0915; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration, 
294.7 	and frequency of the state plan CFSS services for participants.
294.8 	(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
294.9 	 means a qualified organization having necessary to use the budget model under subdivision 
294.10 	13 that has a written contract with the department to provide vendor fiscal/employer agent 
294.11 	financial management services necessary to use the budget model under subdivision 13 
294.12 	that (FMS). Services include but are not limited to: participant education and technical 
294.13 	assistance; CFSS service delivery planning and budgeting;filing and payment of federal 
294.14 	and state payroll taxes on behalf of the participant; initiating criminal background 
294.15 	checks; billing, making payments, and for approved CFSS services with authorized 
294.16 	funds; monitoring of spending expenditures; accounting for and disbursing CFSS funds; 
294.17 	providing assistance in obtaining and filing for liability, workers' compensation, and 
294.18 	unemployment coverage; and assisting participant instruction and technical assistance to
294.19 	 the participant in fulfilling employer-related requirements in accordance with Section 
294.20 	3504 of the Internal Revenue Code and the Internal Revenue Service Revenue Procedure 
294.21 	70-6 related regulations and interpretations, including Code of Federal Regulations, title 
294.22 	26, section 31.3504-1.
294.23 	(l) "Budget model" means a service delivery method of CFSS that allows the use of 
294.24 	an individualized CFSS service delivery plan and service budget and provides assistance 
294.25 	from the financial management services contractor to facilitate participant employment of 
294.26 	support workers and the acquisition of supports and goods.
294.27 	(m) (n) "Health-related procedures and tasks" means procedures and tasks related 
294.28 	to the specific needs of an individual that can be delegated taught or assigned by a 
294.29 	state-licensed healthcare or mental health professional and performed by a support worker.
294.30 	(n) (o) "Instrumental activities of daily living" means activities related to 
294.31 	living independently in the community, including but not limited to: meal planning, 
294.32 	preparation, and cooking; shopping for food, clothing, or other essential items; laundry; 
294.33 	housecleaning; assistance with medications; managing finances; communicating needs 
294.34 	and preferences during activities; arranging supports; and assistance with traveling around 
294.35 	and participating in the community.
295.1 	(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian, 
295.2 	or another representative with legal authority to make decisions about services and 
295.3 	supports for the participant. Other representatives with legal authority to make decisions 
295.4 	include but are not limited to a health care agent or an attorney-in-fact authorized through 
295.5 	a health care directive or power of attorney.
295.6 	(p) (q) "Medication assistance" means providing verbal or visual reminders to take 
295.7 	regularly scheduled medication, and includes any of the following supports listed in clauses 
295.8 	(1) to (3) and other types of assistance, except that a support worker may not determine 
295.9 	medication dose or time for medication or inject medications into veins, muscles, or skin:
295.10 	(1) under the direction of the participant or the participant's representative, bringing 
295.11 	medications to the participant including medications given through a nebulizer, opening a 
295.12 	container of previously set-up medications, emptying the container into the participant's 
295.13 	hand, opening and giving the medication in the original container to the participant, or 
295.14 	bringing to the participant liquids or food to accompany the medication;
295.15 	(2) organizing medications as directed by the participant or the participant's 
295.16 	representative; and
295.17 	(3) providing verbal or visual reminders to perform regularly scheduled medications.
295.18 	(q) (r) "Participant's representative" means a parent, family member, advocate, 
295.19 	or other adult authorized by the participant to serve as a representative in connection 
295.20 	with the provision of CFSS. This authorization must be in writing or by another method 
295.21 	that clearly indicates the participant's free choice. The participant's representative must 
295.22 	have no financial interest in the provision of any services included in the participant's 
295.23 	service delivery plan and must be capable of providing the support necessary to assist 
295.24 	the participant in the use of CFSS. If through the assessment process described in 
295.25 	subdivision 5 a participant is determined to be in need of a participant's representative, one 
295.26 	must be selected. If the participant is unable to assist in the selection of a participant's 
295.27 	representative, the legal representative shall appoint one. Two persons may be designated 
295.28 	as a participant's representative for reasons such as divided households and court-ordered 
295.29 	custodies. Duties of a participant's representatives may include:
295.30 	(1) being available while care is services are provided in a method agreed upon by 
295.31 	the participant or the participant's legal representative and documented in the participant's 
295.32 	CFSS service delivery plan;
295.33 	(2) monitoring CFSS services to ensure the participant's CFSS service delivery 
295.34 	plan is being followed; and
295.35 	(3) reviewing and signing CFSS time sheets after services are provided to provide 
295.36 	verification of the CFSS services.
296.1 	(r) (s) "Person-centered planning process" means a process that is directed by the 
296.2 	participant to plan for services and supports. The person-centered planning process must:
296.3 	(1) include people chosen by the participant;
296.4 	(2) provide necessary information and support to ensure that the participant directs 
296.5 	the process to the maximum extent possible, and is enabled to make informed choices 
296.6 	and decisions;
296.7 	(3) be timely and occur at time and locations of convenience to the participant;
296.8 	(4) reflect cultural considerations of the participant;
296.9 	(5) include strategies for solving conflict or disagreement within the process, 
296.10 	including clear conflict-of-interest guidelines for all planning;
296.11 	(6) provide the participant choices of the services and supports they receive and the 
296.12 	staff providing those services and supports;
296.13 	(7) include a method for the participant to request updates to the plan; and
296.14 	(8) record the alternative home and community-based settings that were considered 
296.15 	by the participant.
296.16 	(s) (t) "Shared services" means the provision of CFSS services by the same CFSS 
296.17 	support worker to two or three participants who voluntarily enter into an agreement to 
296.18 	receive services at the same time and in the same setting by the same provider employer.
296.19 	(t) "Support specialist" means a professional with the skills and ability to assist the 
296.20 	participant using either the agency-provider model under subdivision 11 or the flexible 
296.21 	spending model under subdivision 13, in services including but not limited to assistance 
296.22 	regarding:
296.23 	(1) the development, implementation, and evaluation of the CFSS service delivery 
296.24 	plan under subdivision 6;
296.25 	(2) recruitment, training, or supervision, including supervision of health-related tasks 
296.26 	or behavioral supports appropriately delegated or assigned by a health care professional, 
296.27 	and evaluation of support workers; and
296.28 	(3) facilitating the use of informal and community supports, goods, or resources.
296.29 	(u) "Support worker" means an a qualified and trained employee of the agency 
296.30 	provider agency-provider or of the participant employer under the budget model who 
296.31 	has direct contact with the participant and provides services as specified within the 
296.32 	participant's service delivery plan.
296.33 	(v) "Wages and benefits" means the hourly wages and salaries, the employer's 
296.34 	share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' 
296.35 	compensation, mileage reimbursement, health and dental insurance, life insurance, 
297.1 	disability insurance, long-term care insurance, uniform allowance, contributions to 
297.2 	employee retirement accounts, or other forms of employee compensation and benefits.
297.3 	(w) "Worker training and development" means services for developing workers' 
297.4 	skills as required by the participant's individual CFSS delivery plan that are arranged for 
297.5 	or provided by the agency-provider or purchased by the participant employer. These 
297.6 	services include training, education, direct observation and supervision, and evaluation 
297.7 	and coaching of job skills and tasks, including supervision of health-related tasks or 
297.8 	behavioral supports.

297.9 	Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is 
297.10 	amended to read:
297.11 		Subd. 3.Eligibility. (a) CFSS is available to a person who meets one of the 
297.12 	following:
297.13 	(1) is a recipient an enrollee of medical assistance as determined under section 
297.14 	256B.055, 256B.056, or 256B.057, subdivisions 5 and 9;
297.15 	(2) is a recipient of participant in the alternative care program under section 
297.16 	256B.0913;
297.17 	(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092, 
297.18 	256B.093, or 256B.49; or
297.19 	(4) has medical services identified in a participant's individualized education 
297.20 	program and is eligible for services as determined in section 256B.0625, subdivision 26.
297.21 	(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also 
297.22 	meet all of the following:
297.23 	(1) require assistance and be determined dependent in one activity of daily living or 
297.24 	Level I behavior based on assessment under section 256B.0911; and
297.25 	(2) is not a recipient of participant under a family support grant under section 252.32;.
297.26 	(3) lives in the person's own apartment or home including a family foster care setting 
297.27 	licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a 
297.28 	noncertified boarding care home or a boarding and lodging establishment under chapter 
297.29 	157.

297.30 	Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is 
297.31 	amended to read:
297.32 		Subd. 5.Assessment requirements. (a) The assessment of functional need must:
297.33 	(1) be conducted by a certified assessor according to the criteria established in 
297.34 	section 256B.0911, subdivision 3a;
298.1 	(2) be conducted face-to-face, initially and at least annually thereafter, or when there 
298.2 	is a significant change in the participant's condition or a change in the need for services 
298.3 	and supports, or at the request of the participant when the participant experiences a change 
298.4 	in condition or needs a change in services or supports; and
298.5 	(3) be completed using the format established by the commissioner.
298.6 	(b) A participant who is residing in a facility may be assessed and choose CFSS for 
298.7 	the purpose of using CFSS to return to the community as described in subdivisions 3 
298.8 	and 7, paragraph (a), clause (5).
298.9 	(c) (b) The results of the assessment and any recommendations and authorizations 
298.10 	for CFSS must be determined and communicated in writing by the lead agency's certified 
298.11 	assessor as defined in section 256B.0911 to the participant and the agency-provider or 
298.12 	financial management services provider FMS contractor chosen by the participant within 
298.13 	40 calendar days and must include the participant's right to appeal under section 256.045, 
298.14 	subdivision 3.
298.15 	(d) (c) The lead agency assessor may request authorize a temporary authorization 
298.16 	for CFSS services to be provided under the agency-provider model. Authorization for 
298.17 	a temporary level of CFSS services under the agency-provider model is limited to the 
298.18 	time specified by the commissioner, but shall not exceed 45 days. The level of services 
298.19 	authorized under this provision paragraph shall have no bearing on a future authorization.

298.20 	Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is 
298.21 	amended to read:
298.22 		Subd. 6.Community first services and support service delivery plan. (a) The 
298.23 	CFSS service delivery plan must be developed, implemented, and evaluated through a 
298.24 	person-centered planning process by the participant, or the participant's representative 
298.25 	or legal representative who may be assisted by a support specialist consultation services 
298.26 	provider. The CFSS service delivery plan must reflect the services and supports that 
298.27 	are important to the participant and for the participant to meet the needs assessed 
298.28 	by the certified assessor and identified in the community support plan under section 
298.29 	256B.0911, subdivision 3, or the coordinated services and support plan identified in 
298.30 	section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be 
298.31 	reviewed by the participant, the consultation services provider, and the agency-provider 
298.32 	or financial management services FMS contractor prior to starting services and at least 
298.33 	annually upon reassessment, or when there is a significant change in the participant's 
298.34 	condition, or a change in the need for services and supports.
299.1 	(b) The commissioner shall establish the format and criteria for the CFSS service 
299.2 	delivery plan.
299.3 	(c) The CFSS service delivery plan must be person-centered and:
299.4 	(1) specify the consultation services provider, agency-provider, or financial 
299.5 	management services FMS contractor selected by the participant;
299.6 	(2) reflect the setting in which the participant resides that is chosen by the participant;
299.7 	(3) reflect the participant's strengths and preferences;
299.8 	(4) include the means to address the clinical and support needs as identified through 
299.9 	an assessment of functional needs;
299.10 	(5) include individually identified goals and desired outcomes;
299.11 	(6) reflect the services and supports, paid and unpaid, that will assist the participant 
299.12 	to achieve identified goals, including the costs of the services and supports, and the 
299.13 	providers of those services and supports, including natural supports;
299.14 	(7) identify the amount and frequency of face-to-face supports and amount and 
299.15 	frequency of remote supports and technology that will be used;
299.16 	(8) identify risk factors and measures in place to minimize them, including 
299.17 	individualized backup plans;
299.18 	(9) be understandable to the participant and the individuals providing support;
299.19 	(10) identify the individual or entity responsible for monitoring the plan;
299.20 	(11) be finalized and agreed to in writing by the participant and signed by all 
299.21 	individuals and providers responsible for its implementation;
299.22 	(12) be distributed to the participant and other people involved in the plan; and
299.23 	(13) prevent the provision of unnecessary or inappropriate care.;
299.24 	(14) include a detailed budget for expenditures for budget model participants or 
299.25 	participants under the agency-provider model if purchasing goods; and
299.26 	(15) include a plan for worker training and development detailing what service 
299.27 	components will be used, when the service components will be used, how they will be 
299.28 	provided, and how these service components relate to the participant's individual needs 
299.29 	and CFSS support worker services.
299.30 	(d) The total units of agency-provider services or the service budget allocation
299.31 	 amount for the budget model include both annual totals and a monthly average amount 
299.32 	that cover the number of months of the service authorization. The amount used each 
299.33 	month may vary, but additional funds must not be provided above the annual service 
299.34 	authorization amount unless a change in condition is assessed and authorized by the 
299.35 	certified assessor and documented in the community support plan, coordinated services 
299.36 	and supports plan, and CFSS service delivery plan.
300.1 	(e) In assisting with the development or modification of the plan during the 
300.2 	authorization time period, the consultation services provider shall:
300.3 	(1) consult with the FMS contractor on the spending budget when applicable; and
300.4 	(2) consult with the participant or participant's representative, agency-provider, and 
300.5 	case manager/care coordinator.
300.6 	(f) The service plan must be approved by the consultation services provider for 
300.7 	participants without a case manager/care coordinator. A case manager/care coordinator 
300.8 	must approve the plan for a waiver or alternative care program participant.

300.9 	Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is 
300.10 	amended to read:
300.11 		Subd. 7.Community first services and supports; covered services. Within the 
300.12 	service unit authorization or service budget allocation amount, services and supports 
300.13 	covered under CFSS include:
300.14 	(1) assistance to accomplish activities of daily living (ADLs), instrumental activities 
300.15 	of daily living (IADLs), and health-related procedures and tasks through hands-on 
300.16 	assistance to accomplish the task or constant supervision and cueing to accomplish the task;
300.17 	(2) assistance to acquire, maintain, or enhance the skills necessary for the participant 
300.18 	to accomplish activities of daily living, instrumental activities of daily living, or 
300.19 	health-related tasks;
300.20 	(3) expenditures for items, services, supports, environmental modifications, or 
300.21 	goods, including assistive technology. These expenditures must:
300.22 	(i) relate to a need identified in a participant's CFSS service delivery plan;
300.23 	(ii) increase independence or substitute for human assistance to the extent that 
300.24 	expenditures would otherwise be made for human assistance for the participant's assessed 
300.25 	needs;
300.26 	(4) observation and redirection for behavior or symptoms where there is a need for 
300.27 	assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
300.28 	 participant qualifies as having a need for assistance due to behaviors if the recipient's
300.29 	 participant's behavior requires assistance at least four times per week and shows one or 
300.30 	more of the following behaviors:
300.31 	(i) physical aggression towards self or others, or destruction of property that requires 
300.32 	the immediate response of another person;
300.33 	(ii) increased vulnerability due to cognitive deficits or socially inappropriate 
300.34 	behavior; or
301.1 	(iii) increased need for assistance for recipients participants who are verbally 
301.2 	aggressive or resistive to care so that time needed to perform activities of daily living is 
301.3 	increased;
301.4 	(5) back-up systems or mechanisms, such as the use of pagers or other electronic 
301.5 	devices, to ensure continuity of the participant's services and supports;
301.6 	(6) transition costs, including:
301.7 	(i) deposits for rent and utilities;
301.8 	(ii) first month's rent and utilities;
301.9 	(iii) bedding;
301.10 	(iv) basic kitchen supplies;
301.11 	(v) other necessities, to the extent that these necessities are not otherwise covered 
301.12 	under any other funding that the participant is eligible to receive; and
301.13 	(vi) other required necessities for an individual to make the transition from a nursing 
301.14 	facility, institution for mental diseases, or intermediate care facility for persons with 
301.15 	developmental disabilities to a community-based home setting where the participant 
301.16 	resides; and
301.17 	(7) (6) services provided by a support specialist consultation services provider under 
301.18 	contract with the department and enrolled as a Minnesota health care program provider as 
301.19 	 defined under subdivision 2 that are chosen by the participant. 17;
301.20 	(7) services provided by an FMS contractor under contract with the department 
301.21 	as defined under subdivision 13;
301.22 	(8) CFSS services provided by a qualified support worker who is a parent, stepparent, 
301.23 	or legal guardian of a participant under age 18, or who is the participant's spouse. These 
301.24 	support workers shall not provide any medical assistance home and community-based 
301.25 	services in excess of 40 hours per seven-day period regardless of the number of parents, 
301.26 	combination of parents and spouses, or number of children who receive medical assistance 
301.27 	services; and
301.28 	(9) worker training and development services as defined in subdivision 2, paragraph 
301.29 	(w), and described in subdivision 18a.

301.30 	Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is 
301.31 	amended to read:
301.32 		Subd. 8.Determination of CFSS service methodology. (a) All community first 
301.33 	services and supports must be authorized by the commissioner or the commissioner's 
301.34 	designee before services begin, except for the assessments established in section 
302.1 	256B.0911. The authorization for CFSS must be completed as soon as possible following 
302.2 	an assessment but no later than 40 calendar days from the date of the assessment.
302.3 	(b) The amount of CFSS authorized must be based on the recipient's participant's
302.4 	 home care rating described in paragraphs (d) and (e) and any additional service units for 
302.5 	which the person participant qualifies as described in paragraph (f).
302.6 	(c) The home care rating shall be determined by the commissioner or the 
302.7 	commissioner's designee based on information submitted to the commissioner identifying 
302.8 	the following for a recipient participant:
302.9 	(1) the total number of dependencies of activities of daily living as defined in 
302.10 	subdivision 2, paragraph (b);
302.11 	(2) the presence of complex health-related needs as defined in subdivision 2, 
302.12 	paragraph (e); and
302.13 	(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d), 
302.14 	clause (1).
302.15 	(d) The methodology to determine the total service units for CFSS for each home 
302.16 	care rating is based on the median paid units per day for each home care rating from 
302.17 	fiscal year 2007 data for the PCA program.
302.18 	(e) Each home care rating is designated by the letters P through Z and EN and has 
302.19 	the following base number of service units assigned:
302.20 	(1) P home care rating requires Level I behavior or one to three dependencies in 
302.21 	ADLs and qualifies one for five service units;
302.22 	(2) Q home care rating requires Level I behavior and one to three dependencies in 
302.23 	ADLs and qualifies one for six service units;
302.24 	(3) R home care rating requires a complex health-related need and one to three 
302.25 	dependencies in ADLs and qualifies one for seven service units;
302.26 	(4) S home care rating requires four to six dependencies in ADLs and qualifies 
302.27 	one for ten service units;
302.28 	(5) T home care rating requires four to six dependencies in ADLs and Level I 
302.29 	behavior and qualifies one for 11 service units;
302.30 	(6) U home care rating requires four to six dependencies in ADLs and a complex 
302.31 	health-related need and qualifies one for 14 service units;
302.32 	(7) V home care rating requires seven to eight dependencies in ADLs and qualifies 
302.33 	one for 17 service units;
302.34 	(8) W home care rating requires seven to eight dependencies in ADLs and Level I 
302.35 	behavior and qualifies one for 20 service units;
303.1 	(9) Z home care rating requires seven to eight dependencies in ADLs and a complex 
303.2 	health-related need and qualifies one for 30 service units; and
303.3 	(10) EN home care rating includes ventilator dependency as defined in section 
303.4 	256B.0651, subdivision 1, paragraph (g). Recipients Participants who meet the definition 
303.5 	of ventilator-dependent and the EN home care rating and utilize a combination of 
303.6 	CFSS and other home care services are limited to a total of 96 service units per day for 
303.7 	those services in combination. Additional units may be authorized when a recipient's
303.8 	 participant's assessment indicates a need for two staff to perform activities. Additional 
303.9 	time is limited to 16 service units per day.
303.10 	(f) Additional service units are provided through the assessment and identification of 
303.11 	the following:
303.12 	(1) 30 additional minutes per day for a dependency in each critical activity of daily 
303.13 	living as defined in subdivision 2, paragraph (h) (j);
303.14 	(2) 30 additional minutes per day for each complex health-related function as 
303.15 	defined in subdivision 2, paragraph (e) (f); and
303.16 	(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2, 
303.17 	paragraph (d).
303.18 	(g) The service budget for budget model participants shall be based on:
303.19 	(1) assessed units as determined by the home care rating; and
303.20 	(2) an adjustment needed for administrative expenses.

303.21 	Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is 
303.22 	amended to read:
303.23 		Subd. 9.Noncovered services. (a) Services or supports that are not eligible for 
303.24 	payment under this section include those that:
303.25 	(1) are not authorized by the certified assessor or included in the written service 
303.26 	delivery plan;
303.27 	(2) are provided prior to the authorization of services and the approval of the written 
303.28 	CFSS service delivery plan;
303.29 	(3) are duplicative of other paid services in the written service delivery plan;
303.30 	(4) supplant natural unpaid supports that appropriately meet a need in the service 
303.31 	plan, are provided voluntarily to the participant, and are selected by the participant in lieu 
303.32 	of other services and supports;
303.33 	(5) are not effective means to meet the participant's needs; and
303.34 	(6) are available through other funding sources, including, but not limited to, funding 
303.35 	through title IV-E of the Social Security Act.
304.1 	(b) Additional services, goods, or supports that are not covered include:
304.2 	(1) those that are not for the direct benefit of the participant, except that services for 
304.3 	caregivers such as training to improve the ability to provide CFSS are considered to directly 
304.4 	benefit the participant if chosen by the participant and approved in the support plan;
304.5 	(2) any fees incurred by the participant, such as Minnesota health care programs fees 
304.6 	and co-pays, legal fees, or costs related to advocate agencies;
304.7 	(3) insurance, except for insurance costs related to employee coverage;
304.8 	(4) room and board costs for the participant with the exception of allowable 
304.9 	transition costs in subdivision 7, clause (6);
304.10 	(5) services, supports, or goods that are not related to the assessed needs;
304.11 	(6) special education and related services provided under the Individuals with 
304.12 	Disabilities Education Act and vocational rehabilitation services provided under the 
304.13 	Rehabilitation Act of 1973;
304.14 	(7) assistive technology devices and assistive technology services other than those 
304.15 	for back-up systems or mechanisms to ensure continuity of service and supports listed in 
304.16 	subdivision 7;
304.17 	(8) medical supplies and equipment covered under medical assistance;
304.18 	(9) environmental modifications, except as specified in subdivision 7;
304.19 	(10) expenses for travel, lodging, or meals related to training the participant, or the 
304.20 	participant's representative,or legal representative, or paid or unpaid caregivers that 
304.21 	exceed $500 in a 12-month period;
304.22 	(11) experimental treatments;
304.23 	(12) any service or good covered by other medical assistance state plan services, 
304.24 	including prescription and over-the-counter medications, compounds, and solutions and 
304.25 	related fees, including premiums and co-payments;
304.26 	(13) membership dues or costs, except when the service is necessary and appropriate 
304.27 	to treat a physical health condition or to improve or maintain the participant's physical
304.28 	 health condition. The condition must be identified in the participant's CFSS plan and 
304.29 	monitored by a physician enrolled in a Minnesota health care program enrolled physician;
304.30 	(14) vacation expenses other than the cost of direct services;
304.31 	(15) vehicle maintenance or modifications not related to the disability, health 
304.32 	condition, or physical need; and
304.33 	(16) tickets and related costs to attend sporting or other recreational or entertainment 
304.34 	events.;
304.35 	(17) services provided and billed by a provider who is not an enrolled CFSS provider;
304.36 	(18) CFSS provided by a participant's representative or paid legal guardian;
305.1 	(19) services that are used solely as a child care or babysitting service;
305.2 	(20) services that are the responsibility or in the daily rate of a residential or program 
305.3 	license holder under the terms of a service agreement and administrative rules;
305.4 	(21) sterile procedures;
305.5 	(22) giving of injections into veins, muscles, or skin;
305.6 	(23) homemaker services that are not an integral part of the assessed CFSS service;
305.7 	(24) home maintenance or chore services;
305.8 	(25) home care services, including hospice services if elected by the participant, 
305.9 	covered by Medicare or any other insurance held by the participant;
305.10 	(26) services to other members of the participant's household;
305.11 	(27) services not specified as covered under medical assistance as CFSS;
305.12 	(28) application of restraints or implementation of deprivation procedures;
305.13 	(29) assessments by CFSS provider organizations or by independently enrolled 
305.14 	registered nurses;
305.15 	(30) services provided in lieu of legally required staffing in a residential or child 
305.16 	care setting; and
305.17 	(31) services provided by the residential or program license holder in a residence for 
305.18 	more than four persons.

305.19 	Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10, 
305.20 	is amended to read:
305.21 		Subd. 10.Provider Agency-provider and FMS contractor qualifications and,
305.22 	 general requirements, and duties. (a) Agency-providers delivering services under the 
305.23 	agency-provider model under subdivision 11 or financial management service (FMS)
305.24 	 FMS contractors under subdivision 13 shall:
305.25 	(1) enroll as a medical assistance Minnesota health care programs provider and meet 
305.26 	all applicable provider standards and requirements;
305.27 	(2) comply with medical assistance provider enrollment requirements;
305.28 	(3) (2) demonstrate compliance with law federal and state laws and policies of for
305.29 	 CFSS as determined by the commissioner;
305.30 	(4) (3) comply with background study requirements under chapter 245C and 
305.31 	maintain documentation of background study requests and results;
305.32 	(5) (4) verify and maintain records of all services and expenditures by the participant, 
305.33 	including hours worked by support workers and support specialists;
306.1 	(6) (5) not engage in any agency-initiated direct contact or marketing in person, by 
306.2 	telephone, or other electronic means to potential participants, guardians, family members, 
306.3 	or participants' representatives;
306.4 	(6) directly provide services and not use a subcontractor or reporting agent;
306.5 	(7) meet the financial requirements established by the commissioner for financial 
306.6 	solvency;
306.7 	(8) have never had a lead agency contract or provider agreement discontinued due to 
306.8 	fraud, or have never had an owner, board member, or manager fail a state or FBI-based 
306.9 	criminal background check while enrolled or seeking enrollment as a Minnesota health 
306.10 	care programs provider;
306.11 	(9) have established business practices that include written policies and procedures, 
306.12 	internal controls, and a system that demonstrates the organization's ability to deliver 
306.13 	quality CFSS; and
306.14 	(10) have an office located in Minnesota.
306.15 	(b) In conducting general duties, agency-providers and FMS contractors shall:
306.16 	(7) (1) pay support workers and support specialists based upon actual hours of 
306.17 	services provided;
306.18 	(2) pay for worker training and development services based upon actual hours of 
306.19 	services provided or the unit cost of the training session purchased;
306.20 	(8) (3) withhold and pay all applicable federal and state payroll taxes;
306.21 	(9) (4) make arrangements and pay unemployment insurance, taxes, workers' 
306.22 	compensation, liability insurance, and other benefits, if any;
306.23 	(10) (5) enter into a written agreement with the participant, participant's 
306.24 	representative, or legal representative that assigns roles and responsibilities to be 
306.25 	performed before services, supports, or goods are provided using a format established by 
306.26 	the commissioner;
306.27 	(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
306.28 	(12) (7) provide the participant with a copy of the service-related rights under 
306.29 	subdivision 20 at the start of services and supports.; and
306.30 	(8) comply with any data requests from the department consistent with the 
306.31 	Minnesota Government Data Practices Act under chapter 13.

306.32 	Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11, 
306.33 	is amended to read:
306.34 		Subd. 11.Agency-provider model. (a) The agency-provider model is limited to 
306.35 	the includes services provided by support workers and support specialists staff providing 
307.1 	worker training and development services who are employed by an agency-provider 
307.2 	that is licensed according to chapter 245A or meets other criteria established by the 
307.3 	commissioner, including required training.
307.4 	(b) The agency-provider shall allow the participant to have a significant role in the 
307.5 	selection and dismissal of the support workers for the delivery of the services and supports 
307.6 	specified in the participant's service delivery plan.
307.7 	(c) A participant may use authorized units of CFSS services as needed within a 
307.8 	service authorization that is not greater than 12 months. Using authorized units in a 
307.9 	flexible manner in either the agency-provider model or the budget model does not increase 
307.10 	the total amount of services and supports authorized for a participant or included in the 
307.11 	participant's service delivery plan.
307.12 	(d) A participant may share CFSS services. Two or three CFSS participants may 
307.13 	share services at the same time provided by the same support worker.
307.14 	(e) The agency-provider must use a minimum of 72.5 percent of the revenue 
307.15 	generated by the medical assistance payment for CFSS for support worker wages and 
307.16 	benefits. The agency-provider must document how this requirement is being met. The 
307.17 	revenue generated by the support specialist worker training and development services
307.18 	 and the reasonable costs associated with the support specialist worker training and 
307.19 	development services must not be used in making this calculation.
307.20 	(f) The agency-provider model must be used by individuals who have been restricted 
307.21 	by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 
307.22 	to 9505.2245.
307.23 	(g) Participants purchasing goods under this model, along with support worker 
307.24 	services, must:
307.25 	(1) specify the goods in the service delivery plan and detailed budget for 
307.26 	expenditures that must be approved by the consultation services provider or the case 
307.27 	manager/care coordinator; and
307.28 	(2) use the FMS contractor for the billing and payment of such goods.

307.29 	Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12, 
307.30 	is amended to read:
307.31 		Subd. 12.Requirements for enrollment of CFSS provider agency-provider
307.32 	 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of 
307.33 	enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in 
307.34 	a format determined by the commissioner, information and documentation that includes, 
307.35 	but is not limited to, the following:
308.1 	(1) the CFSS provider agency's agency-provider's current contact information 
308.2 	including address, telephone number, and e-mail address;
308.3 	(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
308.4 	 agency-provider's Medicaid revenue in the previous calendar year is less than or equal 
308.5 	to $300,000, the provider agency agency-provider must purchase a performance bond of 
308.6 	$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous 
308.7 	calendar year is greater than $300,000, the provider agency agency-provider must 
308.8 	purchase a performance bond of $100,000. The performance bond must be in a form 
308.9 	approved by the commissioner, must be renewed annually, and must allow for recovery of 
308.10 	costs and fees in pursuing a claim on the bond;
308.11 	(3) proof of fidelity bond coverage in the amount of $20,000;
308.12 	(4) proof of workers' compensation insurance coverage;
308.13 	(5) proof of liability insurance;
308.14 	(6) a description of the CFSS provider agency's agency-provider's organization 
308.15 	identifying the names of all owners, managing employees, staff, board of directors, and 
308.16 	the affiliations of the directors, and owners, or staff to other service providers;
308.17 	(7) a copy of the CFSS provider agency's agency-provider's written policies and 
308.18 	procedures including: hiring of employees; training requirements; service delivery; 
308.19 	and employee and consumer safety including process for notification and resolution 
308.20 	of consumer grievances, identification and prevention of communicable diseases, and 
308.21 	employee misconduct;
308.22 	(8) copies of all other forms the CFSS provider agency agency-provider uses in the 
308.23 	course of daily business including, but not limited to:
308.24 	(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time 
308.25 	sheet varies from the standard time sheet for CFSS services approved by the commissioner, 
308.26 	and a letter requesting approval of the CFSS provider agency's agency-provider's
308.27 	 nonstandard time sheet; and
308.28 	(ii) the a copy of the participant's individual CFSS provider agency's template for the 
308.29 	CFSS care service delivery plan;
308.30 	(9) a list of all training and classes that the CFSS provider agency agency-provider
308.31 	 requires of its staff providing CFSS services;
308.32 	(10) documentation that the CFSS provider agency agency-provider and staff have 
308.33 	successfully completed all the training required by this section;
308.34 	(11) documentation of the agency's agency-provider's marketing practices;
308.35 	(12) disclosure of ownership, leasing, or management of all residential properties 
308.36 	that are used or could be used for providing home care services;
309.1 	(13) documentation that the agency agency-provider will use at least the following 
309.2 	percentages of revenue generated from the medical assistance rate paid for CFSS services 
309.3 	for employee personal care assistant CFSS support worker wages and benefits: 72.5 
309.4 	percent of revenue from CFSS providers. The revenue generated by the support specialist
309.5 	 worker training and development services and the reasonable costs associated with the 
309.6 	support specialist worker training and development services shall not be used in making 
309.7 	this calculation; and
309.8 	(14) documentation that the agency agency-provider does not burden recipients'
309.9 	 participants' free exercise of their right to choose service providers by requiring personal 
309.10 	care assistants CFSS support workers to sign an agreement not to work with any particular 
309.11 	CFSS recipient participant or for another CFSS provider agency agency-provider after 
309.12 	leaving the agency and that the agency is not taking action on any such agreements or 
309.13 	requirements regardless of the date signed.
309.14 	(b) CFSS provider agencies agency-providers shall provide to the commissioner 
309.15 	the information specified in paragraph (a).
309.16 	(c) All CFSS provider agencies agency-providers shall require all employees in 
309.17 	management and supervisory positions and owners of the agency who are active in the 
309.18 	day-to-day management and operations of the agency to complete mandatory training as 
309.19 	determined by the commissioner. Employees in management and supervisory positions 
309.20 	and owners who are active in the day-to-day operations of an agency who have completed 
309.21 	the required training as an employee with a CFSS provider agency agency-provider do 
309.22 	not need to repeat the required training if they are hired by another agency, if they have 
309.23 	completed the training within the past three years. CFSS provider agency agency-provider
309.24 	 billing staff shall complete training about CFSS program financial management. Any new 
309.25 	owners or employees in management and supervisory positions involved in the day-to-day 
309.26 	operations are required to complete mandatory training as a requisite of working for the 
309.27 	agency. CFSS provider agencies certified for participation in Medicare as home health 
309.28 	agencies are exempt from the training required in this subdivision.
309.29 	(d) The commissioner shall send annual review notifications to agency-providers 30 
309.30 	days prior to renewal. The notification must:
309.31 	(1) list the materials and information the agency-provider is required to submit;
309.32 	(2) provide instructions on submitting information to the commissioner; and
309.33 	(3) provide a due date by which the commissioner must receive the requested 
309.34 	information.
310.1 	Agency-providers shall submit the required documentation for annual review within 
310.2 	30 days of notification from the commissioner. If no documentation is submitted, the 
310.3 	agency-provider enrollment number must be terminated or suspended.

