1.1A bill for an act1.2relating to state government; making supplemental appropriations and reductions 1.3in appropriations for higher education, jobs and economic development, 1.4public safety, corrections, transportation, environment, natural resources, and 1.5agriculture, early childhood through grade 12 and adult education, health and 1.6human services; making forecast adjustments; modifying prior appropriations; 1.7modifying disposition of certain revenues; creating accounts; requiring reports; 1.8providing penalties; authorizing rulemaking;amending Minnesota Statutes 1.92012, sections 3.099, subdivision 3; 13.43, subdivision 16; 13.46, subdivision 4; 1.1015A.082, subdivision 4; 16A.125, subdivision 5; 16C.16, subdivision 6a; 16C.19; 1.1118B.01, by adding subdivisions; 18B.03, by adding a subdivision; 18B.04; 85.34, 1.12subdivision 7; 85A.02, subdivision 2; 93.22, subdivision 1; 93.2236; 103G.251; 1.13103G.271, subdivisions 5, 6; 103G.281, by adding a subdivision; 115E.08, by 1.14adding a subdivision; 116J.8731, subdivision 5; 116L.98; 122A.18, by adding 1.15a subdivision; 122A.414, subdivision 2; 122A.415, subdivision 1; 123A.05, 1.16subdivision 2; 123A.485; 123A.64; 123B.71, subdivisions 8, 9; 124D.09, 1.17subdivisions 9, 13; 124D.111, by adding subdivisions; 124D.1158, subdivisions 1.183, 4; 124D.13, subdivisions 2, 4, 9, 13, by adding subdivisions; 124D.135, 1.19subdivisions 1, 3; 124D.522; 124D.531, subdivision 3; 124D.59, subdivision 2; 1.20125A.08; 126C.10, subdivisions 25, 26, 28; 127A.45, subdivision 2; 127A.49, 1.21subdivisions 2, 3; 129C.10, subdivision 3, by adding a subdivision; 136A.01, 1.22subdivision 2; 136A.1702; 136A.1785; 144.1501, subdivision 1; 144.551, 1.23subdivision 1; 144A.073, by adding a subdivision; 144A.33, subdivision 2; 1.24148.624, by adding a subdivision; 148B.53, subdivision 3; 150A.091, by 1.25adding a subdivision; 153.16, by adding a subdivision; 154.11, as amended; 1.26155A.27, by adding a subdivision; 165.15, subdivision 2; 169.011, by adding a 1.27subdivision; 169.06, subdivision 4, by adding a subdivision; 169.14, subdivision 1.285d, by adding a subdivision; 169.305, subdivision 1; 169.826, by adding a 1.29subdivision; 169.8261, by adding a subdivision; 169.86, subdivision 5; 169.863, 1.30by adding a subdivision; 169.865, subdivisions 1, 2, by adding a subdivision; 1.31169.866, subdivision 3, by adding a subdivision; 171.02, subdivision 3; 171.06, 1.32subdivision 2; 174.02, by adding a subdivision; 181.940, subdivision 2; 181A.07, 1.33by adding a subdivision; 216B.16, by adding a subdivision; 216B.1611, 1.34by adding a subdivision; 216B.241, subdivision 1d; 216C.145; 216C.146; 1.35219.015, subdivisions 1, 2; 245.466, by adding a subdivision; 245A.04, by 1.36adding a subdivision; 245C.03, by adding a subdivision; 245C.04, by adding 1.37a subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision; 1.38245C.33, subdivisions 1, 4; 252.451, subdivision 2; 253B.066, subdivision 1; 1.39254B.04, subdivision 3; 254B.12; 256.01, by adding a subdivision; 256.9685, 2.1subdivisions 1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a, 2.23b, 3c, 6a, 8, 8a, 9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752, 2.3subdivision 2; 256B.04, by adding a subdivision; 256B.0615, subdivision 3; 2.4256B.0624, subdivisions 2, 5, 6, 10; 256B.0625, subdivisions 18b, 18c, 18d, 18g, 2.530, by adding subdivisions; 256B.199; 256B.35, subdivision 1; 256B.5012, 2.6by adding a subdivision; 256D.02, subdivisions 8, 12; 256D.05, subdivision 2.75; 256D.06, subdivision 1; 256D.08, subdivision 1, by adding a subdivision; 2.8256D.10; 256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by 2.9adding a subdivision; 256I.04, subdivision 1; 256I.05, subdivision 2; 256J.08, 2.10subdivisions 47, 57, 83, by adding a subdivision; 256J.10; 256J.21, subdivision 2.114; 256J.30, subdivision 4; 256J.32, subdivision 1; 256J.33, subdivision 2; 2.12256J.37, as amended; 256J.425, subdivisions 1, 7; 256J.49, subdivision 13; 2.13256J.53, subdivisions 1, 2, 5; 256J.531; 256J.95, subdivisions 8, 9, 10; 257.85, 2.14subdivision 11; 260B.198, subdivision 7; 260C.212, subdivision 1; 260C.515, 2.15subdivision 4; 260C.611; 268A.01, subdivision 14; 298.28, subdivisions 2, 7a, as 2.16added; 299F.012, subdivisions 1, 2; 326.04, by adding a subdivision; 326.10, by 2.17adding a subdivision; 326.3382, by adding a subdivision; 326A.04, by adding a 2.18subdivision; 645.241; Minnesota Statutes 2013 Supplement, sections 15A.082, 2.19subdivisions 1, 3; 116V.03; 122A.40, subdivision 8; 122A.41, subdivision 5; 2.20123B.53, subdivision 1; 123B.54; 123B.75, subdivision 5; 124D.10, subdivision 2.218; 124D.11, subdivision 1; 124D.111, subdivision 1; 124D.165, subdivisions 2.223, 4, 5; 124D.531, subdivision 1; 124D.862, subdivisions 1, 2; 125A.11, 2.23subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 2.24126C.05, subdivision 15; 126C.10, subdivisions 2a, 2d, 13a, 24, 31; 126C.17, 2.25subdivisions 6, 7b, 9, 9a; 126C.40, subdivision 1; 126C.44; 126C.48, subdivision 2.268; 127A.47, subdivision 7; 127A.70, subdivision 2; 145.4716, subdivision 2; 2.27148B.17, subdivision 2; 174.12, subdivision 2; 174.42, subdivision 2; 245.8251; 2.28245A.03, subdivision 7; 245A.042, subdivision 3; 245A.16, subdivision 1; 2.29245C.08, subdivision 1; 245D.02, subdivisions 3, 4b, 8b, 11, 15b, 29, 34, 34a, by 2.30adding a subdivision; 245D.03, subdivisions 1, 2, 3, by adding a subdivision; 2.31245D.04, subdivision 3; 245D.05, subdivisions 1, 1a, 1b, 2, 4, 5; 245D.051; 2.32245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071, subdivisions 3, 4, 5; 245D.081, 2.33subdivision 2; 245D.09, subdivisions 3, 4a; 245D.091, subdivisions 2, 3, 4; 2.34245D.10, subdivisions 3, 4; 245D.11, subdivision 2; 256B.04, subdivision 21; 2.35256B.055, subdivision 1; 256B.06, subdivision 4; 256B.0625, subdivisions 2.3617, 18e; 256B.0949, subdivision 11; 256B.439, subdivisions 1, 7; 256B.441, 2.37subdivisions 53, 63; 256B.4912, subdivision 1; 256B.4913, subdivision 4a; 2.38256B.4914, subdivisions 2, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision 2.3934; 256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 2.4023, 24, by adding subdivisions; 256J.21, subdivision 3; 256J.30, subdivision 2.419; 256N.02, by adding a subdivision; 256N.21, subdivision 2, by adding a 2.42subdivision; 256N.22, subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4; 2.43256N.24, subdivisions 9, 10; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 2.44256N.27, subdivision 4; 326A.04, subdivision 5; Laws 2008, chapter 363, article 2.455, section 4, subdivision 7, as amended; Laws 2009, chapter 83, article 1, section 2.4610, subdivision 7; Laws 2010, chapter 189, sections 15, subdivision 12; 26, 2.47subdivision 4; Laws 2012, chapter 247, article 4, section 47; Laws 2012, chapter 2.48287, article 2, sections 1; 3; Laws 2012, First Special Session chapter 1, article 1, 2.49section 28; Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 85, 2.50article 1, section 3, subdivisions 2, 6; Laws 2013, chapter 86, article 1, sections 2.5112, subdivisions 1, 3, 4, 6, 7; 13; Laws 2013, chapter 99, article 3, section 3; 2.52Laws 2013, chapter 108, article 1, section 24; article 7, section 49; article 14, 2.53sections 2, subdivisions 1, 3, 4, 5, 6; 3, subdivisions 1, 4; 4, subdivision 8; 12; 2.54Laws 2013, chapter 114, article 3, section 3, subdivision 6; article 4, section 2.5547; Laws 2013, chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7, 2.5611; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 15, 20; article 4, section 9, 2.57subdivision 2; article 5, section 31, subdivisions 2, 3, 4, 5, 8; article 6, section 12, 2.58subdivisions 2, 3, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8, 3.1section 5, subdivisions 2, 3, 4, 8, 9, 10, 11, 14; article 9, section 2; Laws 2013, 3.2chapter 117, article 1, sections 3, subdivisions 2, 3, 6; 4; 5, subdivisions 2, 3, 4; 3.3Laws 2013, chapter 143, article 11, section 10; proposing coding for new law in 3.4Minnesota Statutes, chapters 3; 18B; 87A; 92; 103G; 123A; 123B; 129C; 135A; 3.5136A; 144; 144A; 148; 168; 171; 197; 219; 256L; 268A; 299A; 473; proposing 3.6coding for new law as Minnesota Statutes, chapter 256P; repealing Minnesota 3.7Statutes 2012, sections 116J.997; 123B.71, subdivision 1; 256.969, subdivisions 3.82c, 8b, 9a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 3, 4; 3.9256D.06, subdivision 1b; 256D.08, subdivision 2; 256D.405, subdivisions 1a, 2; 3.10256J.08, subdivisions 42, 55a, 82a; 256J.20; 256J.24, subdivision 9; 256J.32, 3.11subdivisions 2, 3, 4, 5a, 6, 7, 7a, 8; Minnesota Statutes 2013 Supplement, sections 3.12256B.0625, subdivision 18f; 256J.08, subdivision 24; 256N.26, subdivision 7; 3.13Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended.3.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:3.15ARTICLE 13.16HIGHER EDUCATION

3.17Section 1. APPROPRIATIONS.

3.18The sums shown in the columns marked "Appropriations" are added to the 3.19appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the 3.20agencies and for the purposes specified in this article. The appropriations are from the 3.21general fund, or another named fund, and are available for the fiscal year indicated for 3.22each purpose. The figure "2015" used in this article mean that the appropriation listed 3.23under them are available for the fiscal year ending June 30, 2015.

3.24APPROPRIATIONS3.25Available for the Year3.26Ending June 303.2720142015

3.28Sec. 2. OFFICE OF HIGHER EDUCATION$1,000,000

3.29This appropriation is for immediate transfer 3.30to College Possible for the purpose of 3.31expanding College Possible coaching and 3.32mentoring programs in Minnesota schools. 3.33The appropriation shall be used for: 3.34(1) increasing the number of low-income 3.35high school students served by College 3.36Possible by adding at least 150 students and 3.37partnering with at least three additional high 3.38schools in 2015;4.1(2) expenses related to direct support 4.2for low-income high school students in 4.3after-school programming led by College 4.4Possible; and4.5(3) coaching and support of low-income 4.6college students through the completion of 4.7their college degree.4.8College Possible must, by February 1, 2015, 4.9report to the chairs and ranking minority 4.10members of the legislative committees 4.11and divisions with jurisdiction over higher 4.12education on activities funded by this 4.13appropriation. The report must include, 4.14but is not limited to, information about the 4.15expansion of College Possible in Minnesota, 4.16the number of College Possible coaches 4.17hired, the expansion within existing partner 4.18high schools, the expansion of high school 4.19partnerships, the number of high school 4.20and college students served, the total hours 4.21of community service by high school and 4.22college students, and a list of communities 4.23and organizations benefitting from student 4.24service hours.4.25This appropriation must not be used for the 4.26expansion and support of College Possible 4.27outside of Minnesota.4.28This is a onetime appropriation.

4.294.304.31Sec. 3. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES$17,000,000

4.32This is a onetime appropriation.

4.334.34Sec. 4. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

5.1Subdivision 1.Total Appropriation$7,500,000

5.2Subd. 2.Operations and Maintenance2,500,000

5.3This is a onetime appropriation for fiscal 5.4year 2015 only and is to address immediate 5.5and critical financial challenges in order to 5.6preserve academic programs and student 5.7service levels. The Board of Regents is 5.8requested to allocate this appropriation to 5.9meet financial challenges at the University of 5.10Minnesota-Duluth campus.

5.11Subd. 3.Health Sciences Special5,000,000

5.12This appropriation is for the purpose of 5.13research related to regenerative medicine. 5.14The university is requested to constitute an 5.15advisory group on regenerative medicine 5.16composed of at least five members with 5.17experience in regenerative medicine, 5.18including one member each from:5.19(1) the Mayo Clinic;5.20(2) the University of Minnesota;5.21(3) private industry; and5.22(4) at least two others with expertise in 5.23regenerative medicine.5.24Prior to expending the appropriation, the 5.25university must receive and consider the 5.26advice of the advisory group.5.27The appropriation may be used entirely for 5.28University of Minnesota research or may 5.29be allocated in whole or in part to research 5.30conducted by others including the Mayo 5.31Clinic.

5.325.33Sec. 5. DEPARTMENT OF LABOR AND INDUSTRY$250,000

6.1For the purpose of the competency standard 6.2program in section 19. This is a onetime 6.3appropriation.

6.46.5Sec. 6. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT$232,000

6.6This appropriation is for the purpose of the 6.7commissioner's duties under section 116L.98 6.8and the accountability plan under section 22. 6.9This is a onetime appropriation.6.10    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:6.11116L.98 WORKFORCE PROGRAM OUTCOMES.6.12    Subdivision 1.Requirements. The commissioner shall develop and implement a 6.13set of standard approaches for assessing the outcomes of workforce programs under this 6.14chapter. The outcomes assessed must include, but are not limited to, periodic comparisons 6.15of workforce program participants and nonparticipants uniform outcome measurement 6.16and reporting system for adult workforce-related programs under chapters 116J and 116L.6.17The commissioner shall also monitor the activities and outcomes of programs and 6.18services funded by legislative appropriations and administered by the department on a 6.19pass-through basis and develop a consistent and equitable method of assessing recipients 6.20for the costs of its monitoring activities.6.21    Subd. 2.Definitions.(a) For the purposes of this section, the terms defined in 6.22this subdivision have the meanings given.6.23(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates 6.24awarded in recognition of an individual's attainment of measurable technical or 6.25occupational skills necessary to obtain employment or advance within an occupation. 6.26"Credential" does not include certificates awarded by workforce investment boards or 6.27work-readiness certificates.6.28(c) "Exit" means to have not received service under a workforce program for 90 6.29consecutive calendar days. The exit date is the last date of service.6.30(d) "Net impact" means the use of matched control groups and regression analysis to 6.31estimate the impacts attributable to program participation net of other factors, including 6.32observable personal characteristics and economic conditions.6.33(e) "Preenrollment" means the period of time before an individual was enrolled 6.34in a workforce program.7.1    Subd. 3.Uniform outcome report card; reporting by the commissioner.(a) By 7.2December 31 of each even-numbered year, the commissioner must report to the chairs 7.3and ranking minority members of the committees of the house of representatives and the 7.4senate having jurisdiction over economic development and workforce policy and finance 7.5the following information separately for each of the previous two fiscal or calendar years, 7.6for each program subject to the requirements of subdivision 1:7.7(1) the total number of participants enrolled;7.8(2) the median preenrollment wages based on participant wages for the second 7.9through the fifth calendar quarters immediately preceding the quarter of enrollment 7.10excluding those with zero income;7.11(3) the total number of participants with zero income in the second through fifth 7.12calendar quarters immediately preceding the quarter of enrollment;7.13(4) the total number of participants enrolled in training;7.14(5) the total number of participants enrolled in training by occupational group;7.15(6) the total number of participants that exited the program and the average 7.16enrollment duration of participants that have exited the program during the year;7.17(7) the total number of exited participants who completed training;7.18(8) the total number of exited participants who attained a credential;7.19(9) the total number of participants employed during three consecutive quarters 7.20immediately following the quarter of exit, by industry;7.21(10) the median wages of participants employed during three consecutive quarters 7.22immediately following the quarter of exit;7.23(11) the total number of participants employed during eight consecutive quarters 7.24immediately following the quarter of exit, by industry; and7.25(12) the median wages of participants employed during eight consecutive quarters 7.26immediately following the quarter of exit.7.27(b) The report to the legislature must contain participant information by education 7.28level, race and ethnicity, gender, and geography, and a comparison of exited participants 7.29who completed training and those who did not.7.30(c) The requirements of this section apply to programs administered directly by the 7.31commissioner or administered by other organizations under a grant made by the department.7.32    Subd. 4.Data to commissioner; uniform report card.(a) A recipient of a 7.33direct appropriation or grant made by or through the department must report data to the 7.34commissioner by September 1 of each even-numbered year on each of the items in 7.35subdivision 3 for each program it administers except wages and number employed which 7.36the department shall provide. The data must be in a format prescribed by the commissioner.8.1(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants 8.2and recipients regarding the data collection and reporting requirements under this 8.3subdivision and must provide technical assistance to applicants and recipients to assist 8.4in complying with the requirements of this subdivision.8.5    Subd. 5.Information.The information collected and reported under subdivisions 3 8.6and 4 shall be made available on the department's Web site.8.7    Sec. 8. [135A.0431] MILITARY VETERANS; RESIDENT TUITION.8.8(a) A person who is honorably discharged from the armed forces of the United States 8.9is entitled to the resident tuition rate at Minnesota public postsecondary institutions.8.10(b) This section is in addition to any other statute, rule, or higher education 8.11institution regulation or policy providing eligibility for a resident tuition rate or its 8.12equivalent to a student.8.13EFFECTIVE DATE.This section is effective for academic terms beginning after 8.14August 1, 2014.8.15    Sec. 9. Minnesota Statutes 2012, section 136A.01, subdivision 2, is amended to read:8.16    Subd. 2. Responsibilities. (a) The Minnesota Office of Higher Education is 8.17responsible for:8.18(1) necessary state level administration of financial aid programs, including 8.19accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 8.20financial aid programs to the governor and the legislature;8.21(2) approval, registration, licensing, and financial aid eligibility of private collegiate 8.22and career schools, under sections 
         136A.61 to 
         136A.71 and chapter 141;8.23(3) determining whether to enter into an interstate reciprocity agreement regarding 8.24postsecondary distance education;8.25(3) (4) negotiating and administering reciprocity agreements;8.26(4) (5) publishing and distributing financial aid information and materials, and other 8.27information and materials under section 
         136A.87, to students and parents;8.28(5) (6) collecting and maintaining student enrollment and financial aid data and 8.29reporting data on students and postsecondary institutions to develop and implement a 8.30process to measure and report on the effectiveness of postsecondary institutions;8.31(6) (7) administering the federal programs that affect students and institutions on a 8.32statewide basis; and8.33(7) (8) prescribing policies, procedures, and rules under chapter 14 necessary to 8.34administer the programs under its supervision.9.1(b) The office may match individual student data from the student record enrollment 9.2database with individual student financial aid data collected and maintained by the office 9.3in order to audit or evaluate federal or state supported education programs as permitted by 9.4United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title 9.534, section 99.35. The office shall not release data that personally identifies parents or 9.6students other than to employees and contractors of the office.9.7    Sec. 10. Minnesota Statutes 2012, section 136A.1702, is amended to read:9.8136A.1702 LEGISLATIVE OVERSIGHT.9.9    The office shall notify the chairs of the legislative committees with primary 9.10jurisdiction over higher education finance of any proposed material change to any of its 9.11student loan programs, including loan refinancing under section 136A.1704,  prior to 9.12making the change.9.13    Sec. 11. [136A.1704] STUDENT LOAN REFINANCING.9.14The office may refinance student and parent loans as provided by this section and 9.15on other terms and conditions the office prescribes. The office may establish credit 9.16requirements for borrowers and determine what types of student and parent loans will be 9.17eligible for refinancing. The refinanced loan need not have been made through a loan 9.18program administered by the office. Loans shall be made with available funds in the 9.19loan capital fund under section 136A.1785. The maximum amount of outstanding loans 9.20refinanced under this section may not exceed $100,000,000. The maximum loan under 9.21this section may not exceed $70,000.9.22EFFECTIVE DATE.This section is effective the day following final enactment, 9.23provided no loans may be refinanced prior to June 1, 2015.9.24    Sec. 12. Minnesota Statutes 2012, section 136A.1785, is amended to read:9.25136A.1785 LOAN CAPITAL FUND.9.26The office may deposit and hold assets derived from the operation of its student loan 9.27programs and refinanced education loans authorized by this chapter in a fund known as 9.28the loan capital fund. Assets in the loan capital fund are available to the office solely 9.29for carrying out the purposes and terms of sections 
         136A.15 to 
         136A.1703 136A.1704, 9.30including, but not limited to, making student loans authorized by this chapter, refinancing 9.31education loans authorized by this chapter, paying administrative expenses associated with 9.32the operation of its student loan programs, repurchasing defaulted student loans, and 10.1paying expenses in connection with the issuance of revenue bonds authorized under this 10.2chapter. Assets in the loan capital fund may be invested as provided in sections 
         11A.2410.3and 
         136A.16, subdivision 8. All interest and earnings from the investment of the loan 10.4capital fund inure to the benefit of the fund and are deposited into the fund.10.5    Sec. 13. [136A.221] RESEARCH DOGS AND CATS.10.6(a) A higher education research facility that receives public money or a facility that 10.7provides research in collaboration with a higher education facility that confines dogs or 10.8cats for science, education, or research purposes and plans on euthanizing a dog or cat 10.9for other than science, education, or research purposes must first offer the dog or cat 10.10to an animal rescue organization. A facility that is required to offer dogs or cats to an 10.11animal rescue organization under this section may enter into an agreement with the animal 10.12rescue organization to protect the facility. A facility that provides a dog or cat to a rescue 10.13organization under this section is immune from any civil liability that otherwise might 10.14result from its actions, provided that the facility is acting in good faith.10.15(b) For the purposes of this section, "animal rescue organization" means any 10.16nonprofit organization incorporated for the purpose of rescuing animals in need and 10.17finding permanent, adoptive homes for the animals.10.18    Sec. 14. [136A.658] EXEMPTION; STATE AUTHORIZATION RECIPROCITY 10.19AGREEMENT SCHOOLS.10.20(a) The office may participate in an interstate reciprocity agreement regarding 10.21postsecondary distance education if it determines that participation is in the best interest of 10.22Minnesota postsecondary students.10.23(b) If the office decides to participate in an interstate reciprocity agreement, an 10.24institution that meets the following requirements is exempt from the provisions of sections 10.25136A.61 to 136A.71:10.26(1) the institution is situated in a state which is also participating in the interstate 10.27reciprocity agreement;10.28(2) the institution has been approved to participate in the interstate reciprocity 10.29agreement by the institution's home state and other entities with oversight of the interstate 10.30reciprocity agreement; and 10.31(3) the institution has elected to participate in and operate in compliance with the 10.32terms of the interstate reciprocity agreement.10.33    Sec. 15. [136A.89] STUDY ABROAD PROGRAMS.11.1    Subdivision 1.Definitions.(a) For purposes of this section, the terms defined in this 11.2subdivision have the meanings given them.11.3(b) "Postsecondary institution" means an institution that meets the eligibility 11.4requirements under section 136A.103 to participate in state financial aid programs.11.5(c) "Program" means a study abroad program offered or approved for credit by a 11.6postsecondary institution in which program participants travel outside of the United States 11.7in connection with an educational experience.11.8    Subd. 2.Report.(a) A postsecondary institution, must file by November 1 of 11.9each year a report on its programs with the office. The report must contain the following 11.10information from the previous academic year, including summer terms:11.11(1) deaths of program participants that occurred during program participation as a 11.12result of program participation; and11.13(2) accidents and illnesses that occurred during program participation as a result of 11.14program participation and that required hospitalization.11.15Information reported under clause (1) may be supplemented by a brief explanatory 11.16statement.11.17(b) A postsecondary institution must report to the office annually by November 11.181 whether its program complies with health and safety standards set by the Forum on 11.19Education Abroad or similar study abroad program standard setting agency.11.20    Subd. 3.Office of Higher Education; publication of program information.(a) 11.21The office must publish the reports required by subdivision 2, on its Web site in a format 11.22that facilitates identifying information related to a particular postsecondary institution.11.23(b) The office shall publish on its Web site the best available information by country 11.24on sexual assaults and other criminal acts affecting study abroad program participants 11.25during program participation. This information shall not be limited to programs subject 11.26to this section.11.27    Subd. 4.Program material.A postsecondary institution must include in its written 11.28materials provided to prospective program participants a link to the office Web site stating 11.29that program health and safety information is available at the Web site.11.30EFFECTIVE DATE.This section is effective August 1, 2014, provided that the 11.31initial reports under subdivision 2 are due November 1, 2015.11.32    Sec. 16. Minnesota Statutes 2012, section 181A.07, is amended by adding a 11.33subdivision to read:12.1    Subd. 7.Approved training programs.The commissioner may grant exemptions 12.2from any provisions of sections 181A.01 to 181A.12 for minors participating in training 12.3programs approved by the commissioner; or students in a valid apprenticeship program 12.4taught by or required by a trade union, the commissioner of education, the commissioner 12.5of employment and economic development, the Board of Trustees of the Minnesota State 12.6Colleges and Universities, or the Board of Regents of the University of Minnesota.12.7    Sec. 17. Laws 2013, chapter 99, article 3, section 3, is amended to read:12.8    Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS 12.9EXPENSE ALLOWANCE.12.10(a) For the purposes of the state grant program under Minnesota Statutes, section 12.11136A.121
         , for the biennium ending June 30, 2015, the tuition maximum is $13,000 12.12each fiscal year of the biennium for fiscal year 2014 and $13,620 for fiscal year 201512.13 for students in four-year programs, and $5,808 in each fiscal year of the biennium for 12.14students in two-year programs.12.15(b) The living and miscellaneous expense allowance for the state grant program under 12.16Minnesota Statutes, section 
         136A.121, for the biennium ending June 30, 2015, is set at 12.17$7,900 for each fiscal year of the biennium fiscal year 2014 and $8,300 for fiscal year 2015.12.18EFFECTIVE DATE.This section is effective the day following final enactment.12.19    Sec. 18. MINNESOTA STATE COLLEGES AND UNIVERSITIES 12.20BACCALAUREATE DEGREE COMPLETION PLAN.12.21The Board of Trustees of the Minnesota State Colleges and Universities shall develop 12.22a plan to implement multi-campus articulation agreements that lead to baccalaureate degree 12.23completion upon earning the number of credits required for the degree minus 60 credits at 12.24a system university after transfer to the system university by a student with an associate in 12.25arts degree, associate of science degree, or an associate of fine arts (AFA) degree from 12.26a system college. The board shall report on this plan to the legislative committees with 12.27primary jurisdiction over higher education finance and policy by March 15, 2015.12.28    Sec. 19. COMPETENCY STANDARDS: ADVANCED MANUFACTURING, 12.29HEALTH CARE SERVICES, INFORMATION TECHNOLOGY, AND 12.30AGRICULTURE.12.31(a) The commissioner of labor and industry, in collaboration with the commissioner 12.32of employment and economic development, shall establish competency standards for 12.33programs in advanced manufacturing, health care services, information technology, 13.1and agriculture. This initiative shall be administered by the Department of Labor and 13.2Industry. In establishing the competency standards, the commissioner shall convene 13.3recognized industry experts, representative employers, higher education institutions, and 13.4representatives of labor to assist in defining credible competency standards acceptable to 13.5the advanced manufacturing, health care services, information technology, and agriculture 13.6industries.13.7(b) The outcomes expected from the initiatives in this section include:13.8(1) establishment of competency standards for entry level and at least two additional 13.9higher skill levels in each industry;13.10(2) verification of competency standards and skill levels and their transferability by 13.11representatives of each respective industry;13.12(3) models of ways for Minnesota educational institutions to engage in providing 13.13education and training to meet the competency standards established; and13.14(4) participation from the identified industry sectors.13.15(c) By January 15, 2015, the commissioner of labor and industry shall report to the 13.16legislative committees with jurisdiction over jobs on the progress and success, including 13.17outcomes, of the initiatives in this section and recommendations on occupations in which 13.18similar competency standards should be developed and implemented.13.19    Sec. 20. STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON 13.20MINNESOTA.13.21(a) The commissioner of employment and economic development, in consultation 13.22with the commissioner of revenue, shall study and analyze the effects of current and 13.23projected oil production in North Dakota on the Minnesota economy with special focus on 13.24the northwestern region of Minnesota and area border cities as provided in paragraph (b).13.25(b) The study and analysis must address:13.26(1) current and projected economic, fiscal, and demographic effects and issues;13.27(2) direct and indirect costs and benefits;13.28(3) positive and negative effects; and13.29(4) economic challenges and opportunities for economic growth or diversification.13.30(c) The study must be objective, evidence-based, and designed to produce empirical 13.31data. Study data must be utilized to formulate policy recommendations on how the state, 13.32the northwestern region of the state, and border cities may respond to the challenges and 13.33opportunities for economic growth and financial investment that may be derived from the 13.34regional economic changes that are the result of oil production in North Dakota.14.1(d) For the purposes of this section, "border cities" has the meaning given in 14.2Minnesota Statutes, section 469.1731.14.3(e) The study and analysis must be conducted by an independent entity with 14.4demonstrated knowledge in the following areas:14.5(1) the economy and demography of Minnesota;14.6(2) the domestic and foreign oil industry; and 14.7(3) technologies, markets, and geopolitical factors that have an impact on current 14.8and future oil production in the region.14.9(f) The commissioner shall report on the findings and recommendations of the study 14.10to the committees of the house of representatives and senate having jurisdiction over 14.11economic development and workforce issues by February 15, 2015.14.12EFFECTIVE DATE.This section is effective the day following final enactment.14.13    Sec. 21. REPORT; OFFICE OF HIGHER EDUCATION.14.14The Office of Higher Education shall, by February 1, 2015, report to the committees 14.15of the legislature with primary jurisdiction over higher education policy and finance, its 14.16plans and proposed terms and conditions for operating a student loan refinancing program 14.17under section 136A.1704, along with any recommended legislation.14.18    Sec. 22. COMMISSIONER OF EMPLOYMENT AND ECONOMIC 14.19DEVELOPMENT ACCOUNTABILITY PLAN.14.20By December 1, 2014, the commissioner of employment and economic development 14.21shall report to the committees of the house of representatives and senate having 14.22jurisdiction over workforce development and economic development policy and finance 14.23issues, on the department's plan, and any request for funding, to design and implement 14.24a performance accountability outcome measurement system, including a net impact 14.25analysis, for programs under Minnesota Statutes, chapter 116J and 116L.14.26    Sec. 23. WORKFORCE PROGRAM NET IMPACT ANALYSIS.14.27By December 1, 2014, the commissioner of employment and economic development, 14.28in partnership with the Governor's Workforce Development Council, must report to the 14.29chairs and ranking minority members of the committees of the house of representatives 14.30and the senate having jurisdiction over economic development and workforce policy and 14.31finance the results of the net impact pilot project already underway.15.1    Sec. 24. STUDY ABROAD PROGRAM; ASSESSMENT OF APPROPRIATE 15.2REGULATION.15.3The Office of Higher Education shall, using existing staff and budget, assess the 15.4appropriate state regulation of postsecondary study abroad programs. The assessment 15.5must be based on a balanced approach of protecting the health and safety of program 15.6participants and maintaining the opportunity of students to study abroad. The office shall 15.7report the results of its assessment with any legislative recommendation by February 1, 15.82015, to the committees of the legislature with primary jurisdiction over higher education.15.9    Sec. 25.  REPEALER.15.10Minnesota Statutes 2012, section 116J.997, is repealed.15.11ARTICLE 215.12TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS15.13    Section 1. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to 15.14read:

15.15Subd. 7.Emergency Communication Networks66,470,00070,233,000

15.16This appropriation is from the state 15.17government special revenue fund for 911 15.18emergency telecommunications services.15.19(a) Public Safety Answering Points.15.20$13,664,000 each year is to be distributed 15.21as provided in Minnesota Statutes, section 15.22403.113, subdivision 2
         .15.23(b) Medical Resource Communication 15.24Centers. $683,000 each year is for grants 15.25to the Minnesota Emergency Medical 15.26Services Regulatory Board for the Metro 15.27East and Metro West Medical Resource 15.28Communication Centers that were in 15.29operation before January 1, 2000.15.30(c) ARMER Debt Service. $17,557,000 the 15.31first year and $23,261,000 the second year 15.32are to the commissioner of finance to pay 16.1debt service on revenue bonds issued under 16.2Minnesota Statutes, section 
         403.275.16.3Any portion of this appropriation not needed 16.4to pay debt service in a fiscal year may be 16.5used by the commissioner of public safety to 16.6pay cash for any of the capital improvements 16.7for which bond proceeds were appropriated 16.8by Laws 2005, chapter 136, article 1, section 16.99, subdivision 8, or Laws 2007, chapter 54, 16.10article 1, section 10, subdivision 8.16.11(d) Metropolitan Council Debt Service.16.12$1,410,000 each year is to the commissioner 16.13of finance for payment to the Metropolitan 16.14Council for debt service on bonds issued 16.15under Minnesota Statutes, section 
         403.27.16.16(e) ARMER State Backbone Operating 16.17Costs. $5,060,000 each year is to the 16.18commissioner of transportation for costs 16.19of maintaining and operating the statewide 16.20radio system backbone.16.21(f) ARMER Improvements. $1,000,000 16.22each year is for the Statewide Radio Board for 16.23costs of design, construction, maintenance 16.24of, and improvements to those elements 16.25of the statewide public safety radio and 16.26communication system that support mutual 16.27aid communications and emergency medical 16.28services or provide enhancement of public 16.29safety communication interoperability.16.30(g) Next Generation 911. $3,431,000 the 16.31first year and $6,490,000 the second year 16.32are to replace the current system with the 16.33Next Generation Internet Protocol (IP) based 16.34network. This appropriation is available until 17.1expended. The base level of funding for 17.2fiscal year 2012 shall be $2,965,000.17.3(h) Grants to Local Government. 17.4$5,000,000 the first year is for grants to 17.5local units of government to assist with 17.6the transition to the ARMER system. This 17.7appropriation is available until June 30, 2012.17.8    Sec. 2. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

17.917.10Subd. 12.Rochester Maintenance Facility26,430,000 24,937,000

17.11This appropriation is from the bond proceeds 17.12account in the trunk highway fund.17.13To prepare a site for and design, construct, 17.14furnish, and equip a new maintenance facility 17.15in Rochester.17.16EFFECTIVE DATE.This section is effective the day following final enactment.17.17    Sec. 3. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:17.18    Subd. 4. Trunk highway fund bond proceeds account. To provide the money 17.19appropriated in this act from the bond proceeds account in the trunk highway fund, the 17.20commissioner of management and budget shall sell and issue bonds of the state in an 17.21amount up to $32,945,000$31,452,000 in the manner, upon the terms, and with the effect 17.22prescribed by Minnesota Statutes, sections 
         167.50 to 
         167.52, and by the Minnesota 17.23Constitution, article XIV, section 11, at the times and in the amounts requested by the 17.24commissioner of transportation. The proceeds of the bonds, except accrued interest and 17.25any premium received from the sale of the bonds, must be credited to the bond proceeds 17.26account in the trunk highway fund.17.27EFFECTIVE DATE.This section is effective the day following final enactment.17.28    Sec. 4. Laws 2012, chapter 287, article 2, section 1, is amended to read:17.29    Section 1. ROCHESTER MAINTENANCE FACILITY.17.30$16,100,000 $17,593,000 is appropriated to the commissioner of transportation 17.31to design, construct, furnish, and equip the maintenance facility in Rochester and 18.1corresponding remodeling of the existing district headquarters building. This appropriation 18.2is from the bond proceeds account in the trunk highway fund.18.3EFFECTIVE DATE.This section is effective the day following final enactment.18.4    Sec. 5. Laws 2012, chapter 287, article 2, section 3, is amended to read:18.5    Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.18.6To provide the money appropriated in this article from the bond proceeds account in 18.7the trunk highway fund, the commissioner of management and budget shall sell and issue 18.8bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the 18.9terms, and with the effect prescribed by Minnesota Statutes, sections 
         167.50 to 
         167.52, 18.10and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 18.11requested by the commissioner of transportation. The proceeds of the bonds, except 18.12accrued interest and any premium received from the sale of the bonds, must be credited 18.13to the bond proceeds account in the trunk highway fund.18.14EFFECTIVE DATE.This section is effective the day following final enactment.18.15    Sec. 6. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to 18.16read:18.17    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND 18.18SALE AUTHORIZATIONS REDUCED.18.19(a) The remaining balance of the appropriation in Laws 2010, Second Special 18.20Session chapter 1, article 1, section 7, for the economic development and housing 18.21challenge program, estimated to be $450,000, is transferred to the general fund.18.22(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 18.23section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section 18.2412A.07
         , is reduced by $1,358,000.18.25(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 18.26section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota 18.27Statutes, section 
         12A.06, is reduced by $30,000.18.28(d) The appropriation in Laws 2010, Second Special Session chapter 1, article 18.291, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota 18.30Statutes, section 
         12A.06, is reduced by $392,000.18.31(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 18.32section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota 18.33Statutes, section 
         12A.06, is reduced by $2,000.19.1(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 19.2section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes, 19.3section 
         12A.06, is reduced by $5,000.19.4(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2, 19.5section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes, 19.6section 
         12A.06, is reduced by $271,000.19.7(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 19.8section 13, for public health activities pursuant to Minnesota Statutes, section 
         12A.08, 19.9is reduced by $103,000.19.10(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session 19.11chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk 19.12highways and trunk highway bridges is canceled. The bond sale authorization in Laws 19.132007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced 19.14by $1,428,000 $534,000.19.15(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2, 19.16article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for 19.17grants to local governments for capital costs related to rehabilitation and replacement of 19.18local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes, 19.19section 
         174.50, is canceled. The bond sale authorization in Laws 2007, First Special 19.20Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.19.21(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1, 19.22article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement 19.23pursuant to Minnesota Statutes, section 
         12A.16, subdivision 3, is canceled. The bond 19.24sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17, 19.25subdivision 2, is reduced by $2,133,000.19.26(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 19.27section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant 19.28to Minnesota Statutes, section 
         12A.16, subdivision 1, is reduced by $819,000.19.29EFFECTIVE DATE.This section is effective the day following final enactment.19.30    Sec. 7. Laws 2013, chapter 86, article 1, section 12, subdivision 1, is amended to read:

19.3119.32Subdivision 1.Total Appropriation$157,851,000$161,191,000 161,911,000

19.33Appropriations by Fund19.342014201519.35General82,213,00082,772,00020.1Special Revenue14,062,00013,062,00020.220.3State Government 
                  		Special Revenue59,241,00063,742,00020.4Environmental69,00069,00020.5Trunk Highway2,266,0002,266,000

20.6The amounts that may be spent for each 20.7purpose are specified in the following 20.8subdivisions.20.9    Sec. 8. Laws 2013, chapter 86, article 1, section 12, subdivision 3, is amended to read:

20.10Subd. 3.Criminal Apprehension47,588,00047,197,000

20.11Appropriations by Fund20.12General42,315,00042,924,00020.13Special Revenue3,000,0002,000,00020.1420.15State Government 
                  		Special Revenue7,0007,00020.16Trunk Highway2,266,0002,266,000

20.17(a) DWI Lab Analysis; Trunk Highway Fund

20.18Notwithstanding Minnesota Statutes, section 20.19161.20, subdivision 3
         , $1,941,000 each year 20.20is from the trunk highway fund for laboratory 20.21analysis related to driving-while-impaired 20.22cases.

20.23(b) Criminal History System

20.24$50,000 the first year and $580,000 the 20.25second year from the general fund and, 20.26notwithstanding Minnesota Statutes, section 20.27299A.705, subdivision 4
         , $3,000,000 the 20.28first year and $2,000,000 the second year 20.29from the vehicle services account in the 20.30special revenue fund are to replace the 20.31state criminal history system. This is a 20.32onetime appropriation and is available until 20.33expended. Of this amount, $2,980,000 the 20.34first year and $2,580,000 the second year 20.35are for a onetime transfer to the Office of 21.1Enterprise Technology for start-up costs. 21.2Service level agreements must document all 21.3project-related transfers under this paragraph. 21.4Ongoing operating and support costs for this 21.5system shall be identified and incorporated 21.6into future service level agreements.21.7The commissioner is authorized to use funds 21.8appropriated under this paragraph for the 21.9purposes specified in paragraph (c).

21.10(c) Criminal Reporting System

21.11$1,360,000 the first year and $1,360,000 the 21.12second year from the general fund are to 21.13replace the state's crime reporting system21.14 and include one full-time equivalent business 21.15analyst. This is a onetime appropriation 21.16and is available until expended. Of these 21.17amounts, $1,360,000 the first year and 21.18$1,360,000 $1,290,000 the second year 21.19are for a onetime transfer to the Office of 21.20Enterprise Technology for start-up costs. 21.21Service level agreements must document all 21.22project-related transfers under this paragraph. 21.23Ongoing operating and support costs for this 21.24system shall be identified and incorporated 21.25into future service level agreements.21.26The commissioner is authorized to use funds 21.27appropriated under this paragraph for the 21.28purposes specified in paragraph (b).

21.29(d) Forensic Laboratory

21.30$125,000 the first year and $125,000 the 21.31second year from the general fund and, 21.32notwithstanding Minnesota Statutes, section 21.33161.20, subdivision 3
         , $125,000 the first 21.34year and $125,000 the second year from the 21.35trunk highway fund are to replace forensic 22.1laboratory equipment at the Bureau of 22.2Criminal Apprehension.22.3$200,000 the first year and $200,000 the 22.4second year from the general fund and, 22.5notwithstanding Minnesota Statutes, section 22.6161.20, subdivision 3
         , $200,000 the first 22.7year and $200,000 the second year from the 22.8trunk highway fund are to improve forensic 22.9laboratory staffing at the Bureau of Criminal 22.10Apprehension.

22.11(e) Livescan Fingerprinting

22.12$310,000 the first year and $389,000 the 22.13second year from the general fund are to 22.14maintain Livescan fingerprinting machines. 22.15This is a onetime appropriation.

22.16(f) General Fund Base

22.17The Bureau of Criminal Apprehension's 22.18general fund base is reduced by $1,720,000 22.19in fiscal year 2014 and $2,329,000 in fiscal 22.20year 2015 to reflect onetime appropriations.

22.21(g) Report

22.22If the vehicle services special revenue account 22.23accrues an unallocated balance in excess 22.24of 50 percent of the previous fiscal year's 22.25expenditures, the commissioner of public 22.26safety shall submit a report to the chairs 22.27and ranking minority members of the house 22.28of representatives and senate committees 22.29with jurisdiction over transportation and 22.30public safety policy and finance. The report 22.31must contain specific policy and legislative 22.32recommendations for reducing the fund 22.33balance and avoiding future excessive fund 22.34balances. The report is due within three 23.1months of the fund balance exceeding the 23.2threshold established in this paragraph.23.3    Sec. 9. Laws 2013, chapter 86, article 1, section 12, subdivision 4, is amended to read:

23.423.5Subd. 4.Fire Marshal9,555,00010,855,0009,555,000

23.6This appropriation is from the fire safety 23.7account in the special revenue fund and is for 23.8activities under Minnesota Statutes, section 23.9299F.012
         .23.10Of this amount: (1) $7,187,000 each year 23.11is for activities under Minnesota Statutes, 23.12section 
         299F.012; and (2) $2,368,000 the first 23.13year and $2,368,000 the second year are for 23.14transfers to the general fund under Minnesota 23.15Statutes, section 
         297I.06, subdivision 3.23.16$1,300,000 in fiscal year 2014 is appropriated  23.17for activities and programs under Minnesota 23.18Statutes, section 299F.012. This is a onetime 23.19appropriation. By January 1, 2015, the 23.20commissioner of public safety shall report to 23.21the chairs and ranking minority members of 23.22the legislative committees with jurisdiction 23.23over the fire safety account regarding the 23.24balances and uses of the account.23.25    Sec. 10. Laws 2013, chapter 86, article 1, section 12, subdivision 6, is amended to read:

23.2623.27Subd. 6.Office of Justice Programs36,106,00036,106,00037,206,000

23.28Appropriations by Fund23.2923.30General36,010,00036,010,00037,110,00023.3123.32State Government 
                  		Special Revenue96,00096,000

23.33(a) OJP Administration Costs

24.1Up to 2.5 percent of the grant funds 24.2appropriated in this subdivision may be used 24.3by the commissioner to administer the grant 24.4program.

24.5(b) Crime Victim Programs

24.6$1,500,000 each year must be distributed 24.7through an open and competitive grant 24.8process for existing crime victim programs. 24.9The funds must be used to meet the needs 24.10of underserved and unserved areas and 24.11populations.

24.12(c) Community Offender Reentry Program

24.13$100,000 each year is for a grant to the 24.14community offender reentry program for 24.15assisting individuals to transition from 24.16incarceration to the communities in and 24.17around Duluth, including assistance in 24.18finding housing, employment, educational 24.19opportunities, counseling, and other 24.20resources. This is a onetime appropriation.

24.21(d) Youth Intervention Programs

24.22$1,000,000 each year in fiscal year 2014 24.23and $1,750,000 in fiscal year 2015 is 24.24for youth intervention programs under 24.25Minnesota Statutes, section 
         299A.73. The 24.26appropriations must be used to create new 24.27programs statewide in underserved areas 24.28and to help existing programs serve unmet 24.29needs in program communities. Of this 24.30amount, $100,000 in fiscal year 2015 is for a 24.31youth intervention program targeted toward 24.32East African youth. These appropriations 24.33are available until expended. This amount24.34 $2,000,000  must be added to the department's 25.1base budget in 2016 and 2017 for grants to 25.2youth intervention programs.25.3(e) Sexually Exploited Youth; Law 25.4Enforcement and Prosecution Training25.5$350,000 each year is for a grant to Ramsey 25.6County to be used by the Ramsey County 25.7Attorney's Office to:25.8(1) develop a statewide model protocol for 25.9law enforcement, prosecutors, and others, 25.10who in their professional capacity encounter 25.11sexually exploited and trafficked youth, on 25.12identifying and intervening with sexually 25.13exploited and trafficked youth;25.14(2) conduct statewide training for law 25.15enforcement and prosecutors on the model 25.16protocol and the Safe Harbor Law described 25.17in Laws 2011, First Special Session chapter 25.181, article 4, as modified by Senate File No. 25.19384, article 2, if enacted; and25.20(3) develop and disseminate to law 25.21enforcement, prosecutors, and others, who 25.22in their professional capacity encounter 25.23sexually exploited and trafficked youth, on 25.24investigative best practices to identify sex 25.25trafficked victims and traffickers.25.26The Ramsey County attorney may use the 25.27money appropriated in this paragraph to 25.28partner with other entities to implement 25.29clauses (1) to (3).25.30By January 15, 2015, the Ramsey County 25.31Attorney's Office shall report to the chairs 25.32and ranking minority members of the senate 25.33and house of representatives committees and 25.34divisions having jurisdiction over criminal 26.1justice policy and funding on how this 26.2appropriation was spent.26.3These appropriations are onetime.26.4(f) Returning Veterans in Crisis26.5$50,000 each year is for a grant to the Upper 26.6Midwest Community Policing Institute for 26.7use in training community safety personnel 26.8about the use of de-escalation strategies 26.9for handling returning veterans in crisis. 26.10This is a onetime appropriation, and the 26.11unencumbered balance in the first year does 26.12not cancel but is available for the second 26.13year. The commissioner shall consult with 26.14the Peace Officers Standards and Training 26.15(POST) Board regarding the design and 26.16content of the course, and must also ensure 26.17that the training opportunities are reasonably 26.18distributed throughout the state.26.19(g) Juvenile Detention Alternative 26.20Initiative26.21$50,000 each year is for a grant to the 26.22Juvenile Detention Alternative Initiative. 26.23This is a onetime appropriation, and funds 26.24unexpended in the first year are available in 26.25the second year.26.26(h) Emergency Shelters26.27$300,000 in fiscal year 2015 is for a grant to 26.28provide emergency shelter programming for 26.29victims of domestic abuse and trafficking. 26.30The program shall provide shelter to East 26.31African women and children and other 26.32victims of domestic violence in Minnesota. 26.33The appropriations must be used for the 26.34operating expenses of a shelter.27.1This is a onetime appropriation.27.2(i) De-escalation Training27.3$50,000 in fiscal year 2015 is appropriated to 27.4the commissioner of public safety for training 27.5state and local community safety personnel 27.6in the use of crisis de-escalation techniques. 27.7The commissioner must consult with the 27.8director of the Minnesota Peace Officers and 27.9Training Board, and may consult with any 27.10other state or local governmental official or 27.11nongovernmental authority the commissioner 27.12determines to be relevant, to include 27.13postsecondary institutions, when selecting a 27.14service provider for this training. Among any 27.15other criteria the commissioner may establish 27.16for the selection, the training provider must 27.17have a demonstrated understanding of the 27.18transitions and challenges that veterans may 27.19experience during their re-entry into society 27.20following combat service. The commissioner 27.21must ensure that training opportunities 27.22provided are reasonably distributed 27.23statewide. This is a onetime appropriation.27.24    Sec. 11. Laws 2013, chapter 86, article 1, section 12, subdivision 7, is amended to read:

27.2527.26Subd. 7.Emergency Communication Networks59,138,00064,197,00063,639,000 70,504,000

27.27This appropriation is from the state 27.28government special revenue fund for 911 27.29emergency telecommunications services.27.30 The base appropriation is $63,639,000 in 27.31each of fiscal years 2016 and 2017.

27.32(a) Public Safety Answering Points

28.1$13,664,000 each year is to be distributed 28.2as provided in Minnesota Statutes, section 28.3403.113, subdivision 2
         .

28.4(b) Medical Resource Communication Centers

28.5$683,000 each year is for grants to the 28.6Minnesota Emergency Medical Services 28.7Regulatory Board for the Metro East 28.8and Metro West Medical Resource 28.9Communication Centers that were in 28.10operation before January 1, 2000.

28.11(c) ARMER Debt Service

28.12$23,261,000 each year is to the commissioner 28.13of management and budget to pay debt 28.14service on revenue bonds issued under 28.15Minnesota Statutes, section 
         403.275.28.16Any portion of this appropriation not needed 28.17to pay debt service in a fiscal year may be 28.18used by the commissioner of public safety to 28.19pay cash for any of the capital improvements 28.20for which bond proceeds were appropriated 28.21by Laws 2005, chapter 136, article 1, section 28.229, subdivision 8; or Laws 2007, chapter 54, 28.23article 1, section 10, subdivision 8.

28.24(d) ARMER State Backbone Operating Costs

28.25$9,250,000 the first year and $9,650,000 28.26the second year are to the commissioner of 28.27transportation for costs of maintaining and 28.28operating the first and third phases of the 28.29statewide radio system backbone.

28.30(e) ARMER Improvements

28.31$1,000,000 each year is to the Statewide 28.32Radio Board for costs of design, construction, 28.33and maintenance of, and improvements 28.34to, those elements of the statewide public 29.1safety radio and communication system 29.2that support mutual aid communications 29.3and emergency medical services or provide 29.4interim enhancement of public safety 29.5communication interoperability in those 29.6areas of the state where the statewide public 29.7safety radio and communication system is 29.8not yet implemented.29.9    Sec. 12. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

29.10Subd. 2.Multimodal Systems

29.11(a) Aeronautics

29.1229.13(1) Airport Development and Assistance13,648,00014,648,00013,648,00016,648,000

29.14This appropriation is from the state 29.15airports fund and must be spent according 29.16to Minnesota Statutes, section 
         360.305, 29.17subdivision 4
         .29.18The base appropriation for fiscal years 2016 29.19and 2017 is $14,298,000 for each year.29.20Notwithstanding Minnesota Statutes, section 29.2116A.28, subdivision 6
         , this appropriation is 29.22available for five years after appropriation. 29.23If the appropriation for either year is 29.24insufficient, the appropriation for the other 29.25year is available for it.29.26For the current biennium, the commissioner 29.27of transportation may establish different 29.28local contribution rates for airport projects 29.29than those established in Minnesota Statutes, 29.30section 360.305, subdivision 4.

29.31(2) Aviation Support and Services6,386,0006,386,000

30.1Appropriations by Fund30.2Airports5,286,0005,286,00030.3Trunk Highway1,100,0001,100,000

30.4$65,000 in each year is from the state airports 30.5fund for the Civil Air Patrol.

30.630.7(b) Transit17,226,00017,245,000 25,245,000

30.8Appropriations by Fund30.930.10General16,451,00016,470,000 24,470,00030.11Trunk Highway775,000775,000

30.12$100,000 in each year is from the general 30.13fund for the administrative expenses of the 30.14Minnesota Council on Transportation Access 30.15under Minnesota Statutes, section 
         174.285.30.16$78,000 in each year is from the general 30.17fund for grants to greater Minnesota transit 30.18providers as reimbursement for the costs of 30.19providing fixed route public transit rides free 30.20of charge under Minnesota Statutes, section 30.21174.24, subdivision 7
         , for veterans certified 30.22as disabled.30.23The base appropriation from the general fund 30.24for fiscal years 2016 and 2017 is $20,470,000 30.25for each year.

30.26(c) Passenger Rail500,000500,000

30.27This appropriation is from the general 30.28fund for passenger rail system planning, 30.29alternatives analysis, environmental analysis, 30.30design, and preliminary engineering under 30.31Minnesota Statutes, sections 
         174.632 to 30.32174.636
         .

30.33(d) Freight5,653,0005,153,000

31.1Appropriations by Fund31.2General756,000256,00031.3Trunk Highway4,897,0004,897,000

31.4$500,000 in the first year is from the general 31.5fund to pay for the department's share of costs 31.6associated with the cleanup of contaminated 31.7state rail bank property. This appropriation is 31.8available until expended.

31.931.10(e) Safe Routes to School250,000250,000 500,000

31.11This appropriation $250,000 in the first 31.12year and $500,000 in the second year  is 31.13from the general fund for non-infrastructure 31.14activities in the safe routes to school program 31.15under Minnesota Statutes, section 
         174.40, 31.16subdivision 7a
         .31.17EFFECTIVE DATE.This section is effective the day following final enactment.31.18    Sec. 13. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:

31.19Subd. 3.State Roads

31.2031.21(a) Operations and Maintenance262,395,000267,395,000262,395,000 300,395,000

31.22$5,000,000 in each year is from the trunk 31.23highway fund for accelerated replacement of 31.24snow plowing equipment.31.25The base appropriation for operations and 31.26maintenance for fiscal years 2016 and 2017 31.27is $267,395,000 in each year.

31.2831.29(b) Program Planning and Delivery206,795,000206,720,000209,720,000

31.30Appropriations by Fund31.312014201531.32H.U.T.D.75,000031.3331.34Trunk Highway206,720,000206,720,000209,720,000

32.1The base appropriation for program planning 32.2and delivery for fiscal years 2016 and 2017 32.3is $206,720,000 in each year.32.4$250,000 in each year is for the department's 32.5administrative costs for creation and 32.6operation of the Joint Program Office for 32.7Economic Development and Alternative 32.8Finance, including costs of hiring a 32.9consultant and preparing required reports.32.10$130,000 in each year is available for 32.11administrative costs of the targeted group 32.12business program.32.13$266,000 in each year is available for grants 32.14to metropolitan planning organizations 32.15outside the seven-county metropolitan area.32.16$75,000 in each year is available for a 32.17transportation research contingent account 32.18to finance research projects that are 32.19reimbursable from the federal government or 32.20from other sources. If the appropriation for 32.21either year is insufficient, the appropriation 32.22for the other year is available for it.32.23$900,000 in each year is available for 32.24grants for transportation studies outside 32.25the metropolitan area to identify critical 32.26concerns, problems, and issues. These 32.27grants are available: (1) to regional 32.28development commissions; (2) in regions 32.29where no regional development commission 32.30is functioning, to joint powers boards 32.31established under agreement of two or 32.32more political subdivisions in the region to 32.33exercise the planning functions of a regional 32.34development commission; and (3) in regions 32.35where no regional development commission 33.1or joint powers board is functioning, to the 33.2department's district office for that region.33.3$75,000 in the first year is from the highway 33.4user tax distribution fund to the commissioner 33.5for a grant to the Humphrey School of Public 33.6Affairs at the University of Minnesota for 33.7WorkPlace Telework program congestion 33.8relief efforts consisting of maintenance of 33.9Web site tools and content. This is a onetime 33.10appropriation and is available in the second 33.11year.

33.12(c) State Road Construction Activity

33.1333.14(1) Economic Recovery Funds - Federal Highway Aid1,000,0001,000,000

33.15This appropriation is to complete projects 33.16using funds made available to the 33.17commissioner of transportation under 33.18title XII of the American Recovery and 33.19Reinvestment Act of 2009, Public Law 33.20111-5, and implemented under Minnesota 33.21Statutes, section 
         161.36, subdivision 7. The 33.22base appropriation is $1,000,000 in fiscal 33.23year 2016 and $0 in fiscal year 2017.

33.2433.25(2) State Road Construction909,400,000923,400,000815,600,000 816,425,000

33.26It is estimated that these appropriations will 33.27be funded as follows:

33.28Appropriations by Fund33.2933.30Federal Highway 
                  		Aid489,200,000482,200,00033.3133.32Highway User Taxes420,200,000434,200,000333,400,000334,225,000

33.33The commissioner of transportation shall 33.34notify the chairs and ranking minority 33.35members of the legislative committees with 33.36jurisdiction over transportation finance of 34.1any significant events that should cause these 34.2estimates to change.34.3This appropriation is for the actual 34.4construction, reconstruction, and 34.5improvement of trunk highways, including 34.6design-build contracts and consultant usage 34.7to support these activities. This includes the 34.8cost of actual payment to landowners for 34.9lands acquired for highway rights-of-way, 34.10payment to lessees, interest subsidies, and 34.11relocation expenses.34.12The base appropriation for state road 34.13construction for fiscal years 2016 and 2017 34.14is $645,000,000 $645,567,000 in each year.34.15$10,000,000 in each year is from the 34.16trunk highway fund for the transportation 34.17economic development program under 34.18Minnesota Statutes, section 
         174.12.34.19The commissioner may expend up to one-half 34.20of one percent of the federal appropriations 34.21under this clause as grants to opportunity 34.22industrialization centers and other nonprofit 34.23job training centers for job training programs 34.24related to highway construction.34.25The commissioner may transfer up to 34.26$15,000,000 each year from the trunk 34.27highway fund to the transportation revolving 34.28loan fund.34.29The commissioner may receive money 34.30covering other shares of the cost of 34.31partnership projects. These receipts are 34.32appropriated to the commissioner for these 34.33projects.35.1$14,000,000 in the first year is from the trunk 35.2highway fund for the specific improvements 35.3to "Old Highway 14" described in the 35.4settlement agreement and release executed 35.5January 7, 2014, between the state and Steele 35.6and Waseca Counties.35.7$825,000 in the second year is from the trunk 35.8highway fund for costs of implementing 35.9highway work zone safety initiatives. 35.10The base appropriation for this purpose is 35.11$567,000 in each of fiscal years 2016 and 35.122017.

35.13(d) Highway Debt Service158,417,000189,821,000

35.14$148,917,000 in the first year and 35.15$180,321,000 in the second year are for 35.16transfer to the state bond fund. If an 35.17appropriation is insufficient to make all 35.18transfers required in the year for which it is 35.19made, the commissioner of management and 35.20budget shall notify the senate Committee 35.21on Finance and the house of representatives 35.22Committee on Ways and Means of the 35.23amount of the deficiency and shall then 35.24transfer that amount under the statutory open 35.25appropriation. Any excess appropriation 35.26cancels to the trunk highway fund.

35.27(e) Electronic Communications5,171,0005,171,000

35.28Appropriations by Fund35.29General3,0003,00035.30Trunk Highway5,168,0005,168,000

35.31The general fund appropriation is to equip 35.32and operate the Roosevelt signal tower for 35.33Lake of the Woods weather broadcasting.35.34EFFECTIVE DATE.This section is effective the day following final enactment.36.1    Sec. 14. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:

36.2Subd. 6.Transfers

36.3(a) With the approval of the commissioner of 36.4management and budget, the commissioner 36.5of transportation may transfer unencumbered 36.6balances among the appropriations from the 36.7trunk highway fund and the state airports 36.8fund made in this section. No transfer 36.9may be made from the appropriations for 36.10state road construction or for debt service. 36.11Transfers under this paragraph may not be 36.12made between funds. Transfers under this 36.13paragraph must be reported immediately to 36.14the chairs and ranking minority members of 36.15the legislative committees with jurisdiction 36.16over transportation finance.36.17(b) The commissioner shall transfer from 36.18the flexible highway account in the county 36.19state-aid highway fund: (1) $5,700,000 in the 36.20first year and $21,000,000 in the second year 36.21to the trunk highway fund; (2) $13,000,000 36.22in the first year to the municipal turnback 36.23account in the municipal state-aid street fund; 36.24(3) $10,000,000 in the second year to the 36.25municipal turnback account in the municipal 36.26state-aid street fund; and (4) the remainder 36.27in each year to the county turnback account 36.28in the county state-aid highway fund. The 36.29funds transferred are for highway turnback 36.30purposes as provided under Minnesota 36.31Statutes, section 
         161.081, subdivision 3.36.32    Sec. 15. Laws 2013, chapter 117, article 1, section 4, is amended to read:

36.3336.34Sec. 4. METROPOLITAN COUNCIL$107,889,000$76,970,000 76,910,000

37.1This appropriation is from the general fund 37.2for transit system operations under Minnesota 37.3Statutes, sections 
         473.371 to 
         473.449.37.4The base appropriation for fiscal years 2016 37.5and 2017 is $76,686,000 $76,626,000 in 37.6each year.37.7$37,000,000 in the first year is for the 37.8Southwest Corridor light rail transit line 37.9from the Hiawatha light rail transit line in 37.10downtown Minneapolis to Eden Prairie, to be 37.11used for environmental studies, preliminary 37.12engineering, acquisition of real property, or 37.13interests in real property, and design. This 37.14is a onetime appropriation and is available 37.15until expended.37.16    Sec. 16. Laws 2013, chapter 117, article 1, section 5, subdivision 2, is amended to read:

37.17Subd. 2.Administration and Related Services 

37.18(a) Office of Communications504,000504,000

37.19Appropriations by Fund37.20General111,000111,00037.21Trunk Highway393,000393,000

37.2237.23(b) Public Safety Support8,439,0008,439,0008,499,000

37.24Appropriations by Fund37.2537.26General3,467,0003,467,0003,527,00037.27H.U.T.D.1,366,0001,366,00037.28Trunk Highway3,606,0003,606,000

37.29$380,000 in each year is from the general 37.30fund for payment of public safety officer 37.31survivor benefits under Minnesota Statutes, 37.32section 
         299A.44. If the appropriation for 37.33either year is insufficient, the appropriation 37.34for the other year is available for it.38.1$1,367,000 in each year is from the general 38.2fund to be deposited in the public safety 38.3officer's benefit account. This money 38.4is available for reimbursements under 38.5Minnesota Statutes, section 
         299A.465.38.6$600,000 in each year is from the general 38.7fund and $100,000 in each year is from the 38.8trunk highway fund for soft body armor 38.9reimbursements under Minnesota Statutes, 38.10section 
         299A.38.38.11$792,000 in each year is from the general 38.12fund for transfer by the commissioner of 38.13management and budget to the trunk highway 38.14fund on December 31, 2013, and December 38.1531, 2014, respectively, in order to reimburse 38.16the trunk highway fund for expenses not 38.17related to the fund. These represent amounts 38.18appropriated out of the trunk highway 38.19fund for general fund purposes in the 38.20administration and related services program.38.21$610,000 in each year is from the highway 38.22user tax distribution fund for transfer by the 38.23commissioner of management and budget 38.24to the trunk highway fund on December 31, 38.252013, and December 31, 2014, respectively, 38.26in order to reimburse the trunk highway 38.27fund for expenses not related to the fund. 38.28These represent amounts appropriated out 38.29of the trunk highway fund for highway 38.30user tax distribution fund purposes in the 38.31administration and related services program.38.32$716,000 in each year is from the highway 38.33user tax distribution fund for transfer by the 38.34commissioner of management and budget to 38.35the general fund on December 31, 2013, and 39.1December 31, 2014, respectively, in order to 39.2reimburse the general fund for expenses not 39.3related to the fund. These represent amounts 39.4appropriated out of the general fund for 39.5operation of the criminal justice data network 39.6related to driver and motor vehicle licensing.39.7Before January 15, 2015, the commissioner 39.8of public safety shall review the amounts and 39.9purposes of the transfers under this paragraph 39.10and shall recommend necessary changes to 39.11the legislative committees with jurisdiction 39.12over transportation finance.39.13$60,000 in the second year is appropriated 39.14from the general fund for light rail safety 39.15oversight. The base appropriation from the 39.16general fund for this purpose in fiscal years 39.172016 and 2017 is $60,000 each year.

39.18(c) Technology and Support Service3,685,0003,685,000

39.19Appropriations by Fund39.20General1,322,0001,322,00039.21H.U.T.D. 19,00019,00039.22Trunk Highway2,344,0002,344,000

39.23    Sec. 17. Laws 2013, chapter 117, article 1, section 5, subdivision 3, is amended to read:

39.24Subd. 3.State Patrol

39.25(a) Patrolling Highways72,522,00072,522,000

39.26Appropriations by Fund39.27General37,00037,00039.28H.U.T.D. 92,00092,00039.29Trunk Highway72,393,00072,393,000

39.30(b) Commercial Vehicle Enforcement7,796,0007,796,000

39.3139.32(c) Capitol Security4,355,0004,355,000 5,355,000

39.33This appropriation is from the general fund.40.1$1,250,000 in each year2014 and $2,250,000 40.2in 2015 and each subsequent year is to 40.3implement the recommendations of the 40.4advisory committee on Capitol Area Security 40.5under Minnesota Statutes, section 
         299E.04, 40.6including the creation of an emergency 40.7manager position under Minnesota Statutes, 40.8section 
         299E.01, subdivision 2, and an 40.9increase in the number of State Patrol 40.10troopers and other security officers assigned 40.11to the Capitol complex.40.12The commissioner may not: (1) spend 40.13any money from the trunk highway fund 40.14for capitol security; or (2) permanently 40.15transfer any state trooper from the patrolling 40.16highways activity to capitol security.40.17The commissioner may not transfer any 40.18money appropriated to the commissioner 40.19under this section: (1) to capitol security; or 40.20(2) from capitol security.