310.4 	Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13, 
310.5 	is amended to read:
310.6 		Subd. 13.Budget model. (a) Under the budget model participants can may exercise 
310.7 	more responsibility and control over the services and supports described and budgeted 
310.8 	within the CFSS service delivery plan. Participants must use services provided by an FMS 
310.9 	contractor as defined in subdivision 2, paragraph (m). Under this model, participants may 
310.10 	use their approved service budget allocation to:
310.11 	(1) directly employ support workers, and pay wages, federal and state payroll taxes, 
310.12 	and premiums for workers' compensation, liability, and health insurance coverage; and
310.13 	(2) obtain supports and goods as defined in subdivision 7; and.
310.14 	(3) choose a range of support assistance services from the financial management 
310.15 	services (FMS) contractor related to:
310.16 	(i) assistance in managing the budget to meet the service delivery plan needs, 
310.17 	consistent with federal and state laws and regulations;
310.18 	(ii) the employment, training, supervision, and evaluation of workers by the 
310.19 	participant;
310.20 	(iii) acquisition and payment for supports and goods; and
310.21 	(iv) evaluation of individual service outcomes as needed for the scope of the 
310.22 	participant's degree of control and responsibility.
310.23 	(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) 
310.24 	may authorize a legal representative or participant's representative to do so on their behalf.
310.25 	(c) The commissioner shall disenroll or exclude participants from the budget model 
310.26 	and transfer them to the agency-provider model under the following circumstances that 
310.27 	include but are not limited to:
310.28 	(1) when a participant has been restricted by the Minnesota restricted recipient 
310.29 	program, in which case the participant may be excluded for a specified time period under 
310.30 	Minnesota Rules, parts 9505.2160 to 9505.2245;
310.31 	(2) when a participant exits the budget model during the participant's service plan 
310.32 	year. Upon transfer, the participant shall not access the budget model for the remainder of 
310.33 	that service plan year; or
310.34 	(3) when the department determines that the participant or participant's representative 
310.35 	or legal representative cannot manage participant responsibilities under the budget model. 
311.1 	The commissioner must develop policies for determining if a participant is unable to 
311.2 	manage responsibilities under the budget model.
311.3 	(d) A participant may appeal in writing to the department under section 256.045, 
311.4 	subdivision 3, to contest the department's decision under paragraph (c), clause (3), to 
311.5 	disenroll or exclude the participant from the budget model.
311.6 	(c) (e) The FMS contractor shall not provide CFSS services and supports under the 
311.7 	agency-provider service model. 
311.8 	(f) The FMS contractor shall provide service functions as determined by the 
311.9 	commissioner for budget model participants that include but are not limited to:
311.10 	(1) information and consultation about CFSS;
311.11 	(2) (1) assistance with the development of the detailed budget for expenditures 
311.12 	portion of the service delivery plan and budget model as requested by the consultation 
311.13 	services provider or participant;
311.14 	(3) (2) billing and making payments for budget model expenditures;
311.15 	(4) (3) assisting participants in fulfilling employer-related requirements according to 
311.16 	Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax 
311.17 	Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related 
311.18 	regulations and interpretations, including Code of Federal Regulations, title 26, section 
311.19 	31.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining 
311.20 	worker compensation coverage;
311.21 	(5) (4) data recording and reporting of participant spending; and
311.22 	(6) (5) other duties established in the contract with the department, including with 
311.23 	respect to providing assistance to the participant, participant's representative, or legal 
311.24 	representative in performing their employer responsibilities regarding support workers. 
311.25 	The support worker shall not be considered the employee of the financial management 
311.26 	services FMS contractor.; and
311.27 	(6) billing, payment, and accounting of approved expenditures for goods for 
311.28 	agency-provider participants.
311.29 	(d) A participant who requests to purchase goods and supports along with support 
311.30 	worker services under the agency-provider model must use the budget model with 
311.31 	a service delivery plan that specifies the amount of services to be authorized to the 
311.32 	agency-provider and the expenditures to be paid by the FMS contractor.
311.33 	(e) (g) The FMS contractor shall:
311.34 	(1) not limit or restrict the participant's choice of service or support providers or 
311.35 	service delivery models consistent with any applicable state and federal requirements;
312.1 	(2) provide the participant, consultation services provider, and the targeted case 
312.2 	manager, if applicable, with a monthly written summary of the spending for services and 
312.3 	supports that were billed against the spending budget;
312.4 	(3) be knowledgeable of state and federal employment regulations, including those 
312.5 	under the Fair Labor Standards Act of 1938, and comply with the requirements under the 
312.6 	Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the 
312.7 	Internal Revenue Code and related regulations and interpretations, including Code of 
312.8 	Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability 
312.9 	for vendor or fiscal employer agent, and any requirements necessary to process employer 
312.10 	and employee deductions, provide appropriate and timely submission of employer tax 
312.11 	liabilities, and maintain documentation to support medical assistance claims;
312.12 	(4) have current and adequate liability insurance and bonding and sufficient cash 
312.13 	flow as determined by the commissioner and have on staff or under contract a certified 
312.14 	public accountant or an individual with a baccalaureate degree in accounting;
312.15 	(5) assume fiscal accountability for state funds designated for the program and be 
312.16 	held liable for any overpayments or violations of applicable statutes or rules, including 
312.17 	but not limited to the Minnesota False Claims Act; and
312.18 	(6) maintain documentation of receipts, invoices, and bills to track all services and 
312.19 	supports expenditures for any goods purchased and maintain time records of support 
312.20 	workers. The documentation and time records must be maintained for a minimum of 
312.21 	five years from the claim date and be available for audit or review upon request by the 
312.22 	commissioner. Claims submitted by the FMS contractor to the commissioner for payment 
312.23 	must correspond with services, amounts, and time periods as authorized in the participant's 
312.24 	spending service budget and service plan and must contain specific identifying information 
312.25 	as determined by the commissioner.
312.26 	(f) (h) The commissioner of human services shall:
312.27 	(1) establish rates and payment methodology for the FMS contractor;
312.28 	(2) identify a process to ensure quality and performance standards for the FMS 
312.29 	contractor and ensure statewide access to FMS contractors; and
312.30 	(3) establish a uniform protocol for delivering and administering CFSS services 
312.31 	to be used by eligible FMS contractors.
312.32 	(g) The commissioner of human services shall disenroll or exclude participants from 
312.33 	the budget model and transfer them to the agency-provider model under the following 
312.34 	circumstances that include but are not limited to:
313.1 	(1) when a participant has been restricted by the Minnesota restricted recipient 
313.2 	program, the participant may be excluded for a specified time period under Minnesota 
313.3 	Rules, parts 9505.2160 to 9505.2245;
313.4 	(2) when a participant exits the budget model during the participant's service plan 
313.5 	year. Upon transfer, the participant shall not access the budget model for the remainder of 
313.6 	that service plan year; or
313.7 	(3) when the department determines that the participant or participant's representative 
313.8 	or legal representative cannot manage participant responsibilities under the budget model. 
313.9 	The commissioner must develop policies for determining if a participant is unable to 
313.10 	manage responsibilities under a budget model.
313.11 	(h) A participant may appeal under section 256.045, subdivision 3, in writing to the 
313.12 	department to contest the department's decision under paragraph (c), clause (3), to remove 
313.13 	or exclude the participant from the budget model.

313.14 	Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15, 
313.15 	is amended to read:
313.16 		Subd. 15.Documentation of support services provided. (a) Support services 
313.17 	provided to a participant by a support worker employed by either an agency-provider 
313.18 	or the participant acting as the employer must be documented daily by each support 
313.19 	worker, on a time sheet form approved by the commissioner. All documentation may be 
313.20 	Web-based, electronic, or paper documentation. The completed form must be submitted 
313.21 	on a monthly regular basis to the provider or the participant and the FMS contractor 
313.22 	selected by the participant to provide assistance with meeting the participant's employer 
313.23 	obligations and kept in the recipient's health participant's record.
313.24 	(b) The activity documentation must correspond to the written service delivery plan 
313.25 	and be reviewed by the agency-provider or the participant and the FMS contractor when 
313.26 	the participant is acting as the employer of the support worker.
313.27 	(c) The time sheet must be on a form approved by the commissioner documenting 
313.28 	time the support worker provides services in the home to the participant. The following 
313.29 	criteria must be included in the time sheet:
313.30 	(1) full name of the support worker and individual provider number;
313.31 	(2) provider agency-provider name and telephone numbers, if an agency-provider is
313.32 	 responsible for delivery services under the written service plan;
313.33 	(3) full name of the participant;
313.34 	(4) consecutive dates, including month, day, and year, and arrival and departure 
313.35 	times with a.m. or p.m. notations;
314.1 	(5) signatures of the participant or the participant's representative;
314.2 	(6) personal signature of the support worker;
314.3 	(7) any shared care provided, if applicable;
314.4 	(8) a statement that it is a federal crime to provide false information on CFSS 
314.5 	billings for medical assistance payments; and
314.6 	(9) dates and location of recipient participant stays in a hospital, care facility, or 
314.7 	incarceration.

314.8 	Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16, 
314.9 	is amended to read:
314.10 		Subd. 16.Support workers requirements. (a) Support workers shall:
314.11 	(1) enroll with the department as a support worker after a background study under 
314.12 	chapter 245C has been completed and the support worker has received a notice from the 
314.13 	commissioner that:
314.14 	(i) the support worker is not disqualified under section 245C.14; or
314.15 	(ii) is disqualified, but the support worker has received a set-aside of the 
314.16 	disqualification under section 245C.22;
314.17 	(2) have the ability to effectively communicate with the participant or the 
314.18 	participant's representative;
314.19 	(3) have the skills and ability to provide the services and supports according to 
314.20 	the person's participant's CFSS service delivery plan and respond appropriately to the 
314.21 	participant's needs;
314.22 	(4) not be a participant of CFSS, unless the support services provided by the support 
314.23 	worker differ from those provided to the support worker;
314.24 	(5) complete the basic standardized training as determined by the commissioner 
314.25 	before completing enrollment. The training must be available in languages other than 
314.26 	English and to those who need accommodations due to disabilities. Support worker 
314.27 	training must include successful completion of the following training components: basic 
314.28 	first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles 
314.29 	and responsibilities of support workers including information about basic body mechanics, 
314.30 	emergency preparedness, orientation to positive behavioral practices, orientation to 
314.31 	responding to a mental health crisis, fraud issues, time cards and documentation, and an 
314.32 	overview of person-centered planning and self-direction. Upon completion of the training 
314.33 	components, the support worker must pass the certification test to provide assistance 
314.34 	to participants;
314.35 	(6) complete training and orientation on the participant's individual needs; and
315.1 	(7) maintain the privacy and confidentiality of the participant, and not independently 
315.2 	determine the medication dose or time for medications for the participant.
315.3 	(b) The commissioner may deny or terminate a support worker's provider enrollment 
315.4 	and provider number if the support worker:
315.5 	(1) lacks the skills, knowledge, or ability to adequately or safely perform the 
315.6 	required work;
315.7 	(2) fails to provide the authorized services required by the participant employer;
315.8 	(3) has been intoxicated by alcohol or drugs while providing authorized services to 
315.9 	the participant or while in the participant's home;
315.10 	(4) has manufactured or distributed drugs while providing authorized services to the 
315.11 	participant or while in the participant's home; or
315.12 	(5) has been excluded as a provider by the commissioner of human services, or the 
315.13 	United States Department of Health and Human Services, Office of Inspector General, 
315.14 	from participation in Medicaid, Medicare, or any other federal health care program.
315.15 	(c) A support worker may appeal in writing to the commissioner to contest the 
315.16 	decision to terminate the support worker's provider enrollment and provider number.
315.17 	(d) A support worker must not provide or be paid for more than 275 hours of 
315.18 	CFSS per month, regardless of the number of participants the support worker serves or 
315.19 	the number of agency-providers or participant employers by which the support worker 
315.20 	is employed. The department shall not disallow the number of hours per day a support 
315.21 	worker works unless it violates other law.

315.22 	Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
315.23 	a subdivision to read:
315.24 		Subd. 16a.Exception to support worker requirements for continuity of services.
 315.25 	The support worker for a participant may be allowed to enroll with a different CFSS 
315.26 	agency-provider or FMS contractor upon initiation, rather than completion, of a new 
315.27 	background study according to chapter 245C, if the following conditions are met:
315.28 	(1) the commissioner determines that the support worker's change in enrollment or 
315.29 	affiliation is needed to ensure continuity of services and protect the health and safety 
315.30 	of the participant;
315.31 	(2) the chosen agency-provider or FMS contractor has been continuously enrolled as 
315.32 	a CFSS agency-provider or FMS contractor for at least two years or since the inception of 
315.33 	the CFSS program, whichever is shorter;
315.34 	(3) the participant served by the support worker chooses to transfer to the CFSS 
315.35 	agency-provider or the FMS contractor to which the support worker is transferring;
316.1 	(4) the support worker has been continuously enrolled with the former CFSS 
316.2 	agency-provider or FMS contractor since the support worker's last background study 
316.3 	was completed; and
316.4 	(5) the support worker continues to meet requirements of subdivision 16, excluding 
316.5 	paragraph (a), clause (1). 

316.6 	Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17, 
316.7 	is amended to read:
316.8 		Subd. 17.Support specialist requirements and payments Consultation services 
316.9 	description and duties. The commissioner shall develop qualifications, scope of 
316.10 	functions, and payment rates and service limits for a support specialist that may provide 
316.11 	additional or specialized assistance necessary to plan, implement, arrange, augment, or 
316.12 	evaluate services and supports.
316.13 	(a) Consultation services means providing assistance to the participant in making 
316.14 	informed choices regarding CFSS services in general and self-directed tasks in particular 
316.15 	and in developing a person-centered service delivery plan to achieve quality service 
316.16 	outcomes.
316.17 	(b) Consultation services is a required service that may include but is not limited to:
316.18 	(1) an initial and annual orientation to CFSS information and policies, including 
316.19 	selecting a service model;
316.20 	(2) assistance with the development, implementation, management, and evaluation 
316.21 	of the person-centered service delivery plan;
316.22 	(3) consultation on recruiting, selecting, training, managing, directing, evaluating, 
316.23 	and supervising support workers;
316.24 	(4) reviewing the use of and access to informal and community supports, goods, or 
316.25 	resources;
316.26 	(5) assistance with fulfilling responsibilities and requirements of CFSS including 
316.27 	modifying service delivery plans and changing service models; and
316.28 	(6) assistance with accessing FMS contractors or agency-providers.
316.29 	(c) Duties of a consultation services provider shall include but are not limited to:
316.30 	(1) review and finalization of the CFSS service delivery plan by the consultation 
316.31 	services provider organization;
316.32 	(2) distribution of copies of the final service delivery plan to the participant and 
316.33 	to the agency-provider or FMS contractor, case manager/care coordinator, and other 
316.34 	designated parties;
317.1 	(3) an evaluation of services upon receiving information from an FMS contractor 
317.2 	indicating spending or participant employer concerns;
317.3 	(4) a semiannual review of services if the participant does not have a case 
317.4 	manager/care coordinator and when the support worker is a paid parent of a minor 
317.5 	participant or the participant's spouse;
317.6 	(5) collection and reporting of data as required by the department; and
317.7 	(6) providing the participant with a copy of the service-related rights under 
317.8 	subdivision 20 at the start of consultation services.

317.9 	Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
317.10 	a subdivision to read:
317.11 		Subd. 17a.Consultation service provider qualifications and requirements.
 317.12 	The commissioner shall develop the qualifications and requirements for providers of 
317.13 	consultation services under subdivision 17. These providers must satisfy at least the 
317.14 	following qualifications and requirements:
317.15 	(1) are under contract with the department;
317.16 	(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the CFSS 
317.17 	or HCBS waiver agency-provider or vendor to the participant, or a lead agency;
317.18 	(3) meet the service standards as established by the commissioner;
317.19 	(4) employ lead professional staff with a minimum of three years of experience 
317.20 	in providing support planning, support broker, or consultation services and consumer 
317.21 	education to participants using a self-directed program using FMS under medical 
317.22 	assistance;
317.23 	(5) are knowledgeable about CFSS roles and responsibilities including those of the 
317.24 	certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
317.25 	(6) comply with medical assistance provider requirements;
317.26 	(7) understand the CFSS program and its policies;
317.27 	(8) are knowledgeable about self-directed principles and the application of the 
317.28 	person-centered planning process;
317.29 	(9) have general knowledge of the FMS contractor duties and participant 
317.30 	employment model, including all applicable federal, state, and local laws and regulations 
317.31 	regarding tax, labor, employment, and liability and workers' compensation coverage for 
317.32 	household workers; and
317.33 	(10) have all employees, including lead professional staff, staff in management 
317.34 	and supervisory positions, and owners of the agency who are active in the day-to-day 
318.1 	management and operations of the agency, complete training as specified in the contract 
318.2 	with the department.

318.3 	Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18, 
318.4 	is amended to read:
318.5 		Subd. 18.Service unit and budget allocation requirements and limits. (a) For the 
318.6 	agency-provider model, services will be authorized in units of service. The total service 
318.7 	unit amount must be established based upon the assessed need for CFSS services, and must 
318.8 	not exceed the maximum number of units available as determined under subdivision 8.
318.9 	(b) For the budget model, the service budget allocation allowed for services and 
318.10 	supports is established by multiplying the number of units authorized under subdivision 8 
318.11 	by the payment rate established by the commissioner defined in subdivision 8, paragraph 
318.12 	(g).

318.13 	Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
318.14 	a subdivision to read:
318.15 		Subd. 18a.Worker training and development services. (a) The commissioner 
318.16 	shall develop the scope of tasks and functions, service standards, and service limits for 
318.17 	worker training and development services.
318.18 	(b) Worker training and development services are in addition to the participant's 
318.19 	assessed service units or service budget. Services provided according to this subdivision 
318.20 	must:
318.21 	(1) help support workers obtain and expand the skills and knowledge necessary to 
318.22 	ensure competency in providing quality services as needed and defined in the participant's 
318.23 	service delivery plan;
318.24 	(2) be provided or arranged for by the agency-provider under subdivision 11 or 
318.25 	purchased by the participant employer under the budget model under subdivision 13; and
318.26 	(3) be described in the participant's CFSS service delivery plan and documented in 
318.27 	the participant's file.
318.28 	(c) Services covered under worker training and development shall include:
318.29 	(1) support worker training on the participant's individual assessed needs, condition, 
318.30 	or both, provided individually or in a group setting by a skilled and knowledgeable trainer 
318.31 	beyond any training the participant or participant's representative provides;
318.32 	(2) tuition for professional classes and workshops for the participant's support 
318.33 	workers that relate to the participant's assessed needs, condition, or both;
319.1 	(3) direct observation, monitoring, coaching, and documentation of support worker 
319.2 	job skills and tasks, beyond any training the participant or participant's representative 
319.3 	provides, including supervision of health-related tasks or behavioral supports that is 
319.4 	conducted by an appropriate professional based on the participant's assessed needs. These 
319.5 	services must be provided within 14 days of the start of services or the start of a new 
319.6 	support worker and must be specified in the participant's service delivery plan; and
319.7 	(4) reporting service and support concerns to the appropriate provider.
319.8 	(d) Worker training and development services shall not include:
319.9 	(1) general agency training, worker orientation, or training on CFSS self-directed 
319.10 	models;
319.11 	(2) payment for preparation or development time for the trainer or presenter;
319.12 	(3) payment of the support worker's salary or compensation during the training;
319.13 	(4) training or supervision provided by the participant, the participant's support 
319.14 	worker, or the participant's informal supports, including the participant's representative; or
319.15 	(5) services in excess of 96 units per annual service authorization, unless approved 
319.16 	by the department.

319.17 	Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23, 
319.18 	is amended to read:
319.19 		Subd. 23.Commissioner's access. When the commissioner is investigating a 
319.20 	possible overpayment of Medicaid funds, the commissioner must be given immediate 
319.21 	access without prior notice to the agency provider agency-provider or FMS contractor's 
319.22 	office during regular business hours and to documentation and records related to services 
319.23 	provided and submission of claims for services provided. Denying the commissioner 
319.24 	access to records is cause for immediate suspension of payment and terminating the agency 
319.25 	provider's enrollment according to section 256B.064 or terminating the FMS contract.

319.26 	Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24, 
319.27 	is amended to read:
319.28 		Subd. 24.CFSS agency-providers; background studies. CFSS agency-providers 
319.29 	enrolled to provide personal care assistance CFSS services under the medical assistance 
319.30 	program shall comply with the following:
319.31 	(1) owners who have a five percent interest or more and all managing employees 
319.32 	are subject to a background study as provided in chapter 245C. This applies to currently 
319.33 	enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS 
320.1 	agency-provider. "Managing employee" has the same meaning as Code of Federal 
320.2 	Regulations, title 42, section 455. An organization is barred from enrollment if:
320.3 	(i) the organization has not initiated background studies on owners managing 
320.4 	employees; or
320.5 	(ii) the organization has initiated background studies on owners and managing 
320.6 	employees, but the commissioner has sent the organization a notice that an owner or 
320.7 	managing employee of the organization has been disqualified under section 245C.14, and 
320.8 	the owner or managing employee has not received a set-aside of the disqualification 
320.9 	under section 245C.22;
320.10 	(2) a background study must be initiated and completed for all support specialists
320.11 	 staff who will have direct contact with the participant to provide worker training and 
320.12 	development; and
320.13 	(3) a background study must be initiated and completed for all support workers.

320.14 	Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to 
320.15 	read:

320.16 	EFFECTIVE DATE. This section is effective upon federal approval but no earlier 
320.17 	than April 1, 2014. The service will begin 90 days after federal approval or April 1, 
320.18 	2014, whichever is later. The commissioner of human services shall notify the revisor of 
320.19 	statutes when this occurs.

320.20 	ARTICLE 29
320.21 	CONTINUING CARE

320.22 	Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
320.23 		Subd. 4.Licensing data. (a) As used in this subdivision:
320.24 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
320.25 	welfare system pertaining to persons licensed or registered or who apply for licensure 
320.26 	or registration or who formerly were licensed or registered under the authority of the 
320.27 	commissioner of human services;
320.28 	(2) "client" means a person who is receiving services from a licensee or from an 
320.29 	applicant for licensure; and
320.30 	(3) "personal and personal financial data" are Social Security numbers, identity 
320.31 	of and letters of reference, insurance information, reports from the Bureau of Criminal 
320.32 	Apprehension, health examination reports, and social/home studies.
321.1 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, 
321.2 	license holders, and former licensees are public: name, address, telephone number of 
321.3 	licensees, date of receipt of a completed application, dates of licensure, licensed capacity, 
321.4 	type of client preferred, variances granted, record of training and education in child care 
321.5 	and child development, type of dwelling, name and relationship of other family members, 
321.6 	previous license history, class of license, the existence and status of complaints, and the 
321.7 	number of serious injuries to or deaths of individuals in the licensed program as reported 
321.8 	to the commissioner of human services, the local social services agency, or any other 
321.9 	county welfare agency. For purposes of this clause, a serious injury is one that is treated 
321.10 	by a physician.
321.11 	(ii) When a correction order, an order to forfeit a fine, an order of license suspension, 
321.12 	an order of temporary immediate suspension, an order of license revocation, an order 
321.13 	of license denial, or an order of conditional license has been issued, or a complaint is 
321.14 	resolved, the following data on current and former licensees and applicants are public: the 
321.15 	substance and investigative findings of the licensing or maltreatment complaint, licensing 
321.16 	violation, or substantiated maltreatment; the record of informal resolution of a licensing 
321.17 	violation; orders of hearing; findings of fact; conclusions of law; specifications of the final 
321.18 	correction order, fine, suspension, temporary immediate suspension, revocation, denial, or 
321.19 	conditional license contained in the record of licensing action; whether a fine has been 
321.20 	paid; and the status of any appeal of these actions.
321.21 	(iii) When a license denial under section 245A.05 or a sanction under section 
321.22 	245A.07 is based on a determination that the license holder or applicant is responsible for 
321.23 	maltreatment under section 626.556 or 626.557, the identity of the applicant or license 
321.24 	holder as the individual responsible for maltreatment is public data at the time of the 
321.25 	issuance of the license denial or sanction.
321.26 	(iv) When a license denial under section 245A.05 or a sanction under section 
321.27 	245A.07 is based on a determination that the license holder or applicant is disqualified 
321.28 	under chapter 245C, the identity of the license holder or applicant as the disqualified 
321.29 	individual and the reason for the disqualification are public data at the time of the 
321.30 	issuance of the licensing sanction or denial. If the applicant or license holder requests 
321.31 	reconsideration of the disqualification and the disqualification is affirmed, the reason for 
321.32 	the disqualification and the reason to not set aside the disqualification are public data.
321.33 	(2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b, 
321.34 	when any person subject to disqualification under section 245C.14 in connection with a 
321.35 	license to provide family day care for children, child care center services, foster care for 
321.36 	children in the provider's home, or foster care or day care services for adults in the provider's 
322.1 	home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is 
322.2 	a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment 
322.3 	is public data. For purposes of this clause, a person is a substantiated perpetrator if the 
322.4 	maltreatment determination has been upheld under section 256.045; 626.556, subdivision 
322.5 	10i; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely 
322.6 	exercised appeal rights under these sections, except as provided under clause (1).
322.7 	(3) For applicants who withdraw their application prior to licensure or denial of a 
322.8 	license, the following data are public: the name of the applicant, the city and county in 
322.9 	which the applicant was seeking licensure, the dates of the commissioner's receipt of the 
322.10 	initial application and completed application, the type of license sought, and the date 
322.11 	of withdrawal of the application.
322.12 	(4) For applicants who are denied a license, the following data are public: the name 
322.13 	and address of the applicant, the city and county in which the applicant was seeking 
322.14 	licensure, the dates of the commissioner's receipt of the initial application and completed 
322.15 	application, the type of license sought, the date of denial of the application, the nature of 
322.16 	the basis for the denial, the record of informal resolution of a denial, orders of hearings, 
322.17 	findings of fact, conclusions of law, specifications of the final order of denial, and the 
322.18 	status of any appeal of the denial.
322.19 	(5) The following data on persons subject to disqualification under section 245C.14 in 
322.20 	connection with a license to provide family day care for children, child care center services, 
322.21 	foster care for children in the provider's home, or foster care or day care services for adults 
322.22 	in the provider's home, are public: the nature of any disqualification set aside under section 
322.23 	245C.22, subdivisions 2 and 4, and the reasons for setting aside the disqualification; the 
322.24 	nature of any disqualification for which a variance was granted under sections 245A.04, 
322.25 	subdivision 9; and 245C.30, and the reasons for granting any variance under section 
322.26 	245A.04, subdivision 9; and, if applicable, the disclosure that any person subject to 
322.27 	a background study under section 245C.03, subdivision 1, has successfully passed a 
322.28 	background study. If a licensing sanction under section 245A.07, or a license denial under 
322.29 	section 245A.05, is based on a determination that an individual subject to disqualification 
322.30 	under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction 
322.31 	or denial is public data. As specified in clause (1), item (iv), if the disqualified individual 
322.32 	is the license holder or applicant, the identity of the license holder or applicant and the 
322.33 	reason for the disqualification are public data; and, if the license holder or applicant 
322.34 	requested reconsideration of the disqualification and the disqualification is affirmed, the 
322.35 	reason for the disqualification and the reason to not set aside the disqualification are 
323.1 	public data. If the disqualified individual is an individual other than the license holder or 
323.2 	applicant, the identity of the disqualified individual shall remain private data.
323.3 	(6) When maltreatment is substantiated under section 626.556 or 626.557 and the 
323.4 	victim and the substantiated perpetrator are affiliated with a program licensed under 
323.5 	chapter 245A, the commissioner of human services, local social services agency, or 
323.6 	county welfare agency may inform the license holder where the maltreatment occurred of 
323.7 	the identity of the substantiated perpetrator and the victim.
323.8 	(7) Notwithstanding clause (1), for child foster care, only the name of the license 
323.9 	holder and the status of the license are public if the county attorney has requested that data 
323.10 	otherwise classified as public data under clause (1) be considered private data based on the 
323.11 	best interests of a child in placement in a licensed program.
323.12 	(c) The following are private data on individuals under section 13.02, subdivision 
323.13 	12, or nonpublic data under section 13.02, subdivision 9: personal and personal financial 
323.14 	data on family day care program and family foster care program applicants and licensees 
323.15 	and their family members who provide services under the license.
323.16 	(d) The following are private data on individuals: the identity of persons who have 
323.17 	made reports concerning licensees or applicants that appear in inactive investigative data, 
323.18 	and the records of clients or employees of the licensee or applicant for licensure whose 
323.19 	records are received by the licensing agency for purposes of review or in anticipation of a 
323.20 	contested matter. The names of reporters of complaints or alleged violations of licensing 
323.21 	standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged 
323.22 	maltreatment under sections 626.556 and 626.557, are confidential data and may be 
323.23 	disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
323.24 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under 
323.25 	this subdivision become public data if submitted to a court or administrative law judge as 
323.26 	part of a disciplinary proceeding in which there is a public hearing concerning a license 
323.27 	which has been suspended, immediately suspended, revoked, or denied.
323.28 	(f) Data generated in the course of licensing investigations that relate to an alleged 
323.29 	violation of law are investigative data under subdivision 3.
323.30 	(g) Data that are not public data collected, maintained, used, or disseminated under 
323.31 	this subdivision that relate to or are derived from a report as defined in section 626.556, 
323.32 	subdivision 2, or 626.5572, subdivision 18, are subject to the destruction provisions of 
323.33 	sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
323.34 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
323.35 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
323.36 	defined in section 626.556 or 626.557 may be exchanged with the Department of Health 
324.1 	for purposes of completing background studies pursuant to section 144.057 and with 
324.2 	the Department of Corrections for purposes of completing background studies pursuant 
324.3 	to section 241.021.
324.4 	(i) Data on individuals collected according to licensing activities under chapters 
324.5 	245A and 245C, data on individuals collected by the commissioner of human services 
324.6 	according to investigations under chapters 245A, 245B, and 245C, and 245D, and 
324.7 	sections 626.556 and 626.557 may be shared with the Department of Human Rights, the 
324.8 	Department of Health, the Department of Corrections, the ombudsman for mental health 
324.9 	and developmental disabilities, and the individual's professional regulatory board when 
324.10 	there is reason to believe that laws or standards under the jurisdiction of those agencies may 
324.11 	have been violated or the information may otherwise be relevant to the board's regulatory 
324.12 	jurisdiction. Background study data on an individual who is the subject of a background 
324.13 	study under chapter 245C for a licensed service for which the commissioner of human 
324.14 	services is the license holder may be shared with the commissioner and the commissioner's 
324.15 	delegate by the licensing division. Unless otherwise specified in this chapter, the identity 
324.16 	of a reporter of alleged maltreatment or licensing violations may not be disclosed.
324.17 	(j) In addition to the notice of determinations required under section 626.556, 
324.18 	subdivision 10f, if the commissioner or the local social services agency has determined 
324.19 	that an individual is a substantiated perpetrator of maltreatment of a child based on sexual 
324.20 	abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social 
324.21 	services agency knows that the individual is a person responsible for a child's care in 
324.22 	another facility, the commissioner or local social services agency shall notify the head 
324.23 	of that facility of this determination. The notification must include an explanation of the 
324.24 	individual's available appeal rights and the status of any appeal. If a notice is given under 
324.25 	this paragraph, the government entity making the notification shall provide a copy of the 
324.26 	notice to the individual who is the subject of the notice.
324.27 	(k) All not public data collected, maintained, used, or disseminated under this 
324.28 	subdivision and subdivision 3 may be exchanged between the Department of Human 
324.29 	Services, Licensing Division, and the Department of Corrections for purposes of 
324.30 	regulating services for which the Department of Human Services and the Department 
324.31 	of Corrections have regulatory authority.

324.32 	Sec. 2. Minnesota Statutes 2012, section 144.0724, as amended by Laws 2014, chapter 
324.33 	147, section 1, is amended to read:
324.34 	144.0724 RESIDENT REIMBURSEMENT CLASSIFICATION.
325.1 		Subdivision 1.Resident reimbursement case mix classifications. The 
325.2 	commissioner of health shall establish resident reimbursement classifications based upon 
325.3 	the assessments of residents of nursing homes and boarding care homes conducted under 
325.4 	this section and according to section 256B.438. 
325.5 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
325.6 	meanings given.
325.7 	(a) "Assessment reference date" or "ARD" means the specific end point for 
325.8 	look-back periods in the MDS assessment process. This look-back period is also called 
325.9 	the observation or assessment period.
325.10 	(b) "Case mix index" means the weighting factors assigned to the RUG-IV 
325.11 	classifications.
325.12 	(c) "Index maximization" means classifying a resident who could be assigned to 
325.13 	more than one category, to the category with the highest case mix index.
325.14 	(d) "Minimum data set" or "MDS" means a core set of screening, clinical assessment, 
325.15 	and functional status elements, that include common definitions and coding categories 
325.16 	specified by the Centers for Medicare and Medicaid Services and designated by the 
325.17 	Minnesota Department of Health.
325.18 	(e) "Representative" means a person who is the resident's guardian or conservator, 
325.19 	the person authorized to pay the nursing home expenses of the resident, a representative of 
325.20 	the Office of Ombudsman for Long-Term Care whose assistance has been requested, or 
325.21 	any other individual designated by the resident.
325.22 	(f) "Resource utilization groups" or "RUG" means the system for grouping a nursing 
325.23 	facility's residents according to their clinical and functional status identified in data 
325.24 	supplied by the facility's minimum data set.
325.25 	(g) "Activities of daily living" means grooming, dressing, bathing, transferring, 
325.26 	mobility, positioning, eating, and toileting.
325.27 	(h) "Nursing facility level of care determination" means the assessment process 
325.28 	that results in a determination of a resident's or prospective resident's need for nursing 
325.29 	facility level of care as established in subdivision 11 for purposes of medical assistance 
325.30 	payment of long-term care services for:
325.31 	(1) nursing facility services under section 256B.434 or 256B.441;
325.32 	(2) elderly waiver services under section 256B.0915;
325.33 	(3) CADI and BI waiver services under section 256B.49; and
325.34 	(4) state payment of alternative care services under section 256B.0913.
325.35 		Subd. 3a.Resident reimbursement classifications beginning January 1, 2012.
 325.36 	(a) Beginning January 1, 2012, resident reimbursement classifications shall be based 
326.1 	on the minimum data set, version 3.0 assessment instrument, or its successor version 
326.2 	mandated by the Centers for Medicare and Medicaid Services that nursing facilities are 
326.3 	required to complete for all residents. The commissioner of health shall establish resident 
326.4 	classifications according to the RUG-IV, 48 group, resource utilization groups. Resident 
326.5 	classification must be established based on the individual items on the minimum data set, 
326.6 	which must be completed according to the Long Term Care Facility Resident Assessment 
326.7 	Instrument User's Manual Version 3.0 or its successor issued by the Centers for Medicare 
326.8 	and Medicaid Services.
326.9 	(b) Each resident must be classified based on the information from the minimum 
326.10 	data set according to general categories as defined in the Case Mix Classification Manual 
326.11 	for Nursing Facilities issued by the Minnesota Department of Health.
326.12 		Subd. 4.Resident assessment schedule. (a) A facility must conduct and 
326.13 	electronically submit to the commissioner of health MDS assessments that conform with 
326.14 	the assessment schedule defined by Code of Federal Regulations, title 42, section 483.20, 
326.15 	and published by the United States Department of Health and Human Services, Centers for 
326.16 	Medicare and Medicaid Services, in the Long Term Care Assessment Instrument User's 
326.17 	Manual, version 3.0, and subsequent updates when issued by the Centers for Medicare 
326.18 	and Medicaid Services. The commissioner of health may substitute successor manuals or 
326.19 	question and answer documents published by the United States Department of Health and 
326.20 	Human Services, Centers for Medicare and Medicaid Services, to replace or supplement 
326.21 	the current version of the manual or document.
326.22 	(b) The assessments used to determine a case mix classification for reimbursement 
326.23 	include the following:
326.24 	(1) a new admission assessment;
326.25 	(2) an annual assessment which must have an assessment reference date (ARD) 
326.26 	within 92 days of the previous assessment and within 366 days of the ARD of the previous 
326.27 	comprehensive assessment;
326.28 	(3) a significant change in status assessment must be completed within 14 days of 
326.29 	the identification of a significant change; 
326.30 	(4) all quarterly assessments must have an assessment reference date (ARD) within 
326.31 	92 days of the ARD of the previous assessment;
326.32 	(5) any significant correction to a prior comprehensive assessment, if the assessment 
326.33 	being corrected is the current one being used for RUG classification; and
326.34 	(6) any significant correction to a prior quarterly assessment, if the assessment being 
326.35 	corrected is the current one being used for RUG classification.
327.1 	(c) In addition to the assessments listed in paragraph (b), the assessments used to 
327.2 	determine nursing facility level of care include the following:
327.3 	(1) preadmission screening completed under section 256B.0911, subdivision 4a, 
327.4 	by a county, tribe, or managed care organization under contract with the Department 
327.5 	of Human Services; and
327.6 	(2) a face-to-face long-term care consultation assessment completed under section 
327.7 	256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or managed care organization 
327.8 	under contract with the Department of Human Services.
327.9 		Subd. 5.Short stays. (a) A facility must submit to the commissioner of health an 
327.10 	admission assessment for all residents who stay in the facility 14 days or less.
327.11 	(b) Notwithstanding the admission assessment requirements of paragraph (a), a 
327.12 	facility may elect to accept a short stay rate with a case mix index of 1.0 for all facility 
327.13 	residents who stay 14 days or less in lieu of submitting an admission assessment. Facilities 
327.14 	shall make this election annually.
327.15 	(c) Nursing facilities must elect one of the options described in paragraphs (a) and 
327.16 	(b) by reporting to the commissioner of health, as prescribed by the commissioner. The 
327.17 	election is effective on July 1 each year.
327.18 		Subd. 6.Penalties for late or nonsubmission. (a) A facility that fails to complete 
327.19 	or submit an assessment according to subdivisions 4 and 5 for a RUG-IV classification 
327.20 	within seven days of the time requirements listed in the Long-Term Care Facility Resident 
327.21 	Assessment Instrument User's Manual is subject to a reduced rate for that resident. The 
327.22 	reduced rate shall be the lowest rate for that facility. The reduced rate is effective on the 
327.23 	day of admission for new admission assessments, on the ARD for significant change in 
327.24 	status assessments, or on the day that the assessment was due for all other assessments and 
327.25 	continues in effect until the first day of the month following the date of submission and 
327.26 	acceptance of the resident's assessment.
327.27 	(b) If loss of revenue due to penalties incurred by a facility for any period of 92 days 
327.28 	are equal to or greater than 1.0 percent of the total operating costs on the facility's most 
327.29 	recent annual statistical and cost report, a facility may apply to the commissioner of 
327.30 	human services for a reduction in the total penalty amount. The commissioner of human 
327.31 	services, in consultation with the commissioner of health, may, at the sole discretion of 
327.32 	the commissioner of human services, limit the penalty for residents covered by medical 
327.33 	assistance to 15 days.
327.34 		Subd. 7.Notice of resident reimbursement classification. (a) The commissioner 
327.35 	of health shall provide to a nursing facility a notice for each resident of the reimbursement 
327.36 	classification established under subdivision 1. The notice must inform the resident of the 
328.1 	classification that was assigned, the opportunity to review the documentation supporting 
328.2 	the classification, the opportunity to obtain clarification from the commissioner, and the 
328.3 	opportunity to request a reconsideration of the classification and the address and telephone 
328.4 	number of the Office of Ombudsman for Long-Term Care. The commissioner must 
328.5 	transmit the notice of resident classification by electronic means to the nursing facility. 
328.6 	A nursing facility is responsible for the distribution of the notice to each resident, to the 
328.7 	person responsible for the payment of the resident's nursing home expenses, or to another 
328.8 	person designated by the resident. This notice must be distributed within three working 
328.9 	days after the facility's receipt of the electronic file of notice of case mix classifications 
328.10 	from the commissioner of health.
328.11 	(b) If a facility submits a modification to the most recent assessment used to establish 
328.12 	a case mix classification conducted under subdivision 3 that results in a change in case 
328.13 	mix classification, the facility shall give written notice to the resident or the resident's 
328.14 	representative about the item that was modified and the reason for the modification. The 
328.15 	notice of modified assessment may be provided at the same time that the resident or 
328.16 	resident's representative is provided the resident's modified notice of classification.
328.17 		Subd. 8.Request for reconsideration of resident classifications. (a) The resident, 
328.18 	or resident's representative, or the nursing facility or boarding care home may request that 
328.19 	the commissioner of health reconsider the assigned reimbursement classification. The 
328.20 	request for reconsideration must be submitted in writing to the commissioner within 
328.21 	30 days of the day the resident or the resident's representative receives the resident 
328.22 	classification notice. The request for reconsideration must include the name of the 
328.23 	resident, the name and address of the facility in which the resident resides, the reasons 
328.24 	for the reconsideration, and documentation supporting the request. The documentation 
328.25 	accompanying the reconsideration request is limited to a copy of the MDS that determined 
328.26 	the classification and other documents that would support or change the MDS findings.
328.27 	(b) Upon request, the nursing facility must give the resident or the resident's 
328.28 	representative a copy of the assessment form and the other documentation that was given 
328.29 	to the commissioner of health to support the assessment findings. The nursing facility 
328.30 	shall also provide access to and a copy of other information from the resident's record that 
328.31 	has been requested by or on behalf of the resident to support a resident's reconsideration 
328.32 	request. A copy of any requested material must be provided within three working days of 
328.33 	receipt of a written request for the information. Notwithstanding any law to the contrary, 
328.34 	the facility may not charge a fee for providing copies of the requested documentation. 
328.35 	If a facility fails to provide the material within this time, it is subject to the issuance 
328.36 	of a correction order and penalty assessment under sections 144.653 and 144A.10. 
329.1 	Notwithstanding those sections, any correction order issued under this subdivision must 
329.2 	require that the nursing facility immediately comply with the request for information and 
329.3 	that as of the date of the issuance of the correction order, the facility shall forfeit to the 
329.4 	state a $100 fine for the first day of noncompliance, and an increase in the $100 fine by 
329.5 	$50 increments for each day the noncompliance continues.
329.6 	(c) In addition to the information required under paragraphs (a) and (b), a 
329.7 	reconsideration request from a nursing facility must contain the following information: (i) 
329.8 	the date the reimbursement classification notices were received by the facility; (ii) the date 
329.9 	the classification notices were distributed to the resident or the resident's representative; 
329.10 	and (iii) a copy of a notice sent to the resident or to the resident's representative. This 
329.11 	notice must inform the resident or the resident's representative that a reconsideration 
329.12 	of the resident's classification is being requested, the reason for the request, that the 
329.13 	resident's rate will change if the request is approved by the commissioner, the extent of the 
329.14 	change, that copies of the facility's request and supporting documentation are available 
329.15 	for review, and that the resident also has the right to request a reconsideration. If the 
329.16 	facility fails to provide the required information listed in item (iii) with the reconsideration 
329.17 	request, the commissioner may request that the facility provide the information within 14 
329.18 	calendar days. The reconsideration request must be denied if the information is then not 
329.19 	provided, and the facility may not make further reconsideration requests on that specific 
329.20 	reimbursement classification.
329.21 	(d) Reconsideration by the commissioner must be made by individuals not 
329.22 	involved in reviewing the assessment, audit, or reconsideration that established the 
329.23 	disputed classification. The reconsideration must be based upon the assessment that 
329.24 	determined the classification and upon the information provided to the commissioner 
329.25 	under paragraphs (a) and (b). If necessary for evaluating the reconsideration request, the 
329.26 	commissioner may conduct on-site reviews. Within 15 working days of receiving the 
329.27 	request for reconsideration, the commissioner shall affirm or modify the original resident 
329.28 	classification. The original classification must be modified if the commissioner determines 
329.29 	that the assessment resulting in the classification did not accurately reflect characteristics 
329.30 	of the resident at the time of the assessment. The resident and the nursing facility or 
329.31 	boarding care home shall be notified within five working days after the decision is made. 
329.32 	A decision by the commissioner under this subdivision is the final administrative decision 
329.33 	of the agency for the party requesting reconsideration.
329.34 	(e) The resident classification established by the commissioner shall be the 
329.35 	classification that applies to the resident while the request for reconsideration is pending. 
329.36 	If a request for reconsideration applies to an assessment used to determine nursing facility 
330.1 	level of care under subdivision 4, paragraph (c), the resident shall continue to be eligible 
330.2 	for nursing facility level of care while the request for reconsideration is pending.
330.3 	(f) The commissioner may request additional documentation regarding a 
330.4 	reconsideration necessary to make an accurate reconsideration determination.
330.5 		Subd. 9.Audit authority. (a) The commissioner shall audit the accuracy of resident 
330.6 	assessments performed under section 256B.438 through any of the following: desk 
330.7 	audits; on-site review of residents and their records; and interviews with staff, residents, 
330.8 	or residents' families. The commissioner shall reclassify a resident if the commissioner 
330.9 	determines that the resident was incorrectly classified.
330.10 	(b) The commissioner is authorized to conduct on-site audits on an unannounced 
330.11 	basis.
330.12 	(c) A facility must grant the commissioner access to examine the medical records 
330.13 	relating to the resident assessments selected for audit under this subdivision. The 
330.14 	commissioner may also observe and speak to facility staff and residents.
330.15 	(d) The commissioner shall consider documentation under the time frames for 
330.16 	coding items on the minimum data set as set out in the Long-Term Care Facility Resident 
330.17 	Assessment Instrument User's Manual published by the Centers for Medicare and 
330.18 	Medicaid Services.
330.19 	(e) The commissioner shall develop an audit selection procedure that includes the 
330.20 	following factors:
330.21 	(1) Each facility shall be audited annually. If a facility has two successive audits in 
330.22 	which the percentage of change is five percent or less and the facility has not been the 
330.23 	subject of a special audit in the past 36 months, the facility may be audited biannually. 
330.24 	A stratified sample of 15 percent, with a minimum of ten assessments, of the most 
330.25 	current assessments shall be selected for audit. If more than 20 percent of the RUG-IV 
330.26 	classifications are changed as a result of the audit, the audit shall be expanded to a second 
330.27 	15 percent sample, with a minimum of ten assessments. If the total change between 
330.28 	the first and second samples is 35 percent or greater, the commissioner may expand the 
330.29 	audit to all of the remaining assessments.
330.30 	(2) If a facility qualifies for an expanded audit, the commissioner may audit the 
330.31 	facility again within six months. If a facility has two expanded audits within a 24-month 
330.32 	period, that facility will be audited at least every six months for the next 18 months.
330.33 	(3) The commissioner may conduct special audits if the commissioner determines 
330.34 	that circumstances exist that could alter or affect the validity of case mix classifications of 
330.35 	residents. These circumstances include, but are not limited to, the following:
330.36 	(i) frequent changes in the administration or management of the facility;
331.1 	(ii) an unusually high percentage of residents in a specific case mix classification;
331.2 	(iii) a high frequency in the number of reconsideration requests received from 
331.3 	a facility;
331.4 	(iv) frequent adjustments of case mix classifications as the result of reconsiderations 
331.5 	or audits;
331.6 	(v) a criminal indictment alleging provider fraud; 
331.7 	(vi) other similar factors that relate to a facility's ability to conduct accurate 
331.8 	assessments;
331.9 	(vii) an atypical pattern of scoring minimum data set items;
331.10 	(viii) nonsubmission of assessments;
331.11 	(ix) late submission of assessments; or
331.12 	(x) a previous history of audit changes of 35 percent or greater.
331.13 	(f) Within 15 working days of completing the audit process, the commissioner shall 
331.14 	make available electronically the results of the audit to the facility. If the results of the 
331.15 	audit reflect a change in the resident's case mix classification, a case mix classification 
331.16 	notice will be made available electronically to the facility, using the procedure in 
331.17 	subdivision 7, paragraph (a). The notice must contain the resident's classification and a 
331.18 	statement informing the resident, the resident's authorized representative, and the facility 
331.19 	of their right to review the commissioner's documents supporting the classification and to 
331.20 	request a reconsideration of the classification. This notice must also include the address 
331.21 	and telephone number of the Office of Ombudsman for Long-Term Care.
331.22 		Subd. 10.Transition. After implementation of this section, reconsiderations 
331.23 	requested for classifications made under section 144.0722, subdivision 1, shall be 
331.24 	determined under section 144.0722, subdivision 3.
331.25 		Subd. 11.Nursing facility level of care. (a) For purposes of medical assistance 
331.26 	payment of long-term care services, a recipient must be determined, using assessments 
331.27 	defined in subdivision 4, to meet one of the following nursing facility level of care criteria:
331.28 	(1) the person requires formal clinical monitoring at least once per day;
331.29 	(2) the person needs the assistance of another person or constant supervision to begin 
331.30 	and complete at least four of the following activities of living: bathing, bed mobility, 
331.31 	dressing, eating, grooming, toileting, transferring, and walking;
331.32 	(3) the person needs the assistance of another person or constant supervision to begin 
331.33 	and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
331.34 	(4) the person has significant difficulty with memory, using information, daily 
331.35 	decision making, or behavioral needs that require intervention;
331.36 	(5) the person has had a qualifying nursing facility stay of at least 90 days;
332.1 	(6) the person meets the nursing facility level of care criteria determined 90 days 
332.2 	after admission or on the first quarterly assessment after admission, whichever is later; or
332.3 	(7) the person is determined to be at risk for nursing facility admission or 
332.4 	readmission through a face-to-face long-term care consultation assessment as specified 
332.5 	in section 256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or managed care 
332.6 	organization under contract with the Department of Human Services. The person is 
332.7 	considered at risk under this clause if the person currently lives alone or will live alone 
332.8 	upon discharge or be homeless without the person's current housing type and also meets 
332.9 	one of the following criteria:
332.10 	(i) the person has experienced a fall resulting in a fracture;
332.11 	(ii) the person has been determined to be at risk of maltreatment or neglect, 
332.12 	including self-neglect; or
332.13 	(iii) the person has a sensory impairment that substantially impacts functional ability 
332.14 	and maintenance of a community residence.
332.15 	(b) The assessment used to establish medical assistance payment for nursing facility 
332.16 	services must be the most recent assessment performed under subdivision 4, paragraph 
332.17 	(b), that occurred no more than 90 calendar days before the effective date of medical 
332.18 	assistance eligibility for payment of long-term care services. In no case shall medical 
332.19 	assistance payment for long-term care services occur prior to the date of the determination 
332.20 	of nursing facility level of care.
332.21 	(c) The assessment used to establish medical assistance payment for long-term care 
332.22 	services provided under sections 256B.0915 and 256B.49 and alternative care payment 
332.23 	for services provided under section 256B.0913 must be the most recent face-to-face 
332.24 	assessment performed under section 256B.0911, subdivision 3a, 3b, or 4d, that occurred 
332.25 	no more than 60 calendar days before the effective date of medical assistance eligibility 
332.26 	for payment of long-term care services.
332.27 		Subd. 12.Appeal of nursing facility level of care determination. (a) A resident or 
332.28 	prospective resident whose level of care determination results in a denial of long-term care 
332.29 	services can appeal the determination as outlined in section 256B.0911, subdivision 3a, 
332.30 	paragraph (h), clause (9).
332.31 	(b) The commissioner of human services shall ensure that notice of changes in 
332.32 	eligibility due to a nursing facility level of care determination is provided to each affected 
332.33 	recipient or the recipient's guardian at least 30 days before the effective date of the change. 
332.34 	The notice shall include the following information:
332.35 	(1) how to obtain further information on the changes;
332.36 	(2) how to receive assistance in obtaining other services;
333.1 	(3) a list of community resources; and
333.2 	(4) appeal rights.
333.3 	A recipient who meets the criteria in section 256B.0922, subdivision 2, paragraph (a), 
333.4 	clauses (1) and (2), may request continued services pending appeal within the time period 
333.5 	allowed to request an appeal under section 256.045, subdivision 3, paragraph (h). This 
333.6 	paragraph is in effect for appeals filed between January 1, 2015, and December 31, 2016.

333.7 	EFFECTIVE DATE. This section is effective January 1, 2015.

333.8 	Sec. 3. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
333.9 	245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY 
333.10 	MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.
333.11 		Subdivision 1.Rules governing the use of positive support strategies and 
333.12 	restricting or prohibiting restrictive interventions. The commissioner of human 
333.13 	services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt rules 
333.14 	governing the use of positive support strategies, safety interventions, and emergency use 
333.15 	of manual restraint, and restricting or prohibiting the use of restrictive interventions,  in 
333.16 	all facilities and services licensed under chapter 245D., and in all licensed facilities and 
333.17 	licensed services serving persons with a developmental disability or related condition. 
333.18 	For the purposes of this section, "developmental disability or related condition" has the 
333.19 	meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
333.20 		Subd. 2.Data collection. (a) The commissioner shall, with stakeholder input, 
333.21 	develop identify data collection elements specific to incidents of emergency use of 
333.22 	manual restraint and positive support transition plans for persons receiving services from 
333.23 	providers governed licensed facilities and licensed services  under chapter 245D and in 
333.24 	licensed facilities and licensed services serving persons with a developmental disability 
333.25 	or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective 
333.26 	January 1, 2014. Providers Licensed facilities and licensed services shall report the data in 
333.27 	a format and at a frequency determined by the commissioner of human services. Providers 
333.28 	shall submit the data to the commissioner and the Office of the Ombudsman for Mental 
333.29 	Health and Developmental Disabilities.
333.30 	(b) Beginning July 1, 2013, providers licensed facilities and licensed services
333.31 	 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data 
333.32 	regarding the use of all controlled procedures identified in Minnesota Rules, part 
333.33 	9525.2740, in a format and at a frequency determined by the commissioner. Providers 
334.1 	shall submit the data to the commissioner and the Office of the Ombudsman for Mental 
334.2 	Health and Developmental Disabilities.
334.3 		Subd. 3.External program review committee. Rules adopted according to this 
334.4 	section shall establish requirements for an external program review committee appointed 
334.5 	by the commissioner to monitor implementation of the rules and make recommendations 
334.6 	to the commissioner about any needed policy changes after adoption of the rules.
334.7 		Subd. 4.Interim review panel. (a) The commissioner shall establish an interim 
334.8 	review panel by August 15, 2014, for the purpose of reviewing requests for emergency 
334.9 	use of procedures that have been part of an approved positive support transition plan 
334.10 	when necessary to protect a person from imminent risk of serious injury as defined in 
334.11 	section 245.91, subdivision 6, due to self-injurious behavior. The panel must make 
334.12 	recommendations to the commissioner to approve or deny these requests based on criteria 
334.13 	to be established by the interim review panel. The interim review panel shall operate until 
334.14 	the external program review committee is established as required under subdivision 3.
334.15 	(b) Members of the interim review panel shall be selected based on their expertise 
334.16 	and knowledge related to the use of positive support strategies as alternatives to the use 
334.17 	of restrictive interventions. The commissioner shall seek input and recommendations in 
334.18 	establishing the interim review panel. Members of the interim review panel shall include 
334.19 	the following representatives:
334.20 	(1) an expert in positive supports;
334.21 	(2) a mental health professional, as defined in section 245.462;
334.22 	(3) a licensed health professional as defined in section 245D.02, subdivision 14; and
334.23 	(4) a representative of the Department of Health.

334.24 	Sec. 4. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is 
334.25 	amended to read:
334.26 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an initial 
334.27 	license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, 
334.28 	or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under 
334.29 	this chapter for a physical location that will not be the primary residence of the license 
334.30 	holder for the entire period of licensure. If a license is issued during this moratorium, and 
334.31 	the license holder changes the license holder's primary residence away from the physical 
334.32 	location of the foster care license, the commissioner shall revoke the license according 
334.33 	to section 245A.07. The commissioner shall not issue an initial license for a community 
334.34 	residential setting licensed under chapter 245D. Exceptions to the moratorium include:
334.35 	(1) foster care settings that are required to be registered under chapter 144D;
335.1 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 
335.2 	community residential setting licenses replacing adult foster care licenses in existence on 
335.3 	December 31, 2013, and determined to be needed by the commissioner under paragraph (b);
335.4 	(3) new foster care licenses or community residential setting licenses determined to 
335.5 	be needed by the commissioner under paragraph (b) for the closure of a nursing facility, 
335.6 	ICF/DD, or regional treatment center; restructuring of state-operated services that limits 
335.7 	the capacity of state-operated facilities; or allowing movement to the community for 
335.8 	people who no longer require the level of care provided in state-operated facilities as 
335.9 	provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;
335.10 	(4) new foster care licenses or community residential setting licenses determined 
335.11 	to be needed by the commissioner under paragraph (b) for persons requiring hospital 
335.12 	level care; or
335.13 	(5) new foster care licenses or community residential setting licenses determined to 
335.14 	be needed by the commissioner for the transition of people from personal care assistance 
335.15 	to the home and community-based services.
335.16 	(b) The commissioner shall determine the need for newly licensed foster care 
335.17 	homes or community residential settings as defined under this subdivision. As part of the 
335.18 	determination, the commissioner shall consider the availability of foster care capacity in 
335.19 	the area in which the licensee seeks to operate, and the recommendation of the local 
335.20 	county board. The determination by the commissioner must be final. A determination of 
335.21 	need is not required for a change in ownership at the same address.
335.22 	(c) When an adult resident served by the program moves out of a foster home 
335.23 	that is not the primary residence of the license holder according to section 256B.49, 
335.24 	subdivision 15, paragraph (f), or the adult community residential setting, the county 
335.25 	shall immediately inform the Department of Human Services Licensing Division. The 
335.26 	department shall decrease the statewide licensed capacity for adult foster care settings 
335.27 	where the physical location is not the primary residence of the license holder, or for adult 
335.28 	community residential settings, if the voluntary changes described in paragraph (e) are 
335.29 	not sufficient to meet the savings required by reductions in licensed bed capacity under 
335.30 	Laws 2011, First Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), 
335.31 	and maintain statewide long-term care residential services capacity within budgetary 
335.32 	limits. Implementation of the statewide licensed capacity reduction shall begin on July 
335.33 	1, 2013. The commissioner shall delicense up to 128 beds by June 30, 2014, using the 
335.34 	needs determination process. Prior to any involuntary reduction of licensed capacity, the 
335.35 	commissioner shall consult with lead agencies and license holders to determine which 
335.36 	adult foster care settings where the physical location is not the primary residence of the 
336.1 	license holder, or community residential settings, are licensed for up to five beds but have 
336.2 	operated at less than full capacity for 12 or more months as of March 1, 2014. The settings 
336.3 	that meet these criteria shall be the first to be considered for any involuntary decrease 
336.4 	in statewide licensed capacity, up to a maximum of 35 beds. If more than 35 beds are 
336.5 	identified that meet these criteria, the commissioner shall prioritize the selection of those 
336.6 	beds to be closed based on the length of time the beds have been vacant. The longer a bed 
336.7 	has been vacant, the higher priority it must be given for closure. Under this paragraph, 
336.8 	the commissioner has the authority to reduce unused licensed capacity of a current foster 
336.9 	care program, or the community residential settings, to accomplish the consolidation or 
336.10 	closure of settings. Under this paragraph, the commissioner has the authority to manage 
336.11 	statewide capacity, including adjusting the capacity available to each county and adjusting 
336.12 	statewide available capacity, to meet the statewide needs identified through the process in 
336.13 	paragraph (e). A decreased licensed capacity according to this paragraph is not subject to 
336.14 	appeal under this chapter.
336.15 	(d) Residential settings that would otherwise be subject to the decreased license 
336.16 	capacity established in paragraph (c) shall be exempt under the following circumstances:
336.17 	(1) until August 1, 2013, the license holder's beds occupied by residents whose 
336.18 	primary diagnosis is mental illness and the license holder is:
336.19 	(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental 
336.20 	health services (ARMHS) as defined in section 256B.0623;
336.21 	(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to 
336.22 	9520.0870;
336.23 	(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to 
336.24 	9520.0870; or
336.25 	(iv) a provider of intensive residential treatment services (IRTS) licensed under 
336.26 	Minnesota Rules, parts 9520.0500 to 9520.0670; or
336.27 	(2) the license holder's beds occupied by residents whose primary diagnosis is 
336.28 	mental illness and the license holder is certified under the requirements in subdivision 6a 
336.29 	or section 245D.33.
336.30 	(e) A resource need determination process, managed at the state level, using the 
336.31 	available reports required by section 144A.351, and other data and information shall 
336.32 	be used to determine where the reduced capacity required under paragraph (c) will be 
336.33 	implemented. The commissioner shall consult with the stakeholders described in section 
336.34 	144A.351, and employ a variety of methods to improve the state's capacity to meet 
336.35 	long-term care service needs within budgetary limits, including seeking proposals from 
336.36 	service providers or lead agencies to change service type, capacity, or location to improve 
337.1 	services, increase the independence of residents, and better meet needs identified by the 
337.2 	long-term care services reports and statewide data and information. By February 1, 2013, 
337.3 	and August 1, 2014, and each following year, the commissioner shall provide information 
337.4 	and data on the overall capacity of licensed long-term care services, actions taken under 
337.5 	this subdivision to manage statewide long-term care services and supports resources, and 
337.6 	any recommendations for change to the legislative committees with jurisdiction over 
337.7 	health and human services budget.
337.8 	(f) At the time of application and reapplication for licensure, the applicant and the 
337.9 	license holder that are subject to the moratorium or an exclusion established in paragraph 
337.10 	(a) are required to inform the commissioner whether the physical location where the foster 
337.11 	care will be provided is or will be the primary residence of the license holder for the entire 
337.12 	period of licensure. If the primary residence of the applicant or license holder changes, the 
337.13 	applicant or license holder must notify the commissioner immediately. The commissioner 
337.14 	shall print on the foster care license certificate whether or not the physical location is the 
337.15 	primary residence of the license holder.
337.16 	(g) License holders of foster care homes identified under paragraph (f) that are not 
337.17 	the primary residence of the license holder and that also provide services in the foster care 
337.18 	home that are covered by a federally approved home and community-based services 
337.19 	waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the 
337.20 	human services licensing division that the license holder provides or intends to provide 
337.21 	these waiver-funded services.

337.22 	Sec. 5. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is 
337.23 	amended to read:
337.24 		Subd. 3.Implementation. (a) The commissioner shall implement the 
337.25 	responsibilities of this chapter according to the timelines in paragraphs (b) and (c) 
337.26 	only within the limits of available appropriations or other administrative cost recovery 
337.27 	methodology.
337.28 	(b) The licensure of home and community-based services according to this section 
337.29 	shall be implemented January 1, 2014. License applications shall be received and 
337.30 	processed on a phased-in schedule as determined by the commissioner beginning July 
337.31 	1, 2013. Licenses will be issued thereafter upon the commissioner's determination that 
337.32 	the application is complete according to section 245A.04.
337.33 	(c) Within the limits of available appropriations or other administrative cost recovery 
337.34 	methodology, implementation of compliance monitoring must be phased in after January 
337.35 	1, 2014.
338.1 	(1) Applicants who do not currently hold a license issued under chapter 245B must 
338.2 	receive an initial compliance monitoring visit after 12 months of the effective date of the 
338.3 	initial license for the purpose of providing technical assistance on how to achieve and 
338.4 	maintain compliance with the applicable law or rules governing the provision of home and 
338.5 	community-based services under chapter 245D. If during the review the commissioner 
338.6 	finds that the license holder has failed to achieve compliance with an applicable law or 
338.7 	rule and this failure does not imminently endanger the health, safety, or rights of the 
338.8 	persons served by the program, the commissioner may issue a licensing review report with 
338.9 	recommendations for achieving and maintaining compliance.
338.10 	(2) Applicants who do currently hold a license issued under this chapter must receive 
338.11 	a compliance monitoring visit after 24 months of the effective date of the initial license.
338.12 	(d) Nothing in this subdivision shall be construed to limit the commissioner's 
338.13 	authority to suspend or revoke a license or issue a fine at any time under section 245A.07, 
338.14 	or issue correction orders and make a license conditional for failure to comply with 
338.15 	applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity 
338.16 	of the violation of law or rule and the effect of the violation on the health, safety, or 
338.17 	rights of persons served by the program.
338.18 	(e) License holders governed under chapter 245D must ensure compliance with the 
338.19 	following requirements within the stated timelines:
338.20 	(1) service initiation and service planning requirements must be met at the next 
338.21 	annual meeting of the person's support team or by January 1, 2015, whichever is later, 
338.22 	for the following:
338.23 	(i) provision of a written notice that identifies the service recipient rights and an 
338.24 	explanation of those rights as required under section 245D.04, subdivision 1;
338.25 	(ii) service planning for basic support services as required under section 245D.07, 
338.26 	subdivision 2; and
338.27 	(iii) service planning for intensive support services under section 245D.071, 
338.28 	subdivisions 3 and 4;
338.29 	(2) staff orientation to program requirements as required under section 245D.09, 
338.30 	subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015. 
338.31 	The license holder may otherwise provide documentation verifying these requirements 
338.32 	were met before January 1, 2014;
338.33 	(3) development of policy and procedures as required under section 245D.11, must 
338.34 	be completed no later than August 31, 2014;
338.35 	(4) written or electronic notice and copies of policies and procedures must be 
338.36 	provided to all persons or their legal representatives and case managers as required under 
339.1 	section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 
339.2 	30 days of development of the required policies and procedures, whichever is earlier; and
339.3 	(5) all employees must be informed of the revisions and training must be provided on 
339.4 	implementation of the revised policies and procedures as required under section 245D.10, 
339.5 	subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of 
339.6 	the required policies and procedures, whichever is earlier.

339.7 	Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is 
339.8 	amended to read:
339.9 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
339.10 	private agencies that have been designated or licensed by the commissioner to perform 
339.11 	licensing functions and activities under section 245A.04 and background studies for family 
339.12 	child care under chapter 245C; to recommend denial of applicants under section 245A.05; 
339.13 	to issue correction orders, to issue variances, and recommend a conditional license under 
339.14 	section 245A.06, or to recommend suspending or revoking a license or issuing a fine under 
339.15 	section 245A.07, shall comply with rules and directives of the commissioner governing 
339.16 	those functions and with this section. The following variances are excluded from the 
339.17 	delegation of variance authority and may be issued only by the commissioner:
339.18 	(1) dual licensure of family child care and child foster care, dual licensure of child 
339.19 	and adult foster care, and adult foster care and family child care;
339.20 	(2) adult foster care maximum capacity;
339.21 	(3) adult foster care minimum age requirement;
339.22 	(4) child foster care maximum age requirement;
339.23 	(5) variances regarding disqualified individuals except that county agencies may 
339.24 	issue variances under section 245C.30 regarding disqualified individuals when the county 
339.25 	is responsible for conducting a consolidated reconsideration according to sections 245C.25 
339.26 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
339.27 	and a disqualification based on serious or recurring maltreatment;
339.28 	(6) the required presence of a caregiver in the adult foster care residence during 
339.29 	normal sleeping hours; and
339.30 	(7) variances for community residential setting licenses under chapter 245D.
339.31 	Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency 
339.32 	must not grant a license holder a variance to exceed the maximum allowable family child 
339.33 	care license capacity of 14 children.
339.34 	(b) County agencies must report information about disqualification reconsiderations 
339.35 	under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances 
340.1 	granted under paragraph (a), clause (5), to the commissioner at least monthly in a format 
340.2 	prescribed by the commissioner.
340.3 	(c) For family day care programs, the commissioner may authorize licensing reviews 
340.4 	every two years after a licensee has had at least one annual review.
340.5 	(d) For family adult day services programs, the commissioner may authorize 
340.6 	licensing reviews every two years after a licensee has had at least one annual review.
340.7 	(e) A license issued under this section may be issued for up to two years.
340.8 	(f) During implementation of chapter 245D, the commissioner shall consider:
340.9 	(1) the role of counties in quality assurance;
340.10 	(2) the duties of county licensing staff; and
340.11 	(3) the possible use of joint powers agreements, according to section 471.59, with 
340.12 	counties through which some licensing duties under chapter 245D may be delegated by 
340.13 	the commissioner to the counties.
340.14 	Any consideration related to this paragraph must meet all of the requirements of the 
340.15 	corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
340.16 	(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
340.17 	successor provisions; and section 245D.061 or successor provisions, for family child 
340.18 	foster care programs providing out-of-home respite, as identified in section 245D.03, 
340.19 	subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority 
340.20 	to county and private agencies.

340.21 	Sec. 7. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is 
340.22 	amended to read:
340.23 		Subd. 3.Case manager. "Case manager" means the individual designated 
340.24 	to provide waiver case management services, care coordination, or long-term care 
340.25 	consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49, 
340.26 	or successor provisions. For purposes of this chapter, "case manager" includes case 
340.27 	management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

340.28 	Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is 
340.29 	amended to read:
340.30 		Subd. 4b.Coordinated service and support plan. "Coordinated service and 
340.31 	support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915, 
340.32 	subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor 
340.33 	provisions. For purposes of this chapter, "coordinated service and support plan" includes 
341.1 	the individual program plan or individual treatment plan as defined in Minnesota Rules, 
341.2 	part 9520.0510, subpart 12.

341.3 	Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, is 
341.4 	amended to read:
341.5 		Subd. 8b.Expanded support team. "Expanded support team" means the members 
341.6 	of the support team defined in subdivision 46 34 and a licensed health or mental health 
341.7 	professional or other licensed, certified, or qualified professionals or consultants working 
341.8 	with the person and included in the team at the request of the person or the person's legal 
341.9 	representative.

341.10 	Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11, 
341.11 	is amended to read:
341.12 		Subd. 11.Incident. "Incident" means an occurrence which involves a person and 
341.13 	requires the program to make a response that is not a part of the program's ordinary 
341.14 	provision of services to that person, and includes:
341.15 	(1) serious injury of a person as determined by section 245.91, subdivision 6;
341.16 	(2) a person's death;
341.17 	(3) any medical emergency, unexpected serious illness, or significant unexpected 
341.18 	change in an illness or medical condition of a person that requires the program to call 
341.19 	911, physician treatment, or hospitalization;
341.20 	(4) any mental health crisis that requires the program to call 911 or, a mental 
341.21 	health crisis intervention team, or a similar mental health response team or service when 
341.22 	available and appropriate;
341.23 	(5) an act or situation involving a person that requires the program to call 911, 
341.24 	law enforcement, or the fire department;
341.25 	(6) a person's unauthorized or unexplained absence from a program;
341.26 	(7) conduct by a person receiving services against another person receiving services 
341.27 	that:
341.28 	(i) is so severe, pervasive, or objectively offensive that it substantially interferes with 
341.29 	a person's opportunities to participate in or receive service or support;
341.30 	(ii) places the person in actual and reasonable fear of harm;
341.31 	(iii) places the person in actual and reasonable fear of damage to property of the 
341.32 	person; or
341.33 	(iv) substantially disrupts the orderly operation of the program;
342.1 	(8) any sexual activity between persons receiving services involving force or 
342.2 	coercion as defined under section 609.341, subdivisions 3 and 14;
342.3 	(9) any emergency use of manual restraint as identified in section 245D.061 or 
342.4 	successor provisions; or
342.5 	(10) a report of alleged or suspected child or vulnerable adult maltreatment under 
342.6 	section 626.556 or 626.557.

342.7 	Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b, 
342.8 	is amended to read:
342.9 		Subd. 15b.Mechanical restraint. (a) Except for devices worn by the person that 
342.10 	trigger electronic alarms to warn staff that a person is leaving a room or area, which 
342.11 	do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids 
342.12 	or equipment or orthotic devices ordered by a health care professional used to treat or 
342.13 	manage a medical condition, "Mechanical restraint" means the use of devices, materials, 
342.14 	or equipment attached or adjacent to the person's body, or the use of practices that are 
342.15 	intended to restrict freedom of movement or normal access to one's body or body parts, 
342.16 	or limits a person's voluntary movement or holds a person immobile as an intervention 
342.17 	precipitated by a person's behavior. The term applies to the use of mechanical restraint 
342.18 	used to prevent injury with persons who engage in self-injurious behaviors, such as 
342.19 	head-banging, gouging, or other actions resulting in tissue damage that have caused or 
342.20 	could cause medical problems resulting from the self-injury.
342.21 	(b) Mechanical restraint does not include the following:
342.22 	(1) devices worn by the person that trigger electronic alarms to warn staff that a 
342.23 	person is leaving a room or area, which do not, in and of themselves, restrict freedom of 
342.24 	movement; or
342.25 	(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care 
342.26 	professional used to treat or manage a medical condition.

342.27 	Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29, 
342.28 	is amended to read:
342.29 		Subd. 29.Seclusion. "Seclusion" means the placement of a person alone in: (1) 
342.30 	removing a person involuntarily to a room from which exit is prohibited by a staff person 
342.31 	or a mechanism such as a lock, a device, or an object positioned to hold the door closed 
342.32 	or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily 
342.33 	removing or separating a person from an area, activity, situation, or social contact with 
342.34 	others and blocking or preventing the person's return.

343.1 	Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34, 
343.2 	is amended to read:
343.3 		Subd. 34.Support team. "Support team" means the service planning team 
343.4 	identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in 
343.5 	Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in 
343.6 	Minnesota Rules, part 9520.0902, subpart 6.

343.7 	Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a, 
343.8 	is amended to read:
343.9 		Subd. 34a.Time out. "Time out" means removing a person involuntarily from an 
343.10 	ongoing activity to a room, either locked or unlocked, or otherwise separating a person 
343.11 	from others in a way that prevents social contact and prevents the person from leaving the 
343.12 	situation if the person chooses the involuntary removal of a person for a period of time to 
343.13 	a designated area from which the person is not prevented from leaving. For the purpose of 
343.14 	this chapter, "time out" does not mean voluntary removal or self-removal for the purpose 
343.15 	of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15 
343.16 	minutes. "Time out" does not include a person voluntarily moving from an ongoing activity 
343.17 	to an unlocked room or otherwise separating from a situation or social contact with others 
343.18 	if the person chooses. For the purposes of this definition, "voluntarily" means without 
343.19 	being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from 
343.20 	an activity for the purpose of providing the person an opportunity to regain self-control. 

343.21 	Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding 
343.22 	a subdivision to read:
343.23 		Subd. 35b.Unlicensed staff. "Unlicensed staff" means individuals not otherwise 
343.24 	licensed or certified by a governmental health board or agency.