40.21(d) Vehicle Crimes Unit693,000693,000

40.22This appropriation is from the highway user 40.23tax distribution fund.40.24This appropriation is to investigate: (1) 40.25registration tax and motor vehicle sales tax 40.26liabilities from individuals and businesses 40.27that currently do not pay all taxes owed; 40.28and (2) illegal or improper activity related 40.29to sale, transfer, titling, and registration of 40.30motor vehicles.40.31    Sec. 18. Laws 2013, chapter 117, article 1, section 5, subdivision 4, is amended to read:

40.32Subd. 4.Driver and Vehicle Services

40.3340.34(a) Vehicle Services27,909,00028,430,00028,453,000

41.1Appropriations by Fund41.241.3Special Revenue19,673,00019,771,00020,217,00041.4H.U.T.D. 8,236,0008,236,000

41.5The special revenue fund appropriation is 41.6from the vehicle services operating account.41.7$650,000 in each year is from the special 41.8revenue fund for seven additional positions 41.9to enhance customer service related to 41.10vehicle title issuance.41.11$521,000 in the second year is from 41.12the special revenue fund for the vehicle 41.13services portion of a new telephone 41.14system and is for transfer to the Office of 41.15Enterprise Technology for construction and 41.16development of the system. This is a onetime 41.17appropriation and is available until expended.41.18$23,000 in the second year is from the special 41.19revenue fund for expenses related to the task 41.20force on motor vehicle insurance coverage 41.21verification.41.22The base appropriation from the special 41.23revenue fund is $27,909,000$19,673,000 41.24for fiscal year 2016 and $27,909,00041.25$19,673,000 for fiscal year 2017.

41.2641.27(b) Driver Services28,749,00029,162,000 29,185,000

41.28Appropriations by Fund41.2941.30Special Revenue28,748,00029,161,000 29,184,00041.31Trunk Highway1,0001,000

41.32The special revenue fund appropriation is 41.33from the driver services operating account.42.1$71,000 in the second year is from the special 42.2revenue fund for one additional position 42.3related to facial recognition.42.4$279,000 in the second year is from 42.5the special revenue fund for the driver 42.6services portion of a new telephone 42.7system and is for transfer to the Office of 42.8Enterprise Technology for construction and 42.9development of the system. This is a onetime 42.10appropriation and is available until expended.42.11$37,000 in the first year and $33,000 in the 42.12second year are from the special revenue 42.13fund for one half-time position to assist with 42.14the Novice Driver Improvement Task Force 42.15under Minnesota Statutes, section 
         171.0701, 42.16subdivision 1a
         . The base appropriation for 42.17this position is $6,000 in fiscal year 2016 and 42.18$0 in fiscal year 2017.42.19$67,000 in the second year is from the 42.20special revenue fund for one new position to 42.21administer changes to the ignition interlock 42.22program. The base appropriation for this 42.23position in fiscal years 2016 and 2017 is 42.24$62,000 in each year.42.25$23,000 in the second year is from the special 42.26revenue fund for expenses related to the task 42.27force on motor vehicle insurance coverage 42.28verification.42.29The base appropriation from the special 42.30revenue fund is $28,851,000$28,850,000 42.31for fiscal year 2016 and $28,845,00042.32$28,844,000 for fiscal year 2017.42.33    Sec. 19. TRANSFER; EMERGENCY MANAGEMENT.43.1On July 1, 2014, the commissioner of management and budget shall transfer 43.2$3,000,000 from the general fund to the disaster assistance contingency account created 43.3in 2014 Senate File No. 2601, if enacted.43.4ARTICLE 343.5RAILROAD SAFETY43.6    Section 1. Minnesota Statutes 2012, section 115E.08, is amended by adding a 43.7subdivision to read:43.8    Subd. 3a.Railroad preparedness; public safety.The commissioner of public 43.9safety shall carry out public safety protection activities related to railroad spill and 43.10discharge preparedness. Duties under this subdivision include, but are not limited to:43.11(1) assisting local emergency managers and fire officials to understand the hazards 43.12of oil and hazardous substances, as well as general strategies for hazard identification, 43.13initial isolation, and other actions necessary to ensure public safety;43.14(2) assisting railroad companies to develop suggested protocols and practices for 43.15local first responder use in protecting the public's safety;43.16(3) facilitating cooperation between railroads, county and city emergency managers, 43.17and other public safety organizations;43.18(4) participating in major exercises and training sessions;43.19(5) assisting local units of government to incorporate railroad hazard and response 43.20information into local emergency operations plans;43.21(6) monitoring the public safety-related training and planning requirements of 43.22section 115E.03; and43.23(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.43.24EFFECTIVE DATE.This section is effective the day following final enactment.43.25    Sec. 2. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:43.26    Subdivision 1. Position Positions established; duties.(a) The commissioner of 43.27transportation shall establish a position of three state rail safety inspector positions in 43.28the Office of Freight and Commercial Vehicle Operations of the Minnesota Department 43.29of Transportation. On or after July 1, 2015, the commissioner may establish a fourth 43.30state rail safety inspector position following consultation with railroad companies.43.31 The commissioner shall apply to and enter into agreements with the Federal Railroad 43.32Administration (FRA) of the United States Department of Transportation to participate 43.33in the federal State Rail Safety Partnership Participation Program for training and 44.1certification of an inspector under authority of United States Code, title 49, sections 20103, 44.220105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.44.3     The(b) A state rail safety inspector shall inspect mainline track, secondary track, and 44.4yard and industry track; inspect railroad right-of-way, including adjacent or intersecting 44.5drainage, culverts, bridges, overhead structures, and traffic and other public crossings; 44.6inspect yards and physical plants; review and enforce safety requirements; review 44.7maintenance and repair records; and review railroad security measures.44.8(c) A state rail safety inspector may perform, but is not limited to, the duties 44.9described in the federal State Rail Safety Participation Program. An inspector may train, 44.10be certified, and participate in any of the federal State Rail Safety Participation Program 44.11disciplines, including: track, signal and train control, motive power and equipment, 44.12operating practices compliance, hazardous materials, and highway-rail grade crossings.44.13    (d) To the extent delegated by the Federal Railroad Administration and authorized44.14 by the commissioner, the an inspector may issue citations for violations of this chapter, or 44.15to ensure railroad employee and public safety and welfare.44.16EFFECTIVE DATE.This section is effective the day following final enactment.44.17    Sec. 3. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:44.18    Subd. 2. Railroad company assessment; account; appropriation.(a) As provided 44.19in this subdivision, the commissioner shall annually assess railroad companies that are 44.20(1) defined as common carriers under section 
         218.011,; (2) classified by federal law or 44.21regulation as Class I Railroads,or Class I Rail Carriers, Class II Railroads, or Class II 44.22Carriers; and (3) operating in this state,.44.23    (b) The assessment must be by a division of state rail safety inspector program costs 44.24in equal proportion between carriers based on route miles operated in Minnesota, assessed 44.25in equal amounts for 365 days of the calendar year. The commissioner shall assess all 44.26start-up or re-establishment costs, and all related costs of initiating the state rail safety 44.27inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties 44.28must begin and be assessed on January 1, 2009.44.29    (c) The assessments must be deposited in a special account in the special revenue 44.30fund, to be known as the state rail safety inspection account. Money in the account is 44.31appropriated to the commissioner and may be expended to cover the costs incurred for the 44.32establishment and ongoing responsibilities of the state rail safety inspector program.44.33EFFECTIVE DATE.This section is effective the day following final enactment.45.1    Sec. 4. [299A.55] RAILROAD SAFETY; OIL AND OTHER HAZARDOUS 45.2MATERIALS.45.3    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 45.4have the meanings given.45.5(b) "Applicable rail carrier" means a railroad company that is subject to an 45.6assessment under section 219.015, subdivision 2.45.7(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.45.8(d) "Oil" has the meaning given in section 115E.01, subdivision 8.45.9    Subd. 2.Railroad safety account.(a) A railroad safety account is created in the 45.10special revenue fund. The account consists of funds collected under subdivision 4 and 45.11funds donated, allotted, transferred, or otherwise provided to the account.45.12(b) Money in the account is annually appropriated to the commissioner of public 45.13safety for the purposes specified in subdivision 3.45.14    Subd. 3.Allocation of railroad safety funds.(a) Subject to funding appropriated 45.15for this subdivision, the commissioner shall provide funds for training and response 45.16preparedness related to derailments, discharge incidents, or spills involving trains carrying 45.17oil or other hazardous substances.45.18(b) The commissioner shall allocate available funds to the Board of Firefighter 45.19Training and Education under section 299N.02 and the Division of Homeland Security 45.20and Emergency Management.45.21(c) Prior to making allocations under paragraph (b), the commissioner shall consult 45.22with the Fire Service Advisory Committee under section 299F.012, subdivision 2.45.23(d) The commissioner and the entities identified in paragraph (b) shall prioritize 45.24uses of funds based on:45.25(1) firefighter training needs;45.26(2) community risk from discharge incidents or spills;45.27(3) geographic balance; and45.28(4) recommendations of the Fire Service Advisory Committee.45.29(e) The following are permissible uses of funds provided under this subdivision:45.30(1) training costs, which may include, but are not limited to, training curriculum, 45.31trainers, trainee overtime salary, other personnel overtime salary, and tuition;45.32(2) costs of gear and equipment related to hazardous materials readiness, response, 45.33and management, which may include, but are not limited to, original purchase, 45.34maintenance, and replacement;45.35(3) supplies related to the uses under clauses (1) and (2); and45.36(4) emergency preparedness planning and coordination.46.1(f) Notwithstanding paragraph (b), from funds in the railroad safety account 46.2provided for the purposes under this subdivision, the commissioner may retain a balance 46.3in the account for budgeting in subsequent fiscal years.46.4    Subd. 4.Assessment; oil and hazardous substances.(a) The commissioner of 46.5public safety shall annually assess $1,250,000 to railroad companies based on the formula 46.6specified in paragraph (b). The commissioner shall deposit funds collected under this 46.7subdivision in the railroad safety account under subdivision 2.46.8(b) The assessment for each railroad is the total annual assessment amount, divided 46.9in equal proportion between applicable rail carriers based on route miles operated in 46.10Minnesota.46.11(c) This subdivision expires on July 1, 2016.46.12    Sec. 5. LEGISLATIVE REPORT ON INCIDENT PREPAREDNESS FOR OIL 46.13AND OTHER HAZARDOUS MATERIALS TRANSPORTATION BY RAIL.46.14By January 15, 2015, the commissioner of public safety shall submit a report on 46.15incident and emergency response preparedness for oil and other hazardous materials 46.16transported by rail to the chairs and ranking minority members of the legislative 46.17committees with jurisdiction over transportation and public safety policy and finance. 46.18At a minimum, the report must:46.19(1) summarize the preparedness and emergency response framework in the state;46.20(2) provide an assessment of costs and needs of fire departments and other 46.21emergency first responders for training and equipment to respond to discharge or spill 46.22incidents involving oil and other hazardous materials transported by rail;46.23(3) summarize the allocation and uses of funds under Minnesota Statutes, section 46.24299A.55; and46.25(4) provide recommendations for any legislative changes.46.26    Sec. 6. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND 46.27RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS 46.28TRANSPORTATION.46.29(a) The commissioner of transportation shall conduct a study on highway-rail grade 46.30crossing improvements for oil and other hazardous materials transported by rail, and on 46.31rail safety. At a minimum, the study must:46.32(1) provide information that assists in risk management associated with 46.33transportation of oil and other hazardous materials by rail;47.1(2) develop criteria to prioritize needs and improvements at highway-rail grade 47.2crossings;47.3(3) consider alternatives for safety improvements including, but not limited to, active 47.4warning devices such as gates and signals, closings, and grade separation;47.5(4) provide findings and recommendations that serve to direct accelerated 47.6investments in highway-rail grade crossing safety improvements; and47.7(5) analyze state inspection activities and staffing for track and hazardous materials 47.8under Minnesota Statutes, section 219.015.47.9(b) The commissioner shall submit an interim update on the study by August 31, 47.102014, and a final report by October 31, 2014, to the chairs and ranking minority members 47.11of the legislative committees with jurisdiction over transportation policy and finance.47.12EFFECTIVE DATE.This section is effective the day following final enactment.47.13ARTICLE 447.14TRANSPORTATION FINANCE PROVISIONS47.15    Section 1. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:47.16    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the 47.17account may be used by the commissioner of transportation for operations and routine 47.18maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive 47.19repairs. No money from this account may be used for any purposes except those described 47.20in this section, and no money from this account may be transferred to any other account 47.21in the state treasury without specific legislative authorization. Any money transferred 47.22from the trunk highway fund may only be used for trunk highway purposes. For the 47.23purposes of this section:47.24(1) "Income" is the amount of interest on debt securities and dividends on equity 47.25securities. Any gains or losses from the sale of securities must be added to the principal 47.26of the account.47.27(2) "Routine maintenance" means activities that are predictable and repetitive, but 47.28not activities that would constitute major repairs or rehabilitation.47.29(b) Investment management fees incurred by the State Board of Investment are 47.30eligible expenses for reimbursement from the account.47.31(c) The commissioner of transportation has authority to approve or deny expenditures 47.32of funds in the account.47.33    Sec. 2. [168.1299] MINNESOTA GOLF PLATES.48.1    Subdivision 1.Issuance and design.Notwithstanding section 168.1293, the 48.2commissioner shall issue special Minnesota golf plates or a single motorcycle plate to 48.3an applicant who:48.4(1) is a registered owner of a passenger automobile, one-ton pickup truck, 48.5motorcycle, or recreational vehicle;48.6(2) pays a fee of $10 and any other fees required by this chapter;48.7(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota 48.8Section PGA Foundation account; and48.9(4) complies with this chapter and rules governing registration of motor vehicles 48.10and licensing of drivers.48.11    Subd. 2.Design.After consultation with the Minnesota Section PGA and the 48.12Minnesota Golf Association, the commissioner shall design the special plate.48.13    Subd. 3.Plates transfer.On payment of a fee of $5, plates issued under this section 48.14may be transferred to another passenger automobile, one-ton pickup truck, motorcycle, 48.15or other recreational vehicle registered to the individual to whom the special plates were 48.16issued.48.17    Subd. 4.Fees.Fees collected under subdivision 1, clause (2), and subdivision 3 are 48.18credited to the vehicle services operating account in the special revenue fund.48.19    Subd. 5.Contributions.Contributions collected under subdivision 1, clause (3), 48.20are credited first to the commissioner of public safety for the cost of administering the 48.21Minnesota Section PGA Foundation account, which is established in the special revenue 48.22fund. After the commissioner's administration costs are paid each year, remaining 48.23contributions are credited to the Minnesota Section PGA Foundation account. Money in 48.24the account is appropriated to the commissioner of public safety for distribution to the 48.25Minnesota Section PGA Foundation, to be used to enhance and promote the game of 48.26golf throughout Minnesota.48.27EFFECTIVE DATE.Subdivisions 1 to 4 are effective January 1, 2015, for special 48.28Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.48.29    Sec. 3. Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision 48.30to read:48.31    Subd. 95.Work zone."Work zone" means a segment of street or highway for which:48.32(1) a road authority or its agent is constructing, reconstructing, or maintaining the 48.33physical structure of the roadway, which may include, but is not limited to, shoulders, 48.34features adjacent to the roadway, and utilities and highway appurtenances, whether 48.35underground or overhead; and49.1(2) any of the following applies:49.2(i) official traffic-control devices that indicate the segment of street or highway under 49.3construction, reconstruction, or maintenance, are erected;49.4(ii) one or more lanes of traffic are closed;49.5(iii) a flagger under section 169.06, subdivision 4a, is present;49.6(iv) a construction zone speed limit under section 169.14, subdivision 4, is 49.7established; or49.8(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.49.9EFFECTIVE DATE.This section is effective August 1, 2014.49.10    Sec. 4. Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:49.11    Subd. 4. Obedience to traffic-control signal or flagger authorized persons; 49.12presumptions. (a) The driver of any vehicle shall obey the instructions of any official 49.13traffic-control device applicable thereto placed in accordance with the provisions of this 49.14chapter, unless otherwise directed by a police officer or by a flagger authorized under this 49.15subdivision, subject to the exceptions granted the driver of an authorized emergency 49.16vehicle in this chapter.49.17(b) No provision of this chapter for which official traffic-control devices are required 49.18shall be enforced against an alleged violator if at the time and place of the alleged 49.19violation an official device is not in proper position and sufficiently legible to be seen by 49.20an ordinarily observant person. Whenever a particular section does not state that official 49.21traffic-control devices are required, such section shall be effective even though no devices 49.22are erected or in place.49.23(c) Whenever official traffic-control devices are placed in position approximately 49.24conforming to the requirements of this chapter, such devices shall be presumed to have 49.25been so placed by the official act or direction of lawful authority, unless the contrary 49.26shall be established by competent evidence.49.27(d) Any official traffic-control device placed pursuant to the provisions of this 49.28chapter and purporting to conform to the lawful requirements pertaining to such devices 49.29shall be presumed to comply with the requirements of this chapter, unless the contrary 49.30shall be established by competent evidence.49.31(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place 49.32until it is safe for the vehicles to proceed. A person operating a motor vehicle that has 49.33been stopped by a flagger in a designated work zone may proceed after stopping only on 49.34instruction by the flagger.50.1(f) An overdimensional load escort driver with a certificate issued under section 50.2299D.085
         , while acting as a flagger escorting a legal overdimensional load, may stop 50.3vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person 50.4operating a motor vehicle that has been stopped by an escort driver acting as a flagger may 50.5proceed only on instruction by the flagger or a police officer.50.6(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to 50.7proceed, if the person: (1) holds a motorcycle road guard certificate issued under section 50.8171.60
         ; (2) meets the safety and equipment standards for operating under the certificate; 50.9(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory 50.10or home rule charter city through which the motorcycle group is proceeding; and (5) 50.11has obtained consent from the chief of police, or the chief's designee, of any city of the 50.12first class through which the group is proceeding. A flagger operating as provided under 50.13this paragraph may direct operators of motorcycles within a motorcycle group ride or 50.14other vehicle traffic, notwithstanding any contrary indication of a traffic-control device, 50.15including stop signs or traffic-control signals. A person operating a vehicle that has been 50.16stopped by a flagger under this paragraph may proceed only on instruction by the flagger 50.17or a police officer.50.18EFFECTIVE DATE.This section is effective August 1, 2014.50.19    Sec. 5. Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision 50.20to read:50.21    Subd. 4a.Obedience to work zone flagger; violation, penalty.(a) A flagger in a 50.22work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to 50.23proceed. A person operating a motor vehicle that has been stopped by a flagger in a work 50.24zone may proceed after stopping only on instruction by the flagger or a police officer.50.25(b) A person convicted of operating a motor vehicle in violation of a speed limit 50.26in a work zone, or any other provision of this section while in a work zone, shall be 50.27required to pay a fine of $300. This fine is in addition to the surcharge under section 50.28357.021, subdivision 6.50.29(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the 50.30vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty 50.31misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may 50.32not be fined under this paragraph if (1) another person is convicted for that violation, or (2) 50.33the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a 50.34lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.51.1(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle 51.2operator for violating paragraph (a).51.3(e) A violation under paragraph (c) does not constitute grounds for revocation or 51.4suspension of a driver's license.51.5EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 51.6violations committed on or after that date.51.7    Sec. 6. Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:51.8    Subd. 5d. Speed zoning limit in work zone; surcharge when workers present.51.9(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a 51.10road having an established speed limit of 50 miles per hour or greater is adjusted to 45 51.11miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is 51.12closed in either direction, and (2) workers are present. A speed in excess of the adjusted 51.13speed limit is unlawful.51.14(b) Paragraph (a) does not apply to a segment of road in which:51.15(1) positive barriers are placed between workers and the traveled portion of the 51.16highway;51.17(2) the work zone is in place for less than 24 hours;51.18(3) a different speed limit for the work zone is determined by the road authority 51.19following an engineering and traffic investigation and based on accepted engineering 51.20practice; or51.21(4) a different speed limit for the work zone is established by the road authority 51.22under paragraph (c).51.23(c) The commissioner, on trunk highways and temporary trunk highways, and 51.24local authorities, on streets and highways under their jurisdiction, may authorize the use 51.25of reduced maximum speed limits in highway work zones. The commissioner or local 51.26authority is not required to conductwhen workers are present, without an engineering and 51.27traffic investigation before authorizing a reduced speed limit in a highway work zone51.28 required. The work zone speed limit must not reduce the speed limit on the affected 51.29street or highway by more than:51.30(b) The minimum highway work zone speed limit is 20 miles per hour. The work 51.31zone speed limit must not reduce the established speed limit on the affected street or 51.32highway by more than 15 miles per hour, except that the highway work zone speed limit 51.33must not exceed 40 miles per hour. The commissioner or local authority shall post the limits 51.34of the work zone. Highway work zone speed limits are effective on erection of appropriate 52.1regulatory speed limit signs. The signs must be removed or covered when they are not 52.2required. A speed greater than the posted highway work zone speed limit is unlawful.52.3(c) Notwithstanding paragraph (b), on divided highways the commissioner or local 52.4authority may establish a highway work zone speed limit that does not exceed 55 miles 52.5per hour.52.6(d) Notwithstanding paragraph (b), on two-lane highways having one lane for 52.7each direction of travel with a posted speed limit of 60 miles per hour or greater, the 52.8commissioner or local authority may establish a highway work zone speed limit that 52.9does not exceed 40 miles per hour.52.10(e) For purposes of this subdivision, "highway work zone" means a segment of 52.11highway or street where a road authority or its agent is constructing, reconstructing, or 52.12maintaining the physical structure of the roadway, its shoulders, or features adjacent to 52.13the roadway, including underground and overhead utilities and highway appurtenances, 52.14when workers are present.52.15(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person 52.16who violates a speed limit established under this subdivision, or who violates any other 52.17provision of this section while in a highway work zone, is assessed an additional surcharge 52.18equal to the amount of the fine imposed for the speed violation, but not less than $25.52.19(1) 20 miles per hour on a street or highway having an established speed limit of 52.2055 miles per hour or greater; and52.21(2) 15 miles per hour on a street or highway having an established speed limit of 52.2250 miles per hour or less.52.23(d) A work zone speed limit under paragraph (c) is effective on erection of 52.24appropriate regulatory speed limit signs. The signs must be removed or covered when 52.25they are not required. A speed in excess of the posted work zone speed limit is unlawful.52.26(e) For any speed limit under this subdivision, a road authority shall erect signs 52.27identifying the speed limit and indicating the beginning and end of the speed limit zone.52.28EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 52.29violations committed on or after that date.52.30    Sec. 7. Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision 52.31to read:52.32    Subd. 6a.Work zone speed limit violations.A person convicted of operating a 52.33motor vehicle in violation of a speed limit in a work zone, or any other provision of 52.34this section while in a work zone, shall be required to pay a fine of $300. This fine is in 52.35addition to the surcharge under section 357.021, subdivision 6. 53.1EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 53.2violations committed on or after that date.53.3    Sec. 8. Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:53.4    Subdivision 1. Entrance and exit; crossover; use regulations; signs; rules. (a) No 53.5person shall drive a vehicle onto or from any controlled-access highway except at such 53.6entrances and exits as are established by public authority.53.7(b) When special crossovers between the main roadways of a controlled-access 53.8highway are provided for emergency vehicles or maintenance equipment and such 53.9crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except 53.10an emergency vehicle, maintenance equipment, or construction equipment including 53.11contractor's and state-owned equipment when operating within a marked construction 53.12zone, or a vehicle operated by a commercial vehicle inspector of the Department of 53.13Public Safety or certified under section 169.781, to use such crossover. Vehicles owned 53.14and operated by elderly and needy persons under contract with the commissioner of 53.15transportation pursuant to section 
         160.282 for maintenance services on highway rest 53.16stop and tourist centers outside the seven-county metropolitan area as defined in section 53.17473.121
         , may also use these crossovers while those persons are proceeding to or from 53.18work in the rest area or tourist center if authorized by the commissioner, and the vehicle 53.19carries on its roof a distinctive flag designed and issued by the commissioner. For the 53.20purposes of this clause "emergency vehicle" includes a tow truck or towing vehicle if it is 53.21on the way to the location of an accident or a disabled vehicle.53.22(c) The commissioner of transportation may by order, and any public authority may 53.23by ordinance, with respect to any controlled-access highway under their jurisdictions 53.24prohibit or regulate the use of any such highway by pedestrians, bicycles, or other 53.25nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is 53.26found to be incompatible with the normal and safe flow of traffic.53.27(d) The commissioner of transportation or the public authority adopting any such 53.28prohibitory rules shall erect and maintain official signs on the controlled-access highway 53.29on which such rules are applicable and when so erected no person shall disobey the 53.30restrictions stated on such signs.53.31    Sec. 9. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision 53.32to read:54.1    Subd. 7.Expiration date.Upon request of the permit applicant the expiration 54.2date for a permit issued under this section must be the same as the expiration date of the 54.3permitted vehicle's registration.54.4EFFECTIVE DATE.This section is effective November 30, 2016, and applies 54.5to permits issued on and after that date.54.6    Sec. 10. Minnesota Statutes 2012, section 169.8261, is amended by adding a 54.7subdivision to read:54.8    Subd. 3.Expiration date.Upon request of the permit applicant the expiration 54.9date for a permit issued under this section must be the same as the expiration date of the 54.10permitted vehicle's registration.54.11EFFECTIVE DATE.This section is effective November 30, 2016, and applies 54.12to permits issued on and after that date.54.13    Sec. 11. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:54.14    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with 54.15respect to highways under the commissioner's jurisdiction, may charge a fee for each 54.16permit issued. The fee for an annual permit that expires by law on the date of the 54.17vehicle registration expiration must be based on the proportion of the year that remains 54.18until the expiration date. Unless otherwise specified, all fees for permits issued by the 54.19commissioner of transportation must be deposited in the state treasury and credited to 54.20the trunk highway fund. Except for those annual permits for which the permit fees are 54.21specified elsewhere in this chapter, the fees are:54.22    (a) $15 for each single trip permit.54.23    (b) $36 for each job permit. A job permit may be issued for like loads carried on 54.24a specific route for a period not to exceed two months. "Like loads" means loads of the 54.25same product, weight, and dimension.54.26    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive 54.27months. Annual permits may be issued for:54.28    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety 54.29or well-being of the public;54.30    (2) motor vehicles that travel on interstate highways and carry loads authorized 54.31under subdivision 1a;54.32    (3) motor vehicles operating with gross weights authorized under section 
         169.826, 54.33subdivision 1a
         ;55.1    (4) special pulpwood vehicles described in section 
         169.863;55.2    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;55.3    (6) noncommercial transportation of a boat by the owner or user of the boat;55.4    (7) motor vehicles carrying bales of agricultural products authorized under section 55.5169.862
         ; and55.6(8) special milk-hauling vehicles authorized under section 
         169.867.55.7    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12 55.8consecutive months. Annual permits may be issued for:55.9    (1) mobile cranes;55.10    (2) construction equipment, machinery, and supplies;55.11    (3) manufactured homes and manufactured storage buildings;55.12    (4) implements of husbandry;55.13    (5) double-deck buses;55.14    (6) commercial boat hauling and transporting waterfront structures, including, but 55.15not limited to, portable boat docks and boat lifts;55.16    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers 55.17for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however, 55.18the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer 55.19only while operating on twin-trailer routes designated under section 
         169.81, subdivision 3, 55.20paragraph (c); and55.21(8) vehicles operating on that portion of marked Trunk Highway 36 described in 55.22section 
         169.81, subdivision 3, paragraph (e).55.23    (e) For vehicles that have axle weights exceeding the weight limitations of sections 55.24169.823
          to 
         169.829, an additional cost added to the fees listed above. However, this 55.25paragraph applies to any vehicle described in section 
         168.013, subdivision 3, paragraph 55.26(b), but only when the vehicle exceeds its gross weight allowance set forth in that 55.27paragraph, and then the additional cost is for all weight, including the allowance weight, 55.28in excess of the permitted maximum axle weight. The additional cost is equal to the 55.29product of the distance traveled times the sum of the overweight axle group cost factors 55.30shown in the following chart:

55.31Overweight Axle Group Cost Factors55.32Weight (pounds)Cost Per Mile For Each Group Of:55.3355.3455.3555.3655.37exceeding weight 
                  		limitations on axlesTwo 
                  		consecutive 
                  		axles spaced 
                  		within 8 feet 
                  		or lessThree 
                  		consecutive 
                  		axles spaced 
                  		within 9 feet 
                  		or lessFour consecutive 
                  		axles spaced within 
                  		14 feet or less55.380-2,000.12.05.0456.12,001-4,000.14.06.0556.24,001-6,000.18.07.0656.36,001-8,000.21.09.0756.48,001-10,000.26.10.0856.510,001-12,000.30.12.0956.656.712,001-14,000Not 
                  		permitted.14.1156.856.914,001-16,000Not 
                  		permitted.17.1256.1056.1116,001-18,000Not 
                  		permitted.19.1556.1256.1318,001-20,000Not 
                  		permittedNot 
                  		permitted.1656.1456.1520,001-22,000Not 
                  		permittedNot 
                  		permitted.20

56.16The amounts added are rounded to the nearest cent for each axle or axle group. The 56.17additional cost does not apply to paragraph (c), clauses (1) and (3).56.18For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile 56.19fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed 56.20in addition to the normal permit fee. Miles must be calculated based on the distance 56.21already traveled in the state plus the distance from the point of detection to a transportation 56.22loading site or unloading site within the state or to the point of exit from the state.56.23    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight, 56.24or oversize and overweight, mobile cranes; construction equipment, machinery, and 56.25supplies; implements of husbandry; and commercial boat hauling. The fees for the permit 56.26are as follows:

56.27Gross Weight (pounds) of VehicleAnnual Permit Fee 56.2890,000or less $20056.2990,001- 100,000$30056.30100,001- 110,000$40056.31110,001- 120,000$50056.32120,001- 130,000$60056.33130,001- 140,000$70056.34140,001- 145,000$80056.35145,001- 155,000$900

56.36If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined 56.37under paragraph (e).56.38    (g) For vehicles which exceed the width limitations set forth in section 
         169.80 by 56.39more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) 56.40when the permit is issued while seasonal load restrictions pursuant to section 
         169.87 are 56.41in effect.57.1    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for 57.2refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on 57.3a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 
         169.828, 57.4subdivision 2
         , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds 57.5on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.57.6    (i) $300 for a motor vehicle described in section 
         169.8261. The fee under this 57.7paragraph must be deposited as follows:57.8    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for 57.9costs related to administering the permit program and inspecting and posting bridges; and57.10    (2) all remaining money in each fiscal year must be deposited in the bridge 57.11inspection and signing account as provided under subdivision 5b.57.12    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating 57.13under authority of section 
         169.824, subdivision 2, paragraph (a), clause (2).57.14EFFECTIVE DATE.This section is effective November 30, 2016, and applies 57.15to permits issued on and after that date.57.16    Sec. 12. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision 57.17to read:57.18    Subd. 3.Expiration date.Upon request of the permit applicant the expiration 57.19date for a permit issued under this section must be the same as the expiration date of the 57.20permitted vehicle's registration.57.21EFFECTIVE DATE.This section is effective November 30, 2016, and applies 57.22to permits issued on and after that date.57.23    Sec. 13. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:57.24    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit 57.25authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw 57.26or unprocessed agricultural products and be operated with a gross vehicle weight of up to:57.27    (1) 90,000 pounds; and57.28    (2) 99,000 pounds during the period set by the commissioner under section 
         169.826, 57.29subdivision 1
         .57.30    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or 57.31combination of vehicles operated under this subdivision and transporting only sealed 57.32intermodal containers may be operated on an interstate highway if allowed by the United 57.33States Department of Transportation.58.1    (c) The fee for a permit issued under this subdivision is $300, or a proportional 58.2amount as provided in section 169.86, subdivision 5.58.3EFFECTIVE DATE.This section is effective November 30, 2016, and applies 58.4to permits issued on and after that date.58.5    Sec. 14. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:58.6    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit 58.7authorizing a vehicle or combination of vehicles with a total of seven or more axles to 58.8haul raw or unprocessed agricultural products and be operated with a gross vehicle weight 58.9of up to:58.10    (1) 97,000 pounds; and58.11    (2) 99,000 pounds during the period set by the commissioner under section 
         169.826, 58.12subdivision 1
         .58.13    (b) Drivers of vehicles operating under this subdivision must comply with driver 58.14qualification requirements adopted under section 
         221.0314, subdivisions 2 to 5, and Code 58.15of Federal Regulations, title 49, parts 40 and 382.58.16    (c) The fee for a permit issued under this subdivision is $500, or a proportional 58.17amount as provided in section 169.86, subdivision 5.58.18EFFECTIVE DATE.This section is effective November 30, 2016, and applies 58.19to permits issued on and after that date.58.20    Sec. 15. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision 58.21to read:58.22    Subd. 5.Expiration date.Upon request of the permit applicant the expiration 58.23date for a permit issued under this section must be the same as the expiration date of the 58.24permitted vehicle's registration.58.25EFFECTIVE DATE.This section is effective November 30, 2016, and applies 58.26to permits issued on and after that date.58.27    Sec. 16. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:58.28    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1 58.29must be annual permits. The fee is $850 for each vehicle, or a proportional amount as 58.30provided in section 169.86, subdivision 5, and must be deposited in the trunk highway 58.31fund. An amount sufficient to administer the permit program is appropriated from the 58.32trunk highway fund to the commissioner for the costs of administering the permit program.59.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies 59.2to permits issued on and after that date.59.3    Sec. 17. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision 59.4to read:59.5    Subd. 4.Expiration date.Upon request of the permit applicant the expiration 59.6date for a permit issued under this section must be the same as the expiration date of the 59.7permitted vehicle's registration.59.8EFFECTIVE DATE.This section is effective November 30, 2016, and applies 59.9to permits issued on and after that date.59.10    Sec. 18. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:59.11    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any 59.12public roadway by any person who does not possess a valid driver's license, unless the 59.13person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 59.14permit from the commissioner of public safety. The operator's permit may be issued to 59.15any person who has attained the age of 15 years and who has passed the examination 59.16prescribed by the commissioner. The instruction permit may be issued to any person who 59.17has attained the age of 15 years and who has successfully completed an approved safety 59.18course and passed the written portion of the examination prescribed by the commissioner.59.19    (b) This course must consist of, but is not limited to, a basic understanding of:59.20    (1) motorized bicycles and their limitations;59.21    (2) motorized bicycle laws and rules;59.22    (3) safe operating practices and basic operating techniques;59.23    (4) helmets and protective clothing;59.24    (5) motorized bicycle traffic strategies; and59.25    (6) effects of alcohol and drugs on motorized bicycle operators.59.26    (c) The commissioner may adopt rules prescribing the content of the safety course, 59.27examination, and the information to be contained on the permits. A person operating a 59.28motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 59.29by section 
         169.974, subdivision 2, on operation of a motorcycle under a two-wheel 59.30instruction permit.59.31    (d) The fees for motorized bicycle operator's permits are as follows:

59.32(1)Examination and operator's permit, valid for one year$6.7559.33(2)Duplicate$3.7559.3459.35(3) (1)Renewal Motorized bicycle operator's permit before age 21 
                  		and valid until age 21$9.7560.1(4) (2)Renewal permit age 21 or older and valid for four years$15.7560.2(5) (3)Duplicate of any renewal permit$5.2560.3(6) (4)Written examination and instruction permit, valid for 30 days$6.75

60.4    Sec. 19. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:60.5    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are 60.6as follows:

60.7Classified Driver's LicenseD-$17.25C-$21.25B-$28.25A-$36.2560.8Classified Under-21 D.L.D-$17.25C-$21.25B-$28.25A-$16.2560.9Enhanced Driver's LicenseD-$32.25C-$36.25B-$43.25A-$51.2560.10Instruction Permit$5.2560.1160.12Enhanced Instruction 
                  		Permit$20.2560.1360.14Commercial Learner's Permit$2.5060.15Provisional License$8.2560.1660.17Enhanced Provisional 
                  		License$23.2560.1860.1960.20Duplicate License or 
                  		duplicate identification 
                  		card$6.7560.2160.2260.2360.24Enhanced Duplicate 
                  		License or enhanced 
                  		duplicate identification 
                  		card$21.7560.2560.2660.2760.2860.2960.3060.31Minnesota identification 
                  		card or Under-21 
                  		Minnesota identification 
                  		card, other than duplicate, 
                  		except as otherwise 
                  		provided in section 
                  171.07, 
                     		subdivisions 3
                   and 3a$11.2560.3260.33Enhanced Minnesota 
                  		identification card$26.25

60.34In addition to each fee required in this paragraph, the commissioner shall collect a 60.35surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 60.362016. Surcharges collected under this paragraph must be credited to the driver and vehicle 60.37services technology account in the special revenue fund under section 
         299A.705.60.38    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and 60.39has a driving record free of (1) convictions for a violation of section 
         169A.20, 
         169A.33, 60.40169A.35
         , or sections 
         169A.50 to 
         169A.53, (2) convictions for crash-related moving 60.41violations, and (3) convictions for moving violations that are not crash related, shall have a 60.42$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 60.43has the meaning given it in section 
         171.04, subdivision 1.61.1    (c) In addition to the driver's license fee required under paragraph (a), the 61.2commissioner shall collect an additional $4 processing fee from each new applicant 61.3or individual renewing a license with a school bus endorsement to cover the costs for 61.4processing an applicant's initial and biennial physical examination certificate. The 61.5department shall not charge these applicants any other fee to receive or renew the 61.6endorsement.61.7(d) In addition to the fee required under paragraph (a), a driver's license agent may 61.8charge and retain a filing fee as provided under section 
         171.061, subdivision 4.61.9(e) In addition to the fee required under paragraph (a), the commissioner shall 61.10charge a filing fee at the same amount as a driver's license agent under section 
         171.061, 61.11subdivision 4. Revenue collected under this paragraph must be deposited in the driver 61.12services operating account.61.13(f) An application for a Minnesota identification card, instruction permit, provisional 61.14license, or driver's license, including an application for renewal, must contain a provision 61.15that allows the applicant to add to the fee under paragraph (a), a $2 donation for the 61.16purposes of public information and education on anatomical gifts under section 
         171.075.61.17    Sec. 20. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL 61.18CONFORMITY.61.19    Subdivision 1.Conformity with federal law.The commissioner of public safety 61.20shall ensure the programs and policies related to commercial drivers' licensure and the 61.21operation of commercial motor vehicles in Minnesota conform with the requirements of 61.22Code of Federal Regulations, title 49, part 383.61.23    Subd. 2.Conflicts.To the extent a requirement of sections 171.162 to 171.169, or 61.24any other state or local law, conflicts with a provision of Code of Federal Regulations, title 61.2549, part 383, the federal provision prevails.61.26    Sec. 21. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision 61.27to read:61.28    Subd. 10.Products and services; billing.The commissioner of transportation may 61.29bill operations units of the department for costs of centrally managed products or services 61.30that benefit multiple operations units. These costs may include equipment acquisition and 61.31rental, labor, materials, and other costs determined by the commissioner. Receipts must be 61.32credited to the special products and services account, which is established in the trunk 61.33highway fund, and are appropriated to the commissioner to pay the costs for which the 61.34billings are made. 62.1    Sec. 22. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is 62.2amended to read:62.3    Subd. 2. Transportation economic development accounts. (a) A transportation 62.4economic development account is established in the special revenue fund under the 62.5budgetary jurisdiction of the legislative committees having jurisdiction over transportation 62.6finance. Money in the account may be expended only as appropriated by law. The account 62.7may not contain money transferred or otherwise provided from the trunk highway fund.62.8(b) A transportation economic development account is established in the trunk 62.9highway fund. The account consists of funds donated, allotted, transferred, or otherwise 62.10provided to the account. Money in the account may be used only for trunk highway 62.11purposes. All funds in the account available prior to August 1, 2013, are available until 62.12expended.62.13    Sec. 23. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is 62.14amended to read:62.15    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner 62.16shall obtain a total amount in federal authorizations for reimbursement on transportation 62.17alternatives projects that is equal to or greater than the annual average of federal 62.18authorizations on transportation alternatives projects calculated over the preceding four62.19 federal fiscal years 2010 to 2012.62.20EFFECTIVE DATE.This section is effective the day following final enactment and 62.21applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.62.22    Sec. 24. [219.375] RAILROAD YARD LIGHTING.62.23    Subdivision 1.General requirements.(a) All railroad common carriers, and their 62.24officers, agents, and employees, operating a railroad in this state are required to maintain 62.25lighting between sunset and sunrise above switches in railroad yards where from one 62.26half-hour before sunset to one half-hour after sunrise:62.27(1) cars or locomotives are switched or inspected; or62.28(2) cars are switched to assemble or disassemble trains.62.29Railroad common carriers shall provide lighting immediately adjacent to those portions 62.30of railroad yard tracks where railroad common carrier employees frequently work on 62.31the ground performing switching, inspection, and repair activities. For purposes of this 62.32section, "frequently work" means at least five days per week.62.33(b) Railroad yard lighting over switches and inspection areas must:63.1(1) conform with the guidelines set forth by the American Railway Engineering 63.2and Manufacturing Association (AREMA);63.3(2) be displayed only at times when activities related to switching, inspection, 63.4assembly, and disassembly of trains are taking place;63.5(3) include at least one lighting source for each two-yard track switch segment; and63.6(4) be displayed from a height of at least 30 feet above the railroad yard lead-track 63.7area.63.8(c) Lighting over switches and other light sources within railroad yards or at other 63.9railroad locations must be:63.10(1) maintained to illuminate as designed by the railroad or licensed contractor;63.11(2) compliant with the Minnesota Electrical Code; 63.12(3) kept clear of obstructions; and63.13(4) focused on the railroad common carrier property designed to be illuminated.63.14(d) The energy source for lighting is permitted, though not required, to:63.15(1) be direct wired from a carrier facility power source, have solar panel power with 63.16a battery storage source, or have another constant energy source; or63.17(2) be designed to have standard or light-emitting diode fixtures or electrical circuits 63.18that include power saving or ambient atmosphere actuating switches.63.19(e) Railroad common carriers must replace damaged or nonoperative lighting within 63.2048 hours after light source damage has been reported to the carrier.63.21    Subd. 2.Allowances for unusual conditions.Railroad common carriers are not 63.22required to comply with the requirements of this section during:63.23(1) maintenance activities;63.24(2) derailments;63.25(3) any period of heavy rain or snow, washouts, or similar weather or seismic 63.26conditions; or 63.27(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no 63.28longer than is necessary to achieve compliance with this section.63.29    Subd. 3.Lighting orders; commissioner authority.(a) When the commissioner 63.30finds that railroad common carrier employees who frequently work immediately adjacent 63.31to a portion of track performing switching, inspection, maintenance, repair, or fueling 63.32activities are exposed to hazard resulting from the lack of lighting, or to the condition of 63.33lighting constructed before July 1, 2014, the commissioner may order a railroad common 63.34carrier to construct lighting adjacent to a portion of track where employees are performing 63.35switching, inspection, maintenance, repair or fueling activities, or require a railroad 64.1common carrier to modify existing  lighting to conform with the standards set forth by 64.2AREMA lighting standards, within a reasonable period of time.64.3(b) A railroad common carrier, person, or corporation may appeal an order under this 64.4subdivision. An appeal under this paragraph is subject to the processes and requirements 64.5of chapter 14.64.6    Subd. 4.Failure to correct.If a railroad common carrier, person, or corporation 64.7fails to correct a violation of this section within the time provided in an order issued by 64.8the commissioner of transportation under subdivision 3, and the railroad common carrier, 64.9person, or corporation does  not appeal the order, the failure to correct the violation as 64.10ordered by the commissioner constitutes a new and separate offense distinct from the 64.11original violation of this section.64.12    Subd. 5.Complaints.No formal complaint of an alleged violation of this section 64.13may be filed until the filing party has attempted to address the alleged violations with the 64.14railroad common carrier. Any complaint of an alleged  violation must contain a written 64.15statement that the filing party has made a reasonable, good faith attempt to address the 64.16alleged violation. 64.17    Subd. 6.Waiver.Upon written request of a railroad common carrier, the 64.18commissioner of transportation may waive any portion of this section if conditions do not 64.19reasonably permit compliance. The commissioner's decision is subject to the requirements 64.20under section 218.041 and shall include an on-site inspection of the area for which the 64.21waiver has been requested. The inspection shall occur between sunset and sunrise, and all 64.22parties of interest shall be permitted to attend.64.23    Subd. 7.Violations and penalties. A railroad common carrier, corporation, or 64.24person who violates this section is liable to a penalty not to exceed $500 for each violation.64.25    Subd. 8.Exceptions; applicability.(a) This section establishes minimum standards 64.26for railroad yard lighting. Nothing in this section shall be construed to preclude design of 64.27railroad yard towers with multiple lighting sources, a brighter lighting design, or other 64.28features that exceed the requirements of this section.64.29(b) This section applies to all Class One and Class Two railroad common carrier 64.30railroad yards. This section does not apply to an entity that owns or operates track in 64.31Minnesota that is not a Class One or Class Two railroad common carrier as classified 64.32by the Federal Railroad Administration.64.33(c) Railroad yards and other locations where lighting exists on July 1, 2014, are 64.34compliant with subdivision 1, paragraphs (b) and (c).64.35EFFECTIVE DATE.This section is effective November 1, 2016.65.1    Sec. 25. [299A.017] STATE SAFETY OVERSIGHT.65.2    Subdivision 1.Office created.The commissioner of public safety shall establish an 65.3Office of State Safety Oversight in the Department of Public Safety for safety oversight of 65.4rail fixed guideway public transportation systems within the state. The commissioner shall 65.5designate a director of the office.65.6    Subd. 2.Authority.The director shall implement and has regulatory authority to 65.7enforce the requirements for the state set forth in United States Code, title 49, sections 65.85329 and 5330, federal regulations adopted pursuant to those sections, and successor or 65.9supplemental requirements.65.10    Sec. 26. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:65.11    Subdivision 1. Authorized programs within department. From the revenues 65.12appropriated from the fire safety account, established under section 297I.06, subdivision 65.133, the commissioner of public safety may expend funds for the activities and programs 65.14identified by the advisory committee established under subdivision 2 and recommended 65.15to the commissioner of public safety. The commissioner shall not expend funds without 65.16the recommendation of the advisory committee established under subdivision 2. The 65.17commissioner shall not expend funds without the recommendation of the advisory 65.18committee established under subdivision 2. These funds are to be used to provide 65.19resources needed for identified activities and programs of the Minnesota fire service and to 65.20ensure the State Fire Marshal Division responsibilities are fulfilled.65.21    Sec. 27. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:65.22    Subd. 2. Fire Service Advisory Committee.(a) The Fire Service Advisory 65.23Committee shall provide recommendations to the commissioner of public safety on 65.24fire service-related issues and shall consist of representatives of each of the following 65.25organizations: two appointed by the president of the Minnesota State Fire Chiefs 65.26Association, two appointed by the president of the Minnesota State Fire Department 65.27Association, two appointed by the president of the Minnesota Professional Fire Fighters, 65.28two appointed by the president of the League of Minnesota Cities, one appointed by the 65.29president of the Minnesota Association of Townships, one appointed by the president 65.30of the Insurance Federation of Minnesota, one appointed jointly by the presidents of 65.31the Minnesota Chapter of the International Association of Arson Investigators and the 65.32Fire Marshals Association of Minnesota, and the commissioner of public safety or the 65.33commissioner's designee. The commissioner of public safety must ensure that at least 65.34three of the members of the advisory committee work and reside in counties outside of the 66.1seven-county metropolitan area. The committee shall provide funding recommendations 66.2to the commissioner of public safety from the fire safety fund for the following purposes:66.3(1) for the Minnesota Board of Firefighter Training and Education;66.4(2) for programs and staffing for the State Fire Marshal Division; and66.5(3) for fire-related regional response team programs and any other fire service 66.6programs that have the potential for statewide impact.66.7    (b) The committee under paragraph (a) does not expire.66.8    Sec. 28. [473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.66.9    Subdivision 1.Adoption of standards.(a) By January 1, 2015, the Metropolitan 66.10Council shall adopt and may thereafter amend standards for the design of light rail 66.11vehicles that are reasonably necessary to provide access for, and to protect the health and 66.12safety of, persons who use the service. All light rail transit vehicles procured on and after 66.13January 1, 2015, must conform to the standards then in effect.66.14(b) The Transportation Accessibility Advisory Committee must review the standards 66.15and all subsequent amendments before the Metropolitan Council adopts them.66.16(c) The Metropolitan Council shall post adopted standards, including amendments, 66.17on its Web site.66.18    Subd. 2.Minimum standards.Standards adopted under this section must include, 66.19but are not limited to:66.20(1) two dedicated spaces for wheelchair users in each car;66.21(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and66.22(3) further specifications that meet or exceed the standards established in the 66.23Americans with Disabilities Act.66.24    Sec. 29. HIGHWAY 14 TURNBACK.66.25Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or 66.26any other law to the contrary, the commissioner of transportation may:66.27(1) by temporary order, take over the road described as "Old Highway 14" in the 66.28settlement agreement and release executed January 7, 2014, between the state and Waseca 66.29and Steele Counties;66.30(2) expend $35,000,000 or the amount necessary to complete the work required 66.31under the settlement agreement; and66.32(3) upon completion of the work described in the settlement agreement, release "Old 66.33Highway 14" back to Steele and Waseca Counties.67.1Upon completion of the work described in the settlement agreement between the 67.2state and Waseca and Steele Counties, the counties shall accept responsibility for the road 67.3described in the agreement as "Old Highway 14."67.4    Sec. 30. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.67.5    Subdivision 1.Engineering and traffic investigations.The commissioner of 67.6transportation shall perform engineering and traffic investigations on trunk highway 67.7segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per 67.8hour. On determining upon the basis of the investigation that the 55 miles per hour speed 67.9limit can be reasonably and safely increased under the conditions found to exist on any 67.10of the trunk highway segments examined, the commissioner may designate an increased 67.11limit applicable to those segments and erect appropriate signs designating the speed limit. 67.12The new speed limit shall be effective when the signs are erected. Of all the roadways 67.13to be studied under this section, approximately one-fifth must be subject to investigation 67.14each year until the statewide study is complete in 2019.67.15    Subd. 2.Report.By January 15 annually, the commissioner shall provide to 67.16the chairs and ranking minority members of the senate and house of representatives 67.17committees with jurisdiction over transportation policy and finance a list of trunk 67.18highways or segments of trunk highways that were subject to an engineering and safety 67.19investigation in the previous calendar year, specifying in each case the applicable speed 67.20limits before and after the investigation.67.21EFFECTIVE DATE.This section is effective the day following final enactment 67.22and expires on the earlier of January 15, 2019, or the date the final report is submitted to 67.23the legislative committees under this section.67.24    Sec. 31. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE 67.25VERIFICATION.67.26    Subdivision 1.Establishment.The task force on motor vehicle insurance coverage 67.27verification is established to review and evaluate approaches to insurance coverage 67.28verification and recommend legislation to create and fund a program in this state.67.29    Subd. 2.Membership; meetings; staff.(a) The task force shall be composed of 67.3013 members, who must be appointed by July 1, 2014, and who serve at the pleasure of 67.31their appointing authorities:67.32(1) the commissioner of public safety or a designee;67.33(2) the commissioner of commerce or a designee;68.1(3) two members of the house of representatives, one appointed by the speaker of the 68.2house and one appointed by the minority leader;68.3(4) two members of the senate, one appointed by the Subcommittee on Committees 68.4of the Committee on Rules and Administration and one appointed by the minority leader;68.5(5) a representative of Minnesota Deputy Registrars Association;68.6(6) a representative of AAA Minnesota;68.7(7) a representative of AARP Minnesota;68.8(8) a representative of the Insurance Federation of Minnesota;68.9(9) a representative of the Minnesota Bankers Association;68.10(10) a representative of the Minnesota Bar Association; and68.11(11) a representative of the Minnesota Police and Peace Officers Association.68.12(b) Compensation and expense reimbursement must be as provided under Minnesota 68.13Statutes, section 15.059, subdivision 3, to members of the task force.68.14(c) The commissioner of public safety shall convene the task force by August 68.151, 2014, and shall appoint a chair from the membership of the task force. Staffing and 68.16technical assistance must be provided by the Department of Public Safety.68.17    Subd. 3.Duties.The task force shall review and evaluate programs established in 68.18other states as well as programs proposed by third parties, identify one or more programs 68.19recommended for implementation in this state, and, as to the recommended programs, 68.20adopt findings concerning:68.21(1) comparative costs of programs;68.22(2) implementation considerations, and in particular, identifying the appropriate 68.23supervising agency and assessing compatibility with existing and planned computer 68.24systems;68.25(3) effectiveness in verifying existence of motor vehicle insurance coverage;68.26(4) identification of categories of authorized users;68.27(5) simplicity of access and use for authorized users;68.28(6) data privacy considerations;68.29(7) data retention policies; and68.30(8) statutory changes necessary for implementation.68.31    Subd. 4.Report.By February 1, 2015, the task force must submit to the 68.32chairs and ranking minority members of the house of representatives and senate 68.33committees and divisions with primary jurisdiction over commerce and transportation its 68.34written recommendations, including any draft legislation necessary to implement the 68.35recommendations.69.1    Subd. 5.Sunset.The task force shall sunset the day after submitting the report 69.2under subdivision 4, or February 2, 2015, whichever is earlier.69.3EFFECTIVE DATE.This section is effective the day following final enactment.69.4    Sec. 32. COMMUNITY DESTINATION SIGN PILOT PROGRAM.69.5    Subdivision 1.Definition.(a) For purposes of this section, the following terms 69.6have the meanings given.69.7(b) "City" means the city of Two Harbors.69.8(c) "General retail services" means a business that sells goods or services at retail 69.9and directly to an end-use consumer. General retail services includes but is not limited to:69.10(1) personal services;69.11(2) repair services;69.12(3) hardware stores;69.13(4) lumber or building supply stores; and69.14(5) automotive parts sellers.69.15    Subd. 2.Pilot program established.In consultation with the city of Two Harbors, 69.16the commissioner of transportation shall establish a community destination sign pilot 69.17program for wayfinding within the city to destinations or attractions of interest to the 69.18traveling public.69.19For purposes of Minnesota Statutes, chapter 173, signs under the pilot program are 69.20official signs.69.21    Subd. 3.Signage, design.(a) The pilot program must include as eligible attractions 69.22and destinations:69.23(1) minor traffic generators; and69.24(2) general retail services, specified by business name, that are identified in a 69.25community wayfinding program established by the city.69.26(b) The commissioner of transportation, in coordination with the city, may establish 69.27sign design specifications for signs under the pilot program. Design specifications must 69.28allow for placement of:69.29(1) a city name and city logo or symbol; and69.30(2) up to five attractions or destinations on a community destination sign assembly.69.31    Subd. 4.Program costs.The city shall pay costs of design, construction, 69.32erection, and maintenance of the signs and sign assemblies under the pilot program. The 69.33commissioner shall not impose fees for the pilot program.69.34    Subd. 5.Expiration.The pilot program under this section expires on January 69.351, 2022.70.1EFFECTIVE DATE.This section is effective the day after the governing body of 70.2the city of Two Harbors and its chief clerical officer timely complete their compliance 70.3with Minnesota Statutes, section 645.021, subdivisions 2 and 3.70.4ARTICLE 570.5CRIMINAL JUSTICE

70.6Section 1.  SUMMARY OF APPROPRIATIONS.

70.7The amounts shown in this section summarize direct appropriations, by fund, made 70.8in this article.

70.920142015Total70.10General$-0-$30,787,000$30,787,00070.11Total$-0-$30,787,000$30,787,000

70.12Sec. 2. APPROPRIATIONS.

70.13The sums shown in the columns marked "Appropriations" are added to the 70.14appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes 70.15specified in this article. The appropriations are from the general fund, or another named 70.16fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 70.17and "2015" used in this article mean that the addition to the appropriation listed under 70.18them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 70.19Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 70.20day following final enactment.

70.21APPROPRIATIONS70.22Available for the Year70.23Ending June 3070.2420142015

70.25Sec. 3. CORRECTIONS

70.26Subdivision 1.Total Appropriation$-0-$30,089,000

70.27The amounts that may be spent for each 70.28purpose are specified in the following 70.29subdivisions.70.30This includes a onetime appropriation of 70.31$11,089,000.

70.32Subd. 2.Correctional Institutions-0-27,289,000

71.1Subd. 3.Community Services-0-1,900,000

71.2Subd. 4.Operations Support-0-900,000

71.3Sec. 4. PUBLIC SAFETY$-0-$600,000

71.4Expungement71.5To implement the expungement law changes 71.6in 2014 S.F. No. 2214, if enacted.

71.7Sec. 5. HUMAN SERVICES$-0-$98,000

71.8Expungement71.9To implement the expungement law changes 71.10in 2014 S.F. No. 2214, if enacted.71.11ARTICLE 671.12CRIMINAL JUSTICE-RELATED PROVISIONS71.13    Section 1. Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to 71.14read:71.15    Subd. 7. Continuance.(a) When it is in the best interests of the child to do so and 71.16not inimical to public safety and when the child has admitted the allegations contained in 71.17the petition before the judge or referee, or when a hearing has been held as provided for in 71.18section 
         260B.163 and the allegations contained in the petition have been duly proven but, 71.19in either case, before a finding of delinquency has been entered, the court may continue 71.20the case for a period not to exceed 90 180 days on any one order. Such a continuance may 71.21be extended for one additional successive period not to exceed 90 days and only after the 71.22court has reviewed the case and entered its order for an additional continuance without a 71.23finding of delinquency.The continuance may be extended for one additional successive 71.24period not to exceed 180 days, but only with the consent of the prosecutor and only after 71.25the court has reviewed the case and entered its order for the additional continuance 71.26without a finding of delinquency. During this a continuance the court may enter an order 71.27in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or 71.28enter an order to hold the child in detention for a period not to exceed 15 days on any one 71.29order for the purpose of completing any consideration, or any investigation or examination 71.30ordered in accordance with the provisions of section 
         260B.157.72.1(b) A prosecutor may appeal a continuance ordered in contravention of this 72.2subdivision. This subdivision does not extend the court's jurisdiction under section 72.3260B.193 and does not apply to an extended jurisdiction juvenile proceeding.72.4EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 72.5offenses committed on or after that date.72.6    Sec. 2. Minnesota Statutes 2012, section 645.241, is amended to read:72.7645.241 PUNISHMENT FOR PROHIBITED ACTS.72.8(a) Except as provided in paragraph (b), when the performance of any act is 72.9prohibited by a statute, and no penalty for the violation of the same shall be imposed in 72.10any statute, the doing of such act shall be a misdemeanor.72.11(b) When the performance of any act is prohibited by a statute enacted or amended 72.12after September 1, 2014, and no penalty for the violation of the same shall be imposed in 72.13any statute, the doing of such act shall be a petty misdemeanor.72.14    Sec. 3. Laws 2013, chapter 86, article 1, section 13, is amended to read:

72.1572.16Sec. 13. PEACE OFFICER STANDARDS AND TRAINING (POST) BOARD$3,870,000$3,870,000

72.17(a) Excess Amounts Transferred72.18This appropriation is from the peace officer 72.19training account in the special revenue fund. 72.20Any new receipts credited to that account in 72.21the first year in excess of $3,870,000 must be 72.22transferred and credited to the general fund. 72.23Any new receipts credited to that account in 72.24the second year in excess of $3,870,000 must 72.25be transferred and credited to the general 72.26fund.72.27(b) Peace Officer Training 72.28Reimbursements72.29$2,734,000 each year is for reimbursements 72.30to local governments for peace officer 72.31training costs.73.1(c) Training; Sexually Exploited and 73.2Trafficked Youth73.3Of the appropriation in paragraph (b), 73.4$100,000 the first year is for reimbursements 73.5to local governments for peace officer 73.6training costs on sexually exploited and 73.7trafficked youth, including effectively 73.8identifying sex trafficked victims and 73.9traffickers, investigation techniques, and 73.10assisting sexually exploited youth. These 73.11funds are available until June 30, 2016.73.12Reimbursement shall be provided on a flat 73.13fee basis of $100 per diem per officer.73.14EFFECTIVE DATE.This section is effective the day following final enactment.73.15ARTICLE 773.16STATE DEPARTMENTS AND VETERANS

73.17Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.

73.18    The sums shown in the columns marked "Appropriations" are added to the 73.19appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes 73.20specified in this article. The appropriations are from the general fund, or another named 73.21fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 73.22and "2015" used in this article mean that the addition to the appropriation listed under 73.23them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 73.24Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 73.25day following final enactment.

73.26APPROPRIATIONS73.27Available for the Year73.28Ending June 3073.2920142015

73.3073.31Sec. 2. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS

73.3273.33Subdivision 1.Legislative Coordinating Commission-0-455,000

74.1$300,000 is for operating costs of the joint 74.2legislative offices.74.3$155,000 is for the Legislative Water 74.4Commission established in section 4. 74.5$145,000 each fiscal year is added to the base 74.6through fiscal year 2019.

74.7Subd. 2.Administration-0-400,000

74.8$150,000 is for developing and implementing 74.9a certification program for veteran-owned 74.10small businesses in accordance with 74.11Minnesota Statutes, section 16C.19. 74.12$112,000 each year is added to the base.74.13$250,000 is appropriated for up to five 74.14grants of up to $50,000 each to conduct 74.15a housing needs assessment for veterans. 74.16Up to five percent may be used by the 74.17commissioner to administer these grants. The 74.18grants may be awarded to any government 74.19or nongovernmental organization. The 74.20assessment, which may be a study or 74.21a survey, may examine the need for 74.22scattered site housing for veterans and their 74.23families who are homeless or in danger of 74.24homelessness or for housing that addresses 74.25the health care needs of disabled or aging 74.26veterans. The assessment must be started by 74.27July 30, 2015, and completed by July 30, 74.282016. The commissioner of administration 74.29must provide copies of any completed 74.30assessment to the chairs and ranking minority 74.31members of the legislative committees with 74.32jurisdiction over housing and veterans affairs 74.33no later than January 1, 2017. This is a 74.34onetime appropriation.

74.35Subd. 3.Racing Commission100,00085,000

75.1These appropriations are from the racing 75.2and card playing regulation accounts in the 75.3special revenue fund. These appropriations 75.4are onetime and are available in either year 75.5of the biennium.

75.6Subd. 4. Amateur Sports Commission-0-50,000

75.7$50,000 is to develop a pilot program to 75.8prevent and reduce childhood obesity. This 75.9appropriation is onetime and is available 75.10until June 30, 2017.

75.11Subd. 5.Minnesota Historical Society-0- 22,000

75.12$22,000 is for a grant to Farm America for 75.13repairs and maintenance of the Minnesota 75.14Agricultural Interpretive Center and for audit 75.15expenses. This is a onetime appropriation 75.16and is available until June 30, 2017.

75.17Subd. 6.Board of the Arts-0-600,000

75.18For arts education in partnership with the 75.19President's Turnaround Arts Initiative. This 75.20appropriation is canceled if the federal grant 75.21under the initiative is not awarded. This 75.22appropriation is available until June 30, 75.232015. This is a onetime appropriation.

75.24Subd. 7. Minnesota Humanities Center-0- 225,000

75.25$125,000 is for the Veterans' Voices 75.26program to educate and engage the 75.27community regarding veterans' contributions, 75.28knowledge, skills, and experiences. Of 75.29this amount, $25,000 is for transfer to the 75.30Association of Minnesota Public Education 75.31Radio Stations for statewide programming to 75.32promote the Veterans' Voices program. This 75.33is a onetime appropriation.76.1$100,000 is from the arts and cultural 76.2heritage fund for professional development 76.3for kindergarten through grade 12 educators 76.4to better culturally engage their work with 76.5at-risk student populations. This may include 76.6new and original literature that addresses 76.7literacy of emerging cultural communities. 76.8This is a onetime appropriation.

76.9Subd. 8. Department of Education-0-44,000

76.10This appropriation is to implement expedited 76.11and temporary licensing provisions of 76.12Minnesota Statutes, section 197.4552. This 76.13is a onetime appropriation.

76.14Subd. 9.Board of Accountancy-0-44,000

76.15This appropriation is to implement expedited 76.16and temporary licensing provisions of 76.17Minnesota Statutes, section 197.4552. This 76.18is a onetime appropriation.

76.1976.2076.21Subd. 10.Board of Architecture, Engineering, Land Surveying, Landscape, Architecture, Geoscience, and Interior Design-0-44,000

76.22This appropriation is to implement expedited 76.23and temporary licensing provisions of 76.24Minnesota Statutes, section 197.4552. This 76.25is a onetime appropriation.

76.26Subd. 11.Board of Cosmetologist Examiners-0-20,000

76.27This appropriation is to implement expedited 76.28and temporary licensing provisions of 76.29Minnesota Statutes, section 197.4552. This 76.30is a onetime appropriation.

76.31Subd. 12.Board of Barber Examiners-0-10,000

76.32This appropriation is to implement expedited 76.33and temporary licensing provisions of 77.1Minnesota Statutes, section 197.4552. This 77.2is a onetime appropriation.

77.3Subd. 13.Board of Private Detectives-0-44,000

77.4This appropriation is to implement expedited 77.5and temporary licensing provisions of 77.6Minnesota Statutes, section 197.4552. This 77.7is a onetime appropriation.

77.877.9Subd. 14.Board of Behavioral Health and Therapy-0-15,000

77.10This appropriation is from the state 77.11government special revenue fund to 77.12implement expedited and temporary licensing 77.13provisions of Minnesota Statutes, section 77.14197.4552. This is a onetime appropriation.

77.15Subd. 15.Board of Dentistry-0-10,000

77.16This appropriation is from the state 77.17government special revenue fund to 77.18implement expedited and temporary licensing 77.19provisions of Minnesota Statutes, section 77.20197.4552. This is a onetime appropriation.

77.2177.22Subd. 16.Board of Dietetics and Nutrition Practice-0-10,000

77.23This appropriation is from the state 77.24government special revenue fund to 77.25implement expedited and temporary licensing 77.26provisions of Minnesota Statutes, section 77.27197.4552. This is a onetime appropriation.

77.2877.29Subd. 17.Board of Marriage and Family Therapy-0-14,000

77.30This appropriation is from the state 77.31government special revenue fund to 77.32implement expedited and temporary licensing 77.33provisions of Minnesota Statutes, section 77.34197.4552. This is a onetime appropriation.

78.178.2Subd. 18.Board of Nursing Home Administrators-0-1,000

78.3This appropriation is from the state 78.4government special revenue fund to 78.5implement expedited and temporary licensing 78.6provisions of Minnesota Statutes, section 78.7197.4552. This is a onetime appropriation.

78.8Subd. 19.Board of Optometry-0-10,000

78.9This appropriation is from the state 78.10government special revenue fund to 78.11implement expedited and temporary licensing 78.12provisions of Minnesota Statutes, section 78.13197.4552. This is a onetime appropriation.

78.14Subd. 20.Board of Podiatric Medicine-0-10,000

78.15This appropriation is from the state 78.16government special revenue fund to 78.17implement expedited and temporary licensing 78.18provisions of Minnesota Statutes, section 78.19197.4552. This is a onetime appropriation.