343.25 	Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is 
343.26 	amended to read:
343.27 		Subdivision 1.Applicability.  (a) The commissioner shall regulate the provision of 
343.28 	home and community-based services to persons with disabilities and persons age 65 and 
343.29 	older pursuant to this chapter. The licensing standards in this chapter govern the provision 
343.30 	of basic support services and intensive support services.
343.31 	(b) Basic support services provide the level of assistance, supervision, and care that 
343.32 	is necessary to ensure the health and safety of the person and do not include services that 
344.1 	are specifically directed toward the training, treatment, habilitation, or rehabilitation of 
344.2 	the person. Basic support services include:
344.3 	(1) in-home and out-of-home respite care services as defined in section 245A.02, 
344.4 	subdivision 15, and under the brain injury, community alternative care, community 
344.5 	alternatives for disabled individuals, developmental disability, and elderly waiver plans, 
344.6 	excluding out-of-home respite care provided to children in a family child foster care home 
344.7 	licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care 
344.8 	license holder complies with the requirements under section 245D.06, subdivisions 5, 6, 
344.9 	7, and 8, or successor provisions; and section 245D.061 or successor provisions, which 
344.10 	must be stipulated in the statement of intended use required under Minnesota Rules, 
344.11 	part 2960.3000, subpart 4;
344.12 	(2) adult companion services as defined under the brain injury, community 
344.13 	alternatives for disabled individuals, and elderly waiver plans, excluding adult companion 
344.14 	services provided under the Corporation for National and Community Services Senior 
344.15 	Companion Program established under the Domestic Volunteer Service Act of 1973, 
344.16 	Public Law 98-288;
344.17 	(3) personal support as defined under the developmental disability waiver plan;
344.18 	(4) 24-hour emergency assistance, personal emergency response as defined under the 
344.19 	community alternatives for disabled individuals and developmental disability waiver plans;
344.20 	(5) night supervision services as defined under the brain injury waiver plan; and
344.21 	(6) homemaker services as defined under the community alternatives for disabled 
344.22 	individuals, brain injury, community alternative care, developmental disability, and elderly 
344.23 	waiver plans, excluding providers licensed by the Department of Health under chapter 
344.24 	144A and those providers providing cleaning services only.
344.25 	(c) Intensive support services provide assistance, supervision, and care that is 
344.26 	necessary to ensure the health and safety of the person and services specifically directed 
344.27 	toward the training, habilitation, or rehabilitation of the person. Intensive support services 
344.28 	include:
344.29 	(1) intervention services, including:
344.30 	(i) behavioral support services as defined under the brain injury and community 
344.31 	alternatives for disabled individuals waiver plans;
344.32 	(ii) in-home or out-of-home crisis respite services as defined under the developmental 
344.33 	disability waiver plan; and
344.34 	(iii) specialist services as defined under the current developmental disability waiver 
344.35 	plan;
344.36 	(2) in-home support services, including:
345.1 	(i) in-home family support and supported living services as defined under the 
345.2 	developmental disability waiver plan;
345.3 	(ii) independent living services training as defined under the brain injury and 
345.4 	community alternatives for disabled individuals waiver plans; and
345.5 	(iii) semi-independent living services;
345.6 	(3) residential supports and services, including:
345.7 	(i) supported living services as defined under the developmental disability waiver 
345.8 	plan provided in a family or corporate child foster care residence, a family adult foster 
345.9 	care residence, a community residential setting, or a supervised living facility;
345.10 	(ii) foster care services as defined in the brain injury, community alternative care, 
345.11 	and community alternatives for disabled individuals waiver plans provided in a family or 
345.12 	corporate child foster care residence, a family adult foster care residence, or a community 
345.13 	residential setting; and
345.14 	(iii) residential services provided to more than four persons with developmental 
345.15 	disabilities in a supervised living facility that is certified by the Department of Health as 
345.16 	an ICF/DD, including ICFs/DD;
345.17 	(4) day services, including:
345.18 	(i) structured day services as defined under the brain injury waiver plan;
345.19 	(ii) day training and habilitation services under sections 252.40 to 252.46, and as 
345.20 	defined under the developmental disability waiver plan; and
345.21 	(iii) prevocational services as defined under the brain injury and community 
345.22 	alternatives for disabled individuals waiver plans; and
345.23 	(5) supported employment as defined under the brain injury, developmental 
345.24 	disability, and community alternatives for disabled individuals waiver plans.

345.25 	Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding 
345.26 	a subdivision to read:
345.27 		Subd. 1a.Effect. The home and community-based services standards establish 
345.28 	health, safety, welfare, and rights protections for persons receiving services governed by 
345.29 	this chapter. The standards recognize the diversity of persons receiving these services and 
345.30 	require that these services are provided in a manner that meets each person's individual 
345.31 	needs and ensures continuity in service planning, care, and coordination between the 
345.32 	license holder and members of each person's support team or expanded support team.

345.33 	Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is 
345.34 	amended to read:
346.1 		Subd. 2.Relationship to other standards governing home and community-based 
346.2 	services. (a) A license holder governed by this chapter is also subject to the licensure 
346.3 	requirements under chapter 245A.
346.4 	(b) A corporate or family child foster care site controlled by a license holder and 
346.5 	providing services governed by this chapter is exempt from compliance with section 
346.6 	245D.04. This exemption applies to foster care homes where at least one resident is 
346.7 	receiving residential supports and services licensed according to this chapter. This chapter 
346.8 	does not apply to corporate or family child foster care homes that do not provide services 
346.9 	licensed under this chapter.
346.10 	(c) A family adult foster care site controlled by a license holder and providing 
346.11 	services governed by this chapter is exempt from compliance with Minnesota Rules, 
346.12 	parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These 
346.13 	exemptions apply to family adult foster care homes where at least one resident is receiving 
346.14 	residential supports and services licensed according to this chapter. This chapter does 
346.15 	not apply to family adult foster care homes that do not provide services licensed under 
346.16 	this chapter.
346.17 	(d) A license holder providing services licensed according to this chapter in a 
346.18 	supervised living facility is exempt from compliance with sectionssection 245D.04; 
346.19 	245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
346.20 	(e) A license holder providing residential services to persons in an ICF/DD is exempt 
346.21 	from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision 
346.22 	2, clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09, 
346.23 	subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
346.24 	(f) A license holder providing homemaker services licensed according to this chapter 
346.25 	and registered according to chapter 144A is exempt from compliance with section 245D.04.
346.26 	(g) Nothing in this chapter prohibits a license holder from concurrently serving 
346.27 	persons without disabilities or people who are or are not age 65 and older, provided this 
346.28 	chapter's standards are met as well as other relevant standards.
346.29 	(h) The documentation required under sections 245D.07 and 245D.071 must meet 
346.30 	the individual program plan requirements identified in section 256B.092 or successor 
346.31 	provisions.

346.32 	Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is 
346.33 	amended to read:
346.34 		Subd. 3.Variance. If the conditions in section 245A.04, subdivision 9, are met, 
346.35 	the commissioner may grant a variance to any of the requirements in this chapter, except 
347.1 	sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor 
347.2 	provisions; and 245D.061, subdivision 3, or provisions governing data practices and 
347.3 	information rights of persons.

347.4 	Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is 
347.5 	amended to read:
347.6 		Subd. 3.Protection-related rights. (a) A person's protection-related rights include 
347.7 	the right to:
347.8 	(1) have personal, financial, service, health, and medical information kept private, 
347.9 	and be advised of disclosure of this information by the license holder;
347.10 	(2) access records and recorded information about the person in accordance with 
347.11 	applicable state and federal law, regulation, or rule;
347.12 	(3) be free from maltreatment;
347.13 	(4) be free from restraint, time out, or seclusion, restrictive intervention, or other 
347.14 	prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions,
347.15 	 except for: (i) emergency use of manual restraint to protect the person from imminent 
347.16 	danger to self or others according to the requirements in section 245D.06; 245D.061 or 
347.17 	successor provisions; or (ii) the use of safety interventions as part of a positive support 
347.18 	transition plan under section 245D.06, subdivision 8, or successor provisions;
347.19 	(5) receive services in a clean and safe environment when the license holder is the 
347.20 	owner, lessor, or tenant of the service site;
347.21 	(6) be treated with courtesy and respect and receive respectful treatment of the 
347.22 	person's property;
347.23 	(7) reasonable observance of cultural and ethnic practice and religion;
347.24 	(8) be free from bias and harassment regarding race, gender, age, disability, 
347.25 	spirituality, and sexual orientation;
347.26 	(9) be informed of and use the license holder's grievance policy and procedures, 
347.27 	including knowing how to contact persons responsible for addressing problems and to 
347.28 	appeal under section 256.045;
347.29 	(10) know the name, telephone number, and the Web site, e-mail, and street 
347.30 	addresses of protection and advocacy services, including the appropriate state-appointed 
347.31 	ombudsman, and a brief description of how to file a complaint with these offices;
347.32 	(11) assert these rights personally, or have them asserted by the person's family, 
347.33 	authorized representative, or legal representative, without retaliation;
347.34 	(12) give or withhold written informed consent to participate in any research or 
347.35 	experimental treatment;
348.1 	(13) associate with other persons of the person's choice;
348.2 	(14) personal privacy; and
348.3 	(15) engage in chosen activities.
348.4 	(b) For a person residing in a residential site licensed according to chapter 245A, 
348.5 	or where the license holder is the owner, lessor, or tenant of the residential service site, 
348.6 	protection-related rights also include the right to:
348.7 	(1) have daily, private access to and use of a non-coin-operated telephone for local 
348.8 	calls and long-distance calls made collect or paid for by the person;
348.9 	(2) receive and send, without interference, uncensored, unopened mail or electronic 
348.10 	correspondence or communication;
348.11 	(3) have use of and free access to common areas in the residence; and
348.12 	(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious 
348.13 	advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including 
348.14 	privacy in the person's bedroom.
348.15 	(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a), 
348.16 	clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure 
348.17 	the health, safety, and well-being of the person. Any restriction of those rights must be 
348.18 	documented in the person's coordinated service and support plan or coordinated service 
348.19 	and support plan addendum. The restriction must be implemented in the least restrictive 
348.20 	alternative manner necessary to protect the person and provide support to reduce or 
348.21 	eliminate the need for the restriction in the most integrated setting and inclusive manner. 
348.22 	The documentation must include the following information:
348.23 	(1) the justification for the restriction based on an assessment of the person's 
348.24 	vulnerability related to exercising the right without restriction;
348.25 	(2) the objective measures set as conditions for ending the restriction;
348.26 	(3) a schedule for reviewing the need for the restriction based on the conditions 
348.27 	for ending the restriction to occur semiannually from the date of initial approval, at a 
348.28 	minimum, or more frequently if requested by the person, the person's legal representative, 
348.29 	if any, and case manager; and
348.30 	(4) signed and dated approval for the restriction from the person, or the person's 
348.31 	legal representative, if any. A restriction may be implemented only when the required 
348.32 	approval has been obtained. Approval may be withdrawn at any time. If approval is 
348.33 	withdrawn, the right must be immediately and fully restored.

348.34 	Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is 
348.35 	amended to read:
349.1 		Subdivision 1.Health needs. (a) The license holder is responsible for meeting 
349.2 	health service needs assigned in the coordinated service and support plan or the 
349.3 	coordinated service and support plan addendum, consistent with the person's health needs. 
349.4 	The license holder is responsible for promptly notifying the person's legal representative, 
349.5 	if any, and the case manager of changes in a person's physical and mental health needs 
349.6 	affecting health service needs assigned to the license holder in the coordinated service and 
349.7 	support plan or the coordinated service and support plan addendum, when discovered by 
349.8 	the license holder, unless the license holder has reason to know the change has already 
349.9 	been reported. The license holder must document when the notice is provided.
349.10 	(b) If responsibility for meeting the person's health service needs has been assigned 
349.11 	to the license holder in the coordinated service and support plan or the coordinated service 
349.12 	and support plan addendum, the license holder must maintain documentation on how the 
349.13 	person's health needs will be met, including a description of the procedures the license 
349.14 	holder will follow in order to:
349.15 	(1) provide medication setup, assistance, or medication administration according 
349.16 	to this chapter. Unlicensed staff responsible for medication setup or medication 
349.17 	administration under this section must complete training according to section 245D.09, 
349.18 	subdivision 4a, paragraph (d);
349.19 	(2) monitor health conditions according to written instructions from a licensed 
349.20 	health professional;
349.21 	(3) assist with or coordinate medical, dental, and other health service appointments; or
349.22 	(4) use medical equipment, devices, or adaptive aides or technology safely and 
349.23 	correctly according to written instructions from a licensed health professional.

349.24 	Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a, 
349.25 	is amended to read:
349.26 		Subd. 1a.Medication setup. (a) For the purposes of this subdivision, "medication 
349.27 	setup" means the arranging of medications according to instructions from the pharmacy, 
349.28 	the prescriber, or a licensed nurse, for later administration when the license holder 
349.29 	is assigned responsibility for medication assistance or medication administration in 
349.30 	the coordinated service and support plan or the coordinated service and support plan 
349.31 	addendum. A prescription label or the prescriber's written or electronically recorded order 
349.32 	for the prescription is sufficient to constitute written instructions from the prescriber.
349.33 	(b) If responsibility for medication setup is assigned to the license holder in 
349.34 	the coordinated service and support plan or the coordinated service and support plan 
349.35 	addendum, or if the license holder provides it as part of medication assistance or 
350.1 	medication administration, the license holder must document in the person's medication 
350.2 	administration record: dates of setup, name of medication, quantity of dose, times to be 
350.3 	administered, and route of administration at time of setup; and, when the person will be 
350.4 	away from home, to whom the medications were given.

350.5 	Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b, 
350.6 	is amended to read:
350.7 		Subd. 1b.Medication assistance. (a) For purposes of this subdivision, "medication 
350.8 	assistance" means any of the following:
350.9 	(1) bringing to the person and opening a container of previously set up medications, 
350.10 	emptying the container into the person's hand, or opening and giving the medications in 
350.11 	the original container to the person under the direction of the person;
350.12 	(2) bringing to the person liquids or food to accompany the medication; or
350.13 	(3) providing reminders to take regularly scheduled medication or perform regularly 
350.14 	scheduled treatments and exercises.
350.15 	(b) If responsibility for medication assistance is assigned to the license holder 
350.16 	in the coordinated service and support plan or the coordinated service and support 
350.17 	plan addendum, the license holder must ensure that the requirements of subdivision 2, 
350.18 	paragraph (b), have been met when staff provides medication assistance to enableis 
350.19 	provided in a manner that enables a person to self-administer medication or treatment 
350.20 	when the person is capable of directing the person's own care, or when the person's legal 
350.21 	representative is present and able to direct care for the person. For the purposes of this 
350.22 	subdivision, "medication assistance" means any of the following:
350.23 	(1) bringing to the person and opening a container of previously set up medications, 
350.24 	emptying the container into the person's hand, or opening and giving the medications in 
350.25 	the original container to the person;
350.26 	(2) bringing to the person liquids or food to accompany the medication; or
350.27 	(3) providing reminders to take regularly scheduled medication or perform regularly 
350.28 	scheduled treatments and exercises.

350.29 	Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is 
350.30 	amended to read:
350.31 		Subd. 2.Medication administration. (a) If responsibility for medication 
350.32 	administration is assigned to the license holder in the coordinated service and support 
350.33 	plan or the coordinated service and support plan addendum, the license holder must 
350.34 	implement the following medication administration procedures to ensure a person takes 
351.1 	medications and treatments as prescribed For purposes of this subdivision, "medication 
351.2 	administration" means:
351.3 	(1) checking the person's medication record;
351.4 	(2) preparing the medication as necessary;
351.5 	(3) administering the medication or treatment to the person;
351.6 	(4) documenting the administration of the medication or treatment or the reason for 
351.7 	not administering the medication or treatment; and
351.8 	(5) reporting to the prescriber or a nurse any concerns about the medication or 
351.9 	treatment, including side effects, effectiveness, or a pattern of the person refusing to 
351.10 	take the medication or treatment as prescribed. Adverse reactions must be immediately 
351.11 	reported to the prescriber or a nurse.
351.12 	(b)(1) If responsibility for medication administration is assigned to the license holder 
351.13 	in the coordinated service and support plan or the coordinated service and support plan 
351.14 	addendum, the license holder must implement medication administration procedures 
351.15 	to ensure a person takes medications and treatments as prescribed. The license holder 
351.16 	must ensure that the requirements in clauses (2) to (4) and (3) have been met before 
351.17 	administering medication or treatment.
351.18 	(2) The license holder must obtain written authorization from the person or the 
351.19 	person's legal representative to administer medication or treatment and must obtain 
351.20 	reauthorization annually as needed. This authorization shall remain in effect unless it is 
351.21 	withdrawn in writing and may be withdrawn at any time. If the person or the person's 
351.22 	legal representative refuses to authorize the license holder to administer medication, the 
351.23 	medication must not be administered. The refusal to authorize medication administration 
351.24 	must be reported to the prescriber as expediently as possible.
351.25 	(3) The staff person responsible for administering the medication or treatment must 
351.26 	complete medication administration training according to section 245D.09, subdivision
351.27 	 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
351.28 	(4) (3) For a license holder providing intensive support services, the medication or 
351.29 	treatment must be administered according to the license holder's medication administration 
351.30 	policy and procedures as required under section 245D.11, subdivision 2, clause (3).
351.31 	(c) The license holder must ensure the following information is documented in the 
351.32 	person's medication administration record:
351.33 	(1) the information on the current prescription label or the prescriber's current 
351.34 	written or electronically recorded order or prescription that includes the person's name, 
351.35 	description of the medication or treatment to be provided, and the frequency and other 
352.1 	information needed to safely and correctly administer the medication or treatment to 
352.2 	ensure effectiveness;
352.3 	(2) information on any risks or other side effects that are reasonable to expect, and 
352.4 	any contraindications to its use. This information must be readily available to all staff 
352.5 	administering the medication;
352.6 	(3) the possible consequences if the medication or treatment is not taken or 
352.7 	administered as directed;
352.8 	(4) instruction on when and to whom to report the following:
352.9 	(i) if a dose of medication is not administered or treatment is not performed as 
352.10 	prescribed, whether by error by the staff or the person or by refusal by the person; and
352.11 	(ii) the occurrence of possible adverse reactions to the medication or treatment;
352.12 	(5) notation of any occurrence of a dose of medication not being administered or 
352.13 	treatment not performed as prescribed, whether by error by the staff or the person or by 
352.14 	refusal by the person, or of adverse reactions, and when and to whom the report was 
352.15 	made; and
352.16 	(6) notation of when a medication or treatment is started, administered, changed, or 
352.17 	discontinued.

352.18 	Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is 
352.19 	amended to read:
352.20 		Subd. 4.Reviewing and reporting medication and treatment issues. (a) When 
352.21 	assigned responsibility for medication administration, the license holder must ensure 
352.22 	that the information maintained in the medication administration record is current and 
352.23 	is regularly reviewed to identify medication administration errors. At a minimum, the 
352.24 	review must be conducted every three months, or more frequently as directed in the 
352.25 	coordinated service and support plan or coordinated service and support plan addendum 
352.26 	or as requested by the person or the person's legal representative. Based on the review, 
352.27 	the license holder must develop and implement a plan to correct patterns of medication 
352.28 	administration errors when identified.
352.29 	(b) If assigned responsibility for medication assistance or medication administration, 
352.30 	the license holder must report the following to the person's legal representative and case 
352.31 	manager as they occur or as otherwise directed in the coordinated service and support plan 
352.32 	or the coordinated service and support plan addendum:
352.33 	(1) any reports made to the person's physician or prescriber required under 
352.34 	subdivision 2, paragraph (c), clause (4);
353.1 	(2) a person's refusal or failure to take or receive medication or treatment as 
353.2 	prescribed; or
353.3 	(3) concerns about a person's self-administration of medication or treatment.

353.4 	Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is 
353.5 	amended to read:
353.6 		Subd. 5.Injectable medications. Injectable medications may be administered 
353.7 	according to a prescriber's order and written instructions when one of the following 
353.8 	conditions has been met:
353.9 	(1) a registered nurse or licensed practical nurse will administer the subcutaneous or 
353.10 	intramuscular injection;
353.11 	(2) a supervising registered nurse with a physician's order has delegated the 
353.12 	administration of subcutaneous injectable medication to an unlicensed staff member 
353.13 	and has provided the necessary training; or
353.14 	(3) there is an agreement signed by the license holder, the prescriber, and the 
353.15 	person or the person's legal representative specifying what subcutaneous injections may 
353.16 	be given, when, how, and that the prescriber must retain responsibility for the license 
353.17 	holder's giving the injections. A copy of the agreement must be placed in the person's 
353.18 	service recipient record.
353.19 	Only licensed health professionals are allowed to administer psychotropic 
353.20 	medications by injection.

353.21 	Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
353.22 	245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
353.23 		Subdivision 1.Conditions for psychotropic medication administration. (a) 
353.24 	When a person is prescribed a psychotropic medication and the license holder is assigned 
353.25 	responsibility for administration of the medication in the person's coordinated service 
353.26 	and support plan or the coordinated service and support plan addendum, the license 
353.27 	holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05, 
353.28 	subdivision 2, are met.
353.29 	(b) Use of the medication must be included in the person's coordinated service and 
353.30 	support plan or in the coordinated service and support plan addendum and based on a 
353.31 	prescriber's current written or electronically recorded prescription.
353.32 	(c) (b) The license holder must develop, implement, and maintain the following 
353.33 	documentation in the person's coordinated service and support plan addendum according 
353.34 	to the requirements in sections 245D.07 and 245D.071:
354.1 	(1) a description of the target symptoms that the psychotropic medication is to 
354.2 	alleviate; and
354.3 	(2) documentation methods the license holder will use to monitor and measure 
354.4 	changes in the target symptoms that are to be alleviated by the psychotropic medication if 
354.5 	required by the prescriber. The license holder must collect and report on medication and 
354.6 	symptom-related data as instructed by the prescriber. The license holder must provide 
354.7 	the monitoring data to the expanded support team for review every three months, or as 
354.8 	otherwise requested by the person or the person's legal representative.
354.9 	For the purposes of this section, "target symptom" refers to any perceptible 
354.10 	diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic 
354.11 	and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or 
354.12 	successive editions, that has been identified for alleviation.
354.13 		Subd. 2.Refusal to authorize psychotropic medication. If the person or the 
354.14 	person's legal representative refuses to authorize the administration of a psychotropic 
354.15 	medication as ordered by the prescriber, the license holder must follow the requirement in 
354.16 	section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication. 
354.17 	The refusal to authorize medication administration must be reported to the prescriber as 
354.18 	expediently as possible. After reporting the refusal to the prescriber, the license holder 
354.19 	must follow any directives or orders given by the prescriber. A court order must be 
354.20 	obtained to override the refusal.A refusal may not be overridden without a court order. 
354.21 	Refusal to authorize administration of a specific psychotropic medication is not grounds 
354.22 	for service termination and does not constitute an emergency. A decision to terminate 
354.23 	services must be reached in compliance with section 245D.10, subdivision 3.

354.24 	Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is 
354.25 	amended to read:
354.26 		Subdivision 1.Incident response and reporting.  (a) The license holder must 
354.27 	respond to incidents under section 245D.02, subdivision 11, that occur while providing 
354.28 	services to protect the health and safety of and minimize risk of harm to the person.
354.29 	(b) The license holder must maintain information about and report incidents to the 
354.30 	person's legal representative or designated emergency contact and case manager within 
354.31 	24 hours of an incident occurring while services are being provided, within 24 hours of 
354.32 	discovery or receipt of information that an incident occurred, unless the license holder 
354.33 	has reason to know that the incident has already been reported, or as otherwise directed 
354.34 	in a person's coordinated service and support plan or coordinated service and support 
354.35 	plan addendum. An incident of suspected or alleged maltreatment must be reported as 
355.1 	required under paragraph (d), and an incident of serious injury or death must be reported 
355.2 	as required under paragraph (e).
355.3 	(c) When the incident involves more than one person, the license holder must not 
355.4 	disclose personally identifiable information about any other person when making the report 
355.5 	to each person and case manager unless the license holder has the consent of the person.
355.6 	(d) Within 24 hours of reporting maltreatment as required under section 626.556 
355.7 	or 626.557, the license holder must inform the case manager of the report unless there is 
355.8 	reason to believe that the case manager is involved in the suspected maltreatment. The 
355.9 	license holder must disclose the nature of the activity or occurrence reported and the 
355.10 	agency that received the report.
355.11 	(e) The license holder must report the death or serious injury of the person as 
355.12 	required in paragraph (b) and to the Department of Human Services Licensing Division, 
355.13 	and the Office of Ombudsman for Mental Health and Developmental Disabilities as 
355.14 	required under section 245.94, subdivision 2a, within 24 hours of the death, or receipt of 
355.15 	information that the death occurred, unless the license holder has reason to know that the 
355.16 	death has already been reported.
355.17 	(f) When a death or serious injury occurs in a facility certified as an intermediate 
355.18 	care facility for persons with developmental disabilities, the death or serious injury must 
355.19 	be reported to the Department of Health, Office of Health Facility Complaints, and the 
355.20 	Office of Ombudsman for Mental Health and Developmental Disabilities, as required 
355.21 	under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to 
355.22 	know that the death has already been reported.
355.23 	(g) The license holder must conduct an internal review of incident reports of deaths 
355.24 	and serious injuries that occurred while services were being provided and that were not 
355.25 	reported by the program as alleged or suspected maltreatment, for identification of incident 
355.26 	patterns, and implementation of corrective action as necessary to reduce occurrences. 
355.27 	The review must include an evaluation of whether related policies and procedures were 
355.28 	followed, whether the policies and procedures were adequate, whether there is a need for 
355.29 	additional staff training, whether the reported event is similar to past events with the 
355.30 	persons or the services involved, and whether there is a need for corrective action by the 
355.31 	license holder to protect the health and safety of persons receiving services. Based on 
355.32 	the results of this review, the license holder must develop, document, and implement a 
355.33 	corrective action plan designed to correct current lapses and prevent future lapses in 
355.34 	performance by staff or the license holder, if any.
355.35 	(h) The license holder must verbally report the emergency use of manual restraint 
355.36 	of a person as required in paragraph (b) within 24 hours of the occurrence. The license 
356.1 	holder must ensure the written report and internal review of all incident reports of the 
356.2 	emergency use of manual restraints are completed according to the requirements in section 
356.3 	245D.061 or successor provisions.

356.4 	Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is 
356.5 	amended to read:
356.6 		Subd. 2.Environment and safety. The license holder must:
356.7 	(1) ensure the following when the license holder is the owner, lessor, or tenant 
356.8 	of the service site:
356.9 	(i) the service site is a safe and hazard-free environment;
356.10 	(ii) that toxic substances or dangerous items are inaccessible to persons served by 
356.11 	the program only to protect the safety of a person receiving services when a known safety 
356.12 	threat exists and not as a substitute for staff supervision or interactions with a person who 
356.13 	is receiving services. If toxic substances or dangerous items are made inaccessible, the 
356.14 	license holder must document an assessment of the physical plant, its environment, and its 
356.15 	population identifying the risk factors which require toxic substances or dangerous items 
356.16 	to be inaccessible and a statement of specific measures to be taken to minimize the safety 
356.17 	risk to persons receiving services and to restore accessibility to all persons receiving 
356.18 	services at the service site;
356.19 	(iii) doors are locked from the inside to prevent a person from exiting only when 
356.20 	necessary to protect the safety of a person receiving services and not as a substitute for 
356.21 	staff supervision or interactions with the person. If doors are locked from the inside, the 
356.22 	license holder must document an assessment of the physical plant, the environment and 
356.23 	the population served, identifying the risk factors which require the use of locked doors, 
356.24 	and a statement of specific measures to be taken to minimize the safety risk to persons 
356.25 	receiving services at the service site; and
356.26 	(iv) a staff person is available at the service site who is trained in basic first aid and, 
356.27 	when required in a person's coordinated service and support plan or coordinated service 
356.28 	and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are 
356.29 	present and staff are required to be at the site to provide direct support service. The CPR 
356.30 	training must include in-person instruction, hands-on practice, and an observed skills 
356.31 	assessment under the direct supervision of a CPR instructor;
356.32 	(2) maintain equipment, vehicles, supplies, and materials owned or leased by the 
356.33 	license holder in good condition when used to provide services;
357.1 	(3) follow procedures to ensure safe transportation, handling, and transfers of the 
357.2 	person and any equipment used by the person, when the license holder is responsible for 
357.3 	transportation of a person or a person's equipment;
357.4 	(4) be prepared for emergencies and follow emergency response procedures to 
357.5 	ensure the person's safety in an emergency; and
357.6 	(5) follow universal precautions and sanitary practices, including hand washing, for 
357.7 	infection prevention and control, and to prevent communicable diseases.

357.8 	Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is 
357.9 	amended to read:
357.10 		Subd. 4.Funds and property; legal representative restrictions. (a) Whenever the 
357.11 	license holder assists a person with the safekeeping of funds or other property according 
357.12 	to section 245A.04, subdivision 13, the license holder must obtain written authorization 
357.13 	to do so from the person or the person's legal representative and the case manager. 
357.14 	Authorization must be obtained within five working days of service initiation and renewed 
357.15 	annually thereafter. At the time initial authorization is obtained, the license holder must 
357.16 	survey, document, and implement the preferences of the person or the person's legal 
357.17 	representative and the case manager for frequency of receiving a statement that itemizes 
357.18 	receipts and disbursements of funds or other property. The license holder must document 
357.19 	changes to these preferences when they are requested.
357.20 	(b) A license holder or staff person may not accept powers-of-attorney from a person 
357.21 	receiving services from the license holder for any purpose. This does not apply to license 
357.22 	holders that are Minnesota counties or other units of government or to staff persons 
357.23 	employed by license holders who were acting as attorney-in-fact for specific individuals 
357.24 	prior to implementation of this chapter. The license holder must maintain documentation 
357.25 	of the power-of-attorney in the service recipient record.
357.26 	(c) A license holder or staff person is restricted from accepting an appointment 
357.27 	as a guardian as follows:
357.28 	(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency 
357.29 	that provides residence, custodial care, medical care, employment training, or other care 
357.30 	or services for which the individual or agency receives a fee may not be appointed as 
357.31 	guardian unless related to the respondent by blood, marriage, or adoption; and
357.32 	(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related 
357.33 	individual as defined under section 245A.02, subdivision 13, is excluded from licensure. 
357.34 	Services provided by a license holder to a person under the license holder's guardianship 
357.35 	are not licensed services.
358.1 	(c) (d) Upon the transfer or death of a person, any funds or other property of the 
358.2 	person must be surrendered to the person or the person's legal representative, or given to 
358.3 	the executor or administrator of the estate in exchange for an itemized receipt.

358.4 	Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is 
358.5 	amended to read:
358.6 		Subd. 6.Restricted procedures. (a) The following procedures are allowed when 
358.7 	the procedures are implemented in compliance with the standards governing their use as 
358.8 	identified in clauses (1) to (3). Allowed but restricted procedures include:
358.9 	(1) permitted actions and procedures subject to the requirements in subdivision 7;
358.10 	(2) procedures identified in a positive support transition plan subject to the 
358.11 	requirements in subdivision 8; or
358.12 	(3) emergency use of manual restraint subject to the requirements in section 
358.13 	245D.061.
358.14 	For purposes of this chapter, this section supersedes the requirements identified in 
358.15 	Minnesota Rules, part 9525.2740.
358.16 	(b) A restricted procedure identified in paragraph (a) must not:
358.17 	(1) be implemented with a child in a manner that constitutes sexual abuse, neglect, 
358.18 	physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
358.19 	(2) be implemented with an adult in a manner that constitutes abuse or neglect as 
358.20 	defined in section 626.5572, subdivision 2 or 17;
358.21 	(3) be implemented in a manner that violates a person's rights identified in section 
358.22 	245D.04;
358.23 	(4) restrict a person's normal access to a nutritious diet, drinking water, adequate 
358.24 	ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping 
358.25 	conditions, necessary clothing, or any protection required by state licensing standards or 
358.26 	federal regulations governing the program;
358.27 	(5) deny the person visitation or ordinary contact with legal counsel, a legal 
358.28 	representative, or next of kin;
358.29 	(6) be used for the convenience of staff, as punishment, as a substitute for adequate 
358.30 	staffing, or as a consequence if the person refuses to participate in the treatment or services 
358.31 	provided by the program;
358.32 	(7) use prone restraint. For purposes of this section, "prone restraint" means use 
358.33 	of manual restraint that places a person in a face-down position. Prone restraint does 
358.34 	not include brief physical holding of a person who, during an emergency use of manual 
359.1 	restraint, rolls into a prone position, if the person is restored to a standing, sitting, or 
359.2 	side-lying position as quickly as possible;
359.3 	(8) apply back or chest pressure while a person is in a prone position as identified in 
359.4 	clause (7), supine position, or side-lying position; or
359.5 	(9) be implemented in a manner that is contraindicated for any of the person's known 
359.6 	medical or psychological limitations.

359.7 	Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is 
359.8 	amended to read:
359.9 		Subd. 7.Permitted actions and procedures. (a) Use of the instructional techniques 
359.10 	and intervention procedures as identified in paragraphs (b) and (c) is permitted when used 
359.11 	on an intermittent or continuous basis. When used on a continuous basis, it must be 
359.12 	addressed in a person's coordinated service and support plan addendum as identified in 
359.13 	sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this 
359.14 	subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
359.15 	(b) Physical contact or instructional techniques must use the least restrictive 
359.16 	alternative possible to meet the needs of the person and may be used:
359.17 	(1) to calm or comfort a person by holding that person with no resistance from 
359.18 	that person;
359.19 	(2) to protect a person known to be at risk or of  injury due to frequent falls as a result 
359.20 	of a medical condition;
359.21 	(3) to facilitate the person's completion of a task or response when the person does 
359.22 	not resist or the person's resistance is minimal in intensity and duration; or
359.23 	(4) to briefly block or redirect a person's limbs or body without holding the person or 
359.24 	limiting the person's movement to interrupt the person's behavior that may result in injury 
359.25 	to self or others. with less than 60 seconds of physical contact by staff; or
359.26 	(5) to redirect a person's behavior when the behavior does not pose a serious threat 
359.27 	to the person or others and the behavior is effectively redirected with less than 60 seconds 
359.28 	of physical contact by staff.
359.29 	(c) Restraint may be used as an intervention procedure to:
359.30 	(1) allow a licensed health care professional to safely conduct a medical examination 
359.31 	or to provide medical treatment ordered by a licensed health care professional to a person 
359.32 	necessary to promote healing or recovery from an acute, meaning short-term, medical 
359.33 	condition;
359.34 	(2) assist in the safe evacuation or redirection of a person in the event of an 
359.35 	emergency and the person is at imminent risk of harm.; or
360.1 	Any use of manual restraint as allowed in this paragraph must comply with the restrictions 
360.2 	identified in section 245D.061, subdivision 3; or
360.3 	(3) position a person with physical disabilities in a manner specified in the person's 
360.4 	coordinated service and support plan addendum.
360.5 	Any use of manual restraint as allowed in this paragraph must comply with the restrictions 
360.6 	identified in subdivision 6, paragraph (b).
360.7 	(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment 
360.8 	ordered by a licensed health professional to treat a diagnosed medical condition do not in 
360.9 	and of themselves constitute the use of mechanical restraint.
360.10 	(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when 
360.11 	being transported in a vehicle in accordance with seat belt use requirements in section 
360.12 	169.686 does not constitute the use of mechanical restraint.

360.13 	Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is 
360.14 	amended to read:
360.15 		Subd. 8.Positive support transition plan. (a) License holders must develop 
360.16 	a positive support transition plan on the forms and in the manner prescribed by the 
360.17 	commissioner for a person who requires intervention in order to maintain safety when 
360.18 	it is known that the person's behavior poses an immediate risk of physical harm to self 
360.19 	or others. The positive support transition plan forms and instructions will supersede the 
360.20 	requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The 
360.21 	positive support transition plan must phase out any existing plans for the emergency 
360.22 	or programmatic use of aversive or deprivation procedures restrictive interventions
360.23 	 prohibited under this chapter within the following timelines:
360.24 	(1) for persons receiving services from the license holder before January 1, 2014, 
360.25 	the plan must be developed and implemented by February 1, 2014, and phased out no 
360.26 	later than December 31, 2014; and
360.27 	(2) for persons admitted to the program on or after January 1, 2014, the plan must be 
360.28 	developed and implemented within 30 calendar days of service initiation and phased out 
360.29 	no later than 11 months from the date of plan implementation.
360.30 	(b) The commissioner has limited authority to grant approval for the emergency use 
360.31 	of procedures identified in subdivision 6 that had been part of an approved positive support 
360.32 	transition plan when a person is at imminent risk of serious injury as defined in section 
360.33 	245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
360.34 	(1) the person's expanded support team approves the emergency use of the 
360.35 	procedures; and
361.1 	(2) the interim review panel established in section 245.8251, subdivision 4, 
361.2 	recommends commissioner approval of the emergency use of the procedures.
361.3 	(c) Written requests for the emergency use of the procedures must be developed 
361.4 	and submitted to the commissioner by the designated coordinator with input from the 
361.5 	person's expanded support team in accordance with the requirements set by the interim 
361.6 	review panel, in addition to the following:
361.7 	(1) a copy of the person's current positive support transition plan and copies of 
361.8 	each positive support transition plan review containing data on the progress of the plan 
361.9 	from the previous year;
361.10 	(2) documentation of a good faith effort to eliminate the use of the procedures that 
361.11 	had been part of an approved positive support transition plan;
361.12 	(3) justification for the continued use of the procedures that identifies the imminent 
361.13 	risk of serious injury due to the person's self-injurious behavior if the procedures were 
361.14 	eliminated;
361.15 	(4) documentation of the clinicians consulted in creating and maintaining the 
361.16 	positive support transition plan; and
361.17 	(5) documentation of the expanded support team's approval and the recommendation 
361.18 	from the interim panel required under paragraph (b).
361.19 	(d) A copy of the written request, supporting documentation, and the commissioner's 
361.20 	final determination on the request must be maintained in the person's service recipient 
361.21 	record.