78.20Subd. 21.Board of Social Work-0-3,000

78.21This appropriation is from the state 78.22government special revenue fund to 78.23implement expedited and temporary licensing 78.24provisions of Minnesota Statutes, section 78.25197.4552. This is a onetime appropriation.78.26    Sec. 3. Minnesota Statutes 2012, section 3.099, subdivision 3, is amended to read:78.27    Subd. 3. Leaders. The senate Committee on Rules and Administration for the senate 78.28and the house of representatives Committee on Rules and Legislative Administration for 78.29the house of representatives may each designate for their respective body up to three four78.30 leadership positions to receive up to 140 percent of the compensation of other members.78.31At the commencement of each biennial legislative session, each house of the 78.32legislature shall adopt a resolution designating its majority and minority leader.79.1The majority leader is the person elected by the caucus of members in each house 79.2which is its largest political affiliation. The minority leader is the person elected by the 79.3caucus which is its second largest political affiliation.79.4EFFECTIVE DATE.This section is effective January 6, 2015.79.5    Sec. 4. [3.886] LEGISLATIVE WATER COMMISSION.79.6    Subdivision 1.Establishment.A Legislative Water Commission is established.79.7    Subd. 2.Membership.(a) The Legislative Water Commission consists of 12 79.8members appointed as follows:79.9(1) six members of the senate, including three majority party members appointed by 79.10the majority leader and three minority party members appointed by the minority leader; and79.11(2) six members of the house of representatives, including three majority party 79.12members appointed by the speaker of the house and three minority party members 79.13appointed by the minority leader.79.14(b) Members serve at the pleasure of the appointing authority and continue to serve 79.15until their successors are appointed or until a member is no longer a member of the 79.16legislative body that appointed the member to the commission. Vacancies shall be filled in 79.17the same manner as the original positions. Vacancies occurring on the commission do not 79.18affect the authority of the remaining members of the Legislative Water Commission to 79.19carry out the function of the commission.79.20(c) Members shall elect a chair, vice chair, and other officers as determined by 79.21the commission. The chair may convene meetings as necessary to conduct the duties 79.22prescribed by this section.79.23    Subd. 3.Commission staffing.The Legislative Coordinating Commission must 79.24employ staff and contract with consultants as necessary to enable the Legislative Water 79.25Commission to carry out its duties and functions.79.26    Subd. 4.Powers and duties.(a) The Legislative Water Commission shall review 79.27water policy reports and recommendations of the Environmental Quality Board, the Board 79.28of Water and Soil Resources, the Pollution Control Agency, the Department of Natural 79.29Resources, the Metropolitan Council, and other water-related reports as may be required 79.30by law or the legislature.79.31(b) The commission may conduct public hearings and otherwise secure data and 79.32comments.79.33(c) The commission shall make recommendations as it deems proper to assist the 79.34legislature in formulating legislation.80.1(d) Data or information compiled by the Legislative Water Commission or its 80.2subcommittees shall be made available to the Legislative-Citizen Commission on 80.3Minnesota Resources, the Clean Water Council, and standing and interim committees of 80.4the legislature on request of the chair of the respective commission, council, or committee.80.5(e) The commission shall coordinate with the Clean Water Council.80.6    Subd. 5.Compensation.Members may receive per diem under section 3.099 for 80.7attending commission meetings, and may be reimbursed for expenses incurred doing 80.8the work of the commission, but shall not receive any other compensation for serving 80.9on the commission.80.10    Subd. 6.Expiration.This section expires July 1, 2019.80.11    Sec. 5. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is 80.12amended to read:80.13    Subdivision 1. Creation. A Compensation Council is created each odd-numbered 80.14year to assist the legislature in establishing the compensation of constitutional officers, 80.15members of the legislature, justices of the Supreme Court, judges of the Court of Appeals 80.16and district court, and the heads of state and metropolitan agencies included in section 80.1715A.0815
         .80.18EFFECTIVE DATE.This section is effective the day following final enactment.80.19    Sec. 6. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is 80.20amended to read:80.21    Subd. 3. Submission of recommendations. (a) By March April 15 in each 80.22odd-numbered year, the Compensation Council shall submit to the speaker of the house 80.23and the president of the senate salary recommendations for constitutional officers, 80.24legislators, justices of the Supreme Court, and judges of the Court of Appeals and district 80.25court. The recommended salary for each other office must take effect on the first Monday 80.26in January of the next odd-numbered year, with no more than one adjustment, to take 80.27effect on January 1 of the year after that. The salary recommendations for legislators,80.28 judges, and constitutional officers take effect if an appropriation of money to pay the 80.29recommended salaries is enacted after the recommendations are submitted and before 80.30their effective date. Recommendations may be expressly modified or rejected. The salary 80.31recommendations for legislators are subject to additional terms that may be adopted 80.32according to section 3.099, subdivisions 1 and 3.80.33(b) The council shall also submit to the speaker of the house and the president of 80.34the senate recommendations for the salary ranges of the heads of state and metropolitan 81.1agencies, to be effective retroactively from January 1 of that year if enacted into law. The 81.2recommendations shall include the appropriate group in section 
         15A.0815 to which each 81.3agency head should be assigned and the appropriate limitation on the maximum range of 81.4the salaries of the agency heads in each group, expressed as a percentage of the salary of 81.5the governor.81.6EFFECTIVE DATE.This section is effective the day following final enactment.81.7    Sec. 7. Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:81.8    Subd. 4. Criteria. In making compensation recommendations, the council shall 81.9consider the amount of compensation paid in government service and the private sector 81.10to persons with similar qualifications, the amount of compensation needed to attract 81.11and retain experienced and competent persons, and the ability of the state to pay the 81.12recommended compensation. In making recommendations for legislative compensation, 81.13the council shall also consider the average length of a legislative session, the amount of 81.14work required of legislators during interim periods, and opportunities to earn income from 81.15other sources without neglecting legislative duties.81.16EFFECTIVE DATE.This section is effective the day following final enactment.81.17    Sec. 8. Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:81.18    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the 81.19federal government as a condition of receiving federal funds, the commissioner shall 81.20award up to a six percent preference, but no less than the percentage awarded to any 81.21other group under this section, in the amount bid on state procurement to certified small 81.22businesses that are majority-owned and operated by: veterans.81.23(1) recently separated veterans who have served in active military service, at any 81.24time on or after September 11, 2001, and who have been discharged under honorable 81.25conditions from active service, as indicated by the person's United States Department of 81.26Defense form DD-214 or by the commissioner of veterans affairs;81.27(2) veterans with service-connected disabilities, as determined at any time by the 81.28United States Department of Veterans Affairs; or81.29(3) any other veteran-owned small businesses certified under section 16C.19, 81.30paragraph (d).81.31(b) The purpose of this designation is to facilitate the transition of veterans from 81.32military to civilian life, and to help compensate veterans for their sacrifices, including but 82.1not limited to their sacrifice of health and time, to the state and nation during their military 82.2service, as well as to enhance economic development within Minnesota.82.3    Sec. 9. Minnesota Statutes 2012, section 16C.19, is amended to read:82.416C.19 ELIGIBILITY; RULES.82.5(a) A small business wishing to participate in the programs under section 
         16C.16, 82.6subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 82.7by rule standards and procedures for certifying that small businesses, small targeted 82.8group businesses, and small businesses located in economically disadvantaged areas, 82.9and veteran-owned small businesses  are eligible to participate under the requirements 82.10of sections 
         16C.16 to 
         16C.21. The commissioner shall adopt by rule standards and 82.11procedures for hearing appeals and grievances and other rules necessary to carry out the 82.12duties set forth in sections 
         16C.16 to 
         16C.21.82.13(b) The commissioner may make rules which exclude or limit the participation of 82.14nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 82.15manufacturers' representatives, and others from eligibility under sections 
         16C.16 to 
         16C.21.82.16(c) The commissioner may make rules that set time limits and other eligibility limits 82.17on business participation in programs under sections 
         16C.16 to 
         16C.21.82.18(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a 82.19veteran-owned small business, the principal place of business of which is in Minnesota, 82.20is certified if it has been verified by the United States Department of Veterans Affairs as 82.21being either a veteran-owned small business or a service-disabled veteran-owned small 82.22business, in accordance with Public Law 109-461 and Code of Federal Regulations, 82.23title 38, part 74 Until rules are adopted pursuant to paragraph (a) for the purpose of 82.24certifying veteran-owned small businesses, the provisions of Minnesota Rules, part 82.251230.1700, may be read to include veteran-owned small businesses. In addition to the 82.26documentation required in Minnesota Rules, part 1230.1700, the veteran owner must 82.27have been discharged under honorable conditions from active service, as indicated by the 82.28veteran owner's most current United States Department of Defense form DD-214.82.29    Sec. 10. Minnesota Statutes 2012, section 122A.18, is amended by adding a 82.30subdivision to read:82.31    Subd. 7c.Temporary military license.The Board of Teaching shall establish 82.32a temporary license in accordance with section 197.4552 for teaching. The fee for a 82.33temporary license under this subdivision shall be $87.90 for an on-line application or 82.34$86.40 for a paper application.83.1    Sec. 11. [148.595] TEMPORARY MILITARY PERMIT; FEE.83.2The Board of Optometry shall establish a temporary permit in accordance with 83.3section 197.4552. The fee for the temporary military permit is $250.83.4    Sec. 12. Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision 83.5to read:83.6    Subd. 5.Temporary military permit.The board shall issue a temporary permit to 83.7members of the military in accordance with section 197.4552. The fee for the temporary 83.8permit is $250.83.9    Sec. 13. Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is 83.10amended to read:83.11    Subd. 2. Licensure and application fees. Nonrefundable licensure and application 83.12fees established by the board shall not exceed the following amounts:83.13(1) application fee for national examination is $110;83.14(2) application fee for Licensed Marriage and Family Therapist (LMFT) state 83.15examination is $110;83.16(3) initial LMFT license fee is prorated, but cannot exceed $125;83.17(4) annual renewal fee for LMFT license is $125;83.18(5) late fee for LMFT license renewal is $50;83.19(6) application fee for LMFT licensure by reciprocity is $220;83.20(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT) 83.21license is $75;83.22(8) annual renewal fee for LAMFT license is $75;83.23(9) late fee for LAMFT renewal is $25;83.24(10) fee for reinstatement of license is $150; and83.25(11) fee for emeritus status is $125; and83.26(12) fee for temporary license for members of the military is $100.83.27    Sec. 14. Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:83.28    Subd. 3. Fee. Nonrefundable fees are as follows:83.29    (1) initial license application fee for licensed professional counseling (LPC) - $150;83.30    (2) initial license fee for LPC - $250;83.31    (3) annual active license renewal fee for LPC - $250 or equivalent;83.32    (4) annual inactive license renewal fee for LPC - $125;84.1    (5) initial license application fee for licensed professional clinical counseling 84.2(LPCC) - $150;84.3    (6) initial license fee for LPCC - $250;84.4    (7) annual active license renewal fee for LPCC - $250 or equivalent;84.5    (8) annual inactive license renewal fee for LPCC - $125;84.6    (9) license renewal late fee - $100 per month or portion thereof;84.7    (10) copy of board order or stipulation - $10;84.8    (11) certificate of good standing or license verification - $25;84.9    (12) duplicate certificate fee - $25;84.10    (13) professional firm renewal fee - $25;84.11    (14) sponsor application for approval of a continuing education course - $60;84.12    (15) initial registration fee - $50;84.13    (16) annual registration renewal fee - $25; and84.14    (17) approved supervisor application processing fee - $30; and84.15    (18) temporary license for members of the military - $250.84.16    Sec. 15. Minnesota Statutes 2012, section 150A.091, is amended by adding a 84.17subdivision to read:84.18    Subd. 9c.Temporary permit.Applications for a temporary military permit in 84.19accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.84.20    Sec. 16. Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision 84.21to read:84.22    Subd. 4.Temporary military permit.The board shall establish a temporary permit 84.23in accordance with section 197.4552. The fee for the temporary military permit is $250.84.24    Sec. 17. Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter 84.2585, article 5, section 12, is amended to read:84.26154.11 EXAMINATION OF NONRESIDENT BARBERS AND 84.27INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS; 84.28TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.84.29    Subdivision 1. Examination of nonresidents. A person who meets all of the 84.30requirements for barber registration in sections 
         154.001, 
         154.002, 
         154.003, 
         154.01 to 84.31154.161
         , 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 and either has a license, certificate of 84.32registration, or an equivalent as a practicing barber or instructor of barbering from another 84.33state or country which in the discretion of the board has substantially the same requirements 85.1for registering barbers and instructors of barbering as required by sections 
         154.001, 85.2154.002
         , 
         154.003, 
         154.01 to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 or can prove 85.3by sworn affidavits practice as a barber or instructor of barbering in another state or country 85.4for at least five years immediately prior to making application in this state, shall, upon 85.5payment of the required fee, be issued a certificate of registration without examination.85.6    Subd. 2. Temporary apprentice permits for nonresidents. Any person who 85.7qualifies for examination as a registered barber under this section may apply for a 85.8temporary apprentice permit which is effective no longer than six months. All persons 85.9holding a temporary apprentice permit are subject to all provisions of sections 
         154.001, 85.10154.002
         , 
         154.003, 
         154.01 to 
         154.161, 
         154.19 to
          154.21, and 
         154.24 to 
         154.26 and the 85.11rules adopted by the board under those sections concerning the conduct and obligations 85.12of registered apprentices.85.13    Subd. 3.Temporary military license.The board shall establish a temporary license 85.14for barbers and master barbers and a temporary permit for apprentices in accordance with 85.15section 197.4552. The fee for a temporary license under this subdivision for a master 85.16barber is $85. The fee for a temporary license under this subdivision for a barber is $180. 85.17The fee for a temporary permit under this subdivision for an apprentice is $80.85.18    Sec. 18. Minnesota Statutes 2012, section 155A.27, is amended by adding a 85.19subdivision to read:85.20    Subd. 5a.Temporary military license.The board shall establish temporary 85.21licenses for a cosmetologist, nail technician, and esthetician, in accordance with section 85.22197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail 85.23technician, or esthetician is $100.85.24    Sec. 19. Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:85.25    Subd. 2. Employee. "Employee" means a person who performs services for hire 85.26for has been employed by an employer from whom a leave is requested under sections 85.27181.940
          to 
         181.944 for:85.28(1) at least 12 consecutive months immediately preceding the request or, if the 85.29employer is an educational institution, at least 12 months preceding the request; and  85.30(2) for an average number of hours per week equal to one-half the full-time 85.31equivalent position in the employee's job classification as defined by the employer's 85.32personnel policies or practices or pursuant to the provisions of a collective bargaining 85.33agreement, during those 12 months.86.1For the purpose of this subdivision, "educational institution" means an elementary or 86.2secondary school.86.3Employee includes all individuals employed at any site owned or operated by the 86.4employer but does not include an independent contractor.86.5EFFECTIVE DATE.This section is effective the day following final enactment.86.6    Sec. 20. [197.4552] EXPEDITED AND TEMPORARY LICENSING FOR 86.7FORMER AND CURRENT MEMBERS OF THE MILITARY.86.8    Subdivision 1.Expedited licensing processing.Notwithstanding any other law to 86.9the contrary, each professional licensing board defined in section 214.01, subdivisions 2 86.10and 3, shall establish a procedure to expedite the issuance of a license or certification to 86.11perform professional services regulated by each board to a qualified individual who is:86.12(1) an active duty military member;86.13(2) the spouse of an active duty military member; or86.14(3) a veteran who has left service in the two years preceding the date of license or 86.15certification application, and has confirmation of an honorable or general discharge status.86.16    Subd. 2.Temporary licenses.(a) Notwithstanding any other law to the contrary, 86.17each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall 86.18establish a procedure to issue a temporary license or certification to perform professional 86.19services regulated by each board to a qualified individual who is:86.20(1) an active duty military member;86.21(2) the spouse of an active duty military member; or86.22(3) a veteran who has left service in the two years preceding the date of license or 86.23certification application, and has confirmation of an honorable or general discharge status.86.24(b) A qualified individual under paragraph (a) must provide evidence of:86.25(1) a current, valid license, certificate, or permit in another state without history of 86.26disciplinary action by a regulatory authority in the other state; and86.27(2) a current criminal background study without a criminal conviction that is 86.28determined by the board to adversely affect the applicants' ability to become licensed.86.29(c) A temporary license or certificate issued under this subdivision shall allow a 86.30qualified individual to perform regulated professional services for a limited length of time 86.31as determined by the licensing board. During the temporary license period, the individual 86.32shall complete the full application procedure as required by applicable law.86.33    Subd. 3.Rulemaking.Each licensing board may adopt rules to carry out the 86.34provisions of this section.87.1    Sec. 21. Minnesota Statutes 2012, section 326.04, is amended by adding a subdivision 87.2to read:87.3    Subd. 1a.Temporary military certificate.The board shall establish a temporary 87.4certificate in accordance with section 197.4552.87.5    Sec. 22. Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision 87.6to read:87.7    Subd. 10.Temporary military license.The board shall establish a temporary 87.8license in accordance with section 197.4552 for the practice of architecture, professional 87.9engineering, geosciences, land surveying, landscape architecture, and interior design. 87.10The fee for the temporary license under this subdivision for the practice of architecture, 87.11professional engineering, geosciences, land surveying, landscape architecture, or interior 87.12design is $132.87.13    Sec. 23. Minnesota Statutes 2012, section 326.3382, is amended by adding a 87.14subdivision to read:87.15    Subd. 6.Temporary military license.The board shall establish a temporary 87.16license to engage in the business of private detective or protective agent in accordance 87.17with section 197.4552. The fee for the temporary license under this subdivision for a 87.18private detective is $1,000. The fee for a temporary license under this subdivision for a 87.19protective agent is $800.87.20    Sec. 24. Minnesota Statutes 2012, section 326A.04, is amended by adding a 87.21subdivision to read:87.22    Subd. 1a.Temporary military certificate.The board shall establish a temporary 87.23military certificate in accordance with section 197.4552.87.24    Sec. 25. Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is 87.25amended to read:87.26    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial 87.27issuance or renewal of a certificate or temporary military certificate under this section as 87.28provided in paragraph (b). The fee for the temporary military certificate is $100.87.29    (b) The board shall charge the following fees:87.30    (1) initial issuance of certificate, $150;87.31    (2) renewal of certificate with an active status, $100 per year;87.32    (3) initial CPA firm permits, except for sole practitioners, $100;88.1    (4) renewal of CPA firm permits, except for sole practitioners and those firms 88.2specified in clause (17), $35 per year;88.3    (5) initial issuance and renewal of CPA firm permits for sole practitioners, except for 88.4those firms specified in clause (17), $35 per year;88.5    (6) annual late processing delinquency fee for permit, certificate, or registration 88.6renewal applications not received prior to expiration date, $50;88.7    (7) copies of records, per page, 25 cents;88.8    (8) registration of noncertificate holders, nonlicensees, and nonregistrants in 88.9connection with renewal of firm permits, $45 per year;88.10    (9) applications for reinstatement, $20;88.11    (10) initial registration of a registered accounting practitioner, $50;88.12    (11) initial registered accounting practitioner firm permits, $100;88.13    (12) renewal of registered accounting practitioner firm permits, except for sole 88.14practitioners, $100 per year;88.15    (13) renewal of registered accounting practitioner firm permits for sole practitioners, 88.16$35 per year;88.17    (14) CPA examination application, $40;88.18    (15) CPA examination, fee determined by third-party examination administrator;88.19    (16) renewal of certificates with an inactive status, $25 per year; and88.20    (17) renewal of CPA firm permits for firms that have one or more offices located in 88.21another state, $68 per year.88.22    Sec. 26. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS 88.23AND FIRST MEETING.88.24Initial appointments to the Legislative Water Commission established in section 88.254 must be made by September 1, 2014. The first meeting of the commission shall be 88.26convened by the chair of the commission by October 15, 2014. The commission shall 88.27select a chair from its membership at its first meeting.88.28    Sec. 27. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL 88.29ACCOMMODATION.88.30The commissioner of management and budget, in consultation with the Commission  88.31of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs 88.32and ranking minority members of the senate Finance Committee and the house of 88.33representatives Ways and Means Committee and the governor by January 5, 2015, on 88.34advantages and disadvantages of creating an account for the special revenue fund in the 89.1state treasury to pay for costs of providing accommodations to executive branch state 89.2employees with disabilities. The report must include:89.3(1) a summary of money spent by executive branch state agencies in fiscal years 89.42012 and 2013 for providing accommodations to executive branch state employees, to 89.5the extent that such expenditures can be determined; and89.6(2) recommendations for laws and policies needed to implement an account in the 89.7special revenue fund, if one is recommended under this section; or other recommendations 89.8related to best practices in provision of accommodations for employees with disabilities 89.9in the executive branch.89.10ARTICLE 889.11ENVIRONMENT AND AGRICULTURE

89.12Section 1.  SUMMARY OF APPROPRIATIONS.

89.13The amounts shown in this section summarize direct appropriations, by fund, made 89.14in this article.

89.1520142015Total89.16General$-0-$3,321,000$3,321,00089.17Environmental-0-750,000750,00089.18Remediation-0-650,000650,00089.19Natural Resources-0-(1,450,000)(1,450,000)89.20Game and Fish-0-2,400,0002,400,00089.21Clean Water-0-2,500,0002,500,00089.2289.23Environment and Natural Resources Trust-0-490,000490,00089.24Total$-0-$8,661,000$8,661,000

89.25Sec. 2. APPROPRIATIONS.

89.26The sums shown in the columns marked "Appropriations" are added to or, if shown 89.27in parentheses, subtracted from the appropriations in Laws 2013, chapter 114, to the 89.28agencies and for the purposes specified in this article. The appropriations are from the 89.29general fund, or another named fund, and are available for the fiscal years indicated for 89.30each purpose. The figures "2014" and "2015" used in this article mean that the addition to 89.31the appropriation listed under them is available for the fiscal year ending June 30, 2014, or 89.32June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June 89.3330, 2014, are effective the day following final enactment.

89.34APPROPRIATIONS89.35Available for the Year90.1Ending June 3090.220142015

90.3Sec. 3. POLLUTION CONTROL AGENCY$-0-$1,600,000

90.4$750,000 in 2015 is from the environmental 90.5fund for SCORE block grants to counties.90.6$200,000 in 2015 is from the clean water 90.7fund for coordination with the state of 90.8Wisconsin and the National Park Service 90.9on comprehensive phosphorus reduction 90.10activities in the Lake St. Croix portion 90.11of the St. Croix River. The agency shall 90.12work with the St. Croix Basin Water 90.13Resources Planning Team and the St. Croix 90.14River Association in implementing the 90.15water monitoring and phosphorus reduction 90.16activities. This is a onetime appropriation and 90.17is subject to the availability of appropriations 90.18in Laws 2013, chapter 137, article 2, section 90.192, subdivision 2.90.20$650,000 in 2015 from the remediation 90.21fund for additional staff and administrative 90.22expenses to manage and oversee investigation 90.23and mitigation efforts at superfund sites. 90.24This is a onetime appropriation.

90.25Sec. 4. NATURAL RESOURCES

90.26Subdivision 1.Total Appropriation$-0-$3,421,000

90.27Appropriations by Fund90.28General-0-2,471,00090.29Natural Resources-0-(1,450,000)90.30Game and Fish-0-2,400,000

90.31The amounts that may be spent for each 90.32purpose are specified in the following 90.33subdivisions.91.1    Subd. 2.Land and Minerals Management

91.2Appropriations by Fund91.3General-0-2,450,00091.4Natural Resources-0-(1,450,000)

91.5$1,450,000 in 2015 is a reduction to the 91.6appropriation from the minerals management 91.7account in the natural resources fund for 91.8minerals resource management.91.9$1,450,000 in 2015 is for minerals resource 91.10management.91.11$1,000,000 in 2015 is to extinguish the 91.12school trust interest in the school trust lands 91.13identified in Minnesota Statutes, section 91.1484.027, subdivision 18, paragraph (c). This 91.15is a onetime appropriation.

91.16Subd. 3.Ecological and Water Resources-0-(1,679,000)

91.17$1,700,000 in 2015 is a reduction to surface 91.18and groundwater management. This is a 91.19onetime reduction.91.20$21,000 in 2015 for a grant to the 91.21Mississippi Headwaters Board for the cost 91.22of implementing the comprehensive plan for 91.23the upper Mississippi within the areas under 91.24the board's jurisdiction.

91.25Subd. 4.Parks and Trails Management-0-1,700,000

91.26$1,700,000 in 2015 is for parks and 91.27trails management. This is a onetime 91.28appropriation.

91.29Subd. 5.Fish and Wildlife Management-0-2,400,000

91.30$2,000,000 in 2015 is from the game and fish 91.31fund for shooting sports facility grants under 91.32Minnesota Statutes, section 87A.10. This is 91.33a onetime appropriation and is available until 91.34June 30, 2017.92.1$400,000 in 2015 is from the heritage 92.2enhancement account in the game and fish 92.3fund for a grant to Let's Go Fishing of 92.4Minnesota to provide community outreach 92.5to senior citizens, youth, and veterans and 92.6for the costs associated with establishing 92.7and recruiting new chapters. The grants 92.8must be matched with cash or in-kind 92.9contributions from nonstate sources. Of 92.10this amount, $25,000 is for Asian Outdoor 92.11Heritage for youth fishing recruitment efforts 92.12and outreach in the metropolitan area. The 92.13commissioner may spend up to three percent 92.14of the appropriation to administer the grant. 92.15This is a onetime appropriation and is 92.16available until June 30, 2016.

92.1792.18Sec. 5. BOARD OF WATER AND SOIL RESOURCES$-0-$1,150,000

92.19$1,150,000 in 2015 from the clean water 92.20fund is added to the appropriation to the 92.21Board of Water and Soil Resources for 92.22grants in Laws 2013, chapter 137, article 2, 92.23section 7, paragraph (b). This is a onetime 92.24appropriation.

92.25Sec. 6. ADMINISTRATION$-0-$185,000

92.26$185,000 in 2015 is for activities and the 92.27administrative expenses of the school trust 92.28lands director and additional staff, under 92.29Minnesota Statutes, section 127A.353.

92.3092.31Sec. 7. LEGISLATIVE COORDINATING COMMISSION$-0-$15,000

92.32$15,000 in 2015 is for the administrative 92.33expenses of the Permanent School Fund 92.34Commission under Minnesota Statutes, 93.1section 127A.30, and for compensation 93.2and expense reimbursement of commission 93.3members.

93.4Sec. 8. UNIVERSITY OF MINNESOTA$-0-$1,640,000

93.5$490,000 in 2015 is from the environment 93.6and natural resources trust fund to develop 93.7and support a terrestrial invasive species 93.8research center at the University of 93.9Minnesota that will develop new techniques 93.10to control terrestrial invasive species. This 93.11is a onetime appropriation and is available 93.12until June 30, 2019.93.13$170,000 from the environment and natural 93.14resources trust fund appropriated in Laws 93.152011, First Special Session, chapter 2, article 93.163, section 2, subdivision 9, paragraph (d), 93.17Reinvest in Minnesota Wetlands Reserve 93.18Acquisition and Restoration Program 93.19Partnership, is transferred to the Board of 93.20Regents to develop and support a terrestrial 93.21invasive species research center at the 93.22University of Minnesota that will develop 93.23new techniques to control terrestrial invasive 93.24species and is available until June 30, 2019.93.25$1,150,000 in 2015 from the clean water 93.26fund is for the Forever Green Agricultural 93.27Initiative and to protect the state's natural 93.28resources while increasing efficiency, 93.29profitability, and productivity of Minnesota 93.30farmers by incorporating perennial and 93.31winter annual crops into existing agricultural 93.32practices. This is a onetime appropriation and 93.33is subject to the availability of appropriations 93.34in Laws 2013, chapter 137, article 2, section 93.352, subdivision 2.

94.1Sec. 9. AGRICULTURE$-0-$550,000

94.2$350,000 in 2015 is for an increase in retail 94.3food handler inspections.94.4$1,500,000 in 2015 is a reduction to the 94.5agricultural growth, research, and innovation 94.6program. This is a onetime reduction and 94.7none of this reduction may be allocated to 94.8the county fair arts access grants. 94.9$1,500,000 in 2015 is for a grant to Second 94.10Harvest Heartland to compensate Minnesota 94.11agricultural producers and processors for 94.12costs incurred to harvest and package 94.13for transfer surplus fruits, vegetables, or 94.14other agricultural commodities that would 94.15otherwise go unharvested or be discarded. 94.16Surplus commodities must be distributed 94.17statewide to food shelves and other charitable 94.18organizations that are eligible to receive 94.19food from the food banks. Second Harvest 94.20Heartland may use up to five percent of the 94.21grant for administrative expenses. This is a 94.22onetime appropriation.94.23$200,000 in 2015 is added to the 94.24appropriation in Laws 2013, chapter 114, 94.25article 1, section 3, subdivision 5, for 94.26distribution to the state's county fairs.

94.27Sec. 10. METROPOLITAN COUNCIL$-0-$100,000

94.28$800,000 from the environment and natural 94.29resources trust fund appropriated in Laws 94.302011, First Special Session, chapter 2, article 94.313, section 2, subdivision 9, paragraph (d), 94.32Reinvest in Minnesota Wetland Reserve 94.33Acquisition and Restoration Program 94.34Partnership is transferred to the Metropolitan 95.1Council for a grant to the White Bear Lake 95.2Conservation District to contract with an 95.3engineering firm for a detailed feasibility 95.4study of the lake augmentation option for 95.5White Bear Lake and is available until 95.6June 30, 2016. The detailed feasibility 95.7study must, at a minimum, provide for an 95.8evaluation of alternative routes; preliminary 95.9design; identify regulatory issues; provide 95.10preliminary cost estimates; and identify 95.11any other considerations that would affect 95.12the project's feasibility. The White Bear 95.13Lake Conservation District must choose 95.14an engineering firm that has demonstrated 95.15significant experience working with issues 95.16concerning water resources, watershed 95.17management and water supply management, 95.18and has demonstrated knowledge of the 95.19characterization of groundwater and surface 95.20water interaction in White Bear Lake and 95.21the effect of withdrawals from groundwater 95.22under White Bear Lake.95.23$100,000 in 2015 is for a grant to the city of 95.24Shoreview for a feasibility study regarding 95.25the lowering of the water level of Turtle Lake 95.26and the possible effects of an augmentation 95.27of the lake.95.28    Sec. 11. Laws 2013, chapter 114, article 3, section 3, subdivision 6, is amended to read:

95.29Subd. 6.Remediation Fund

95.30The commissioner shall transfer up 95.31to $46,000,000 $47,150,000 from the 95.32environmental fund to the remediation fund 95.33for the purposes of the remediation fund 96.1under Minnesota Statutes, section 
         116.155, 96.2subdivision 2
         .96.3    Sec. 12.  REPEALER.96.4Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws 96.52010, First Special Session chapter 1, article 6, section 6, and Laws 2013, chapter 114, 96.6article 3, section 9, is repealed.96.7ARTICLE 996.8ENVIRONMENT AND AGRICULTURE FISCAL IMPLEMENTATION 96.9PROVISIONS96.10    Section 1. Minnesota Statutes 2012, section 16A.125, subdivision 5, is amended to read:96.11    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used 96.12in this subdivision, means public land in trust under the Constitution set apart as "forest 96.13lands under the authority of the commissioner" of natural resources as defined by section 96.1489.001, subdivision 13
         .96.15(b) The commissioner of management and budget shall credit the revenue from the 96.16forest trust fund lands to the forest suspense account. The account must specify the trust 96.17funds interested in the lands and the respective receipts of the lands.96.18(c) After a fiscal year, the commissioner of management and budget shall certify 96.19the costs incurred for forestry during that year under appropriations for the improvement, 96.20administration, and management of state forest trust fund lands and construction and 96.21improvement of forest roads to enhance the forest value of the lands. The certificate 96.22must specify the trust funds interested in the lands. After presentation to the Legislative 96.23Permanent School Fund Commission, the commissioner of natural resources shall 96.24supply the commissioner of management and budget with the information needed for the 96.25certificate. The certificate shall include an analysis that compares costs certified under this 96.26section with costs incurred on other public and private lands with similar land assets.96.27(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 96.28suspense account during that fiscal year as follows:96.29(1) the amount of the certified costs incurred by the state for forest management, 96.30forest improvement, and road improvement during the fiscal year shall be transferred to 96.31the forest management investment account established under section 
         89.039;96.32(2) the amount of costs incurred by the Legislative Permanent School Fund 96.33Commission under section 127A.30, and by the school trust lands director under section 96.34127A.353, shall be transferred to the general fund;97.1(3) the balance of the certified costs incurred by the state during the fiscal year 97.2shall be transferred to the general fund; and97.3(3) (4) the balance of the receipts shall then be returned prorated to the trust funds in 97.4proportion to their respective interests in the lands which produced the receipts.97.5    Sec. 2. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 97.6to read:97.7    Subd. 1c.Apiary."Apiary" means a place where a collection of one or more hives 97.8or colonies of bees or the nuclei of bees are kept.97.9    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 97.10to read:97.11    Subd. 2a.Bee."Bee" means any stage of the common honeybee, Apis mellifera (L).97.12    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 97.13to read:97.14    Subd. 2b.Bee owner."Bee owner" means a person who owns an apiary.97.15    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 97.16to read:97.17    Subd. 4c.Colony."Colony" means the aggregate of worker bees, drones, the queen, 97.18and developing young bees living together as a family unit in a hive or other dwelling.97.19    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 97.20to read:97.21    Subd. 11a.Hive."Hive" means a frame hive, box hive, box, barrel, log gum, skep, 97.22or any other receptacle or container, natural or artificial, or any part of one, which is 97.23used as domicile for bees.97.24    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 97.25to read:97.26    Subd. 20a.Pollinator."Pollinator" means an insect that pollinates flowers.97.27    Sec. 8. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision 97.28to read:98.1    Subd. 4.Pollinators.The commissioner may take enforcement action under 98.2chapter 18D for a violation of this chapter, or any rule adopted under this chapter, 98.3that results in harm to pollinators, including but not limited to applying a product in 98.4a manner inconsistent with the product's label or labeling and resulting in pollinator 98.5death or willfully applying pesticide in a manner inconsistent with the product label or 98.6labeling. The commissioner must deposit any penalty collected under this subdivision in 98.7the pesticide regulatory account in section 18B.05.98.8    Sec. 9. Minnesota Statutes 2012, section 18B.04, is amended to read:98.918B.04 PESTICIDE IMPACT ON ENVIRONMENT.98.10(a) The commissioner shall:98.11(1) determine the impact of pesticides on the environment, including the impacts on 98.12surface water and groundwater in this state;98.13(2) develop best management practices involving pesticide distribution, storage, 98.14handling, use, and disposal; and98.15(3) cooperate with and assist other state agencies and local governments to protect 98.16public health, pollinators, and the environment from harmful exposure to pesticides.98.17(b) The commissioner may assemble a pollinator emergency response team of 98.18experts under section 16C.10, subdivision 2, to consult in the investigation of pollinator 98.19deaths or illnesses. The pollinator emergency response team may include representatives 98.20from local, state, and federal agencies; academia, including the University of Minnesota; 98.21or other professionals as deemed necessary by the commissioner.98.22    Sec. 10. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE; 98.23APPROPRIATION.98.24    Subdivision 1.Compensation required.(a) The commissioner of agriculture must 98.25compensate a person for an acute pesticide poisoning resulting in the death of bees or loss 98.26of bee colonies owned by the person, provided: 98.27(1) the person who applied the pesticide cannot be determined;98.28(2) the person who applied the pesticide did so in a manner consistent with the 98.29pesticide product's label or labeling; or 98.30(3) the person who applied the pesticide did so in a manner inconsistent with the 98.31pesticide product's label or labeling.98.32(b) Except as provided in this section, the bee owner is entitled to the fair market 98.33value of the dead bees and bee colonies losses as determined by the commissioner upon 98.34recommendation by academic experts and bee keepers. In any fiscal year, a bee owner 99.1must not be compensated for a claim that is less than $100 or compensated more than 99.2$20,000 for all eligible claims.99.3(c) To be eligible for compensation under this section, the bee owner must be 99.4registered with a commonly utilized pesticide registry program, as designated by the 99.5commissioner of agriculture.99.6    Subd. 2.Applicator responsible.In the event a person applies a pesticide in a 99.7manner inconsistent with the pesticide product's label or labeling requirements as approved 99.8by the commissioner and is determined to have caused the acute pesticide poisoning of bees, 99.9resulting in death or loss of a bee colony kept for commercial purposes, then the person so 99.10identified must bear the responsibility of restitution for the value of the bees to the owner. 99.11In these cases the commissioner must not provide compensation as provided in this section.99.12    Subd. 3.Claim form.The bee owner must file a claim on forms provided by the 99.13commissioner and available on the Department of Agriculture's Web site.99.14    Subd. 4.Determination.The commissioner must determine whether the death of 99.15the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the 99.16pesticide applicator can be determined, and whether the pesticide applicator applied the 99.17pesticide product in a manner consistent with the pesticide product's label or labeling.99.18    Subd. 5.Payments; denial of compensation.(a) If the commissioner determines 99.19the bee death or loss of bee colony was caused by an acute pesticide poisoning and 99.20either the pesticide applicator cannot be determined or the pesticide applicator applied 99.21the pesticide product in a manner consistent with the pesticide product's label or labeling, 99.22the commissioner may award compensation from the pesticide regulatory account. If the 99.23pesticide applicator can be determined and the applicator applied the pesticide product 99.24in a manner inconsistent with the product's label or labeling, the commissioner may 99.25collect a penalty from the pesticide applicator sufficient to compensate the bee owner 99.26for the fair market value of the dead bees and bee colonies losses, and must award the 99.27money to the bee owner.99.28(b) If the commissioner denies compensation claimed by a bee owner under this 99.29section, the commissioner must issue a written decision based upon the available evidence. 99.30The decision must include specification of the facts upon which the decision is based and 99.31the conclusions on the material issues of the claim. The commissioner must mail a copy 99.32of the decision to the bee owner.99.33(c) A decision to deny compensation claimed under this section is not subject to the 99.34contested case review procedures of chapter 14, but may be reviewed upon a trial de 99.35novo in a court in the county where the loss occurred. The decision of the court may be 99.36appealed as in other civil cases. Review in court may be obtained by filing a petition for 100.1review with the administrator of the court within 60 days following receipt of a decision 100.2under this section. Upon the filing of a petition, the administrator must mail a copy to the 100.3commissioner and set a time for hearing within 90 days of the filing.100.4    Subd. 6.Deduction from payment.The commissioner must reduce payments 100.5made under this section by any compensation received by the bee owner for dead bees and 100.6bee colonies losses as proceeds from an insurance policy or from another source.100.7    Subd. 7.Appropriation.The amount necessary to pay claims under this section, 100.8not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory 100.9account in section 18B.05.100.10    Sec. 11. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:100.11    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort 100.12Snelling upper bluff, with the exception of payment for costs of the water line as described 100.13in subdivision 6, shall be deposited in the natural resources fund and credited to a state 100.14park account. Interest earned on the money in the account accrues to the account.100.15(b) Revenue and expenses from the upper bluff shall be tracked separately within 100.16the account. Money in the account derived from the leasing or operation of the property 100.17described in subdivision 1 may be is appropriated annually to the commissioner for 100.18the payment of expenses attributable to the leasing, development, and operation of the 100.19property described in subdivision 1, including, but not limited to, the maintenance, repair, 100.20and rehabilitation of historic buildings and landscapes.100.21    Sec. 12. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:100.22    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate 100.23and maintain the Minnesota Zoological Garden at a site in Dakota County legally 100.24described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist 100.25of adequate facilities and structures for the collection, habitation, preservation, care, 100.26exhibition, examination or study of wild and domestic animals, including, but not limited 100.27to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board 100.28may provide such lands, buildings and equipment as it deems necessary for parking, 100.29transportation, entertainment, education or instruction of the public in connection with 100.30such Zoological Garden. The Zoological Garden is the official pollinator bank for the state 100.31of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to 100.32avert the extinction of pollinator species by cultivating insurance breeding populations.100.33    Sec. 13. [87A.10] SHOOTING SPORTS FACILITY GRANTS.101.1The commissioner of natural resources shall administer a program to provide 101.2cost-share grants to local recreational shooting clubs for up to 50 percent of the costs 101.3of developing or rehabilitating shooting sports facilities for public use. A facility 101.4rehabilitated or developed with a grant under this section must be open to the general 101.5public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner 101.6shall give preference to projects that will provide the most opportunities for youth.101.7    Sec. 14. [92.83] CONDEMNATION OF SCHOOL TRUST LAND.101.8    Subdivision 1.Purpose.The purpose of this section is to extinguish the school trust 101.9interest in school trust lands where long-term economic return is prohibited by designation 101.10or policy while producing economic benefits for Minnesota's public schools. For the 101.11purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the 101.12sale of school trust lands to a public sale, the commissioner of natural resources shall 101.13acquire school trust lands through condemnation, as provided in subdivision 2.101.14    Subd. 2.Commencement of condemnation proceedings.When the commissioner 101.15of natural resources has determined sufficient money is available to acquire any of the 101.16lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner 101.17shall proceed to extinguish the school trust interest by condemnation action. When 101.18requested by the commissioner, the attorney general shall commence condemnation of 101.19the identified school trust lands.101.20    Subd. 3.Payment.The portion of the payment of the award and judgment that 101.21is for the value of the land shall be deposited into the permanent school fund. The 101.22remainder of the award and judgment payment shall first be remitted for reimbursement 101.23to the accounts from which expenses were paid, with any remainder deposited into the 101.24permanent school fund.101.25    Sec. 15. Minnesota Statutes 2012, section 93.22, subdivision 1, is amended to read:101.26    Subdivision 1. Generally. (a) All payments under sections 
         93.14 to 
         93.285 shall be 101.27made to the Department of Natural Resources and shall be credited according to this section.101.28    (b) TwentyTen percent of all payments under sections 
         93.14 to 
         93.285 shall be 101.29credited to the minerals management account in the natural resources fund as costs for 101.30the administration and management of state mineral resources by the commissioner of 101.31natural resources.101.32    (c) The remainder of the payments shall be credited as follows:102.1    (1) if the lands or minerals and mineral rights covered by a lease are held by the state 102.2by virtue of an act of Congress, payments made under the lease shall be credited to the 102.3permanent fund of the class of land to which the leased premises belong;102.4    (2) if a lease covers the bed of navigable waters, payments made under the lease 102.5shall be credited to the permanent school fund of the state;102.6    (3) if the lands or minerals and mineral rights covered by a lease are held by the state 102.7in trust for the taxing districts, payments made under the lease shall be distributed annually 102.8on the first day of September to the respective counties in which the lands lie, to be 102.9apportioned among the taxing districts interested therein as follows: county, three-ninths; 102.10town or city, two-ninths; and school district, four-ninths;102.11    (4) if the lands or mineral rights covered by a lease became the absolute property of 102.12the state under the provisions of chapter 84A, payments made under the lease shall be 102.13distributed as follows: county containing the land from which the income was derived, 102.14five-eighths; and general fund of the state, three-eighths; and102.15    (5) except as provided under this section and except where the disposition of 102.16payments may be otherwise directed by law, payments made under a lease shall be paid 102.17into the general fund of the state.102.18    Sec. 16. Minnesota Statutes 2012, section 93.2236, is amended to read:102.1993.2236 MINERALS MANAGEMENT ACCOUNT.102.20(a) The minerals management account is created as an account in the natural 102.21resources fund. Interest earned on money in the account accrues to the account. Money in 102.22the account may be spent or distributed only as provided in paragraphs (b) and (c).102.23(b) If the balance in the minerals management account exceeds $3,000,000102.24 $1,500,000 on June 30, the amount exceeding $3,000,000 $1,500,000 must be distributed 102.25to the permanent school fund, the permanent university fund, and taxing districts as 102.26provided in section 
         93.22, subdivision 1, paragraph (c). The amount distributed to each 102.27fund must be in the same proportion as the total mineral lease revenue received in the 102.28previous biennium from school trust lands, university lands, and lands held by the state in 102.29trust for taxing districts.102.30(c) Subject to appropriation by the legislature, money in the minerals management 102.31account may be spent by the commissioner of natural resources for mineral resource 102.32management and projects to enhance future mineral income and promote new mineral 102.33resource opportunities.103.1    Sec. 17. Minnesota Statutes 2012, section 103G.251, is amended to read:103.2103G.251 INVESTIGATION OF ACTIVITIES WITHOUT PERMIT103.3 AFFECTING WATERS OF THE STATE.103.4    Subdivision 1. Investigations. If the commissioner determines that an investigation 103.5is in the public interest, the commissioner may investigate and monitor activities being 103.6conducted with or without a permit that may affect waters of the state.103.7    Subd. 2. Findings and order. (a) With or without a public hearing, the 103.8commissioner may make findings and issue orders related to activities being conducted 103.9without a permit that affect waters of the state as otherwise authorized under this chapter.103.10(b) A copy of the findings and order must be served on the person to whom the 103.11order is issued.103.12(c) If the commissioner issues the findings and order without a hearing, the person to 103.13whom the order is issued may file a demand for a hearing with the commissioner. The 103.14demand for a hearing must be accompanied by the bond as provided in section 
         103G.311, 103.15subdivision 6
         , and the hearing must be held in the same manner and with the same 103.16requirements as a hearing held under section 
         103G.311, subdivision 5. The demand for 103.17a hearing and bond must be filed by 30 days after the person is served with a copy of 103.18the commissioner's order.103.19(d) The hearing must be conducted as a contested case hearing under chapter 14.103.20(e) If the person to whom the order is addressed does not demand a hearing or 103.21demands a hearing but fails to file the required bond:103.22(1) the commissioner's order becomes final at the end of 30 days after the person is 103.23served with the order; and103.24(2) the person may not appeal the order.103.25(f) An order of the commissioner may be recorded or filed by the commissioner in 103.26the office of the county recorder or registrar of titles, as appropriate, in the county where 103.27the real property is located as a deed restriction on the property that runs with the land 103.28and is binding on the owners, successors, and assigns until the conditions of the order 103.29are met or the order is rescinded.103.30    Sec. 18. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:103.31    Subd. 5. Prohibition on once-through water use permits. (a) Except as provided 103.32in paragraph (c), the commissioner may not, after December 31, 1990, issue a water 103.33use permit to increase the volume of appropriation from a groundwater source for a 103.34once-through cooling system using in excess of 5,000,000 gallons annually.104.1(b) Except as provided in paragraph (c), once-through system water use permits 104.2using in excess of 5,000,000 gallons annually, must be terminated by the commissioner 104.3by the end of their design life but not later than December 31, 2010, unless the discharge 104.4is into a public water basin within a nature preserve approved by the commissioner and 104.5established prior to January 1, 2001. Existing once-through systems must not be expanded 104.6and are required to convert to water efficient alternatives within the design life of existing 104.7equipment.104.8(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of 104.9the commissioners of health and the Pollution Control Agency, may issue once-through 104.10system water use permits on an annual basis for aquifer storage and recovery systems that 104.11return all once-through system water to the source aquifer. Water use permit processing 104.12fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph, 104.13including any reuse of water returned to the source aquifer.104.14EFFECTIVE DATE.This section is effective January 1, 2015.104.15    Sec. 19. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:104.16    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs 104.17(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in 104.18accordance with the schedule of fees in this subdivision for each water use permit in force 104.19at any time during the year. Fees collected under this paragraph are credited to the water 104.20management account in the natural resources fund. The schedule is as follows, with the 104.21stated fee in each clause applied to the total amount appropriated:104.22    (1) $140 for amounts not exceeding 50,000,000 gallons per year;104.23    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 104.24than 100,000,000 gallons per year;104.25    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less 104.26than 150,000,000 gallons per year;104.27    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but 104.28less than 200,000,000 gallons per year;104.29    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less 104.30than 250,000,000 gallons per year;104.31    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but 104.32less than 300,000,000 gallons per year;104.33    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 104.34than 350,000,000 gallons per year;105.1    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 105.2less than 400,000,000 gallons per year;105.3    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 105.4than 450,000,000 gallons per year;105.5    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 105.6less than 500,000,000 gallons per year; and105.7    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.105.8    (b) For once-through cooling systems, a water use processing fee must be prescribed 105.9by the commissioner in accordance with the following schedule of fees for each water use 105.10permit in force at any time during the year:105.11    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and105.12    (2) for all other users, $420 per 1,000,000 gallons.105.13    (c) The fee is payable based on the amount of water appropriated during the year 105.14and, except as provided in paragraph (f), the minimum fee is $100.105.15    (d) For water use processing fees other than once-through cooling systems:105.16    (1) the fee for a city of the first class may not exceed $250,000 per year;105.17    (2) the fee for other entities for any permitted use may not exceed:105.18    (i) $60,000 per year for an entity holding three or fewer permits;105.19    (ii) $90,000 per year for an entity holding four or five permits; or105.20    (iii) $300,000 per year for an entity holding more than five permits;105.21    (3) the fee for agricultural irrigation may not exceed $750 per year;105.22    (4) the fee for a municipality that furnishes electric service and cogenerates steam 105.23for home heating may not exceed $10,000 for its permit for water use related to the 105.24cogeneration of electricity and steam; and105.25    (5) no fee is required for a project involving the appropriation of surface water to 105.26prevent flood damage or to remove flood waters during a period of flooding, as determined 105.27by the commissioner.105.28    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two105.29 ten percent per month calculated from the original due date must be imposed on the unpaid 105.30balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 105.31may not be imposed on an agency, as defined in section 
         16B.01, subdivision 2, or federal 105.32governmental agency holding a water appropriation permit.105.33    (f) The minimum water use processing fee for a permit issued for irrigation of 105.34agricultural land is $20 for years in which:105.35    (1) there is no appropriation of water under the permit; or106.1    (2) the permit is suspended for more than seven consecutive days between May 1 106.2and October 1.106.3(g) The commissioner shall waive the water use permit fee for installations and 106.4projects that use storm water runoff or where public entities are diverting water to treat a 106.5water quality issue and returning the water to its source without using the water for any 106.6other purpose, unless the commissioner determines that the proposed use adversely affects 106.7surface water or groundwater to a significant extent.106.8    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in 106.9paragraph (a) shall be applied to the volume of water used in each of the months of June, 106.10July, and August that exceeds the volume of water used in January for municipal water 106.11use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 106.12with more than one permit shall be determined based on the total appropriations from all 106.13permits that supply a common distribution system.106.14    Sec. 20. Minnesota Statutes 2012, section 103G.281, is amended by adding a 106.15subdivision to read:106.16    Subd. 4.Penalty for noncompliant reporting. The commissioner may assess 106.17penalties for noncompliant reporting of water use information as provided in this section. 106.18The penalty is ten percent of the annual water use permit processing fee.106.19    Sec. 21. [103G.299] ADMINISTRATIVE PENALTIES.106.20    Subdivision 1.Authority to issue penalty orders.(a) As provided in paragraph 106.21(b), the commissioner may issue an order requiring violations to be corrected and 106.22administratively assessing monetary penalties for violations of sections 103G.271 and 106.23103G.275, and any rules adopted under those sections.106.24(b) An order under this section may be issued to a person for water appropriation 106.25activities without a required permit.106.26(c) The order must be issued as provided in this section and in accordance with 106.27the plan prepared under subdivision 12.106.28    Subd. 2.Amount of penalty; considerations.(a) The commissioner may issue 106.29orders assessing administrative penalties based on potential for harm and deviation from 106.30compliance. For a violation that presents: (1) a minor potential for harm and deviation 106.31from compliance, the penalty will be no more than $1,000; (2) a moderate potential for 106.32harm and deviation from compliance, the penalty will be no more than $10,000; and (3) 106.33a severe potential for harm and deviation from compliance, the penalty will be no more 106.34than $20,000.107.1(b) In determining the amount of a penalty the commissioner may consider:107.2(1) the gravity of the violation, including potential for, or real, damage to the public 107.3interest or natural resources of the state;107.4(2) the history of past violations;107.5(3) the number of violations;107.6(4) the economic benefit gained by the person by allowing or committing the 107.7violation based on data from local or state bureaus or educational institutions; and107.8(5) other factors as justice may require, if the commissioner specifically identifies 107.9the additional factors in the commissioner's order.107.10(c) For a violation after an initial violation, including a continuation of the initial 107.11violation, the commissioner must, in determining the amount of a penalty, consider the 107.12factors in paragraph (b) and the:107.13(1) similarity of the most recent previous violation and the violation to be penalized;107.14(2) time elapsed since the last violation;107.15(3) number of previous violations; and107.16(4) response of the person to the most recent previous violation identified.107.17    Subd. 3.Contents of order.An order assessing an administrative penalty under 107.18this section must include:107.19(1) a concise statement of the facts alleged to constitute a violation;107.20(2) a reference to the section of the statute, rule, order, or term or condition of 107.21a permit that has been violated;107.22(3) a statement of the amount of the administrative penalty to be imposed and the 107.23factors upon which the penalty is based; and107.24(4) a statement of the person's right to review of the order.107.25    Subd. 4.Corrective order.(a) The commissioner may issue an order assessing a 107.26penalty and requiring the violations cited in the order to be corrected within a time period 107.27specified by the commissioner.107.28(b) The person to whom the order was issued must provide information to the 107.29commissioner before the 31st day after the order was received demonstrating that the 107.30violation has been corrected or that appropriate steps toward correcting the violation 107.31have been taken.107.32(c) The commissioner must determine whether the violation has been corrected and 107.33notify the person subject to the order of the commissioner's determination.107.34    Subd. 5.Penalty.(a) Unless the person requests review of the order under 107.35subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:108.1(1) on the 31st day after the order was received, if the person subject to the order 108.2fails to provide information to the commissioner showing that the violation has been 108.3corrected or that appropriate steps have been taken toward correcting the violation; or108.4(2) on the 20th day after the person receives the commissioner's determination under 108.5subdivision 4, paragraph (c), if the person subject to the order has provided information 108.6to the commissioner that the commissioner determines is not sufficient to show that the 108.7violation has been corrected or that appropriate steps have been taken toward correcting 108.8the violation.108.9(b) The penalty is due by 31 days after the order was received, unless review of the 108.10order under subdivision 6 or 7 has been sought.108.11(c) Interest at the rate established in section 549.09 begins to accrue on penalties 108.12under this subdivision on the 31st day after the order with the penalty was received.108.13    Subd. 6.Expedited administrative hearing.(a) Within 30 days after receiving 108.14an order or within 20 days after receiving notice that the commissioner has determined 108.15that a violation has not been corrected or appropriate steps have not been taken, the 108.16person subject to an order under this section may request an expedited hearing, using 108.17the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the 108.18commissioner's determination. The hearing request must specifically state the reasons 108.19for seeking review of the order. The person to whom the order is directed and the 108.20commissioner are the parties to the expedited hearing. The commissioner must notify the 108.21person to whom the order is directed of the time and place of the hearing at least 20 days 108.22before the hearing. The expedited hearing must be held within 30 days after a request for 108.23hearing has been filed with the commissioner unless the parties agree to a later date.108.24(b) All written arguments must be submitted within ten days following the close of 108.25the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to 108.261400.8612, as modified by this subdivision.108.27(c) The administrative law judge must issue a report making recommendations about 108.28the commissioner's action to the commissioner within 30 days following the close of the 108.29record. The administrative law judge may not recommend a change in the amount of the 108.30proposed penalty unless the administrative law judge determines that, based on the factors 108.31in subdivision 2, the amount of the penalty is unreasonable.108.32(d) If the administrative law judge makes a finding that the hearing was requested 108.33solely for purposes of delay or that the hearing request was frivolous, the commissioner 108.34may add to the amount of the penalty the costs charged to the department by the Office of 108.35Administrative Hearings for the hearing.109.1(e) If a hearing has been held, the commissioner may not issue a final order until at 109.2least five days after receipt of the report of the administrative law judge. The person to 109.3whom an order is issued may, within those five days, comment to the commissioner on the 109.4recommendations, and the commissioner must consider the comments. The final order 109.5may be appealed in the manner provided in sections 14.63 to 14.69.109.6(f) If a hearing has been held and a final order issued by the commissioner, the 109.7penalty must be paid by 30 days after the date the final order is received unless review of 109.8the final order is requested under sections 14.63 to 14.69. If review is not requested or the 109.9order is reviewed and upheld, the amount due is the penalty, together with interest accruing 109.10from 31 days after the original order was received at the rate established in section 549.09.109.11    Subd. 7.Mediation.In addition to review under subdivision 6, the commissioner 109.12may enter into mediation concerning an order issued under this section if the commissioner 109.13and the person to whom the order is issued both agree to mediation.109.14    Subd. 8.Penalties due and payable.The commissioner may enforce penalties that 109.15are due and payable under this section in any manner provided by law for the collection 109.16of debts.109.17    Subd. 9.Revocation and suspension of permit.If a person fails to pay a penalty 109.18owed under this section, the commissioner has grounds to revoke a permit or to refuse 109.19to amend a permit or issue a new permit.109.20    Subd. 10.Cumulative remedy.The authority of the commissioner to issue a 109.21corrective order assessing penalties is in addition to other remedies available under statutory 109.22or common law, except that the state may not seek civil penalties under any other provision 109.23of law for the violations covered by the administrative penalty order. The payment of a 109.24penalty does not preclude the use of other enforcement provisions, under which penalties 109.25are not assessed, in connection with the violation for which the penalty was assessed.109.26    Subd. 11.Deposit of fees.Fees collected under this section must be credited to the 109.27water management account in the natural resources fund.109.28    Subd. 12.Plan for use of administrative penalties.The commissioner must 109.29prepare a plan for using the administrative penalty authority in this section. The plan must 109.30include explanations for how the commissioner will determine whether violations are 109.31minor, moderate, or severe. The commissioner must provide a 30-day period for public 109.32comment on the plan. The plan must be finalized within six months after the effective 109.33date of this section.109.34    Sec. 22. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:109.35116V.03 APPROPRIATION.110.1$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the 110.2general fund to the commissioner of revenue for transfer to the agricultural project 110.3utilization account in the special revenue fund for the Agricultural Utilization Research 110.4Institute established under section 
         116V.01.110.5    Sec. 23. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by 110.6Laws 2009, chapter 37, article 1, section 61, is amended to read:

110.7Subd. 7.Fish and Wildlife Management123,000119,000

110.8Appropriations by Fund110.9General-0-(427,000)110.10Game and Fish123,000546,000

110.11$329,000 in 2009 is a reduction for fish and 110.12wildlife management.110.13$46,000 in 2009 is a reduction in the 110.14appropriation for the Minnesota Shooting 110.15Sports Education Center.110.16$52,000 in 2009 is a reduction for licensing.110.17$123,000 in 2008 and $246,000 in 2009 are 110.18from the game and fish fund to implement 110.19fish virus surveillance, prepare infrastructure 110.20to handle possible outbreaks, and implement 110.21control procedures for highest risk waters 110.22and fish production operations. This is a 110.23onetime appropriation.110.24Notwithstanding Minnesota Statutes, section 110.25297A.94
         , paragraph (e), $300,000 in 2009 110.26is from the second year appropriation 110.27in Laws 2007, chapter 57, article 1, 110.28section 4, subdivision 7, from the heritage 110.29enhancement account in the game and fish 110.30fund for shooting sports facilities and hunter 110.31education. Of this amount, $200,000 is to 110.32study, predesign, and design a shooting sports 110.33facility in the seven-county metropolitan 110.34area and to establish basic hunter education, 111.1firearms safety, and archery ranges on public 111.2land, and $100,000 is for a grant to the Itasca 111.3County Gun Club for shooting sports facility 111.4improvements. This is available onetime 111.5only and is available until expended.111.6$300,000 in 2009 is appropriated from the 111.7game and fish fund for only activities that 111.8improve, enhance, or protect fish and wildlife 111.9resources. This is a onetime appropriation.111.10    Sec. 24. Laws 2013, chapter 114, article 4, section 47, is amended by adding an 111.11effective date to read:111.12EFFECTIVE DATE.This section is effective June 1, 2013.111.13EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.111.14    Sec. 25. BEE VALUATION PROTOCOL REQUIRED.111.15No later than January 1, 2015, the commissioner of agriculture must report to 111.16the house of representatives and senate committees with jurisdiction over agriculture 111.17finance the protocol that the commissioner developed, in consultation with experts, for 111.18determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for 111.19purposes of compensation under Minnesota Statutes, section 18B.055.111.20ARTICLE 10111.21ECONOMIC DEVELOPMENT AND COMMERCE

111.22Section 1.  SUMMARY OF APPROPRIATIONS.

111.23The amounts shown in this section summarize direct appropriations, by fund, made 111.24in this article.

111.2520142015Total111.26General$(350,000)$17,192,000$16,842,000111.27Workforce Development-0-2,392,0002,392,000111.28Total$(350,000)$19,584,000$19,234,000

111.29Sec. 2. APPROPRIATIONS.

111.30The sums shown in the columns marked "Appropriations" are added to or, if shown 111.31in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, to the 112.1agencies and for the purposes specified in this article. The appropriations are from the 112.2general fund, or another named fund, and are available for the fiscal years indicated for 112.3each purpose. The figures "2014" and "2015" used in this article mean that the addition to 112.4the appropriation listed under them is available for the fiscal year ending June 30, 2014, or 112.5June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June 112.630, 2014, are effective the day following final enactment.

112.7APPROPRIATIONS112.8Available for the Year112.9Ending June 30112.1020142015

112.11112.12Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

112.13Subdivision 1.Total Appropriation$-0-$16,259,000

112.14Appropriations by Fund112.15General-0-13,867,000112.16112.17Workforce Development-0-2,392,000

112.18The amounts that may be spent for each 112.19purpose are specified in the following 112.20subdivisions.

112.21112.22Subd. 2.Business and Community Development-0-12,950,000

112.23$2,400,000 in 2015 is for grants to the six 112.24Minnesota regional initiative foundations for 112.25business revolving loans or other lending 112.26programs. This is a onetime appropriation 112.27and is available until expended.112.28$4,500,000 in 2015 is for the greater 112.29Minnesota business development public 112.30infrastructure grant program under Minnesota 112.31Statutes, section 116J.431, for grants to 112.32design, construct, prepare, and improve 112.33infrastructure for economic development 112.34for the cities of Thief River Falls, Eveleth, 112.35Alexandria, Virginia, and Hibbing. This is a 113.1onetime appropriation and is available until 113.2expended.113.3$450,000 in 2015 is for grants to small 113.4business development centers under 113.5Minnesota Statutes, section 116J.68. This is 113.6a onetime appropriation and is available until 113.7expended.113.8$450,000 in 2015 is for a grant to the 113.9neighborhood development center for 113.10the small business incubators program. 113.11Of this amount, $200,000 is for capital 113.12improvements to existing small businesses; 113.13$150,000 is for technical assistance to 113.14business entities operating within a small 113.15business incubator; and $100,000 is for the 113.16creation and operation of a small business 113.17incubator revolving loan fund. This is a 113.18onetime appropriation and is available until 113.19expended.113.20$150,000 in 2015 is for a grant to the city 113.21of Proctor to design and construct a sand 113.22and salt storage facility to prevent runoff 113.23into surface water. This appropriation is not 113.24available until the commissioner determines 113.25that at least an equal amount is committed to 113.26the project from nonstate sources.113.27$5,000,000 in 2015 is for the Minnesota 113.28minerals 21st century fund under Minnesota 113.29Statutes, section 116J.423. This is a onetime 113.30appropriation.

113.31Subd. 3.Workforce Development-0-1,200,000

113.32$350,000 in 2015 is from the workforce 113.33development fund for a grant to the Northwest 113.34Indian Opportunities Industrialization 113.35Center and may be used for a green jobs 114.1deconstruction pilot program. This is a 114.2onetime appropriation and is available until 114.3expended.114.4$250,000 in 2015 is from the workforce 114.5development fund for a grant to the Northeast 114.6Minnesota Office of Job Training. This is a 114.7onetime appropriation and is available until 114.8expended.114.9$600,000 in 2015 is from the workforce 114.10development fund for a grant to the Twin 114.11Cities RISE! to provide job training. This is 114.12a onetime appropriation and is available until 114.13expended.

114.14Subd. 4.General Support Services-0-500,000

114.15$500,000 in 2015 is for establishing 114.16and operating the interagency Olmstead 114.17Implementation Office. The base 114.18appropriation for the interagency office in 114.19fiscal year 2016 and later is $1,000,000 each 114.20year.

114.21Subd. 5.Vocational Rehabilitation-0-1,609,000

114.22Appropriations by Fund114.23General-0-417,000114.24114.25Workforce Development-0-1,192,000

114.26$417,000 in 2015 from the general fund 114.27and $500,000 in 2015 from the workforce 114.28development fund are for rate increases to 114.29providers of extended employment services 114.30for persons with severe disabilities under 114.31Minnesota Statutes, section 268A.15. This 114.32is a onetime appropriation and is available 114.33until expended.114.34$692,000 in 2015 from the workforce 114.35development fund is for grants to the eight 115.1Minnesota Centers for Independent Living 115.2for employment and job training support 115.3services. This is a onetime appropriation and 115.4is available until expended.

115.5Sec. 4. HOUSING FINANCE AGENCY$-0-$ 3,100,000

115.6$3,100,000 in 2015 is for the economic 115.7development and housing challenge program 115.8under Minnesota Statutes, section 462A.33, 115.9for targeted housing for rural comprehensive 115.10or technical colleges that offer natural 115.11resources or aviation maintenance programs 115.12and are located in communities or regions 115.13with low housing vacancy rates. This is a 115.14onetime appropriation and is available until 115.15expended.

115.16115.17Sec. 5. BUREAU OF MEDIATION SERVICES$-0-$125,000

115.18$125,000 in 2015 is for the Public 115.19Employment Relations Board.

115.20Sec. 6. EXPLORE MINNESOTA TOURISM$-0-$100,000

115.21$100,000 in 2015 is for a grant to the Mille 115.22Lacs Tourism Council to enhance marketing 115.23activities related to tourism promotion in 115.24the Mille Lacs Lake area. This is a onetime 115.25appropriation.