361.22 	Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3, 
361.23 	is amended to read:
361.24 		Subd. 3.Assessment and initial service planning. (a) Within 15 days of service 
361.25 	initiation the license holder must complete a preliminary coordinated service and support 
361.26 	plan addendum based on the coordinated service and support plan.
361.27 	(b) Within 45 days of service initiation the license holder must meet with the person, 
361.28 	the person's legal representative, the case manager, and other members of the support team 
361.29 	or expanded support team to assess and determine the following based on the person's 
361.30 	coordinated service and support plan and the requirements in subdivision 4 and section 
361.31 	245D.07, subdivision 1a:
361.32 	(1) the scope of the services to be provided to support the person's daily needs 
361.33 	and activities;
361.34 	(2) the person's desired outcomes and the supports necessary to accomplish the 
361.35 	person's desired outcomes;
362.1 	(3) the person's preferences for how services and supports are provided;
362.2 	(4) whether the current service setting is the most integrated setting available and 
362.3 	appropriate for the person; and
362.4 	(5) how services must be coordinated across other providers licensed under this 
362.5 	chapter serving the same person to ensure continuity of care for the person.
362.6 	(c) Within the scope of services, the license holder must, at a minimum, assess 
362.7 	the following areas:
362.8 	(1) the person's ability to self-manage health and medical needs to maintain or 
362.9 	improve physical, mental, and emotional well-being, including, when applicable, allergies, 
362.10 	seizures, choking, special dietary needs, chronic medical conditions, self-administration 
362.11 	of medication or treatment orders, preventative screening, and medical and dental 
362.12 	appointments;
362.13 	(2) the person's ability to self-manage personal safety to avoid injury or accident in 
362.14 	the service setting, including, when applicable, risk of falling, mobility, regulating water 
362.15 	temperature, community survival skills, water safety skills, and sensory disabilities; and
362.16 	(3) the person's ability to self-manage symptoms or behavior that may otherwise 
362.17 	result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to 
362.18 	(7), suspension or termination of services by the license holder, or other symptoms 
362.19 	or behaviors that may jeopardize the health and safety of the person or others. The 
362.20 	assessments must produce information about the person that is descriptive of the person's 
362.21 	overall strengths, functional skills and abilities, and behaviors or symptoms.
362.22 	(b) Within the scope of services, the license holder must, at a minimum, complete 
362.23 	assessments in the following areas before the 45-day planning meeting:
362.24 	(1) the person's ability to self-manage health and medical needs to maintain or 
362.25 	improve physical, mental, and emotional well-being, including, when applicable, allergies, 
362.26 	seizures, choking, special dietary needs, chronic medical conditions, self-administration 
362.27 	of medication or treatment orders, preventative screening, and medical and dental 
362.28 	appointments;
362.29 	(2) the person's ability to self-manage personal safety to avoid injury or accident in 
362.30 	the service setting, including, when applicable, risk of falling, mobility, regulating water 
362.31 	temperature, community survival skills, water safety skills, and sensory disabilities; and
362.32 	(3) the person's ability to self-manage symptoms or behavior that may otherwise 
362.33 	result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7), 
362.34 	suspension or termination of services by the license holder, or other symptoms or 
362.35 	behaviors that may jeopardize the health and safety of the person or others.
363.1 	Assessments must produce information about the person that describes the person's overall 
363.2 	strengths, functional skills and abilities, and behaviors or symptoms. Assessments must 
363.3 	be based on the person's status within the last 12 months at the time of service initiation. 
363.4 	Assessments based on older information must be documented and justified. Assessments 
363.5 	must be conducted annually at a minimum or within 30 days of a written request from the 
363.6 	person or the person's legal representative or case manager. The results must be reviewed 
363.7 	by the support team or expanded support team as part of a service plan review.
363.8 	(c) Within 45 days of service initiation, the license holder must meet with the 
363.9 	person, the person's legal representative, the case manager, and other members of the 
363.10 	support team or expanded support team to determine the following based on information 
363.11 	obtained from the assessments identified in paragraph (b), the person's identified needs 
363.12 	in the coordinated service and support plan, and the requirements in subdivision 4 and 
363.13 	section 245D.07, subdivision 1a:
363.14 	(1) the scope of the services to be provided to support the person's daily needs 
363.15 	and activities;
363.16 	(2) the person's desired outcomes and the supports necessary to accomplish the 
363.17 	person's desired outcomes;
363.18 	(3) the person's preferences for how services and supports are provided;
363.19 	(4) whether the current service setting is the most integrated setting available and 
363.20 	appropriate for the person; and
363.21 	(5) how services must be coordinated across other providers licensed under this 
363.22 	chapter serving the person and members of the support team or expanded support team to 
363.23 	ensure continuity of care and coordination of services for the person.

363.24 	Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4, 
363.25 	is amended to read:
363.26 		Subd. 4.Service outcomes and supports. (a) Within ten working days of the 
363.27 	45-day planning meeting, the license holder must develop and document a service plan that 
363.28 	documents the service outcomes and supports based on the assessments completed under 
363.29 	subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and 
363.30 	supports must be included in the coordinated service and support plan addendum.
363.31 	(b) The license holder must document the supports and methods to be implemented 
363.32 	to support the accomplishment of person and accomplish outcomes related to acquiring, 
363.33 	retaining, or improving skills and physical, mental, and emotional health and well-being. 
363.34 	The documentation must include:
364.1 	(1) the methods or actions that will be used to support the person and to accomplish 
364.2 	the service outcomes, including information about:
364.3 	(i) any changes or modifications to the physical and social environments necessary 
364.4 	when the service supports are provided;
364.5 	(ii) any equipment and materials required; and
364.6 	(iii) techniques that are consistent with the person's communication mode and 
364.7 	learning style;
364.8 	(2) the measurable and observable criteria for identifying when the desired outcome 
364.9 	has been achieved and how data will be collected;
364.10 	(3) the projected starting date for implementing the supports and methods and 
364.11 	the date by which progress towards accomplishing the outcomes will be reviewed and 
364.12 	evaluated; and
364.13 	(4) the names of the staff or position responsible for implementing the supports 
364.14 	and methods.
364.15 	(c) Within 20 working days of the 45-day meeting, the license holder must obtain 
364.16 	dated signatures from the person or the person's legal representative and case manager 
364.17 	to document completion and approval of the assessment and coordinated service and 
364.18 	support plan addendum.

364.19 	Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5, 
364.20 	is amended to read:
364.21 		Subd. 5.Progress reviews Service plan review and evaluation. (a) The license 
364.22 	holder must give the person or the person's legal representative and case manager an 
364.23 	opportunity to participate in the ongoing review and development of the service plan 
364.24 	and the methods used to support the person and accomplish outcomes identified in 
364.25 	subdivisions 3 and 4. The license holder, in coordination with the person's support team 
364.26 	or expanded support team, must meet with the person, the person's legal representative, 
364.27 	and the case manager, and participate in progress service plan review meetings following 
364.28 	stated timelines established in the person's coordinated service and support plan or 
364.29 	coordinated service and support plan addendum or within 30 days of a written request 
364.30 	by the person, the person's legal representative, or the case manager, at a minimum of 
364.31 	once per year. The purpose of the service plan review is to determine whether changes 
364.32 	are needed to the service plan based on the assessment information, the license holder's 
364.33 	evaluation of progress towards accomplishing outcomes, or other information provided by 
364.34 	the support team or expanded support team.
365.1 	(b) The license holder must summarize the person's status and progress toward 
365.2 	achieving the identified outcomes and make recommendations and identify the rationale 
365.3 	for changing, continuing, or discontinuing implementation of supports and methods 
365.4 	identified in subdivision 4 in a written report sent to the person or the person's legal 
365.5 	representative and case manager five working days prior to the review meeting, unless 
365.6 	the person, the person's legal representative, or the case manager requests to receive the 
365.7 	report at the time of the meeting.
365.8 	(c) Within ten working days of the progress review meeting, the license holder 
365.9 	must obtain dated signatures from the person or the person's legal representative and 
365.10 	the case manager to document approval of any changes to the coordinated service and 
365.11 	support plan addendum.

365.12 	Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2, 
365.13 	is amended to read:
365.14 		Subd. 2.Coordination and evaluation of individual service delivery. (a) Delivery 
365.15 	and evaluation of services provided by the license holder must be coordinated by a 
365.16 	designated staff person. The designated coordinator must provide supervision, support, 
365.17 	and evaluation of activities that include:
365.18 	(1) oversight of the license holder's responsibilities assigned in the person's 
365.19 	coordinated service and support plan and the coordinated service and support plan 
365.20 	addendum;
365.21 	(2) taking the action necessary to facilitate the accomplishment of the outcomes 
365.22 	according to the requirements in section 245D.07;
365.23 	(3) instruction and assistance to direct support staff implementing the coordinated 
365.24 	service and support plan and the service outcomes, including direct observation of service 
365.25 	delivery sufficient to assess staff competency; and
365.26 	(4) evaluation of the effectiveness of service delivery, methodologies, and progress on 
365.27 	the person's outcomes based on the measurable and observable criteria for identifying when 
365.28 	the desired outcome has been achieved according to the requirements in section 245D.07.
365.29 	(b) The license holder must ensure that the designated coordinator is competent to 
365.30 	perform the required duties identified in paragraph (a) through education and, training 
365.31 	in human services and disability-related fields, and work experience in providing direct 
365.32 	care services and supports to persons with disabilities relevant to the needs of the general 
365.33 	population of persons served by the license holder and the individual persons for whom 
365.34 	the designated coordinator is responsible. The designated coordinator must have the 
365.35 	skills and ability necessary to develop effective plans and to design and use data systems 
366.1 	to measure effectiveness of services and supports. The license holder must verify and 
366.2 	document competence according to the requirements in section 245D.09, subdivision 3. 
366.3 	The designated coordinator must minimally have:
366.4 	(1) a baccalaureate degree in a field related to human services, and one year of 
366.5 	full-time work experience providing direct care services to persons with disabilities or 
366.6 	persons age 65 and older;
366.7 	(2) an associate degree in a field related to human services, and two years of 
366.8 	full-time work experience providing direct care services to persons with disabilities or 
366.9 	persons age 65 and older;
366.10 	(3) a diploma in a field related to human services from an accredited postsecondary 
366.11 	institution and three years of full-time work experience providing direct care services to 
366.12 	persons with disabilities or persons age 65 and older; or
366.13 	(4) a minimum of 50 hours of education and training related to human services 
366.14 	and disabilities; and
366.15 	(5) four years of full-time work experience providing direct care services to persons 
366.16 	with disabilities or persons age 65 and older under the supervision of a staff person who 
366.17 	meets the qualifications identified in clauses (1) to (3).

366.18 	Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is 
366.19 	amended to read:
366.20 		Subd. 3.Staff qualifications. (a) The license holder must ensure that staff providing 
366.21 	direct support, or staff who have responsibilities related to supervising or managing the 
366.22 	provision of direct support service, are competent as demonstrated through skills and 
366.23 	knowledge training, experience, and education to meet the person's needs and additional 
366.24 	requirements as written in the coordinated service and support plan or coordinated 
366.25 	service and support plan addendum, or when otherwise required by the case manager or 
366.26 	the federal waiver plan. The license holder must verify and maintain evidence of staff 
366.27 	competency, including documentation of:
366.28 	(1) education and experience qualifications relevant to the job responsibilities 
366.29 	assigned to the staff and to the needs of the general population of persons served by the 
366.30 	program, including a valid degree and transcript, or a current license, registration, or 
366.31 	certification, when a degree or licensure, registration, or certification is required by this 
366.32 	chapter or in the coordinated service and support plan or coordinated service and support 
366.33 	plan addendum;
366.34 	(2) demonstrated competency in the orientation and training areas required under 
366.35 	this chapter, and when applicable, completion of continuing education required to 
367.1 	maintain professional licensure, registration, or certification requirements. Competency in 
367.2 	these areas is determined by the license holder through knowledge testing and or observed 
367.3 	skill assessment conducted by the trainer or instructor; and
367.4 	(3) except for a license holder who is the sole direct support staff, periodic 
367.5 	performance evaluations completed by the license holder of the direct support staff 
367.6 	person's ability to perform the job functions based on direct observation.
367.7 	(b) Staff under 18 years of age may not perform overnight duties or administer 
367.8 	medication.

367.9 	Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a, 
367.10 	is amended to read:
367.11 		Subd. 4a.Orientation to individual service recipient needs. (a) Before having 
367.12 	unsupervised direct contact with a person served by the program, or for whom the staff 
367.13 	person has not previously provided direct support, or any time the plans or procedures 
367.14 	identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive 
367.15 	instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff 
367.16 	person's job functions for that person.
367.17 	(b) Training and competency evaluations must include the following:
367.18 	(1) appropriate and safe techniques in personal hygiene and grooming, including 
367.19 	hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of 
367.20 	daily living (ADLs) as defined under section 256B.0659, subdivision 1;
367.21 	(2) an understanding of what constitutes a healthy diet according to data from the 
367.22 	Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
367.23 	(3) skills necessary to provide appropriate support in instrumental activities of daily 
367.24 	living (IADLs) as defined under section 256B.0659, subdivision 1; and
367.25 	(4) demonstrated competence in providing first aid.
367.26 	(c) The staff person must review and receive instruction on the person's coordinated 
367.27 	service and support plan or coordinated service and support plan addendum as it relates 
367.28 	to the responsibilities assigned to the license holder, and when applicable, the person's 
367.29 	individual abuse prevention plan, to achieve and demonstrate an understanding of the 
367.30 	person as a unique individual, and how to implement those plans.
367.31 	(d) The staff person must review and receive instruction on medication setup, 
367.32 	assistance, or administration procedures established for the person when medication 
367.33 	administration is assigned to the license holder according to section 245D.05, subdivision 
367.34 	1, paragraph (b). Unlicensed staff may administer medications perform medication setup 
367.35 	or medication administration only after successful completion of a medication setup or 
368.1 	medication administration training, from a training curriculum developed by a registered 
368.2 	nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse 
368.3 	practitioner, physician's assistant, or physician or appropriate licensed health professional. 
368.4 	The training curriculum must incorporate an observed skill assessment conducted by the 
368.5 	trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow 
368.6 	medication procedures.
368.7 	Medication administration must be taught by a registered nurse, clinical nurse 
368.8 	specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of 
368.9 	service initiation or any time thereafter, the person has or develops a health care condition 
368.10 	that affects the service options available to the person because the condition requires:
368.11 	(1) specialized or intensive medical or nursing supervision; and
368.12 	(2) nonmedical service providers to adapt their services to accommodate the health 
368.13 	and safety needs of the person.
368.14 	(e) The staff person must review and receive instruction on the safe and correct 
368.15 	operation of medical equipment used by the person to sustain life, including but not 
368.16 	limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided 
368.17 	by a licensed health care professional or a manufacturer's representative and incorporate 
368.18 	an observed skill assessment to ensure staff demonstrate the ability to safely and correctly 
368.19 	operate the equipment according to the treatment orders and the manufacturer's instructions.
368.20 	(f) The staff person must review and receive instruction on what constitutes use of 
368.21 	restraints, time out, and seclusion, including chemical restraint, and staff responsibilities 
368.22 	related to the prohibitions of their use according to the requirements in section 245D.06, 
368.23 	subdivision 5 or successor provisions, why such procedures are not effective for reducing 
368.24 	or eliminating symptoms or undesired behavior and why they are not safe, and the safe 
368.25 	and correct use of manual restraint on an emergency basis according to the requirements 
368.26 	in section 245D.061or successor provisions.
368.27 	(g) The staff person must review and receive instruction on mental health crisis 
368.28 	response, de-escalation techniques, and suicide intervention when providing direct support 
368.29 	to a person with a serious mental illness.
368.30 	(g)(h) In the event of an emergency service initiation, the license holder must ensure 
368.31 	the training required in this subdivision occurs within 72 hours of the direct support staff 
368.32 	person first having unsupervised contact with the person receiving services. The license 
368.33 	holder must document the reason for the unplanned or emergency service initiation and 
368.34 	maintain the documentation in the person's service recipient record.
368.35 	(h)(i) License holders who provide direct support services themselves must 
368.36 	complete the orientation required in subdivision 4, clauses (3) to (7).

369.1 	Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2, 
369.2 	is amended to read:
369.3 		Subd. 2.Behavior professional qualifications. A behavior professional providing 
369.4 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 
369.5 	clause (1), item (i), as defined in the brain injury and community alternatives for disabled 
369.6 	individuals waiver plans or successor plans, must have competencies in the following 
369.7 	areas related to as required under the brain injury and community alternatives for disabled 
369.8 	individuals waiver plans or successor plans:
369.9 	(1) ethical considerations;
369.10 	(2) functional assessment;
369.11 	(3) functional analysis;
369.12 	(4) measurement of behavior and interpretation of data;
369.13 	(5) selecting intervention outcomes and strategies;
369.14 	(6) behavior reduction and elimination strategies that promote least restrictive 
369.15 	approved alternatives;
369.16 	(7) data collection;
369.17 	(8) staff and caregiver training;
369.18 	(9) support plan monitoring;
369.19 	(10) co-occurring mental disorders or neurocognitive disorder;
369.20 	(11) demonstrated expertise with populations being served; and
369.21 	(12) must be a:
369.22 	(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the 
369.23 	Board of Psychology competencies in the above identified areas;
369.24 	(ii) clinical social worker licensed as an independent clinical social worker under 
369.25 	chapter 148D, or a person with a master's degree in social work from an accredited college 
369.26 	or university, with at least 4,000 hours of post-master's supervised experience in the 
369.27 	delivery of clinical services in the areas identified in clauses (1) to (11);
369.28 	(iii) physician licensed under chapter 147 and certified by the American Board 
369.29 	of Psychiatry and Neurology or eligible for board certification in psychiatry with 
369.30 	competencies in the areas identified in clauses (1) to (11);
369.31 	(iv) licensed professional clinical counselor licensed under sections 148B.29 to 
369.32 	148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery 
369.33 	of clinical services who has demonstrated competencies in the areas identified in clauses 
369.34 	(1) to (11);
369.35 	(v) person with a master's degree from an accredited college or university in one 
369.36 	of the behavioral sciences or related fields, with at least 4,000 hours of post-master's 
370.1 	supervised experience in the delivery of clinical services with demonstrated competencies 
370.2 	in the areas identified in clauses (1) to (11); or
370.3 	(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is 
370.4 	certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 
370.5 	mental health nursing by a national nurse certification organization, or who has a master's 
370.6 	degree in nursing or one of the behavioral sciences or related fields from an accredited 
370.7 	college or university or its equivalent, with at least 4,000 hours of post-master's supervised 
370.8 	experience in the delivery of clinical services.

370.9 	Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3, 
370.10 	is amended to read:
370.11 		Subd. 3.Behavior analyst qualifications. (a) A behavior analyst providing 
370.12 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph 
370.13 	(c), clause (1), item (i), as defined in the brain injury and community alternatives for 
370.14 	disabled individuals waiver plans or successor plans, must have competencies in the 
370.15 	following areas as required under the brain injury and community alternatives for disabled 
370.16 	individuals waiver plans or successor plans:
370.17 	(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services 
370.18 	discipline; or
370.19 	(2) meet the qualifications of a mental health practitioner as defined in section 
370.20 	245.462, subdivision 17.
370.21 	(b) In addition, a behavior analyst must:
370.22 	(1) have four years of supervised experience working with individuals who exhibit 
370.23 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
370.24 	(2) have received ten hours of instruction in functional assessment and functional 
370.25 	analysis;
370.26 	(3) have received 20 hours of instruction in the understanding of the function of 
370.27 	behavior;
370.28 	(4) have received ten hours of instruction on design of positive practices behavior 
370.29 	support strategies;
370.30 	(5) have received 20 hours of instruction on the use of behavior reduction approved 
370.31 	strategies used only in combination with behavior positive practices strategies;
370.32 	(6) be determined by a behavior professional to have the training and prerequisite 
370.33 	skills required to provide positive practice strategies as well as behavior reduction 
370.34 	approved and permitted intervention to the person who receives behavioral support; and
370.35 	(7) be under the direct supervision of a behavior professional.

371.1 	Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4, 
371.2 	is amended to read:
371.3 		Subd. 4.Behavior specialist qualifications. (a) A behavior specialist providing 
371.4 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 
371.5 	clause (1), item (i), as defined in the brain injury and community alternatives for disabled 
371.6 	individuals waiver plans or successor plans, must meet the following qualifications have 
371.7 	competencies in the following areas as required under the brain injury and community 
371.8 	alternatives for disabled individuals waiver plans or successor plans:
371.9 	(1) have an associate's degree in a social services discipline; or
371.10 	(2) have two years of supervised experience working with individuals who exhibit 
371.11 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
371.12 	(b) In addition, a behavior specialist must:
371.13 	(1) have received a minimum of four hours of training in functional assessment;
371.14 	(2) have received 20 hours of instruction in the understanding of the function of 
371.15 	behavior;
371.16 	(3) have received ten hours of instruction on design of positive practices behavioral 
371.17 	support strategies;
371.18 	(4) be determined by a behavior professional to have the training and prerequisite 
371.19 	skills required to provide positive practices strategies as well as behavior reduction 
371.20 	approved intervention to the person who receives behavioral support; and
371.21 	(5) be under the direct supervision of a behavior professional.

371.22 	Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is 
371.23 	amended to read:
371.24 		Subd. 3.Service suspension and service termination. (a) The license holder must 
371.25 	establish policies and procedures for temporary service suspension and service termination 
371.26 	that promote continuity of care and service coordination with the person and the case 
371.27 	manager and with other licensed caregivers, if any, who also provide support to the person.
371.28 	(b) The policy must include the following requirements:
371.29 	(1) the license holder must notify the person or the person's legal representative and 
371.30 	case manager in writing of the intended termination or temporary service suspension, and 
371.31 	the person's right to seek a temporary order staying the termination of service according to 
371.32 	the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
371.33 	(2) notice of the proposed termination of services, including those situations that 
371.34 	began with a temporary service suspension, must be given at least 60 days before the 
371.35 	proposed termination is to become effective when a license holder is providing intensive 
372.1 	supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30 
372.2 	days prior to termination for all other services licensed under this chapter. This notice 
372.3 	may be given in conjunction with a notice of temporary service suspension;
372.4 	(3) notice of temporary service suspension must be given on the first day of the 
372.5 	service suspension;
372.6 	(3) (4) the license holder must provide information requested by the person or case 
372.7 	manager when services are temporarily suspended or upon notice of termination;
372.8 	(4) (5) prior to giving notice of service termination or temporary service suspension, 
372.9 	the license holder must document actions taken to minimize or eliminate the need for 
372.10 	service suspension or termination;
372.11 	(5) (6) during the temporary service suspension or service termination notice period, 
372.12 	the license holder will must work with the appropriate county agency support team or 
372.13 	expanded support team to develop reasonable alternatives to protect the person and others;
372.14 	(6) (7) the license holder must maintain information about the service suspension or 
372.15 	termination, including the written termination notice, in the service recipient record; and
372.16 	(7) (8) the license holder must restrict temporary service suspension to situations in 
372.17 	which the person's conduct poses an imminent risk of physical harm to self or others and 
372.18 	less restrictive or positive support strategies would not achieve and maintain safety.

372.19 	Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is 
372.20 	amended to read:
372.21 		Subd. 4.Availability of current written policies and procedures. (a) The license 
372.22 	holder must review and update, as needed, the written policies and procedures required 
372.23 	under this chapter.
372.24 	(b) (1) The license holder must inform the person and case manager of the policies 
372.25 	and procedures affecting a person's rights under section 245D.04, and provide copies of 
372.26 	those policies and procedures, within five working days of service initiation.
372.27 	(2) If a license holder only provides basic services and supports, this includes the:
372.28 	(i) grievance policy and procedure required under subdivision 2; and
372.29 	(ii) service suspension and termination policy and procedure required under 
372.30 	subdivision 3.
372.31 	(3) For all other license holders this includes the:
372.32 	(i) policies and procedures in clause (2);
372.33 	(ii) emergency use of manual restraints policy and procedure required under section 
372.34 	245D.061, subdivision 10, or successor provisions; and
372.35 	(iii) data privacy requirements under section 245D.11, subdivision 3.
373.1 	(c) The license holder must provide a written notice to all persons or their legal 
373.2 	representatives and case managers at least 30 days before implementing any procedural 
373.3 	revisions to policies affecting a person's service-related or protection-related rights under 
373.4 	section 245D.04 and maltreatment reporting policies and procedures. The notice must 
373.5 	explain the revision that was made and include a copy of the revised policy and procedure. 
373.6 	The license holder must document the reasonable cause for not providing the notice at 
373.7 	least 30 days before implementing the revisions.
373.8 	(d) Before implementing revisions to required policies and procedures, the license 
373.9 	holder must inform all employees of the revisions and provide training on implementation 
373.10 	of the revised policies and procedures.
373.11 	(e) The license holder must annually notify all persons, or their legal representatives, 
373.12 	and case managers of any procedural revisions to policies required under this chapter, 
373.13 	other than those in paragraph (c). Upon request, the license holder must provide the 
373.14 	person, or the person's legal representative, and case manager with copies of the revised 
373.15 	policies and procedures.

373.16 	Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is 
373.17 	amended to read:
373.18 		Subd. 2.Health and safety. The license holder must establish policies and 
373.19 	procedures that promote health and safety by ensuring:
373.20 	(1) use of universal precautions and sanitary practices in compliance with section 
373.21 	245D.06, subdivision 2, clause (5);
373.22 	(2) if the license holder operates a residential program, health service coordination 
373.23 	and care according to the requirements in section 245D.05, subdivision 1;
373.24 	(3) safe medication assistance and administration according to the requirements 
373.25 	in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in 
373.26 	consultation with a registered nurse, nurse practitioner, physician's assistant, or medical 
373.27 	doctor and require completion of medication administration training according to the 
373.28 	requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance 
373.29 	and administration includes, but is not limited to:
373.30 	(i) providing medication-related services for a person;
373.31 	(ii) medication setup;
373.32 	(iii) medication administration;
373.33 	(iv) medication storage and security;
373.34 	(v) medication documentation and charting;
374.1 	(vi) verification and monitoring of effectiveness of systems to ensure safe medication 
374.2 	handling and administration;
374.3 	(vii) coordination of medication refills;
374.4 	(viii) handling changes to prescriptions and implementation of those changes;
374.5 	(ix) communicating with the pharmacy; and
374.6 	(x) coordination and communication with prescriber;
374.7 	(4) safe transportation, when the license holder is responsible for transportation of 
374.8 	persons, with provisions for handling emergency situations according to the requirements 
374.9 	in section 245D.06, subdivision 2, clauses (2) to (4);
374.10 	(5) a plan for ensuring the safety of persons served by the program in emergencies as 
374.11 	defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies 
374.12 	to the license holder. A license holder with a community residential setting or a day service 
374.13 	facility license must ensure the policy and procedures comply with the requirements in 
374.14 	section 245D.22, subdivision 4;
374.15 	(6) a plan for responding to all incidents as defined in section 245D.02, subdivision 
374.16 	11; and reporting all incidents required to be reported according to section 245D.06, 
374.17 	subdivision 1. The plan must:
374.18 	(i) provide the contact information of a source of emergency medical care and 
374.19 	transportation; and
374.20 	(ii) require staff to first call 911 when the staff believes a medical emergency may 
374.21 	be life threatening, or to call the mental health crisis intervention team or similar mental 
374.22 	health response team or service when such a team is available and appropriate when the 
374.23 	person is experiencing a mental health crisis; and
374.24 	(7) a procedure for the review of incidents and emergencies to identify trends or 
374.25 	patterns, and corrective action if needed. The license holder must establish and maintain 
374.26 	a record-keeping system for the incident and emergency reports. Each incident and 
374.27 	emergency report file must contain a written summary of the incident. The license holder 
374.28 	must conduct a review of incident reports for identification of incident patterns, and 
374.29 	implementation of corrective action as necessary to reduce occurrences. Each incident 
374.30 	report must include:
374.31 	(i) the name of the person or persons involved in the incident. It is not necessary 
374.32 	to identify all persons affected by or involved in an emergency unless the emergency 
374.33 	resulted in an incident;
374.34 	(ii) the date, time, and location of the incident or emergency;
374.35 	(iii) a description of the incident or emergency;
375.1 	(iv) a description of the response to the incident or emergency and whether a person's 
375.2 	coordinated service and support plan addendum or program policies and procedures were 
375.3 	implemented as applicable;
375.4 	(v) the name of the staff person or persons who responded to the incident or 
375.5 	emergency; and
375.6 	(vi) the determination of whether corrective action is necessary based on the results 
375.7 	of the review.

375.8 	Sec. 46. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
375.9 		Subd. 2.Vendor participation and reimbursement. Notwithstanding requirements 
375.10 	in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501, 
375.11 	vendors of day training and habilitation services may enter into written agreements with 
375.12 	qualified businesses to provide additional training and supervision needed by individuals 
375.13 	to maintain their employment.

375.14 	Sec. 47. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:
375.15 		Subd. 2.Authority. The Minnesota Board on Aging shall allocate to area agencies 
375.16 	on aging the state and federal funds which are received for the senior nutrition programs 
375.17 	of congregate dining and home-delivered meals in a manner consistent with federal 
375.18 	requirements.

375.19 	Sec. 48. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 4, 
375.20 	is amended to read:
375.21 		Subd. 4.Diagnosis. (a) A diagnosis must:
375.22 	(1) be based upon current DSM criteria including direct observations of the child 
375.23 	and reports from parents or primary caregivers; and
375.24 	(2) be completed by both either (i) a licensed physician or advanced practice 
375.25 	registered nurse and or (ii) a mental health professional.
375.26 	(b) Additional diagnostic assessment information may be considered including from 
375.27 	special education evaluations and licensed school personnel, and from professionals 
375.28 	licensed in the fields of medicine, speech and language, psychology, occupational therapy, 
375.29 	and physical therapy.
375.30 	(c) If the commissioner determines there are access problems or delays in diagnosis 
375.31 	for a geographic area due to the lack of qualified professionals, the commissioner shall 
375.32 	waive the requirement in paragraph (a), clause (2), for two professionals and allow a 
375.33 	diagnosis to be made by one professional for that geographic area. This exception must be 
376.1 	limited to a specific period of time until, with stakeholder input as described in subdivision 
376.2 	8, there is a determination of an adequate number of professionals available to require two 
376.3 	professionals for each diagnosis.

376.4 	Sec. 49. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1, 
376.5 	is amended to read:
376.6 		Subdivision 1.Development and implementation of quality profiles. (a) The 
376.7 	commissioner of human services, in cooperation with the commissioner of health, shall 
376.8 	develop and implement quality profiles for nursing facilities and, beginning not later than 
376.9 	July 1, 2014, for home and community-based services providers, except when the quality 
376.10 	profile system would duplicate requirements under section 256B.5011, 256B.5012, or 
376.11 	256B.5013. For purposes of this section, home and community-based services providers 
376.12 	are defined as providers of home and community-based services under sections 256B.0625, 
376.13 	subdivisions 6a, 7, and 19a; 256B.0913,;256B.0915,;256B.092, and;256B.49,; and 
376.14 	256B.85, and intermediate care facilities for persons with developmental disabilities 
376.15 	providers under section 256B.5013. To the extent possible, quality profiles must be 
376.16 	developed for providers of services to older adults and people with disabilities, regardless 
376.17 	of payor source, for the purposes of providing information to consumers. The quality 
376.18 	profiles must be developed using existing data sets maintained by the commissioners of 
376.19 	health and human services to the extent possible. The profiles must incorporate or be 
376.20 	coordinated with information on quality maintained by area agencies on aging, long-term 
376.21 	care trade associations, the ombudsman offices, counties, tribes, health plans, and other 
376.22 	entities and the long-term care database maintained under section 256.975, subdivision 7. 
376.23 	The profiles must be designed to provide information on quality to:
376.24 	(1) consumers and their families to facilitate informed choices of service providers;
376.25 	(2) providers to enable them to measure the results of their quality improvement 
376.26 	efforts and compare quality achievements with other service providers; and
376.27 	(3) public and private purchasers of long-term care services to enable them to 
376.28 	purchase high-quality care.
376.29 	(b) The profiles must be developed in consultation with the long-term care task 
376.30 	force, area agencies on aging, and representatives of consumers, providers, and labor 
376.31 	unions. Within the limits of available appropriations, the commissioners may employ 
376.32 	consultants to assist with this project.

376.33 	EFFECTIVE DATE. This section is effective retroactively from February 1, 2014.

377.1 	Sec. 50. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7, 
377.2 	is amended to read:
377.3 		Subd. 7.Calculation of home and community-based services quality add-on. 
 377.4 	Effective On July 1, 2015, the commissioner shall determine the quality add-on rate 
377.5 	change and adjust payment rates for participating all home and community-based services 
377.6 	providers for services rendered on or after that date. The adjustment to a provider payment 
377.7 	rate determined under this subdivision shall become part of the ongoing rate paid to that 
377.8 	provider. The payment rate for the quality add-on shall be a variable amount based on 
377.9 	each provider's quality score as determined in subdivisions 1 and 2a. All home and 
377.10 	community-based services providers shall receive a minimum rate increase under this 
377.11 	subdivision. In addition to a minimum rate increase, a home and community-based 
377.12 	services provider shall receive a quality add-on payment. The commissioner shall limit 
377.13 	the types of home and community-based services providers that may receive the quality 
377.14 	add-on and based on availability of quality measures and outcome data. The commissioner 
377.15 	shall limit the amount of the minimum rate increase and quality add-on payments to 
377.16 	operate the quality add-on within funds appropriated for this purpose and based on the 
377.17 	availability of the quality measures the equivalent of a one percent rate increase for all 
377.18 	home and community-based services providers.

377.19 	Sec. 51. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53, 
377.20 	is amended to read:
377.21 		Subd. 53.Calculation of payment rate for external fixed costs. The commissioner 
377.22 	shall calculate a payment rate for external fixed costs.
377.23 	(a) For a facility licensed as a nursing home, the portion related to section 256.9657 
377.24 	shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care 
377.25 	home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the 
377.26 	result of its number of nursing home beds divided by its total number of licensed beds.
377.27 	(b) The portion related to the licensure fee under section 144.122, paragraph (d), 
377.28 	shall be the amount of the fee divided by actual resident days.
377.29 	(c) The portion related to scholarships shall be determined under section 256B.431, 
377.30 	subdivision 36.
377.31 	(d) Until September 30, 2013, the portion related to long-term care consultation shall 
377.32 	be determined according to section 256B.0911, subdivision 6.
377.33 	(e) The portion related to development and education of resident and family advisory 
377.34 	councils under section 144A.33 shall be $5 divided by 365.
378.1 	(f) The portion related to planned closure rate adjustments shall be as determined 
378.2 	under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436. 
378.3 	Planned closure rate adjustments that take effect before October 1, 2014, shall no longer 
378.4 	be included in the payment rate for external fixed costs beginning October 1, 2016. 
378.5 	Planned closure rate adjustments that take effect on or after October 1, 2014, shall no 
378.6 	longer be included in the payment rate for external fixed costs beginning on October 1 of 
378.7 	the first year not less than two years after their effective date.
378.8 	(g) The portions related to property insurance, real estate taxes, special assessments, 
378.9 	and payments made in lieu of real estate taxes directly identified or allocated to the nursing 
378.10 	facility shall be the actual amounts divided by actual resident days.
378.11 	(h) The portion related to the Public Employees Retirement Association shall be 
378.12 	actual costs divided by resident days.
378.13 	(i) The single bed room incentives shall be as determined under section 256B.431, 
378.14 	subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall 
378.15 	no longer be included in the payment rate for external fixed costs beginning October 1, 
378.16 	2016. Single bed room incentives that take effect on or after October 1, 2014, shall no 
378.17 	longer be included in the payment rate for external fixed costs beginning on October 1 of 
378.18 	the first year not less than two years after their effective date.
378.19 	(j)  The portion related to the rate adjustment as provided in subdivision 64.
378.20 	(k) The payment rate for external fixed costs shall be the sum of the amounts in 
378.21 	paragraphs (a) to (i) (j).