115.26Sec. 7. DEPARTMENT OF COMMERCE$(350,000)$-0-

115.27$350,000 in 2014 is a onetime reduction to 115.28the appropriation for the gold bullion dealer 115.29registration program.115.30    Sec. 8. TRANSFER.116.1By June 30, 2015, the commissioner of management and budget shall transfer 116.2$9,000,000 in assets of the workers' compensation assigned risk plan created under 116.3Minnesota Statutes, section 79.252, to the general fund.116.4    Sec. 9. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

116.5116.6Subd. 2.Business and Community Development53,642,00045,407,000

116.7Appropriations by Fund116.8General52,942,00044,707,000116.9Remediation700,000700,000

116.10(a)(1) $15,000,000 each year is for 116.11the Minnesota investment fund under 116.12Minnesota Statutes, section 
         116J.8731. This 116.13appropriation is available until spent.116.14(2) Of the amount available under clause 116.15(1), up to $3,000,000 in fiscal year 2014 116.16is for a loan to facilitate initial investment 116.17in the purchase and operation of a 116.18biopharmaceutical manufacturing facility. 116.19This loan is not subject to the loan limitations 116.20under Minnesota Statutes, section 
         116J.8731, 116.21and shall be forgiven by the commissioner 116.22of employment and economic development 116.23upon verification of meeting performance 116.24goals. Purchases related to and for the 116.25purposes of this loan award must be made 116.26between January 1, 2013, and June 30, 2015. 116.27The amount under this clause is available 116.28until expended.116.29(3) Of the amount available under clause (1), 116.30up to $2,000,000 is available for subsequent 116.31investment in the biopharmaceutical facility 116.32project in clause (2). The amount under this 116.33clause is available until expended. Loan 116.34thresholds under clause (2) must be achieved 116.35and maintained to receive funding. Loans 117.1are not subject to the loan limitations under 117.2Minnesota Statutes, section 
         116J.8731, and 117.3shall be forgiven by the commissioner of 117.4employment and economic development 117.5upon verification of meeting performance 117.6goals. Purchases related to and for the 117.7purposes of loan awards must be made during 117.8the biennium the loan was received.117.9(4) Notwithstanding any law to the contrary, 117.10the biopharmaceutical manufacturing facility 117.11in this paragraph shall be deemed eligible 117.12for the Minnesota job creation fund under 117.13Minnesota Statutes, section 
         116J.8748, 117.14by having at least $25,000,000 in capital 117.15investment and 190 retained employees.117.16(5) For purposes of clauses (1) to (4), 117.17"biopharmaceutical" and "biologics" are 117.18interchangeable and mean medical drugs 117.19or medicinal preparations produced using 117.20technology that uses biological systems, 117.21living organisms, or derivatives of living 117.22organisms, to make or modify products or 117.23processes for specific use. The medical drugs 117.24or medicinal preparations include but are not 117.25limited to proteins, antibodies, nucleic acids, 117.26and vaccines.117.27(b) $12,000,000 each year is for the 117.28Minnesota job creation fund under Minnesota 117.29Statutes, section 
         116J.8748. Of this amount, 117.30the commissioner of employment and 117.31economic development may use up to three 117.32percent for administrative expenses. This 117.33appropriation is available until spent. The 117.34base funding for this program shall be 118.1$12,500,000 each year in the fiscal year 118.22016-2017 biennium.118.3(c) $1,272,000 each year is from the 118.4general fund for contaminated site cleanup 118.5and development grants under Minnesota 118.6Statutes, sections 
         116J.551 to 
         116J.558. This 118.7appropriation is available until expended.118.8(d) $700,000 each year is from the 118.9remediation fund for contaminated site 118.10cleanup and development grants under 118.11Minnesota Statutes, sections 
         116J.551 to 118.12116J.558
         . This appropriation is available 118.13until expended.118.14(e) $1,425,000 the first year and $1,425,000 118.15the second year are from the general fund for 118.16the business development competitive grant 118.17program. Of this amount, up to five percent 118.18is for administration and monitoring of the 118.19business development competitive grant 118.20program. All grant awards shall be for two 118.21consecutive years. Grants shall be awarded 118.22in the first year.118.23(f) $4,195,000 each year is from the general 118.24fund for the Minnesota job skills partnership 118.25program under Minnesota Statutes, sections 118.26116L.01
          to 
         116L.17. If the appropriation for 118.27either year is insufficient, the appropriation 118.28for the other year is available. This 118.29appropriation is available until spent.118.30(g) $6,000,000 the first year is from the 118.31general fund for the redevelopment program 118.32under Minnesota Statutes, section 
         116J.571. 118.33This is a onetime appropriation and is 118.34available until spent.119.1(h) $12,000 each year is from the general 119.2fund for a grant to the Upper Minnesota Film 119.3Office.119.4(i) $325,000 each year is from the general 119.5fund for the Minnesota Film and TV Board. 119.6The appropriation in each year is available 119.7only upon receipt by the board of $1 in 119.8matching contributions of money or in-kind 119.9contributions from nonstate sources for every 119.10$3 provided by this appropriation, except that 119.11each year up to $50,000 is available on July 119.121 even if the required matching contribution 119.13has not been received by that date.119.14(j) $100,000 each year is for a grant to the 119.15Northern Lights International Music Festival.119.16(k) $5,000,000 each year is from the general 119.17fund for a grant to the Minnesota Film 119.18and TV Board for the film production jobs 119.19program under Minnesota Statutes, section 119.20116U.26
         . This appropriation is available 119.21until expended. The base funding for this 119.22program shall be $1,500,000 each year in the 119.23fiscal year 2016-2017 biennium.119.24(l) $375,000 each year is from the general 119.25fund for a grant to Enterprise Minnesota, Inc., 119.26for the small business growth acceleration 119.27program under Minnesota Statutes, section 119.28116O.115
         . This is a onetime appropriation.119.29(m) $160,000 each year is from the general 119.30fund for a grant to develop and implement 119.31a southern and southwestern Minnesota 119.32initiative foundation collaborative pilot 119.33project. Funds available under this paragraph 119.34must be used to support and develop 119.35entrepreneurs in diverse populations in 120.1southern and southwestern Minnesota. This 120.2is a onetime appropriation and is available 120.3until expended. 120.4(n) $100,000 each year is from the general 120.5fund for the Center for Rural Policy 120.6and Development. This is a onetime 120.7appropriation.120.8(o) $250,000 each year is from the general 120.9fund for the Broadband Development Office.120.10(p) $250,000 the first year is from the 120.11general fund for a onetime grant to the St. 120.12Paul Planning and Economic Development 120.13Department for neighborhood stabilization 120.14use in NSP3.120.15(q) $1,235,000 the first year is from the 120.16general fund for a onetime grant to a city 120.17of the second class that is designated as an 120.18economically depressed area by the United 120.19States Department of Commerce. The 120.20appropriation is for economic development, 120.21redevelopment, and job creation programs 120.22and projects. This appropriation is available 120.23until expended.120.24(r) $875,000 each year is from the general 120.25fund for the Host Community Economic 120.26Development Program established in 120.27Minnesota Statutes, section 
         116J.548.120.28(s) $750,000 the first year is from the general 120.29fund for a onetime grant to the city of Morris 120.30for loans or grants to agricultural processing 120.31facilities for energy efficiency improvements. 120.32Funds available under this section shall be 120.33used to increase conservation and promote 120.34energy efficiency through retrofitting existing 120.35systems and installing new systems to 121.1recover waste heat from industrial processes 121.2and reuse energy. This appropriation is not 121.3available until the commissioner determines 121.4that at least $1,250,000 a match of $750,000121.5 is committed to the project from nonpublic 121.6sources. This appropriation is available until 121.7expended.121.8EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.121.9    Sec. 10. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

121.10Subd. 6.Vocational Rehabilitation27,691,00027,691,000

121.11Appropriations by Fund121.12General20,861,00020,861,000121.13121.14Workforce 
                  		Development6,830,0006,830,000