378.22 	Sec. 52. Minnesota Statutes 2012, section 256B.441, is amended by adding a 
378.23 	subdivision to read:
378.24 		Subd. 64.Rate adjustment for compensation-related costs. (a) Total payment 
378.25 	rates of all nursing facilities that are reimbursed under this section or section 256B.434 
378.26 	shall be increased effective October 1, 2014, to address compensation costs for nursing 
378.27 	facility employees paid less than $14.00 per hour.
378.28 	(b) Based on the application in paragraph (d), the commissioner shall calculate 
378.29 	the annualized compensation costs by adding the totals of clauses (1), (2), and (3). The 
378.30 	result must be divided by the resident days from the most recently available cost report to 
378.31 	determine a per diem amount, which must be included in the external fixed cost portion of 
378.32 	the total payment rate under subdivision 53: 
378.33 	(1) the sum of the difference between $9.50 and any hourly wage rate of less than 
378.34 	$9.50, multiplied by the number of compensated hours at that wage rate;
378.35 	(2) the sum of items (i) to (viii):
379.1 	(i) for all compensated hours from $8.00 to $8.49 per hour, the number of 
379.2 	compensated hours is multiplied by $0.13;
379.3 	(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of 
379.4 	compensated hours is multiplied by $0.25;
379.5 	(iii) for all compensated hours from $9.00 to $9.49 per hour, the number of 
379.6 	compensated hours is multiplied by $0.38;
379.7 	(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of 
379.8 	compensated hours is multiplied by $0.50;
379.9 	(v) for all compensated hours from $10.50 to $10.99 per hour, the number of 
379.10 	compensated hours is multiplied by $0.40;
379.11 	(vi) for all compensated hours from $11.00 to $11.49 per hour, the number of 
379.12 	compensated hours is multiplied by $0.30;
379.13 	(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of 
379.14 	compensated hours is multiplied by $0.20; and
379.15 	(viii) for all compensated hours from $12.00 to $13.00 per hour, the number of 
379.16 	compensated hours is multiplied by $0.10; and
379.17 	(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal 
379.18 	unemployment taxes, workers' compensation, pensions, and contributions to employee 
379.19 	retirement accounts attributable to the amounts in clauses (1) and (2).
379.20 	(c) For the rate year beginning October 1, 2014, nursing facilities that receive 
379.21 	approval of the application in paragraph (d) must receive a rate adjustment according to 
379.22 	paragraph (b). The rate adjustment must be used to pay compensation costs for nursing 
379.23 	facility employees paid less than $14.00 per hour. The rate adjustment must continue to 
379.24 	be included in the total payment rate in subsequent years.
379.25 	(d) To receive a rate adjustment, nursing facilities must submit an application to the 
379.26 	commissioner in a form and manner determined by the commissioner. The application 
379.27 	shall include data for a period beginning with the first pay period after January 1, 2014, 
379.28 	including at least three months of employee compensated hours by wage rate, and a 
379.29 	spending plan that describes how the funds from the rate adjustment will be allocated 
379.30 	for compensation to employees paid less than $14.00 per hour. The application must 
379.31 	be submitted by December 31, 2014. The commissioner may request any additional 
379.32 	information needed to determine the rate adjustment within three weeks of receiving 
379.33 	a complete application. The nursing facility must provide any additional information 
379.34 	requested by the commissioner by March 31, 2015. The commissioner may waive the 
379.35 	deadlines in this subdivision under extraordinary circumstances.
380.1 	(e) For nursing facilities in which employees are represented by an exclusive 
380.2 	bargaining representative, the commissioner shall approve the application submitted under 
380.3 	this subdivision only upon receipt of a letter of acceptance of the spending plan in regard 
380.4 	to members of the bargaining unit, signed by the exclusive bargaining agent and dated 
380.5 	after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall 
380.6 	deem all requirements of this subdivision as having been met in regard to the members of 
380.7 	the bargaining unit.

380.8 	Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1, 
380.9 	is amended to read:
380.10 		Subdivision 1.Provider qualifications. (a) For the home and community-based 
380.11 	waivers providing services to seniors and individuals with disabilities under sections 
380.12 	256B.0913, 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
380.13 	(1) agreements with enrolled waiver service providers to ensure providers meet 
380.14 	Minnesota health care program requirements;
380.15 	(2) regular reviews of provider qualifications, and including requests of proof of 
380.16 	documentation; and
380.17 	(3) processes to gather the necessary information to determine provider qualifications.
380.18 	(b) Beginning July 1, 2012, staff that provide direct contact, as defined in section 
380.19 	245C.02, subdivision 11, for services specified in the federally approved waiver plans 
380.20 	must meet the requirements of chapter 245C prior to providing waiver services and as 
380.21 	part of ongoing enrollment. Upon federal approval, this requirement must also apply to 
380.22 	consumer-directed community supports.
380.23 	(c) Beginning January 1, 2014, service owners and managerial officials overseeing 
380.24 	the management or policies of services that provide direct contact as specified in the 
380.25 	federally approved waiver plans must meet the requirements of chapter 245C prior to 
380.26 	reenrollment or revalidation or, for new providers, prior to initial enrollment if they have 
380.27 	not already done so as a part of service licensure requirements.

380.28 	Sec. 54. Minnesota Statutes 2012, section 256B.5012, is amended by adding a 
380.29 	subdivision to read:
380.30 		Subd. 16.ICF/DD rate increases effective July 1, 2014. (a) For each facility 
380.31 	reimbursed under this section, for the rate period beginning July 1, 2014, the commissioner 
380.32 	shall increase operating payments equal to five percent of the operating payment rates in 
380.33 	effect on July 1, 2014. For each facility, the commissioner shall apply the rate increase 
380.34 	based on occupied beds, using the percentage specified in this subdivision multiplied by 
381.1 	the total payment rate, including the variable rate but excluding the property-related 
381.2 	payment rate in effect on the preceding date.
381.3 	(b) To receive the rate increase under paragraph (a), each facility reimbursed under 
381.4 	this section must submit to the commissioner documentation that identifies a quality 
381.5 	improvement project the facility will implement by June 30, 2015. Documentation must 
381.6 	be provided in a format specified by the commissioner. Projects must:
381.7 	(1) improve the quality of life of intermediate care facility residents in a meaningful 
381.8 	way;
381.9 	(2) improve the quality of services in a measurable way; or
381.10 	(3) deliver good quality service more efficiently while using the savings to enhance 
381.11 	services for the participants served.
381.12 	(c) For a facility that fails to submit the documentation described in paragraph (b) 
381.13 	by a date or in a format specified by the commissioner, the commissioner shall reduce 
381.14 	the facility's rate by one percent effective January 1, 2015.
381.15 	(d) Facilities that receive a rate increase under this subdivision shall use 75 percent 
381.16 	of the rate increase to increase compensation-related costs for employees directly 
381.17 	employed by the facility on or after the effective date of the rate adjustments, except:
381.18 	(1) persons employed in the central office of a corporation or entity that has an 
381.19 	ownership interest in the facility or exercises control over the facility; and
381.20 	(2) persons paid by the facility under a management contract.
381.21 	This requirement is subject to audit by the commissioner.
381.22 	(e) Compensation-related costs include:
381.23 	(1) wages and salaries;
381.24 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
381.25 	unemployment taxes, workers' compensation, and mileage reimbursement;
381.26 	(3) the employer's share of health and dental insurance, life insurance, disability 
381.27 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
381.28 	employee retirement accounts; and
381.29 	(4) other benefits provided and workforce needs, including the recruiting and 
381.30 	training of employees as specified in the distribution plan required under paragraph (f).
381.31 	(f) A facility that receives a rate adjustment under paragraph (a) that is subject to 
381.32 	paragraphs (d) and (e) shall prepare and produce for the commissioner, upon request, a 
381.33 	plan that specifies the amount of money the provider expects to receive that is subject to 
381.34 	the requirements of paragraphs (d) and (e), as well as how that money will be distributed 
381.35 	to increase compensation for employees. The commissioner may recover funds from a 
381.36 	facility that fails to comply with this requirement.
382.1 	(g) Within six months after the effective date of the rate adjustment, the facility shall 
382.2 	post the distribution plan required under paragraph (f) for a period of at least six weeks in 
382.3 	an area of the facility's operation to which all eligible employees have access, and shall 
382.4 	provide instructions for employees who believe they have not received the wage and other 
382.5 	compensation-related increases specified in the distribution plan. These instructions must 
382.6 	include a mailing address, e-mail address, and telephone number that an employee may 
382.7 	use to contact the commissioner or the commissioner's representative. Facilities shall 
382.8 	make assurances to the commissioner of compliance with this subdivision using forms 
382.9 	prescribed by the commissioner.
382.10 	(h) For public employees, the increase for wages and benefits for certain staff is 
382.11 	available and pay rates must be increased only to the extent that the increases comply with 
382.12 	laws governing public employees' collective bargaining. Money received by a provider for 
382.13 	pay increases for public employees under this subdivision may be used only for increases 
382.14 	implemented within one month of the effective date of the rate increase and must not be 
382.15 	used for increases implemented prior to that date.
382.16 	(i) For a provider that has employees that are represented by an exclusive bargaining 
382.17 	representative, the provider shall obtain a letter of acceptance of the distribution plan, in 
382.18 	regard to the members of the bargaining unit, signed by the exclusive bargaining agent. 
382.19 	Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the 
382.20 	requirements of this subdivision in regard to the members of the bargaining unit. The 
382.21 	provider shall produce the letter of acceptance for the commissioner upon request.

382.22 	Sec. 55. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 
382.23 	1, 2014.
 382.24 	(a) The commissioner of human services shall increase reimbursement rates, grants, 
382.25 	allocations, individual limits, and rate limits, as applicable, by five percent for the rate 
382.26 	period beginning July 1, 2014, for services rendered on or after that date. County or tribal 
382.27 	contracts for services specified in this section must be amended to pass through these rate 
382.28 	increases within 60 days of the effective date.
382.29 	(b) The rate changes described in this section must be provided to:
382.30 	(1) home and community-based waiver services for persons with developmental 
382.31 	disabilities, including consumer-directed community supports, under Minnesota Statutes, 
382.32 	section 256B.092;
382.33 	(2) waiver services under community alternatives for disabled individuals, including 
382.34 	consumer-directed community supports, under Minnesota Statutes, section 256B.49;
383.1 	(3) community alternative care waiver services, including consumer-directed 
383.2 	community supports, under Minnesota Statutes, section 256B.49;
383.3 	(4) brain injury waiver services, including consumer-directed community supports, 
383.4 	under Minnesota Statutes, section 256B.49;
383.5 	(5) home and community-based waiver services for the elderly under Minnesota 
383.6 	Statutes, section 256B.0915;
383.7 	(6) nursing services and home health services under Minnesota Statutes, section 
383.8 	256B.0625, subdivision 6a;
383.9 	(7) personal care services and qualified professional supervision of personal care 
383.10 	services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
383.11 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
383.12 	subdivision 7;
383.13 	(9) community first services and supports under Minnesota Statutes, section 256B.85;
383.14 	(10) essential community supports under Minnesota Statutes, section 256B.0922;
383.15 	(11) day training and habilitation services for adults with developmental disabilities 
383.16 	or related conditions under Minnesota Statutes, sections 252.41 to 252.46, including the 
383.17 	additional cost to counties for rate adjustments to day training and habilitation services 
383.18 	provided as a social service;
383.19 	(12) alternative care services under Minnesota Statutes, section 256B.0913;
383.20 	(13) living skills training programs for persons with intractable epilepsy who need 
383.21 	assistance in the transition to independent living under Laws 1988, chapter 689;
383.22 	(14) consumer support grants under Minnesota Statutes, section 256.476;
383.23 	(15) semi-independent living services under Minnesota Statutes, section 252.275;
383.24 	(16) family support grants under Minnesota Statutes, section 252.32;
383.25 	(17) housing access grants under Minnesota Statutes, section 256B.0658;
383.26 	(18) self-advocacy grants under Laws 2009, chapter 101;
383.27 	(19) technology grants under Laws 2009, chapter 79;
383.28 	(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and 
383.29 	256B.0917;
383.30 	(21) deaf and hard-of-hearing grants, including community support services for deaf 
383.31 	and hard-of-hearing adults with mental illness who use or wish to use sign language as their 
383.32 	primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
383.33 	(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233, 
383.34 	256C.25, and 256C.261;
383.35 	(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01, 
383.36 	subdivision 24;
384.1 	(24) transition initiative grants under Minnesota Statutes, section 256.478;
384.2 	(25) employment support grants under Minnesota Statutes, section 256B.021, 
384.3 	subdivision 6; and
384.4 	(26) grants provided to people who are eligible for the Housing Opportunities for 
384.5 	Persons with AIDS program under Minnesota Statutes, section 256B.492.
384.6 	(c) A managed care plan receiving state payments for the services in paragraph (b) 
384.7 	must include the increases in paragraph (a) in payments to providers. To implement the 
384.8 	rate increase in this section, capitation rates paid by the commissioner to managed care 
384.9 	organizations under Minnesota Statutes, section 256B.69, shall reflect a five percent 
384.10 	increase for the specified services for the period beginning July 1, 2014.
384.11 	(d) Counties shall increase the budget for each recipient of consumer-directed 
384.12 	community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
384.13 	(e) To implement this section, the commissioner shall increase service rates in the 
384.14 	disability waiver payment system authorized in Minnesota Statutes, sections 256B.4913 
384.15 	and 256B.4914.
384.16 	(f) To receive the rate increase described in this section, providers under paragraphs 
384.17 	(a) and (b) must submit to the commissioner documentation that identifies a quality 
384.18 	improvement project that the provider will implement by June 30, 2015. Documentation 
384.19 	must be provided in a format specified by the commissioner. Projects must:
384.20 	(1) improve the quality of life of home and community-based services recipients in 
384.21 	a meaningful way;
384.22 	(2) improve the quality of services in a measurable way; or
384.23 	(3) deliver good quality service more efficiently while using the savings to enhance 
384.24 	services for the participants served.
384.25 	Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject 
384.26 	to this requirement.
384.27 	(g) For a provider that fails to submit documentation described in paragraph (f) by 
384.28 	a date or in a format specified by the commissioner, the commissioner shall reduce the 
384.29 	provider's rate by one percent effective January 1, 2015.
384.30 	(h) Providers that receive a rate increase under this subdivision shall use 75 percent 
384.31 	of the rate increase to increase compensation-related costs for employees directly 
384.32 	employed by the facility on or after the effective date of the rate adjustments, except:
384.33 	(1) persons employed in the central office of a corporation or entity that has an 
384.34 	ownership interest in the facility or exercises control over the facility; and
384.35 	(2) persons paid by the facility under a management contract.
384.36 	This requirement is subject to audit by the commissioner.
385.1 	(i) Compensation-related costs include:
385.2 	(1) wages and salaries;
385.3 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
385.4 	unemployment taxes, workers' compensation, and mileage reimbursement;
385.5 	(3) the employer's share of health and dental insurance, life insurance, disability 
385.6 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
385.7 	employee retirement accounts; and
385.8 	(4) other benefits provided and workforce needs, including the recruiting and 
385.9 	training of employees as specified in the distribution plan required under paragraph (l).
385.10 	(j) For public employees, the increase for wages and benefits for certain staff is 
385.11 	available and pay rates must be increased only to the extent that the increases comply with 
385.12 	laws governing public employees' collective bargaining. Money received by a provider 
385.13 	for pay increases for public employees under this section may be used only for increases 
385.14 	implemented within one month of the effective date of the rate increase and must not be 
385.15 	used for increases implemented prior to that date.
385.16 	(k) For a provider that has employees that are represented by an exclusive bargaining 
385.17 	representative, the provider shall obtain a letter of acceptance of the distribution plan, in 
385.18 	regard to the members of the bargaining unit, signed by the exclusive bargaining agent. 
385.19 	Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the 
385.20 	requirements of this section in regard to the members of the bargaining unit. The provider 
385.21 	shall produce the letter of acceptance for the commissioner upon request.
385.22 	(l) A provider that receives a rate adjustment under paragraph (b) that is subject to 
385.23 	paragraphs (h) and (i) shall prepare and produce for the commissioner, upon request, a 
385.24 	plan that specifies the amount of money the provider expects to receive that is subject to 
385.25 	the requirements of paragraphs (h) and (i), as well as how that money will be distributed 
385.26 	to increase compensation for employees. The commissioner may recover funds from a 
385.27 	facility that fails to comply with this requirement.
385.28 	(m) Within six months after the effective date of the rate adjustment, the provider 
385.29 	shall post the distribution plan required under paragraph (l) for a period of at least six 
385.30 	weeks in an area of the provider's operation to which all eligible employees have access, 
385.31 	and shall provide instructions for employees who believe they have not received the 
385.32 	wage and other compensation-related increases specified in the distribution plan. These 
385.33 	instructions must include a mailing address, e-mail address, and telephone number that 
385.34 	an employee may use to contact the commissioner or the commissioner's representative. 
385.35 	Providers shall make assurances to the commissioner of compliance with this section 
385.36 	using forms prescribed by the commissioner.

386.1 	Sec. 56. REVISOR'S INSTRUCTION.
 386.2 	(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to 
386.3 	in column A, the revisor of statutes shall delete the word or phrase in column B and 
386.4 	insert the phrase in column C. The revisor shall also make related grammatical changes 
386.5 	and changes in headnotes.

386.6	Column A
	Column B
	Column C
	
386.7
386.8	section 158.13
	defective persons
	persons with developmental 
disabilities
	
386.9386.10
	section 158.14
	defective persons
	persons with developmental 
disabilities
	
386.11
386.12	section 158.17
	defective persons
	persons with developmental 
disabilities
	
386.13
386.14	section 158.18
	persons not defective
	persons without 
developmental disabilities
	
386.15
386.16		defective person
	person with developmental 
disabilities
	
386.17
386.18		defective persons
	persons with developmental 
disabilities
	
386.19
386.20	section 158.19
	defective
	person with developmental 
disabilities
	
386.21
386.22	section 256.94
	defective
	children with developmental 
disabilities and
	
386.23
386.24	section 257.175
	defective
	children with developmental 
disabilities and
	
386.25	part 2911.1350
	retardation
	developmental disability
	
386.26 	(b) The revisor of statutes shall change the term "health and safety" to "health and 
386.27 	welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061, 
386.28 	245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.

386.29 	ARTICLE 30
386.30 	MISCELLANEOUS

386.31 	Section 1. Minnesota Statutes 2013 Supplement, section 16A.724, subdivision 2, 
386.32 	is amended to read:
386.33 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
386.34 	resources in the health care access fund exceed expenditures in that fund, effective for 
386.35 	the biennium beginning July 1, 2007, the commissioner of management and budget shall 
386.36 	transfer the excess funds from the health care access fund to the general fund on June 30 
386.37 	of each year, provided that the amount transferred in any fiscal biennium shall not exceed 
386.38 	$96,000,000. The purpose of this transfer is to meet the rate increase required under Laws 
386.39 	2003, First Special Session chapter 14, article 13C, section 2, subdivision 6.
387.1 	(b) For fiscal years 2006 to 2011 year 2018 and thereafter, MinnesotaCare shall be a 
387.2 	forecasted program, and, if necessary, the commissioner shall reduce these transfers from 
387.3 	the health care access fund to the general fund to meet annual MinnesotaCare expenditures 
387.4 	or, if necessary, transfer sufficient funds from the general fund to the health care access 
387.5 	fund to meet annual MinnesotaCare expenditures.
387.6 	(c) Notwithstanding section 295.581, to the extent available resources in the health 
387.7 	care access fund exceed expenditures in that fund after the transfer required in paragraph 
387.8 	(a), effective for the biennium beginning July 1, 2013, the commissioner of management 
387.9 	and budget shall transfer $1,000,000 each fiscal year from the health access fund to 
387.10 	the medical education and research costs fund established under section 62J.692, for 
387.11 	distribution under section 62J.692, subdivision 4, paragraph (c).

387.12 	Sec. 2. Minnesota Statutes 2012, section 254B.12, is amended to read:
387.13 	254B.12 RATE METHODOLOGY.
387.14 		Subdivision 1.CCDTF rate methodology established. The commissioner shall 
387.15 	establish a new rate methodology for the consolidated chemical dependency treatment 
387.16 	fund. The new methodology must replace county-negotiated rates with a uniform 
387.17 	statewide methodology that must include a graduated reimbursement scale based on the 
387.18 	patients' level of acuity and complexity. At least biennially, the commissioner shall review 
387.19 	the financial information provided by vendors to determine the need for rate adjustments.
387.20 		Subd. 2.Payment methodology for highly specialized vendors. (a) 
387.21 	Notwithstanding subdivision 1, the commissioner shall seek federal authority to develop 
387.22 	a separate payment methodology for chemical dependency treatment services provided 
387.23 	under the consolidated chemical dependency treatment fund for persons who have been 
387.24 	civilly committed to the commissioner, present the most complex and difficult care needs, 
387.25 	and are a potential threat to the community. This payment methodology is effective 
387.26 	for services provided on or after October 1, 2015, or on or after the receipt of federal 
387.27 	approval, whichever is later.
387.28 	(b) Before implementing an approved payment methodology under paragraph 
387.29 	(a), the commissioner must also receive any necessary legislative approval of required 
387.30 	changes to state law or funding.

387.31 	Sec. 3. Minnesota Statutes 2012, section 256I.04, subdivision 2b, is amended to read:
387.32 		Subd. 2b.Group residential housing agreements. (a) Agreements between county 
387.33 	agencies and providers of group residential housing must be in writing and must specify 
387.34 	the name and address under which the establishment subject to the agreement does 
388.1 	business and under which the establishment, or service provider, if different from the 
388.2 	group residential housing establishment, is licensed by the Department of Health or the 
388.3 	Department of Human Services; the specific license or registration from the Department 
388.4 	of Health or the Department of Human Services held by the provider and the number 
388.5 	of beds subject to that license; the address of the location or locations at which group 
388.6 	residential housing is provided under this agreement; the per diem and monthly rates that 
388.7 	are to be paid from group residential housing funds for each eligible resident at each 
388.8 	location; the number of beds at each location which are subject to the group residential 
388.9 	housing agreement; whether the license holder is a not-for-profit corporation under section 
388.10 	501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject to 
388.11 	the provisions of sections 256I.01 to 256I.06 and subject to any changes to those sections. 
388.12 	Group residential housing agreements may be terminated with or without cause by either 
388.13 	the county or the provider with two calendar months prior notice.
388.14 	(b) The commissioner may enter directly into an agreement with a provider serving 
388.15 	veterans who meet the eligibility criteria of this section and reside in a setting according to 
388.16 	subdivision 2a, located in Stearns County. Responsibility for monitoring and oversight of 
388.17 	this setting shall remain with Stearns County. This agreement may be terminated with 
388.18 	or without cause by either the commissioner or the provider with two calendar months 
388.19 	prior notice. This agreement shall be subject to the requirements of county agreements 
388.20 	and negotiated rates in subdivisions 1, paragraphs (a) and (b), and 2, and sections 256I.05, 
388.21 	subdivisions 1 and 1c, and 256I.06, subdivision 7.

388.22 	EFFECTIVE DATE. This section is effective July 1, 2015.

388.23 	Sec. 4. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
388.24 		Subd. 2.Monthly rates; exemptions. The maximum group residential housing rate 
388.25 	does not apply This subdivision applies to a residence that on August 1, 1984, was licensed 
388.26 	by the commissioner of health only as a boarding care home, certified by the commissioner 
388.27 	of health as an intermediate care facility, and licensed by the commissioner of human 
388.28 	services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the 
388.29 	provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision 
388.30 	shall be determined under section 256B.431, or under section 256B.434 if the facility is 
388.31 	accepted by the commissioner for participation in the alternative payment demonstration 
388.32 	project. The rate paid to this facility shall also include adjustments to the group residential 
388.33 	housing rate according to subdivision 1, and any adjustments applicable to supplemental 
388.34 	service rates statewide.

389.1 	Sec. 5. CIVIL COMMITMENT TRAINING PROGRAM.
 389.2 	The commissioner of human services shall develop an online training program for 
389.3 	interested individuals and personnel, specifically county and hospital staff and mental 
389.4 	health providers, to understand, clarify, and interpret the Civil Commitment Act under 
389.5 	Minnesota Statutes, chapter 253B, as it pertains to persons with mental illnesses. The 
389.6 	training must be developed in collaboration with the ombudsman for mental health 
389.7 	and developmental disabilities, Minnesota County Attorneys Association, National 
389.8 	Alliance on Mental Illness of Minnesota, Mental Health Consumer/Survivor Network 
389.9 	of Minnesota, State Advisory Council on Mental Health, Mental Health Association, 
389.10 	Minnesota Psychiatric Society, Hennepin Commitment Defense Panel, Minnesota 
389.11 	Disability Law Center, Minnesota Association of Community Mental Health Programs, 
389.12 	Minnesota Hospital Association, and Minnesota Board of Public Defense. The purpose of 
389.13 	the training is to promote better clarity and interpretation of the civil commitment laws.

389.14 	Sec. 6. DIRECTION TO COMMISSIONER; REPORT ON PROGRAM 
389.15 	WAITING LISTS.
 389.16 	In preparing background materials for the 2016-2017 biennium, the commissioner 
389.17 	of human services shall prepare a listing of all of the waiting lists for services that the 
389.18 	department oversees and directs. The listing shall identify the number of persons on those 
389.19 	waiting lists as of October 1, 2014, an estimate of the cost of serving them based on 
389.20 	current average costs, and an estimate of the number of jobs that would be created given 
389.21 	current average levels of staffing if the waiting list were eliminated. The commissioner 
389.22 	is encouraged to engage postsecondary students in the assembly, analysis, and reporting 
389.23 	of this information. The information shall be provided to the governor, the chairs and 
389.24 	ranking minority members of the legislative committees with jurisdiction over health and 
389.25 	human services policy and finance, and the Legislative Reference Library in electronic 
389.26 	form by December 1, 2014.

389.27 	Sec. 7. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO 
389.28 	ARREST; WORKING GROUP.
 389.29 		Subdivision 1.Working group established; study and draft legislation required.
 389.30 	The commissioner of human services may convene a working group to address issues 
389.31 	related to offenders with mental illness who are arrested or subject to arrest. The working 
389.32 	group shall consider the special needs of these offenders and determine how best to 
389.33 	provide for these needs. Specifically, the group shall consider the efficacy of a facility 
389.34 	that would serve as a central point for accepting, assessing, and addressing the needs of 
390.1 	offenders with mental illness brought in by law enforcement as an alternative to arrest or 
390.2 	following arrest. The facility would consolidate and coordinate existing resources as well 
390.3 	as offer new resources that would provide a continuum of care addressing the immediate, 
390.4 	short-term, and long-term needs of these offenders. The facility would do the following for 
390.5 	these offenders: perform timely, credible, and useful mental health assessments; identify 
390.6 	community placement opportunities; coordinate community care; make recommendations 
390.7 	concerning pretrial release when appropriate; and, in some cases, provide direct services 
390.8 	to offenders at the facility or in nearby jails. The working group shall establish criteria 
390.9 	to determine which offenders may be admitted to the facility. The facility would be 
390.10 	located in the metropolitan region and serve the needs of nearby counties. The facility 
390.11 	would represent a partnership between the state, local units of government, and the private 
390.12 	sector. In addition, the working group may consider how similar facilities could function 
390.13 	in outstate areas. When studying this issue, the working group shall examine what other 
390.14 	states have done in this area to determine what programs have been successful and use 
390.15 	those programs as models in developing the program in Minnesota. The working group 
390.16 	may also study and make recommendations on other ways to improve the process for 
390.17 	addressing and assisting these offenders. The commissioner shall enter into an agreement 
390.18 	with NAMI Minnesota to carry out the work of the working group.
390.19 		Subd. 2.Membership. The commissioner shall ensure that the working group 
390.20 	has expertise and a broad range of interests represented, including, but not limited to: 
390.21 	prosecutors; law enforcement, including jail staff; correctional officials; probation 
390.22 	officials; criminal defense attorneys; judges; county and city officials; mental health 
390.23 	advocates; mental health professionals; and hospital and health care officials.
390.24 		Subd. 3.Administrative issues. (a) The commissioner shall convene the first 
390.25 	meeting of the working group by September 1, 2014. NAMI Minnesota shall provide 
390.26 	meeting space and administrative support to the working group. The working group shall 
390.27 	select a chair from among its members.
390.28 	(b) The commissioner may solicit in-kind support from work group member 
390.29 	agencies to accomplish its assigned duties.
390.30 		Subd. 4.Report required. By January 1, 2015, the working group shall submit a 
390.31 	report to the chairs and ranking minority members of the senate and house of representatives 
390.32 	committees and divisions having jurisdiction over human services and public safety. The 
390.33 	report must summarize the working group's activities and include its recommendations 
390.34 	and draft legislation. The recommendations must be specific and include estimates of the 
390.35 	costs involved in implementing the recommendations, including the funding sources that 
390.36 	might be used to pay for it. The working group shall explore potential funding sources 
391.1 	at the federal, local, and private levels, and provide this information in the report. In 
391.2 	addition, the report must include draft legislation to implement the recommendations.

391.3 	Sec. 8. RECOMMENDATIONS; DRAFT LEGISLATION; IMPLEMENTATION 
391.4 	PLAN; UNIFORM PUBLIC ASSISTANCE PROGRAM ELIGIBILITY.
 391.5 	The commissioner of human services, in consultation with counties, tribes, and 
391.6 	program participants, shall prepare draft legislation to implement uniform public 
391.7 	assistance program eligibility and verification for the following programs: general 
391.8 	assistance under Minnesota Statutes, chapter 256D; Minnesota supplemental aid under 
391.9 	Minnesota Statutes, chapter 256D; group residential housing under Minnesota Statutes, 
391.10 	chapter 256I; and the Minnesota family investment program under Minnesota Statutes, 
391.11 	chapter 256J. In order to provide further uniformity and simplification of assistance 
391.12 	programs under Minnesota Statutes, chapters 256D, 256I, and 256J, the commissioner 
391.13 	of human services, in consultation with counties, tribes, and program participants, may 
391.14 	prepare legislation to plan for the implementation of prospective budgeting, three-month 
391.15 	reporting, uniform reporting, and budgeting standards. The commissioner may provide 
391.16 	recommendations and a plan for implementation to the legislative committees with 
391.17 	jurisdiction over health and human services policy and finance.

391.18 	Sec. 9. DETOXIFICATION SERVICES; INSTRUCTIONS TO THE 
391.19 	COMMISSIONER.
 391.20 	The commissioner of human services shall develop a plan to include detoxification 
391.21 	services as a covered medical assistance benefit and present the plan to the legislature 
391.22 	by December 15, 2014.

391.23 	ARTICLE 31
391.24 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

391.25	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
391.26 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
391.27 	in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14 
391.28 	and 15, to the agencies and for the purposes specified in this article. The appropriations 
391.29 	are from the general fund and are available for the fiscal years indicated for each purpose. 
391.30 	The figures "2014" and "2015" used in this article mean that the addition to or subtraction 
391.31 	from the appropriation listed under them is available for the fiscal year ending June 30, 
391.32 	2014, or June 30, 2015, respectively. Supplemental appropriations and reductions to 
392.1 	appropriations for the fiscal year ending June 30, 2014, are effective the day following 
392.2 	final enactment unless a different effective date is explicit.

392.3				APPROPRIATIONS
	
392.4				Available for the Year
	
392.5				Ending June 30
	
392.6					2014
		2015

392.7
392.8	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

392.9	Subdivision 1.Total Appropriation
 		(1,073,000)
		91,753,000

392.10	Appropriations by Fund
	
392.11	General
	(1,073,000)
	89,406,000
	
392.12	Federal TANF
	-0-
	 2,347,000
	
392.13 	The appropriation modifications for 
392.14 	each purpose are shown in the following 
392.15 	subdivisions.

392.16	Subd. 2.Central Office Operations

392.17	(a) Operations
		-0-
		 63,000
	
392.18 	Base adjustment. The general fund base is 
392.19 	decreased by $6,000 in fiscal years 2016 and 
392.20 	2017.

392.21	(b) Health Care
		-0-
		 113,000
	
392.22 	Base adjustment. The general fund base is 
392.23 	increased by $108,000 in fiscal years 2016 
392.24 	and 2017.

392.25	(c) Continuing Care
		-0-
		1,084,000
	
392.26 	Base adjustment. The general fund base is 
392.27 	increased by $156,000 in fiscal year 2016 
392.28 	and $19,000 in fiscal year 2017.

392.29	(d) Chemical and Mental Health
		-0-
		115,000

392.30	Subd. 3.Forecasted Programs

392.31	(a) MFIP/DWP

393.1	Appropriations by Fund
	
393.2	General
	-0-
	122,000
	
393.3	Federal TANF
	-0-
	 1,995,000

								

393.4	(b) Group Residential Housing
		-0-
		681,000

393.5	(c) Medical Assistance
		(1,058,000)
		80,827,000

393.6	(d) Alternative Care
		-0-
		965,000

393.7	Subd. 4.Grant Programs

393.8	(a) Children's Services Grants
		-0-
		(3,000)
	
393.9 	Base adjustment. The general fund base is 
393.10 	increased by $9,000 in fiscal year 2017.

393.11	(b) Child and Economic Support Grants
		-0-
		1,669,000
	
393.12 	Safe harbor.  $569,000 in fiscal year 2015 
393.13 	from the general fund is for housing and 
393.14 	supportive services for sexually exploited 
393.15 	youth.
393.16 	Homeless youth.  $1,100,000 in fiscal year 
393.17 	2015 is for purposes of Minnesota Statutes, 
393.18 	section 256K.45.

393.19	(c) Aging and Adult Services Grants
		(15,000)
		1,541,000
	
393.20 	Senior nutrition. $579,000 in fiscal year 
393.21 	2015 from the general fund is for congregate 
393.22 	dining services under Minnesota Statutes, 
393.23 	section 256.9752.
393.24 	Base adjustment. The general fund base is 
393.25 	decreased by $429,000 in fiscal year 2016 
393.26 	and $419,000 in fiscal year 2017.

393.27	(d) Deaf and Hard-of-Hearing Grants
		-0-
		81,000
	
393.28 	Base adjustment. The general fund base is 
393.29 	increased by $6,000 in fiscal years 2016 and 
393.30 	2017.

394.1	(e) Disabilities Grants
		-0-
		1,267,000
	
394.2 	Base adjustment. The general fund base is 
394.3 	increased by $224,000 in fiscal year 2016 
394.4 	and $233,000 in fiscal year 2017.

394.5	Subd. 5.State-Operated Services

394.6	(a) SOS Mental Health
		-0-
		881,000
	
394.7 	Civil commitments. $35,000 in fiscal year 
394.8 	2015 is for developing an online training 
394.9 	program to help interested parties understand 
394.10 	the civil commitment process.
394.11 	Base adjustment. The general fund base is 
394.12 	increased by $213,000 in fiscal years 2016 
394.13 	and 2017.

394.14	(b) SOS Enterprise Services
		-0-
		-0-
	
394.15 	Community Addiction Recovery 
394.16 	Enterprise deficiency funding.
394.17 	Notwithstanding Minnesota Statutes, section 
394.18 	254B.06, subdivision 1, $4,000,000 is 
394.19 	transferred in fiscal years 2014 and 2015 
394.20 	from the consolidated chemical dependency 
394.21 	treatment fund administrative account in the 
394.22 	special revenue fund and deposited into the 
394.23 	enterprise fund for the Community Addiction 
394.24 	Recovery Enterprise. This clause is effective 
394.25 	the day following final enactment.

394.26	Subd. 6.Technical Activities

394.27	MFIP Child Care Assistance

394.28	Appropriations by Fund
	
394.29	Federal TANF
	-0-
	352,000

394.30	Sec. 3. COMMISSIONER OF HEALTH.

394.31	Subdivision 1.Total Appropriation
 	$
	967,000
	$
	1,801,000

395.1	Appropriations by Fund
	
395.2		2014
	2015
	
395.3	General
	1,150,000
	1,994,000
	
395.4
395.5	State Government 
Special Revenue
	817,000
	 807,000
	
395.6	Health Care Access
	(1,000,000)
	(1,000,000)

395.7	Subd. 2.Health Improvement

395.8	Appropriations by Fund
	
395.9	General
	75,000
	1,819,000
	
395.10 	Poison information centers. $750,000 
395.11 	in fiscal year 2015 from the general fund 
395.12 	is for regional poison information centers 
395.13 	under Minnesota Statutes, section 145.93, 
395.14 	and is added to the base. The appropriation 
395.15 	is (1) to enhance staffing to meet national 
395.16 	accreditation standards; (2) for health care 
395.17 	provider education and training; (3) for 
395.18 	surveillance of emerging toxicology and 
395.19 	poison issues; and (4) to cooperate with local 
395.20 	public health officials on outreach efforts.
395.21 	Minority health disparity grants. $100,000 
395.22 	in fiscal year 2014 and $475,000 in fiscal 
395.23 	year 2015 are for the commissioner of health 
395.24 	to begin implementing recommendations of 
395.25 	the health equity report under Laws 2013, 
395.26 	chapter 108, article 12, section 102. This 
395.27 	funding is onetime and shall not become part 
395.28 	of base funding. Funds must be distributed 
395.29 	as follows:
395.30 	(1) $100,000 in fiscal year 2014 and 
395.31 	$100,000 in fiscal year 2015 are for dementia 
395.32 	outreach education and training grants 
395.33 	targeting minority communities under article 
395.34 	25, section 7;
396.1 	(2) $75,000 in fiscal year 2015 is for planning 
396.2 	and conducting a training conference on 
396.3 	immigrant and refugee mental health issues. 
396.4 	The conference shall include an emphasis 
396.5 	on mental health concerns in the Somali 
396.6 	community. Conference planning shall 
396.7 	include input from the Somali community 
396.8 	and other stakeholders. This is a onetime 
396.9 	appropriation;
396.10 	(3) up to $150,000 in fiscal year 2015 is 
396.11 	for additional grants, including but not 
396.12 	limited to a grant to a Somali women-led 
396.13 	health care agency. Grantees must use 
396.14 	community-based, participatory research to 
396.15 	address health inequities and provide services 
396.16 	through culturally specific, minority-centered 
396.17 	programs; and
396.18 	(4) remaining funds shall be used for 
396.19 	redesigning agency grant making to advance 
396.20 	health equity, ensuring that health equity and 
396.21 	the analysis of structural inequities become 
396.22 	integral aspects of all agency divisions and 
396.23 	programs, and awarding additional grants to 
396.24 	address health equity issues.
396.25 	Safe harbor. $569,000 in fiscal year 
396.26 	2015 from the general fund is for grants 
396.27 	for comprehensive services, including 
396.28 	trauma-informed, culturally specific 
396.29 	services, for sexually exploited youth. The 
396.30 	commissioner shall use no more than 6.67 
396.31 	percent of these funds for administration of 
396.32 	the grants.
396.33 	Base level adjustment. The general fund 
396.34 	base for fiscal year 2016 is $47,619,000. 
397.1 	The general fund base for fiscal year 2017 
397.2 	is $47,669,000.

397.3	Subd. 3.Policy Quality and Compliance

397.4	Appropriations by Fund
	
397.5	General
	-0-
	75,000
	
397.6
397.7	State Government 
Special Revenue
	-0-
	 143,000
	
397.8	Health Care Access
	(1,000,000)
	(1,000,000)
	
397.9 	Legislative health care workforce 
397.10 	commission. $75,000 in fiscal year 2015 is 
397.11 	for the health care workforce commission 
397.12 	in article 25, section 6. This is a onetime 
397.13 	appropriation.
397.14 	Spoken language health care interpreters. 
397.15 	$81,000 in fiscal year 2015 from the state 
397.16 	government special revenue fund is to 
397.17 	develop a proposal to promote health equity 
397.18 	and quality health outcomes through changes 
397.19 	to laws governing spoken language health 
397.20 	care interpreters.  The commissioner shall 
397.21 	consult with spoken language health care 
397.22 	interpreters, organizations that employ 
397.23 	these interpreters, organizations that pay for 
397.24 	interpreter services, health care providers 
397.25 	who use interpreters, clients who use 
397.26 	interpreters, and community organizations 
397.27 	serving non-English speaking populations.  
397.28 	The commissioner shall draft legislation 
397.29 	and submit a report that documents the 
397.30 	process followed and the rationale for 
397.31 	the recommendations to the committees 
397.32 	with jurisdiction over health and human 
397.33 	services by January 15, 2015.  In drafting the 
397.34 	legislation and report, the commissioner must 
397.35 	consider input received from individuals and 
398.1 	organizations consulted and must address 
398.2 	issues related to:
398.3 	(1) qualifications for spoken language health 
398.4 	care interpreters that assure quality service to 
398.5 	health care providers and their patients;
398.6 	(2) methods to support the education and 
398.7 	skills development of spoken language health 
398.8 	care interpreters serving Minnesotans;
398.9 	(3) the role of an advisory council in 
398.10 	maintaining a quality system for spoken 
398.11 	language health care interpreting in 
398.12 	Minnesota;
398.13 	(4) management of complaints regarding 
398.14 	spoken language health care interpreters, 
398.15 	including investigation and enforcement 
398.16 	actions;
398.17 	(5) an appropriate structure for oversight of 
398.18 	spoken language health care interpreters, 
398.19 	including administrative and technology 
398.20 	requirements; and
398.21 	(6) other issues that address qualifications, 
398.22 	quality, access, and affordability of spoken 
398.23 	language interpreter services.
398.24 	This is a onetime appropriation.
398.25 	Base level adjustment. The state 
398.26 	government special revenue fund base 
398.27 	for fiscal years 2016 and 2017 shall be 
398.28 	$16,529,000.

398.29	Subd. 4.Health Protection

398.30	Appropriations by Fund
	
398.31	General
	100,000
	100,000
	
398.32
398.33	State Government 
Special Revenue
	817,000
	648,000
	
399.1 	Healthy housing. $100,000 in fiscal years 
399.2 	2014 and 2015 from the general fund are 
399.3 	for education and training grants under 
399.4 	Minnesota Statutes, section 144.9513, 
399.5 	subdivision 3, and are added to the base.

399.6	Subd. 5.Administrative Support Services
 		975,000
		16,000

399.7	Appropriations by Fund
	
399.8	General
	975,000
	-0-
	
399.9399.10
	State Government 
Special Revenue
	-0-
	16,000
	
399.11 	Lawsuit settlement. In fiscal year 2014, 
399.12 	$975,000 from the general fund is a onetime 
399.13 	appropriation for the cost of settling the 
399.14 	lawsuit Bearder v. State.

399.15
399.16
399.17	Sec. 4. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES
 	$
	100,000
	$
	100,000

399.18 	Sec. 5. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108, 
399.19 	article 6, section 32, is amended to read:
399.20 	Sec. 6. TRANSFER.
 399.21 	(a) The commissioner of management and budget shall transfer from the health care 
399.22 	access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000 
399.23 	in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal 
399.24 	year 2017.
399.25 	(b) The commissioner of human services shall determine the difference between the 
399.26 	actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds 
399.27 	and parents and relative caretaker populations with income between 100 and 138 percent of 
399.28 	the federal poverty guidelines and the cost of adding those populations that was estimated 
399.29 	during the 2013 legislative session based on the data from the February 2013 forecast.
399.30 	(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall 
399.31 	certify and report to the commissioner of management and budget the actual or forecasted
399.32 	 estimated  cost difference of adding 19- and 20-year-olds and parents and relative caretaker 
399.33 	populations with income between 100 and 138 percent of the federal poverty guidelines, 
399.34 	as determined under paragraph (b), to the commissioner of management and budget at 
400.1 	least four weeks prior to the release of a forecast under Minnesota Statutes, section 
400.2 	16A.103, of each fiscal year.
400.3 	(d) No later than three weeks before the release of the forecast For fiscal years 2014 to 
400.4 	2017, forecasts  under Minnesota Statutes, section 16A.103, prepared by the commissioner 
400.5 	of management and budget shall reduce the include actual or estimated adjustments to 
400.6 	health care access fund transfer transfers  in paragraph (a), by the cumulative differences in 
400.7 	costs reported by the commissioner of human services under according to  paragraph (c)
400.8 	 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under 
400.9 	paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year, 
400.10 	the amount of the cumulative cost differences determined under paragraph (b) is less than 
400.11 	the amount of the original appropriation, the appropriation for that year must be zero.
400.12 	(e) For each fiscal year from 2014 to 2017, the commissioner of management and 
400.13 	budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in 
400.14 	costs reported by the commissioner of human services under paragraph (c). If, for any 
400.15 	fiscal year, the amount of the cumulative difference in costs reported under paragraph (c) 
400.16 	is positive, no adjustment shall be made.

400.17 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

400.18 	Sec. 6. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:

400.19	Subd. 5.Forecasted Programs
 					
400.20 	The amounts that may be spent from this 
400.21 	appropriation for each purpose are as follows:

400.22	(a) MFIP/DWP

400.23	Appropriations by Fund
	
400.24	General
	72,583,000
	76,927,000
	
400.25	Federal TANF
	80,342,000
	76,851,000

400.26	(b) MFIP Child Care Assistance
		61,701,000
		69,294,000

400.27	(c) General Assistance
		54,787,000
		56,068,000
	
400.28 	General Assistance Standard. The 
400.29 	commissioner shall set the monthly standard 
400.30 	of assistance for general assistance units 
400.31 	consisting of an adult recipient who is 
400.32 	childless and unmarried or living apart 
400.33 	from parents or a legal guardian at $203. 
401.1 	The commissioner may reduce this amount 
401.2 	according to Laws 1997, chapter 85, article 
401.3 	3, section 54.
401.4 	Emergency General Assistance. The 
401.5 	amount appropriated for emergency general 
401.6 	assistance funds is limited to no more 
401.7 	than $6,729,812 in fiscal year 2014 and 
401.8 	$6,729,812 in fiscal year 2015. Funds 
401.9 	to counties shall be allocated by the 
401.10 	commissioner using the allocation method in 
401.11 	Minnesota Statutes, section 256D.06.

401.12	(d) MN Supplemental Assistance
		38,646,000
		39,821,000

401.13	(e) Group Residential Housing
		141,138,000
		150,988,000

401.14	(f) MinnesotaCare
		297,707,000
		247,284,000
	
401.15 	This appropriation is from the health care 
401.16 	access fund.

401.17	(g) Medical Assistance

401.18	Appropriations by Fund
	
401.19	General
	4,443,768,000
	4,431,612,000
	
401.20	Health Care Access
	179,550,000
	226,081,000
	
401.21 	Base Adjustment. The health care access 
401.22 	fund base is $221,035,000 in fiscal year 2016 
401.23 	and $221,035,000 in fiscal year 2017.
401.24 	Spending to be apportioned. The 
401.25 	commissioner shall apportion expenditures 
401.26 	under this paragraph consistent with the 
401.27 	requirements of section 12.
401.28 	Support Services for Deaf and 
401.29 	Hard-of-Hearing. $121,000 in fiscal 
401.30 	year 2014 and $141,000 in fiscal year 2015; 
401.31 	and $10,000 in fiscal year 2014 and $13,000 
401.32 	in fiscal year 2015 are from the health care 
401.33 	access fund for the hospital reimbursement 
402.1 	increase in Minnesota Statutes, section 
402.2 	256.969, subdivision 29, paragraph (b).
402.3 	Disproportionate Share Payments.
402.4 	Effective for services provided on or after 
402.5 	July 1, 2011, through June 30, 2015, the 
402.6 	commissioner of human services shall 
402.7 	deposit, in the health care access fund, 
402.8 	additional federal matching funds received 
402.9 	under Minnesota Statutes, section 256B.199, 
402.10 	paragraph (e), as disproportionate share 
402.11 	hospital payments for inpatient hospital 
402.12 	services provided under MinnesotaCare to 
402.13 	lawfully present noncitizens who are not 
402.14 	eligible for MinnesotaCare with federal 
402.15 	financial participation due to immigration 
402.16 	status. The amount deposited shall not exceed 
402.17 	$2,200,000 for the time period specified.
402.18 	Funding for Services Provided to EMA 
402.19 	Recipients. $2,200,000 in fiscal year 2014 is 
402.20 	from the health care access fund to provide 
402.21 	services to emergency medical assistance 
402.22 	recipients under Minnesota Statutes, section 
402.23 	256B.06, subdivision 4, paragraph (l). This 
402.24 	is a onetime appropriation and is available in 
402.25 	either year of the biennium.

402.26	(h) Alternative Care
		50,776,000
		54,922,000
	
402.27 	Alternative Care Transfer. Any money 
402.28 	allocated to the alternative care program that 
402.29 	is not spent for the purposes indicated does 
402.30 	not cancel but shall be transferred to the 
402.31 	medical assistance account.

402.32	(i) CD Treatment Fund
		81,440,000
		74,875,000
	
402.33 	Balance Transfer. The commissioner must 
402.34 	transfer $18,188,000 from the consolidated 
403.1 	chemical dependency treatment fund to the 
403.2 	general fund by September 30, 2013.

403.3 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

403.4 	Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 
403.5 	Laws 2013, chapter 144, section 25, is amended to read:

403.6	Subd. 6.Grant Programs
 					
403.7 	The amounts that may be spent from this 
403.8 	appropriation for each purpose are as follows:

403.9	(a) Support Services Grants

403.10	Appropriations by Fund
	
403.11	General
	8,915,000
	13,333,000
	
403.12	Federal TANF
	94,611,000
	94,611,000
	
403.13 	Paid Work Experience. $2,168,000 
403.14 	each year in fiscal years 2015 and 2016 
403.15 	is from the general fund for paid work 
403.16 	experience for long-term MFIP recipients. 
403.17 	Paid work includes full and partial wage 
403.18 	subsidies and other related services such as 
403.19 	job development, marketing, preworksite 
403.20 	training, job coaching, and postplacement 
403.21 	services. These are onetime appropriations. 
403.22 	Unexpended funds for fiscal year 2015 do not 
403.23 	cancel, but are available to the commissioner 
403.24 	for this purpose in fiscal year 2016.
403.25 	Work Study Funding for MFIP 
403.26 	Participants. $250,000 each year in fiscal 
403.27 	years 2015 and 2016 is from the general fund 
403.28 	to pilot work study jobs for MFIP recipients 
403.29 	in approved postsecondary education 
403.30 	programs. This is a onetime appropriation. 
403.31 	Unexpended funds for fiscal year 2015 do 
403.32 	not cancel, but are available for this purpose 
403.33 	in fiscal year 2016.
404.1 	Local Strategies to Reduce Disparities.
404.2 	$2,000,000 each year in fiscal years 2015 
404.3 	and 2016 is from the general fund for 
404.4 	local projects that focus on services for 
404.5 	subgroups within the MFIP caseload 
404.6 	who are experiencing poor employment 
404.7 	outcomes. These are onetime appropriations. 
404.8 	Unexpended funds for fiscal year 2015 do not 
404.9 	cancel, but are available to the commissioner 
404.10 	for this purpose in fiscal year 2016.
404.11 	Home Visiting Collaborations for MFIP 
404.12 	Teen Parents. $200,000 per year in fiscal 
404.13 	years 2014 and 2015 is from the general fund 
404.14 	and $200,000 in fiscal year 2016 is from the 
404.15 	federal TANF fund for technical assistance 
404.16 	and training to support local collaborations 
404.17 	that provide home visiting services for 
404.18 	MFIP teen parents. The general fund 
404.19 	appropriation is onetime. The federal TANF 
404.20 	fund appropriation is added to the base.
404.21 	Performance Bonus Funds for Counties.
404.22 	The TANF fund base is increased by 
404.23 	$1,500,000 each year in fiscal years 2016 
404.24 	and 2017. The commissioner must allocate 
404.25 	this amount each year to counties that exceed 
404.26 	their expected range of performance on the 
404.27 	annualized three-year self-support index 
404.28 	as defined in Minnesota Statutes, section 
404.29 	256J.751, subdivision 2, clause (6). This is a 
404.30 	permanent base adjustment. Notwithstanding 
404.31 	any contrary provisions in this article, this 
404.32 	provision expires June 30, 2016.
404.33 	Base Adjustment. The general fund base is 
404.34 	decreased by $200,000 in fiscal year 2016 
404.35 	and $4,618,000 in fiscal year 2017. The 
405.1 	TANF fund base is increased by $1,700,000 
405.2 	in fiscal years 2016 and 2017.

405.3
405.4	(b) Basic Sliding Fee Child Care Assistance 
Grants
		36,836,000
		42,318,000
	
405.5 	Base Adjustment. The general fund base is 
405.6 	increased by $3,778,000 in fiscal year 2016 
405.7 	and by $3,849,000 in fiscal year 2017.

405.8	(c) Child Care Development Grants
		1,612,000
		1,737,000

405.9	(d) Child Support Enforcement Grants
		50,000
		50,000
	
405.10 	Federal Child Support Demonstration 
405.11 	Grants. Federal administrative 
405.12 	reimbursement resulting from the federal 
405.13 	child support grant expenditures authorized 
405.14 	under United States Code, title 42, section 
405.15 	1315, is appropriated to the commissioner 
405.16 	for this activity.

405.17	(e) Children's Services Grants

405.18	Appropriations by Fund
	
405.19	General
	49,760,000
	52,961,000
	
405.20	Federal TANF
	140,000
	140,000
	
405.21 	Adoption Assistance and Relative Custody 
405.22 	Assistance.$37,453,000 $36,456,000
405.23 	 in fiscal year 2014 and $37,453,000
405.24 	 $36,855,000 in fiscal year 2015 is for the 
405.25 	adoption assistance and relative custody 
405.26 	assistance programs. The commissioner 
405.27 	shall determine with the commissioner of 
405.28 	Minnesota Management and Budget the 
405.29 	appropriation for Northstar Care for Children 
405.30 	effective January 1, 2015. The commissioner 
405.31 	may transfer appropriations for adoption 
405.32 	assistance, relative custody assistance, and 
405.33 	Northstar Care for Children between fiscal 
405.34 	years and among programs to adjust for 
405.35 	transfers across the programs.
406.1 	Title IV-E Adoption Assistance. Additional 
406.2 	federal reimbursements to the state as a result 
406.3 	of the Fostering Connections to Success 
406.4 	and Increasing Adoptions Act's expanded 
406.5 	eligibility for Title IV-E adoption assistance 
406.6 	are appropriated for postadoption services, 
406.7 	including a parent-to-parent support network.
406.8 	Privatized Adoption Grants. Federal 
406.9 	reimbursement for privatized adoption grant 
406.10 	and foster care recruitment grant expenditures 
406.11 	is appropriated to the commissioner for 
406.12 	adoption grants and foster care and adoption 
406.13 	administrative purposes.
406.14 	Adoption Assistance Incentive Grants.
406.15 	Federal funds available during fiscal years 
406.16 	2014 and 2015 for adoption incentive grants 
406.17 	are appropriated for postadoption services, 
406.18 	including a parent-to-parent support network.
406.19 	Base Adjustment. The general fund base is 
406.20 	increased by $5,913,000 in fiscal year 2016 
406.21 	and by $10,297,000 in fiscal year 2017.

406.22	(f) Child and Community Service Grants
		53,301,000
		53,301,000

406.23	(g) Child and Economic Support Grants
		21,047,000
		20,848,000
	
406.24 	Minnesota Food Assistance Program. 
406.25 	Unexpended funds for the Minnesota food 
406.26 	assistance program for fiscal year 2014 do 
406.27 	not cancel but are available for this purpose 
406.28 	in fiscal year 2015.
406.29 	Transitional Housing. $250,000 each year 
406.30 	is for the transitional housing programs under 
406.31 	Minnesota Statutes, section 256E.33.
406.32 	Emergency Services. $250,000 each year 
406.33 	is for emergency services grants under 
406.34 	Minnesota Statutes, section 256E.36.
407.1 	Family Assets for Independence. $250,000 
407.2 	each year is for the Family Assets for 
407.3 	Independence Minnesota program. This 
407.4 	appropriation is available in either year of the 
407.5 	biennium and may be transferred between 
407.6 	fiscal years.
407.7 	Food Shelf Programs. $375,000 in fiscal 
407.8 	year 2014 and $375,000 in fiscal year 
407.9 	2015 are for food shelf programs under 
407.10 	Minnesota Statutes, section 256E.34. If the 
407.11 	appropriation for either year is insufficient, 
407.12 	the appropriation for the other year is 
407.13 	available for it. Notwithstanding Minnesota 
407.14 	Statutes, section 256E.34, subdivision 4, no 
407.15 	portion of this appropriation may be used 
407.16 	by Hunger Solutions for its administrative 
407.17 	expenses, including but not limited to rent 
407.18 	and salaries.
407.19 	Homeless Youth Act. $2,000,000 in fiscal 
407.20 	year 2014 and $2,000,000 in fiscal year 2015 
407.21 	is for purposes of Minnesota Statutes, section 
407.22 	256K.45.
407.23 	Safe Harbor Shelter and Housing. 
407.24 	$500,000 in fiscal year 2014 and $500,000 in 
407.25 	fiscal year 2015 is for a safe harbor shelter 
407.26 	and housing fund for housing and supportive 
407.27 	services for youth who are sexually exploited.
407.28 	High-risk adults. $200,000 in fiscal 
407.29 	year 2014 is for a grant to the nonprofit 
407.30 	organization selected to administer the 
407.31 	demonstration project for high-risk adults 
407.32 	under Laws 2007, chapter 54, article 1, 
407.33 	section 19, in order to complete the project. 
407.34 	This is a onetime appropriation.

407.35	(h) Health Care Grants

408.1	Appropriations by Fund
	
408.2	General
	190,000
	190,000
	
408.3	Health Care Access
	190,000
	190,000
	
408.4 	Emergency Medical Assistance Referral 
408.5 	and Assistance Grants. (a) The 
408.6 	commissioner of human services shall 
408.7 	award grants to nonprofit programs that 
408.8 	provide immigration legal services based 
408.9 	on indigency to provide legal services for 
408.10 	immigration assistance to individuals with 
408.11 	emergency medical conditions or complex 
408.12 	and chronic health conditions who are not 
408.13 	currently eligible for medical assistance 
408.14 	or other public health care programs, but 
408.15 	who may meet eligibility requirements with 
408.16 	immigration assistance.
408.17 	(b) The grantees, in collaboration with 
408.18 	hospitals and safety net providers, shall 
408.19 	provide referral assistance to connect 
408.20 	individuals identified in paragraph (a) with 
408.21 	alternative resources and services to assist in 
408.22 	meeting their health care needs. $100,000 
408.23 	is appropriated in fiscal year 2014 and 
408.24 	$100,000 in fiscal year 2015. This is a 
408.25 	onetime appropriation.
408.26 	Base Adjustment. The general fund is 
408.27 	decreased by $100,000 in fiscal year 2016 
408.28 	and $100,000 in fiscal year 2017.

408.29	(i) Aging and Adult Services Grants
		14,827,000
		15,010,000
	
408.30 	Base Adjustment. The general fund is 
408.31 	increased by $1,150,000 in fiscal year 2016 
408.32 	and $1,151,000 in fiscal year 2017.
408.33 	Community Service Development 
408.34 	Grants and Community Services Grants.
408.35 	Community service development grants and 
409.1 	community services grants are reduced by 
409.2 	$1,150,000 each year. This is a onetime 
409.3 	reduction.

409.4	(j) Deaf and Hard-of-Hearing Grants
		1,771,000
		1,785,000

409.5	(k) Disabilities Grants
		18,605,000
		18,823,000
	
409.6 	Advocating Change Together. $310,000 in 
409.7 	fiscal year 2014 is for a grant to Advocating 
409.8 	Change Together (ACT) to maintain and 
409.9 	promote services for persons with intellectual 
409.10 	and developmental disabilities throughout 
409.11 	the state. This appropriation is onetime. Of 
409.12 	this appropriation:
409.13 	(1) $120,000 is for direct costs associated 
409.14 	with the delivery and evaluation of 
409.15 	peer-to-peer training programs administered 
409.16 	throughout the state, focusing on education, 
409.17 	employment, housing, transportation, and 
409.18 	voting;
409.19 	(2) $100,000 is for delivery of statewide 
409.20 	conferences focusing on leadership and 
409.21 	skill development within the disability 
409.22 	community; and
409.23 	(3) $90,000 is for administrative and general 
409.24 	operating costs associated with managing 
409.25 	or maintaining facilities, program delivery, 
409.26 	staff, and technology.
409.27 	Base Adjustment. The general fund base 
409.28 	is increased by $535,000 in fiscal year 2016 
409.29 	and by $709,000 in fiscal year 2017.

409.30	(l) Adult Mental Health Grants

409.31	Appropriations by Fund
	
409.32	General
	71,199,000
	69,530,000
	
409.33	Health Care Access
	750,000
	750,000
	
409.34	Lottery Prize
	1,733,000
	1,733,000
	
410.1 	Compulsive Gambling Treatment. Of the 
410.2 	general fund appropriation, $602,000 in 
410.3 	fiscal year 2014 and $747,000 in fiscal year 
410.4 	2015 are for compulsive gambling treatment 
410.5 	under Minnesota Statutes, section 297E.02, 
410.6 	subdivision 3, paragraph (c).
410.7 	Problem Gambling. $225,000 in fiscal year 
410.8 	2014 and $225,000 in fiscal year 2015 is 
410.9 	appropriated from the lottery prize fund for a 
410.10 	grant to the state affiliate recognized by the 
410.11 	National Council on Problem Gambling. The 
410.12 	affiliate must provide services to increase 
410.13 	public awareness of problem gambling, 
410.14 	education and training for individuals and 
410.15 	organizations providing effective treatment 
410.16 	services to problem gamblers and their 
410.17 	families, and research relating to problem 
410.18 	gambling.
410.19 	Funding Usage. Up to 75 percent of a fiscal 
410.20 	year's appropriations for adult mental health 
410.21 	grants may be used to fund allocations in that 
410.22 	portion of the fiscal year ending December 
410.23 	31.
410.24 	Base Adjustment. The general fund base is 
410.25 	decreased by $4,427,000 in fiscal years 2016 
410.26 	and 2017.
410.27 	Mental Health Pilot Project. $230,000 
410.28 	each year is for a grant to the Zumbro 
410.29 	Valley Mental Health Center. The grant 
410.30 	shall be used to implement a pilot project 
410.31 	to test an integrated behavioral health care 
410.32 	coordination model. The grant recipient must 
410.33 	report measurable outcomes and savings 
410.34 	to the commissioner of human services 
411.1 	by January 15, 2016. This is a onetime 
411.2 	appropriation.
411.3 	High-risk adults. $200,000 in fiscal 
411.4 	year 2014 is for a grant to the nonprofit 
411.5 	organization selected to administer the 
411.6 	demonstration project for high-risk adults 
411.7 	under Laws 2007, chapter 54, article 1, 
411.8 	section 19, in order to complete the project. 
411.9 	This is a onetime appropriation.

411.10	(m) Child Mental Health Grants
		18,246,000
		20,636,000
	
411.11 	Text Message Suicide Prevention 
411.12 	Program. $625,000 in fiscal year 2014 and 
411.13 	$625,000 in fiscal year 2015 is for a grant 
411.14 	to a nonprofit organization to establish and 
411.15 	implement a statewide text message suicide 
411.16 	prevention program. The program shall 
411.17 	implement a suicide prevention counseling 
411.18 	text line designed to use text messaging to 
411.19 	connect with crisis counselors and to obtain 
411.20 	emergency information and referrals to 
411.21 	local resources in the local community. The 
411.22 	program shall include training within schools 
411.23 	and communities to encourage the use of the 
411.24 	program.
411.25 	Mental Health First Aid Training. $22,000 
411.26 	in fiscal year 2014 and $23,000 in fiscal 
411.27 	year 2015 is to train teachers, social service 
411.28 	personnel, law enforcement, and others who 
411.29 	come into contact with children with mental 
411.30 	illnesses, in children and adolescents mental 
411.31 	health first aid training.
411.32 	Funding Usage. Up to 75 percent of a fiscal 
411.33 	year's appropriation for child mental health 
411.34 	grants may be used to fund allocations in that 
412.1 	portion of the fiscal year ending December 
412.2 	31.

412.3	(n) CD Treatment Support Grants
		1,816,000
		1,816,000
	
412.4 	SBIRT Training. (1) $300,000 each year is 
412.5 	for grants to train primary care clinicians to 
412.6 	provide substance abuse brief intervention 
412.7 	and referral to treatment (SBIRT). This is a 
412.8 	onetime appropriation. The commissioner of 
412.9 	human services shall apply to SAMHSA for 
412.10 	an SBIRT professional training grant.
412.11 	(2) If the commissioner of human services 
412.12 	receives a grant under clause (1) funds 
412.13 	appropriated under this clause, equal to 
412.14 	the grant amount, up to the available 
412.15 	appropriation, shall be transferred to the 
412.16 	Minnesota Organization on Fetal Alcohol 
412.17 	Syndrome (MOFAS). MOFAS must use 
412.18 	the funds for grants. Grant recipients must 
412.19 	be selected from communities that are 
412.20 	not currently served by federal Substance 
412.21 	Abuse Prevention and Treatment Block 
412.22 	Grant funds. Grant money must be used to 
412.23 	reduce the rates of fetal alcohol syndrome 
412.24 	and fetal alcohol effects, and the number of 
412.25 	drug-exposed infants. Grant money may be 
412.26 	used for prevention and intervention services 
412.27 	and programs, including, but not limited to, 
412.28 	community grants, professional eduction, 
412.29 	public awareness, and diagnosis.
412.30 	Fetal Alcohol Syndrome Grant. $180,000 
412.31 	each year from the general fund is for a 
412.32 	grant to the Minnesota Organization on Fetal 
412.33 	Alcohol Syndrome (MOFAS) to support 
412.34 	nonprofit Fetal Alcohol Spectrum Disorders 
412.35 	(FASD) outreach prevention programs 
413.1 	in Olmsted County. This is a onetime 
413.2 	appropriation.
413.3 	Base Adjustment. The general fund base is 
413.4 	decreased by $480,000 in fiscal year 2016 
413.5 	and $480,000 in fiscal year 2017.

413.6 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

413.7 	Sec. 8. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

413.8
413.9	Subdivision 1.Total Appropriation
 	$
	169,326,000
 169,026,000
	$
	165,531,000
 165,231,000

413.10	Appropriations by Fund
	
413.11		2014
	2015
	
413.12	General
	79,476,000
	74,256,000
	
413.13
413.14	State Government 
Special Revenue
	48,094,000
	50,119,000
	
413.15	Health Care Access
	29,743,000
	29,143,000
	
413.16	Federal TANF
	11,713,000
	11,713,000
	
413.17	Special Revenue
	300,000
	300,000
	
413.18 	The amounts that may be spent for each 
413.19 	purpose are specified in the following 
413.20 	subdivisions.

413.21 	Sec. 9. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

413.22	Subd. 4.Health Protection

413.23	Appropriations by Fund
	
413.24	General
	9,201,000
	9,201,000
	
413.25
413.26	State Government 
Special Revenue
	32,633,000
	32,636,000
	
413.27	Special Revenue
	300,000
	300,000
	
413.28 	Infectious Disease Laboratory. Of the 
413.29 	general fund appropriation, $200,000 in 
413.30 	fiscal year 2014 and $200,000 in fiscal year 
413.31 	2015 are to monitor infectious disease trends 
413.32 	and investigate infectious disease outbreaks.
413.33 	Surveillance for Elevated Blood Lead 
413.34 	Levels. Of the general fund appropriation, 
414.1 	$100,000 in fiscal year 2014 and $100,000 
414.2 	in fiscal year 2015 are for the blood lead 
414.3 	surveillance system under Minnesota 
414.4 	Statutes, section 144.9502.
414.5 	Base Level Adjustment. The state 
414.6 	government special revenue base is increased 
414.7 	by $6,000 in fiscal year 2016 and by $13,000 
414.8 	in fiscal year 2017.

414.9 	Sec. 10. Laws 2013, chapter 108, article 14, section 4, subdivision 8, is amended to read:

414.10
414.11	Subd. 8.Board of Nursing Home 
Administrators
 		3,742,000
		2,252,000
	
414.12 	Administrative Services Unit - Operating 
414.13 	Costs. Of this appropriation, $676,000 
414.14 	in fiscal year 2014 and $626,000 in 
414.15 	fiscal year 2015 are for operating costs 
414.16 	of the administrative services unit. The 
414.17 	administrative services unit may receive 
414.18 	and expend reimbursements for services 
414.19 	performed by other agencies.
414.20 	Administrative Services Unit - Volunteer 
414.21 	Health Care Provider Program. Of this 
414.22 	appropriation, $150,000 in fiscal year 2014 
414.23 	and $150,000 in fiscal year 2015 are to pay 
414.24 	for medical professional liability coverage 
414.25 	required under Minnesota Statutes, section 
414.26 	214.40.
414.27 	Administrative Services Unit - Contested 
414.28 	Cases and Other Legal Proceedings. Of 
414.29 	this appropriation, $200,000 in fiscal year 
414.30 	2014 and $200,000 in fiscal year 2015 are 
414.31 	for costs of contested case hearings and other 
414.32 	unanticipated costs of legal proceedings 
414.33 	involving health-related boards funded 
414.34 	under this section. Upon certification of a 
415.1 	health-related board to the administrative 
415.2 	services unit that the costs will be incurred 
415.3 	and that there is insufficient money available 
415.4 	to pay for the costs out of money currently 
415.5 	available to that board, the administrative 
415.6 	services unit is authorized to transfer money 
415.7 	from this appropriation to the board for 
415.8 	payment of those costs with the approval 
415.9 	of the commissioner of management and 
415.10 	budget. This appropriation does not cancel 
415.11 	and is available until expended.
415.12 	This appropriation includes $44,000 in 
415.13 	fiscal year 2014 for rulemaking. This is 
415.14 	a onetime appropriation. $1,441,000 in 
415.15 	fiscal year 2014 and $420,000 in fiscal year 
415.16 	2015 are for the development of a shared 
415.17 	disciplinary, regulatory, licensing, and 
415.18 	information management system. $391,000 
415.19 	in fiscal year 2014 is a onetime appropriation 
415.20 	for retirement costs in the health-related 
415.21 	boards. This funding may be transferred to 
415.22 	the health boards incurring retirement costs. 
415.23 	These funds are available either year of the 
415.24 	biennium.
415.25 	This appropriation includes $16,000 in fiscal 
415.26 	years 2014 and 2015 for evening security, 
415.27 	$2,000 in fiscal years 2014 and 2015 for a 
415.28 	state vehicle lease, and $18,000 in fiscal 
415.29 	years 2014 and 2015 for shared office space 
415.30 	and administrative support. $205,000 in 
415.31 	fiscal year 2014 and $221,000 in fiscal year 
415.32 	2015 are for shared information technology 
415.33 	services, equipment, and maintenance.
415.34 	The remaining balance of the state 
415.35 	government special revenue fund 
416.1 	appropriation in Laws 2011, First Special 
416.2 	Session chapter 9, article 10, section 8, 
416.3 	subdivision 8, for Board of Nursing Home 
416.4 	Administrators rulemaking, estimated to 
416.5 	be $44,000, is canceled, and the remaining 
416.6 	balance of the state government special 
416.7 	revenue fund appropriation in Laws 2011, 
416.8 	First Special Session chapter 9, article 10, 
416.9 	section 8, subdivision 8, for electronic 
416.10 	licensing system adaptors, estimated to be 
416.11 	$761,000, and for the development and 
416.12 	implementation of a disciplinary, regulatory, 
416.13 	licensing, and information management 
416.14 	system, estimated to be $1,100,000, are 
416.15 	canceled. This paragraph is effective the day 
416.16 	following final enactment.
416.17 	Base Adjustment. The base is decreased by 
416.18 	$370,000 in fiscal years 2016 and 2017.