121.15(a) $10,800,000 each year is from the general 121.16fund for the state's vocational rehabilitation 121.17program under Minnesota Statutes, chapter 121.18268A.121.19(b) $2,261,000 each year is from the general 121.20fund for grants to centers for independent 121.21living under Minnesota Statutes, section 121.22268A.11
         .121.23(c) $5,745,000 each year from the general 121.24fund and $6,830,000 each year from the 121.25workforce development fund is for extended 121.26employment services for persons with 121.27severe disabilities under Minnesota Statutes, 121.28section 
         268A.15. The allocation of extended 121.29employment funds to Courage Center from 121.30July 1, 2012 to June 30, 2013 must be 121.31contracted to Allina Health systems from 121.32July 1, 2013 to June 30, 2014 2015 to provide 121.33extended employment services in accordance 122.1with Minnesota Rules, parts 3300.2005 to 122.23300.2055.122.3(d) $2,055,000 each year is from the general 122.4fund for grants to programs that provide 122.5employment support services to persons with 122.6mental illness under Minnesota Statutes, 122.7sections 
         268A.13 and 
         268A.14. The base 122.8appropriation for this program is $1,555,000 122.9each year in the fiscal year 2016-2017 122.10biennium.122.11    Sec. 11. ALTERNATIVE ENERGY PROJECTS.122.12The amounts appropriated under Laws 2009, chapter 78, article 1, section 3, 122.13subdivision 2, as amended, may be used for grants or loans to manufacturers of bio-based 122.14products.122.15    Sec. 12. MINNESOTA MINERALS 21ST CENTURY FUND TRANSFER.122.16(a) If, on the basis of a November forecast of general fund revenues and 122.17expenditures, the commissioner of management and budget determines that there will be 122.18a positive unrestricted general fund balance at the close of the biennium and that the 122.19provisions of Minnesota Statutes, section 16A.152, subdivision 1b, paragraph (b), and 122.20subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer 122.21from the general fund to the Minnesota minerals 21st century fund under Minnesota 122.22Statutes, section 116J.423, an amount not to exceed 20 percent of the positive unrestricted 122.23general fund balance determined in the forecast. The total amount authorized under this 122.24section, for all transfers, must not exceed $19,100,000.122.25(b) This section is repealed the day following the transfer in which the total amount 122.26transferred under this section to the Minnesota minerals 21st century fund is $19,100,000.122.27EFFECTIVE DATE.This section is effective for November forecasts issued 122.28following final enactment.122.29ARTICLE 11122.30ECONOMIC DEVELOPMENT AND COMMERCE123.1 FISCAL IMPLEMENTATION PROVISIONS123.2    Section 1. Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to 123.3read:123.4    Subd. 5. Grant limits. A Minnesota investment fund grant may not be approved 123.5for an amount in excess of $1,000,000. This limit covers all money paid to complete the 123.6same project, whether paid to one or more grant recipients and whether paid in one or 123.7more fiscal years. A local community or recognized Indian tribal government may retain 123.820 percent, but not more than $100,000The portion of a Minnesota investment fund 123.9grant that exceeds $100,000 must be repaid to the state when it is repaid to the local 123.10community or recognized Indian tribal government by the person or entity to which it 123.11was loaned by the local community or Indian tribal government. Money repaid to the 123.12state must be credited to a Minnesota investment revolving loan account in the state 123.13treasury. Funds in the account are appropriated to the commissioner and must be used 123.14in the same manner as are funds appropriated to the Minnesota investment fund. Funds 123.15repaid to the state through existing Minnesota investment fund agreements must be 123.16credited to the Minnesota investment revolving loan account effective July 1, 2005. A 123.17grant or loan may not be made to a person or entity for the operation or expansion of a 123.18casino or a store which is used solely or principally for retail sales. Persons or entities 123.19receiving grants or loans must pay each employee total compensation, including benefits 123.20not mandated by law, that on an annualized basis is equal to at least 110 percent of the 123.21federal poverty level for a family of four.123.22    Sec. 2. Minnesota Statutes 2012, section 216B.16, is amended by adding a subdivision 123.23to read:123.24    Subd. 6e.Revenue allocation among customer classes.(a) This subdivision 123.25applies only to investor-owned electric utilities that have at least 50,000 retail electric 123.26customers, but no more than 200,000 retail electric customers.123.27(b) For all rate change notification filings made prior to January 1, 2019, cost of 123.28service shall be the primary consideration in the commission's determination of revenue 123.29allocation among customer classes. The commission's discretion to deviate from cost 123.30of service and consider factors other than cost of service when it determines revenue 123.31allocation among customer classes is limited to the following parameters:123.32(1) no deviations of more than four percent for all filings made after January 1, 123.332015; and124.1(2) no deviations of more than two percent for all filings made after January 1, 2017. 124.2Revenue allocation among customer classes that deviates from the cost of service must be 124.3supported by a preponderance of the evidence.124.4(c) For all filings made on or after January 1, 2019, cost of service shall be the only 124.5consideration in the commission's determination of revenue allocation among customer 124.6classes.124.7(d) At least 60 days prior to its next general rate proceeding, a utility subject to this 124.8subdivision shall meet with interested stakeholders to explore the possibility of expanding 124.9or increasing access to electric affordability programs for low-income customers.124.10(e) Upon the filing of a general rate case by a utility subject to this subdivision in 124.11which the filing utility seeks to impose rates based on cost of service, the filing utility 124.12must deposit $10,000 into an account devoted to funding a program approved by the 124.13commission under section 216B.16, subdivision 15. The funds shall be used to expand the 124.14outreach of the commission-approved affordability program.124.15EFFECTIVE DATE.This section is effective the day following final enactment 124.16and applies to a general rate change filed on or after that date.124.17    Sec. 3. Minnesota Statutes 2012, section 216B.1611, is amended by adding a 124.18subdivision to read:124.19    Subd. 3a.Project information.(a) Beginning July 1, 2014, each electric utility 124.20shall request an applicant for interconnection of distributed renewable energy generation 124.21to provide the following information, in a format prescribed by the commissioner: 124.22(1) the nameplate capacity of the facility in the application;124.23(2) the total preincentive installed cost of the generation system at the facility;124.24(3) the energy source of the facility; and124.25(4) the zip code in which the facility is to be located.124.26(b) The commissioner shall develop or identify a system to collect and process 124.27the information under this subdivision from each utility, and make nonproject-specific 124.28data available to the public on a periodic basis as determined by the commissioner, and 124.29in a format determined by the commissioner. The commissioner may solicit proposals 124.30from outside parties to develop the system.124.31(c) Electric utilities collecting and transferring data under this subdivision are not 124.32responsible for the accuracy, completeness, or quality of the information under this 124.33subdivision.124.34(d) Any information under this subdivision is nonpublic, until it is made public by 124.35the commissioner as provided under paragraph (b) of this subdivision.125.1EFFECTIVE DATE.This section is effective the day following final enactment.125.2    Sec. 4. Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:125.3    Subd. 1d. Technical assistance.(a) The commissioner shall evaluate energy 125.4conservation improvement programs on the basis of cost-effectiveness and the reliability 125.5of the technologies employed. The commissioner shall, by order, establish, maintain, and 125.6update energy-savings assumptions that must be used when filing energy conservation 125.7improvement programs. The commissioner shall establish an inventory of the most 125.8effective energy conservation programs, techniques, and technologies, and encourage all 125.9Minnesota utilities to implement them, where appropriate, in their service territories. 125.10The commissioner shall describe these programs in sufficient detail to provide a utility 125.11reasonable guidance concerning implementation. The commissioner shall prioritize the 125.12opportunities in order of potential energy savings and in order of cost-effectiveness. The 125.13commissioner may contract with a third party to carry out any of the commissioner's duties 125.14under this subdivision, and to obtain technical assistance to evaluate the effectiveness of 125.15any conservation improvement program. The commissioner may assess up to $800,000 125.16annually until June 30, 2009, and $450,000 $850,000 annually thereafter for the purposes 125.17of this subdivision. The assessments must be deposited in the state treasury and credited 125.18to the energy and conservation account created under subdivision 2a. An assessment 125.19made under this subdivision is not subject to the cap on assessments provided by section 125.20216B.62
         , or any other law.125.21    (b) Of the assessment authorized under paragraph (a), the commissioner may expend 125.22up to $400,000 annually for the purpose of developing, operating, maintaining, and 125.23providing technical support for a uniform electronic data reporting and tracking system 125.24available to all utilities subject to this section, in order to enable accurate measurement of 125.25the cost and energy savings of the energy conservation improvements required by this 125.26section. This paragraph expires June 30, 2017, and may be used for no more than three 125.27annual assessments occurring prior to that date.125.28EFFECTIVE DATE.This section is effective the day following final enactment 125.29and applies to assessments made after June 30, 2014.125.30    Sec. 5. Minnesota Statutes 2012, section 216C.145, is amended to read:125.31216C.145 MICROENERGYCOMMUNITY ENERGY EFFICIENCY AND 125.32RENEWABLE ENERGY LOAN PROGRAM.126.1    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this 126.2section.126.3    (b) "Small-scale Renewable Community energy efficiency and renewable energy" 126.4projects include solar thermal water heating, solar electric or photovoltaic equipment, 126.5small wind energy conversion systems of less than 250 kW, anaerobic digester gas 126.6systems, microhydro systems up to 100 kW, and heating and cooling applications using 126.7geothermal energysolar thermal or ground source technology, and industrial, commercial, 126.8or public energy efficiency projects.126.9    (c) "Unit of local government" means any home rule charter or statutory city, county, 126.10commission, district, authority, or other political subdivision or instrumentality of this 126.11state, including a sanitary district, park district, the Metropolitan Council, a port authority, 126.12an economic development authority, or a housing and redevelopment authority.126.13    Subd. 2. Program established. The commissioner of commerce shall develop, 126.14implement, and administer a microenergycommunity energy efficiency and renewable 126.15energy loan program under this section.126.16    Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term 126.17loans to units of local government to (1) finance community-owned or publicly owned 126.18small scale renewable energy systems or to cost-effective energy efficiency improvements 126.19to public buildings, (2) provide loans or other aids to small businesses to install small-scale126.20 renewable energy systems, or (3) provide loans or other aids to industrial or commercial 126.21businesses, including health care facilities, for cost-effective energy efficiency projects or 126.22to install renewable energy systems.126.23    (b) The commissioner may participate in loans made by the Housing Finance 126.24Agency to residential property owners, private developers, nonprofit organizations, 126.25or units of local government under sections 
         462A.05, subdivisions 14 and 18; and 126.26462A.33 
         for the construction, purchase, or rehabilitation of residential housing to facilitate 126.27the installation of small-scale renewable energy systems in residential housing and 126.28cost-effective energy conservation improvements identified in an energy efficiency audit. 126.29The commissioner shall assist the Housing Finance Agency in assessing the technical 126.30qualifications of loan applicants.126.31(c) A local unit of government shall not require an industrial customer to release 126.32its energy usage data as part of a community energy efficiency project or loan under this 126.33section. Industrial energy usage data may only be released upon the express, written 126.34consent of the industrial customer.126.35    Subd. 4. Technical standards. The commissioner shall determine technical 126.36standards for small-scale renewable energy systemscommunity energy efficiency and 127.1renewable energy projects to qualify for loans under this section. The commissioner shall 127.2not condition qualification of a community energy efficiency project for a loan under this 127.3section on the production of industrial energy usage data or aggregation of energy usage 127.4data that includes an industrial customer.127.5    Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in 127.6the State Register a request for proposals from units of local government for a loan under 127.7this section. Within 45 days after the deadline for receipt of proposals, the commissioner 127.8shall select proposals based on the following criteria:127.9    (1) the reliability and cost-effectiveness of the renewable or energy efficiency 127.10technology to be installed under the proposal;127.11    (2) the extent to which the proposal effectively integrates with the conservation and 127.12energy efficiency programs or goals of the energy utilities serving the proposer;127.13    (3) the total life cycle energy use and greenhouse gas emissions reductions per 127.14dollar of installed cost;127.15    (4) the diversity of the renewable energy or energy efficiency technology installed 127.16under the proposal;127.17    (5) the geographic distribution of projects throughout the state;127.18    (6) the percentage of total project cost requested;127.19    (7) the proposed security for payback of the loan; and127.20    (8) other criteria the commissioner may determine to be necessary and appropriate.127.21    Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest 127.22rate required to recover principal and interest plus the costs of issuing the loan, and must 127.23be for a minimum of 15 years, unless the commissioner determines that a shorter loan 127.24period of no less than tenfive years is necessary and feasible.127.25    Subd. 7. Account. A microenergycommunity energy efficiency and renewable 127.26energy loan account is established in the state treasury. Money in the account consists of 127.27the proceeds of revenue bonds issued under section 
         216C.146, interest and other earnings 127.28on money in the account, money received in repayment of loans from the account, 127.29legislative appropriations, and money from any other source credited to the account.127.30    Subd. 8. Appropriation. Money in the account is appropriated to the commissioner 127.31of commerce to make microenergycommunity energy efficiency and renewable energy127.32 loans under this section and to the commissioner of management and budget to pay debt 127.33service and other costs under section 
         216C.146. Payment of debt service costs and funding 127.34reserves take priority over use of money in the account for any other purpose.128.1    Sec. 6. Minnesota Statutes 2012, section 216C.146, is amended to read:128.2216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND 128.3RENEWABLE ENERGY LOAN REVENUE BONDS.128.4    Subdivision 1. Bonding authority; definition. (a) The commissioner of 128.5management and budget, if requested by the commissioner of commerce, shall sell and 128.6issue state revenue bonds for the following purposes:128.7    (1) to make microenergy community energy efficiency and renewable energy loans 128.8under section 
         216C.145;128.9    (2) to pay the costs of issuance, debt service, and bond insurance or other credit 128.10enhancements, and to fund reserves; and128.11    (3) to refund bonds issued under this section.128.12    (b) The aggregate principal amount of bonds for the purposes of paragraph (a), 128.13clause (1), that may be outstanding at any time may not exceed $100,000,000, of which 128.14up to $20,000,000 shall be reserved for business and public entity projects; the principal 128.15amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and 128.16(3), is not limited.128.17    (c) For the purpose of this section, "commissioner" means the commissioner of 128.18management and budget.128.19    Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms 128.20and conditions the commissioner determines to be in the best interests of the state. The 128.21bonds may be sold at public or private sale. The commissioner may enter into any 128.22agreements or pledges the commissioner determines necessary or useful to sell the bonds 128.23that are not inconsistent with section 
         216C.145. Sections 
         16A.672 to 
         16A.675 apply to 128.24the bonds. The proceeds of the bonds issued under this section must be credited to the 128.25microenergy community energy efficiency and renewable energy loan account created 128.26under section 
         216C.145.128.27    Subd. 3. Revenue sources. The debt service on the bonds is payable only from the 128.28following sources:128.29    (1) revenue credited to the microenergy community energy efficiency and renewable 128.30energy loan account from the sources identified in section 
         216C.145 or from any other 128.31source; and128.32    (2) other revenues pledged to the payment of the bonds, including reserves 128.33established by a local government unit.128.34    Subd. 4. Refunding bonds. The commissioner may issue bonds to refund 128.35outstanding bonds issued under subdivision 1, including the payment of any redemption 128.36premiums on the bonds and any interest accrued or to accrue to the first redemption date 129.1after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the 129.2discretion of the commissioner, be applied to the purchases or payment at maturity of the 129.3bonds to be refunded, or the redemption of the outstanding bonds on the first redemption 129.4date after delivery of the refunding bonds and may, until so used, be placed in escrow to 129.5be applied to the purchase, retirement, or redemption. Refunding bonds issued under this 129.6subdivision must be issued and secured in the manner provided by the commissioner.129.7    Subd. 5. Not a general or moral obligation. Bonds issued under this section are 129.8not public debt, and the full faith, credit, and taxing powers of the state are not pledged 129.9for their payment. The bonds may not be paid, directly in whole or in part from a tax of 129.10statewide application on any class of property, income, transaction, or privilege. Payment 129.11of the bonds is limited to the revenues explicitly authorized to be pledged under this 129.12section. The state neither makes nor has a moral obligation to pay the bonds if the pledged 129.13revenues and other legal security for them is insufficient.129.14    Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for 129.15bondholders. The trustee has the powers and authority vested in it by the commissioner 129.16under the bond and trust indentures.129.17    Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from 129.18the time the pledge is made. The money or property pledged and later received by the 129.19commissioner is immediately subject to the lien of the pledge without any physical 129.20delivery of the property or money or further act, and the lien of the pledge is valid and 129.21binding as against all parties having claims of any kind in tort, contract, or otherwise 129.22against the commissioner, whether or not those parties have notice of the lien or pledge. 129.23Neither the order nor any other instrument by which a pledge is created need be recorded.129.24    Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to 129.25agreements with bondholders that may then exist, may, out of any money available for the 129.26purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are 129.27then redeemable, the redemption price then applicable plus accrued interest to the next 129.28interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price 129.29applicable on the first date after the purchase upon which the bonds become subject to 129.30redemption plus accrued interest to that date.129.31    Subd. 9. State pledge against impairment of contracts. The state pledges and 129.32agrees with the holders of any bonds that the state will not limit or alter the rights vested in 129.33the commissioner to fulfill the terms of any agreements made with the bondholders, or 129.34in any way impair the rights and remedies of the holders until the bonds, together with 129.35interest on them, with interest on any unpaid installments of interest, and all costs and 129.36expenses in connection with any action or proceeding by or on behalf of the bondholders, 130.1are fully met and discharged. The commissioner may include this pledge and agreement 130.2of the state in any agreement with the holders of bonds issued under this section.130.3    Sec. 7. Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:130.4    Subd. 14. Affirmative business enterprise employment. "Affirmative business 130.5enterprise employment" means employment which provides paid work on the premises of 130.6an affirmative business enterprise as certified by the commissioner.130.7    Affirmative business enterprise employment is considered communitysupported 130.8employment for purposes of funding under Minnesota Rules, parts 3300.1000 to 130.93300.2055, provided that the wages for individuals reported must be at or above customary 130.10wages for the same employer. The employer must also provide one benefit package that is 130.11available to all employees at the specific site certified as an affirmative business enterprise.130.12    Sec. 8. [268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE 130.13DEAF, DEAFBLIND, OR HARD-OF-HEARING.130.14    Subdivision 1.Deaf, deafblind, and hard-of-hearing grants.(a) The 130.15commissioner shall develop and implement a specialized statewide grant program to 130.16provide long-term supported employment services for persons who are deaf, deafblind, 130.17and hard-of-hearing. Programs and services eligible for grants under this section must:130.18(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and 130.19advancing in employment;130.20(2) provide services with staff who must possess fluency in all forms of manual 130.21communication, including American Sign Language; knowledge of hearing loss and 130.22psychosocial implications; sensitivity to cultural issues; familiarity with community 130.23services and communication strategies for people who are hard-of-hearing and do not sign; 130.24and awareness of adaptive technology options;130.25(3) provide specialized employment support services for individuals who have 130.26a combined hearing and vision loss that address the individual's unique ongoing visual 130.27and auditory communication needs; and130.28(4) involve clients in the planning, development, oversight, and delivery of 130.29long-term ongoing support services.130.30(b) Priority for funding shall be given to organizations with experience in developing  130.31innovative employment support services for persons who are deaf, deafblind, and  130.32hard-of-hearing. Each applicant for funds under this section shall submit an evaluation  130.33protocol as part of the grant application.131.1    Subd. 2.Employment services for transition-aged youth who are deaf, 131.2deafblind, and hard-of-hearing.(a) The commissioner shall develop statewide or 131.3regional grant programs to provide school-based communication, access, and employment 131.4services for youth who are deaf, deafblind, and hard-of-hearing. Services must include 131.5staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise 131.6in serving transition-aged youth. 131.7(b) Priority for funding shall be given to organizations with experience in providing  131.8innovative employment support services and readiness for postsecondary training for 131.9transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for 131.10funds under this section shall submit an evaluation protocol as part of the grant application.131.11    Subd. 3.Administration.Up to five percent of the biennial appropriation for the 131.12purpose of this section is available to the commissioner for administration of the program.131.13EFFECTIVE DATE.This section is effective July 1, 2015.131.14    Sec. 9. Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:131.15    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of 131.16merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 131.17provided in paragraph (c), must be allocated to the city or town in the county in which 131.18the lands from which taconite was mined or quarried were located or within which the 131.19concentrate was produced. If the mining, quarrying, and concentration, or different steps 131.20in either thereof are carried on in more than one taxing district, the commissioner shall 131.21apportion equitably the proceeds of the part of the tax going to cities and towns among 131.22such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to 131.23the operation of mining or quarrying the taconite, and the remainder to the concentrating 131.24plant and to the processes of concentration, and with respect to each thereof giving due 131.25consideration to the relative extent of such operations performed in each such taxing 131.26district. The commissioner's order making such apportionment shall be subject to review 131.27by the Tax Court at the instance of any of the interested taxing districts, in the same 131.28manner as other orders of the commissioner.131.29(b) Four cents per taxable ton shall be allocated to cities and organized townships 131.30affected by mining because their boundaries are within three miles of a taconite mine pit 131.31that has been actively mined in at least one of the prior three years. If a city or town is 131.32located near more than one mine meeting these criteria, the city or town is eligible to 131.33receive aid calculated from only the mine producing the largest taxable tonnage. When 131.34more than one municipality qualifies for aid based on one company's production, the aid 131.35must be apportioned among the municipalities in proportion to their populations. Of The 132.1amounts distributed under this paragraph to each municipality, one-half must be used for 132.2infrastructure improvement projects, and one-half must be used for projects in which two 132.3or more municipalities cooperate. Each municipality that receives a distribution under this 132.4paragraph must report annually to the Iron Range Resources and Rehabilitation Board and 132.5the commissioner of Iron Range resources and rehabilitation on the projects involving 132.6cooperation with other municipalities.132.7(c) The amount that would have been computed for the current year under Minnesota 132.8Statutes 2008, section 
         126C.21, subdivision 4, for a school district shall be distributed to 132.9the cities and townships within the school district in the proportion that their taxable net 132.10tax capacity within the school district bears to the taxable net tax capacity of the school 132.11district for property taxes payable in the year prior to distribution.132.12    Sec. 10. Laws 2013, chapter 143, article 11, section 10, is amended to read:132.13    Sec. 10. 2013 DISTRIBUTION ONLY.132.14For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of 132.15any excess of the balance remaining after distribution of amounts required under Minnesota 132.16Statutes, section 
         298.28, subdivision 6. The following amounts are allocated to St. Louis 132.17County acting as the fiscal agent for the recipients for the following specific purposes:132.18(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water 132.19supply system;132.20(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities 132.21required as a result of actions undertaken by United States Steel Corporation;132.22(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water 132.23supply system, payable upon agreement with ArcelorMittal to satisfy water permit 132.24conditions system to further the established collaborative efforts between the city of 132.25Biwabik, the city of Aurora, and surrounding communities;132.26(4) 2 cents per ton to the city of Tower for the Tower Marina;132.27(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer 132.28system to replace aging effluent lines and for parking lot repaving;132.29(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant 132.30improvements;132.31(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;132.32(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson 132.33Intermodal Transportation Center;132.34(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine 132.35hockey arena renovations;133.1(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center 133.2to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and 133.3Greenway Township;133.4(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;133.5(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;133.6(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary 133.7sewer extension;133.8(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;133.9(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;133.10(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park 133.11infrastructure, and a maintenance garage;133.12(17) 0.5 cents per ton to the city of Cook for a water line project;133.13(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street 133.14reconstruction and the city auditorium;133.15(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and 133.16water line replacements;133.17(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North 133.18infrastructure and Franklin Park improvement; and133.19(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development 133.20project.133.21EFFECTIVE DATE.This section is effective for the 2014 distribution, and all 133.22payments must be made separately and within ten days of the date of the August 2014 133.23payment.133.24    Sec. 11. 2014 DISTRIBUTION ONLY.133.25For the 2014 distribution, a special fund is established to receive 18.37 cents per ton of 133.26any excess of the balance remaining after distribution of amounts required under Minnesota 133.27Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 133.28County acting as the fiscal agent for the recipients for the following specific purposes:133.29(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;133.30(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation 133.31at the Reif Center;133.32(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements 133.33to accommodate business expansion in the city;133.34(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;134.1(5) 0.39 cents per ton to Balkan Township for a salt storage building and 134.2energy-efficient cold storage building;134.3(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city 134.4of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to 134.5secure a potable water source for the city, provided that the city of McKinley secures 134.6the remainder of the project costs from other sources, and expires three years following 134.7the date of distribution;134.8(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for 134.9township block grants to be distributed by the board;134.10(8) 0.5 cents per ton to the city of Marble for a water main and looping project;134.11(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;134.12(10) 0.65 cents per ton to the city of Babbitt for demolition of a public building;134.13(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;134.14(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;134.15(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;134.16(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;134.17(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall; and134.18(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater 134.19treatment project.134.20EFFECTIVE DATE.This section is effective for the 2014 distribution, and all 134.21payments must be made separately and within ten days of the date of the August 2014 134.22payment.134.23    Sec. 12. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM; 134.24EVALUATION.134.25The commissioner of commerce may utilize a stakeholder group to annually monitor 134.26the usability and product development of systems for electronic data reporting and 134.27tracking for the use of utilities under the conservation improvement plan program under 134.28Minnesota Statutes, section 216B.241. The initial group may be convened by November 134.291, 2014, and must, among others, include representatives from all sectors of the gas and 134.30electric utility industry and providers of energy conservation.134.31    Sec. 13. REALLOCATION OF BOND PAYMENTS.134.32In each year subsequent to the year in which the following appropriations terminate 134.33under their terms, an amount equal to the amount of the last year of the school bond 134.34payments from the 2012 production year, payable in 2013, is appropriated from the same 135.1sources listed in this section to the Iron Range school consolidation and cooperatively 135.2operated school account under Minnesota Statutes, section 298.28, subdivision 7a:135.3(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for 135.4bonds of Independent School District No. 166, Cook County;135.5(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 135.6bonds of Independent School District No. 696, Ely;135.7(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 135.8bonds of Independent School District No. 706, Virginia:135.9(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 135.10bonds of Independent School District No. 2154, Eveleth-Gilbert;135.11(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for 135.12bonds of Independent School District No. 712, Mountain Iron-Buhl; and135.13(6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of 135.14Independent School District No. 2711, Mesabi East.135.15EFFECTIVE DATE.This section is effective beginning with the distribution 135.16in 2015.135.17ARTICLE 12135.18EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION135.19    Section 1. Minnesota Statutes 2012, section 13.43, subdivision 16, is amended to read:135.20    Subd. 16. School district or charter school disclosure of violence or inappropriate 135.21sexual contact. The superintendent of a school district or the superintendent's designee, 135.22or a person having administrative control of a charter school, must release to a requesting 135.23school district or charter school private personnel data on a current or former employee 135.24related to acts of violence toward or sexual contact with a student, if:135.25(1) an investigation conducted by or on behalf of the school district or law 135.26enforcement affirmed the allegations in writing prior to release and the investigation 135.27resulted in the resignation of the subject of the data; or135.28(2) the employee resigned while a complaint or charge involving the allegations was 135.29pending and the allegations involved acts of sexual contact with a student.135.30Data that are released under this subdivision must not include data on the student.135.31    Sec. 2. Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8, is 135.32amended to read:136.1    Subd. 8. Development, evaluation, and peer coaching for continuing contract 136.2teachers. (a) To improve student learning and success, a school board and an exclusive 136.3representative of the teachers in the district, consistent with paragraph (b), may develop 136.4a teacher evaluation and peer review process for probationary and continuing contract 136.5teachers through joint agreement. If a school board and the exclusive representative of the 136.6teachers do not agree to an annual teacher evaluation and peer review process, then the 136.7school board and the exclusive representative of the teachers must implement the state 136.8teacher evaluation plan for evaluation and review under paragraph (c). The process must 136.9include having trained observers serve as peer coaches or having teachers participate in 136.10professional learning communities, consistent with paragraph (b).136.11    (b) To develop, improve, and support qualified teachers and effective teaching 136.12practices and improve student learning and success, the annual evaluation process for 136.13teachers:136.14    (1) must, for probationary teachers, provide for all evaluations required under 136.15subdivision 5;136.16    (2) must establish a three-year professional review cycle for each teacher that 136.17includes an individual growth and development plan, a peer review process, the 136.18opportunity to participate in a professional learning community under paragraph (a), and 136.19at least one summative evaluation performed by a qualified and trained evaluator such as a 136.20school administrator. For the years when a tenured teacher is not evaluated by a qualified 136.21and trained evaluator, the teacher must be evaluated by a peer review;136.22    (3) must be based on professional teaching standards established in rule;136.23    (4) must coordinate staff development activities under sections 
         122A.60 and 136.24122A.61
          with this evaluation process and teachers' evaluation outcomes;136.25    (5) may provide time during the school day and school year for peer coaching and 136.26teacher collaboration;136.27    (6) may include job-embedded learning opportunities such as professional learning 136.28communities;136.29    (7) may include mentoring and induction programs;136.30    (7) (8) must include an option for teachers to develop and present a portfolio 136.31demonstrating evidence of reflection and professional growth, consistent with section 136.32122A.18, subdivision 4
         , paragraph (b), and include teachers' own performance assessment 136.33based on student work samples and examples of teachers' work, which may include video 136.34among other activities for the summative evaluation;136.35    (8) (9) must use data from valid and reliable assessments aligned to state and local 136.36academic standards and must use state and local measures of student growth that may 137.1include value-added models or student learning goals to determine 35 percent of teacher 137.2evaluation results;137.3    (9) (10) must use longitudinal data on student engagement and connection, and 137.4other student outcome measures explicitly aligned with the elements of curriculum for 137.5which teachers are responsible;137.6    (10) (11) must require qualified and trained evaluators such as school administrators 137.7to perform summative evaluations and ensure school districts and charter schools provide 137.8for effective evaluator training specific to teacher development and evaluation;137.9    (11) (12) must give teachers not meeting professional teaching standards under 137.10clauses (3) through (10) (11) support to improve through a teacher improvement process 137.11that includes established goals and timelines; and137.12    (12) (13) must discipline a teacher for not making adequate progress in the teacher 137.13improvement process under clause (11) (12) that may include a last chance warning, 137.14termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 137.15other discipline a school administrator determines is appropriate.137.16    Data on individual teachers generated under this subdivision are personnel data 137.17under section 
         13.43. The observation and interview notes of peer coaches may only be 137.18disclosed to other school officials with the consent of the teacher being coached.137.19    (c) The department, in consultation with parents who may represent parent 137.20organizations and teacher and administrator representatives appointed by their respective 137.21organizations, representing the Board of Teaching, the Minnesota Association of School 137.22Administrators, the Minnesota School Boards Association, the Minnesota Elementary 137.23and Secondary Principals Associations, Education Minnesota, and representatives of 137.24the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 137.25Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 137.26in teacher evaluation, must create and publish a teacher evaluation process that complies 137.27with the requirements in paragraph (b) and applies to all teachers under this section and 137.28section 
         122A.41 for whom no agreement exists under paragraph (a) for an annual teacher 137.29evaluation and peer review process. The teacher evaluation process created under this 137.30subdivision does not create additional due process rights for probationary teachers under 137.31subdivision 5.137.32EFFECTIVE DATE.This section is effective for the 2014-2015 school year.137.33    Sec. 3. Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is 137.34amended to read:138.1    Subd. 5. Development, evaluation, and peer coaching for continuing contract 138.2teachers. (a) To improve student learning and success, a school board and an exclusive 138.3representative of the teachers in the district, consistent with paragraph (b), may develop an 138.4annual teacher evaluation and peer review process for probationary and nonprobationary 138.5teachers through joint agreement. If a school board and the exclusive representative of the 138.6teachers in the district do not agree to an annual teacher evaluation and peer review process, 138.7then the school board and the exclusive representative of the teachers must implement 138.8the state teacher evaluation plan for evaluation and review developed under paragraph 138.9(c). The process must include having trained observers serve as peer coaches or having 138.10teachers participate in professional learning communities, consistent with paragraph (b).138.11    (b) To develop, improve, and support qualified teachers and effective teaching 138.12practices and improve student learning and success, the annual evaluation process for 138.13teachers:138.14    (1) must, for probationary teachers, provide for all evaluations required under 138.15subdivision 2;138.16    (2) must establish a three-year professional review cycle for each teacher that 138.17includes an individual growth and development plan, a peer review process, the 138.18opportunity to participate in a professional learning community under paragraph (a), and 138.19at least one summative evaluation performed by a qualified and trained evaluator such 138.20as a school administrator;138.21    (3) must be based on professional teaching standards established in rule;138.22    (4) must coordinate staff development activities under sections 
         122A.60 and 138.23122A.61
          with this evaluation process and teachers' evaluation outcomes;138.24    (5) may provide time during the school day and school year for peer coaching and 138.25teacher collaboration;138.26    (6) may include job-embedded learning opportunities such as professional learning 138.27communities;138.28    (7) may include mentoring and induction programs;138.29    (7) (8) must include an option for teachers to develop and present a portfolio 138.30demonstrating evidence of reflection and professional growth, consistent with section 138.31122A.18, subdivision 4
         , paragraph (b), and include teachers' own performance assessment 138.32based on student work samples and examples of teachers' work, which may include video 138.33among other activities for the summative evaluation;138.34    (8) (9) must use data from valid and reliable assessments aligned to state and local 138.35academic standards and must use state and local measures of student growth that may 139.1include value-added models or student learning goals to determine 35 percent of teacher 139.2evaluation results;139.3    (9) (10) must use longitudinal data on student engagement and connection and 139.4other student outcome measures explicitly aligned with the elements of curriculum for 139.5which teachers are responsible;139.6    (10) (11) must require qualified and trained evaluators such as school administrators 139.7to perform summative evaluations and ensure school districts and charter schools provide 139.8for effective evaluator training specific to teacher development and evaluation;139.9    (11) (12) must give teachers not meeting professional teaching standards under 139.10clauses (3) through (10) (11) support to improve through a teacher improvement process 139.11that includes established goals and timelines; and139.12    (12) (13) must discipline a teacher for not making adequate progress in the teacher 139.13improvement process under clause (11) (12) that may include a last chance warning, 139.14termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 139.15other discipline a school administrator determines is appropriate.139.16    Data on individual teachers generated under this subdivision are personnel data 139.17under section 
         13.43. The observation and interview notes of peer coaches may only be 139.18disclosed to other school officials with the consent of the teacher being coached.139.19    (c) The department, in consultation with parents who may represent parent 139.20organizations and teacher and administrator representatives appointed by their respective 139.21organizations, representing the Board of Teaching, the Minnesota Association of School 139.22Administrators, the Minnesota School Boards Association, the Minnesota Elementary 139.23and Secondary Principals Associations, Education Minnesota, and representatives of 139.24the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 139.25Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 139.26in teacher evaluation, must create and publish a teacher evaluation process that complies 139.27with the requirements in paragraph (b) and applies to all teachers under this section and 139.28section 
         122A.40 for whom no agreement exists under paragraph (a) for an annual teacher 139.29evaluation and peer review process. The teacher evaluation process created under this 139.30subdivision does not create additional due process rights for probationary teachers under 139.31subdivision 2.139.32EFFECTIVE DATE.This section is effective for the 2014-2015 school year.139.33    Sec. 4. Minnesota Statutes 2012, section 122A.414, subdivision 2, is amended to read:139.34    Subd. 2. Alternative teacher professional pay system. (a) To participate in this 139.35program, a school district, intermediate school district, school site, or charter school must 140.1have an educational improvement plan under section 
         122A.413 and an alternative teacher 140.2professional pay system agreement under paragraph (b). A charter school participant also 140.3must comply with subdivision 2a.140.4    (b) The alternative teacher professional pay system agreement must:140.5    (1) describe how teachers can achieve career advancement and additional 140.6compensation;140.7    (2) describe how the school district, intermediate school district, school site, or 140.8charter school will provide teachers with career advancement options that allow teachers 140.9to retain primary roles in student instruction and facilitate site-focused professional 140.10development that helps other teachers improve their skills;140.11    (3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 140.12paid before implementing the pay system from being reduced as a result of participating 140.13in this system, and base at least 60 percent of any compensation increase on teacher 140.14performance using:140.15    (i) schoolwide student achievement gains under section 
         120B.35 or locally selected 140.16standardized assessment outcomes, or both;140.17    (ii) measures of student achievement growth that may include value-added models 140.18or student learning goals, consistent with section 122A.40, subdivision 8, clause (9), or 140.19122A.41, subdivision 5, clause (9); and140.20    (iii) an objective evaluation program that includes: under section 122A.40, 140.21subdivision 8, paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2)140.22    (A) individual teacher evaluations aligned with the educational improvement plan 140.23under section 122A.413 and the staff development plan under section 122A.60; and140.24    (B) objective evaluations using multiple criteria conducted by a locally selected and 140.25periodically trained evaluation team that understands teaching and learning;140.26    (4) provide integrated ongoing site-based professional development activities for 140.27participation in job-embedded learning opportunities such as professional learning 140.28communities to improve instructional skills and learning that are aligned with student needs 140.29under section 
         122A.413, consistent with the staff development plan under section 
         122A.60140.30and led during the school day by trained teacher leaders such as master or mentor teachers;140.31    (5) allow any teacher in a participating school district, intermediate school district, 140.32school site, or charter school that implements an alternative pay system to participate in 140.33that system without any quota or other limit; and140.34    (6) encourage collaboration rather than competition among teachers.141.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 and 141.2later. Paragraph (b), clause (3), is effective for agreements under this section approved 141.3after August 1, 2015.141.4    Sec. 5. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:141.5    Subdivision 1. Revenue amount. (a) A school district, intermediate school district, 141.6school site, or charter school that meets the conditions of section 
         122A.414 and submits an 141.7application approved by the commissioner is eligible for alternative teacher compensation 141.8revenue.141.9(b) For school district and intermediate school district applications, the commissioner 141.10must consider only those applications to participate that are submitted jointly by a 141.11district and the exclusive representative of the teachers. The application must contain an 141.12alternative teacher professional pay system agreement that:141.13(1) implements an alternative teacher professional pay system consistent with 141.14section 
         122A.414; and141.15(2) is negotiated and adopted according to the Public Employment Labor Relations 141.16Act under chapter 179A, except that notwithstanding section 
         179A.20, subdivision 3, a 141.17district may enter into a contract for a term of two or four years.141.18Alternative teacher compensation revenue for a qualifying school district or site in 141.19which the school board and the exclusive representative of the teachers agree to place 141.20teachers in the district or at the site on the alternative teacher professional pay system 141.21equals $260 times the number of pupils enrolled at the district or site on October 1 of 141.22the previous fiscal year. Alternative teacher compensation revenue for a qualifying 141.23intermediate school district must be calculated under section 126C.10, subdivision 34141.24 subdivision 4, paragraphs (a) and (b).141.25(c) For a newly combined or consolidated district, the revenue shall be computed 141.26using the sum of pupils enrolled on October 1 of the previous year in the districts entering 141.27into the combination or consolidation. The commissioner may adjust the revenue computed 141.28for a site using prior year data to reflect changes attributable to school closings, school 141.29openings, or grade level reconfigurations between the prior year and the current year.141.30(d) The revenue is available only to school districts, intermediate school districts, 141.31school sites, and charter schools that fully implement an alternative teacher professional 141.32pay system by October 1 of the current school year.141.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 141.34and later.142.1    Sec. 6. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:142.2    Subd. 2. Reserve revenue. Each district that is a member of an area learning center 142.3or alternative learning program must reserve revenue in an amount equal to the sum of 142.4(1) at least between 90 and 100 percent of the district average general education revenue 142.5per adjusted pupil unit minus an amount equal to the product of the formula allowance 142.6according to section 
         126C.10, subdivision 2, times .0485 .0466, calculated without 142.7basic skills revenue and transportation sparsity revenue, times the number of pupil units 142.8attending an area learning center or alternative learning program under this section, plus 142.9(2) the amount of basic skills revenue generated by pupils attending the area learning 142.10center or alternative learning program. The amount of reserved revenue under this 142.11subdivision may only be spent on program costs associated with the area learning center 142.12or alternative learning program.142.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 142.14and later.142.15    Sec. 7. [123A.482] JOINT POWERS COOPERATIVE FACILITY.142.16    Subdivision 1.Schools may be jointly operated.Two or more school districts may 142.17agree to jointly operate a secondary facility. The districts may choose to operate the 142.18facility according to a joint powers agreement under section 123A.78 or 471.59.142.19    Subd. 2.Expanded program offerings.A jointly operated secondary program 142.20seeking funding under section 123A.485 must demonstrate to the commissioner's 142.21satisfaction that the jointly operated program provides enhanced learning opportunities and 142.22broader curriculum offerings to the students attending that program. The commissioner 142.23must approve or disapprove a cooperative secondary program within 60 days of receipt of 142.24an application.142.25    Subd. 2a.Transfer of employees.An employee transferred between members of a 142.26joint powers agreement under this section is not required to serve a statutory or contractual 142.27probationary period. The employee shall receive credit on the receiving district's salary 142.28schedule for the employee's educational attainment and years of continuous service in 142.29the sending district, or shall receive a comparable salary, whichever is greater. The 142.30employee shall receive credit for accrued sick leave and rights to severance benefits as if 142.31the employee had been employed by the receiving district during the employee's years of 142.32employment in the sending district.142.33    Subd. 3.Revenue.An approved program that is jointly operated under this section 142.34is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections 142.35123A.44 to 123A.446.143.1    Subd. 4.Duty to maintain elementary and secondary schools met.A school 143.2district operating a joint facility under this section meets the requirements of section 143.3123A.64.143.4    Subd. 5.Estimated market value limit exclusion.Bonds for a cooperative facility 143.5operated under this section issued by a member school district are not subject to the net 143.6debt limit under section 475.53, subdivision 4. 143.7    Subd. 6.Allocation of levy authority for joint facility.For purposes of determining 143.8each member district's school levy, a jointly operated secondary program may allocate 143.9program costs to each member district according to the joint powers agreement and each 143.10member district may include those costs in its tax levy. The joint powers agreement may 143.11choose to allocate costs on any basis adopted as part of the joint powers agreement.143.12    Subd. 7.Effect of consolidation.The joint powers agreement may allow member 143.13school districts that choose to consolidate to continue to certify levies separately based on 143.14each component district's characteristics.143.15    Subd. 8.Bonds.A joint powers district formed under this section may issue bonds 143.16according to section 123A.78 or its member districts may issue bonds individually after 143.17complying with this subdivision. The joint powers board must submit the project for 143.18review and comment under section 123B.71. The joint powers board must hold a hearing 143.19on the proposal. If the bonds are not issued under section 123A.78, each member district 143.20of the joint powers district must submit the question of authorizing borrowing of funds for 143.21the project to the voters of the district at a special election. The question submitted shall 143.22state the total amount of funding needed from that district. The member district may issue 143.23the bonds according to chapter 475 and certify the levy required by section 475.61 only if 143.24a majority of those voting on the question in that district vote in the affirmative and only 143.25after the board has adopted a resolution pledging the full faith and credit of that unit. The 143.26resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy 143.27shortages that, together with other funds available, would allow the member school board 143.28to pay the principal and interest on the obligations. The clerk of the joint powers board 143.29must certify the vote of any bond elections to the commissioner. Bonds issued under this 143.30section first qualify for debt service equalization aid in fiscal year 2018.143.31    Subd. 9.Election.A district entering into a joint powers agreement under this 143.32section may conduct a referendum seeking approval for a new facility. This election may 143.33be held separately or at the same time as a bond election under subdivision 8. If the 143.34election is held at the same time, the questions may be asked separately or as a conjunctive 143.35question. The question must be approved by a majority of those voting on the question. 144.1If asked separately and the question fails, a district may not proceed with the sale of 144.2bonds according to subdivision 8.144.3EFFECTIVE DATE.This section is effective the day following final enactment.144.4    Sec. 8. Minnesota Statutes 2012, section 123A.485, is amended to read:144.5123A.485 CONSOLIDATION TRANSITION REVENUE AID.144.6    Subdivision 1. Eligibility and use. A district that operates a cooperative facility 144.7under section 123A.482 or that has been reorganized after June 30, 1994, under section 144.8123A.48
          is eligible for consolidation transition revenue. Revenue is equal to the sum of144.9 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue144.10 aid may only be used according to this section. Revenue must be used for the following 144.11purposes and may be distributed among these purposes at the discretion of the district or 144.12the governing board of the cooperative facility:144.13(1) to offer early retirement incentives as provided by section 
         123A.48, subdivision 144.1423
         ;144.15(2) to reduce operating debt as defined in section 
         123B.82;144.16(3) to enhance learning opportunities for students in the reorganized district; and144.17(4) to repay building debt; or144.18(5) for other costs incurred in the reorganization.144.19Revenue received and utilized under clause (3) or (4) (5) may be expended for 144.20operating, facilities, and/or equipment.144.21    Subd. 2. Aid.(a) Consolidation transition aid is equal to $200 $300 times the 144.22number of resident adjusted pupil units in the newly created cooperative facility under 144.23section 123A.482 or the consolidated district in the year of consolidation and $100 times 144.24the number of resident pupil units in the first year following the year of consolidation144.25 under section 123A.48. The number of pupil units used to calculate aidin either year 144.26shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts 144.27consolidating July 1, 1995, and thereafter A district may receive aid under this section for 144.28not more than five years except as provided in subdivision 4.144.29(b) If the total appropriation for consolidation transition aid for any fiscal year, plus 144.30any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all 144.31districts the full amount of aid earned, the department must first pay the districts in the first 144.32year following the year of consolidation the full amount of aid earned and distribute any 144.33remaining funds to the newly created districts in the first year of consolidation.145.1    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs 145.2of the district under section 
         123A.48, subdivision 23, the district may levy the difference 145.3over a period of time not to exceed three years.145.4    Subd. 4. New districts. If a district enters into a cooperative secondary facilities 145.5program or consolidates with another district that has received aid under section 
         123A.39, 145.6subdivision 3
         , or 
         123A.485 for a combination or consolidation taking effect within 145.7six years of the effective date of the new consolidation or the start of the cooperative 145.8secondary facilities program, only the pupil units in the district or districts not previously145.9 cooperating or reorganized must be counted for aid purposes under subdivision 2. If 145.10two or more districts consolidate and all districts received aid under subdivision 2 for a 145.11consolidation taking effect within six years of the effective date of the new consolidation, 145.12only one quarter of the pupil units in the newly created district must be used to determine 145.13aid under subdivision 2.145.14EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017 145.15and later.145.16    Sec. 9. Minnesota Statutes 2012, section 123A.64, is amended to read:145.17123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY 145.18SCHOOLS.145.19Each district must maintain classified elementary and secondary schools, grades 1 145.20through 12, unless the district is exempt according to section 
         123A.61 or 
         123A.62, has 145.21made an agreement with another district or districts as provided in sections 
         123A.30, 145.22123A.32
         , or sections 
         123A.35 to 
         123A.43, or 
         123A.17, subdivision 7, or has received a 145.23grant under sections 
         123A.441 to 
         123A.446, or has formed a cooperative under section 145.24123A.482. A district that has an agreement according to sections 
         123A.35 to 
         123A.43 or 145.25123A.32
          must operate a school with the number of grades required by those sections. A 145.26district that has an agreement according to section 
         123A.30 or 
         123A.17, subdivision 7, or 145.27has received a grant under sections 
         123A.441 to 
         123A.446 must operate a school for the 145.28grades not included in the agreement, but not fewer than three grades.145.29    Sec. 10. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is 145.30amended to read:145.31    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service 145.32revenue of a district is defined as follows:146.1    (1) the amount needed to produce between five and six percent in excess of the 146.2amount needed to meet when due the principal and interest payments on the obligations 146.3of the district for eligible projects according to subdivision 2, including the amounts 146.4necessary for repayment of energy loans according to section 
         216C.37 or sections 
         298.292146.5to 
         298.298, debt service loans and capital loans, lease purchase payments under section 146.6126C.40, subdivision 2
         , alternative facilities levies under section 
         123B.59, subdivision 146.75
         , paragraph (a), minus146.8    (2) the amount of debt service excess levy reduction for that school year calculated 146.9according to the procedure established by the commissioner.146.10    (b) The obligations in this paragraph are excluded from eligible debt service revenue:146.11    (1) obligations under section 
         123B.61;146.12    (2) the part of debt service principal and interest paid from the taconite environmental 146.13protection fund or Douglas J. Johnson economic protection trust, excluding both the 146.14portion of taconite payments from the Iron Range school consolidation and cooperatively 146.15operated school account under section 298.28, subdivision 7a, and any payments made 146.16from the Douglas J. Johnson economic protection trust fund under section 298.292, 146.17subdivision 2, clause (6);146.18    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 146.19amended by Laws 1992, chapter 499, article 5, section 24; and146.20    (4) obligations under section 
         123B.62.; and146.21    (5) obligations under section 123B.535.146.22    (c) For purposes of this section, if a preexisting school district reorganized under 146.23sections 
         123A.35 to 
         123A.43, 
         123A.46, and 
         123A.48 is solely responsible for retirement 146.24of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 146.25service equalization aid must be computed separately for each of the preexisting districts.146.26    (d) For purposes of this section, the adjusted net tax capacity determined according 146.27to sections 
         127A.48 and 
         273.1325 shall be adjusted to include the tax capacity of property 146.28generally exempted from ad valorem taxes under section 
         272.02, subdivision 64.146.29    Sec. 11. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.146.30    Subdivision 1.Definitions.(a) For purposes of this section, the eligible natural 146.31disaster debt service revenue of a district is defined as the amount needed to produce 146.32between five and six percent in excess of the amount needed to meet when due the 146.33principal and interest payments on the obligations of the district that would otherwise 146.34qualify under section 123B.53 under the following conditions:147.1    (1) the district was impacted by a natural disaster event or area occurring January 147.21, 2005, or later, as declared by the President of the United States of America, which is 147.3eligible for Federal Emergency Management Agency payments;147.4    (2) the natural disaster caused $500,000 or more in damages to school district 147.5buildings; and147.6    (3) the repair and replacement costs are not covered by insurance payments or 147.7Federal Emergency Management Agency payments.147.8    (b) For purposes of this section, the adjusted net tax capacity equalizing factor 147.9equals the quotient derived by dividing the total adjusted net tax capacity of all school 147.10districts in the state for the year before the year the levy is certified by the total number of 147.11adjusted pupil units in the state for the current school year.147.12    (c) For purposes of this section, the adjusted net tax capacity determined according 147.13to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 147.14generally exempted from ad valorem taxes under section 272.02, subdivision 64.147.15    Subd. 2.Notification.A district eligible for natural disaster debt service 147.16equalization revenue under subdivision 1 must notify the commissioner of the amount of 147.17its intended natural disaster debt service revenue calculated under subdivision 1 for all 147.18bonds sold prior to the notification by July 1 of the calendar year the levy is certified.147.19    Subd. 3.Natural disaster debt service equalization revenue.The debt service 147.20equalization revenue of a district equals the greater of zero or the eligible debt service 147.21revenue, minus the greater of zero or the difference between:147.22    (1) the amount raised by a levy of ten percent times the adjusted net tax capacity 147.23of the district; and147.24    (2) the district's eligible debt service revenue under section 123B.53.147.25    Subd. 4.Equalized natural disaster debt service levy.A district's equalized 147.26natural disaster debt service levy equals the district's natural disaster debt service 147.27equalization revenue times the lesser of one or the ratio of:147.28    (1) the quotient derived by dividing the adjusted net tax capacity of the district for 147.29the year before the year the levy is certified by the adjusted pupil units in the district for 147.30the school year ending in the year prior to the year the levy is certified; to147.31    (2) 300 percent of the statewide adjusted net tax capacity equalizing factor.147.32    Subd. 5.Natural disaster debt service equalization aid.A district's natural 147.33disaster debt service equalization aid equals the difference between the district's natural 147.34disaster debt service equalization revenue and the district's equalized natural disaster 147.35debt service levy.148.1    Subd. 6.Natural disaster debt service equalization aid payment schedule.Debt 148.2service equalization aid must be paid according to section 127A.45, subdivision 10.148.3EFFECTIVE DATE.This section is effective for levies certified for taxable year 148.42015 and revenue for fiscal year 2016 and later.148.5    Sec. 12. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:148.6123B.54 DEBT SERVICE APPROPRIATION.148.7    (a) The amount necessary to make debt service equalization aid payments under 148.8section sections123B.53and 123B.535 is annually appropriated from the general fund to 148.9the commissioner of education.148.10    (b) The appropriations in paragraph (a) must be reduced by the amount of any 148.11money specifically appropriated for the same purpose in any year from any state fund.148.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 148.13and later.148.14    Sec. 13. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:148.15    Subd. 8. Review and comment. A school district, a special education cooperative, 148.16or a cooperative unit of government, as defined in section 
         123A.24, subdivision 2, must not 148.17initiate an installment contract for purchase or a lease agreement, hold a referendum for 148.18bonds, nor solicit bids for new construction, expansion, or remodeling of an educational 148.19facility that requires an expenditure in excess of $500,000 per school site if it has a capital 148.20loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital 148.21loan outstanding, prior to review and comment by the commissioner. The commissioner 148.22may exempt A facility addition, maintenance project, or remodeling project funded only 148.23with general education aid and levy revenue, deferred maintenance revenue, alternative 148.24facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond 148.25proceeds, or health and safety revenue is exempt from this provision after reviewing a 148.26written request from a school district describing the scope of work. A capital project under 148.27section 123B.63 addressing only technology is exempt from this provision if the district 148.28submits a school board resolution stating that funds approved by the voters will be used 148.29only as authorized in section 126C.10, subdivision 14. A school board shall not separate 148.30portions of a single project into components to avoid the requirements of this subdivision.148.31    Sec. 14. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:149.1    Subd. 9. Information required. A school board proposing to construct, expand, 149.2or remodel a facility described in that requires a review and comment under subdivision 149.38 shall submit to the commissioner a proposal containing information including at least 149.4the following:149.5(1) the geographic area and population to be served, preschool through grade 12 149.6student enrollments for the past five years, and student enrollment projections for the 149.7next five years;149.8(2) a list of existing facilities by year constructed, their uses, and an assessment of 149.9the extent to which alternate facilities are available within the school district boundaries 149.10and in adjacent school districts;149.11(3) a list of the specific deficiencies of the facility that demonstrate the need for a 149.12new or renovated facility to be provided, the process used to determine the deficiencies, a 149.13list of those deficiencies that will and will not be addressed by the proposed project, and a 149.14list of the specific benefits that the new or renovated facility will provide to the students, 149.15teachers, and community users served by the facility;149.16(4) the relationship of the project to any priorities established by the school district, 149.17educational cooperatives that provide support services, or other public bodies in the 149.18service area;149.19(5) a description of the pedestrian, bicycle, and transit connections between the 149.20school and nearby residential areas that make it easier for children, teachers, and parents 149.21to get to the school by walking, bicycling, and taking transit;149.22(6) a specification of how the project maximizes the opportunity for cooperative use 149.23of existing park, recreation, and other public facilities and whether and how the project 149.24will increase collaboration with other governmental or nonprofit entities;149.25(7) (4) a description of the project, including the specification of site and outdoor 149.26space acreage and square footage allocations for classrooms, laboratories, and support 149.27spaces; estimated expenditures for the major portions of the project; and the dates the 149.28project will begin and be completed;149.29(8) (5) a specification of the source of financing the project, including applicable 149.30statutory citations; the scheduled date for a bond issue or school board action; a schedule 149.31of payments, including debt service equalization aid; and the effect of a bond issue on 149.32local property taxes by the property class and valuation;149.33(9) an analysis of how the proposed new or remodeled facility will affect school 149.34district operational or administrative staffing costs, and how the district's operating budget 149.35will cover any increased operational or administrative staffing costs;150.1(10) a description of the consultation with local or state transportation officials 150.2on multimodal school site access and safety issues, and the ways that the project will 150.3address those issues;150.4(11) a description of how indoor air quality issues have been considered and a 150.5certification that the architects and engineers designing the facility will have professional 150.6liability insurance;150.7(12) as required under section 123B.72, for buildings coming into service after July 1, 150.82002, a certification that the plans and designs for the extensively renovated or new facility's 150.9heating, ventilation, and air conditioning systems will meet or exceed code standards; will 150.10provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and 150.11will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;150.12(13) a specification of any desegregation requirements that cannot be met by any 150.13other reasonable means;150.14(14) a specification of how the facility will utilize environmentally sustainable 150.15school facility design concepts;150.16(15) a description of how the architects and engineers have considered the American 150.17National Standards Institute Acoustical Performance Criteria, Design Requirements 150.18and Guidelines for Schools of the maximum background noise level and reverberation 150.19times; and150.20    (16) any existing information from the relevant local unit of government about the 150.21cumulative costs to provide infrastructure to serve the school, such as utilities, sewer, 150.22roads, and sidewalks.150.23    (6) confirmations of the district and contracted professionals that the project is 150.24planned and will be executed to consider and comply with the following:150.25    (i) uniform municipal contracting law under section 471.345;150.26    (ii) sustainable design;150.27    (iii) school facility commissioning under section 123B.72 requiring certification that 150.28plans and designs for an extensively renovated or new facility's heating, ventilation, and 150.29air conditioning systems will meet or exceed current code standards; and will provide an 150.30air quality filtration system that meets ASHRAE standard 52.1;150.31    (iv) American National Standards Institute Acoustical Performance Criteria, Design 150.32Requirements and Guidelines for Schools of the maximum background noise level and 150.33reverberation times;150.34    (v) State Fire Code;150.35    (vi) applicable building code under chapter 326B;151.1    (vii) consultation with appropriate governmental units regarding utilities, roads, 151.2sewers, sidewalks, retention ponds, school bus and automobile traffic, and safe access 151.3for walkers and bicyclists.151.4    Sec. 15. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is 151.5amended to read:151.6    Subd. 5. Levy recognition.  For fiscal year 2011 2014 and later years, in June of 151.7each year, the school district must recognize as revenue, in the fund for which the levy 151.8was made, the lesser of:151.9(1) the sum of May, June, and July school district tax settlement revenue received in 151.10that calendar year, plus general education aid according to section 
         126C.13, subdivision 151.114
         , received in July and August of that calendar year; or151.12(2) the sum of:151.13(i) the greater of 48.6 percent of the referendum levy certified according to section 151.14126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 151.15according to section 
         126C.17 in calendar year 2000; plus151.16(ii) the entire amount of the levy certified in the prior calendar year according 151.17to section 
         124D.4531, 124D.86, subdivision 4, for school districts receiving revenue 151.18under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 
         124D.862, for Special 151.19School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and 151.20Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a), 151.21and 3, paragraphs (b), (c), and (d); 
         126C.43, subdivision 2; and 
         126C.48, subdivision 6; plus151.22(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 151.23school district's general and community service funds, plus or minus auditor's adjustments, 151.24that remains after subtracting the referendum levy certified according to section 126C.17 151.25and the amount recognized according to item (ii).151.26    Sec. 16. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:151.27    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its 151.28postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 151.29A postsecondary institution may provide information about its programs to a secondary 151.30school or to a pupil or parent and it may advertise or otherwise recruit or solicit a 151.31secondary pupil to enroll in its programs on educational and programmatic grounds only. 151.32An institution must not enroll secondary pupils, for postsecondary enrollment options 151.33purposes, in remedial, developmental, or other courses that are not college level, except 151.34when a student eligible to participate in the graduation incentives program under section 152.1124D.68 enrolls full-time in a middle or early college program specifically designed to 152.2allow the student to earn dual high school and college credit. In this case, the student shall 152.3receive developmental college credit and not college credit for completing remedial or 152.4developmental courses. Once a pupil has been enrolled in a postsecondary course under 152.5this section, the pupil shall not be displaced by another student.152.6EFFECTIVE DATE.This section is effective July 1, 2014.152.7    Sec. 17. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:152.8    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this 152.9section, the department must make payments according to this subdivision for courses that 152.10were taken for secondary credit.152.11The department must not make payments to a school district or postsecondary 152.12institution for a course taken for postsecondary credit only. The department must not 152.13make payments to a postsecondary institution for a course from which a student officially 152.14withdraws during the first 14 days of the quarter or semester or who has been absent from 152.15the postsecondary institution for the first 15 consecutive school days of the quarter or 152.16semester and is not receiving instruction in the home or hospital.152.17A postsecondary institution shall receive the following:152.18(1) for an institution granting quarter credit, the reimbursement per credit hour shall 152.19be an amount equal to 88 percent of the product of the formula allowance minus $415152.20 $425, multiplied by 1.3 1.2, and divided by 45; or152.21(2) for an institution granting semester credit, the reimbursement per credit hour 152.22shall be an amount equal to 88 percent of the product of the general revenue formula 152.23allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.152.24The department must pay to each postsecondary institution 100 percent of the 152.25amount in clause (1) or (2) within 30 days of receiving initial enrollment information 152.26each quarter or semester. If changes in enrollment occur during a quarter or semester, 152.27the change shall be reported by the postsecondary institution at the time the enrollment 152.28information for the succeeding quarter or semester is submitted. At any time the 152.29department notifies a postsecondary institution that an overpayment has been made, the 152.30institution shall promptly remit the amount due.152.31    Sec. 18. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is 152.32amended to read:152.33    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all 152.34federal, state, and local health and safety requirements applicable to school districts.153.1    (b) A school must comply with statewide accountability requirements governing 153.2standards and assessments in chapter 120B.153.3    (c) A school authorized by a school board may be located in any district, unless the 153.4school board of the district of the proposed location disapproves by written resolution.153.5    (d) A charter school must be nonsectarian in its programs, admission policies, 153.6employment practices, and all other operations. An authorizer may not authorize a charter 153.7school or program that is affiliated with a nonpublic sectarian school or a religious 153.8institution. A charter school student must be released for religious instruction, consistent 153.9with section 
         120A.22, subdivision 12, clause (3).153.10    (e) Charter schools must not be used as a method of providing education or 153.11generating revenue for students who are being home-schooled. This paragraph does not 153.12apply to shared time aid under section 
         126C.19.153.13    (f) The primary focus of a charter school must be to provide a comprehensive 153.14program of instruction for at least one grade or age group from five through 18 years 153.15of age. Instruction may be provided to people younger than five years and older than 153.1618 years of age.153.17    (g) A charter school may not charge tuition.153.18    (h) A charter school is subject to and must comply with chapter 363A and section 153.19121A.04
         .153.20    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal 153.21Act, sections 
         121A.40 to 
         121A.56, and the Minnesota Public School Fee Law, sections 153.22123B.34
          to 
         123B.39.153.23    (j) A charter school is subject to the same financial audits, audit procedures, and 153.24audit requirements as a district, except as required under subdivision 6a. Audits must be 153.25conducted in compliance with generally accepted governmental auditing standards, the 153.26federal Single Audit Act, if applicable, and section 
         6.65. A charter school is subject 153.27to and must comply with sections 
         15.054; 
         118A.01; 
         118A.02; 
         118A.03; 
         118A.04; 153.28118A.05
         ; 
         118A.06; 
         471.38; 
         471.391; 
         471.392; and 
         471.425. The audit must comply with 153.29the requirements of sections 
         123B.75 to 
         123B.83, except to the extent deviations are 153.30necessary because of the program at the school. Deviations must be approved by the 153.31commissioner and authorizer. The Department of Education, state auditor, legislative 153.32auditor, or authorizer may conduct financial, program, or compliance audits. A charter 153.33school determined to be in statutory operating debt under sections 
         123B.81 to 
         123B.83 153.34must submit a plan under section 
         123B.81, subdivision 4.153.35    (k) A charter school is a district for the purposes of tort liability under chapter 466.154.1    (l) A charter school must comply with chapters 13 and 13D; and sections 
         120A.22, 154.2subdivision 7
         ; 
         121A.75; and 
         260B.171, subdivisions 3 and 5.154.3    (m) A charter school is subject to the Pledge of Allegiance requirement under 154.4section 
         121A.11, subdivision 3.154.5    (n) A charter school offering online courses or programs must comply with section 154.6124D.095
         .154.7    (o) A charter school and charter school board of directors are subject to chapter 181.154.8    (p) A charter school must comply with section 
         120A.22, subdivision 7, governing 154.9the transfer of students' educational records and sections 
         138.163 and 
         138.17 governing 154.10the management of local records.154.11    (q) A charter school that provides early childhood health and developmental 154.12screening must comply with sections 
         121A.16 to 
         121A.19.154.13    (r) A charter school that provides school-sponsored youth athletic activities must 154.14comply with section 121A.38.154.15    (s) A charter school is subject to and must comply with continuing truant notification 154.16under section 
         260A.03.154.17    (t) A charter school must develop and implement a teacher evaluation and peer review 154.18process under section 
         122A.40, subdivision 8, paragraph (b), clauses (2) to (12) (13) .154.19    (u) A charter school must adopt a policy, plan, budget, and process, consistent with 154.20section 
         120B.11, to review curriculum, instruction, and student achievement and strive 154.21for the world's best workforce.154.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 154.23and later.154.24    Sec. 19. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is 154.25amended to read:154.26    Subdivision 1. General education revenue.  General education revenue must be 154.27paid to a charter school as though it were a district. The general education revenue 154.28for each adjusted pupil unit is the state average general education revenue per pupil 154.29unit, plus the referendum equalization aid allowance in the pupil's district of residence, 154.30minus an amount equal to the product of the formula allowance according to section 154.31126C.10, subdivision 2
         , times .0466, calculated without declining enrollment revenue, 154.32local optional revenue, basic skills revenue, extended time revenue, pension adjustment 154.33revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment 154.34revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and 155.1transition revenue as though the school were a school district. The general education 155.2revenue for each extended time pupil unit equals $4,794.155.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 155.4and later.155.5    Sec. 20. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1, 155.6is amended to read:155.7    Subdivision 1. School lunch aid computation. Each school year, the state must 155.8pay participants in the national school lunch program the amount of 12.5 cents for each 155.9full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price 155.10student lunch served to students.155.11EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.155.12    Sec. 21. Minnesota Statutes 2012, section 124D.111, is amended by adding a 155.13subdivision to read:155.14    Subd. 4.No fees.A participant that receives school lunch aid under this section 155.15must make lunch available without charge to all participating students who qualify for 155.16free or reduced-price meals. The participant must also ensure that any reminders for 155.17payment of outstanding student meal balances do not demean or stigmatize any child 155.18participating in the school lunch program.155.19EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.155.20    Sec. 22. Minnesota Statutes 2012, section 124D.111, is amended by adding a 155.21subdivision to read:155.22    Subd. 5.Inability to pay.A participant that receives school lunch aid under this 155.23section is encouraged to provide a student who is unable to pay with the same lunch 155.24that is served to other students.155.25    Sec. 23. Minnesota Statutes 2012, section 124D.1158, subdivision 3, is amended to read:155.26    Subd. 3. Program reimbursement. Each school year, the state must reimburse 155.27each participating school 30 cents for each reduced-price breakfast and, 55 cents for each 155.28fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid 155.29breakfast served to a kindergarten student.155.30    Sec. 24. Minnesota Statutes 2012, section 124D.1158, subdivision 4, is amended to read:156.1    Subd. 4. No fees. A school that receives school breakfast aid under this section must 156.2make breakfast available without charge to all participating students in grades 1 to 12 who 156.3qualify for free or reduced price meals and to all kindergarten students.156.4    Sec. 25. Minnesota Statutes 2012, section 124D.13, subdivision 2, is amended to read:156.5    Subd. 2. Program requirements. (a) Early childhood family education programs 156.6are programs for children in the period of life from birth to kindergarten, for the parents 156.7and other relatives of these children, and for expectant parents. To the extent that funds 156.8are insufficient to provide programs for all children, early childhood family education 156.9programs should emphasize programming for a child from birth to age three and 156.10encourage parents and other relatives to involve four- and five-year-old children in school 156.11readiness programs, and other public and nonpublic early learning programs. A district 156.12may not limit participation to school district residents. Early childhood family education 156.13programs must provide:156.14    (1) programs to educate parents and other relatives about the physical, mental156.15 cognitive, social, and emotional development of children and to enhance the skills of 156.16parents and other relatives in providing for their children's learning and development;156.17    (2) structured learning activities requiring interaction between children and their 156.18parents or relatives;156.19    (3) structured learning activities for children that promote children's development 156.20and positive interaction with peers, which are held while parents or relatives attend parent 156.21education classes;156.22    (4) information on related community resources;156.23    (5) information, materials, and activities that support the safety of children, including 156.24prevention of child abuse and neglect; and156.25    (6) a community outreach plan to ensure participation by families who reflect 156.26the racial, cultural, and economic diversity of the school district needs assessment that 156.27identifies new and underserved populations, identifies child and family risk factors, 156.28particularly those that impact children's learning and development, and assesses family 156.29and parenting education needs in the community;156.30    (7) programming and services that are tailored to the needs of families and parents 156.31prioritized in the community needs assessment; and156.32    (8) provide information about and, if needed, assist in making arrangements for an 156.33early childhood health and developmental screening under sections 121A.16 and 121A.17, 156.34when the child nears their third birthday.157.1Early childhood family education programs should prioritize programming and 157.2services for families and parents identified in the community needs assessment, particularly 157.3those families and parents with children with the most risk factors birth to age three.157.4    The programs must include learning experiences for children, parents, and other 157.5relatives that promote children's early literacy skills. The program must not include 157.6activities for children that do not require substantial involvement of the children's parents 157.7or other relatives. The program may provide parenting education programming or services 157.8to anyone identified in the community needs assessment. The program must be reviewed 157.9periodically to assure the instruction and materials are not racially, culturally, or sexually 157.10biased. The programs must encourage parents to be aware of practices that may affect 157.11equitable development of children.157.12    (b) For the purposes of this section, "relative" or "relatives" means noncustodial 157.13grandparents or other persons related to a child by blood, marriage, adoption, or foster 157.14placement, excluding parents.157.15    Sec. 26. Minnesota Statutes 2012, section 124D.13, subdivision 4, is amended to read:157.16    Subd. 4. Home visiting program. A district that levies for home visiting under 157.17section 
         124D.135, subdivision 6, shall use this revenue to include as part of the early 157.18childhood family education programs a parent education component that is designed to 157.19reach isolated or at-risk families.157.20The home visiting program must use:157.21(1) an established risk assessment tool to determine the family's level of risk157.22 incorporate evidence-informed parenting education practices designed to support the 157.23healthy growth and development of children, with a priority focus on those children 157.24who have high needs;157.25(2) establish clear objectives and protocols for home visits;157.26(3) encourage families to make a transition from home visits to site-based parenting 157.27programs;157.28(4) provide program services that are community-based, accessible, and culturally 157.29relevant; and157.30(5) foster collaboration among existing agencies and community-based organizations 157.31that serve young children and their families, such as public health evidence-based models 157.32of home visiting and Head Start home visiting; and157.33(6) provide information about and assist in making arrangements for an early 157.34childhood health and developmental screening when the child nears his or her third 157.35birthday.158.1Home visitors The home visiting program  should  be provided by licensed parenting 158.2educators, certified family life educators, or professionals with an equivalent license that 158.3reflect the demographic composition of the community to the extent possible.158.4    Sec. 27. Minnesota Statutes 2012, section 124D.13, subdivision 9, is amended to read:158.5    Subd. 9. District advisory councils. The board must appoint an advisory council 158.6from the area in which the program is provided. A majority of the council must be 158.7parents participating in the program, who represent the demographics of the community. 158.8The district must ensure, to the extent possible, that the council includes representation 158.9of families who are racially, culturally, linguistically, and economically diverse. The 158.10council must assist the board in developing, planning, and monitoring the early childhood 158.11family education program. The council must report to the board and the community 158.12education advisory council.158.13    Sec. 28. Minnesota Statutes 2012, section 124D.13, subdivision 13, is amended to read:158.14    Subd. 13.  Program data submission requirements.  Districts receiving early 158.15childhood family education revenue under section 
         124D.135 must submit annual program 158.16data, including data that demonstrates the program response to the community needs 158.17assessment,  to the department by July 15 in the form and manner prescribed by the 158.18commissioner.158.19    Sec. 29. Minnesota Statutes 2012, section 124D.13, is amended by adding a 158.20subdivision to read:158.21    Subd. 14.Supervision.A program provided by a board must be supervised by a 158.22licensed early childhood teacher or a licensed parent educator.158.23    Sec. 30. Minnesota Statutes 2012, section 124D.13, is amended by adding a 158.24subdivision to read:158.25    Subd. 15.Parenting education transition program.To the extent that funds are 158.26sufficient, early childhood family education may provide parenting education transition 158.27programming for parents of children birth to grade three in districts in which there is a 158.28prekindergarten-grade three initiative in order to facilitate continued parent engagement 158.29in children's learning and development. Early childhood family education programs are 158.30encouraged to develop partnerships to provide a parenting education liaison to providers 158.31of other public and nonpublic early learning programs, such as Head Start, school 159.1readiness, child care, early childhood special education, local public health programs, 159.2and health care providers.159.3    Sec. 31. Minnesota Statutes 2012, section 124D.135, subdivision 1, is amended to read:159.4    Subdivision 1. Revenue. The revenue for early childhood family education 159.5programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year 159.62008$120 for fiscal year 2014 and the formula allowance for the year times 0.0253 for 159.7fiscal year 2015 and later, times the greater of:159.8    (1) 150; or159.9    (2) the number of people under five years of age residing in the district on October 1 159.10of the previous school year.159.11    Sec. 32. Minnesota Statutes 2012, section 124D.135, subdivision 3, is amended to read:159.12    Subd. 3. Early childhood family education levy.(a) By September 30 of each year, 159.13the commissioner shall establish a tax rate for early childhood family education revenue 159.14that raises $22,135,000 in each fiscal year. If the amount of the early childhood family 159.15education levy would exceed the early childhood family education revenue, the early 159.16childhood family education levy must equal the early childhood family education revenue. 159.17A district may not certify an early childhood family education levy unless it has met the 159.18annual program data reporting requirements under section 
         124D.13, subdivision 13.159.19    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall 159.20establish a tax rate for early education revenue that raises $13,565,000.159.21    Sec. 33. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3, 159.22is amended to read:159.23    Subd. 3. Administration. (a) The commissioner shall establish application 159.24timelines and determine the schedule for awarding scholarships that meets operational 159.25needs of eligible families and programs. The commissioner may prioritize applications on 159.26factors including family income, geographic location, and whether the child's family is on a 159.27waiting list for a publicly funded program providing early education or child care services.159.28(b) Scholarships may be awarded up to $5,000 for each eligible child. The 159.29commissioner shall establish a target for the average scholarship amount per child 159.30based on the results of the rate survey conducted under section 119B.13, subdivision 1, 159.31paragraph (b), per year.159.32(c) A four-star rated program that has children eligible for a scholarship enrolled 159.33in or on a waiting list for a program beginning in July, August, or September may notify 160.1the commissioner, in the form and manner prescribed by the commissioner, each year 160.2of the program's desire to enhance program services or to serve more children than 160.3current funding provides. The commissioner may designate a predetermined number of 160.4scholarship slots for that program and notify the program of that number. A school district 160.5or Head Start program qualifying under this paragraph may use its established registration 160.6process to enroll scholarship recipients and may verify a scholarship recipient's family 160.7income in the same manner as for other program participants.160.8(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has 160.9not been accepted and subsequently enrolled in a rated program within ten months of the 160.10awarding of the scholarship, the scholarship cancels and the recipient must reapply in 160.11order to be eligible for another scholarship. A child may not be awarded more than one 160.12scholarship in a 12-month period.160.13(e) A child who receives a scholarship who has not completed development 160.14screening under sections 
         121A.16 to 
         121A.19 must complete that screening within 90 160.15days of first attending an eligible program.160.16(f) A school district or Head Start program enrolling scholarship recipients under 160.17paragraph (c) may apply to the commissioner, in the form and manner prescribed by 160.18the commissioner, for direct payment of state aid. Upon receipt of the application, the 160.19commissioner must pay each program directly for each approved scholarship recipient 160.20enrolled under paragraph (c) according to the metered payment system or another schedule 160.21established by the commissioner.160.22EFFECTIVE DATE.This section is effective July 1, 2016.160.23    Sec. 34. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 4, 160.24is amended to read:160.25    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept 160.26an early childhood education scholarship, a program must:160.27(1) participate in the quality rating and improvement system under section 160.28124D.142
         ; and160.29(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating 160.30and improvement system.160.31(b) Any program accepting scholarships must use the revenue to supplement and not 160.32supplant federal funding.160.33(c) Notwithstanding paragraph (a), all Minnesota early learning foundation 160.34scholarship program pilot sites are eligible to accept an early learning scholarship under 160.35this section.161.1    Sec. 35. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, 161.2is amended to read:161.3    Subd. 5. Report required. The commissioner shall contract with an independent 161.4contractor to evaluate the early learning scholarship program. The evaluation must 161.5include recommendations regarding the appropriate scholarship amount, efficiency, and 161.6effectiveness of the administration, and impact on kindergarten readiness and student 161.7outcomes by program setting, including Head Start programs, school-based prekindergarten 161.8and preschool programs, and other early education and child care programs. The report 161.9must also include the number of scholarship recipients in school-based, home-based, 161.10and center-based programs as well as a geographic summary of scholarship recipients 161.11by county. By January 15, 2016, the commissioner shall submit a written copy of the 161.12evaluation to the chairs and ranking minority members of the legislative committees and 161.13divisions with primary jurisdiction over kindergarten through grade 12 education.161.14    Sec. 36. Minnesota Statutes 2012, section 124D.522, is amended to read:161.15124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 161.16GRANTS.161.17(a) The commissioner, in consultation with the policy review task force under 161.18section 
         124D.521, may make grants to nonprofit organizations to provide services that 161.19are not offered by a district adult basic education program or that are supplemental to 161.20either the statewide adult basic education program, or a district's adult basic education 161.21program. The commissioner may make grants for: staff development for adult basic 161.22education teachers and administrators; training for volunteer tutors; training, services, and 161.23materials for serving disabled students through adult basic education programs; statewide 161.24promotion of adult basic education services and programs; development and dissemination 161.25of instructional and administrative technology for adult basic education programs; 161.26programs which primarily serve communities of color; adult basic education distance 161.27learning projects, including television instruction programs; and other supplemental 161.28services to support the mission of adult basic education and innovative delivery of adult 161.29basic education services.161.30(b) The commissioner must establish eligibility criteria and grant application 161.31procedures. Grants under this section must support services throughout the state, focus on 161.32educational results for adult learners, and promote outcome-based achievement through 161.33adult basic education programs. Beginning in fiscal year 2002, the commissioner may 161.34make grants under this section from the state total adult basic education aid set aside for 161.35supplemental service grants under section 
         124D.531. Up to one-fourth of the appropriation 162.1for supplemental service grants must be used for grants for adult basic education programs 162.2to encourage and support innovations in adult basic education instruction and service 162.3delivery. A grant to a single organization cannot exceed 20 40 percent of the total 162.4supplemental services aid. Nothing in this section prevents an approved adult basic 162.5education program from using state or federal aid to purchase supplemental services.162.6    Sec. 37. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, 162.7is amended to read:162.8    Subdivision 1. State total adult basic education aid. (a) The state total adult basic 162.9education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 162.10during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 162.11(a), or section 
         124D.52, subdivision 3. The state total adult basic education aid for later 162.12fiscal years equals:162.13    (1) the state total adult basic education aid for the preceding fiscal year plus any 162.14amount that is not paid for during the previous fiscal year, as a result of adjustments under 162.15subdivision 4, paragraph (a), or section 
         124D.52, subdivision 3; times162.16    (2) the lesser of:162.17    (i) 1.025 1.03; or162.18    (ii) the average growth in state total contact hours over the prior ten program years.162.19    Beginning in fiscal year 2002, two Three percent of the state total adult basic 162.20education aid must be set aside for adult basic education supplemental service grants 162.21under section 
         124D.522.162.22    (b) The state total adult basic education aid, excluding basic population aid, equals 162.23the difference between the amount computed in paragraph (a), and the state total basic 162.24population aid under subdivision 2.162.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 162.26and later.162.27    Sec. 38. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:162.28    Subd. 3. Program revenue. Adult basic education programs established under 162.29section 
         124D.52 and approved by the commissioner are eligible for revenue under this 162.30subdivision. For fiscal year 2001 and later, adult basic education revenue for each 162.31approved program equals the sum of:162.32(1) the basic population aid under subdivision 2 for districts participating in the 162.33program during the current program year; plus163.1(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the 163.2ratio of the contact hours for students participating in the program during the first prior 163.3program year to the state total contact hours during the first prior program year; plus163.4(3) eight percent times the amount computed in subdivision 1, paragraph (b), times 163.5the ratio of the enrollment of English learners during the second prior school year in 163.6districts participating in the program during the current program year to the state total 163.7enrollment of English learners during the second prior school year in districts participating 163.8in adult basic education programs during the current program year; plus163.9(4) eight percent times the amount computed in subdivision 1, paragraph (b), times 163.10the ratio of the latest federal census count of the number of adults aged 20 25 or older 163.11with no diploma residing in the districts participating in the program during the current 163.12program year to the latest federal census count of the state total number of adults aged 20163.13 25 or older with no diploma residing in the districts participating in adult basic education 163.14programs during the current program year.163.15    Sec. 39. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:163.16    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten 163.17through grade 12 who meets the following requirements:163.18(1) the pupil, as declared by a parent or guardian first learned a language other than 163.19English, comes from a home where the language usually spoken is other than English, or 163.20usually speaks a language other than English; and163.21(2) the pupil is determined by a valid assessment measuring the pupil's English 163.22language proficiency and by developmentally appropriate measures, which might include 163.23observations, teacher judgment, parent recommendations, or developmentally appropriate 163.24assessment instruments, to lack the necessary English skills to participate fully in 163.25academic classes taught in English.163.26(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school 163.27in grades any grade 4 through 12 who was enrolled in a Minnesota public school on 163.28the dates during in the previous school year when a commissioner provided took a 163.29commissioner-provided assessment that measures measuring the pupil's emerging 163.30academic English was administered, shall not be counted as an English learner in 163.31calculating English learner pupil units under section 
         126C.05, subdivision 17, and shall not163.32 generate state English learner aid under section 
         124D.65, subdivision 5, unless if the pupil 163.33scored below the state cutoff score or is otherwise counted as a nonproficient participant 163.34on an the assessment measuring the pupil's emerging academic English provided by the 163.35commissioner during the previous school year or in the judgment of the pupil's classroom 164.1teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate 164.2academic language proficiency in English, including oral academic language, sufficient to 164.3successfully and fully participate in the general core curriculum in the regular classroom.164.4(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 164.512 shall not be counted as an English learner in calculating English learner pupil units 164.6under section 
         126C.05, subdivision 17, and shall not generate state English learner aid 164.7under section 
         124D.65, subdivision 5, if:164.8(1) the pupil is not enrolled during the current fiscal year in an educational program 164.9for English learners in accordance with under sections 
         124D.58 to 
         124D.64; or164.10(2) the pupil has generated five six  or more years of average daily membership in 164.11Minnesota public schools since July 1, 1996.164.12EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and 164.13later.164.14    Sec. 40. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, 164.15is amended to read:164.16    Subdivision 1. Initial achievement and integration revenue. (a) An eligible 164.17district's initial achievement and integration revenue equals the lesser of 100.3 percent of 164.18the district's expenditures under the budget approved by the commissioner under section 164.19124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive 164.20revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil 164.21units for that year times the ratio of the district's enrollment of protected students for the 164.22previous school year to total enrollment for the previous school year and (2) the greater of 164.23zero or 66 percent of the difference between the district's integration revenue for fiscal 164.24year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).164.25(b) In each year, 0.3 percent of each district's initial achievement and integration 164.26revenue is transferred to the department for the oversight and accountability activities 164.27required under this section and section 
         124D.861.164.28EFFECTIVE DATE.This section is effective the day following final enactment 164.29and applies to revenue for fiscal year 2014 and later.164.30    Sec. 41. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, 164.31is amended to read:164.32    Subd. 2. Incentive revenue. An eligible school district's maximum incentive 164.33revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 165.1be A district's incentive revenue equals the lesser of the maximum incentive revenue 165.2or the district's expenditures for implementing a voluntary plan to reduce racial and 165.3economic enrollment disparities through intradistrict and interdistrict activities that have 165.4been approved as a part of the district's achievement and integration plan under the budget 165.5approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).165.6EFFECTIVE DATE.This section is effective the day following final enactment 165.7and applies to revenue for fiscal year 2014 and later.165.8    Sec. 42. Minnesota Statutes 2012, section 125A.08, is amended to read:165.9125A.08 INDIVIDUALIZED EDUCATION PROGRAMS; DATA 165.10REPORTING REQUIREMENTS.165.11    Subdivision 1.Requirements for individualized education programs. (a) At the 165.12beginning of each school year, each school district shall have in effect, for each child with 165.13a disability, an individualized education program.165.14(b) As defined in this section, every district must ensure the following:165.15(1) all students with disabilities are provided the special instruction and services 165.16which are appropriate to their needs. Where the individualized education program team 165.17has determined appropriate goals and objectives based on the student's needs, including 165.18the extent to which the student can be included in the least restrictive environment, 165.19and where there are essentially equivalent and effective instruction, related services, or 165.20assistive technology devices available to meet the student's needs, cost to the district may 165.21be among the factors considered by the team in choosing how to provide the appropriate 165.22services, instruction, or devices that are to be made part of the student's individualized 165.23education program. The individualized education program team shall consider and 165.24may authorize services covered by medical assistance according to section 
         256B.0625, 165.25subdivision 26
         . The student's needs and the special education instruction and services to 165.26be provided must be agreed upon through the development of an individualized education 165.27program. The program must address the student's need to develop skills to live and work 165.28as independently as possible within the community. The individualized education program 165.29team must consider positive behavioral interventions, strategies, and supports that address 165.30behavior for children with attention deficit disorder or attention deficit hyperactivity 165.31disorder. During grade 9, the program must address the student's needs for transition from 165.32secondary services to postsecondary education and training, employment, community 165.33participation, recreation, and leisure and home living. In developing the program, districts 165.34must inform parents of the full range of transitional goals and related services that should 166.1be considered. The program must include a statement of the needed transition services, 166.2including a statement of the interagency responsibilities or linkages or both before 166.3secondary services are concluded;166.4(2) children with a disability under age five and their families are provided special 166.5instruction and services appropriate to the child's level of functioning and needs;166.6(3) children with a disability and their parents or guardians are guaranteed procedural 166.7safeguards and the right to participate in decisions involving identification, assessment 166.8including assistive technology assessment, and educational placement of children with a 166.9disability;166.10(4) eligibility and needs of children with a disability are determined by an initial 166.11assessment or reassessment, which may be completed using existing data under United 166.12States Code, title 20, section 33, et seq.;166.13(5) to the maximum extent appropriate, children with a disability, including those 166.14in public or private institutions or other care facilities, are educated with children who 166.15are not disabled, and that special classes, separate schooling, or other removal of children 166.16with a disability from the regular educational environment occurs only when and to the 166.17extent that the nature or severity of the disability is such that education in regular classes 166.18with the use of supplementary services cannot be achieved satisfactorily;166.19(6) in accordance with recognized professional standards, testing and evaluation 166.20materials, and procedures used for the purposes of classification and placement of children 166.21with a disability are selected and administered so as not to be racially or culturally 166.22discriminatory; and166.23(7) the rights of the child are protected when the parents or guardians are not known 166.24or not available, or the child is a ward of the state.166.25(c) For paraprofessionals employed to work in programs for students with 166.26disabilities, the school board in each district shall ensure that:166.27(1) before or immediately upon employment, each paraprofessional develops 166.28sufficient knowledge and skills in emergency procedures, building orientation, roles and 166.29responsibilities, confidentiality, vulnerability, and reportability, among other things, to 166.30begin meeting the needs of the students with whom the paraprofessional works;166.31(2) annual training opportunities are available to enable the paraprofessional to 166.32continue to further develop the knowledge and skills that are specific to the students with 166.33whom the paraprofessional works, including understanding disabilities, following lesson 166.34plans, and implementing follow-up instructional procedures and activities; and167.1(3) a districtwide process obligates each paraprofessional to work under the ongoing 167.2direction of a licensed teacher and, where appropriate and possible, the supervision of a 167.3school nurse.167.4    Subd. 2.Online reporting of required data.(a) To ensure a strong focus 167.5on outcomes for children with disabilities informs federal and state compliance and 167.6accountability requirements and to increase opportunities for special educators and 167.7related-services providers to focus on teaching children with disabilities, the commissioner 167.8must integrate, customize, and sustain a streamlined, user-friendly statewide online system, 167.9with a single, integrated model online form, for effectively and efficiently collecting 167.10and reporting required special education–related data to individuals with a legitimate 167.11educational interest and who are authorized by law to access the data. Among other 167.12data-related requirements, the online system must successfully interface with existing state 167.13reporting systems such as MARSS and Child Count and with districts' local data systems.167.14(b) The commissioner must consult with qualified experts, including information 167.15technology specialists, licensed special education teachers and directors of special 167.16education, related-services providers, third-party vendors, a designee of the commissioner 167.17of human services, parents of children with disabilities, representatives of advocacy groups 167.18representing children with disabilities, and representatives of school districts and special 167.19education cooperatives on integrating, field testing, customizing, and sustaining this simple, 167.20easily accessible, efficient, and effective online data system for uniform statewide reporting 167.21of required due process compliance data. Among other outcomes, the system must:167.22    (1) reduce special education teachers' paperwork burden and thereby increase the 167.23teachers' opportunities to focus on teaching children;167.24(2) to the extent authorized by chapter 13 or other applicable state or federal law 167.25governing access to and dissemination of educational records, provide for efficiently and 167.26effectively transmitting the records of all transferring children with disabilities, including 167.27highly mobile and homeless children with disabilities, among others, to give an enrolling 167.28school, school district, facility, or other institution immediate access to information about 167.29the transferring child and to avoid fragmented service delivery;167.30(3) address language and other barriers and disparities that prevent parents from 167.31understanding and communicating information about the needs of their children with 167.32disabilities;167.33(4) facilitate school districts' ability to bill medical assistance, MinnesotaCare, 167.34and other third-party payers for the costs of providing individualized education program 167.35health-related services to an eligible child with disabilities;168.1(5) help continuously improve the interface among the online systems serving 168.2children with disabilities in order to maintain and reinforce the children's ability to learn; 168.3and168.4(6) have readily accessible expert technical assistance to maintain, sustain, and 168.5improve the online system.168.6(c) The commissioner must use the federal Office of Special Education Programs 168.7model forms for the (1) individualized education program, (2) notice of procedural 168.8safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate 168.9and customize a state-sponsored universal special education online case management 168.10system, consistent with the requirements of state law and this subdivision for integrating, 168.11customizing, and sustaining a statewide online reporting system. The commissioner must 168.12use a request for proposal process to contract for the technology and software needed 168.13for integrating and customizing the online system in order for the system to be fully 168.14functional, consistent with the requirements of this subdivision.  This online system must 168.15be made available to school districts without charge beginning in the 2015-2016 school 168.16year. All actions in which data in the system are entered, updated, accessed, or shared or 168.17disseminated outside of the system, must be recorded in a data audit trail. The audit trail 168.18must identify the user responsible for the action, and the date and time the action occurred. 168.19Data contained in the audit trail maintain the same classification as the underlying data 168.20that was affected by the action, and may be accessed by the responsible authority at any 168.21time for purposes of auditing the system's user activity and security safeguards. For the 168.222015-2016 through 2017-2018 school years, school districts may use this online system or 168.23may contract with an outside vendor for compliance reporting. Beginning in the 2018-2019 168.24school year and later, school districts must use this online system for compliance reporting.168.25(d) Consistent with this subdivision, the commissioner must establish a public 168.26Internet Web interface to provide information to educators, parents, and the public about 168.27the form and content of required special education reports, to respond to queries from 168.28educators, parents, and the public about specific aspects of special education reports and 168.29reporting, and to use the information garnered from the interface to streamline and revise 168.30special education reporting on the online system under this subdivision. The public Internet 168.31Web interface must not provide access to the educational records of any individual child.168.32(e) The commissioner annually by February 1 must submit to the legislature a report 168.33on the status, recent changes, and sustainability of the online system under this subdivision.168.34    Sec. 43. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is 168.35amended to read:169.1    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 169.2later, when a school district provides special instruction and services for a pupil with 169.3a disability as defined in section 
         125A.02 outside the district of residence, excluding 169.4a pupil for whom an adjustment to special education aid is calculated according to 169.5section 
         127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 169.6resident district must be reduced by an amount equal to (1) the actual cost of providing 169.7special instruction and services to the pupil, including a proportionate amount for special 169.8transportation and unreimbursed building lease and debt service costs for facilities used 169.9primarily for special education, plus (2) the amount of general education revenue and 169.10referendum equalization aid attributable to that pupil, calculated using the resident district's 169.11average general education revenue and referendum equalization aid per adjusted pupil 169.12unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 169.13revenue, minus (3) the amount of special education aid for children with a disability 169.14under section 
         125A.76 received on behalf of that child, minus (4) if the pupil receives 169.15special instruction and services outside the regular classroom for more than 60 percent 169.16of the school day, the amount of general education revenue and referendum equalization 169.17aid, excluding portions attributable to district and school administration, district support 169.18services, operations and maintenance, capital expenditures, and pupil transportation, 169.19attributable to that pupil for the portion of time the pupil receives special instruction 169.20and services outside of the regular classroom, calculated using the resident district's 169.21average general education revenue and referendum equalization aid per adjusted pupil unit 169.22excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 169.23and the serving district's basic skills revenue, elementary sparsity revenue and secondary 169.24sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 169.25served by a cooperative unit without a fiscal agent school district, the general education 169.26revenue and referendum equalization aid attributable to a pupil must be calculated using 169.27the resident district's average general education revenue and referendum equalization aid 169.28excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 169.29revenue. Special education aid paid to the district or cooperative providing special 169.30instruction and services for the pupil must be increased by the amount of the reduction in 169.31the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 169.32and section 
         127A.47, subdivision 7, shall be recognized and reported as revenues and 169.33expenditures on the resident school district's books of account under sections 
         123B.75 169.34and 
         123B.76. If the resident district's special education aid is insufficient to make the full 169.35adjustment, the remaining adjustment shall be made to other state aid due to the district.170.1    (b) Notwithstanding paragraph (a) and section 
         127A.47, subdivision 7, paragraphs 170.2(b) to (d), a charter school where more than 30 percent of enrolled students receive special 170.3education and related services, a site approved under section 
         125A.515, an intermediate 170.4district, a special education cooperative, or a school district that served as the applicant 170.5agency for a group of school districts for federal special education aids for fiscal year 170.62006 may apply to the commissioner for authority to charge the resident district an 170.7additional amount to recover any remaining unreimbursed costs of serving pupils with 170.8a disability. The application must include a description of the costs and the calculations 170.9used to determine the unreimbursed portion to be charged to the resident district. Amounts 170.10approved by the commissioner under this paragraph must be included in the tuition billings 170.11or aid adjustments under paragraph (a), or section 
         127A.47, subdivision 7, paragraphs 170.12(b) to (d), as applicable.170.13    (c) For purposes of this subdivision and section 
         127A.47, subdivision 7, paragraphs 170.14(d) and (e) paragraph (b), "general education revenue and referendum equalization aid" 170.15means the sum of the general education revenue according to section 
         126C.10, subdivision 170.161, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph 170.17(c), plus the referendum equalization aid according to section 
         126C.17, subdivision 7.170.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 170.19and later.170.20    Sec. 44. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is 170.21amended to read:170.22    Subdivision 1. Definitions. (a) For the purposes of this section and section 
         125A.79, 170.23the definitions in this subdivision apply.170.24    (b) "Basic revenue" has the meaning given it in section 
         126C.10, subdivision 2. 170.25For the purposes of computing basic revenue pursuant to this section, each child with a 170.26disability shall be counted as prescribed in section 
         126C.05, subdivision 1.170.27    (c) "Essential personnel" means teachers, cultural liaisons, related services, and 170.28support services staff providing services to students. Essential personnel may also include 170.29special education paraprofessionals or clericals providing support to teachers and students 170.30by preparing paperwork and making arrangements related to special education compliance 170.31requirements, including parent meetings and individualized education programs. Essential 170.32personnel does not include administrators and supervisors.170.33    (d) "Average daily membership" has the meaning given it in section 
         126C.05.171.1    (e) "Program growth factor" means 
         1.046 for fiscal years 2012 though through 2015, 171.21.0 for fiscal year 2016, 
         1.046 for fiscal year 2017, and the product of 
         1.046 and the 171.3program growth factor for the previous year for fiscal year 2018 and later.171.4(f) "Nonfederal special education expenditure" means all direct expenditures that 171.5are necessary and essential to meet the district's obligation to provide special instruction 171.6and services to children with a disability according to sections 
         124D.454, 
         125A.03 to 171.7125A.24
         , 
         125A.259 to 
         125A.48, and 
         125A.65 as submitted by the district and approved by 171.8the department under section 
         125A.75, subdivision 4, excluding expenditures:171.9(1) reimbursed with federal funds;171.10(2) reimbursed with other state aids under this chapter;171.11(3) for general education costs of serving students with a disability;171.12(4) for facilities;171.13(5) for pupil transportation; and171.14(6) for postemployment benefits.171.15(g) "Old formula special education expenditures" means expenditures eligible for 171.16revenue under Minnesota Statutes 2012, section 
         125A.76, subdivision 2.171.17    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy 171.18for the Blind, expenditures are limited to the salary and fringe benefits of one-to-one 171.19instructional and behavior management aides assigned to a child attending the academy, if 171.20the aides are required by the child's individualized education program.171.21(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 171.222014 and 
         2.27 percent for fiscal year 2015.171.23(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 171.24for fiscal year 2015.171.25(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 171.26for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education 171.27aid increase limit for the previous fiscal year and $40.171.28    Sec. 45. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, 171.29is amended to read:171.30    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's 171.31special education initial aid equals the sum of:171.32(1) the lesser least of 62 percent of the district's old formula special education 171.33expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 171.34percent of the district's nonfederal special education expenditures for the prior year, 172.1excluding pupil transportation expenditures, or 56 percent of the product of the sum of the 172.2following amounts, computed using prior fiscal year data, and the program growth factor:172.3(i) the product of the district's average daily membership served and the sum of:172.4(A) $450; plus172.5(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 172.6who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 172.7who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus172.8(C) .008 times the district's average daily membership served; plus172.9(ii) $10,400 times the December 1 child count for the primary disability areas of 172.10autism spectrum disorders, developmental delay, and severely multiply impaired; plus172.11(iii) $18,000 times the December 1 child count for the primary disability areas of 172.12deaf and hard-of-hearing and emotional or behavioral disorders; plus172.13(iv) $27,000 times the December 1 child count for the primary disability areas of 172.14developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 172.15physically impaired, visually impaired, and deafblind; plus172.16(2) the cost of providing transportation services for children with disabilities under 172.17section 
         123B.92, subdivision 1, paragraph (b), clause (4).172.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 172.19and later.172.20    Sec. 46. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, 172.21is amended to read:172.22    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 172.23subsidy reduction aid for a school district, not including a charter school, equals the 172.24lesser of (a) the product of the cross subsidy reduction aid limit and the district's average 172.25daily membership served or (b) the sum of the product of the cross subsidy reduction aid 172.26percentage, the district's average daily membership served, and the sum of:172.27(1) $450; plus172.28(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 172.29who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 172.30who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus172.31(3) .008 times the district's average daily membership served; plus the product of the 172.32cross subsidy aid percentage and the sum of:172.33(i) $10,100 times the December 1 child count for the primary disability areas of 172.34autism spectrum disorders, developmental delay, and severely multiply impaired; plus173.1(ii) $17,500 times the December 1 child count for the primary disability areas of 173.2deaf and hard-of-hearing and emotional or behavioral disorders; plus173.3(iii) $26,000 times the December 1 child count for the primary disability areas of 173.4developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 173.5physically impaired, visually impaired, and deafblind.173.6EFFECTIVE DATE.This section is effective the day following final enactment 173.7and applies to revenue for fiscal year 2014 and later.173.8    Sec. 47. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, 173.9is amended to read:173.10    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 173.11district's special education aid equals the sum of the district's special education initial aid 173.12under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and 173.13the district's excess cost aid under section 
         125A.79, subdivision 7.173.14(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 173.15the district's special education initial aid under subdivision 2a and the district's excess cost 173.16aid under section 
         125A.79, subdivision 5.173.17(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 173.18a school district must not exceed the sum of the special education aid the district would 173.19have received for fiscal year 2016 under Minnesota Statutes 2012, sections 
         125A.76 173.20and 
         125A.79, as adjusted according to Minnesota Statutes 2012, sections 
         125A.11 and 173.21127A.47, subdivision 7
         , and the product of the district's average daily membership served 173.22and the special education aid increase limit.173.23(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 173.24aid for a school district must not exceed the sum of: (i) the product of the district's average 173.25daily membership served and the special education aid increase limit and (ii) the product 173.26of the sum of the special education aid the district would have received for fiscal year 2016 173.27under Minnesota Statutes 2012, sections 
         125A.76 and 
         125A.79, as adjusted according 173.28to Minnesota Statutes 2012, sections 
         125A.11 and 
         127A.47, subdivision 7, the ratio of 173.29the district's average daily membership served for the current fiscal year to the district's 173.30average daily membership served for fiscal year 2016, and the program growth factor.173.31(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 173.32aid for a school district, not including a charter school, must not be less than the lesser of 173.33(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 173.34product of the sum of the special education aid the district would have received for fiscal 173.35year 2016 under Minnesota Statutes 2012, sections 
         125A.76 and 
         125A.79, as adjusted 174.1according to Minnesota Statutes 2012, sections 
         125A.11 and 
         127A.47, subdivision 7, the 174.2ratio of the district's adjusted daily membership for the current fiscal year to the district's 174.3average daily membership for fiscal year 2016, and the program growth factor.174.4EFFECTIVE DATE.This section is effective the day following final enactment 174.5and applies to revenue for fiscal year 2014 and later.174.6    Sec. 48. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is 174.7amended to read:174.8    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 174.9subdivision apply.174.10    (a) "Unreimbursed old formula special education expenditures" means:174.11    (1) old formula special education expenditures for the prior fiscal year; minus174.12    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section 174.13125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 174.14section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 174.15initial aid under section 125A.76, subdivision 2a; minus174.16(3) for fiscal year 2016 and later, the amount of general education revenue, excluding 174.17local optional revenue, plus local optional aid and referendum equalization aid for the 174.18prior fiscal year attributable to pupils receiving special instruction and services outside the 174.19regular classroom for more than 60 percent of the school day for the portion of time the 174.20pupils receive special instruction and services outside the regular classroom, excluding 174.21portions attributable to district and school administration, district support services, 174.22operations and maintenance, capital expenditures, and pupil transportation.174.23(b) "Unreimbursed nonfederal special education expenditures" means:174.24(1) nonfederal special education expenditures for the prior fiscal year; minus174.25(2) special education initial aid under section 
         125A.76, subdivision 2a; minus174.26(3) the amount of general education revenue and referendum equalization aid for the 174.27prior fiscal year attributable to pupils receiving special instruction and services outside the 174.28regular classroom for more than 60 percent of the school day for the portion of time the 174.29pupils receive special instruction and services outside of the regular classroom, excluding 174.30portions attributable to district and school administration, district support services, 174.31operations and maintenance, capital expenditures, and pupil transportation.174.32    (c) "General revenue" for a school district means the sum of the general education 174.33revenue according to section 
         126C.10, subdivision 1, excluding alternative teacher 174.34compensation revenue, minus transportation sparsity revenue minus, local optional 174.35revenue, and total operating capital revenue. "General revenue" for a charter school means 175.1the sum of the general education revenue according to section 
         124D.11, subdivision 1, and 175.2transportation revenue according to section 
         124D.11, subdivision 2, excluding alternative 175.3teacher compensation revenue, minus referendum equalization aid minus, transportation 175.4sparsity revenue minus, and operating capital revenue.175.5EFFECTIVE DATE.This section is effective the day following final enactment 175.6and applies to revenue for fiscal year 2014 and later.175.7    Sec. 49. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is 175.8amended to read:175.9    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial175.10 excess cost aid equals the greater of:175.11    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal 175.12special education expenditures and (ii) 7.0 percent of the district's general revenue;175.13    (2) 62 percent of the difference between (i) the district's unreimbursed old formula 175.14special education expenditures and (ii) 2.5 percent of the district's general revenue; or175.15    (3) zero.175.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 175.17and later.175.18    Sec. 50. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is 175.19amended to read:175.20    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive 175.21services under section 
         125A.76, subdivisions 1 and 2, and are placed in a care and 175.22treatment facility by court action in a state that does not have a reciprocity agreement with 175.23the commissioner under section 
         125A.155, the resident school district shall submit the 175.24balance receive special education out-of-state tuition aid equal to the amount of the tuition 175.25bills, minus (1) the general education revenue, excluding basic skills revenue and the local 175.26optional levy attributable to the pupil, calculated using the resident district's average 175.27general education revenue per adjusted pupil unit, and (2) the referendum equalization aid 175.28attributable to the pupil, calculated using the resident district's average general education 175.29revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special 175.30education contracted services initial revenueaid attributable to the pupil.175.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 175.32and later.176.1    Sec. 51. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, 176.2is amended to read:176.3    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning 176.4year program under section 
         124D.128, an area learning center or an alternative learning 176.5program approved by the commissioner under sections 
         123A.05 and 
         123A.06, or a 176.6contract alternative program under section 
         124D.68, subdivision 3, paragraph (d), or 176.7subdivision 4, for more than 1,020 hours in a school year for a secondary student, more 176.8than 935 hours in a school year for an elementary student, more than 850 hours in a school 176.9year for a kindergarten student without a disability in an all-day kindergarten program, 176.10or more than 425 hours in a school year for a half-day kindergarten student without a 176.11disability, that pupil may be counted as more than one pupil in average daily membership 176.12for purposes of section 
         126C.10, subdivision 2a. The amount in excess of one pupil must 176.13be determined by the ratio of the number of hours of instruction provided to that pupil in 176.14excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 176.15secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 176.16or the number of hours required for a full-time elementary pupil in the district to 935 for 176.17an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the 176.18number of hours required for a full-time kindergarten student without a disability in the 176.19district to 425 850 for a kindergarten student without a disability; and (iv) the greater of 176.20425 hours or the number of hours required for a half-time kindergarten student without a 176.21disability in the district to 425 for a half-day kindergarten student without a disability. 176.22Hours that occur after the close of the instructional year in June shall be attributable to 176.23the following fiscal year. A student in kindergarten or grades 1 through 12 must not be 176.24counted as more than 1.2 pupils in average daily membership under this subdivision.176.25(b)(i) To receive general education revenue for a pupil in an area learning center 176.26or alternative learning program that has an independent study component, a district 176.27must meet the requirements in this paragraph. The district must develop, for the pupil, 176.28a continual learning plan consistent with section 
         124D.128, subdivision 3. Each school 176.29district that has an area learning center or alternative learning program must reserve 176.30revenue in an amount equal to at least 90 percent of the district average general education 176.31revenue per pupil unit, minus an amount equal to the product of the formula allowance 176.32according to section 
         126C.10, subdivision 2, times .0466, calculated without basic skills 176.33and transportation sparsity revenue, times the number of pupil units generated by students 176.34attending an area learning center or alternative learning program. The amount of reserved 176.35revenue available under this subdivision may only be spent for program costs associated 176.36with the area learning center or alternative learning program. Basic skills revenue 177.1generated according to section 
         126C.10, subdivision 4, by pupils attending the eligible 177.2program must be allocated to the program.177.3(ii) General education revenue for a pupil in a state-approved alternative program 177.4without an independent study component must be prorated for a pupil participating for less 177.5than a full year, or its equivalent. The district must develop a continual learning plan for the 177.6pupil, consistent with section 
         124D.128, subdivision 3. Each school district that has an area 177.7learning center or alternative learning program must reserve revenue in an amount equal to 177.8at least 90 percent of the district average general education revenue per pupil unit, minus 177.9an amount equal to the product of the formula allowance according to section 
         126C.10, 177.10subdivision 2
         , times .0466, calculated without basic skills and transportation sparsity 177.11revenue, times the number of pupil units generated by students attending an area learning 177.12center or alternative learning program. The amount of reserved revenue available under this 177.13subdivision may only be spent for program costs associated with the area learning center or 177.14alternative learning program. Basic skills revenue generated according to section 
         126C.10, 177.15subdivision 4
         , by pupils attending the eligible program must be allocated to the program.177.16(iii) General education revenue for a pupil in a state-approved alternative program 177.17that has an independent study component must be paid for each hour of teacher contact 177.18time and each hour of independent study time completed toward a credit or graduation 177.19standards necessary for graduation. Average daily membership for a pupil shall equal the 177.20number of hours of teacher contact time and independent study time divided by 1,020.177.21(iv) For a state-approved alternative program having an independent study 177.22component, the commissioner shall require a description of the courses in the program, the 177.23kinds of independent study involved, the expected learning outcomes of the courses, and 177.24the means of measuring student performance against the expected outcomes.177.25    Sec. 52. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, 177.26is amended to read:177.27    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for 177.28fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal 177.29cost pupil units of the district for each pupil in average daily membership in excess of 1.0 177.30and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended 177.31time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum 177.32of the adjusted pupil units of the district for each pupil in average daily membership in 177.33excess of 1.0 and less than 1.2 according to section 
         126C.05, subdivision 8.178.1(b) A school district's extended time revenue may be used for extended day 178.2programs, extended week programs, summer school, and other programming authorized 178.3under the learning year program.178.4EFFECTIVE DATE.This section is effective the day following final enactment 178.5and applies to revenue for fiscal year 2014 and later.178.6    Sec. 53. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d, 178.7is amended to read:178.8    Subd. 2d. Declining enrollment revenue.(a) A school district's declining 178.9enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the 178.10formula allowance for that year and (2) the difference between the adjusted pupil units for 178.11the preceding year and the adjusted pupil units for the current year.178.12(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil 178.13enrolled at the Crosswinds school shall not generate declining enrollment revenue for the 178.14district or charter school in which the pupil was last counted in average daily membership.178.15    Sec. 54. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 13a, 178.16is amended to read:178.17    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal 178.18year 2015 and later, a district may levy an amount not more than the product of its 178.19operating capital revenue for the fiscal year times the lesser of one or the ratio of its 178.20adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 178.21equalizing factor. The operating capital equalizing factor equals $14,500 $14,500 for 178.22fiscal year 2015, $15,315 for fiscal year 2016, and $15,043 for fiscal year 2017 and later.178.23    Sec. 55. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, 178.24is amended to read:178.25    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:178.26    (1) the school district's adjusted pupil unit amount of basic revenue, transition 178.27revenue, and referendum revenue is less than the value of the school district at or 178.28immediately above the 95th percentile of school districts in its equity region for those 178.29revenue categories; and178.30    (2) the school district's administrative offices are not located in a city of the first 178.31class on July 1, 1999.178.32    (b) Equity revenue for a qualifying district that receives referendum revenue under 178.33section 
         126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 179.1units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 179.2equity index computed under subdivision 27.179.3    (c) Equity revenue for a qualifying district that does not receive referendum revenue 179.4under section 
         126C.17, subdivision 4, equals the product of the district's adjusted pupil 179.5units for that year times $14.179.6    (d) A school district's equity revenue is increased by the greater of zero or an amount 179.7equal to the district's resident adjusted pupil units times the difference between ten percent 179.8of the statewide average amount of referendum revenue per resident adjusted pupil unit for 179.9that year and the district's referendum revenue per resident adjusted pupil unit. A school 179.10district's revenue under this paragraph must not exceed $100,000 for that year.179.11    (e) A school district's equity revenue for a school district located in the metro equity 179.12region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 
         1.25.179.13    (f) A school district's additional equity revenue equals $50 times its adjusted pupil 179.14units.179.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 179.16and later.179.17    Sec. 56. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:179.18    Subd. 25. Regional equity gap. The regional equity gap equals the difference 179.19between the value of the school district at or immediately above the fifth percentile of 179.20adjusted general revenue per adjusted marginal cost pupil unit and the value of the school 179.21district at or immediately above the 95th percentile of adjusted general revenue per 179.22adjusted marginal cost pupil unit.179.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 179.24and later.179.25    Sec. 57. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:179.26    Subd. 26. District equity gap. A district's equity gap equals the greater of zero 179.27or the difference between the district's adjusted general revenue and the value of the 179.28school district at or immediately above the regional 95th percentile of adjusted general 179.29revenue per adjusted marginal cost pupil unit.179.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 179.31and later.179.32    Sec. 58. Minnesota Statutes 2012, section 126C.10, subdivision 28, is amended to read:180.1    Subd. 28. Equity region. For the purposes of computing equity revenue under 180.2subdivision 24, a district with its administrative office located in Anoka, Carver, Dakota, 180.3Hennepin, Ramsey, Scott, or Washington County on January 1, 2012, with any of its area 180.4located within the seven-county metropolitan area is part of the metro equity region. All 180.5other districts are part of the rural equity region.180.6EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.180.7    Sec. 59. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, 180.8is amended to read:180.9    Subd. 31. Transition revenue. (a) A district's transition allowance equals the 180.10sum of the transition revenue the district would have received for fiscal year 2015 under 180.11Minnesota Statutes 2012, section 
         126C.10, subdivisions 31, 31a, and 31c, and the greater 180.12of zero or the difference between:180.13    (1) the sum of:180.14    (i) the general education revenue the district would have received for fiscal year 180.152015 according to Minnesota Statutes 2012, section 
         126C.10;180.16(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 180.17Statutes 2012, section 
         124D.86;180.18(iii) the pension adjustment the district would have received for fiscal year 2015 180.19under Minnesota Statutes 2012, section 
         127A.50;180.20(iv) the special education aid the district would have received for fiscal year 2015 180.21under Minnesota Statutes 2012, section 
         125A.76; and180.22(v) the special education excess cost aid the district would have received for fiscal 180.23year 2015 under Minnesota Statutes 2012, section 
         125A.79; and180.24(2) the sum of the district's:180.25(i) general education revenue for fiscal year 2015 excluding transition revenue 180.26under this section;180.27(ii) achievement and integration revenue for fiscal year 2015 under section 180.28124D.862
         ; and180.29(iii) special education aid for fiscal year 2015 under section 
         125A.76; and180.30(iv) alternative teacher compensation revenue for fiscal year 2015 under section 180.31122A.415,180.32divided by the number of adjusted pupil units for fiscal year 2015.180.33    (b) A district's transition revenue for fiscal year 2015 and later equals the product of 180.34the district's transition allowance times the district's adjusted pupil units.181.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 181.2and later.181.3    Sec. 60. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is 181.4amended to read:181.5    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,181.6 A district's referendum equalization levy equals the sum of the first tier referendum 181.7equalization levy, the second tier referendum equalization levy, and the third tier 181.8referendum equalization levy.181.9(b) A district's first tier referendum equalization levy equals the district's first tier 181.10referendum equalization revenue times the lesser of one or the ratio of the district's 181.11referendum market value per resident pupil unit to $880,000.181.12(c) A district's second tier referendum equalization levy equals the district's second 181.13tier referendum equalization revenue times the lesser of one or the ratio of the district's 181.14referendum market value per resident pupil unit to $510,000.181.15(d) A district's third tier referendum equalization levy equals the district's third 181.16tier referendum equalization revenue times the lesser of one or the ratio of the district's 181.17referendum market value per resident pupil unit to $290,000.181.18    Sec. 61. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, 181.19is amended to read:181.20    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum 181.21of a district's referendum equalization aid and local optional aid under section 126C.10, 181.22subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum 181.23equalization aid the district would have received for fiscal year 2015 under Minnesota 181.24Statutes 2012, section 
         126C.17, subdivision 7, and the adjustment the district would have 181.25received under Minnesota Statutes 2012, section 
         127A.47, subdivision 7, paragraphs 181.26(a), (b), and (c).181.27(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and local 181.28optional aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, for a 181.29district qualifying for additional aid under paragraph (a) for fiscal year 2015, must not 181.30be less than the product of (1) the district's referendum equalization aid for fiscal year 181.312015, times (2) the lesser of one or the ratio of the district's referendum revenue for that 181.32school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser 181.33of one or the ratio of the district's referendum market value used for fiscal year 2015 182.1referendum equalization calculations to the district's referendum market value used for 182.2that year's referendum equalization calculations.182.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 182.4and later.182.5    Sec. 62. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is 182.6amended to read:182.7    Subd. 9. Referendum revenue. (a) The revenue authorized by section 
         126C.10, 182.8subdivision 1
         , may be increased in the amount approved by the voters of the district 182.9at a referendum called for the purpose. The referendum may be called by the board. 182.10The referendum must be conducted one or two calendar years before the increased levy 182.11authority, if approved, first becomes payable. Only one election to approve an increase 182.12may be held in a calendar year. Unless the referendum is conducted by mail under 182.13subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 182.14first Monday in November. The ballot must state the maximum amount of the increased 182.15revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, 182.16of increased revenue per adjusted pupil unit that differs from year to year over the number 182.17of years for which the increased revenue is authorized or may state that the amount shall 182.18increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 182.19annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 182.20state that existing referendum levy authority is expiring. In this case, the ballot may also 182.21compare the proposed levy authority to the existing expiring levy authority, and express 182.22the proposed increase as the amount, if any, over the expiring referendum levy authority. 182.23The ballot must designate the specific number of years, not to exceed ten, for which the 182.24referendum authorization applies. The ballot, including a ballot on the question to revoke 182.25or reduce the increased revenue amount under paragraph (c), must abbreviate the term 182.26"per adjusted pupil unit" as "per pupil." The notice required under section 
         275.60 may 182.27be modified to read, in cases of renewing existing levies at the same amount per pupil 182.28as in the previous year:182.29"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 182.30TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 182.31SCHEDULED TO EXPIRE."182.32    The ballot may contain a textual portion with the information required in this 182.33subdivision and a question stating substantially the following:182.34    "Shall the increase in the revenue proposed by (petition to) the board of ........., 182.35School District No. .., be approved?"183.1    If approved, an amount equal to the approved revenue per adjusted pupil unit times 183.2the adjusted pupil units for the school year beginning in the year after the levy is certified 183.3shall be authorized for certification for the number of years approved, if applicable, or 183.4until revoked or reduced by the voters of the district at a subsequent referendum.183.5    (b) The board must prepare and deliver by first class mail at least 15 days but no more 183.6than 30 days before the day of the referendum to each taxpayer a notice of the referendum 183.7and the proposed revenue increase. The board need not mail more than one notice to any 183.8taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 183.9those shown to be owners on the records of the county auditor or, in any county where 183.10tax statements are mailed by the county treasurer, on the records of the county treasurer. 183.11Every property owner whose name does not appear on the records of the county auditor 183.12or the county treasurer is deemed to have waived this mailed notice unless the owner 183.13has requested in writing that the county auditor or county treasurer, as the case may be, 183.14include the name on the records for this purpose. The notice must project the anticipated 183.15amount of tax increase in annual dollars for typical residential homesteads, agricultural 183.16homesteads, apartments, and commercial-industrial property within the school district.183.17    The notice for a referendum may state that an existing referendum levy is expiring 183.18and project the anticipated amount of increase over the existing referendum levy in 183.19the first year, if any, in annual dollars for typical residential homesteads, agricultural 183.20homesteads, apartments, and commercial-industrial property within the district.183.21    The notice must include the following statement: "Passage of this referendum will 183.22result in an increase in your property taxes." However, in cases of renewing existing levies, 183.23the notice may include the following statement: "Passage of this referendum extends an 183.24existing operating referendum at the same amount per pupil as in the previous year."183.25    (c) A referendum on the question of revoking or reducing the increased revenue 183.26amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 183.27revoke or reduce the revenue amount must state the amount per resident marginal cost183.28 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved 183.29by the voters of the district pursuant to paragraph (a) must be available to the school 183.30district at least once before it is subject to a referendum on its revocation or reduction for 183.31subsequent years. Only one revocation or reduction referendum may be held to revoke or 183.32reduce referendum revenue for any specific year and for years thereafter.183.33    (d) The approval of 50 percent plus one of those voting on the question is required to 183.34pass a referendum authorized by this subdivision.183.35    (e) At least 15 days before the day of the referendum, the district must submit a 183.36copy of the notice required under paragraph (b) to the commissioner and to the county 184.1auditor of each county in which the district is located. Within 15 days after the results 184.2of the referendum have been certified by the board, or in the case of a recount, the 184.3certification of the results of the recount by the canvassing board, the district must notify 184.4the commissioner of the results of the referendum.184.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 184.6and later.184.7    Sec. 63. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, 184.8is amended to read:184.9    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision 184.109, a school district may convert up to $300 per adjusted pupil unit of referendum authority 184.11from voter approved to board approved by a board vote. A district with less than $300 per 184.12adjusted pupil unit of referendum authority after the local optional revenue subtraction 184.13under subdivision 1 may authorize new referendum authority up to the difference between 184.14$300 per adjusted pupil unit and the district's referendum authority. The board may 184.15authorize this levy for up to five years and may subsequently reauthorize that authority 184.16in increments of up to five years.184.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 184.18and later.184.19    Sec. 64. Minnesota Statutes 2013 Supplement, section 126C.40, subdivision 1, is 184.20amended to read:184.21    Subdivision 1. To lease building or land. (a) When an independent or a special 184.22school district or a group of independent or special school districts finds it economically 184.23advantageous to rent or lease a building or land for any instructional purposes or for 184.24school storage or furniture repair, and it determines that the operating capital revenue 184.25authorized under section 
         126C.10, subdivision 13, is insufficient for this purpose, it may 184.26apply to the commissioner for permission to make an additional capital expenditure levy 184.27for this purpose. An application for permission to levy under this subdivision must contain 184.28financial justification for the proposed levy, the terms and conditions of the proposed 184.29lease, and a description of the space to be leased and its proposed use.184.30    (b) The criteria for approval of applications to levy under this subdivision must 184.31include: the reasonableness of the price, the appropriateness of the space to the proposed 184.32activity, the feasibility of transporting pupils to the leased building or land, conformity 184.33of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 185.1the proposed lease to the space needs and the financial condition of the district. The 185.2commissioner must not authorize a levy under this subdivision in an amount greater than 185.3the cost to the district of renting or leasing a building or land for approved purposes. 185.4The proceeds of this levy must not be used for custodial or other maintenance services. 185.5A district may not levy under this subdivision for the purpose of leasing or renting a 185.6district-owned building or site to itself.185.7    (c) For agreements finalized after July 1, 1997, a district may not levy under this 185.8subdivision for the purpose of leasing: (1) a newly constructed building used primarily 185.9for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 185.10building addition or additions used primarily for regular kindergarten, elementary, or 185.11secondary instruction that contains more than 20 percent of the square footage of the 185.12previously existing building.185.13    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 185.14purpose of leasing or renting a district-owned building or site to itself only if the amount 185.15is needed by the district to make payments required by a lease purchase agreement, 185.16installment purchase agreement, or other deferred payments agreement authorized by law, 185.17and the levy meets the requirements of paragraph (c). A levy authorized for a district by 185.18the commissioner under this paragraph may be in the amount needed by the district to 185.19make payments required by a lease purchase agreement, installment purchase agreement, 185.20or other deferred payments agreement authorized by law, provided that any agreement 185.21include a provision giving the school districts the right to terminate the agreement 185.22annually without penalty.185.23    (e) The total levy under this subdivision for a district for any year must not exceed 185.24$162 $212 times the adjusted pupil units for the fiscal year to which the levy is attributable.185.25    (f) For agreements for which a review and comment have been submitted to the 185.26Department of Education after April 1, 1998, the term "instructional purpose" as used in 185.27this subdivision excludes expenditures on stadiums.185.28    (g) The commissioner of education may authorize a school district to exceed the 185.29limit in paragraph (e) if the school district petitions the commissioner for approval. The 185.30commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 185.31for not more than five years if the district meets the following criteria:185.32    (1) the school district has been experiencing pupil enrollment growth in the 185.33preceding five years;185.34    (2) the purpose of the increased levy is in the long-term public interest;185.35    (3) the purpose of the increased levy promotes colocation of government services; and186.1    (4) the purpose of the increased levy is in the long-term interest of the district by 186.2avoiding over construction of school facilities.186.3    (h) A school district that is a member of an intermediate school district may include 186.4in its authority under this section the costs associated with leases of administrative and 186.5classroom space for intermediate school district programs. This authority must not exceed 186.6$46 $65 times the adjusted pupil units of the member districts. This authority is in addition 186.7to any other authority authorized under this section.186.8    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 186.92012 to 2023, a district that is a member of the "Technology and Information Education 186.10Systems" data processing joint board, that finds it economically advantageous to enter into 186.11a lease agreement to finance improvements to a building and land for a group of school 186.12districts or special school districts for staff development purposes, may levy for its portion 186.13of lease costs attributed to the district within the total levy limit in paragraph (e). The total 186.14levy authority under this paragraph shall not exceed $632,000.186.15(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 186.16purpose of leasing administrative space if the district can demonstrate to the satisfaction of 186.17the commissioner that the lease cost for the administrative space is no greater than the 186.18lease cost for instructional space that the district would otherwise lease. The commissioner 186.19must deny this levy authority unless the district passes a resolution stating its intent to 186.20lease instructional space under this section if the commissioner does not grant authority 186.21under this paragraph. The resolution must also certify that the lease cost for administrative 186.22space under this paragraph is no greater than the lease cost for the district's proposed 186.23instructional lease.186.24EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.186.25    Sec. 65. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:186.26126C.44 SAFE SCHOOLS LEVY.186.27    (a) Each district may make a levy on all taxable property located within the district 186.28for the purposes specified in this section. The maximum amount which may be levied for 186.29all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil 186.30units for the school year. The proceeds of the levy must be reserved and used for directly 186.31funding the following purposes or for reimbursing the cities and counties who contract 186.32with the district for the following purposes:186.33    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of 186.34peace officers and sheriffs for liaison in services in the district's schools;187.1    (2) to pay the costs for a drug abuse prevention program as defined in section 187.2609.101, subdivision 3
         , paragraph (e), in the elementary schools;187.3    (3) to pay the costs for a gang resistance education training curriculum in the 187.4district's schools;187.5    (4) to pay the costs for security in the district's schools and on school property;187.6    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 187.7voluntary opt-in suicide prevention tools, and violence prevention measures taken by 187.8the school district;187.9    (6) to pay costs for licensed school counselors, licensed school nurses, licensed 187.10school social workers, licensed school psychologists, and licensed alcohol and chemical 187.11dependency counselors to help provide early responses to problems;187.12    (7) to pay for facility security enhancements including laminated glass, public 187.13announcement systems, emergency communications devices, and equipment and facility 187.14modifications related to violence prevention and facility security;187.15    (8) to pay for costs associated with improving the school climate; or187.16    (9) to pay costs for colocating and collaborating with mental health professionals 187.17who are not district employees or contractors.187.18    (b) For expenditures under paragraph (a), clause (1), the district must initially 187.19attempt to contract for services to be provided by peace officers or sheriffs with the 187.20police department of each city or the sheriff's department of the county within the district 187.21containing the school receiving the services. If a local police department or a county 187.22sheriff's department does not wish to provide the necessary services, the district may 187.23contract for these services with any other police or sheriff's department located entirely or 187.24partially within the school district's boundaries.187.25    (c) A school district that is a member of an intermediate school district may 187.26include in its authority under this section the costs associated with safe schools activities 187.27authorized under paragraph (a) for intermediate school district programs. This authority 187.28must not exceed $10 $15  times the adjusted marginal cost pupil units of the member 187.29districts. This authority is in addition to any other authority authorized under this section. 187.30Revenue raised under this paragraph must be transferred to the intermediate school district.187.31EFFECTIVE DATE.This section is effective for taxes payable in fiscal year 2015 187.32and later.187.33    Sec. 66. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is 187.34amended to read:188.1    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies 188.2pursuant to subdivision 1 must be made prior to the reductions in clause (2).188.3(2) Notwithstanding any other law to the contrary, districts that have revenue 188.4pursuant to sections 
         298.018; 
         298.225; 
         298.24 to 
         298.28, except an amount distributed 188.5under sections 
         298.26; 
         298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 
         298.34 188.6to 
         298.39; 
         298.391 to 
         298.396; 
         298.405; 
         477A.15; and any law imposing a tax upon 188.7severed mineral values must reduce the levies authorized by this chapter and chapters 188.8120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the 188.9previous year's revenue specified under this clause and the amount attributable to the same 188.10production year distributed to the cities and townships within the school district under 188.11section 
         298.28, subdivision 2, paragraph (c).188.12(3) The amount of any voter approved referendum, facilities down payment, and 188.13debt levies shall not be reduced by more than 50 percent under this subdivision, except that 188.14payments under sections 298.28, subdivision 7a, and 298.292, subdivision 2, clause (6), 188.15may reduce the debt service levy by more than 50 percent. In administering this paragraph, 188.16the commissioner shall first reduce the nonvoter approved levies of a district; then, if any 188.17payments, severed mineral value tax revenue or recognized revenue under paragraph (2) 188.18remains, the commissioner shall reduce any voter approved referendum levies authorized 188.19under section 
         126C.17; then, if any payments, severed mineral value tax revenue or 188.20recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter 188.21approved facilities down payment levies authorized under section 
         123B.63 and then, if 188.22any payments, severed mineral value tax revenue or recognized revenue under paragraph 188.23(2) remains, the commissioner shall reduce any voter approved debt levies.188.24(4) Before computing the reduction pursuant to this subdivision of the health and 188.25safety levy authorized by sections 
         123B.57 and 
         126C.40, subdivision 5, the commissioner 188.26shall ascertain from each affected school district the amount it proposes to levy under 188.27each section or subdivision. The reduction shall be computed on the basis of the amount 188.28so ascertained.188.29(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 188.30limitation in paragraph (3), an amount equal to the excess must be distributed from the 188.31school district's distribution under sections 
         298.225, 
         298.28, and 
         477A.15 in the following 188.32year to the cities and townships within the school district in the proportion that their 188.33taxable net tax capacity within the school district bears to the taxable net tax capacity of 188.34the school district for property taxes payable in the year prior to distribution. No city or 188.35township shall receive a distribution greater than its levy for taxes payable in the year prior 188.36to distribution. The commissioner of revenue shall certify the distributions of cities and 189.1towns under this paragraph to the county auditor by September 30 of the year preceding 189.2distribution. The county auditor shall reduce the proposed and final levies of cities and 189.3towns receiving distributions by the amount of their distribution. Distributions to the cities 189.4and towns shall be made at the times provided under section 
         298.27.189.5    Sec. 67. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:189.6    Subd. 2. Definitions. (a) "Other district receipts" means payments by county 189.7treasurers pursuant to section 
         276.10, apportionments from the school endowment fund 189.8pursuant to section 
         127A.33, apportionments by the county auditor pursuant to section 189.9127A.34, subdivision 2
         , and payments to school districts by the commissioner of revenue 189.10pursuant to chapter 298.189.11(b) "Cumulative amount guaranteed" means the product of189.12(1) the cumulative disbursement percentage shown in subdivision 3; times189.13(2) the sum of189.14(i) the current year aid payment percentage of the estimated aid and credit 189.15entitlements paid according to subdivision 13; plus189.16(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus189.17(iii) the other district receipts.189.18(c) "Payment date" means the date on which state payments to districts are made 189.19by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 189.20or a weekday which is a legal holiday, the payment shall be made on the immediately 189.21preceding business day. The commissioner may make payments on dates other than 189.22those listed in subdivision 3, but only for portions of payments from any preceding 189.23payment dates which could not be processed by the electronic funds transfer method due 189.24to documented extenuating circumstances.189.25(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 189.26fiscal year 2011, and 60 in fiscal years 2012 and later 90.189.27    Sec. 68. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is 189.28amended to read:189.29    Subd. 7. Alternative attendance programs. (a) The general education aid and 189.30special education aid for districts must be adjusted for each pupil attending a nonresident 189.31district under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.08, and 
         124D.68. The 189.32adjustments must be made according to this subdivision.189.33    (b) For purposes of this subdivision, the "unreimbursed cost of providing special 189.34education and services" means the difference between: (1) the actual cost of providing 190.1special instruction and services, including special transportation and unreimbursed 190.2building lease and debt service costs for facilities used primarily for special education, for 190.3a pupil with a disability, as defined in section 
         125A.02, or a pupil, as defined in section 190.4125A.51
         , who is enrolled in a program listed in this subdivision, minus (2) if the pupil 190.5receives special instruction and services outside the regular classroom for more than 190.660 percent of the school day, the amount of general education revenue and referendum 190.7equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable 190.8to that pupil for the portion of time the pupil receives special instruction and services 190.9outside of the regular classroom, excluding portions attributable to district and school 190.10administration, district support services, operations and maintenance, capital expenditures, 190.11and pupil transportation, minus (3) special education aid under section 
         125A.76 190.12attributable to that pupil, that is received by the district providing special instruction and 190.13services. For purposes of this paragraph, general education revenue and referendum 190.14equalization aid attributable to a pupil must be calculated using the serving district's 190.15average general education revenue and referendum equalization aid per adjusted pupil unit.190.16(c) For fiscal year 2015 and later, special education aid paid to a resident district 190.17must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 190.18special education and services.190.19(d) Notwithstanding paragraph (c), special education aid paid to a resident district 190.20must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 190.21education and services provided to students at an intermediate district, cooperative, or 190.22charter school where the percent of students eligible for special education services is at 190.23least 70 percent of the charter school's total enrollment.190.24    (e) Special education aid paid to the district or cooperative providing special 190.25instruction and services for the pupil, or to the fiscal agent district for a cooperative, 190.26must be increased by the amount of the reduction in the aid paid to the resident district 190.27under paragraphs (c) and (d). If the resident district's special education aid is insufficient 190.28to make the full adjustment, the remaining adjustment shall be made to other state aids 190.29due to the district.190.30    (f) An area learning center operated by a service cooperative, intermediate district, 190.31education district, or a joint powers cooperative may elect through the action of the 190.32constituent boards to charge the resident district tuition for pupils rather than to have the 190.33general education revenue paid to a fiscal agent school district. Except as provided in 190.34paragraph (e), the district of residence must pay tuition equal to at least between 90 and 100 190.35percent of the district average general education revenue per pupil unit minus an amount 190.36equal to the product of the formula allowance according to section 
         126C.10, subdivision 191.12
         , times .0466, calculated without compensatory revenue and transportation sparsity 191.2revenue, times the number of pupil units for pupils attending the area learning center.191.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 191.4and later.191.5    Sec. 69. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:191.6    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 
         270C.86, 191.7375.192
         , or otherwise, the net tax capacity or referendum market value of any district for 191.8any taxable year is changed after the taxes for that year have been spread by the county 191.9auditor and the local tax rate as determined by the county auditor based upon the original 191.10net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 191.11prior to February 1 of each year, certify to the commissioner of education the amount of 191.12any resulting net revenue loss that accrued to the district during the preceding year. Each 191.13year, the commissioner shall pay an abatement adjustment to the district in an amount 191.14calculated according to the provisions of this subdivision. This amount shall be deducted 191.15from the amount of the levy authorized by section 
         126C.46. The amount of the abatement 191.16adjustment must be the product of:191.17    (1) the net revenue loss as certified by the county auditor, times191.18    (2) the ratio of:191.19    (i) the sum of the amounts of the district's certified levy in the third preceding year 191.20according to the following:191.21    (A) section 
         123B.57, if the district received health and safety aid according to that 191.22section for the second preceding year;191.23    (B) section 
         124D.20, if the district received aid for community education programs 191.24according to that section for the second preceding year;191.25    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 191.26education aid according to section 
         124D.135 for the second preceding year;191.27    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 191.28aid according to that section for the second preceding year;191.29    (E) section 
         126C.10, subdivision 13a, if the district received operating capital aid 191.30according to section 
         126C.10, subdivision 13b, in the second preceding year;191.31    (F) section 
         126C.10, subdivision 29, if the district received equity aid according to 191.32section 
         126C.10, subdivision 30, in the second preceding year;191.33    (G) section 
         126C.10, subdivision 32, if the district received transition aid according 191.34to section 
         126C.10, subdivision 33, in the second preceding year;192.1    (H) section 
         123B.53, subdivision 5, if the district received debt service equalization 192.2aid according to section 
         123B.53, subdivision 6, in the second preceding year;192.3    (I) section 123B.535, subdivision 4, if the district received natural disaster debt 192.4service equalization aid according to section 123B.535, subdivision 5, in the second 192.5preceding year;192.6    (I) (J) section 
         124D.22, subdivision 3, if the district received school-age care aid 192.7according to section 
         124D.22, subdivision 4, in the second preceding year;192.8    (J) (K) section 
         123B.591, subdivision 3, if the district received deferred maintenance 192.9aid according to section 
         123B.591, subdivision 4, in the second preceding year; and192.10    (K) (L) section 
         126C.10, subdivision 35, if the district received alternative teacher 192.11compensation equalization aid according to section 
         126C.10, subdivision 36, paragraph 192.12(a), in the second preceding year; to192.13    (ii) the total amount of the district's certified levy in the third preceding December, 192.14plus or minus auditor's adjustments.192.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 192.16and later.192.17    Sec. 70. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:192.18    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a 192.19district pursuant to sections 
         469.176, subdivision 2, and 
         469.177, subdivision 9, or upon 192.20decertification of a tax increment district, the school district's aid and levy limitations 192.21must be adjusted for the fiscal year in which the excess tax increment is paid under the 192.22provisions of this subdivision.192.23    (b) An amount must be subtracted from the district's aid for the current fiscal year 192.24equal to the product of:192.25    (1) the amount of the payment of excess tax increment to the district, times192.26    (2) the ratio of:192.27    (i) the sum of the amounts of the district's certified levy for the fiscal year in which 192.28the excess tax increment is paid according to the following:192.29    (A) section 
         123B.57, if the district received health and safety aid according to that 192.30section for the second preceding year;192.31    (B) section 
         124D.20, if the district received aid for community education programs 192.32according to that section for the second preceding year;192.33    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 192.34education aid according to section 
         124D.135 for the second preceding year;193.1    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 193.2aid according to that section for the second preceding year;193.3    (E) section 
         126C.10, subdivision 13a, if the district received operating capital aid 193.4according to section 
         126C.10, subdivision 13b, in the second preceding year;193.5    (F) section 
         126C.10, subdivision 29, if the district received equity aid according to 193.6section 
         126C.10, subdivision 30, in the second preceding year;193.7    (G) section 
         126C.10, subdivision 32, if the district received transition aid according 193.8to section 
         126C.10, subdivision 33, in the second preceding year;193.9    (H) section 
         123B.53, subdivision 5, if the district received debt service equalization 193.10aid according to section 
         123B.53, subdivision 6, in the second preceding year;193.11    (I) section 123B.535, subdivision 4, if the district received natural disaster debt 193.12service equalization aid according to section 123B.535, subdivision 5, in the second 193.13preceding year;193.14    (I) (J) section 
         124D.22, subdivision 3, if the district received school-age care aid 193.15according to section 
         124D.22, subdivision 4, in the second preceding year;193.16    (J) (K) section 
         123B.591, subdivision 3, if the district received deferred maintenance 193.17aid according to section 
         123B.591, subdivision 4, in the second preceding year; and193.18    (K) (L) section 
         126C.10, subdivision 35, if the district received alternative teacher 193.19compensation equalization aid according to section 
         126C.10, subdivision 36, paragraph 193.20(a), in the second preceding year; to193.21    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus 193.22auditor's adjustments.193.23    (c) An amount must be subtracted from the school district's levy limitation for the 193.24next levy certified equal to the difference between:193.25    (1) the amount of the distribution of excess increment; and193.26    (2) the amount subtracted from aid pursuant to clause (a).193.27    If the aid and levy reductions required by this subdivision cannot be made to the aid 193.28for the fiscal year specified or to the levy specified, the reductions must be made from 193.29aid for subsequent fiscal years, and from subsequent levies. The school district must use 193.30the payment of excess tax increment to replace the aid and levy revenue reduced under 193.31this subdivision.193.32    (d) This subdivision applies only to the total amount of excess increments received 193.33by a district for a calendar year that exceeds $25,000.193.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 193.35and later.194.1    Sec. 71. Minnesota Statutes 2013 Supplement, section 127A.70, subdivision 2, is 194.2amended to read:194.3    Subd. 2. Powers and duties; report. (a) The partnership shall develop 194.4recommendations to the governor and the legislature designed to maximize the achievement 194.5of all P-20 students while promoting the efficient use of state resources, thereby helping 194.6the state realize the maximum value for its investment. These recommendations may 194.7include, but are not limited to, strategies, policies, or other actions focused on:194.8    (1) improving the quality of and access to education at all points from preschool 194.9through graduate education;194.10    (2) improving preparation for, and transitions to, postsecondary education and 194.11work; and194.12    (3) ensuring educator quality by creating rigorous standards for teacher recruitment, 194.13teacher preparation, induction and mentoring of beginning teachers, and continuous 194.14professional development for career teachers; and194.15    (4) realigning the governance and administrative structures of early education, 194.16kindergarten through grade 12, and postsecondary systems in Minnesota.194.17    (b) Under the direction of the P-20 Education Partnership Statewide Longitudinal 194.18Education Data System Governance Committee, the Office of Higher Education and the 194.19Departments of Education and Employment and Economic Development shall improve 194.20and expand the Statewide Longitudinal Education Data System (SLEDS) to provide 194.21policymakers, education and workforce leaders, researchers, and members of the public 194.22with data, research, and reports to:194.23(1) expand reporting on students' educational outcomes;194.24(2) evaluate the effectiveness of educational and workforce programs; and194.25(3) evaluate the relationship between education and workforce outcomes.194.26To the extent possible under federal and state law, research and reports should be 194.27accessible to the public on the Internet, and disaggregated by demographic characteristics, 194.28organization or organization characteristics, and geography.194.29It is the intent of the legislature that the Statewide Longitudinal Education Data 194.30System inform public policy and decision-making. The SLEDS governance committee, 194.31with assistance from staff of the Office of Higher Education, the Department of Education, 194.32and the Department of Employment and Economic Development, shall respond to 194.33legislative committee and agency requests on topics utilizing data made available through 194.34the Statewide Longitudinal Education Data System as resources permit. Any analysis of 194.35or report on the data must contain only summary data.195.1    (c) By January 15 of each year, the partnership shall submit a report to the governor 195.2and to the chairs and ranking minority members of the legislative committees and 195.3divisions with jurisdiction over P-20 education policy and finance that summarizes the 195.4partnership's progress in meeting its goals and identifies the need for any draft legislation 195.5when necessary to further the goals of the partnership to maximize student achievement 195.6while promoting efficient use of resources.195.7    Sec. 72. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:195.8    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for 195.9the care, management, and control of the Perpich Center for Arts Education and any other 195.10school authorized in this chapter, and all its their real and personal property. The powers 195.11shall include, but are not limited to, those listed in this subdivision.195.12(b) The board may employ and discharge necessary employees, and contract for 195.13other services to ensure the efficient operation of the Center for Arts Education and any 195.14other school authorized in this chapter.195.15(c) The board may receive and award grants. The board may establish a charitable 195.16foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for 195.17educational purposes and hold, manage, invest, and dispose of them and the proceeds 195.18and income of them according to the terms and conditions of the gift, grant, bequest, or 195.19devise and its acceptance. The board must adopt internal procedures to administer and 195.20monitor aids and grants.195.21(d) The board may establish or coordinate evening, continuing education, extension, 195.22and summer programs for teachers and pupils.195.23(e) The board may identify pupils who have artistic talent, either demonstrated or 195.24potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more 195.25than one art form.195.26(f) The board must educate pupils with artistic talent by providing:195.27(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th 195.28grades. The total number of pupils accepted under this clause and clause (2) shall not 195.29exceed 310;195.30(2) additional instruction to pupils for a 13th grade. Pupils eligible for this 195.31instruction are those enrolled in 12th grade who need extra instruction and who apply 195.32to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes 195.33established by the board;195.34(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;195.35(4) summer arts institutes for pupils in grades 9 to 12;196.1(5) artist mentor and extension programs in regional sites; and196.2(6) teacher education programs for indirect curriculum delivery.196.3(g) The board may determine the location for the Perpich Center for Arts Education 196.4and any additional facilities related to the center, including the authority to lease a 196.5temporary facility.196.6(h) The board must plan for the enrollment of pupils on an equal basis from each 196.7congressional district.196.8(i) The board may establish task forces as needed to advise the board on policies and 196.9issues. The task forces expire as provided in section 
         15.059, subdivision 6.196.10(j) The board may request the commissioner of education for assistance and services.196.11(k) The board may enter into contracts with other public and private agencies 196.12and institutions for residential and building maintenance services if it determines that 196.13these services could be provided more efficiently and less expensively by a contractor 196.14than by the board itself. The board may also enter into contracts with public or private 196.15agencies and institutions, school districts or combinations of school districts, or service 196.16cooperatives to provide supplemental educational instruction and services.196.17(l) The board may provide or contract for services and programs by and for the 196.18Center for Arts Education, including a store, operating in connection with the center; 196.19theatrical events; and other programs and services that, in the determination of the board, 196.20serve the purposes of the center.196.21(m) The board may provide for transportation of pupils to and from the Center for 196.22Arts Education for all or part of the school year, as the board considers advisable and 196.23subject to its rules. Notwithstanding any other law to the contrary, the board may charge a 196.24reasonable fee for transportation of pupils. Every driver providing transportation of pupils 196.25under this paragraph must possess all qualifications required by the commissioner of 196.26education. The board may contract for furnishing authorized transportation under rules 196.27established by the commissioner of education and may purchase and furnish gasoline to a 196.28contract carrier for use in the performance of a contract with the board for transportation 196.29of pupils to and from the Center for Arts Education. When transportation is provided, 196.30scheduling of routes, establishment of the location of bus stops, the manner and method of 196.31transportation, the control and discipline of pupils, and any other related matter is within 196.32the sole discretion, control, and management of the board.196.33(n) The board may provide room and board for its pupils. If the board provides room 196.34and board, it shall charge a reasonable fee for the room and board. The fee is not subject 196.35to chapter 14 and is not a prohibited fee according to sections 
         123B.34 to 
         123B.39.197.1(o) The board may establish and set fees for services and programs. If the board sets 197.2fees not authorized or prohibited by the Minnesota public school fee law, it may do so 197.3without complying with the requirements of section 
         123B.38.197.4(p) The board may apply for all competitive grants administered by agencies of the 197.5state and other government or nongovernment sources.197.6EFFECTIVE DATE.This section is effective the day following final enactment.197.7    Sec. 73. Minnesota Statutes 2012, section 129C.10, is amended by adding a 197.8subdivision to read:197.9    Subd. 5a.Interdistrict voluntary integration magnet program.Notwithstanding 197.10Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate 197.11an interdistrict integration magnet program according to section 129C.30. For fiscal year 197.122016 and later, the board must have an approved achievement and integration plan and 197.13budget under section 124D.861.197.14EFFECTIVE DATE.This section is effective the day following final enactment.197.15    Sec. 74. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.197.16    Subdivision 1.Definitions.(a) The following terms having the meanings given 197.17them for this chapter.197.18(b) "Board" means the board of directors of the Perpich Center for Arts Education.197.19(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during 197.20the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration 197.21District.197.22    Subd. 2.Board to operate the Crosswinds school.The board may operate the 197.23Crosswinds school with the powers and duties granted to it under this chapter. A student 197.24may apply to the Crosswinds school under section 124D.03 and the Crosswinds school 197.25may accept students under that section.197.26    Subd. 3.General education funding.(a) General education revenue must be paid 197.27to the Crosswinds school as though it were a district. The general education revenue for 197.28each adjusted pupil unit is the state average general education revenue per pupil unit, plus 197.29the referendum equalization aid allowance in the pupil's district of residence, minus an 197.30amount equal to the product of the formula allowance according to section 126C.10, 197.31subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue, 197.32extended time revenue, pension adjustment revenue, transition revenue, and transportation 197.33sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue, 198.1pension adjustment revenue, and transition revenue as though the school were a school 198.2district. The general education revenue for each extended time pupil unit equals $4,794.198.3    (b) General education revenue under paragraph (a) must be reduced by an amount 198.4equal to 75 percent of the school's equity revenue for that year.198.5    Subd. 4.Special education funding.Special education aid must be paid to the 198.6Crosswinds school according to sections 125A.76 and 125A.79, as though it were a 198.7school district. The special education aid paid to the Crosswinds school shall be adjusted 198.8as follows:198.9(1) if the Crosswinds school does not receive general education revenue on behalf of 198.10the student according to subdivision 3, the aid shall be adjusted as provided in section 198.11125A.11; or198.12(2) if the Crosswinds school receives general education revenue on behalf of the 198.13student according to subdivision 3, the aid shall be adjusted as provided in section 198.14127A.47, subdivision 7, paragraphs (b) to (d).198.15    Subd. 5.Pupil transportation. For fiscal year 2015 only, a member district of Joint 198.16Powers District No. 6067, East Metro Integration District must transport pupils enrolled at 198.17the Crosswinds school in the same manner as they were transported in fiscal year 2014. 198.18Pupil transportation expenses under this section are reimbursable under section 124D.87.198.19    Subd. 6.Achievement and integration aid.For fiscal year 2016 and later, the 198.20Crosswinds school is eligible for achievement and integration aid under section 124D.862 198.21as if it were a school district.198.22    Subd. 7.Other aids, grants, revenue.(a) The Crosswinds school is eligible to 198.23receive other aids, grants, and revenue according to chapters 120A to 129C as though it 198.24were a district.198.25(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a 198.26grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue 198.27replaces levy revenue that is not general education revenue, except as otherwise provided 198.28in this section.198.29(c) Federal aid received by the state must be paid to the school, if it qualifies for 198.30the aid as though it were a school district.198.31(d) In the year-end report to the commissioner of education, the Crosswinds school 198.32shall report the total amount of funds received from grants and other outside sources.198.33    Subd. 8.Year-round programming.The Crosswinds school may operate as a 198.34flexible learning year program under sections 124D.12 to 124D.127.198.35    Subd. 9.Data requirements.The commissioner of education shall require the 198.36Crosswinds school to follow the budget and accounting procedures required for school 199.1districts and the Crosswinds school shall report all data to the Department of Education in 199.2the form and manner required by the commissioner.199.3    Sec. 75. Minnesota Statutes 2013, section 298.28, subdivision 7a, as added by Laws 199.42014, chapter 150, article 6, section 13, is amended to read:199.5    Subd. 7a. Iron Range school consolidation and cooperatively operated school 199.6account. The following amounts must be allocated to the Iron Range Resources and 199.7Rehabilitation Board to be deposited in the Iron Range school consolidation and 199.8cooperatively operated school account that is hereby created:199.9(1) ten cents per taxable ton of the tax imposed under section 
         298.24;199.10(2) the amount as determined under section 
         298.17, paragraph (b), clause (3); and199.11(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the 199.12increased tax proceeds attributable to the increase in the implicit price deflator as provided 199.13in section 
         298.24, subdivision 1.199.14Expenditures from this account shall be made only to provide disbursements to 199.15assist school districts with the payment of bonds that were issued for qualified school 199.16projects, or for any other disbursement as approved by the Iron Range Resources and 199.17Rehabilitation Board. For purposes of this section, "qualified school projects" means 199.18school projects within the taconite assistance area as defined in section 
         273.1341, that 199.19were (1) approved, by referendum, after December 7, 2009; and (2) approved by the 199.20commissioner of education pursuant to section 
         123B.71.199.21Beginning in fiscal year 2019, the disbursement to school districts for payments for 199.22bonds issued under section 123A.482, subdivision 9, must be increased each year to 199.23offset any reduction in debt service equalization aid that the school district qualifies for in 199.24that year, under section 123B.53, subdivision 6, compared with the amount the school 199.25district qualified for in fiscal year 2018.199.26No expenditure under this section shall be made unless approved by seven members 199.27of the Iron Range Resources and Rehabilitation Board.199.28EFFECTIVE DATE.This section is effective for production year 2014 and 199.29thereafter.199.30    Sec. 76. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:199.31    Subd. 2. General education aid. For general education aid under Minnesota 199.32Statutes, section 
         126C.13, subdivision 4:

200.1200.2$6,051,766,0006,851,419,000.....2014200.3200.4$6,370,640,000 6,440,407,000.....2015

200.5The 2014 appropriation includes $781,842,000 $780,156,000 for 2013 and 200.6$5,269,924,000 $6,071,263,000 for 2014.200.7The 2015 appropriation includes $823,040,000 $589,095,000 for 2014 and 200.8$5,547,600,000 $5,851,312,000 for 2015.200.9    Sec. 77. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to 200.10read:200.11    Subd. 15. Early childhood literacy programs. For early childhood literacy 200.12programs under Minnesota Statutes, section 
         119A.50, subdivision 3:

200.13$4,125,000.....2014200.14200.15$4,125,0006,125,000.....2015

200.16Up to $4,125,000 eachin the first year and $6,125,000 in the second year is for 200.17leveraging federal and private funding to support AmeriCorps members serving in the 200.18Minnesota Reading Corps program established by ServeMinnesota, including costs 200.19associated with the training and teaching of early literacy skills to children age three to 200.20grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections 200.21124D.38, subdivision 2
         , and 
         124D.42, subdivision 6. Up to $2,000,000 in fiscal year 200.222015 must be used to support priority and focus schools as defined by the Department 200.23of Education and to expand kindergarten programming.200.24Any balance in the first year does not cancel but is available in the second year.200.25The base for fiscal year 2016 and later is $4,125,000.200.26    Sec. 78. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:200.27    Subd. 8. Special education paperwork cost savings. For the contract to effect200.28 special education paperwork cost savings under Minnesota Statutes, section 125A.08, 200.29subdivision 2, paragraph (c):

200.30$1,763,000.....2014

200.31For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not 200.32expended.200.33EFFECTIVE DATE.This section is effective the day following final enactment.201.1    Sec. 79. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:201.2    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 201.3section 
         124D.111, and Code of Federal Regulations, title 7, section 
         210.17:

201.4$13,032,000.....2014201.5201.6$13,293,00016,185,000.....2015

201.7    Sec. 80. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:201.8    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota 201.9Statutes, section 
         124D.1158:

201.10201.11$5,711,0005,308,000.....2014201.12201.13$6,022,0006,176,000.....2015

201.14    Sec. 81. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:201.15    Subd. 2. School readiness. For revenue for school readiness programs under 201.16Minnesota Statutes, sections 
         124D.15 and 
         124D.16:

201.17201.18$10,095,00010,458,000.....2014201.19201.20$10,159,000 13,529,000.....2015

201.21The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000 201.22 for 2014.201.23The 2015 appropriation includes $1,372,000 $1,009,000  for 2014 and $8,787,000201.24 $12,520,000 for 2015.201.25    Sec. 82. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:201.26    Subd. 3. Early childhood family education aid. For early childhood family 201.27education aid under Minnesota Statutes, section 
         124D.135:

201.28201.29$22,078,00022,797,000.....2014201.30201.31$22,425,000 30,905,000.....2015

201.32    The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000201.33 for 2014.201.34    The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000201.35 $28,707,000 for 2015.202.1    Sec. 83. Laws 2013, chapter 116, article 8, section 5, subdivision 8, is amended to read:202.2    Subd. 8. Early childhood education scholarships. For transfer to the Office of 202.3Early Learning for early learning scholarships under Minnesota Statutes, section 
         124D.165:

202.4$23,000,000.....2014202.5202.6$23,000,000 31,800,000.....2015

202.7Up to $950,000 each year is for administration of this program.202.8Any balance in the first year does not cancel but is available in the second year.202.9The base for fiscal year 2016 and later is $29,650,000.202.10EFFECTIVE DATE.This section is effective July 1, 2014.202.11    Sec. 84. Laws 2013, chapter 116, article 8, section 5, subdivision 9, is amended to read:202.12    Subd. 9. Parent-child home program. For a grant to the parent-child home 202.13program:

202.14$250,000.....2014202.15$250,000 350,000.....2015

202.16The grant must be used for an evidence-based and research-validated early childhood 202.17literacy and school readiness program for children ages 16 months to four years at its 202.18existing suburban program location. The program must expand to one additional urban 202.19and one additional rural program location for fiscal years 2014 and 2015. The base for 202.20fiscal year 2016 and later is $250,000.202.21    Sec. 85. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:202.22    Subd. 14. Adult basic education aid. For adult basic education aid under 202.23Minnesota Statutes, section 
         124D.531:

202.24202.25$47,005,00048,776,000.....2014202.26202.27$48,145,00048,415,000.....2015

202.28The 2014 appropriation includes $6,284,000 $6,278,000 for 2013 and $40,721,000202.29 $42,498,000 for 2014.202.30The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000202.31 $43,693,000 for 2015.202.32    Sec. 86. Laws 2013, chapter 116, article 9, section 2, is amended to read:202.33    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.203.1The sums indicated in this section are appropriated from the general fund to the 203.2Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

203.3$11,749,000.....2014203.4203.5$11,664,00011,964,000.....2015

203.6$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 203.7kitchen facilities. Any balance in the first year does not cancel but is available in the 203.8second year.203.9    Sec. 87. FISCAL YEAR 2015 LEASE LEVY AUTHORITY.203.10(a) Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, paragraph 203.11(e), for taxes payable in 2015, a district may apply to the commissioner in a manner 203.12consistent with Minnesota Statutes, section 126C.40, subdivision 1, paragraph (a), to levy 203.13an amount not to exceed $50 times the adjusted pupil units for fiscal year 2015.203.14(b) Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, paragraph 203.15(h), for taxes payable in 2015, a school district that is a member of an intermediate school 203.16district may include in its authority under this section the costs associated with leases of 203.17administrative and classroom space for intermediate school district programs. Authority 203.18under this paragraph must not exceed $19 times the adjusted pupil units of the member 203.19districts and is in addition to any other authority authorized under this section.203.20(c) A levy made under this section must be used for purposes consistent with 203.21Minnesota Statutes, section 126C.40, subdivision 1, and be recognized as revenue in 203.22fiscal year 2015.203.23    Sec. 88. HARAMBEE COMMUNITY SCHOOL TRANSITION.203.24    Subdivision 1.Student enrollment.A student enrolled in the Harambee community 203.25school during the 2013-2014 school year may continue to enroll in the Harambee 203.26community school in any subsequent year. For the 2014-2015 school year and later, other 203.27students may apply for enrollment under Minnesota Statutes, section 124D.03.203.28    Subd. 2.Compensatory revenue, literacy aid, and alternative compensation 203.29revenue.For the 2014-2015 school year only, the Department of Education must calculate 203.30compensatory revenue, literacy aid, and alternative compensation revenue for the 203.31Harambee community school based on the fall 2013 enrollment counts.203.32    Subd. 3.Year-round programming.Harambee community school may operate as 203.33a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.204.1    Subd. 4.Pupil transportation.The board may transport pupils enrolled in the 204.22013-2014 school year to and from the Harambee community school in succeeding school 204.3years regardless of the students' districts of residence. Pupil transportation expenses under 204.4this section are reimbursable under Minnesota Statutes, section 124D.87.204.5EFFECTIVE DATE.This section is effective the day following final enactment.204.6    Sec. 89. INFORMATION TECHNOLOGY CERTIFICATION PARTNERSHIPS; 204.7REQUEST FOR PROPOSAL; PROGRAM REQUIREMENTS.204.8(a) The commissioner shall contract with at least one provider to provide information 204.9technology education opportunities to students in grades 9 through 12. This partnership 204.10must allow participating students and teachers to secure broad-based information 204.11technology certifications.204.12(b) The commissioner shall issue a competitive request for proposals, award the 204.13contract, and make available, through participating school districts, charter schools, and 204.14intermediate districts, instruction on information technology skills and competencies 204.15that are essential for career and college readiness. The request for proposals shall at 204.16least include the following components:204.17(1) a research-based curriculum;204.18(2) online access to the curriculum;204.19(3) instructional software for classroom and student use;204.20(4) certification of skills and competencies in a broad array of information 204.21technology-related skill areas;204.22(5) professional development for teachers; and204.23(6) deployment and program support, including, but not limited to, integration with 204.24academic standards under Minnesota Statutes, section 120B.021 or 120B.022.204.25(c) If the contract awarded under this section does not allow for the service to be 204.26delivered in every eligible school, the commissioner shall make the contracted service 204.27available on a first-come, first-served basis to an equal number of schools in each of the 204.28regions represented by a regional development commission under Minnesota Statutes, 204.29section 462.387, and in the region consisting of counties not represented by a regional 204.30development commission. If participating schools in any region do not exhaust the services 204.31allocated to that region, the commissioner may reallocate unused services to other regions.204.32    Sec. 90. LEASE LEVY; SATELLITE TRANSPORTATION HUB FOR 204.33ROSEMOUNT-APPLE VALLEY-EAGAN SCHOOL DISTRICT.205.1Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent 205.2School District No. 196, Rosemount-Apple Valley-Eagan, may lease a satellite 205.3transportation hub under Minnesota Statutes, section 126C.40, subdivision 1, if the district 205.4can demonstrate to the satisfaction of the commissioner of education that the satellite 205.5transportation hub will result in a significant financial savings. Levy authority under 205.6this section shall not exceed the total levy authority under Minnesota Statutes, section 205.7126C.40, subdivision 1, paragraph (e).205.8EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.205.9    Sec. 91. LEGISLATIVE REPORT ON K-12 STUDENTS' EXPERIENCE WITH 205.10PHYSICAL EDUCATION.205.11(a) The commissioner of education must prepare and submit to the education policy 205.12and finance committees of the legislature by January 15, 2015, a written report on K-12 205.13students' experience with physical education, consistent with this section. Among other 205.14physical education-related issues, the report must include:205.15(1) the number of minutes per day and frequency per week students in each grade 205.16level, kindergarten through grade 8, receive physical education, identify the requirements in 205.17high school physical education in terms of semesters, trimesters, quarters, or school years;205.18(2) the measures and data used to assess students' level of fitness and the uses made 205.19of the fitness data;205.20(3) the educational preparation of physical education instructors and the proportion 205.21of time certified physical education teachers provide physical education instruction;205.22(4) the amount of time and number of days per week each grade level, kindergarten 205.23through grade 6, receives recess;205.24(5) whether high school students are allowed to substitute other activities for 205.25required physical education, and, if so, which activities qualify;205.26(6) identify the number or percentage of high school students who earn required 205.27physical education credits online;205.28(7) whether schools offer before or after school physical activities opportunities in 205.29each grade level, kindergarten through grade 8, and in high school, and, if so, what are the 205.30opportunities; and205.31(8) the extent to which schools coordinate with developmentally adaptive physical 205.32education specialists when needed.205.33(b) Any costs of preparing this report must be paid for out of the Department of 205.34Education's current operating budget.206.1EFFECTIVE DATE.This section is effective the day following final enactment.206.2    Sec. 92. RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.206.3Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph 206.4(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions 206.5of Minnesota Statutes, section 124D.041 and the agreement shall not apply to Independent 206.6School District No. 402, Hendricks.206.7EFFECTIVE DATE.This section is effective for the 2014-2015 school year and 206.8later.206.9    Sec. 93. TEACHER DEVELOPMENT AND EVALUATION REVENUE.206.10    (a) For fiscal year 2015 only, teacher development and evaluation revenue for a school 206.11district, intermediate school district, or charter school that does not have an alternative 206.12professional pay system agreement under Minnesota Statutes, section 122A.414, 206.13subdivision 2, equals $302 times the number of full-time equivalent teachers employed on 206.14October 1 of the previous school year. Revenue under this section must be reserved for 206.15teacher development and evaluation activities consistent with Minnesota Statutes, section 206.16122A.40, subdivision 8, or Minnesota Statutes, section 122A.41, subdivision 5. For the 206.17purposes of this section, "teacher" has the meaning given it in Minnesota Statutes, section 206.18122A.40, subdivision 1, or Minnesota Statutes, section 122A.41, subdivision 1.206.19    (b) Notwithstanding paragraph (a), the state total teacher development and evaluation 206.20revenue entitlement must not exceed $10,000,000 for fiscal year 2015. The commissioner 206.21must limit the amount of revenue under this section so as not to exceed this limit.206.22    Sec. 94. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.206.23    Subdivision 1.Student enrollment.Any student enrolled in the Crosswinds school 206.24during the 2013-2014 school year may continue to enroll in the Crosswinds school in 206.25any subsequent year. For the 2014-2015 school year and later, a student may apply for 206.26enrollment to the school under Minnesota Statutes, section 124D.03.206.27    Subd. 2.Compensatory revenue, literacy aid, and alternative compensation 206.28revenue.For the 2014-2015 school year only, the Department of Education must calculate 206.29compensatory revenue, literacy aid, and alternative compensation revenue for the 206.30Crosswinds school based on the October 1, 2013, enrollment counts at that site.206.31    Subd. 3.Title 1 funding.To the extent possible, the Department of Education 206.32must qualify the Crosswinds school for Title 1, and if applicable, other federal funding, 207.1as if the program were still operated by Joint Powers District No. 6067, East Metro 207.2Integration District.207.3EFFECTIVE DATE.This section is effective the day following final enactment.207.4    Sec. 95. VISION THERAPY PILOT PROJECT.207.5    Subdivision 1.Establishment.A three-year grant program is established to fund 207.6vision therapy pilot projects in up to two school districts.207.7    Subd. 2.Pilot project.In each year of the pilot project, second and third grade 207.8students identified by a set of criteria by the pilot school shall be admitted into the pilot 207.9study. Identified students shall have a comprehensive eye examination with written 207.10standard requirements of testing. Students identified with a diagnosis of convergence 207.11insufficiency must undergo a vision efficiency evaluation by a licensed optometrist or 207.12ophthalmologist trained in the evaluation of learning-related vision problems. The results 207.13of this examination shall determine whether a student will qualify for neuro-optometric 207.14vision therapy funded by the grant. The parent or guardian of a student who qualifies for 207.15the pilot program under this paragraph may submit a written notification to the school 207.16opting the student out of the program. Guidelines must be established to provide quality 207.17standards and measures to ensure an appropriate diagnosis and treatment plan that is 207.18consistent with the convergence insufficiency treatment trial study.207.19    Subd. 3.Application.The applicant school district must submit a plan to the 207.20commissioner of education in the form and manner the commissioner determines. A 207.21charter school is not eligible to apply. The application must include:207.22(1) the school that will implement the pilot project;207.23(2) who will provide the comprehensive eye exam, visual efficiency evaluation, and 207.24the neuro-optometric vision therapy treatment along with appropriate licensure;207.25(3) how the vision and reading skills of students participating in the program will be 207.26evaluated before and after vision therapy;207.27(4) how students' progress will be monitored during and after receiving 207.28neuro-optometric vision therapy; and207.29(5) what additional reading interventions will be available to students after 207.30completion of the neuro-optometric vision therapy program.207.31    Subd. 4.Application review; grant awards.(a) Grant money must be paid to the 207.32recipient districts in the 2014-2015, 2015-2016, and 2016-2017 school years.207.33(b) The grant is awarded for a three-year time period.207.34(c) The commissioner shall oversee the grant distribution.208.1(d) A grant shall be awarded to Independent School District No. 12, Centennial, 208.2provided the district meets the application requirements in subdivision 3.208.3(e) A grant shall be awarded to an applicant district with its administrative offices 208.4not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, 208.5or a city of the first class.208.6    Subd. 5.Evaluation.The commissioner of education must provide for an evaluation 208.7of the pilot project and must report to the legislative committees with jurisdiction over 208.8kindergarten through grade 12 education policy and finance by January 15, 2018.208.9    Sec. 96. APPROPRIATION; RESPONSES TO HEALTH INSURANCE 208.10TRANSPARENCY ACT BID REQUESTS.208.11    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the 208.12commissioner of management and budget to comply with the requirements relating to  208.13health insurance transparency similar to those proposed in Senate File 1835, if enacted in 208.14the 2014 regular legislative session. This is a onetime appropriation.208.15    (b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner 208.16of management and budget shall report by January 15, 2015, to the legislative chairs 208.17and ranking minority members with jurisdiction over state government finance on the 208.18ongoing costs incurred by the public employees insurance program in compliance with 208.19the requirements of the Health Insurance Transparency Act and may request additional 208.20appropriations, if necessary.208.21    Sec. 97. APPROPRIATIONS.208.22    Subdivision 1.Department of Education.The sums indicated in this section 208.23are appropriated from the general fund to the Department of Education for the fiscal 208.24year designated.208.25    Subd. 2.Headwaters Science Center.For a grant to the Headwaters Science 208.26Center for hands-on science, technology, engineering, and math (STEM) education.

208.27$50,000.....2015

208.28The base for fiscal year 2016 and later is $0.208.29    Subd. 3.The Works Museum.For a grant to the Works Museum for hands-on 208.30science, technology, engineering, and math (STEM) education.

208.31$75,000.....2015

208.32The base for fiscal year 2016 and later is $0.209.1    Subd. 4.Northwestern Online College in the High School program.For the 209.2Northwestern Online College in the High School program:

209.3$160,000.....2015

209.4The base for fiscal year 2016 and later is $0.209.5    Subd. 5.Information technology certification partnership.For an information 209.6technology certification partnership.

209.7$340,000.....2015

209.8The base for 2016 and later is $0.209.9    Subd. 6.Grants for vision therapy pilot project.For grants to implement a 209.10neuro-optometric vision therapy pilot project:

209.11$500,000.......2015

209.12This appropriation is available until expended.209.13The base for fiscal year 2016 and later is $0.209.14    Subd. 7.Legislative report on K-12 students' experience with physical 209.15education.For the preparation of the legislative report on K-12 students' experience 209.16with physical education.

209.17$73,000.....2015

209.18    The base for fiscal year 2016 and later is $0.209.19    Subd. 8.Teacher development and evaluation.For teacher development and 209.20evaluation revenue.

209.21$9,000,000.....2015

209.22The 2015 appropriation includes $0 for 2014 and $9,000,000 for 2015. This is a 209.23onetime appropriation and is available until expended.209.24    Subd. 9.Saint Paul Promise Neighborhood.For a grant to the Saint Paul Promise 209.25Neighborhood. 

209.26$600,000.....2015

209.27(a) Funds appropriated in this section are to reduce multigenerational poverty and 209.28the educational achievement gap through increased enrollment of families within the 209.29zone, and may be used for Saint Paul Promise Neighborhood programming and services 209.30consistent with federal Promise Neighborhood program agreements and requirements.209.31(b) The Saint Paul Promise Neighborhood shall submit a report on January 15, 2016, 209.32to the chairs of the legislative committees with jurisdiction over early childhood through 210.1grade 12 education policy and finance. The report, at a minimum, must summarize 210.2program activities, specify performance measures, and analyze program outcomes.210.3(c) The base appropriation for fiscal year 2016 is $0.210.4    Subd. 10.Northside Achievement Zone.For a grant to the Northside Achievement 210.5Zone.

210.6$600,000.....2015

210.7(a) Funds appropriated in this section are to reduce multigenerational poverty and 210.8the educational achievement gap through increased enrollment of families within the zone, 210.9and may be used for Northside Achievement Zone programming and services consistent 210.10with federal Promise Neighborhood program agreements and requirements. The base 210.11appropriation for fiscal year 2016 is $0.210.12(b) The Northside Achievement Zone shall submit a report to the chairs of the 210.13legislative committees with jurisdiction over early childhood through grade 12 education 210.14policy and finance that, at a minimum, summarizes program activities, specifies 210.15performance measures, and analyzes program outcomes. The report must be submitted by 210.16January 15, 2016.210.17    Sec. 98. REVISOR'S INSTRUCTION.210.18In Minnesota Statutes, the revisor of statutes shall change the term "location equity" 210.19to "local optional."210.20    Sec. 99.  REPEALER.210.21Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.210.22ARTICLE 13210.23FORECAST ADJUSTMENTS210.24A. GENERAL EDUCATION210.25    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to 210.26read:210.27    Subd. 3. Enrollment options transportation. For transportation of pupils attending 210.28postsecondary institutions under Minnesota Statutes, section 
         124D.09, or for transportation 210.29of pupils attending nonresident districts under Minnesota Statutes, section 
         124D.03:

211.1211.2$44,00037,000.....2014211.3211.4$48,00040,000.....2015

211.5    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:211.6    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section 211.7127A.49
         :

211.8211.9$2,747,0002,876,000.....2014211.10211.11$3,136,0003,103,000.....2015

211.12The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000211.13 for 2014.211.14The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000211.15 $2,817,000 for 2015.211.16    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:211.17    Subd. 5. Consolidation transition. For districts consolidating under Minnesota 211.18Statutes, section 
         123A.485:

211.19211.20$472,000585,000.....2014211.21211.22$480,000254,000.....2015

211.23The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.211.24The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000211.25 for 2015.211.26    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:211.27    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under 211.28Minnesota Statutes, sections 
         123B.40 to 
         123B.43 and 
         123B.87:

211.29211.30$15,582,00016,068,000.....2014211.31211.32$16,169,00016,074,000.....2015

211.33The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000211.34 for 2014.211.35The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000211.36 $14,522,000 for 2015.212.1    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:212.2    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid 212.3under Minnesota Statutes, section 
         123B.92, subdivision 9:

212.4212.5$18,565,00018,566,000.....2014212.6212.7$18,946,00017,646,000.....2015

212.8The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000212.9 for 2014.212.10The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000212.11 $15,880,000 for 2015.212.12    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:212.13    Subd. 11. Career and technical aid. For career and technical aid under Minnesota 212.14Statutes, section 
         124D.4531, subdivision 1b:

212.15212.16$4,320,0003,959,000.....2014212.17212.18$5,680,0005,172,000.....2015

212.19The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.212.20The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000212.21 $4,733,000 for 2015.212.22B. EDUCATION EXCELLENCE212.23    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:212.24    Subd. 3. Achievement and integration aid. For achievement and integration aid 212.25under Minnesota Statutes, section 
         124D.862:

212.26212.27$58,911,00055,609,000.....2014212.28212.29$68,623,00062,692,000.....2015

212.30The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.212.31The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000212.32 $56,514,000 for 2015.212.33    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:212.34    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota 212.35Statutes, section 
         124D.98:

213.1213.2$52,514,00050,998,000.....2014213.3213.4$53,818,00047,458,000.....2015

213.5The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000213.6 for 2014.213.7The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000213.8 $42,526,000 for 2015.213.9    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:213.10    Subd. 5. Interdistrict desegregation or integration transportation grants. For 213.11interdistrict desegregation or integration transportation grants under Minnesota Statutes, 213.12section 
         124D.87:

213.13213.14$13,968,00013,521,000.....2014213.15213.16$14,712,00014,248,000.....2015

213.17    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:213.18    Subd. 6. Success for the future. For American Indian success for the future grants 213.19under Minnesota Statutes, section 
         124D.81:

213.20213.21$2,137,0002,214,000.....2014213.22$2,137,000.....2015

213.23The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000213.24 for 2014.213.25The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000213.26 $1,924,000 for 2015.213.27    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:213.28    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota 213.29Statutes, section 
         124D.83:

213.30213.31$2,080,0002,144,000.....2014213.32213.33$2,230,0002,152,000.....2015

213.34The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000213.35 for 2014.214.1The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000214.2 $1,944,000 for 2015.214.3    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to 214.4read:214.5    Subd. 20. Alternative compensation. For alternative teacher compensation aid 214.6under Minnesota Statutes, section 
         122A.415, subdivision 4:

214.7214.8$60,340,00071,599,000.....2015

214.9The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.214.10C. CHARTER SCHOOLS214.11    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:214.12    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 214.13Statutes, section 
         124D.11, subdivision 4: 

214.14214.15$54,484,00054,763,000.....2014214.16214.17$59,533,00058,294,000.....2015

214.18The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000214.19 for 2014.214.20The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000214.21 $52,967,000 for 2015.214.22D. SPECIAL PROGRAMS214.23    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:214.24    Subd. 2. Special education; regular. For special education aid under Minnesota 214.25Statutes, section 
         125A.75:

214.26214.27$997,725,0001,038,514,000.....2014214.28214.29$1,108,211,0001,111,641,000.....2015

214.30The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000214.31 $920,282,000 for 2014.214.32The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and 214.33$938,282,000 $982,092,000 for 2015.215.1    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:215.2    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 215.3section 
         125A.75, subdivision 3, for children with disabilities placed in residential facilities 215.4within the district boundaries for whom no district of residence can be determined:

215.5215.6$1,655,0001,548,000.....2014215.7215.8$1,752,0001,674,000.....2015

215.9If the appropriation for either year is insufficient, the appropriation for the other 215.10year is available.215.11    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:215.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 215.13services under Minnesota Statutes, section 
         125A.75, subdivision 1:

215.14215.15$345,000351,000.....2014215.16215.17$355,000346,000.....2015

215.18The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.215.19The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000215.20 for 2015.215.21    Sec. 17. Laws 2013, chapter 116, article 5, section 31, subdivision 5, is amended to read:215.22    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota 215.23Statutes, section 
         125A.79, subdivision 7:

215.24215.25$42,030,00042,016,000.....2014

215.26The 2014 appropriation includes $42,030,000 $42,016,000 for 2013 and $0 for 2014.215.27E. FACILITIES AND TECHNOLOGY215.28    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:215.29    Subd. 2. Health and safety revenue. For health and safety aid according to 215.30Minnesota Statutes, section 
         123B.57, subdivision 5:

215.31215.32$463,000473,000.....2014215.33215.34$434,000651,000.....2015

215.35The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.216.1The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000216.2 for 2015.216.3    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:216.4    Subd. 3. Debt service equalization. For debt service aid according to Minnesota 216.5Statutes, section 
         123B.53, subdivision 6:

216.6216.7$19,083,00019,778,000.....2014216.8216.9$25,060,00022,591,000.....2015

216.10The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000216.11 for 2014.216.12The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000216.13 $20,660,000 for 2015.216.14    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:216.15    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid, 216.16according to Minnesota Statutes, section 
         123B.59, subdivision 1:

216.17216.18$19,287,00019,982,000.....2014216.19$19,287,000.....2015

216.20The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000216.21 for 2014.216.22The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000216.23 $17,359,000 for 2015.216.24    Sec. 21. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:216.25    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 216.26Minnesota Statutes, section 
         123B.591, subdivision 4:

216.27216.28$3,564,0003,858,000.....2014216.29216.30$3,730,0004,024,000.....2015

216.31The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000216.32 for 2014.216.33The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000216.34 $3,646,000 for 2015.217.1F. NUTRITION AND LIBRARIES217.2    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:217.3    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 217.4section 
         124D.118:

217.5217.6$1,039,000992,000.....2014217.7217.8$1,049,0001,002,000.....2015

217.9    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:217.10    Subd. 6. Basic system support. For basic system support grants under Minnesota 217.11Statutes, section 
         134.355:

217.12217.13$13,570,00014,058,000.....2014217.14217.15$13,570,00013,570,000.....2015

217.16The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000217.17 for 2014.217.18The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000217.19 $12,213,000 for 2015.217.20    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:217.21    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota 217.22Statutes, sections 
         134.353 and 
         134.354, to multicounty, multitype library systems:

217.23217.24$1,300,0001,346,000.....2014217.25$1,300,000.....2015

217.26The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000217.27 for 2014.217.28The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000217.29 $1,170,000 for 2015.217.30    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:217.31    Subd. 9. Regional library telecommunications aid. For regional library 217.32telecommunications aid under Minnesota Statutes, section 
         134.355:

218.1218.2$2,300,0002,382,000.....2014218.3$2,300,000.....2015

218.4The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000218.5 for 2014.218.6The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000218.7 $2,070,000 for 2015.218.8G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 218.9AND LIFELONG LEARNING218.10    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:218.11    Subd. 4. Health and developmental screening aid. For health and developmental 218.12screening aid under Minnesota Statutes, sections 
         121A.17 and 
         121A.19:

218.13218.14$3,421,0003,527,000.....2014218.15218.16$3,344,0003,330,000.....2015

218.17The 2014 appropriation includes $474,000 for 2013 and $2,947,000 $3,053,000218.18 for 2014.218.19The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000218.20 $2,991,000 for 2015.218.21    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:218.22    Subd. 10. Community education aid. For community education aid under 218.23Minnesota Statutes, section 
         124D.20:

218.24218.25$935,000955,000.....2014218.26218.27$1,056,0001,060,000.....2015

218.28The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.218.29The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000218.30 for 2015.218.31    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:218.32    Subd. 11. Adults with disabilities program aid. For adults with disabilities 218.33programs under Minnesota Statutes, section 
         124D.56:

219.1219.2$710,000735,000.....2014219.3$710,000.....2015

219.4The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.219.5The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000219.6 for 2015.219.7ARTICLE 14219.8HEALTH AND HUMAN SERVICES APPROPRIATIONS

219.9Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

219.10The sums shown in the columns marked "Appropriations" are added to or, if shown 219.11in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14 219.12and 15, to the agencies and for the purposes specified in this article. The appropriations 219.13are from the general fund and are available for the fiscal years indicated for each purpose. 219.14The figures "2014" and "2015" used in this article mean that the addition to or subtraction 219.15from the appropriation listed under them is available for the fiscal year ending June 30, 219.162014, or June 30, 2015, respectively. Supplemental appropriations and reductions to 219.17appropriations for the fiscal year ending June 30, 2014, are effective the day following 219.18final enactment unless a different effective date is explicit.

219.19APPROPRIATIONS219.20Available for the Year219.21Ending June 30219.2220142015

219.23219.24Sec. 2. COMMISSIONER OF HUMAN SERVICES

219.25Subdivision 1.Total Appropriation(1,873,000) 93,149,000

219.26The appropriation modifications for 219.27each purpose are shown in the following 219.28subdivisions.

219.29Appropriations by Fund219.3020142015219.31General(1,873,000) 92,247,000219.32Federal TANF-0- 902,000

219.33Subd. 2.Central Office Operations

219.34(a) Operations-0- 99,000

220.1Base adjustment. The general fund base is 220.2increased by $222,000 in fiscal year 2016 220.3and decreased by $26,000 in fiscal year 2017.

220.4(b) Health Care-0-113,000

220.5Base adjustment. The general fund base is 220.6increased by $112,000 in fiscal years 2016 220.7and 2017.

220.8(c) Continuing Care-0-108,000

220.9Base adjustment. The general fund base is 220.10decreased by $83,000 in fiscal year 2016 and 220.11$108,000 in fiscal year 2017.

220.12(d) Chemical and Mental Health-0-150,000

220.13$35,000 in fiscal year 2015 is to develop 220.14an online training program to promote 220.15better clarity and interpretation of the civil 220.16commitment laws for interested individuals 220.17and personnel, specifically county and 220.18hospital staff and mental health providers, 220.19to understand, clarify, and interpret the 220.20Civil Commitment Act under Minnesota 220.21Statutes, chapter 253B, as it pertains to 220.22persons with mental illnesses. The training 220.23must be developed in collaboration with 220.24the ombudsman for mental health and 220.25developmental disabilities, Minnesota 220.26County Attorneys Association, National 220.27Alliance on Mental Illness of Minnesota, 220.28Mental Health Consumer/Survivor Network 220.29of Minnesota, Mental Health Association, 220.30Minnesota Psychiatric Society, Hennepin 220.31Commitment Defense Panel, Minnesota 220.32Disability Law Center, Minnesota 220.33Association of Community Mental Health 220.34Programs, Minnesota Hospital Association, 221.1and Minnesota Board of Public Defense. 221.2This is a onetime appropriation.221.3Base adjustment. The general fund base is 221.4decreased by $150,000 in fiscal years 2016 221.5and 2017.

221.6Subd. 3.Forecasted Programs

221.7(a) MFIP/DWP

221.8Appropriations by Fund221.9General-0- 122,000221.10Federal TANF-0- 550,000

221.11(b) General Assistance-0-21,000

221.12(c) Group Residential Housing-0-681,000

221.13(d) MinnesotaCare-0--0-

221.14The forecast amounts in fiscal years 2016 221.15and 2017 for the low-income uninsured 221.16children's health program under Minnesota 221.17Statutes, section 256L.30, must be from the 221.18general fund.

221.19(e) Medical Assistance(1,858,000)83,258,000

221.20(f) Alternative Care-0-965,000

221.21Subd. 4.Grant Programs

221.22(a) Children's Services Grants-0-(3,000)

221.23Base adjustment. The general fund base is 221.24increased by $9,000 in fiscal year 2017.

221.25(b) Child and Economic Support Grants-0-1,500,000

221.26$500,000 is for the safe harbor shelter and 221.27housing fund for housing and supportive 221.28services for youth who are sexually exploited.221.29$1,000,000 is for purposes of the Homeless 221.30Youth Act under Minnesota Statutes, section 221.31256K.45. This appropriation is available 221.32until expended.

222.1(c) Aging and Adult Services Grants(15,000)1,212,000

222.2$250,000 in fiscal year 2015 is for the 222.3Minnesota Board on Aging for congregate 222.4dining services under Minnesota Statutes, 222.5section 256.9752. This is a onetime 222.6appropriation and is available until expended.222.7Base adjustment. The general fund base is 222.8decreased by $5,000 in fiscal year 2016 and 222.9increased by $8,000 in fiscal year 2017.

222.10(d) Deaf and Hard-of-Hearing Grants-0-81,000

222.11Base adjustment. The general fund base is 222.12increased by $9,000 in fiscal years 2016 and 222.132017.

222.14(e) Disabilities Grants-0-1,267,000

222.15Base adjustment. The general fund base is 222.16increased by $281,000 in fiscal year 2016 222.17and $292,000 in fiscal year 2017.

222.18(f) Adult Mental Health Grants-0-1,000,000

222.19This appropriation is for intensive community 222.20rehabilitation services through April 30, 222.212016.222.22Base adjustment. The general fund base is 222.23decreased by $247,000 in fiscal year 2016 222.24and $1,000,000 in fiscal year 2017.

222.25Subd. 5.State-Operated Services

222.26(a) SOS Mental Health-0-423,000

222.27Base adjustment. The general fund base is 222.28increased by $107,000 in fiscal years 2016 222.29and 2017.

222.30(b) SOS Enterprise Services-0--0-

222.31Community Addiction Recovery 222.32Enterprise deficiency funding.223.1Notwithstanding Minnesota Statutes, section 223.2254B.06, subdivision 1, $4,000,000 is 223.3transferred in fiscal years 2014 and 2015 only 223.4from the consolidated chemical dependency 223.5treatment fund administrative account in the 223.6special revenue fund and deposited into the 223.7enterprise fund for the Community Addiction 223.8Recovery Enterprise. This paragraph is 223.9effective the day following final enactment.

223.10Subd. 6.Sex Offender Program-0-1,250,000

223.11Court-ordered experts.  $1,250,000 in 223.12fiscal year 2014 is for the commissioner to 223.13comply with the United States District Court 223.14order of February 20, 2014, in the matter of 223.15Karsjens et al. v. Jesson et al. For purposes 223.16of Minnesota Statutes, section 246B.10, 223.17activities funded by this appropriation are 223.18not considered part of the cost of care. This 223.19appropriation is onetime and is available 223.20until June 30, 2017. This paragraph expires 223.21June 30, 2017.223.22Base adjustment. The general fund base is 223.23decreased by $1,250,000 in fiscal years 2016 223.24and 2017.

223.25Subd. 7.Technical Activities-0-352,000

223.26This appropriation is from the federal TANF 223.27fund.223.28Base adjustment. The federal TANF fund 223.29base is increased by $684,000 in fiscal year 223.302016 and $1,207,000 in fiscal year 2017.

223.31Sec. 3. COMMISSIONER OF HEALTH.

223.32Subdivision 1.Total Appropriation$767,000$ 3,757,000

223.33Appropriations by Fund223.3420142015224.1General950,000 4,035,000224.2224.3State Government Special Revenue817,000722,000224.4Health Care Access(1,000,000)(1,000,000)

224.5Subd. 2.Health Improvement

224.6Appropriations by Fund224.7General(25,000) 2,025,000224.8224.9State Government Special Revenue-0-14,000

224.10$1,000,000 of the general fund appropriation 224.11is for grants for comprehensive services, 224.12including trauma-informed, culturally 224.13specific services, for youth who are sexually 224.14exploited. The commissioner may use up 224.15to 6.5 percent of these funds, not to exceed 224.16$100,000, for the administration of these 224.17grants.224.18$100,000 of the general fund appropriation 224.19in fiscal year 2015 is for a grant to a 224.20Somali-based health care organization 224.21located in Minnesota. The grant must be 224.22used to address health inequities experienced 224.23by first generation Somali women by 224.24creating cultural awareness and education 224.25for health care professionals and the Somali 224.26community. The information developed 224.27must be culturally specific in order to 224.28improve Somali women's access to maternal 224.29health and preventive care; reduce infant 224.30mortality; and increase health literacy. The 224.31grant recipient must use community-based 224.32participatory research focusing on Somali 224.33women centered programs, and must develop 224.34a culturally appropriate methodology 224.35to measure program effectiveness in 224.36achieving better health outcomes for Somali 225.1women. The grant recipient must report 225.2the organization's outcomes in terms of 225.3developing best practices for providing 225.4culturally appropriate health care to the 225.5commissioner by September 1, 2016. This is 225.6a onetime appropriation.225.7Healthy Housing Grants. (a) $100,000 of 225.8the general fund appropriation in fiscal year 225.92015 is for education and training grants 225.10under Minnesota Statutes, section 144.9513, 225.11subdivision 3.225.12(b) $300,000 of the general fund 225.13appropriation in fiscal year 2015 is for 225.14healthy homes implementation grants under 225.15Minnesota Statutes, section 144.9513, 225.16subdivision 4.225.17(c) $100,000 of the general fund 225.18appropriation in fiscal year 2015 is for 225.19lead poisoning prevention activities under 225.20Minnesota Statutes, sections 144.9501 to 225.21144.9512.225.22(d) No more than one full-time employee 225.23may be hired to administer the grants under 225.24Minnesota Statutes, section 144.9513.225.25Home Visiting Pilot Project for Highest 225.26Risk Families. $400,000 in fiscal year 225.272015 is for a pilot project to expand 225.28evidence-based high-quality home visiting, 225.29focusing on the youngest children living in 225.30the highest risk families receiving assistance 225.31through the Minnesota family investment 225.32program under Minnesota Statutes, chapter 225.33256J, in communities served by two 225.34counties, one county in the seven-county 225.35metropolitan area and one nonmetropolitan 226.1county. The commissioner of health shall 226.2consult with the commissioner of human 226.3services and the commissioner of education 226.4on the administration of the pilot program. 226.5The commissioner of health shall provide a 226.6formative evaluation of the pilot project to 226.7the chairs and ranking minority members of 226.8the legislative committees with jurisdiction 226.9over health and human services policy and 226.10finance by January 1, 2016. The evaluation 226.11must include the identification of populations 226.12being served, including geographic area, risk 226.13factors, and demographics; and strategies 226.14being used to coordinate health, social 226.15services, and other community resources. 226.16This is a onetime appropriation and is 226.17available until expended.226.18Base Level Adjustment. The general fund 226.19base is decreased by $550,000 in fiscal year 226.202016 and $500,000 in fiscal year 2017. The 226.21state government special revenue fund base 226.22is decreased by $11,000 in fiscal years 2016 226.23and 2017.

226.24Subd. 3.Policy Quality and Compliance

226.25Appropriations by Fund226.26General-0-2,010,000226.27226.28State Government Special Revenue-0-48,000226.29Health Care Access(1,000,000)(1,000,000)

226.30Health Care Grants for Uninsured 226.31Individuals. (a) $100,000 of the general 226.32fund appropriation in fiscal year 2015 is 226.33for dental provider grants in article 20, 226.34section 7, subdivision 1. This is a onetime 226.35appropriation and is available until expended.227.1(b) $350,000 of the general fund 227.2appropriation in fiscal year 2015 is for 227.3community mental health program grants in 227.4article 20, section 7, subdivision 2. This is a 227.5onetime appropriation and is available until 227.6expended.227.7(c) $1,200,000 of the general fund 227.8appropriation in fiscal year 2015 is for the 227.9emergency medical assistance outlier grant 227.10program in article 20, section 7, subdivision 227.113. This is a onetime appropriation and is 227.12available until expended.227.13(d) $350,000 of the general fund 227.14appropriation in fiscal year 2015 is for 227.15community health center grants under 227.16Minnesota Statutes, section 145.9269. A 227.17community health center that receives a grant 227.18from this appropriation is not eligible for a 227.19grant under paragraph (b). This is a onetime 227.20appropriation and is available until expended.227.21(e) The commissioner may use up to one 227.22percent of the appropriations for health care 227.23grants for uninsured individuals in fiscal year 227.242015 only for grant administration.227.25Base level adjustment. The general fund 227.26base is decreased by $2,000,000 in fiscal 227.27years 2016 and 2017.

227.28Subd. 4.Health Protection817,000648,000

227.29This appropriation is from the state 227.30government special revenue fund.

227.31Subd. 5.Administrative Support Services

227.32Appropriations by Fund227.33General975,000-0-227.34227.35State Government Special Revenue-0-12,000

228.1Lawsuit settlement. The general fund 228.2appropriation in fiscal year 2014 is a onetime 228.3appropriation for the cost of settling the 228.4lawsuit Bearder v. State of Minnesota.228.5Base adjustment. The state government 228.6special revenue fund base is increased by 228.7$19,000 in fiscal years 2016 and 2017.