416.19 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

416.20 	Sec. 11. Laws 2013, chapter 108, article 14, section 12, is amended to read:
416.21 	Sec. 12. APPROPRIATION ADJUSTMENTS.
 416.22 	(a) The general fund appropriation in section 2, subdivision 5, paragraph (g), 
416.23 	includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015; 
416.24 	$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical 
416.25 	assistance eligibility and administration changes related to:
416.26 	(1) eligibility for children age two to 18 with income up to 275 percent of the federal 
416.27 	poverty guidelines;
416.28 	(2) eligibility for pregnant women with income up to 275 percent of the federal 
416.29 	poverty guidelines;
416.30 	(3) Affordable Care Act enrollment and renewal processes, including elimination 
416.31 	of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes 
416.32 	in verification requirements, and other changes in the eligibility determination and 
416.33 	enrollment and renewal process;
416.34 	(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
417.1 	(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
417.2 	(6) presumptive eligibility determinations by hospitals.
417.3 	(b) the commissioner of human services shall determine the difference between the 
417.4 	actual or forecasted estimated  costs to the medical assistance program attributable to 
417.5 	the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a), 
417.6 	clauses (1) to (6), that were estimated during the 2013 legislative session based on data 
417.7 	from the 2013 February forecast. The costs in this paragraph must be calculated between 
417.8 	January 1, 2014, and June 30, 2017.
417.9 	(c) For each fiscal year from 2014 to 2017, the commissioner of human services 
417.10 	shall certify the actual or forecasted estimated  cost differences to the medical assistance 
417.11 	program determined under paragraph (b), and report the difference in costs to the 
417.12 	commissioner of management and budget at least four weeks prior to a forecast under 
417.13 	Minnesota Statutes, section 16A.103. No later than three weeks before the release of 
417.14 	the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section 
417.15 	16A.103, prepared by the commissioner of management and budget shall reduce include 
417.16 	actual or estimated adjustments to  the health care access fund appropriation in section 
417.17 	2, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
417.18 	according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost 
417.19 	differences determined under paragraph (b) is positive, no adjustment shall be made to the 
417.20 	health care access fund appropriation. If for any fiscal year, the amount of the cumulative 
417.21 	cost differences determined under paragraph (b) is less than the original appropriation, the 
417.22 	appropriation for that fiscal year is zero.
417.23 	(d) For each fiscal year from 2014 to 2017, the commissioner of management and 
417.24 	budget must adjust the health care access fund appropriation by the cumulative difference 
417.25 	in costs reported by the commissioner of human services under paragraph (b). If, for any 
417.26 	fiscal year, the amount of the cumulative difference in costs determined under paragraph 
417.27 	(b) is positive, no adjustment shall be made to the health care access fund appropriation.
417.28 	(e) This section expires on January 1, 2018.

417.29 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

417.30 	Sec. 12. EXPIRATION OF UNCODIFIED LANGUAGE.
 417.31 	All uncodified language in this article expires on June 30, 2015, unless a different 
417.32 	expiration date is specified.

418.1 	ARTICLE 32
418.2 	HUMAN SERVICES FORECAST ADJUSTMENT

418.3	Section 1. HUMAN SERVICES APPROPRIATION.
 	
418.4 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
418.5 	in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article 
418.6 	14, from the general fund or any fund named to the Department of Human Services for 
418.7 	the purposes specified in this article, to be available for the fiscal year indicated for each 
418.8 	purpose. The figures "2014" and "2015" used in this article mean that the appropriations 
418.9 	listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015, 
418.10 	respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. 
418.11 	"The biennium" is fiscal years 2014 and 2015.

418.12				APPROPRIATIONS
	
418.13				Available for the Year
	
418.14				Ending June 30
	
418.15					2014
		2015

418.16
418.17	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

418.18	Subdivision 1.Total Appropriation
 	$
	(196,927)
	$
	64,288

418.19	Appropriations by Fund
	
418.20	General Fund
	(153,497)
	(25,282)
	
418.21
418.22	Health Care Access 
Fund
	(36,533)
	91,294
	
418.23	Federal TANF
	(6,897)
	(1,724)

418.24	Subd. 2.Forecasted Programs

418.25	(a) MFIP/DWP

418.26	Appropriations by Fund
	
418.27	General Fund
	3,571
	173
	
418.28	Federal TANF
	(6,475)
	(1,298)

418.29	(b) MFIP Child Care Assistance
		(684)
		11,114

418.30	(c) General Assistance
		(2,569)
		(1,940)

418.31	(d) Minnesota Supplemental Aid
		(690)
		(614)

418.32	(e) Group Residential Housing
		250
		(1,740)

418.33	(f) MinnesotaCare
		(34,838)
		96,340
	
419.1 	These appropriations are from the health care 
419.2 	access fund.

419.3	(g) Medical Assistance

419.4	Appropriations by Fund
	
419.5	General Fund
	(149,494)
	(27,075)
	
419.6
419.7	Health Care Access 
Fund
	(1,695)
	(5,046)

419.8	(h) Alternative Care Program
		(6,936)
		(13,260)

419.9	(i) CCDTF Entitlements
		3,055
		8,060

419.10	Subd. 3.Technical Activities
 		(422)
		(426)
	
419.11 	These appropriations are from the federal 
419.12 	TANF fund.

419.13 	Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

419.14
419.15	Subdivision 1.Total Appropriation
 	$
	6,438,485,000
 6,437,815,000
	$
	6,457,117,000
 6,456,311,000

419.16	Appropriations by Fund
	
419.17		2014
	2015
	
419.18
419.19	General
	5,654,765,000
 5,654,095,000
	5,677,458,000
 5,676,652,000
	
419.20
419.21	State Government 
Special Revenue
	4,099,000
	4,510,000
	
419.22	Health Care Access
	519,816,000
	518,446,000
	
419.23	Federal TANF
	257,915,000
	254,813,000
	
419.24	Lottery Prize Fund
	1,890,000
	1,890,000
	
419.25 	Receipts for Systems Projects. 
419.26 	Appropriations and federal receipts for 
419.27 	information systems projects for MAXIS, 
419.28 	PRISM, MMIS, and SSIS must be deposited 
419.29 	in the state system account authorized 
419.30 	in Minnesota Statutes, section 256.014. 
419.31 	Money appropriated for computer projects 
419.32 	approved by the commissioner of Minnesota 
419.33 	information technology services, funded 
419.34 	by the legislature, and approved by the 
419.35 	commissioner of management and budget, 
420.1 	may be transferred from one project to 
420.2 	another and from development to operations 
420.3 	as the commissioner of human services 
420.4 	considers necessary. Any unexpended 
420.5 	balance in the appropriation for these 
420.6 	projects does not cancel but is available for 
420.7 	ongoing development and operations.
420.8 	Nonfederal Share Transfers. The 
420.9 	nonfederal share of activities for which 
420.10 	federal administrative reimbursement is 
420.11 	appropriated to the commissioner may be 
420.12 	transferred to the special revenue fund.
420.13 	ARRA Supplemental Nutrition Assistance 
420.14 	Benefit Increases. The funds provided for 
420.15 	food support benefit increases under the 
420.16 	Supplemental Nutrition Assistance Program 
420.17 	provisions of the American Recovery and 
420.18 	Reinvestment Act (ARRA) of 2009 must be 
420.19 	used for benefit increases beginning July 1, 
420.20 	2009.
420.21 	Supplemental Nutrition Assistance 
420.22 	Program Employment and Training. 
420.23 	(1) Notwithstanding Minnesota Statutes, 
420.24 	sections 256D.051, subdivisions 1a, 6b, 
420.25 	and 6c, and 256J.626, federal Supplemental 
420.26 	Nutrition Assistance employment and 
420.27 	training funds received as reimbursement of 
420.28 	MFIP consolidated fund grant expenditures 
420.29 	for diversionary work program participants 
420.30 	and child care assistance program 
420.31 	expenditures must be deposited in the general 
420.32 	fund. The amount of funds must be limited to 
420.33 	$4,900,000 per year in fiscal years 2014 and 
420.34 	2015, and to $4,400,000 per year in fiscal 
421.1 	years 2016 and 2017, contingent on approval 
421.2 	by the federal Food and Nutrition Service.
421.3 	(2) Consistent with the receipt of the federal 
421.4 	funds, the commissioner may adjust the 
421.5 	level of working family credit expenditures 
421.6 	claimed as TANF maintenance of effort. 
421.7 	Notwithstanding any contrary provision in 
421.8 	this article, this rider expires June 30, 2017.
421.9 	TANF Maintenance of Effort. (a) In order 
421.10 	to meet the basic maintenance of effort 
421.11 	(MOE) requirements of the TANF block grant 
421.12 	specified under Code of Federal Regulations, 
421.13 	title 45, section 263.1, the commissioner may 
421.14 	only report nonfederal money expended for 
421.15 	allowable activities listed in the following 
421.16 	clauses as TANF/MOE expenditures:
421.17 	(1) MFIP cash, diversionary work program, 
421.18 	and food assistance benefits under Minnesota 
421.19 	Statutes, chapter 256J;
421.20 	(2) the child care assistance programs 
421.21 	under Minnesota Statutes, sections 119B.03
421.22 	and 119B.05, and county child care 
421.23 	administrative costs under Minnesota 
421.24 	Statutes, section 119B.15;
421.25 	(3) state and county MFIP administrative 
421.26 	costs under Minnesota Statutes, chapters 
421.27 	256J and 256K;
421.28 	(4) state, county, and tribal MFIP 
421.29 	employment services under Minnesota 
421.30 	Statutes, chapters 256J and 256K;
421.31 	(5) expenditures made on behalf of legal 
421.32 	noncitizen MFIP recipients who qualify for 
421.33 	the MinnesotaCare program under Minnesota 
421.34 	Statutes, chapter 256L;
422.1 	(6) qualifying working family credit 
422.2 	expenditures under Minnesota Statutes, 
422.3 	section 290.0671;
422.4 	(7) qualifying Minnesota education credit 
422.5 	expenditures under Minnesota Statutes, 
422.6 	section 290.0674; and
422.7 	(8) qualifying Head Start expenditures under 
422.8 	Minnesota Statutes, section 119A.50.
422.9 	(b) The commissioner shall ensure that 
422.10 	sufficient qualified nonfederal expenditures 
422.11 	are made each year to meet the state's 
422.12 	TANF/MOE requirements. For the activities 
422.13 	listed in paragraph (a), clauses (2) to 
422.14 	(8), the commissioner may only report 
422.15 	expenditures that are excluded from the 
422.16 	definition of assistance under Code of 
422.17 	Federal Regulations, title 45, section 260.31.
422.18 	(c) For fiscal years beginning with state fiscal 
422.19 	year 2003, the commissioner shall ensure 
422.20 	that the maintenance of effort used by the 
422.21 	commissioner of management and budget 
422.22 	for the February and November forecasts 
422.23 	required under Minnesota Statutes, section 
422.24 	16A.103, contains expenditures under 
422.25 	paragraph (a), clause (1), equal to at least 16 
422.26 	percent of the total required under Code of 
422.27 	Federal Regulations, title 45, section 263.1.
422.28 	(d) The requirement in Minnesota Statutes, 
422.29 	section 256.011, subdivision 3, that federal 
422.30 	grants or aids secured or obtained under that 
422.31 	subdivision be used to reduce any direct 
422.32 	appropriations provided by law, do not apply 
422.33 	if the grants or aids are federal TANF funds.
422.34 	(e) For the federal fiscal years beginning on 
422.35 	or after October 1, 2007, the commissioner 
423.1 	may not claim an amount of TANF/MOE in 
423.2 	excess of the 75 percent standard in Code 
423.3 	of Federal Regulations, title 45, section 
423.4 	263.1(a)(2), except:
423.5 	(1) to the extent necessary to meet the 80 
423.6 	percent standard under Code of Federal 
423.7 	Regulations, title 45, section 263.1(a)(1), 
423.8 	if it is determined by the commissioner 
423.9 	that the state will not meet the TANF work 
423.10 	participation target rate for the current year;
423.11 	(2) to provide any additional amounts 
423.12 	under Code of Federal Regulations, title 45, 
423.13 	section 264.5, that relate to replacement of 
423.14 	TANF funds due to the operation of TANF 
423.15 	penalties; and
423.16 	(3) to provide any additional amounts that 
423.17 	may contribute to avoiding or reducing 
423.18 	TANF work participation penalties through 
423.19 	the operation of the excess MOE provisions 
423.20 	of Code of Federal Regulations, title 45, 
423.21 	section 261.43 (a)(2).
423.22 	For the purposes of clauses (1) to (3), 
423.23 	the commissioner may supplement the 
423.24 	MOE claim with working family credit 
423.25 	expenditures or other qualified expenditures 
423.26 	to the extent such expenditures are otherwise 
423.27 	available after considering the expenditures 
423.28 	allowed in this subdivision and subdivisions 
423.29 	2 and 3.
423.30 	(f) Notwithstanding any contrary provision 
423.31 	in this article, paragraphs (a) to (e) expire 
423.32 	June 30, 2017.
423.33 	Working Family Credit Expenditures 
423.34 	as TANF/MOE. The commissioner may 
423.35 	claim as TANF maintenance of effort up to 
424.1 	$6,707,000 per year of working family credit 
424.2 	expenditures in each fiscal year.

424.3 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

424.4 	Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by 
424.5 	Laws 2013, chapter 144, section 24, is amended to read:

424.6	Subd. 4.Central Office
 					
424.7 	The amounts that may be spent from this 
424.8 	appropriation for each purpose are as follows:

424.9	(a) Operations

424.10	Appropriations by Fund
	
424.11	General
	101,979,000
	96,858,000
	
424.12
424.13	State Government 
Special Revenue
	3,974,000
	4,385,000
	
424.14	Health Care Access
	13,177,000
	13,004,000
	
424.15	Federal TANF
	100,000
	100,000
	
424.16 	DHS Receipt Center Accounting. The 
424.17 	commissioner is authorized to transfer 
424.18 	appropriations to, and account for DHS 
424.19 	receipt center operations in, the special 
424.20 	revenue fund.
424.21 	Administrative Recovery; Set-Aside. The 
424.22 	commissioner may invoice local entities 
424.23 	through the SWIFT accounting system as an 
424.24 	alternative means to recover the actual cost 
424.25 	of administering the following provisions:
424.26 	(1) Minnesota Statutes, section 125A.744, 
424.27 	subdivision 3;
424.28 	(2) Minnesota Statutes, section 245.495, 
424.29 	paragraph (b);
424.30 	(3) Minnesota Statutes, section 256B.0625, 
424.31 	subdivision 20, paragraph (k);
424.32 	(4) Minnesota Statutes, section 256B.0924, 
424.33 	subdivision 6, paragraph (g);
425.1 	(5) Minnesota Statutes, section 256B.0945, 
425.2 	subdivision 4, paragraph (d); and
425.3 	(6) Minnesota Statutes, section 256F.10, 
425.4 	subdivision 6, paragraph (b).
425.5 	Systems Modernization. The following 
425.6 	amounts are appropriated for transfer to 
425.7 	the state systems account authorized in 
425.8 	Minnesota Statutes, section 256.014:
425.9 	(1) $1,825,000 in fiscal year 2014 and 
425.10 	$2,502,000 in fiscal year 2015 is for the 
425.11 	state share of Medicaid-allocated costs of 
425.12 	the health insurance exchange information 
425.13 	technology and operational structure. The 
425.14 	funding base is $3,222,000 in fiscal year 2016 
425.15 	and $3,037,000 in fiscal year 2017 but shall 
425.16 	not be included in the base thereafter; and
425.17 	(2) $9,344,000 in fiscal year 2014 and 
425.18 	$3,660,000 in fiscal year 2015 are for the 
425.19 	modernization and streamlining of agency 
425.20 	eligibility and child support systems. The 
425.21 	funding base is $5,921,000 in fiscal year 
425.22 	2016 and $1,792,000 in fiscal year 2017 but 
425.23 	shall not be included in the base thereafter.
425.24 	The unexpended balance of the $9,344,000 
425.25 	appropriation in fiscal year 2014 and the 
425.26 	$3,660,000 appropriation in fiscal year 2015 
425.27 	must be transferred from the Department of 
425.28 	Human Services state systems account to 
425.29 	the Office of Enterprise Technology when 
425.30 	the Office of Enterprise Technology has 
425.31 	negotiated a federally approved internal 
425.32 	service fund rates and billing process with 
425.33 	sufficient internal accounting controls to 
425.34 	properly maximize federal reimbursement 
425.35 	to Minnesota for human services system 
426.1 	modernization projects, but not later than 
426.2 	June 30, 2015.
426.3 	If contingent funding is fully or partially 
426.4 	disbursed under article 15, section 3, and 
426.5 	transferred to the state systems account, the 
426.6 	unexpended balance of that appropriation 
426.7 	must be transferred to the Office of Enterprise 
426.8 	Technology in accordance with this clause. 
426.9 	Contingent funding must not exceed 
426.10 	$11,598,000 for the biennium.
426.11 	Base Adjustment. The general fund base 
426.12 	is increased by $2,868,000 in fiscal year 
426.13 	2016 and decreased by $1,206,000 in fiscal 
426.14 	year 2017. The health access fund base is 
426.15 	decreased by $551,000 in fiscal years 2016 
426.16 	and 2017. The state government special 
426.17 	revenue fund base is increased by $4,000 in 
426.18 	fiscal year 2016 and decreased by $236,000 
426.19 	in fiscal year 2017.

426.20	(b) Children and Families

426.21	Appropriations by Fund
	
426.22	General
	8,023,000
	8,015,000
	
426.23	Federal TANF
	2,282,000
	2,282,000
	
426.24 	Financial Institution Data Match and 
426.25 	Payment of Fees. The commissioner is 
426.26 	authorized to allocate up to $310,000 each 
426.27 	year in fiscal years 2014 and 2015 from the 
426.28 	PRISM special revenue account to make 
426.29 	payments to financial institutions in exchange 
426.30 	for performing data matches between account 
426.31 	information held by financial institutions 
426.32 	and the public authority's database of child 
426.33 	support obligors as authorized by Minnesota 
426.34 	Statutes, section 13B.06, subdivision 7.
427.1 	Base Adjustment. The general fund base is 
427.2 	decreased by $300,000 in fiscal years 2016 
427.3 	and 2017. The TANF fund base is increased 
427.4 	by $300,000 in fiscal years 2016 and 2017.

427.5	(c) Health Care

427.6	Appropriations by Fund
	
427.7	General
	14,028,000
	13,826,000
	
427.8	Health Care Access
	28,442,000
	31,137,000
	
427.9 	Base Adjustment. The general fund base 
427.10 	is decreased by $86,000 in fiscal year 2016 
427.11 	and by $86,000 in fiscal year 2017. The 
427.12 	health care access fund base is increased 
427.13 	by $6,954,000 in fiscal year 2016 and by 
427.14 	$5,489,000 in fiscal year 2017.

427.15	(d) Continuing Care

427.16	Appropriations by Fund
	
427.17	General
	20,993,000
	22,359,000
	
427.18
427.19	State Government 
Special Revenue
	125,000
	125,000
	
427.20 	Base Adjustment. The general fund base is 
427.21 	increased by $1,690,000 in fiscal year 2016 
427.22 	and by $798,000 in fiscal year 2017.

427.23	(e) Chemical and Mental Health

427.24	Appropriations by Fund
	
427.25
427.26	General
	4,639,000
 4,571,000
	4,490,000
 4,431,000
	
427.27	Lottery Prize Fund
	157,000
	157,000
	
427.28 	Of the general fund appropriation, $68,000 
427.29 	in fiscal year 2014 and $59,000 in fiscal year 
427.30 	2015 are for compulsive gambling treatment 
427.31 	under Minnesota Statutes, section 297E.02, 
427.32 	subdivision 3, paragraph (c).

427.33 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

428.1 	Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 
428.2 	Laws 2013, chapter 144, section 25, is amended to read:

428.3	Subd. 6.Grant Programs
 					
428.4 	The amounts that may be spent from this 
428.5 	appropriation for each purpose are as follows:

428.6	(a) Support Services Grants

428.7	Appropriations by Fund
	
428.8	General
	8,915,000
	13,333,000
	
428.9	Federal TANF
	94,611,000
	94,611,000
	
428.10 	Paid Work Experience. $2,168,000 
428.11 	each year in fiscal years 2015 and 2016 
428.12 	is from the general fund for paid work 
428.13 	experience for long-term MFIP recipients. 
428.14 	Paid work includes full and partial wage 
428.15 	subsidies and other related services such as 
428.16 	job development, marketing, preworksite 
428.17 	training, job coaching, and postplacement 
428.18 	services. These are onetime appropriations. 
428.19 	Unexpended funds for fiscal year 2015 do not 
428.20 	cancel, but are available to the commissioner 
428.21 	for this purpose in fiscal year 2016.
428.22 	Work Study Funding for MFIP 
428.23 	Participants. $250,000 each year in fiscal 
428.24 	years 2015 and 2016 is from the general fund 
428.25 	to pilot work study jobs for MFIP recipients 
428.26 	in approved postsecondary education 
428.27 	programs. This is a onetime appropriation. 
428.28 	Unexpended funds for fiscal year 2015 do 
428.29 	not cancel, but are available for this purpose 
428.30 	in fiscal year 2016.
428.31 	Local Strategies to Reduce Disparities.
428.32 	$2,000,000 each year in fiscal years 2015 
428.33 	and 2016 is from the general fund for 
428.34 	local projects that focus on services for 
428.35 	subgroups within the MFIP caseload 
429.1 	who are experiencing poor employment 
429.2 	outcomes. These are onetime appropriations. 
429.3 	Unexpended funds for fiscal year 2015 do not 
429.4 	cancel, but are available to the commissioner 
429.5 	for this purpose in fiscal year 2016.
429.6 	Home Visiting Collaborations for MFIP 
429.7 	Teen Parents. $200,000 per year in fiscal 
429.8 	years 2014 and 2015 is from the general fund 
429.9 	and $200,000 in fiscal year 2016 is from the 
429.10 	federal TANF fund for technical assistance 
429.11 	and training to support local collaborations 
429.12 	that provide home visiting services for 
429.13 	MFIP teen parents. The general fund 
429.14 	appropriation is onetime. The federal TANF 
429.15 	fund appropriation is added to the base.
429.16 	Performance Bonus Funds for Counties.
429.17 	The TANF fund base is increased by 
429.18 	$1,500,000 each year in fiscal years 2016 
429.19 	and 2017. The commissioner must allocate 
429.20 	this amount each year to counties that exceed 
429.21 	their expected range of performance on the 
429.22 	annualized three-year self-support index 
429.23 	as defined in Minnesota Statutes, section 
429.24 	256J.751, subdivision 2, clause (6). This is a 
429.25 	permanent base adjustment. Notwithstanding 
429.26 	any contrary provisions in this article, this 
429.27 	provision expires June 30, 2016.
429.28 	Base Adjustment. The general fund base is 
429.29 	decreased by $200,000 in fiscal year 2016 
429.30 	and $4,618,000 in fiscal year 2017. The 
429.31 	TANF fund base is increased by $1,700,000 
429.32 	in fiscal years 2016 and 2017.

429.33
429.34	(b) Basic Sliding Fee Child Care Assistance 
Grants
		36,836,000
		42,318,000
	
430.1 	Base Adjustment. The general fund base is 
430.2 	increased by $3,778,000 in fiscal year 2016 
430.3 	and by $3,849,000 in fiscal year 2017.

430.4	(c) Child Care Development Grants
		1,612,000
		1,737,000

430.5	(d) Child Support Enforcement Grants
		50,000
		50,000
	
430.6 	Federal Child Support Demonstration 
430.7 	Grants. Federal administrative 
430.8 	reimbursement resulting from the federal 
430.9 	child support grant expenditures authorized 
430.10 	under United States Code, title 42, section 
430.11 	1315, is appropriated to the commissioner 
430.12 	for this activity.

430.13	(e) Children's Services Grants

430.14	Appropriations by Fund
	
430.15	General
	49,760,000
	52,961,000
	
430.16	Federal TANF
	140,000
	140,000
	
430.17 	Adoption Assistance and Relative Custody 
430.18 	Assistance. $37,453,000 in fiscal year 2014 
430.19 	and $37,453,000 in fiscal year 2015 is for 
430.20 	the adoption assistance and relative custody 
430.21 	assistance programs. The commissioner 
430.22 	shall determine with the commissioner of 
430.23 	Minnesota Management and Budget the 
430.24 	appropriation for Northstar Care for Children 
430.25 	effective January 1, 2015. The commissioner 
430.26 	may transfer appropriations for adoption 
430.27 	assistance, relative custody assistance, and 
430.28 	Northstar Care for Children between fiscal 
430.29 	years and among programs to adjust for 
430.30 	transfers across the programs.
430.31 	Title IV-E Adoption Assistance. Additional 
430.32 	federal reimbursements to the state as a result 
430.33 	of the Fostering Connections to Success 
430.34 	and Increasing Adoptions Act's expanded 
430.35 	eligibility for Title IV-E adoption assistance 
431.1 	are appropriated for postadoption services, 
431.2 	including a parent-to-parent support network.
431.3 	Privatized Adoption Grants. Federal 
431.4 	reimbursement for privatized adoption grant 
431.5 	and foster care recruitment grant expenditures 
431.6 	is appropriated to the commissioner for 
431.7 	adoption grants and foster care and adoption 
431.8 	administrative purposes.
431.9 	Adoption Assistance Incentive Grants.
431.10 	Federal funds available during fiscal years 
431.11 	2014 and 2015 for adoption incentive grants 
431.12 	are appropriated for postadoption services, 
431.13 	including a parent-to-parent support network.
431.14 	Base Adjustment. The general fund base is 
431.15 	increased by $5,913,000 in fiscal year 2016 
431.16 	and by $10,297,000 in fiscal year 2017.

431.17	(f) Child and Community Service Grants
		53,301,000
		53,301,000

431.18	(g) Child and Economic Support Grants
		21,047,000
		20,848,000
	
431.19 	Minnesota Food Assistance Program. 
431.20 	Unexpended funds for the Minnesota food 
431.21 	assistance program for fiscal year 2014 do 
431.22 	not cancel but are available for this purpose 
431.23 	in fiscal year 2015.
431.24 	Transitional Housing. $250,000 each year 
431.25 	is for the transitional housing programs under 
431.26 	Minnesota Statutes, section 256E.33.
431.27 	Emergency Services. $250,000 each year 
431.28 	is for emergency services grants under 
431.29 	Minnesota Statutes, section 256E.36.
431.30 	Family Assets for Independence. $250,000 
431.31 	each year is for the Family Assets for 
431.32 	Independence Minnesota program. This 
431.33 	appropriation is available in either year of the 
432.1 	biennium and may be transferred between 
432.2 	fiscal years.
432.3 	Food Shelf Programs. $375,000 in fiscal 
432.4 	year 2014 and $375,000 in fiscal year 
432.5 	2015 are for food shelf programs under 
432.6 	Minnesota Statutes, section 256E.34. If the 
432.7 	appropriation for either year is insufficient, 
432.8 	the appropriation for the other year is 
432.9 	available for it. Notwithstanding Minnesota 
432.10 	Statutes, section 256E.34, subdivision 4, no 
432.11 	portion of this appropriation may be used 
432.12 	by Hunger Solutions for its administrative 
432.13 	expenses, including but not limited to rent 
432.14 	and salaries.
432.15 	Homeless Youth Act. $2,000,000 in fiscal 
432.16 	year 2014 and $2,000,000 in fiscal year 2015 
432.17 	is for purposes of Minnesota Statutes, section 
432.18 	256K.45.
432.19 	Safe Harbor Shelter and Housing. 
432.20 	$500,000 in fiscal year 2014 and $500,000 in 
432.21 	fiscal year 2015 is for a safe harbor shelter 
432.22 	and housing fund for housing and supportive 
432.23 	services for youth who are sexually exploited. 

432.24	(h) Health Care Grants

432.25	Appropriations by Fund
	
432.26	General
	190,000
	190,000
	
432.27	Health Care Access
	190,000
	190,000
	
432.28 	Emergency Medical Assistance Referral 
432.29 	and Assistance Grants. (a) The 
432.30 	commissioner of human services shall 
432.31 	award grants to nonprofit programs that 
432.32 	provide immigration legal services based 
432.33 	on indigency to provide legal services for 
432.34 	immigration assistance to individuals with 
432.35 	emergency medical conditions or complex 
433.1 	and chronic health conditions who are not 
433.2 	currently eligible for medical assistance 
433.3 	or other public health care programs, but 
433.4 	who may meet eligibility requirements with 
433.5 	immigration assistance.
433.6 	(b) The grantees, in collaboration with 
433.7 	hospitals and safety net providers, shall 
433.8 	provide referral assistance to connect 
433.9 	individuals identified in paragraph (a) with 
433.10 	alternative resources and services to assist in 
433.11 	meeting their health care needs. $100,000 
433.12 	is appropriated in fiscal year 2014 and 
433.13 	$100,000 in fiscal year 2015. This is a 
433.14 	onetime appropriation.
433.15 	Base Adjustment. The general fund is 
433.16 	decreased by $100,000 in fiscal year 2016 
433.17 	and $100,000 in fiscal year 2017.

433.18	(i) Aging and Adult Services Grants
		14,827,000
		15,010,000
	
433.19 	Base Adjustment. The general fund is 
433.20 	increased by $1,150,000 in fiscal year 2016 
433.21 	and $1,151,000 in fiscal year 2017.
433.22 	Community Service Development 
433.23 	Grants and Community Services Grants.
433.24 	Community service development grants and 
433.25 	community services grants are reduced by 
433.26 	$1,150,000 each year. This is a onetime 
433.27 	reduction.

433.28	(j) Deaf and Hard-of-Hearing Grants
		1,771,000
		1,785,000

433.29	(k) Disabilities Grants
		18,605,000
		18,823,000
	
433.30 	Advocating Change Together. $310,000 in 
433.31 	fiscal year 2014 is for a grant to Advocating 
433.32 	Change Together (ACT) to maintain and 
433.33 	promote services for persons with intellectual 
433.34 	and developmental disabilities throughout 
434.1 	the state. This appropriation is onetime. Of 
434.2 	this appropriation:
434.3 	(1) $120,000 is for direct costs associated 
434.4 	with the delivery and evaluation of 
434.5 	peer-to-peer training programs administered 
434.6 	throughout the state, focusing on education, 
434.7 	employment, housing, transportation, and 
434.8 	voting;
434.9 	(2) $100,000 is for delivery of statewide 
434.10 	conferences focusing on leadership and 
434.11 	skill development within the disability 
434.12 	community; and
434.13 	(3) $90,000 is for administrative and general 
434.14 	operating costs associated with managing 
434.15 	or maintaining facilities, program delivery, 
434.16 	staff, and technology.
434.17 	Base Adjustment. The general fund base 
434.18 	is increased by $535,000 in fiscal year 2016 
434.19 	and by $709,000 in fiscal year 2017.

434.20	(l) Adult Mental Health Grants

434.21	Appropriations by Fund
	
434.22
434.23	General
	71,199,000
 70,597,000
	69,530,000
 68,783,000
	
434.24	Health Care Access
	750,000
	750,000
	
434.25	Lottery Prize
	1,733,000
	1,733,000
	
434.26 	Compulsive Gambling Treatment. Of the 
434.27 	general fund appropriation, $602,000 in 
434.28 	fiscal year 2014 and $747,000 in fiscal year 
434.29 	2015 are for compulsive gambling treatment 
434.30 	under Minnesota Statutes, section 297E.02, 
434.31 	subdivision 3, paragraph (c).
434.32 	Problem Gambling. $225,000 in fiscal year 
434.33 	2014 and $225,000 in fiscal year 2015 is 
434.34 	appropriated from the lottery prize fund for a 
434.35 	grant to the state affiliate recognized by the 
435.1 	National Council on Problem Gambling. The 
435.2 	affiliate must provide services to increase 
435.3 	public awareness of problem gambling, 
435.4 	education and training for individuals and 
435.5 	organizations providing effective treatment 
435.6 	services to problem gamblers and their 
435.7 	families, and research relating to problem 
435.8 	gambling. 
435.9 	Funding Usage. Up to 75 percent of a fiscal 
435.10 	year's appropriations for adult mental health 
435.11 	grants may be used to fund allocations in that 
435.12 	portion of the fiscal year ending December 
435.13 	31.
435.14 	Base Adjustment. The general fund base is 
435.15 	decreased by $4,427,000 $4,441,000  in fiscal 
435.16 	years 2016 and 2017.
435.17 	Mental Health Pilot Project. $230,000 
435.18 	each year is for a grant to the Zumbro 
435.19 	Valley Mental Health Center. The grant 
435.20 	shall be used to implement a pilot project 
435.21 	to test an integrated behavioral health care 
435.22 	coordination model. The grant recipient must 
435.23 	report measurable outcomes and savings 
435.24 	to the commissioner of human services 
435.25 	by January 15, 2016. This is a onetime 
435.26 	appropriation.
435.27 	High-risk adults. $200,000 in fiscal 
435.28 	year 2014 is for a grant to the nonprofit 
435.29 	organization selected to administer the 
435.30 	demonstration project for high-risk adults 
435.31 	under Laws 2007, chapter 54, article 1, 
435.32 	section 19, in order to complete the project. 
435.33 	This is a onetime appropriation.

435.34	(m) Child Mental Health Grants
		18,246,000
		20,636,000
	
436.1 	Text Message Suicide Prevention 
436.2 	Program. $625,000 in fiscal year 2014 and 
436.3 	$625,000 in fiscal year 2015 is for a grant 
436.4 	to a nonprofit organization to establish and 
436.5 	implement a statewide text message suicide 
436.6 	prevention program. The program shall 
436.7 	implement a suicide prevention counseling 
436.8 	text line designed to use text messaging to 
436.9 	connect with crisis counselors and to obtain 
436.10 	emergency information and referrals to 
436.11 	local resources in the local community. The 
436.12 	program shall include training within schools 
436.13 	and communities to encourage the use of the 
436.14 	program.
436.15 	Mental Health First Aid Training. $22,000 
436.16 	in fiscal year 2014 and $23,000 in fiscal 
436.17 	year 2015 is to train teachers, social service 
436.18 	personnel, law enforcement, and others who 
436.19 	come into contact with children with mental 
436.20 	illnesses, in children and adolescents mental 
436.21 	health first aid training.
436.22 	Funding Usage. Up to 75 percent of a fiscal 
436.23 	year's appropriation for child mental health 
436.24 	grants may be used to fund allocations in that 
436.25 	portion of the fiscal year ending December 
436.26 	31.

436.27	(n) CD Treatment Support Grants
		1,816,000
		1,816,000
	
436.28 	SBIRT Training. (1) $300,000 each year is 
436.29 	for grants to train primary care clinicians to 
436.30 	provide substance abuse brief intervention 
436.31 	and referral to treatment (SBIRT). This is a 
436.32 	onetime appropriation. The commissioner of 
436.33 	human services shall apply to SAMHSA for 
436.34 	an SBIRT professional training grant.
437.1 	(2) If the commissioner of human services 
437.2 	receives a grant under clause (1) funds 
437.3 	appropriated under this clause, equal to 
437.4 	the grant amount, up to the available 
437.5 	appropriation, shall be transferred to the 
437.6 	Minnesota Organization on Fetal Alcohol 
437.7 	Syndrome (MOFAS). MOFAS must use 
437.8 	the funds for grants. Grant recipients must 
437.9 	be selected from communities that are 
437.10 	not currently served by federal Substance 
437.11 	Abuse Prevention and Treatment Block 
437.12 	Grant funds. Grant money must be used to 
437.13 	reduce the rates of fetal alcohol syndrome 
437.14 	and fetal alcohol effects, and the number of 
437.15 	drug-exposed infants. Grant money may be 
437.16 	used for prevention and intervention services 
437.17 	and programs, including, but not limited to, 
437.18 	community grants, professional eduction, 
437.19 	public awareness, and diagnosis.
437.20 	Fetal Alcohol Syndrome Grant. $180,000 
437.21 	each year from the general fund is for a 
437.22 	grant to the Minnesota Organization on Fetal 
437.23 	Alcohol Syndrome (MOFAS) to support 
437.24 	nonprofit Fetal Alcohol Spectrum Disorders 
437.25 	(FASD) outreach prevention programs 
437.26 	in Olmsted County. This is a onetime 
437.27 	appropriation.
437.28 	Base Adjustment. The general fund base is 
437.29 	decreased by $480,000 in fiscal year 2016 
437.30 	and $480,000 in fiscal year 2017.

437.31 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2013.

437.32 	Sec. 6. EFFECTIVE DATE.
 437.33 	Sections 1 and 2 are effective the day following final enactment.