228.8228.9228.10Sec. 4. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES.$-0-$150,000

228.11    Sec. 5. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108, 228.12article 6, section 32, is amended to read:228.13    Sec. 6. TRANSFER.228.14(a) The commissioner of management and budget shall transfer from the health care 228.15access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000 228.16in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal 228.17year 2017.228.18(b) The commissioner of human services shall determine the difference between the 228.19actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds 228.20and parents and relative caretaker populations with income between 100 and 138 percent of 228.21the federal poverty guidelines and the cost of adding those populations that was estimated 228.22during the 2013 legislative session based on the data from the February 2013 forecast.228.23(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall 228.24certify and report to the commissioner of management and budget the actual or forecasted228.25 estimated  cost difference of adding 19- and 20-year-olds and parents and relative caretaker 228.26populations with income between 100 and 138 percent of the federal poverty guidelines, 228.27as determined under paragraph (b), to the commissioner of management and budget at 228.28least four weeks prior to the release of a forecast under Minnesota Statutes, section 228.2916A.103
         , of each fiscal year.228.30(d) No later than three weeks before the release of the forecast For fiscal years 2014 to 228.312017, forecasts  under Minnesota Statutes, section 
         16A.103, prepared by the commissioner 228.32of management and budget shall reduce the include actual or estimated adjustments to 228.33health care access fund transfer transfers  in paragraph (a), by the cumulative differences in 228.34costs reported by the commissioner of human services under according to  paragraph (c)228.35 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under 229.1paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year, 229.2the amount of the cumulative cost differences determined under paragraph (b) is less than 229.3the amount of the original appropriation, the appropriation for that year must be zero.229.4(e) For each fiscal year from 2014 to 2017, the commissioner of management and 229.5budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in 229.6costs reported by the commissioner of human services under paragraph (c). If, for any 229.7fiscal year, the amount of the cumulative difference in costs reported under paragraph (c) 229.8is positive, no adjustment shall be made.229.9EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.229.10    Sec. 6. Laws 2013, chapter 108, article 14, section 2, subdivision 3, is amended to read:

229.11229.12Subd. 3.TANF Transfer to Federal Child Care and Development Fund

229.13(a) The following TANF fund amounts 229.14are appropriated to the commissioner for 229.15purposes of MFIP/transition year child care 229.16assistance under Minnesota Statutes, section 229.17119B.05
         :229.18(1) fiscal year 2014; $14,020,000; and229.19(2) fiscal year 2015, $14,020,000; 229.20$14,372,000; 229.21(3) fiscal year 2016; $1,378,000; and229.22(4) fiscal year 2017; $3,378,000.229.23(b) The commissioner shall authorize the 229.24transfer of sufficient TANF funds to the 229.25federal child care and development fund to 229.26meet this appropriation and shall ensure that 229.27all transferred funds are expended according 229.28to federal child care and development fund 229.29regulations.229.30    Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:

229.31Subd. 5.Forecasted Programs

230.1The amounts that may be spent from this 230.2appropriation for each purpose are as follows:

230.3(a) MFIP/DWP

230.4Appropriations by Fund230.5General72,583,00076,927,000230.6Federal TANF80,342,00076,851,000

230.7(b) MFIP Child Care Assistance61,701,00069,294,000

230.8(c) General Assistance54,787,00056,068,000

230.9General Assistance Standard. The 230.10commissioner shall set the monthly standard 230.11of assistance for general assistance units 230.12consisting of an adult recipient who is 230.13childless and unmarried or living apart 230.14from parents or a legal guardian at $203. 230.15The commissioner may reduce this amount 230.16according to Laws 1997, chapter 85, article 230.173, section 54.230.18Emergency General Assistance. The 230.19amount appropriated for emergency general 230.20assistance funds is limited to no more 230.21than $6,729,812 in fiscal year 2014 and 230.22$6,729,812 in fiscal year 2015. Funds 230.23to counties shall be allocated by the 230.24commissioner using the allocation method in 230.25Minnesota Statutes, section 
         256D.06.

230.26(d) MN Supplemental Assistance38,646,00039,821,000

230.27(e) Group Residential Housing141,138,000150,988,000

230.28(f) MinnesotaCare297,707,000247,284,000

230.29This appropriation is from the health care 230.30access fund.

230.31(g) Medical Assistance

231.1Appropriations by Fund231.2General4,443,768,0004,431,612,000231.3Health Care Access179,550,000226,081,000

231.4Spending to be apportioned. The 231.5commissioner shall apportion expenditures 231.6under this paragraph consistent with the 231.7requirements of section 12.231.8Support Services for Deaf and 231.9Hard-of-Hearing. $121,000 in fiscal 231.10year 2014 and $141,000 in fiscal year 2015; 231.11and $10,000 in fiscal year 2014 and $13,000 231.12in fiscal year 2015 are from the health care 231.13access fund for the hospital reimbursement 231.14increase in Minnesota Statutes, section 231.15256.969, subdivision 29
         , paragraph (b).231.16Disproportionate Share Payments.231.17Effective for services provided on or after 231.18July 1, 2011, through June 30, 2015, the 231.19commissioner of human services shall 231.20deposit, in the health care access fund, 231.21additional federal matching funds received 231.22under Minnesota Statutes, section 
         256B.199, 231.23paragraph (e), as disproportionate share 231.24hospital payments for inpatient hospital 231.25services provided under MinnesotaCare to 231.26lawfully present noncitizens who are not 231.27eligible for MinnesotaCare with federal 231.28financial participation due to immigration 231.29status. The amount deposited shall not exceed 231.30$2,200,000 for the time period specified.231.31Funding for Services Provided to EMA 231.32Recipients. $2,200,000 in fiscal year 2014 is 231.33from the health care access fund to provide 231.34services to emergency medical assistance 231.35recipients under Minnesota Statutes, section 232.1256B.06, subdivision 4
         , paragraph (l). This 232.2is a onetime appropriation and is available in 232.3either year of the biennium.232.4Base level adjustment. For fiscal years 2016 232.5and 2017 only, the health care access fund 232.6base for medical assistance is $221,035,000 232.7in fiscal year 2016 and $221,035,000 in fiscal 232.8year 2017.

232.9(h) Alternative Care50,776,00054,922,000

232.10Alternative Care Transfer. Any money 232.11allocated to the alternative care program that 232.12is not spent for the purposes indicated does 232.13not cancel but shall be transferred to the 232.14medical assistance account.

232.15(i) CD Treatment Fund81,440,00074,875,000

232.16Balance Transfer. The commissioner must 232.17transfer $18,188,000 from the consolidated 232.18chemical dependency treatment fund to the 232.19general fund by September 30, 2013.232.20    Sec. 8. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 232.21Laws 2013, chapter 144, section 25, is amended to read:

232.22Subd. 6.Grant Programs

232.23The amounts that may be spent from this 232.24appropriation for each purpose are as follows:

232.25(a) Support Services Grants

232.26Appropriations by Fund232.27General8,915,00013,333,000232.28Federal TANF94,611,00094,611,000

232.29Paid Work Experience. $2,168,000 232.30each year in fiscal years 2015 and 2016 232.31is from the general fund for paid work 232.32experience for long-term MFIP recipients. 232.33Paid work includes full and partial wage 233.1subsidies and other related services such as 233.2job development, marketing, preworksite 233.3training, job coaching, and postplacement 233.4services. These are onetime appropriations. 233.5Unexpended funds for fiscal year 2015 do not 233.6cancel, but are available to the commissioner 233.7for this purpose in fiscal year 2016.233.8Work Study Funding for MFIP 233.9Participants. $250,000 each year in fiscal 233.10years 2015 and 2016 is from the general fund 233.11to pilot work study jobs for MFIP recipients 233.12in approved postsecondary education 233.13programs. This is a onetime appropriation. 233.14Unexpended funds for fiscal year 2015 do 233.15not cancel, but are available for this purpose 233.16in fiscal year 2016.233.17Local Strategies to Reduce Disparities.233.18$2,000,000 each year in fiscal years 2015 233.19and 2016 is from the general fund for 233.20local projects that focus on services for 233.21subgroups within the MFIP caseload 233.22who are experiencing poor employment 233.23outcomes. These are onetime appropriations. 233.24Unexpended funds for fiscal year 2015 do not 233.25cancel, but are available to the commissioner 233.26for this purpose in fiscal year 2016.233.27Home Visiting Collaborations for MFIP 233.28Teen Parents. $200,000 per year in fiscal 233.29years 2014 and 2015 is from the general fund 233.30and $200,000 in fiscal year 2016 is from the 233.31federal TANF fund for technical assistance 233.32and training to support local collaborations 233.33that provide home visiting services for 233.34MFIP teen parents. The general fund 234.1appropriation is onetime. The federal TANF 234.2fund appropriation is added to the base.234.3Performance Bonus Funds for Counties.234.4The TANF fund base is increased by 234.5$1,500,000 each year in fiscal years 2016 234.6and 2017. The commissioner must allocate 234.7this amount each year to counties that exceed 234.8their expected range of performance on the 234.9annualized three-year self-support index 234.10as defined in Minnesota Statutes, section 234.11256J.751, subdivision 2
         , clause (6). This is a 234.12permanent base adjustment. Notwithstanding 234.13any contrary provisions in this article, this 234.14provision expires June 30, 2016.234.15Base Adjustment. The general fund base is 234.16decreased by $200,000 in fiscal year 2016 234.17and $4,618,000 in fiscal year 2017. The 234.18TANF fund base is increased by $1,700,000 234.19in fiscal years 2016 and 2017.

234.20234.21(b) Basic Sliding Fee Child Care Assistance Grants36,836,00042,318,000

234.22Base Adjustment. The general fund base is 234.23increased by $3,778,000 in fiscal year 2016 234.24and by $3,849,000 in fiscal year 2017.

234.25(c) Child Care Development Grants1,612,0001,737,000

234.26(d) Child Support Enforcement Grants50,00050,000

234.27Federal Child Support Demonstration 234.28Grants. Federal administrative 234.29reimbursement resulting from the federal 234.30child support grant expenditures authorized 234.31under United States Code, title 42, section 234.321315, is appropriated to the commissioner 234.33for this activity.

234.34(e) Children's Services Grants

235.1Appropriations by Fund235.2General49,760,00052,961,000235.3Federal TANF140,000140,000

235.4Adoption Assistance and Relative Custody 235.5Assistance.$37,453,000 $36,456,000235.6 in fiscal year 2014 and $37,453,000235.7 $36,855,000 in fiscal year 2015 is for the 235.8adoption assistance and relative custody 235.9assistance programs. The commissioner 235.10shall determine with the commissioner of 235.11Minnesota Management and Budget the 235.12appropriation for Northstar Care for Children 235.13effective January 1, 2015. The commissioner 235.14may transfer appropriations for adoption 235.15assistance, relative custody assistance, and 235.16Northstar Care for Children between fiscal 235.17years and among programs to adjust for 235.18transfers across the programs.235.19Title IV-E Adoption Assistance. Additional 235.20federal reimbursements to the state as a result 235.21of the Fostering Connections to Success 235.22and Increasing Adoptions Act's expanded 235.23eligibility for Title IV-E adoption assistance 235.24are appropriated for postadoption services, 235.25including a parent-to-parent support network.235.26Privatized Adoption Grants. Federal 235.27reimbursement for privatized adoption grant 235.28and foster care recruitment grant expenditures 235.29is appropriated to the commissioner for 235.30adoption grants and foster care and adoption 235.31administrative purposes.235.32Adoption Assistance Incentive Grants.235.33Federal funds available during fiscal years 235.342014 and 2015 for adoption incentive grants 236.1are appropriated for postadoption services, 236.2including a parent-to-parent support network.236.3Base Adjustment. The general fund base is 236.4increased by $5,913,000 in fiscal year 2016 236.5and by $10,297,000 in fiscal year 2017.

236.6(f) Child and Community Service Grants53,301,00053,301,000

236.7(g) Child and Economic Support Grants21,047,00020,848,000

236.8Minnesota Food Assistance Program. 236.9Unexpended funds for the Minnesota food 236.10assistance program for fiscal year 2014 do 236.11not cancel but are available for this purpose 236.12in fiscal year 2015.236.13Transitional Housing. $250,000 each year 236.14is for the transitional housing programs under 236.15Minnesota Statutes, section 
         256E.33.236.16Emergency Services. $250,000 each year 236.17is for emergency services grants under 236.18Minnesota Statutes, section 
         256E.36.236.19Family Assets for Independence. $250,000 236.20each year is for the Family Assets for 236.21Independence Minnesota program. This 236.22appropriation is available in either year of the 236.23biennium and may be transferred between 236.24fiscal years.236.25Food Shelf Programs. $375,000 in fiscal 236.26year 2014 and $375,000 in fiscal year 236.272015 are for food shelf programs under 236.28Minnesota Statutes, section 
         256E.34. If the 236.29appropriation for either year is insufficient, 236.30the appropriation for the other year is 236.31available for it. Notwithstanding Minnesota 236.32Statutes, section 
         256E.34, subdivision 4, no 236.33portion of this appropriation may be used 236.34by Hunger Solutions for its administrative 237.1expenses, including but not limited to rent 237.2and salaries.237.3Homeless Youth Act. $2,000,000 in fiscal 237.4year 2014 and $2,000,000 in fiscal year 2015 237.5is for purposes of Minnesota Statutes, section 237.6256K.45
         .237.7Safe Harbor Shelter and Housing. 237.8$500,000 in fiscal year 2014 and $500,000 in 237.9fiscal year 2015 is for a safe harbor shelter 237.10and housing fund for housing and supportive 237.11services for youth who are sexually exploited.237.12High-risk adults. $200,000 in fiscal 237.13year 2014 is for a grant to the nonprofit 237.14organization selected to administer the 237.15demonstration project for high-risk adults 237.16under Laws 2007, chapter 54, article 1, 237.17section 19, in order to complete the project. 237.18This is a onetime appropriation.

237.19(h) Health Care Grants

237.20Appropriations by Fund237.21General190,000190,000237.22Health Care Access190,000190,000

237.23Emergency Medical Assistance Referral 237.24and Assistance Grants. (a) The 237.25commissioner of human services shall 237.26award grants to nonprofit programs that 237.27provide immigration legal services based 237.28on indigency to provide legal services for 237.29immigration assistance to individuals with 237.30emergency medical conditions or complex 237.31and chronic health conditions who are not 237.32currently eligible for medical assistance 237.33or other public health care programs, but 237.34who may meet eligibility requirements with 237.35immigration assistance.238.1(b) The grantees, in collaboration with 238.2hospitals and safety net providers, shall 238.3provide referral assistance to connect 238.4individuals identified in paragraph (a) with 238.5alternative resources and services to assist in 238.6meeting their health care needs. $100,000 238.7is appropriated in fiscal year 2014 and 238.8$100,000 in fiscal year 2015. This is a 238.9onetime appropriation.238.10Base Adjustment. The general fund is 238.11decreased by $100,000 in fiscal year 2016 238.12and $100,000 in fiscal year 2017.

238.13(i) Aging and Adult Services Grants14,827,00015,010,000

238.14Base Adjustment. The general fund is 238.15increased by $1,150,000 in fiscal year 2016 238.16and $1,151,000 in fiscal year 2017.238.17Community Service Development 238.18Grants and Community Services Grants.238.19Community service development grants and 238.20community services grants are reduced by 238.21$1,150,000 each year. This is a onetime 238.22reduction.

238.23(j) Deaf and Hard-of-Hearing Grants1,771,0001,785,000

238.24(k) Disabilities Grants18,605,00018,823,000

238.25Advocating Change Together. $310,000 in 238.26fiscal year 2014 is for a grant to Advocating 238.27Change Together (ACT) to maintain and 238.28promote services for persons with intellectual 238.29and developmental disabilities throughout 238.30the state. This appropriation is onetime. Of 238.31this appropriation:238.32(1) $120,000 is for direct costs associated 238.33with the delivery and evaluation of 238.34peer-to-peer training programs administered 239.1throughout the state, focusing on education, 239.2employment, housing, transportation, and 239.3voting;239.4(2) $100,000 is for delivery of statewide 239.5conferences focusing on leadership and 239.6skill development within the disability 239.7community; and239.8(3) $90,000 is for administrative and general 239.9operating costs associated with managing 239.10or maintaining facilities, program delivery, 239.11staff, and technology.239.12Base Adjustment. The general fund base 239.13is increased by $535,000 in fiscal year 2016 239.14and by $709,000 in fiscal year 2017.

239.15(l) Adult Mental Health Grants

239.16Appropriations by Fund239.17General71,199,00069,530,000239.18Health Care Access750,000750,000239.19Lottery Prize1,733,0001,733,000

239.20Compulsive Gambling Treatment. Of the 239.21general fund appropriation, $602,000 in 239.22fiscal year 2014 and $747,000 in fiscal year 239.232015 are for compulsive gambling treatment 239.24under Minnesota Statutes, section 
         297E.02, 239.25subdivision 3
         , paragraph (c).239.26Problem Gambling. $225,000 in fiscal year 239.272014 and $225,000 in fiscal year 2015 is 239.28appropriated from the lottery prize fund for a 239.29grant to the state affiliate recognized by the 239.30National Council on Problem Gambling. The 239.31affiliate must provide services to increase 239.32public awareness of problem gambling, 239.33education and training for individuals and 239.34organizations providing effective treatment 239.35services to problem gamblers and their 240.1families, and research relating to problem 240.2gambling.240.3Funding Usage. Up to 75 percent of a fiscal 240.4year's appropriations for adult mental health 240.5grants may be used to fund allocations in that 240.6portion of the fiscal year ending December 240.731.240.8Base Adjustment. The general fund base is 240.9decreased by $4,427,000 in fiscal years 2016 240.10and 2017.240.11Mental Health Pilot Project. $230,000 240.12each year is for a grant to the Zumbro 240.13Valley Mental Health Center. The grant 240.14shall be used to implement a pilot project 240.15to test an integrated behavioral health care 240.16coordination model. The grant recipient must 240.17report measurable outcomes and savings 240.18to the commissioner of human services 240.19by January 15, 2016. This is a onetime 240.20appropriation.240.21High-risk adults. $200,000 in fiscal 240.22year 2014 is for a grant to the nonprofit 240.23organization selected to administer the 240.24demonstration project for high-risk adults 240.25under Laws 2007, chapter 54, article 1, 240.26section 19, in order to complete the project. 240.27This is a onetime appropriation.

240.28(m) Child Mental Health Grants18,246,00020,636,000

240.29Text Message Suicide Prevention 240.30Program. $625,000 in fiscal year 2014 and 240.31$625,000 in fiscal year 2015 is for a grant 240.32to a nonprofit organization to establish and 240.33implement a statewide text message suicide 240.34prevention program. The program shall 240.35implement a suicide prevention counseling 241.1text line designed to use text messaging to 241.2connect with crisis counselors and to obtain 241.3emergency information and referrals to 241.4local resources in the local community. The 241.5program shall include training within schools 241.6and communities to encourage the use of the 241.7program.241.8Mental Health First Aid Training. $22,000 241.9in fiscal year 2014 and $23,000 in fiscal 241.10year 2015 is to train teachers, social service 241.11personnel, law enforcement, and others who 241.12come into contact with children with mental 241.13illnesses, in children and adolescents mental 241.14health first aid training.241.15Funding Usage. Up to 75 percent of a fiscal 241.16year's appropriation for child mental health 241.17grants may be used to fund allocations in that 241.18portion of the fiscal year ending December 241.1931.

241.20(n) CD Treatment Support Grants1,816,0001,816,000

241.21SBIRT Training. (1) $300,000 each year is 241.22for grants to train primary care clinicians to 241.23provide substance abuse brief intervention 241.24and referral to treatment (SBIRT). This is a 241.25onetime appropriation. The commissioner of 241.26human services shall apply to SAMHSA for 241.27an SBIRT professional training grant.241.28(2) If the commissioner of human services 241.29receives a grant under clause (1) funds 241.30appropriated under this clause, equal to 241.31the grant amount, up to the available 241.32appropriation, shall be transferred to the 241.33Minnesota Organization on Fetal Alcohol 241.34Syndrome (MOFAS). MOFAS must use 241.35the funds for grants. Grant recipients must 242.1be selected from communities that are 242.2not currently served by federal Substance 242.3Abuse Prevention and Treatment Block 242.4Grant funds. Grant money must be used to 242.5reduce the rates of fetal alcohol syndrome 242.6and fetal alcohol effects, and the number of 242.7drug-exposed infants. Grant money may be 242.8used for prevention and intervention services 242.9and programs, including, but not limited to, 242.10community grants, professional eduction, 242.11public awareness, and diagnosis.242.12Fetal Alcohol Syndrome Grant. $180,000 242.13each year from the general fund is for a 242.14grant to the Minnesota Organization on Fetal 242.15Alcohol Syndrome (MOFAS) to support 242.16nonprofit Fetal Alcohol Spectrum Disorders 242.17(FASD) outreach prevention programs 242.18in Olmsted County. This is a onetime 242.19appropriation.242.20Base Adjustment. The general fund base is 242.21decreased by $480,000 in fiscal year 2016 242.22and $480,000 in fiscal year 2017.242.23EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.242.24    Sec. 9. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

242.25242.26Subdivision 1.Total Appropriation$169,326,000 169,026,000$165,531,000 165,231,000

242.27Appropriations by Fund242.2820142015242.29General79,476,00074,256,000242.30242.31State Government 
                  		Special Revenue48,094,00050,119,000242.32Health Care Access29,743,00029,143,000242.33Federal TANF11,713,00011,713,000242.34Special Revenue300,000300,000

243.1The amounts that may be spent for each 243.2purpose are specified in the following 243.3subdivisions.243.4    Sec. 10. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

243.5Subd. 4.Health Protection

243.6Appropriations by Fund243.7General9,201,0009,201,000243.8243.9State Government 
                  		Special Revenue32,633,00032,636,000243.10Special Revenue300,000300,000

243.11Infectious Disease Laboratory. Of the 243.12general fund appropriation, $200,000 in 243.13fiscal year 2014 and $200,000 in fiscal year 243.142015 are to monitor infectious disease trends 243.15and investigate infectious disease outbreaks.243.16Surveillance for Elevated Blood Lead 243.17Levels. Of the general fund appropriation, 243.18$100,000 in fiscal year 2014 and $100,000 243.19in fiscal year 2015 are for the blood lead 243.20surveillance system under Minnesota 243.21Statutes, section 
         144.9502.243.22Base Level Adjustment. The state 243.23government special revenue base is increased 243.24by $6,000 in fiscal year 2016 and by $13,000 243.25in fiscal year 2017.243.26    Sec. 11. Laws 2013, chapter 108, article 14, section 4, subdivision 8, is amended to read:

243.27243.28Subd. 8.Board of Nursing Home Administrators3,742,0002,252,000

243.29Administrative Services Unit - Operating 243.30Costs. Of this appropriation, $676,000 243.31in fiscal year 2014 and $626,000 in 243.32fiscal year 2015 are for operating costs 243.33of the administrative services unit. The 243.34administrative services unit may receive 244.1and expend reimbursements for services 244.2performed by other agencies.244.3Administrative Services Unit - Volunteer 244.4Health Care Provider Program. Of this 244.5appropriation, $150,000 in fiscal year 2014 244.6and $150,000 in fiscal year 2015 are to pay 244.7for medical professional liability coverage 244.8required under Minnesota Statutes, section 244.9214.40
         .244.10Administrative Services Unit - Contested 244.11Cases and Other Legal Proceedings. Of 244.12this appropriation, $200,000 in fiscal year 244.132014 and $200,000 in fiscal year 2015 are 244.14for costs of contested case hearings and other 244.15unanticipated costs of legal proceedings 244.16involving health-related boards funded 244.17under this section. Upon certification of a 244.18health-related board to the administrative 244.19services unit that the costs will be incurred 244.20and that there is insufficient money available 244.21to pay for the costs out of money currently 244.22available to that board, the administrative 244.23services unit is authorized to transfer money 244.24from this appropriation to the board for 244.25payment of those costs with the approval 244.26of the commissioner of management and 244.27budget. This appropriation does not cancel 244.28and is available until expended.244.29This appropriation includes $44,000 in 244.30fiscal year 2014 for rulemaking. This is 244.31a onetime appropriation. $1,441,000 in 244.32fiscal year 2014 and $420,000 in fiscal year 244.332015 are for the development of a shared 244.34disciplinary, regulatory, licensing, and 244.35information management system. $391,000 245.1in fiscal year 2014 is a onetime appropriation 245.2for retirement costs in the health-related 245.3boards. This funding may be transferred to 245.4the health boards incurring retirement costs. 245.5These funds are available either year of the 245.6biennium.245.7This appropriation includes $16,000 in fiscal 245.8years 2014 and 2015 for evening security, 245.9$2,000 in fiscal years 2014 and 2015 for a 245.10state vehicle lease, and $18,000 in fiscal 245.11years 2014 and 2015 for shared office space 245.12and administrative support. $205,000 in 245.13fiscal year 2014 and $221,000 in fiscal year 245.142015 are for shared information technology 245.15services, equipment, and maintenance.245.16The remaining balance of the state 245.17government special revenue fund 245.18appropriation in Laws 2011, First Special 245.19Session chapter 9, article 10, section 8, 245.20subdivision 8, for Board of Nursing Home 245.21Administrators rulemaking, estimated to 245.22be $44,000, is canceled, and the remaining 245.23balance of the state government special 245.24revenue fund appropriation in Laws 2011, 245.25First Special Session chapter 9, article 10, 245.26section 8, subdivision 8, for electronic 245.27licensing system adaptors, estimated to be 245.28$761,000, and for the development and 245.29implementation of a disciplinary, regulatory, 245.30licensing, and information management 245.31system, estimated to be $1,100,000, are 245.32canceled. This paragraph is effective the day 245.33following final enactment.245.34Base Adjustment. The base is decreased by 245.35$370,000 in fiscal years 2016 and 2017.246.1EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.246.2    Sec. 12. Laws 2013, chapter 108, article 14, section 12, is amended to read:246.3    Sec. 12. APPROPRIATION ADJUSTMENTS.246.4(a) The general fund appropriation in section 2, subdivision 5, paragraph (g), 246.5includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015; 246.6$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical 246.7assistance eligibility and administration changes related to:246.8(1) eligibility for children age two to 18 with income up to 275 percent of the federal 246.9poverty guidelines;246.10(2) eligibility for pregnant women with income up to 275 percent of the federal 246.11poverty guidelines;246.12(3) Affordable Care Act enrollment and renewal processes, including elimination 246.13of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes 246.14in verification requirements, and other changes in the eligibility determination and 246.15enrollment and renewal process;246.16(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;246.17(5) eligibility related to spousal impoverishment provisions for waiver recipients; and246.18(6) presumptive eligibility determinations by hospitals.246.19(b) the commissioner of human services shall determine the difference between the 246.20actual or forecasted estimated  costs to the medical assistance program attributable to 246.21the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a), 246.22clauses (1) to (6), that were estimated during the 2013 legislative session based on data 246.23from the 2013 February forecast. The costs in this paragraph must be calculated between 246.24January 1, 2014, and June 30, 2017.246.25(c) For each fiscal year from 2014 to 2017, the commissioner of human services 246.26shall certify the actual or forecasted estimated  cost differences to the medical assistance 246.27program determined under paragraph (b), and report the difference in costs to the 246.28commissioner of management and budget at least four weeks prior to a forecast under 246.29Minnesota Statutes, section 
         16A.103. No later than three weeks before the release of 246.30the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section 246.3116A.103
         , prepared by the commissioner of management and budget shall reduce include 246.32actual or estimated adjustments to  the health care access fund appropriation in section 246.332, subdivision 5, paragraph (g), by the cumulative difference in costs determined in246.34according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost 246.35differences determined under paragraph (b) is positive, no adjustment shall be made to the 247.1health care access fund appropriation. If for any fiscal year, the amount of the cumulative 247.2cost differences determined under paragraph (b) is less than the original appropriation, the 247.3appropriation for that fiscal year is zero.247.4(d) For each fiscal year from 2014 to 2017, the commissioner of management and 247.5budget must adjust the health care access fund appropriation by the cumulative difference 247.6in costs reported by the commissioner of human services under paragraph (b). If, for any 247.7fiscal year, the amount of the cumulative difference in costs determined under paragraph 247.8(b) is positive, no adjustment shall be made to the health care access fund appropriation.247.9(e) This section expires on January 1, 2018.247.10EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.247.11    Sec. 13. DEDICATED FUNDS REPORT.247.12By October 1, 2014, and with each February forecast thereafter, the commissioner of 247.13human services must provide to the chairs and ranking minority members of the house of 247.14representatives and senate committees with jurisdiction over health and human services 247.15finance a report of all dedicated funds and accounts. The report must include the name 247.16of the dedicated fund or account; a description of its purpose, and the legal citation for 247.17its creation; the beginning balance, projected receipts, and expenditures; and the ending 247.18balance for each fund and account.247.19    Sec. 14. EXPIRATION OF UNCODIFIED LANGUAGE.247.20All uncodified language in this article expires on June 30, 2015, unless a different 247.21expiration date is specified.247.22ARTICLE 15247.23CHEMICAL AND MENTAL HEALTH247.24    Section 1. Minnesota Statutes 2012, section 245.466, is amended by adding a 247.25subdivision to read:247.26    Subd. 3a.Transition plan related to termination of contract.Counties must 247.27prepare a transition plan that provides for continuity of care in the event of contract 247.28termination with a community mental health center under section 245.715, or a community 247.29support services program under section 245.462, subdivision 6. The county shall provide 247.30at least 90 days' notice of the termination to the contracted agency and the commissioner 247.31of human services. The transition plan must provide information to clients on how to 247.32access medical records and how to transfer to other providers.248.1    Sec. 2. Minnesota Statutes 2012, section 245A.04, is amended by adding a subdivision 248.2to read:248.3    Subd. 15a.Plan for transfer of clients and records upon closure.(a) Except for 248.4child care providers, an applicant for initial or continuing licensure must submit a written 248.5plan indicating how the agency will provide for the transfer of clients and records for both 248.6open and closed cases if the agency closes. The plan must provide for managing private 248.7and confidential information concerning agency clients. The plan must also provide 248.8for notifying affected clients of the closure at least 25 days prior to closure, including 248.9information on how to access their medical records. A controlling individual of the agency 248.10must annually review and sign the plan.248.11(b) Plans for the transfer of open cases and case records must specify arrangements 248.12the agency will make to transfer clients to another agency or county agency for 248.13continuation of services and to transfer the case record with the client.248.14(c) Plans for the transfer of closed case records must be accompanied by a signed 248.15agreement or other documentation indicating that a county or a similarly licensed agency 248.16has agreed to accept and maintain the agency's closed case records and to provide 248.17follow-up services as necessary to affected clients.248.18    Sec. 3. Minnesota Statutes 2012, section 253B.066, subdivision 1, is amended to read:248.19    Subdivision 1. Treatment alternatives. If the court orders early intervention 248.20under section 
         253B.065, subdivision 5, the court may include in its order a variety of 248.21treatment alternatives including, but not limited to, day treatment, medication compliance 248.22monitoring, assertive community treatment, crisis assessment and stabilization, partial 248.23hospitalization, and short-term hospitalization not to exceed 21 days.248.24If the court orders short-term hospitalization and the proposed patient will not go 248.25voluntarily, the court may direct a health officer, peace officer, or other person to take the 248.26person into custody and transport the person to the hospital.248.27    Sec. 4. Minnesota Statutes 2012, section 254B.12, is amended to read:248.28254B.12 RATE METHODOLOGY.248.29    Subdivision 1.CCDTF rate methodology established. The commissioner shall 248.30establish a new rate methodology for the consolidated chemical dependency treatment 248.31fund. The new methodology must replace county-negotiated rates with a uniform 248.32statewide methodology that must include a graduated reimbursement scale based on the 248.33patients' level of acuity and complexity. At least biennially, the commissioner shall review 248.34the financial information provided by vendors to determine the need for rate adjustments.249.1    Subd. 2.Payment methodology for state-operated vendors.(a) Notwithstanding 249.2subdivision 1, the commissioner shall seek federal authority to develop a separate 249.3payment methodology for chemical dependency treatment services provided under the 249.4consolidated chemical dependency treatment fund by a state-operated vendor. This 249.5payment methodology is effective for services provided on or after October 1, 2015, or on 249.6or after the receipt of federal approval, whichever is later.249.7(b) Before implementing an approved payment methodology under paragraph 249.8(a), the commissioner must also receive any necessary legislative approval of required 249.9changes to state law or funding.249.10    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.06, subdivision 4, is 249.11amended to read:249.12    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited 249.13to citizens of the United States, qualified noncitizens as defined in this subdivision, and 249.14other persons residing lawfully in the United States. Citizens or nationals of the United 249.15States must cooperate in obtaining satisfactory documentary evidence of citizenship or 249.16nationality according to the requirements of the federal Deficit Reduction Act of 2005, 249.17Public Law 109-171.249.18(b) "Qualified noncitizen" means a person who meets one of the following 249.19immigration criteria:249.20(1) admitted for lawful permanent residence according to United States Code, title 8;249.21(2) admitted to the United States as a refugee according to United States Code, 249.22title 8, section 1157;249.23(3) granted asylum according to United States Code, title 8, section 1158;249.24(4) granted withholding of deportation according to United States Code, title 8, 249.25section 1253(h);249.26(5) paroled for a period of at least one year according to United States Code, title 8, 249.27section 1182(d)(5);249.28(6) granted conditional entrant status according to United States Code, title 8, 249.29section 1153(a)(7);249.30(7) determined to be a battered noncitizen by the United States Attorney General 249.31according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 249.32title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;249.33(8) is a child of a noncitizen determined to be a battered noncitizen by the United 249.34States Attorney General according to the Illegal Immigration Reform and Immigrant 250.1Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 250.2Public Law 104-200; or250.3(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 250.4Law 96-422, the Refugee Education Assistance Act of 1980.250.5(c) All qualified noncitizens who were residing in the United States before August 250.622, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 250.7medical assistance with federal financial participation.250.8(d) Beginning December 1, 1996, qualified noncitizens who entered the United 250.9States on or after August 22, 1996, and who otherwise meet the eligibility requirements 250.10of this chapter are eligible for medical assistance with federal participation for five years 250.11if they meet one of the following criteria:250.12(1) refugees admitted to the United States according to United States Code, title 8, 250.13section 1157;250.14(2) persons granted asylum according to United States Code, title 8, section 1158;250.15(3) persons granted withholding of deportation according to United States Code, 250.16title 8, section 1253(h);250.17(4) veterans of the United States armed forces with an honorable discharge for 250.18a reason other than noncitizen status, their spouses and unmarried minor dependent 250.19children; or250.20(5) persons on active duty in the United States armed forces, other than for training, 250.21their spouses and unmarried minor dependent children.250.22 Beginning July 1, 2010, children and pregnant women who are noncitizens 250.23described in paragraph (b) or who are lawfully present in the United States as defined 250.24in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet 250.25eligibility requirements of this chapter, are eligible for medical assistance with federal 250.26financial participation as provided by the federal Children's Health Insurance Program 250.27Reauthorization Act of 2009, Public Law 111-3.250.28(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 250.29are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this 250.30subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 250.31Code, title 8, section 1101(a)(15).250.32(f) Payment shall also be made for care and services that are furnished to noncitizens, 250.33regardless of immigration status, who otherwise meet the eligibility requirements of 250.34this chapter, if such care and services are necessary for the treatment of an emergency 250.35medical condition.251.1(g) For purposes of this subdivision, the term "emergency medical condition" means 251.2a medical condition that meets the requirements of United States Code, title 42, section 251.31396b(v).251.4(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment 251.5of an emergency medical condition are limited to the following:251.6(i) services delivered in an emergency room or by an ambulance service licensed 251.7under chapter 144E that are directly related to the treatment of an emergency medical 251.8condition;251.9(ii) services delivered in an inpatient hospital setting following admission from an 251.10emergency room or clinic for an acute emergency condition; and251.11(iii) follow-up services that are directly related to the original service provided 251.12to treat the emergency medical condition and are covered by the global payment made 251.13to the provider.251.14    (2) Services for the treatment of emergency medical conditions do not include:251.15(i) services delivered in an emergency room or inpatient setting to treat a 251.16nonemergency condition;251.17(ii) organ transplants, stem cell transplants, and related care;251.18(iii) services for routine prenatal care;251.19(iv) continuing care, including long-term care, nursing facility services, home health 251.20care, adult day care, day training, or supportive living services;251.21(v) elective surgery;251.22(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as 251.23part of an emergency room visit;251.24(vii) preventative health care and family planning services;251.25(viii) rehabilitation services;251.26(ix) physical, occupational, or speech therapy;251.27(x) transportation services;251.28(xi) case management;251.29(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;251.30(xiii) dental services;251.31(xiv) hospice care;251.32(xv) audiology services and hearing aids;251.33(xvi) podiatry services;251.34(xvii) chiropractic services;251.35(xviii) immunizations;251.36(xix) vision services and eyeglasses;252.1(xx) waiver services;252.2(xxi) individualized education programs; or252.3(xxii) chemical dependency treatment.252.4(i) Pregnant noncitizens who are ineligible for federally funded medical assistance 252.5because of immigration status, are not covered by a group health plan or health insurance 252.6coverage according to Code of Federal Regulations, title 42, section 457.310, and who 252.7otherwise meet the eligibility requirements of this chapter, are eligible for medical 252.8assistance through the period of pregnancy, including labor and delivery, and 60 days 252.9postpartum, to the extent federal funds are available under title XXI of the Social Security 252.10Act, and the state children's health insurance program.252.11(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation 252.12services from a nonprofit center established to serve victims of torture and are otherwise 252.13ineligible for medical assistance under this chapter are eligible for medical assistance 252.14without federal financial participation. These individuals are eligible only for the period 252.15during which they are receiving services from the center. Individuals eligible under this 252.16paragraph shall not be required to participate in prepaid medical assistance. Beginning 252.17July 1, 2014, the commissioner shall pay claims in full and subsequently bill counties 252.18for the nonfederal share of costs associated with adult mental health targeted case 252.19management services provided under this paragraph.252.20(k) Notwithstanding paragraph (h), clause (2), the following services are covered as 252.21emergency medical conditions under paragraph (f) except where coverage is prohibited 252.22under federal law:252.23(1) dialysis services provided in a hospital or freestanding dialysis facility; and252.24(2) surgery and the administration of chemotherapy, radiation, and related services 252.25necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission 252.26and requires surgery, chemotherapy, or radiation treatment.252.27(l) Effective July 1, 2013, recipients of emergency medical assistance under this 252.28subdivision are eligible for coverage of the elderly waiver services provided under section 252.29256B.0915
         , and coverage of rehabilitative services provided in a nursing facility. The 252.30age limit for elderly waiver services does not apply. In order to qualify for coverage, a 252.31recipient of emergency medical assistance is subject to the assessment and reassessment 252.32requirements of section 
         256B.0911. Initial and continued enrollment under this paragraph 252.33is subject to the limits of available funding.252.34    Sec. 6. Minnesota Statutes 2012, section 256B.0615, subdivision 3, is amended to read:253.1    Subd. 3. Eligibility. Peer support services may be made available to consumers of 253.2(1) the intensive rehabilitative mental health services under section 
         256B.0622; (2) adult 253.3rehabilitative mental health services under section 
         256B.0623; and (3) crisis stabilization 253.4and mental health mobile crisis intervention services under section 
         256B.0624.253.5    Sec. 7. Minnesota Statutes 2012, section 256B.0624, subdivision 2, is amended to read:253.6    Subd. 2. Definitions. For purposes of this section, the following terms have the 253.7meanings given them.253.8(a) "Mental health crisis" is an adult behavioral, emotional, or psychiatric situation 253.9which, but for the provision of crisis response services, would likely result in significantly 253.10reduced levels of functioning in primary activities of daily living, or in an emergency 253.11situation, or in the placement of the recipient in a more restrictive setting, including, but 253.12not limited to, inpatient hospitalization.253.13(b) "Mental health emergency" is an adult behavioral, emotional, or psychiatric 253.14situation which causes an immediate need for mental health services and is consistent 253.15with section 
         62Q.55.253.16A mental health crisis or emergency is determined for medical assistance service 253.17reimbursement by a physician, a mental health professional, or crisis mental health 253.18practitioner with input from the recipient whenever possible.253.19(c) "Mental health crisis assessment" means an immediate face-to-face assessment 253.20by a physician, a mental health professional, or mental health practitioner under the 253.21clinical supervision of a mental health professional, following a screening that suggests 253.22that the adult may be experiencing a mental health crisis or mental health emergency 253.23situation. It includes, when feasible, assessing whether the person might be willing to 253.24voluntarily accept treatment, determining whether the person has an advance directive, 253.25and obtaining information and history from involved family members or caretakers.253.26(d) "Mental health mobile crisis intervention services" means face-to-face, 253.27short-term intensive mental health services initiated during a mental health crisis or mental 253.28health emergency to help the recipient cope with immediate stressors, identify and utilize 253.29available resources and strengths, engage in voluntary treatment, and begin to return to the 253.30recipient's baseline level of functioning.253.31(1) This service is provided on site by a mobile crisis intervention team outside of 253.32an inpatient hospital setting. Mental health mobile crisis intervention services must be 253.33available 24 hours a day, seven days a week.253.34(2) The initial screening must consider other available services to determine which 253.35service intervention would best address the recipient's needs and circumstances.254.1(3) The mobile crisis intervention team must be available to meet promptly 254.2face-to-face with a person in mental health crisis or emergency in a community setting or 254.3hospital emergency room.254.4(4) The intervention must consist of a mental health crisis assessment and a crisis 254.5treatment plan.254.6(5) The team must be available to individuals who are experiencing a co-occurring 254.7substance use disorder, who do not need the level of care provided in a detoxification 254.8facility.254.9(5) (6) The treatment plan must include recommendations for any needed crisis 254.10stabilization services for the recipient, including engagement in treatment planning and 254.11family psychoeducation.254.12(e) "Mental health crisis stabilization services" means individualized mental 254.13health services provided to a recipient following crisis intervention services which are 254.14designed to restore the recipient to the recipient's prior functional level. Mental health 254.15crisis stabilization services may be provided in the recipient's home, the home of a family 254.16member or friend of the recipient, another community setting, or a short-term supervised, 254.17licensed residential program. Mental health crisis stabilization does not include partial 254.18hospitalization or day treatment. Mental health crisis stabilization services includes 254.19family psychoeducation.254.20    Sec. 8. Minnesota Statutes 2012, section 256B.0624, subdivision 5, is amended to read:254.21    Subd. 5. Mobile crisis intervention staff qualifications. For provision of adult 254.22mental health mobile crisis intervention services, a mobile crisis intervention team is 254.23comprised of at least two mental health professionals as defined in section 
         245.462, 254.24subdivision 18
         , clauses (1) to (6), or a combination of at least one mental health 254.25professional and one mental health practitioner as defined in section 
         245.462, subdivision 254.2617
         , with the required mental health crisis training and under the clinical supervision of 254.27a mental health professional on the team. The team must have at least two people with 254.28at least one member providing on-site crisis intervention services when needed. Team 254.29members must be experienced in mental health assessment, crisis intervention techniques, 254.30treatment engagement strategies, working with families, and clinical decision-making 254.31under emergency conditions and have knowledge of local services and resources. 254.32The team must recommend and coordinate the team's services with appropriate local 254.33resources such as the county social services agency, mental health services, and local 254.34law enforcement when necessary.255.1    Sec. 9. Minnesota Statutes 2012, section 256B.0624, subdivision 6, is amended to read:255.2    Subd. 6. Crisis assessment and mobile intervention treatment planning. (a) 255.3Prior to initiating mobile crisis intervention services, a screening of the potential crisis 255.4situation must be conducted. The screening may use the resources of crisis assistance 255.5and emergency services as defined in sections 
         245.462, subdivision 6, and 
         245.469, 255.6subdivisions 1 and 2. The screening must gather information, determine whether a crisis 255.7situation exists, identify parties involved, and determine an appropriate response.255.8(b) If a crisis exists, a crisis assessment must be completed. A crisis assessment 255.9evaluates any immediate needs for which emergency services are needed and, as time 255.10permits, the recipient's current life situation, sources of stress, mental health problems 255.11and symptoms, strengths, cultural considerations, support network, vulnerabilities, current 255.12functioning, and the recipient's preferences as communicated directly by the recipient, 255.13or as communicated in a health care directive as described in chapters 145C and 253B, 255.14the treatment plan described under paragraph (d), a crisis prevention plan, or a wellness 255.15recovery action plan.255.16(c) If the crisis assessment determines mobile crisis intervention services are needed, 255.17the intervention services must be provided promptly. As opportunity presents during the 255.18intervention, at least two members of the mobile crisis intervention team must confer 255.19directly or by telephone about the assessment, treatment plan, and actions taken and 255.20needed. At least one of the team members must be on site providing crisis intervention 255.21services. If providing on-site crisis intervention services, a mental health practitioner must 255.22seek clinical supervision as required in subdivision 9.255.23(d) The mobile crisis intervention team must develop an initial, brief crisis treatment 255.24plan as soon as appropriate but no later than 24 hours after the initial face-to-face 255.25intervention. The plan must address the needs and problems noted in the crisis assessment 255.26and include measurable short-term goals, cultural considerations, and frequency and type 255.27of services to be provided to achieve the goals and reduce or eliminate the crisis. The 255.28treatment plan must be updated as needed to reflect current goals and services.255.29(e) The team must document which short-term goals have been met and when no 255.30further crisis intervention services are required.255.31(f) If the recipient's crisis is stabilized, but the recipient needs a referral to other 255.32services, the team must provide referrals to these services. If the recipient has a case 255.33manager, planning for other services must be coordinated with the case manager. If the 255.34recipient is unable to follow up on the referral, the team must link the recipient to the 255.35service and follow up to ensure the recipient is receiving the service.256.1(g) If the recipient's crisis is stabilized and the recipient does not have an advance 256.2directive, the case manager or crisis team shall offer to work with the recipient to develop 256.3one.256.4    Sec. 10. Minnesota Statutes 2012, section 256B.0624, subdivision 10, is amended to 256.5read:256.6    Subd. 10. Recipient file. Providers of mobile crisis intervention or crisis stabilization 256.7services must maintain a file for each recipient containing the following information:256.8(1) individual crisis treatment plans signed by the recipient, mental health 256.9professional, and mental health practitioner who developed the crisis treatment plan, or 256.10if the recipient refused to sign the plan, the date and reason stated by the recipient as to 256.11why the recipient would not sign the plan;256.12(2) signed release forms;256.13(3) recipient health information and current medications;256.14(4) emergency contacts for the recipient;256.15(5) case records which document the date of service, place of service delivery, 256.16signature of the person providing the service, and the nature, extent, and units of service. 256.17Direct or telephone contact with the recipient's family or others should be documented;256.18(6) required clinical supervision by mental health professionals;256.19(7) summary of the recipient's case reviews by staff; and256.20(8) any written information by the recipient that the recipient wants in the file; and256.21(9) an advance directive, if there is one available.256.22Documentation in the file must comply with all requirements of the commissioner.256.23    Sec. 11. Minnesota Statutes 2012, section 256B.0625, is amended by adding a 256.24subdivision to read:256.25    Subd. 64.Medical assistance.Medical assistance, subject to federal approval, 256.26covers mental health intensive community rehabilitation services. This subdivision is 256.27effective no later than 120 days after federal approval.256.28    Sec. 12. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:256.29    Subd. 2. Monthly rates; exemptions.The maximum group residential housing rate 256.30does not apply This subdivision applies to a residence that on August 1, 1984, was licensed 256.31by the commissioner of health only as a boarding care home, certified by the commissioner 256.32of health as an intermediate care facility, and licensed by the commissioner of human 256.33services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the 257.1provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision 257.2shall be determined under section 
         256B.431, or under section 
         256B.434 if the facility is 257.3accepted by the commissioner for participation in the alternative payment demonstration 257.4project. The rate paid to this facility shall also include adjustments to the group residential 257.5housing rate according to subdivision 1, and any adjustments applicable to supplemental 257.6service rates statewide.257.7    Sec. 13. DETOXIFICATION SERVICES PLAN.257.8The commissioner shall develop a plan to include detoxification services as a 257.9covered medical assistance benefit and present the plan to the members of the legislative 257.10committees having jurisdiction over health and human services provisions and funding 257.11by December 15, 2014.257.12    Sec. 14. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO 257.13ARREST; WORKING GROUP.257.14    Subdivision 1.Working group established; study and draft legislation required.257.15The commissioner of human services may convene a working group to address issues 257.16related to offenders with mental illness who are arrested or subject to arrest. The working 257.17group shall consider the special needs of these offenders and determine how best to 257.18provide for these needs. Specifically, the group shall consider the efficacy of a facility 257.19that would serve as a central point for accepting, assessing, and addressing the needs of 257.20offenders with mental illness brought in by law enforcement as an alternative to arrest or 257.21following arrest. The facility would consolidate and coordinate existing resources as well 257.22as offer new resources that would provide a continuum of care addressing the immediate, 257.23short-term, and long-term needs of these offenders. The facility would do the following for 257.24these offenders: perform timely, credible, and useful mental health assessments; identify 257.25community placement opportunities; coordinate community care; make recommendations 257.26concerning pretrial release when appropriate; and, in some cases, provide direct services 257.27to offenders at the facility or in nearby jails. The working group shall establish criteria 257.28to determine which offenders may be admitted to the facility. The facility would be 257.29located in the metropolitan region and serve the needs of nearby counties. The facility 257.30would represent a partnership between the state, local units of government, and the private 257.31sector. In addition, the working group may consider how similar facilities could function 257.32in outstate areas. When studying this issue, the working group shall examine what other 257.33states have done in this area to determine what programs have been successful and use 257.34those programs as models in developing the program in Minnesota. The working group 258.1may also study and make recommendations on other ways to improve the process for 258.2addressing and assisting these offenders. The commissioner shall enter into an agreement 258.3with NAMI Minnesota to carry out the work of the working group.258.4    Subd. 2.Membership.The commissioner shall ensure that the working group 258.5has expertise and a broad range of interests represented, including, but not limited to: 258.6prosecutors; law enforcement, including jail staff; correctional officials; community 258.7corrections staff; probation officials; criminal defense attorneys; judges; county and city 258.8officials; mental health advocates; mental health professionals; and hospital and health 258.9care officials.258.10    Subd. 3.Administrative issues.(a) The commissioner shall convene the first 258.11meeting of the working group by September 1, 2014. NAMI Minnesota shall provide 258.12meeting space and administrative support to the working group. The working group shall 258.13select a chair from among its members.258.14(b) The commissioner may solicit in-kind support from work group member 258.15agencies to accomplish its assigned duties.258.16    Subd. 4.Report required.By January 1, 2015, the working group shall submit a 258.17report to the chairs and ranking minority members of the senate and house of representatives 258.18committees and divisions having jurisdiction over human services and public safety. The 258.19report must summarize the working group's activities and include its recommendations 258.20and draft legislation. The recommendations must be specific and include estimates of the 258.21costs involved in implementing the recommendations, including the funding sources that 258.22might be used to pay for it. The working group shall explore potential funding sources 258.23at the federal, local, and private levels, and provide this information in the report. In 258.24addition, the report must include draft legislation to implement the recommendations.258.25EFFECTIVE DATE.This section is effective the day following final enactment.258.26    Sec. 15. REPORT ON RATE SETTING METHODOLOGY FOR MENTAL 258.27HEALTH SERVICES.258.28The commissioner of human services shall provide a report to the chairs of the 258.29Health and Human Services Finance Division by February 1, 2015, that assesses the 258.30current rate setting methodology for intensive residential treatment services (IRTS), adult 258.31crisis, and assertive community treatment (ACT). The report will include an assessment 258.32of alternative payment structures consistent with the intent and direction of the federal 258.33centers for Medicare and Medicaid services which could provide adequate reimbursement 258.34to sustain community-based mental health services regardless of geographic location. 258.35Stakeholders will be included in the development of the report and the report will also 259.1include concerns regarding payment rates for other mental health services that may 259.2require further analysis in the future.259.3ARTICLE 16259.4CHILDREN, FAMILIES, AND NORTHSTAR CARE259.5    Section 1. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:259.6    Subd. 5. Fingerprints. (a) Except as provided in paragraph (c), for any background 259.7study completed under this chapter, when the commissioner has reasonable cause to 259.8believe that further pertinent information may exist on the subject of the background 259.9study, the subject shall provide the commissioner with a set of classifiable fingerprints 259.10obtained from an authorized agency.259.11    (b) For purposes of requiring fingerprints, the commissioner has reasonable cause 259.12when, but not limited to, the:259.13    (1) information from the Bureau of Criminal Apprehension indicates that the subject 259.14is a multistate offender;259.15    (2) information from the Bureau of Criminal Apprehension indicates that multistate 259.16offender status is undetermined; or259.17    (3) commissioner has received a report from the subject or a third party indicating 259.18that the subject has a criminal history in a jurisdiction other than Minnesota.259.19    (c) Except as specified under section 
         245C.04, subdivision 1, paragraph (d), for 259.20background studies conducted by the commissioner for child foster care or, adoptions, or a 259.21transfer of permanent legal and physical custody of a child, the subject of the background 259.22study, who is 18 years of age or older, shall provide the commissioner with a set of 259.23classifiable fingerprints obtained from an authorized agency.259.24    Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is 259.25amended to read:259.26    Subdivision 1. Background studies conducted by Department of Human 259.27Services. (a) For a background study conducted by the Department of Human Services, 259.28the commissioner shall review:259.29    (1) information related to names of substantiated perpetrators of maltreatment of 259.30vulnerable adults that has been received by the commissioner as required under section 259.31626.557, subdivision 9c
         , paragraph (j);259.32    (2) the commissioner's records relating to the maltreatment of minors in licensed 259.33programs, and from findings of maltreatment of minors as indicated through the social 259.34service information system;260.1    (3) information from juvenile courts as required in subdivision 4 for individuals 260.2listed in section 
         245C.03, subdivision 1, paragraph (a), when there is reasonable cause;260.3    (4) information from the Bureau of Criminal Apprehension, including information 260.4regarding a background study subject's registration in Minnesota as a predatory offender 260.5under section 
         243.166;260.6    (5) except as provided in clause (6), information from the national crime information 260.7system when the commissioner has reasonable cause as defined under section 
         245C.05, 260.8subdivision 5; and260.9    (6) for a background study related to a child foster care application for licensure, a 260.10transfer of permanent legal and physical custody of a child under sections 260C.503 to 260.11260C.515, or adoptions, the commissioner shall also review:260.12    (i) information from the child abuse and neglect registry for any state in which the 260.13background study subject has resided for the past five years; and260.14    (ii) information from national crime information databases, when the background 260.15study subject is 18 years of age or older.260.16    (b) Notwithstanding expungement by a court, the commissioner may consider 260.17information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 260.18received notice of the petition for expungement and the court order for expungement is 260.19directed specifically to the commissioner.260.20    (c) The commissioner shall also review criminal case information received according 260.21to section 
         245C.04, subdivision 4a, from the Minnesota court information system that 260.22relates to individuals who have already been studied under this chapter and who remain 260.23affiliated with the agency that initiated the background study.260.24    Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:260.25    Subdivision 1. Adoption and transfer of permanent legal and physical custody;260.26 Background studies conducted by commissionerstudy requirements.(a) Before 260.27placement of a child for purposes of adoption, the commissioner shall conduct a 260.28background study on individuals listed in section sections259.41, subdivision 3, and 260.29260C.611, for county agencies and private agencies licensed to place children for adoption.260.30 When a prospective adoptive parent is seeking to adopt a child who is currently placed in 260.31the prospective adoptive parent's home and is under the guardianship of the commissioner 260.32according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive 260.33parent holds a child foster care license, a new background study is not required when:260.34(1) a background study was completed on persons required to be studied under section 260.35245C.03 in connection with the application for child foster care licensure after July 1, 2007;261.1(2) the background study included a review of the information in section 245C.08, 261.2subdivisions 1, 3, and 4; and261.3(3) as a result of the background study, the individual was either not disqualified 261.4or, if disqualified, the disqualification was set aside under section 245C.22, or a variance 261.5was issued under section 245C.30.261.6(b) Before the kinship placement agreement is signed for the purpose of transferring 261.7permanent legal and physical custody to a relative under sections 260C.503 to 260C.515, 261.8the commissioner shall conduct a background study on each person age 13 or older living 261.9in the home. When a prospective relative custodian has a child foster care license, a new 261.10background study is not required when:261.11(1) a background study was completed on persons required to be studied under section 261.12245C.03 in connection with the application for child foster care licensure after July 1, 2007;261.13(2) the background study included a review of the information in section 245C.08, 261.14subdivisions 1, 3, and 4; and261.15(3) as a result of the background study, the individual was either not disqualified or, 261.16if disqualified, the disqualification was set aside under section 245C.22, or a variance was 261.17issued under section 245C.30. The commissioner and the county agency shall expedite any 261.18request for a set aside or variance for a background study required under chapter 256N.261.19    Sec. 4. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:261.20    Subd. 4. Information commissioner reviews. (a) The commissioner shall review 261.21the following information regarding the background study subject:261.22    (1) the information under section 
         245C.08, subdivisions 1, 3, and 4;261.23    (2) information from the child abuse and neglect registry for any state in which the 261.24subject has resided for the past five years; and261.25    (3) information from national crime information databases, when required under 261.26section 
         245C.08.261.27    (b) The commissioner shall provide any information collected under this subdivision 261.28to the county or private agency that initiated the background study. The commissioner 261.29shall also provide the agency:261.30(1) notice whether the information collected shows that the subject of the background 261.31study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and261.32(2) for background studies conducted under subdivision 1, paragraph (a), the date of 261.33all adoption-related background studies completed on the subject by the commissioner 261.34after June 30, 2007, and the name of the county or private agency that initiated the 261.35adoption-related background study.262.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is 262.2amended to read:262.3    Subdivision 1. Children eligible for subsidized adoption assistance. Medical 262.4assistance may be paid for a child eligible for or receiving adoption assistance payments 262.5under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 262.6676, and to any child who is not title IV-E eligible but who was determined eligible for 262.7adoption assistance under chapter 256N or section 
         259A.10, subdivision 2, and has a 262.8special need for medical or rehabilitative care.262.9    Sec. 6. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:262.10    Subd. 13. Work activity. (a) "Work activity" means any activity in a participant's 262.11approved employment plan that leads to employment. For purposes of the MFIP program, 262.12this includes activities that meet the definition of work activity under the participation 262.13requirements of TANF. Work activity includes:262.14    (1) unsubsidized employment, including work study and paid apprenticeships or 262.15internships;262.16    (2) subsidized private sector or public sector employment, including grant diversion 262.17as specified in section 
         256J.69, on-the-job training as specified in section 
         256J.66, paid 262.18work experience, and supported work when a wage subsidy is provided;262.19    (3) unpaid work experience, including community service, volunteer work, 262.20the community work experience program as specified in section 
         256J.67, unpaid 262.21apprenticeships or internships, and supported work when a wage subsidy is not provided. 262.22Unpaid work experience is only an option if the participant has been unable to obtain or 262.23maintain paid employment in the competitive labor market, and no paid work experience 262.24programs are available to the participant. Prior to placing a participant in unpaid work, 262.25the county must inform the participant that the participant will be notified if a paid work 262.26experience or supported work position becomes available. Unless a participant consents in 262.27writing to participate in unpaid work experience, the participant's employment plan may 262.28only include unpaid work experience if including the unpaid work experience in the plan 262.29will meet the following criteria:262.30    (i) the unpaid work experience will provide the participant specific skills or 262.31experience that cannot be obtained through other work activity options where the 262.32participant resides or is willing to reside; and262.33    (ii) the skills or experience gained through the unpaid work experience will result 262.34in higher wages for the participant than the participant could earn without the unpaid 262.35work experience;263.1    (4) job search including job readiness assistance, job clubs, job placement, 263.2job-related counseling, and job retention services;263.3    (5) job readiness education, including English as a second language (ESL) or 263.4functional work literacy classes as limited by the provisions of section 256J.531, 263.5subdivision 2, general educational development (GED) or adult high school diploma 263.6course work, high school completion, and adult basic education as limited by the 263.7provisions of section 256J.531, subdivision 1;263.8    (6) job skills training directly related to employment, including postsecondary 263.9education and training that can reasonably be expected to lead to employment, as limited 263.10by the provisions of section 256J.53;263.11    (7) providing child care services to a participant who is working in a community 263.12service program;263.13    (8) activities included in the employment plan that is developed under section 263.14256J.521, subdivision 3
         ; and263.15    (9) preemployment activities including chemical and mental health assessments, 263.16treatment, and services; learning disabilities services; child protective services; family 263.17stabilization services; or other programs designed to enhance employability.263.18(b) "Work activity" does not include activities done for political purposes as defined 263.19in section 
         211B.01, subdivision 6.263.20    Sec. 7. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:263.21    Subdivision 1. Length of program.(a) In order for a postsecondary education 263.22or training program to be an approved work activity as defined in section 
         256J.49, 263.23subdivision 13
         , clause (6), it must be a program lasting 24 monthsfour years or less, and 263.24the participant must meet the requirements of subdivisions 2, 3, and 5.263.25(b) Participants with a high school diploma, general educational development 263.26(GED) credential, or an adult high school diploma must be informed of the opportunity 263.27to participate in postsecondary education or training while in the Minnesota family 263.28investment program.263.29    Sec. 8. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:263.30    Subd. 2. Approval of Postsecondary education or training. (a) In order for a 263.31postsecondary education or training program to be an approved activity in an employment 263.32plan, the plan must include additional work activities if the education and training 263.33activities do not meet the minimum hours required to meet the federal work participation 263.34rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.264.1    (b) Participants seeking approval of a postsecondary education or training plan 264.2must provide documentation that:264.3    (1) the employment goal can only be met with the additional education or training;264.4 Participants who are interested in participating in postsecondary education or training as 264.5part of their employment plan must discuss their education plans with their job counselor. 264.6Job counselors will work with participants to evaluate the options by:264.7    (2)(1) advising whether there are suitable employment opportunities that require 264.8the specific education or training in the area in which the participant resides or is willing 264.9to reside;264.10    (3) the education or training will result in significantly higher wages for the 264.11participant than the participant could earn without the education or training;264.12    (4)(2) assisting the participant in exploring whether the participant can meet the 264.13requirements for admission into the program; and264.14    (5) there is a reasonable expectation that the participant will complete the training 264.15program based on such factors as(3) discussing the participant's strengths and challenges 264.16based on the participant's MFIP assessment, previous education, training, and work 264.17history; current motivation; and changes in previous circumstances.264.18(b) The requirements of this subdivision do not apply to participants who are in:264.19(1) a recognized career pathway program that leads to stackable credentials;264.20(2) a training program lasting 12 weeks or fewer; or264.21(3) the final year of a multiyear postsecondary education or training program.264.22    Sec. 9. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:264.23    Subd. 5. Requirements after postsecondary education or training. Upon 264.24completion of an approved education or training program, a participant who does not meet 264.25the participation requirements in section 
         256J.55, subdivision 1, through unsubsidized 264.26employment must participate in job search. If, after six12 weeks of job search, the 264.27participant does not find a full-time job consistent with the employment goal, the 264.28participant must accept any offer of full-time suitable employment, or meet with the job 264.29counselor to revise the employment plan to include additional work activities necessary to 264.30meet hourly requirements.264.31    Sec. 10. Minnesota Statutes 2012, section 256J.531, is amended to read:264.32256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.264.33    Subdivision 1. Approval of adult basic education.With the exception of classes 264.34related to obtaining a general educational development credential (GED), a participant 265.1must have reading or mathematics proficiency below a ninth grade level in order for 265.2adult basic education classes to be anA participant who lacks a high school diploma, 265.3general educational development (GED) credential, or an adult high school diploma 265.4must be allowed to pursue these credentials as an approved work activity, provided 265.5that the participant is making satisfactory progress. Participants eligible to pursue 265.6a general educational development (GED) credential or adult high school diploma 265.7under this subdivision must be informed of the opportunity to participate while in the 265.8Minnesota family investment program. The employment plan must also specify that 265.9the participant fulfill no more than one-half of the participation requirements in section 265.10256J.55, subdivision 1, through attending adult basic education or general educational 265.11development classes.265.12    Subd. 2. Approval of English as a second language. In order for English as a 265.13second language (ESL) classes to be an approved work activity in an employment plan, a 265.14participant must be below a spoken language proficiency level of SPL6 or its equivalent, 265.15as measured by a nationally recognized test. In approving ESL as a work activity, the job 265.16counselor must give preference to enrollment in a functional work literacy program, 265.17if one is available, over a regular ESL program. A participant may not be approved 265.18for more than a combined total of 24 months of ESL classes while participating in the 265.19diversionary work program and the employment and training services component of 265.20MFIP. The employment plan must also specify that the participant fulfill no more than 265.21one-half of the participation requirements in section 256J.55, subdivision 1, through 265.22attending ESL classes. For participants enrolled in functional work literacy classes, no 265.23more than two-thirds of the participation requirements in section 256J.55, subdivision 1, 265.24may be met through attending functional work literacy classes.265.25    Sec. 11. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding 265.26a subdivision to read:265.27    Subd. 14a.Licensed child foster parent."Licensed child foster parent" means a 265.28person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to 265.292960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.265.30    Sec. 12. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is 265.31amended to read:265.32    Subd. 2. Placement in foster care. To be eligible for foster care benefits under this 265.33section, the child must be in placement away from the child's legal parent or, guardian, or 266.1Indian custodian as defined in section 260.755, subdivision 10, and all of the following 266.2criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):266.3(1) the legally responsible agency must have placement authority and care 266.4responsibility, including for a child 18 years old or older and under age 21, who maintains 266.5eligibility for foster care consistent with section 260C.451;266.6(2) (1) the legally responsible agency must have placement authority to place the 266.7child with: (i) a voluntary placement agreement or a court order, consistent with sections 266.8260B.198
         , 
         260C.001, and260D.01, or continued eligibility consistent with section 266.9260C.451
          for a child 18 years old or older and under age 21 who maintains eligibility for 266.10foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe 266.11that is consistent with United States Code, title 42, section 672(a)(2); and266.12(3) (2) the child must be is placed in an emergency relative placement under section 266.13245A.035, with  a licensed foster family setting, foster residence setting, or treatment 266.14foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a 266.15family foster home licensed or approved by a tribal agency or, for a child 18 years old or 266.16older and under age 21, child foster parent; or266.17(3) the child is placed in one of the following unlicensed child foster care settings:266.18(i) an emergency relative placement under tribal licensing regulations or section 266.19245A.035, with the legally responsible agency ensuring the relative completes the required 266.20child foster care application process;266.21(ii) a licensed adult foster home with an approved age variance under section 266.22245A.16 for no more than six months;266.23(iii) for a child 18 years old or older and under age 21 who is eligible for extended 266.24foster care under section 260C.451,  an unlicensed supervised independent living setting 266.25approved by the agency responsible for the youth's child's care.; or266.26(iv) a preadoptive placement in a home specified in section 245A.03, subdivision 266.272, paragraph (a), clause (9), with an approved adoption home study and signed adoption 266.28placement agreement.266.29    Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.21, is amended by adding 266.30a subdivision to read:266.31    Subd. 7.Background study.(a) A county or private agency conducting a 266.32background study for purposes of child foster care licensing or approval must conduct 266.33the study in accordance with chapter 245C and must meet the requirements in United 266.34States Code, title 42, section 671(a)(20).267.1(b) A Minnesota tribe conducting a background study for purposes of child foster 267.2care licensing or approval must conduct the study in accordance with the requirements in 267.3United States Code, title 42, section 671(a)(20), when applicable.267.4    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is 267.5amended to read:267.6    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship 267.7assistance under this section, there must be a judicial determination under section 267.8260C.515, subdivision 4
         , that a transfer of permanent legal and physical custody to a 267.9relative is in the child's best interest. For a child under jurisdiction of a tribal court, a 267.10judicial determination under a similar provision in tribal code indicating that a relative 267.11will assume the duty and authority to provide care, control, and protection of a child who 267.12is residing in foster care, and to make decisions regarding the child's education, health 267.13care, and general welfare until adulthood, and that this is in the child's best interest is 267.14considered equivalent. Additionally, a child must:267.15(1) have been removed from the child's home pursuant to a voluntary placement 267.16agreement or court order;267.17(2)(i) have resided in with the prospective relative custodian who has been a 267.18licensed child foster care parent for at least six consecutive months in the home of the 267.19prospective relative custodian; or267.20(ii) have received from the commissioner an exemption from the requirement in item 267.21(i) from the court that the prospective relative custodian has been a licensed child foster 267.22parent for at least six consecutive months, based on a determination that:267.23(A) an expedited move to permanency is in the child's best interest;267.24(B) expedited permanency cannot be completed without provision of guardianship 267.25assistance; and267.26(C) the prospective relative custodian is uniquely qualified to meet the child's needs, 267.27as defined in section 260C.212, subdivision 2, on a permanent basis;267.28(D) the child and prospective relative custodian meet the eligibility requirements 267.29of this section; and267.30(E) efforts were made by the legally responsible agency to place the child with the 267.31prospective relative custodian as a licensed child foster parent for six consecutive months 267.32before permanency, or an explanation why these efforts were not in the child's best interests;267.33(3) meet the agency determinations regarding permanency requirements in 267.34subdivision 2;267.35(4) meet the applicable citizenship and immigration requirements in subdivision 3;268.1(5) have been consulted regarding the proposed transfer of permanent legal and 268.2physical custody to a relative, if the child is at least 14 years of age or is expected to attain 268.314 years of age prior to the transfer of permanent legal and physical custody; and268.4(6) have a written, binding agreement under section 
         256N.25 among the caregiver or 268.5caregivers, the financially responsible agency, and the commissioner established prior to 268.6transfer of permanent legal and physical custody.268.7(b) In addition to the requirements in paragraph (a), the child's prospective relative 268.8custodian or custodians must meet the applicable background study requirements in 268.9subdivision 4.268.10(c) To be eligible for title IV-E guardianship assistance, a child must also meet any 268.11additional criteria in section 473(d) of the Social Security Act. The sibling of a child 268.12who meets the criteria for title IV-E guardianship assistance in section 473(d) of the 268.13Social Security Act is eligible for title IV-E guardianship assistance if the child and 268.14sibling are placed with the same prospective relative custodian or custodians, and the 268.15legally responsible agency, relatives, and commissioner agree on the appropriateness of 268.16the arrangement for the sibling. A child who meets all eligibility criteria except those 268.17specific to title IV-E guardianship assistance is entitled to guardianship assistance paid 268.18through funds other than title IV-E.268.19    Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is 268.20amended to read:268.21    Subd. 2. Agency determinations regarding permanency. (a) To be eligible for 268.22guardianship assistance, the legally responsible agency must complete the following 268.23determinations regarding permanency for the child prior to the transfer of permanent 268.24legal and physical custody:268.25(1) a determination that reunification and adoption are not appropriate permanency 268.26options for the child; and268.27(2) a determination that the child demonstrates a strong attachment to the prospective 268.28relative custodian and the prospective relative custodian has a strong commitment to 268.29caring permanently for the child.268.30(b) The legally responsible agency shall document the determinations in paragraph 268.31(a) and the eligibility requirements in this section that comply with United States Code, 268.32title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a 268.33kinship placement agreement, which must be in the format prescribed by the commissioner 268.34and must be signed by the prospective relative custodian and the legally responsible 268.35agency. In the case of a Minnesota tribe, the determinations and eligibility requirements 269.1in this section may be provided in an alternative format approved by the commissioner.269.2 Supporting information for completing each determination must be documented in the 269.3legally responsible agency's case file and make them available for review as requested 269.4by the financially responsible agency and the commissioner during the guardianship 269.5assistance eligibility determination process.269.6    Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is 269.7amended to read:269.8    Subd. 4. Background study. (a) A background study under section 245C.33 must be 269.9completed on each prospective relative custodian and any other adult residing in the home 269.10of the prospective relative custodian. The background study must meet the requirements of 269.11United States Code, title 42, section 671(a)(20). A study completed under section 245C.33 269.12meets this requirement. A background study on the prospective relative custodian or adult 269.13residing in the household previously completed under section 245C.04 chapter 245C for the 269.14purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota 269.15tribe, shall be used for the purposes of this section, provided that the background study is 269.16current meets the requirements of this subdivision and the prospective relative custodian is 269.17a licensed child foster parent at the time of the application for guardianship assistance.269.18(b) If the background study reveals:269.19(1) a felony conviction at any time for:269.20(i) child abuse or neglect;269.21(ii) spousal abuse;269.22(iii) a crime against a child, including child pornography; or269.23(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 269.24including other physical assault or battery; or269.25(2) a felony conviction within the past five years for:269.26(i) physical assault;269.27(ii) battery; or269.28(iii) a drug-related offense;269.29the prospective relative custodian is prohibited from receiving guardianship assistance 269.30on behalf of an otherwise eligible child.269.31    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 6, is 269.32amended to read:270.1    Subd. 6. Exclusions. (a) A child with a guardianship assistance agreement under 270.2Northstar Care for Children is not eligible for the Minnesota family investment program 270.3child-only grant under chapter 256J.270.4(b) The commissioner shall not enter into a guardianship assistance agreement with:270.5(1) a child's biological parent or stepparent;270.6(2) an individual assuming permanent legal and physical custody of a child or the 270.7equivalent under tribal code without involvement of the child welfare system; or270.8(3) an individual assuming permanent legal and physical custody of a child who was 270.9placed in Minnesota by another state or a tribe outside of Minnesota.270.10    Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 1, is 270.11amended to read:270.12    Subdivision 1. General eligibility requirements. (a) To be eligible for Northstar 270.13adoption assistance under this section, a child must:270.14(1) be determined to be a child with special needs under subdivision 2;270.15(2) meet the applicable citizenship and immigration requirements in subdivision 3;270.16(3)(i) meet the criteria in section 473 of the Social Security Act; or270.17(ii) have had foster care payments paid on the child's behalf while in out-of-home 270.18placement through the county social service agency or tribe and be either under the270.19 tribal social service agency prior to the issuance of a court order transferring the child's270.20 guardianship of to the commissioner or under the jurisdiction of a Minnesota tribe and 270.21adoption, according to tribal law, is in the child's documented permanency plan making 270.22the child a ward of the tribe; and270.23(4) have a written, binding agreement under section 
         256N.25 among the adoptive 270.24parent, the financially responsible agency, or, if there is no financially responsible agency, 270.25the agency designated by the commissioner, and the commissioner established prior to 270.26finalization of the adoption.270.27(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent 270.28or parents must meet the applicable background study requirements in subdivision 4.270.29(c) A child who meets all eligibility criteria except those specific to title IV-E adoption 270.30assistance shall receive adoption assistance paid through funds other than title IV-E.270.31(d) A child receiving Northstar kinship assistance payments under section 256N.22 270.32is eligible for Northstar adoption assistance when the criteria in paragraph (a) are met and 270.33the child's legal custodian is adopting the child.271.1    Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is 271.2amended to read:271.3    Subd. 4. Background study.(a) A background study under section 259.41 must be 271.4completed on each prospective adoptive parent. and all other adults residing in the home. 271.5A background study must meet the requirements of United States Code, title 42, section 271.6671(a)(20). A study completed under section 245C.33 meets this requirement. If the 271.7prospective adoptive parent is a licensed child foster parent licensed under chapter 245A 271.8or by a Minnesota tribe, the background study previously completed for the purposes of 271.9child foster care licensure shall be used for the purpose of this section, provided that the 271.10background study meets all other requirements of this subdivision and the prospective 271.11adoptive parent is a licensed child foster parent at the time of the application for adoption 271.12assistance.271.13(b) If the background study reveals:271.14(1) a felony conviction at any time for:271.15(i) child abuse or neglect;271.16(ii) spousal abuse;271.17(iii) a crime against a child, including child pornography; or271.18(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 271.19including other physical assault or battery; or271.20(2) a felony conviction within the past five years for:271.21(i) physical assault;271.22(ii) battery; or271.23(iii) a drug-related offense;271.24the adoptive parent is prohibited from receiving adoption assistance on behalf of an 271.25otherwise eligible child.271.26    Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 9, is 271.27amended to read:271.28    Subd. 9. Timing of and requests for reassessments. Reassessments for an eligible 271.29child must be completed within 30 days of any of the following events:271.30(1) for a child in continuous foster care, when six months have elapsed since 271.31completion of the last assessment the initial assessment, and annually thereafter;271.32(2) for a child in continuous foster care, change of placement location;271.33(3) for a child in foster care, at the request of the financially responsible agency or 271.34legally responsible agency;271.35(4) at the request of the commissioner; or272.1(5) at the request of the caregiver under subdivision 9 10.272.2    Sec. 21. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 10, 272.3is amended to read:272.4    Subd. 10. Caregiver requests for reassessments. (a) A caregiver may initiate 272.5a reassessment request for an eligible child in writing to the financially responsible 272.6agency or, if there is no financially responsible agency, the agency designated by the 272.7commissioner. The written request must include the reason for the request and the 272.8name, address, and contact information of the caregivers. For an eligible child with a 272.9guardianship assistance or adoption assistance agreement, The caregiver may request a 272.10reassessment if at least six months have elapsed since any previously requested review272.11 previous assessment or reassessment. For an eligible foster child, a foster parent may 272.12request reassessment in less than six months with written documentation that there have 272.13been significant changes in the child's needs that necessitate an earlier reassessment.272.14(b) A caregiver may request a reassessment of an at-risk child for whom a 272.15guardianship assistance or an adoption assistance agreement has been executed if the 272.16caregiver has satisfied the commissioner with written documentation from a qualified 272.17expert that the potential disability upon which eligibility for the agreement was based has 272.18manifested itself, consistent with section 
         256N.25, subdivision 3, paragraph (b).272.19(c) If the reassessment cannot be completed within 30 days of the caregiver's request, 272.20the agency responsible for reassessment must notify the caregiver of the reason for the 272.21delay and a reasonable estimate of when the reassessment can be completed.272.22(d) Notwithstanding any provision to the contrary in paragraph (a) or subdivision 9, 272.23when a Northstar kinship assistance agreement or adoption assistance agreement under 272.24section 256N.25 has been signed by all parties, no reassessment may be requested or 272.25conducted until the court finalizes the transfer of permanent legal and physical custody or 272.26finalizes the adoption, or the assistance agreement expires according to section 256N.25, 272.27subdivision 1.272.28    Sec. 22. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is 272.29amended to read:272.30    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible 272.31for guardianship assistance or adoption assistance, the financially responsible agency, or, 272.32if there is no financially responsible agency, the agency designated by the commissioner, 272.33must negotiate with the caregiver to develop an agreement under subdivision 1. If and when 272.34the caregiver and agency reach concurrence as to the terms of the agreement, both parties 273.1shall sign the agreement. The agency must submit the agreement, along with the eligibility 273.2determination outlined in sections 
         256N.22, subdivision 7, and 
         256N.23, subdivision 7, to 273.3the commissioner for final review, approval, and signature according to subdivision 1.273.4(b) A monthly payment is provided as part of the adoption assistance or guardianship 273.5assistance agreement to support the care of children unless the child is eligible for adoption 273.6assistance and determined to be an at-risk child, in which case the special at-risk monthly 273.7payment under section 256N.26, subdivision 7, must no payment will be made unless and 273.8until the caregiver obtains written documentation from a qualified expert that the potential 273.9disability upon which eligibility for the agreement was based has manifested itself.273.10(1) The amount of the payment made on behalf of a child eligible for guardianship 273.11assistance or adoption assistance is determined through agreement between the prospective 273.12relative custodian or the adoptive parent and the financially responsible agency, or, if there 273.13is no financially responsible agency, the agency designated by the commissioner, using 273.14the assessment tool established by the commissioner in section 
         256N.24, subdivision 2, 273.15and the associated benefit and payments outlined in section 
         256N.26. Except as provided 273.16under section 
         256N.24, subdivision 1, paragraph (c), the assessment tool establishes 273.17the monthly benefit level for a child under foster care. The monthly payment under a 273.18guardianship assistance agreement or adoption assistance agreement may be negotiated up 273.19to the monthly benefit level under foster care. In no case may the amount of the payment 273.20under a guardianship assistance agreement or adoption assistance agreement exceed the 273.21foster care maintenance payment which would have been paid during the month if the 273.22child with respect to whom the guardianship assistance or adoption assistance payment is 273.23made had been in a foster family home in the state.273.24(2) The rate schedule for the agreement is determined based on the age of the 273.25child on the date that the prospective adoptive parent or parents or relative custodian or 273.26custodians sign the agreement.273.27(3) The income of the relative custodian or custodians or adoptive parent or parents 273.28must not be taken into consideration when determining eligibility for guardianship 273.29assistance or adoption assistance or the amount of the payments under section 
         256N.26.273.30(4) With the concurrence of the relative custodian or adoptive parent, the amount of 273.31the payment may be adjusted periodically using the assessment tool established by the 273.32commissioner in section 
         256N.24, subdivision 2, and the agreement renegotiated under 273.33subdivision 3 when there is a change in the child's needs or the family's circumstances.273.34(5) The guardianship assistance or adoption assistance agreement of a child who is 273.35identified as at-risk receives the special at-risk monthly payment under section 256N.26, 273.36subdivision 7, unless and until the potential disability manifests itself, as documented by 274.1an appropriate professional, and the commissioner authorizes commencement of payment 274.2by modifying the agreement accordingly. A relative custodian or An adoptive parent 274.3of an at-risk child with a guardianship assistance or an adoption assistance agreement 274.4may request a reassessment of the child under section 256N.24, subdivision 9 10, and 274.5renegotiation of the guardianship assistance or adoption assistance agreement under 274.6subdivision 3 to include a monthly payment, if the caregiver has written documentation 274.7from a qualified expert that the potential disability upon which eligibility for the agreement 274.8was based has manifested itself. Documentation of the disability must be limited to 274.9evidence deemed appropriate by the commissioner.274.10(c) For guardianship assistance agreements:274.11(1) the initial amount of the monthly guardianship assistance payment must be 274.12equivalent to the foster care rate in effect at the time that the agreement is signed less any 274.13offsets under section 
         256N.26, subdivision 11, or a lesser negotiated amount if agreed to 274.14by the prospective relative custodian and specified in that agreement, unless the child is 274.15identified as at-risk or the guardianship assistance agreement is entered into when a child 274.16is under the age of six; and274.17(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 274.18receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 274.19and until the potential disability manifests itself, as documented by a qualified expert, and 274.20the commissioner authorizes commencement of payment by modifying the agreement 274.21accordingly; and274.22(3) (2) the amount of the monthly payment for a guardianship assistance agreement 274.23for a child, other than an at-risk child, who is under the age of six must be as specified in 274.24section 
         256N.26, subdivision 5.274.25(d) For adoption assistance agreements:274.26(1) for a child in foster care with the prospective adoptive parent immediately prior 274.27to adoptive placement, the initial amount of the monthly adoption assistance payment 274.28must be equivalent to the foster care rate in effect at the time that the agreement is signed 274.29less any offsets in section 
         256N.26, subdivision 11, or a lesser negotiated amount if agreed 274.30to by the prospective adoptive parents and specified in that agreement, unless the child is 274.31identified as at-risk or the adoption assistance agreement is entered into when a child is 274.32under the age of six;274.33(2) for an at-risk child who must be assigned level A as outlined in section 274.34256N.26
         and receive the special at-risk monthly payment under section 256N.26, 274.35subdivision 7, no payment will be made  unless and until the potential disability manifests 275.1itself, as documented by an appropriate professional, and the commissioner authorizes 275.2commencement of payment by modifying the agreement accordingly;275.3(3) the amount of the monthly payment for an adoption assistance agreement for 275.4a child under the age of six, other than an at-risk child, must be as specified in section 275.5256N.26, subdivision 5
         ;275.6(4) for a child who is in the guardianship assistance program immediately prior 275.7to adoptive placement, the initial amount of the adoption assistance payment must be 275.8equivalent to the guardianship assistance payment in effect at the time that the adoption 275.9assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive 275.10parent and specified in that agreement, unless the child is identified as an at-risk child; and275.11(5) for a child who is not in foster care placement or the guardianship assistance 275.12program immediately prior to adoptive placement or negotiation of the adoption assistance 275.13agreement, the initial amount of the adoption assistance agreement must be determined 275.14using the assessment tool and process in this section and the corresponding payment 275.15amount outlined in section 
         256N.26.275.16    Sec. 23. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is 275.17amended to read:275.18    Subd. 3. Renegotiation of agreement. (a) A relative custodian or adoptive 275.19parent of a child with a guardianship assistance or adoption assistance agreement may 275.20request renegotiation of the agreement when there is a change in the needs of the child 275.21or in the family's circumstances. When a relative custodian or adoptive parent requests 275.22renegotiation of the agreement, a reassessment of the child must be completed consistent 275.23with section 
         256N.24, subdivisions 9 and 10. If the reassessment indicates that the 275.24child's level has changed, the financially responsible agency or, if there is no financially 275.25responsible agency, the agency designated by the commissioner or the commissioner's 275.26designee, and the caregiver must renegotiate the agreement to include a payment with 275.27the level determined through the reassessment process. The agreement must not be 275.28renegotiated unless the commissioner, the financially responsible agency, and the caregiver 275.29mutually agree to the changes. The effective date of any renegotiated agreement must be 275.30determined by the commissioner.275.31(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship 275.32assistance or an adoption assistance agreement may request renegotiation of the agreement 275.33to include a monthly payment higher than the special at-risk monthly payment under 275.34section 
         256N.26, subdivision 7, if the caregiver has written documentation from a 275.35qualified expert that the potential disability upon which eligibility for the agreement 276.1was based has manifested itself. Documentation of the disability must be limited to 276.2evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a 276.3reassessment of the child must be conducted as outlined in section 
         256N.24, subdivision 276.49
         . The reassessment must be used to renegotiate the agreement to include an appropriate 276.5monthly payment. The agreement must not be renegotiated unless the commissioner, the 276.6financially responsible agency, and the caregiver mutually agree to the changes. The 276.7effective date of any renegotiated agreement must be determined by the commissioner.276.8(c) Renegotiation of a guardianship assistance or adoption assistance agreement is 276.9required when one of the circumstances outlined in section 
         256N.26, subdivision 13, 276.10occurs.276.11    Sec. 24. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is 276.12amended to read:276.13    Subdivision 1. Benefits. (a) There are three benefits under Northstar Care for 276.14Children: medical assistance, basic payment, and supplemental difficulty of care payment.276.15(b) A child is eligible for medical assistance under subdivision 2.276.16(c) A child is eligible for the basic payment under subdivision 3, except for a child 276.17assigned level A under section 
         256N.24, subdivision 1, because the child is determined to 276.18be an at-risk child receiving guardianship assistance or adoption assistance.276.19(d) A child, including a foster child age 18 to 21, is eligible for an additional 276.20supplemental difficulty of care payment under subdivision 4, as determined by the 276.21assessment under section 
         256N.24.276.22(e) An eligible child entering guardianship assistance or adoption assistance under 276.23the age of six receives a basic payment and supplemental difficulty of care payment as 276.24specified in subdivision 5.276.25(f) A child transitioning in from a pre-Northstar Care for Children program under 276.26section 
         256N.28, subdivision 7, shall receive basic and difficulty of care supplemental 276.27payments according to those provisions.276.28    Sec. 25. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is 276.29amended to read:276.30    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share 276.31of the maintenance payments, reduced by federal reimbursements under title IV-E of the 276.32Social Security Act, to be paid by the state and to be paid by the financially responsible 276.33agency.277.1(b) These state and local shares must initially be calculated based on the ratio of the 277.2average appropriate expenditures made by the state and all financially responsible agencies 277.3during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation, 277.4appropriate expenditures for the financially responsible agencies must include basic and 277.5difficulty of care payments for foster care reduced by federal reimbursements, but not 277.6including any initial clothing allowance, administrative payments to child care agencies 277.7specified in section 
         317A.907, child care, or other support or ancillary expenditures. For 277.8purposes of this calculation, appropriate expenditures for the state shall include adoption 277.9assistance and relative custody assistance, reduced by federal reimbursements.277.10(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017, 277.112018, and 2019, the commissioner shall adjust this initial percentage of state and local 277.12shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and 277.132014, taking into account appropriations for Northstar Care for Children and the turnover 277.14rates of the components. In making these adjustments, the commissioner's goal shall be to 277.15make these state and local expenditures other than the appropriations for Northstar Care 277.16for Children to be the same as they would have been had Northstar Care for Children not 277.17been implemented, or if that is not possible, proportionally higher or lower, as appropriate. 277.18Except for adjustments so that the costs of the phase-in are borne by the state, the state and 277.19local share percentages for fiscal year 2019 must be used for all subsequent years.277.20    Sec. 26. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:277.21    Subd. 11. Financial considerations. (a) Payment of relative custody assistance 277.22under a relative custody assistance agreement is subject to the availability of state funds 277.23and payments may be reduced or suspended on order of the commissioner if insufficient 277.24funds are available.277.25(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner 277.26shall reimburse the local agency in an amount equal to 100 percent of the relative custody 277.27assistance payments provided to relative custodians. The A local agency may not seek and 277.28the commissioner shall not provide reimbursement for the administrative costs associated 277.29with performing the duties described in subdivision 4.277.30(c) For the purposes of determining eligibility or payment amounts under MFIP, 277.31relative custody assistance payments shall be excluded in determining the family's 277.32available income.277.33(d) For expenditures made on or before December 31, 2014, upon receipt from a 277.34local agency of a claim for reimbursement, the commissioner shall reimburse the local 278.1agency in an amount equal to 100 percent of the relative custody assistance payments 278.2provided to relative custodians.278.3(e) For expenditures made on or after January 1, 2015, upon receipt from a local 278.4agency of a claim for reimbursement, the commissioner shall reimburse the local agency as 278.5part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.278.6    Sec. 27. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:278.7    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan 278.8shall be prepared within 30 days after any child is placed in foster care by court order or a 278.9voluntary placement agreement between the responsible social services agency and the 278.10child's parent pursuant to section 
         260C.227 or chapter 260D.278.11    (b) An out-of-home placement plan means a written document which is prepared 278.12by the responsible social services agency jointly with the parent or parents or guardian 278.13of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 278.14child is an Indian child, the child's foster parent or representative of the foster care facility, 278.15and, where appropriate, the child. For a child in voluntary foster care for treatment under 278.16chapter 260D, preparation of the out-of-home placement plan shall additionally include 278.17the child's mental health treatment provider. As appropriate, the plan shall be:278.18    (1) submitted to the court for approval under section 
         260C.178, subdivision 7;278.19    (2) ordered by the court, either as presented or modified after hearing, under section 278.20260C.178
         , subdivision 7, or 
         260C.201, subdivision 6; and278.21    (3) signed by the parent or parents or guardian of the child, the child's guardian ad 278.22litem, a representative of the child's tribe, the responsible social services agency, and, if 278.23possible, the child.278.24    (c) The out-of-home placement plan shall be explained to all persons involved in its 278.25implementation, including the child who has signed the plan, and shall set forth:278.26    (1) a description of the foster care home or facility selected, including how the 278.27out-of-home placement plan is designed to achieve a safe placement for the child in the 278.28least restrictive, most family-like, setting available which is in close proximity to the home 278.29of the parent or parents or guardian of the child when the case plan goal is reunification, 278.30and how the placement is consistent with the best interests and special needs of the child 278.31according to the factors under subdivision 2, paragraph (b);278.32    (2) the specific reasons for the placement of the child in foster care, and when 278.33reunification is the plan, a description of the problems or conditions in the home of the 278.34parent or parents which necessitated removal of the child from home and the changes the 278.35parent or parents must make in order for the child to safely return home;279.1    (3) a description of the services offered and provided to prevent removal of the child 279.2from the home and to reunify the family including:279.3    (i) the specific actions to be taken by the parent or parents of the child to eliminate 279.4or correct the problems or conditions identified in clause (2), and the time period during 279.5which the actions are to be taken; and279.6    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 279.7to achieve a safe and stable home for the child including social and other supportive 279.8services to be provided or offered to the parent or parents or guardian of the child, the 279.9child, and the residential facility during the period the child is in the residential facility;279.10    (4) a description of any services or resources that were requested by the child or the 279.11child's parent, guardian, foster parent, or custodian since the date of the child's placement 279.12in the residential facility, and whether those services or resources were provided and if 279.13not, the basis for the denial of the services or resources;279.14    (5) the visitation plan for the parent or parents or guardian, other relatives as defined 279.15in section 
         260C.007, subdivision 27, and siblings of the child if the siblings are not placed 279.16together in foster care, and whether visitation is consistent with the best interest of the 279.17child, during the period the child is in foster care;279.18    (6) when a child cannot return to or be in the care of either parent, documentation of 279.19steps to finalize the permanency plan for the child, including:279.20    (i) reasonable efforts to place the child for adoption or legal guardianship of the child 279.21if the court has issued an order terminating the rights of both parents of the child or of the 279.22only known, living parent of the child. At a minimum, the documentation must include 279.23consideration of whether adoption is in the best interests of the child, child-specific 279.24recruitment efforts such as relative search and the use of state, regional, and national 279.25adoption exchanges to facilitate orderly and timely placements in and outside of the state. 279.26A copy of this documentation shall be provided to the court in the review required under 279.27section 
         260C.317, subdivision 3, paragraph (b); and279.28    (ii) documentation necessary to support the requirements of the kinship placement 279.29agreement under section 256N.22 when adoption is determined not to be in the child's 279.30best interest;279.31    (7) efforts to ensure the child's educational stability while in foster care, including:279.32(i) efforts to ensure that the child remains in the same school in which the child was 279.33enrolled prior to placement or upon the child's move from one placement to another, 279.34including efforts to work with the local education authorities to ensure the child's 279.35educational stability; or280.1(ii) if it is not in the child's best interest to remain in the same school that the child 280.2was enrolled in prior to placement or move from one placement to another, efforts to 280.3ensure immediate and appropriate enrollment for the child in a new school;280.4(8) the educational records of the child including the most recent information 280.5available regarding:280.6    (i) the names and addresses of the child's educational providers;280.7    (ii) the child's grade level performance;280.8    (iii) the child's school record;280.9    (iv) a statement about how the child's placement in foster care takes into account 280.10proximity to the school in which the child is enrolled at the time of placement; and280.11(v) any other relevant educational information;280.12    (9) the efforts by the local agency to ensure the oversight and continuity of health 280.13care services for the foster child, including:280.14(i) the plan to schedule the child's initial health screens;280.15(ii) how the child's known medical problems and identified needs from the screens, 280.16including any known communicable diseases, as defined in section 
         144.4172, subdivision 280.172, will be monitored and treated while the child is in foster care;280.18(iii) how the child's medical information will be updated and shared, including 280.19the child's immunizations;280.20(iv) who is responsible to coordinate and respond to the child's health care needs, 280.21including the role of the parent, the agency, and the foster parent;280.22(v) who is responsible for oversight of the child's prescription medications;280.23(vi) how physicians or other appropriate medical and nonmedical professionals 280.24will be consulted and involved in assessing the health and well-being of the child and 280.25determine the appropriate medical treatment for the child; and280.26(vii) the responsibility to ensure that the child has access to medical care through 280.27either medical insurance or medical assistance;280.28(10) the health records of the child including information available regarding:280.29(i) the names and addresses of the child's health care and dental care providers;280.30(ii) a record of the child's immunizations;280.31(iii) the child's known medical problems, including any known communicable 280.32diseases as defined in section 
         144.4172, subdivision 2;280.33(iv) the child's medications; and280.34(v) any other relevant health care information such as the child's eligibility for 280.35medical insurance or medical assistance;281.1(11) an independent living plan for a child age 16 or older. The plan should include, 281.2but not be limited to, the following objectives:281.3    (i) educational, vocational, or employment planning;281.4    (ii) health care planning and medical coverage;281.5    (iii) transportation including, where appropriate, assisting the child in obtaining a 281.6driver's license;281.7    (iv) money management, including the responsibility of the agency to ensure that 281.8the youth annually receives, at no cost to the youth, a consumer report as defined under 281.9section 
         13C.001 and assistance in interpreting and resolving any inaccuracies in the report;281.10    (v) planning for housing;281.11    (vi) social and recreational skills; and281.12    (vii) establishing and maintaining connections with the child's family and 281.13community; and281.14    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 281.15and assessment information, specific services relating to meeting the mental health care 281.16needs of the child, and treatment outcomes.281.17    (d) The parent or parents or guardian and the child each shall have the right to legal 281.18counsel in the preparation of the case plan and shall be informed of the right at the time 281.19of placement of the child. The child shall also have the right to a guardian ad litem. 281.20If unable to employ counsel from their own resources, the court shall appoint counsel 281.21upon the request of the parent or parents or the child or the child's legal guardian. The 281.22parent or parents may also receive assistance from any person or social services agency 281.23in preparation of the case plan.281.24    After the plan has been agreed upon by the parties involved or approved or ordered 281.25by the court, the foster parents shall be fully informed of the provisions of the case plan 281.26and shall be provided a copy of the plan.281.27    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 281.28physical custodian, as appropriate, and the child, if appropriate, must be provided with 281.29a current copy of the child's health and education record.281.30    Sec. 28. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:281.31    Subd. 4. Custody to relative. The court may order permanent legal and physical 281.32custody to a fit and willing relative in the best interests of the child according to the 281.33following conditions requirements:282.1(1) an order for transfer of permanent legal and physical custody to a relative shall 282.2only be made after the court has reviewed the suitability of the prospective legal and 282.3physical custodian;282.4(2) in transferring permanent legal and physical custody to a relative, the juvenile 282.5court shall follow the standards applicable under this chapter and chapter 260, and the 282.6procedures in the Minnesota Rules of Juvenile Protection Procedure;282.7(3) a transfer of legal and physical custody includes responsibility for the protection, 282.8education, care, and control of the child and decision making on behalf of the child;282.9(4) a permanent legal and physical custodian may not return a child to the permanent 282.10care of a parent from whom the court removed custody without the court's approval and 282.11without notice to the responsible social services agency;282.12(5) the social services agency may file a petition naming a fit and willing relative as 282.13a proposed permanent legal and physical custodian. A petition for transfer of permanent 282.14legal and physical custody to a relative who is not a parent shall be accompanied by a 282.15kinship placement agreement under section 256N.22, subdivision 2, between the agency 282.16and proposed permanent legal and physical custodian;282.17(6) another party to the permanency proceeding regarding the child may file a 282.18petition to transfer permanent legal and physical custody to a relative, but the. The petition 282.19must include facts upon which the court can make the determination required under clause 282.20(7) and must be filed not later than the date for the required admit-deny hearing under 282.21section 
         260C.507; or if the agency's petition is filed under section 
         260C.503, subdivision 282.222
         , the petition must be filed not later than 30 days prior to the trial required under section 282.23260C.509
         ; and282.24(7) where a petition is for transfer of permanent legal and physical custody to a 282.25relative who is not a parent, the court must find that:282.26(i) transfer of permanent legal and physical custody and receipt of Northstar kinship 282.27assistance under chapter 256N, when requested and the child is eligible, is in the child's 282.28best interests;282.29(ii) adoption is not in the child's best interests based on the determinations in the 282.30kinship placement agreement required under section 256N.22, subdivision 2;282.31(iii) the agency made efforts to discuss adoption with the child's parent or parents, 282.32or the agency did not make efforts to discuss adoption and the reasons why efforts were 282.33not made; and282.34(iv) there are reasons to separate siblings during placement, if applicable;282.35(8) the court may finalize a permanent transfer of physical legal custody to a relative 282.36regardless of eligibility for Northstar kinship assistance under chapter 256N;283.1(9) the court may defer finalization of an order transferring permanent legal and 283.2physical custody to a relative when deferring finalization is necessary to determine 283.3eligibility for Northstar kinship assistance under chapter 256N; and283.4(7) (10) the juvenile court may maintain jurisdiction over the responsible social 283.5services agency, the parents or guardian of the child, the child, and the permanent legal 283.6and physical custodian for purposes of ensuring appropriate services are delivered to the 283.7child and permanent legal custodian for the purpose of ensuring conditions ordered by the 283.8court related to the care and custody of the child are met.283.9    Sec. 29. Minnesota Statutes 2012, section 260C.611, is amended to read:283.10260C.611 ADOPTION STUDY REQUIRED.283.11(a) An adoption study under section 
         259.41 approving placement of the child in the 283.12home of the prospective adoptive parent shall be completed before placing any child under 283.13the guardianship of the commissioner in a home for adoption. If a prospective adoptive 283.14parent has a current child foster care license under chapter 245A and is seeking to adopt 283.15a foster child who is placed in the prospective adoptive parent's home and is under the 283.16guardianship of the commissioner according to section 260C.325, subdivision 1, the child 283.17foster care home study meets the requirements of this section for an approved adoption 283.18home study if:283.19(1) the written home study on which the foster care license was based is completed 283.20in the commissioner's designated format, consistent with the requirements in sections 283.21260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules, 283.22part 2960.3060, subpart 4;283.23(2) the background studies on each prospective adoptive parent and all required 283.24household members were completed according to section 245C.33;283.25(3) the commissioner has not issued, within the last three years, a sanction on the 283.26license under section 245A.07 or an order of a conditional license under section 245A.06; 283.27and283.28(4) the legally responsible agency determines that the individual needs of the child 283.29are being met by the prospective adoptive parent through an assessment under section 283.30256N.24, subdivision 2, or a documented placement decision consistent with section 283.31260C.212, subdivision 2.283.32(b) If a prospective adoptive parent has previously held a foster care license or 283.33adoptive home study, any update necessary to the foster care license, or updated or new 283.34adoptive home study, if not completed by the licensing authority responsible for the 284.1previous license or home study, shall include collateral information from the previous 284.2licensing or approving agency, if available.284.3    Sec. 30. PARENT AWARE QUALITY RATING AND IMPROVEMENT 284.4SYSTEM ACCESSIBILITY REPORT.284.5    Subdivision 1.Recommendations.The commissioner of human services, in 284.6consultation with representatives from the child care and early childhood advocacy 284.7community, child care provider organizations, child care providers, organizations 284.8administering Parent Aware, the Departments of Education and Health, counties, and 284.9parents, shall make recommendations to the members of the legislative committees having 284.10jurisdiction over health and human services provisions and funding on increasing statewide 284.11accessibility for child care providers to the Parent Aware quality rating and improvement 284.12system and for increasing access to Parent Aware-rated programs for families with 284.13children. The recommendations must address the following factors impacting accessibility:284.14(1) availability of rated and nonrated programs by child care provider type, within 284.15rural and underserved areas, and for different cultural and non-English-speaking groups;284.16(2) time and resources necessary for child care providers to participate in Parent 284.17Aware at various rating levels, including cultural and linguistic considerations;284.18(3) federal child care development fund regulations; and284.19(4) other factors as determined by the commissioner.284.20    Subd. 2.Report.By February 15, 2015, the commissioner of human services 284.21shall report to the legislative committees with jurisdiction over the child care 284.22assistance programs and the Parent Aware quality rating and improvement system with 284.23recommendations to increase access for families and child care providers to Parent Aware, 284.24including benchmarks for achieving the maximum participation in Parent Aware-rated 284.25child care programs by families receiving child care assistance. 284.26EFFECTIVE DATE.This section is effective the day following final enactment.284.27    Sec. 31. REVISOR'S INSTRUCTION.284.28The revisor of statutes shall change the term "guardianship assistance" to "Northstar 284.29kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to 284.30refer to the program components related to Northstar Care for Children under Minnesota 284.31Statutes, chapter 256N.284.32    Sec. 32.  REPEALER.284.33Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.285.1ARTICLE 17285.2COMMUNITY FIRST SERVICES AND SUPPORTS285.3    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a 285.4subdivision to read:285.5    Subd. 8.Community first services and supports organizations.The 285.6commissioner shall conduct background studies on any individual required under section 285.7256B.85 to have a background study completed under this chapter.285.8    Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision 285.9to read:285.10    Subd. 7.Community first services and supports organizations.(a) The 285.11commissioner shall conduct a background study of an individual required to be studied 285.12under section 245C.03, subdivision 8, at least upon application for initial enrollment 285.13under section 256B.85.285.14(b) Before an individual described in section 245C.03, subdivision 8, begins a 285.15position allowing direct contact with a person served by an organization required to initiate 285.16a background study under section 256B.85, the organization must receive a notice from 285.17the commissioner that the support worker is:285.18(1) not disqualified under section 245C.14; or285.19(2) disqualified, but the individual has received a set-aside of the disqualification 285.20under section 245C.22.285.21    Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision 285.22to read:285.23    Subd. 10.Community first services and supports organizations.The 285.24commissioner shall recover the cost of background studies initiated by an agency-provider 285.25delivering services under section 256B.85, subdivision 11, or a financial management 285.26services contractor providing service functions under section 256B.85, subdivision 13, 285.27through a fee of no more than $20 per study, charged to the organization responsible for 285.28submitting the background study form. The fees collected under this subdivision are 285.29appropriated to the commissioner for the purpose of conducting background studies.285.30    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is 285.31amended to read:286.1    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in 286.2this subdivision have the meanings given.286.3(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming, 286.4dressing, bathing, mobility, positioning, and transferring.286.5(c) "Agency-provider model" means a method of CFSS under which a qualified 286.6agency provides services and supports through the agency's own employees and policies. 286.7The agency must allow the participant to have a significant role in the selection and 286.8dismissal of support workers of their choice for the delivery of their specific services 286.9and supports.286.10(d) "Behavior" means a description of a need for services and supports used to 286.11determine the home care rating and additional service units. The presence of Level I 286.12behavior is used to determine the home care rating. "Level I behavior" means physical 286.13aggression towards self or others or destruction of property that requires the immediate 286.14response of another person. If qualified for a home care rating as described in subdivision 286.158, additional service units can be added as described in subdivision 8, paragraph (f), for 286.16the following behaviors:286.17(1) Level I behavior;286.18(2) increased vulnerability due to cognitive deficits or socially inappropriate 286.19behavior; or286.20(3) increased need for assistance for recipients participants who are verbally 286.21aggressive or resistive to care so that time needed to perform activities of daily living is 286.22increased.286.23(e) "Budget model" means a service delivery method of CFSS that allows the use of 286.24a service budget and assistance from a financial management services (FMS) contractor 286.25for a participant to directly employ support workers and purchase supports and goods.286.26(e) (f) "Complex health-related needs" means an intervention listed in clauses (1) 286.27to (8) that has been ordered by a physician, and is specified in a community support 286.28plan, including:286.29(1) tube feedings requiring:286.30(i) a gastrojejunostomy tube; or286.31(ii) continuous tube feeding lasting longer than 12 hours per day;286.32(2) wounds described as:286.33(i) stage III or stage IV;286.34(ii) multiple wounds;286.35(iii) requiring sterile or clean dressing changes or a wound vac; or287.1(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require 287.2specialized care;287.3(3) parenteral therapy described as:287.4(i) IV therapy more than two times per week lasting longer than four hours for 287.5each treatment; or287.6(ii) total parenteral nutrition (TPN) daily;287.7(4) respiratory interventions, including:287.8(i) oxygen required more than eight hours per day;287.9(ii) respiratory vest more than one time per day;287.10(iii) bronchial drainage treatments more than two times per day;287.11(iv) sterile or clean suctioning more than six times per day;287.12(v) dependence on another to apply respiratory ventilation augmentation devices 287.13such as BiPAP and CPAP; and287.14(vi) ventilator dependence under section 
         256B.0652;287.15(5) insertion and maintenance of catheter, including:287.16(i) sterile catheter changes more than one time per month;287.17(ii) clean intermittent catheterization, and including self-catheterization more than 287.18six times per day; or287.19(iii) bladder irrigations;287.20(6) bowel program more than two times per week requiring more than 30 minutes to 287.21perform each time;287.22(7) neurological intervention, including:287.23(i) seizures more than two times per week and requiring significant physical 287.24assistance to maintain safety; or287.25(ii) swallowing disorders diagnosed by a physician and requiring specialized 287.26assistance from another on a daily basis; and287.27(8) other congenital or acquired diseases creating a need for significantly increased 287.28direct hands-on assistance and interventions in six to eight activities of daily living.287.29(f) (g) "Community first services and supports" or "CFSS" means the assistance and 287.30supports program under this section needed for accomplishing activities of daily living, 287.31instrumental activities of daily living, and health-related tasks through hands-on assistance 287.32to accomplish the task or constant supervision and cueing to accomplish the task, or the 287.33purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace 287.34the need for human assistance.287.35(g) (h) "Community first services and supports service delivery plan" or "service 287.36delivery plan" means a written summary of document detailing the services and supports 288.1chosen by the participant to meet assessed needs that is are within the approved CFSS 288.2service authorization amount. Services and supports are based on the community support 288.3plan identified in section 
         256B.0911 and coordinated services and support plan and budget 288.4identified in section 
         256B.0915, subdivision 6, if applicable, that is determined by the 288.5participant to meet the assessed needs, using a person-centered planning process.288.6(i) "Consultation services" means a Minnesota health care program enrolled provider 288.7organization that is under contract with the department and has the knowledge, skills, 288.8and ability to assist CFSS participants in using either the agency-provider model under 288.9subdivision 11 or the budget model under subdivision 13.288.10(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and 288.11toileting.288.12(i) (k) "Dependency" in activities of daily living means a person requires hands-on 288.13assistance or constant supervision and cueing to accomplish one or more of the activities 288.14of daily living every day or on the days during the week that the activity is performed; 288.15however, a child may not be found to be dependent in an activity of daily living if, 288.16because of the child's age, an adult would either perform the activity for the child or assist 288.17the child with the activity and the assistance needed is the assistance appropriate for 288.18a typical child of the same age.288.19(j) (l) "Extended CFSS" means CFSS services and supports under the288.20agency-provider model included in a service plan through one of the home and 288.21community-based services waivers and as approved and authorized under sections 288.22256B.0915
         ; 
         256B.092, subdivision 5; and 
         256B.49, which exceed the amount, duration, 288.23and frequency of the state plan CFSS services for participants.288.24(k) (m) "Financial management services contractor or vendor" or "FMS contractor"288.25 means a qualified organization having required for participants using the budget model 288.26under subdivision 13 that has a written contract with the department to provide vendor 288.27fiscal/employer agent financial management services necessary to use the budget model 288.28under subdivision 13 that (FMS). Services include but are not limited to: participant 288.29education and technical assistance; CFSS service delivery planning and budgeting;288.30filing and payment of federal and state payroll taxes on behalf of the participant; 288.31initiating criminal background checks; billing, making payments, and for approved CFSS 288.32services with authorized funds; monitoring of spending expenditures; accounting for 288.33and disbursing CFSS funds; providing assistance in obtaining and filing for liability, 288.34workers' compensation, and unemployment coverage; and assisting providing participant 288.35instruction and technical assistance to the participant in fulfilling employer-related 288.36requirements in accordance with Section 3504 of the Internal Revenue Code and the 289.1Internal Revenue Service Revenue Procedure 70-6 related regulations and interpretations, 289.2including Code of Federal Regulations, title 26, section 31.3504-1.289.3(l) "Budget model" means a service delivery method of CFSS that allows the use of 289.4an individualized CFSS service delivery plan and service budget and provides assistance 289.5from the financial management services contractor to facilitate participant employment of 289.6support workers and the acquisition of supports and goods.289.7(m) (n) "Health-related procedures and tasks" means procedures and tasks related 289.8to the specific needs of an individual that can be delegated taught or assigned by a 289.9state-licensed healthcare or mental health professional and performed by a support worker.289.10(n) (o) "Instrumental activities of daily living" means activities related to 289.11living independently in the community, including but not limited to: meal planning, 289.12preparation, and cooking; shopping for food, clothing, or other essential items; laundry; 289.13housecleaning; assistance with medications; managing finances; communicating needs 289.14and preferences during activities; arranging supports; and assistance with traveling around 289.15and participating in the community.289.16(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian, 289.17or another representative with legal authority to make decisions about services and 289.18supports for the participant. Other representatives with legal authority to make decisions 289.19include but are not limited to a health care agent or an attorney-in-fact authorized through 289.20a health care directive or power of attorney.289.21(p) (q) "Medication assistance" means providing verbal or visual reminders to take 289.22regularly scheduled medication, and includes any of the following supports listed in clauses 289.23(1) to (3) and other types of assistance, except that a support worker may not determine 289.24medication dose or time for medication or inject medications into veins, muscles, or skin:289.25(1) under the direction of the participant or the participant's representative, bringing 289.26medications to the participant including medications given through a nebulizer, opening a 289.27container of previously set-up medications, emptying the container into the participant's 289.28hand, opening and giving the medication in the original container to the participant, or 289.29bringing to the participant liquids or food to accompany the medication;289.30(2) organizing medications as directed by the participant or the participant's 289.31representative; and289.32(3) providing verbal or visual reminders to perform regularly scheduled medications.289.33(q) (r) "Participant's representative" means a parent, family member, advocate, 289.34or other adult authorized by the participant to serve as a representative in connection 289.35with the provision of CFSS. This authorization must be in writing or by another method 289.36that clearly indicates the participant's free choice. The participant's representative must 290.1have no financial interest in the provision of any services included in the participant's 290.2service delivery plan and must be capable of providing the support necessary to assist 290.3the participant in the use of CFSS. If through the assessment process described in 290.4subdivision 5 a participant is determined to be in need of a participant's representative, one 290.5must be selected. If the participant is unable to assist in the selection of a participant's 290.6representative, the legal representative shall appoint one. Two persons may be designated 290.7as a participant's representative for reasons such as divided households and court-ordered 290.8custodies. Duties of a participant's representatives may include:290.9(1) being available while care is services are provided in a method agreed upon by 290.10the participant or the participant's legal representative and documented in the participant's 290.11CFSS service delivery plan;290.12(2) monitoring CFSS services to ensure the participant's CFSS service delivery 290.13plan is being followed; and290.14(3) reviewing and signing CFSS time sheets after services are provided to provide 290.15verification of the CFSS services.290.16(r) (s) "Person-centered planning process" means a process that is directed by the 290.17participant to plan for services and supports. The person-centered planning process must:290.18(1) include people chosen by the participant;290.19(2) provide necessary information and support to ensure that the participant directs 290.20the process to the maximum extent possible, and is enabled to make informed choices 290.21and decisions;290.22(3) be timely and occur at time and locations of convenience to the participant;290.23(4) reflect cultural considerations of the participant;290.24(5) include strategies for solving conflict or disagreement within the process, 290.25including clear conflict-of-interest guidelines for all planning;290.26(6) provide the participant choices of the services and supports they receive and the 290.27staff providing those services and supports;290.28(7) include a method for the participant to request updates to the plan; and290.29(8) record the alternative home and community-based settings that were considered 290.30by the participant.290.31(s) (t) "Shared services" means the provision of CFSS services by the same CFSS 290.32support worker to two or three participants who voluntarily enter into an agreement to 290.33receive services at the same time and in the same setting by the same provider employer.290.34(t) "Support specialist" means a professional with the skills and ability to assist the 290.35participant using either the agency-provider model under subdivision 11 or the flexible 291.1spending model under subdivision 13, in services including but not limited to assistance 291.2regarding:291.3(1) the development, implementation, and evaluation of the CFSS service delivery 291.4plan under subdivision 6;291.5(2) recruitment, training, or supervision, including supervision of health-related tasks 291.6or behavioral supports appropriately delegated or assigned by a health care professional, 291.7and evaluation of support workers; and291.8(3) facilitating the use of informal and community supports, goods, or resources.291.9(u) "Support worker" means an a qualified and trained employee of the agency 291.10provider agency-provider or of the participant employer under the budget model who 291.11has direct contact with the participant and provides services as specified within the 291.12participant's service delivery plan.291.13(v) "Wages and benefits" means the hourly wages and salaries, the employer's 291.14share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' 291.15compensation, mileage reimbursement, health and dental insurance, life insurance, 291.16disability insurance, long-term care insurance, uniform allowance, contributions to 291.17employee retirement accounts, or other forms of employee compensation and benefits.291.18(w) "Worker training and development" means services for developing workers' 291.19skills as required by the participant's individual CFSS delivery plan that are arranged for 291.20or provided by the agency-provider or purchased by the participant employer. These 291.21services include training, education, direct observation and supervision, and evaluation 291.22and coaching of job skills and tasks, including supervision of health-related tasks or 291.23behavioral supports.291.24    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is 291.25amended to read:291.26    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the 291.27following:291.28(1) is a recipient an enrollee of medical assistance as determined under section 291.29256B.055
         , 
         256B.056, or 
         256B.057, subdivisions 5 and 9;291.30(2) is a recipient of participant in the alternative care program under section 291.31256B.0913
         ;291.32(3) is a waiver recipient participant as defined under section 
         256B.0915, 
         256B.092, 291.33256B.093
         , or 
         256B.49; or291.34(4) has medical services identified in a participant's individualized education 291.35program and is eligible for services as determined in section 
         256B.0625, subdivision 26.292.1(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also 292.2meet all of the following:292.3(1) require assistance and be determined dependent in one activity of daily living or 292.4Level I behavior based on assessment under section 
         256B.0911; and292.5(2) is not a recipient of participant under a family support grant under section 
         252.32;.292.6(3) lives in the person's own apartment or home including a family foster care setting 292.7licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a 292.8noncertified boarding care home or a boarding and lodging establishment under chapter 292.9157.292.10    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is 292.11amended to read:292.12    Subd. 5. Assessment requirements. (a) The assessment of functional need must:292.13(1) be conducted by a certified assessor according to the criteria established in 292.14section 
         256B.0911, subdivision 3a;292.15(2) be conducted face-to-face, initially and at least annually thereafter, or when there 292.16is a significant change in the participant's condition or a change in the need for services 292.17and supports, or at the request of the participant when the participant experiences a change 292.18in condition or needs a change in the services or supports; and292.19(3) be completed using the format established by the commissioner.292.20(b) A participant who is residing in a facility may be assessed and choose CFSS for 292.21the purpose of using CFSS to return to the community as described in subdivisions 3 292.22and 7, paragraph (a), clause (5).292.23(c) (b) The results of the assessment and any recommendations and authorizations 292.24for CFSS must be determined and communicated in writing by the lead agency's certified 292.25assessor as defined in section 
         256B.0911 to the participant and the agency-provider or 292.26financial management services provider FMS contractor chosen by the participant within 292.2740 calendar days and must include the participant's right to appeal under section 
         256.045, 292.28subdivision 3
         .292.29(d) (c) The lead agency assessor may request authorize a temporary authorization 292.30for CFSS services to be provided under the agency-provider model. Authorization for 292.31a temporary level of CFSS services under the agency-provider model is limited to the 292.32time specified by the commissioner, but shall not exceed 45 days. The level of services 292.33authorized under this provision paragraph shall have no bearing on a future authorization.292.34 Upon expiration of the temporary authorization, the participant shall access the 292.35consultation service to complete their initial orientation and selection of a service model.293.1    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is 293.2amended to read:293.3    Subd. 6. Community first services and support service delivery plan. (a) The 293.4CFSS service delivery plan must be developed, implemented, and evaluated through a 293.5person-centered planning process by the participant, or the participant's representative 293.6or legal representative who may be assisted by a support specialist consultation services 293.7provider. The CFSS service delivery plan must reflect the services and supports that 293.8are important to the participant and for the participant to meet the needs assessed 293.9by the certified assessor and identified in the community support plan under section 293.10256B.0911, subdivision 3
         , or the coordinated services and support plan identified in 293.11section 
         256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be 293.12reviewed by the participant, the consultation services provider, and the agency-provider 293.13or financial management services FMS contractor prior to starting services and at least 293.14annually upon reassessment, or when there is a significant change in the participant's 293.15condition, or a change in the need for services and supports.293.16(b) The commissioner shall establish the format and criteria for the CFSS service 293.17delivery plan.293.18(c) The CFSS service delivery plan must be person-centered and:293.19(1) specify the consultation services provider, agency-provider, or financial 293.20management services FMS contractor selected by the participant;293.21(2) reflect the setting in which the participant resides that is chosen by the participant;293.22(3) reflect the participant's strengths and preferences;293.23(4) include the means to address the clinical and support needs as identified through 293.24an assessment of functional needs;293.25(5) include individually identified goals and desired outcomes;293.26(6) reflect the services and supports, paid and unpaid, that will assist the participant 293.27to achieve identified goals, including the costs of the services and supports, and the 293.28providers of those services and supports, including natural supports;293.29(7) identify the amount and frequency of face-to-face supports and amount and 293.30frequency of remote supports and technology that will be used;293.31(8) identify risk factors and measures in place to minimize them, including 293.32individualized backup plans;293.33(9) be understandable to the participant and the individuals providing support;293.34(10) identify the individual or entity responsible for monitoring the plan;293.35(11) be finalized and agreed to in writing by the participant and signed by all 293.36individuals and providers responsible for its implementation;294.1(12) be distributed to the participant and other people involved in the plan; and294.2(13) prevent the provision of unnecessary or inappropriate care.;294.3(14) include a detailed budget for expenditures for budget model participants or 294.4participants under the agency-provider model if purchasing goods; and294.5(15) include a plan for worker training and development detailing what service 294.6components will be used, when the service components will be used, how they will be 294.7provided, and how these service components relate to the participant's individual needs 294.8and CFSS support worker services.294.9(d) The total units of agency-provider services or the service budget allocation294.10 amount for the budget model include both annual totals and a monthly average amount 294.11that cover the number of months of the service authorization. The amount used each 294.12month may vary, but additional funds must not be provided above the annual service 294.13authorization amount unless a change in condition is assessed and authorized by the 294.14certified assessor and documented in the community support plan, coordinated services 294.15and supports plan, and CFSS service delivery plan.294.16(e) In assisting with the development or modification of the plan during the 294.17authorization time period, the consultation services provider shall:294.18(1) consult with the FMS contractor on the spending budget when applicable; and294.19(2) consult with the participant or participant's representative, agency-provider, and 294.20case manager/care coordinator.294.21(f) The service plan must be approved by the consultation services provider for 294.22participants without a case manager/care coordinator. A case manager/care coordinator 294.23must approve the plan for a waiver or alternative care program participant.294.24    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is 294.25amended to read:294.26    Subd. 7. Community first services and supports; covered services. Within the 294.27service unit authorization or service budget allocation amount, services and supports 294.28covered under CFSS include:294.29(1) assistance to accomplish activities of daily living (ADLs), instrumental activities 294.30of daily living (IADLs), and health-related procedures and tasks through hands-on 294.31assistance to accomplish the task or constant supervision and cueing to accomplish the task;294.32(2) assistance to acquire, maintain, or enhance the skills necessary for the participant 294.33to accomplish activities of daily living, instrumental activities of daily living, or 294.34health-related tasks;295.1(3) expenditures for items, services, supports, environmental modifications, or 295.2goods, including assistive technology. These expenditures must:295.3(i) relate to a need identified in a participant's CFSS service delivery plan;295.4(ii) increase independence or substitute for human assistance to the extent that 295.5expenditures would otherwise be made for human assistance for the participant's assessed 295.6needs;295.7(4) observation and redirection for behavior or symptoms where there is a need for 295.8assistance. An assessment of behaviors must meet the criteria in this clause. A recipient295.9 participant qualifies as having a need for assistance due to behaviors if the recipient's295.10 participant's behavior requires assistance at least four times per week and shows one or 295.11more of the following behaviors:295.12(i) physical aggression towards self or others, or destruction of property that requires 295.13the immediate response of another person;295.14(ii) increased vulnerability due to cognitive deficits or socially inappropriate 295.15behavior; or295.16(iii) increased need for assistance for recipients participants who are verbally 295.17aggressive or resistive to care so that time needed to perform activities of daily living is 295.18increased;295.19(5) back-up systems or mechanisms, such as the use of pagers or other electronic 295.20devices, to ensure continuity of the participant's services and supports;295.21(6) transition costs, including:295.22(i) deposits for rent and utilities;295.23(ii) first month's rent and utilities;295.24(iii) bedding;295.25(iv) basic kitchen supplies;295.26(v) other necessities, to the extent that these necessities are not otherwise covered 295.27under any other funding that the participant is eligible to receive; and295.28(vi) other required necessities for an individual to make the transition from a nursing 295.29facility, institution for mental diseases, or intermediate care facility for persons with 295.30developmental disabilities to a community-based home setting where the participant 295.31resides; and295.32(7) (6) services provided by a support specialist consultation services provider under 295.33contract with the department and enrolled as a Minnesota health care program provider as295.34 defined under subdivision 2 that are chosen by the participant. 17;295.35(7) services provided by an FMS contractor under contract with the department 295.36as defined under subdivision 13;296.1(8) CFSS services provided by a qualified support worker who is a parent, stepparent, 296.2or legal guardian of a participant under age 18, or who is the participant's spouse. These 296.3support workers shall not provide any medical assistance home and community-based 296.4services in excess of 40 hours per seven-day period regardless of the number of parents, 296.5combination of parents and spouses, or number of children who receive medical assistance 296.6services; and296.7(9) worker training and development services as defined in subdivision 2, paragraph 296.8(w), and described in subdivision 18a.296.9    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is 296.10amended to read:296.11    Subd. 8. Determination of CFSS service methodology. (a) All community first 296.12services and supports must be authorized by the commissioner or the commissioner's 296.13designee before services begin, except for the assessments established in section 296.14256B.0911
         . The authorization for CFSS must be completed as soon as possible following 296.15an assessment but no later than 40 calendar days from the date of the assessment.296.16(b) The amount of CFSS authorized must be based on the recipient's participant's296.17 home care rating described in paragraphs (d) and (e) and any additional service units for 296.18which the person participant qualifies as described in paragraph (f).296.19(c) The home care rating shall be determined by the commissioner or the 296.20commissioner's designee based on information submitted to the commissioner identifying 296.21the following for a recipient participant:296.22(1) the total number of dependencies of activities of daily living as defined in 296.23subdivision 2, paragraph (b);296.24(2) the presence of complex health-related needs as defined in subdivision 2, 296.25paragraph (e); and296.26(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d), 296.27clause (1).296.28(d) The methodology to determine the total service units for CFSS for each home 296.29care rating is based on the median paid units per day for each home care rating from 296.30fiscal year 2007 data for the PCA program.296.31(e) Each home care rating is designated by the letters P through Z and EN and has 296.32the following base number of service units assigned:296.33(1) P home care rating requires Level I behavior or one to three dependencies in 296.34ADLs and qualifies one for five service units;297.1(2) Q home care rating requires Level I behavior and one to three dependencies in 297.2ADLs and qualifies one for six service units;297.3(3) R home care rating requires a complex health-related need and one to three 297.4dependencies in ADLs and qualifies one for seven service units;297.5(4) S home care rating requires four to six dependencies in ADLs and qualifies 297.6one for ten service units;297.7(5) T home care rating requires four to six dependencies in ADLs and Level I 297.8behavior and qualifies one for 11 service units;297.9(6) U home care rating requires four to six dependencies in ADLs and a complex 297.10health-related need and qualifies one for 14 service units;297.11(7) V home care rating requires seven to eight dependencies in ADLs and qualifies 297.12one for 17 service units;297.13(8) W home care rating requires seven to eight dependencies in ADLs and Level I 297.14behavior and qualifies one for 20 service units;297.15(9) Z home care rating requires seven to eight dependencies in ADLs and a complex 297.16health-related need and qualifies one for 30 service units; and297.17(10) EN home care rating includes ventilator dependency as defined in section 297.18256B.0651, subdivision 1
         , paragraph (g). Recipients Participants who meet the definition 297.19of ventilator-dependent and the EN home care rating and utilize a combination of CFSS 297.20and other home care home-care  services are limited to a total of 96 service units per day 297.21for those services in combination. Additional units may be authorized when a recipient's297.22 participant's assessment indicates a need for two staff to perform activities. Additional 297.23time is limited to 16 service units per day.297.24(f) Additional service units are provided through the assessment and identification of 297.25the following:297.26(1) 30 additional minutes per day for a dependency in each critical activity of daily 297.27living as defined in subdivision 2, paragraph (h) (j);297.28(2) 30 additional minutes per day for each complex health-related function as 297.29defined in subdivision 2, paragraph (e) (f); and297.30(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2, 297.31paragraph (d).297.32(g) The service budget for budget model participants shall be based on:297.33(1) assessed units as determined by the home care rating; and297.34(2) an adjustment needed for administrative expenses.298.1    Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is 298.2amended to read:298.3    Subd. 9. Noncovered services. (a) Services or supports that are not eligible for 298.4payment under this section include those that:298.5(1) are not authorized by the certified assessor or included in the written service 298.6delivery plan;298.7(2) are provided prior to the authorization of services and the approval of the written 298.8CFSS service delivery plan;298.9(3) are duplicative of other paid services in the written service delivery plan;298.10(4) supplant natural unpaid supports that appropriately meet a need in the service 298.11plan, are provided voluntarily to the participant, and are selected by the participant in lieu 298.12of other services and supports;298.13(5) are not effective means to meet the participant's needs; and298.14(6) are available through other funding sources, including, but not limited to, funding 298.15through title IV-E of the Social Security Act.298.16(b) Additional services, goods, or supports that are not covered include:298.17(1) those that are not for the direct benefit of the participant, except that services for 298.18caregivers such as training to improve the ability to provide CFSS are considered to directly 298.19benefit the participant if chosen by the participant and approved in the support plan;298.20(2) any fees incurred by the participant, such as Minnesota health care programs fees 298.21and co-pays, legal fees, or costs related to advocate agencies;298.22(3) insurance, except for insurance costs related to employee coverage;298.23(4) room and board costs for the participant with the exception of allowable 298.24transition costs in subdivision 7, clause (6);298.25(5) services, supports, or goods that are not related to the assessed needs;298.26(6) special education and related services provided under the Individuals with 298.27Disabilities Education Act and vocational rehabilitation services provided under the 298.28Rehabilitation Act of 1973;298.29(7) assistive technology devices and assistive technology services other than those 298.30for back-up systems or mechanisms to ensure continuity of service and supports listed in 298.31subdivision 7;298.32(8) medical supplies and equipment  covered under medical assistance;298.33(9) environmental modifications, except as specified in subdivision 7;298.34(10) expenses for travel, lodging, or meals related to training the participant, or the 298.35participant's representative,or legal representative, or paid or unpaid caregivers that 298.36exceed $500 in a 12-month period;299.1(11) experimental treatments;299.2(12) any service or good covered by other medical assistance state plan services, 299.3including prescription and over-the-counter medications, compounds, and solutions and 299.4related fees, including premiums and co-payments;299.5(13) membership dues or costs, except when the service is necessary and appropriate 299.6to treat a physical health condition or to improve or maintain the participant's physical299.7 health condition. The condition must be identified in the participant's CFSS plan and 299.8monitored by a physician enrolled in a Minnesota health care program Minnesota health 299.9care program enrolled physician;299.10(14) vacation expenses other than the cost of direct services;299.11(15) vehicle maintenance or modifications not related to the disability, health 299.12condition, or physical need; and299.13(16) tickets and related costs to attend sporting or other recreational or entertainment 299.14events.;299.15(17) services provided and billed by a provider who is not an enrolled CFSS provider;299.16(18) CFSS provided by a participant's representative or paid legal guardian;299.17(19) services that are used solely as a child care or babysitting service;299.18(20) services that are the responsibility or in the daily rate of a residential or program 299.19license holder under the terms of a service agreement and administrative rules;299.20(21) sterile procedures;299.21(22) giving of injections into veins, muscles, or skin;299.22(23) homemaker services that are not an integral part of the assessed CFSS service;299.23(24) home maintenance or chore services;299.24(25) home-care services, including hospice services if elected by the participant 299.25covered by Medicare or any other insurance held by the participant;299.26(26) services to other members of the participant's household;299.27(27) services not specified as covered under medical assistance as CFSS;299.28(28) application of restraints or implementation of deprivation procedures;299.29(29) assessments by CFSS provider organizations or by independently enrolled 299.30registered nurses;299.31(30) services provided in lieu of legally required staffing in a residential or child 299.32care setting; and299.33(31) services provided by the residential or program license holder in a residence for 299.34more than four persons.300.1    Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10, 300.2is amended to read:300.3    Subd. 10. Provider Agency-provider and FMS contractor qualifications and,300.4 general requirements, and duties.(a) Agency-providers delivering services under the 300.5agency-provider model under subdivision 11 or financial management service (FMS)300.6 FMS contractors under subdivision 13 shall:300.7(1) enroll as a medical assistance Minnesota health care programs provider and meet 300.8all applicable provider standards and requirements;300.9(2) comply with medical assistance provider enrollment requirements;300.10(3) (2) demonstrate compliance with law federal and state laws and policies of for300.11 CFSS as determined by the commissioner;300.12(4) (3) comply with background study requirements under chapter 245C and 300.13maintain documentation of background study requests and results;300.14(5) (4) verify and maintain records of all services and expenditures by the participant, 300.15including hours worked by support workers and support specialists;300.16(6) (5) not engage in any agency-initiated direct contact or marketing in person, by 300.17telephone, or other electronic means to potential participants, guardians, family members, 300.18or participants' representatives;300.19(6) directly provide services and not use a subcontractor or reporting agent;300.20(7) meet the financial requirements established by the commissioner for financial 300.21solvency;300.22(8) have never had a lead agency contract or provider agreement discontinued due to 300.23fraud, or have never had an owner, board member, or manager fail a state or FBI-based 300.24criminal background check while enrolled or seeking enrollment as a Minnesota health 300.25care programs provider;300.26(9) have established business practices that include written policies and procedures, 300.27internal controls, and a system that demonstrates the provider's ability to deliver quality 300.28CFSS; and300.29(10) have an office located in Minnesota.300.30(b) In conducting general duties, agency-providers and FMS contractors shall:300.31(7) (1) pay support workers and support specialists based upon actual hours of 300.32services provided;300.33(2) pay for worker training and development services based upon actual hours of 300.34services provided or the unit cost of the training session purchased;300.35(8) (3) withhold and pay all applicable federal and state payroll taxes;301.1(9) (4) make arrangements and pay unemployment insurance, taxes, workers' 301.2compensation, liability insurance, and other benefits, if any;301.3(10) (5) enter into a written agreement with the participant, participant's 301.4representative, or legal representative that assigns roles and responsibilities to be 301.5performed before services, supports, or goods are provided using a format established by 301.6the commissioner;301.7(11) (6) report maltreatment as required under sections 
         626.556 and 
         626.557; and301.8(12) (7) provide the participant with a copy of the service-related rights under 301.9subdivision 20 at the start of services and supports.; and301.10(8) comply with any data requests from the department consistent with the 301.11Minnesota Government Data Practices Act.301.12    Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11, 301.13is amended to read:301.14    Subd. 11. Agency-provider model. (a) The agency-provider model is limited to 301.15the includes services provided by support workers and support specialists staff providing 301.16worker training and development services who are employed by an agency-provider 301.17that is licensed according to chapter 245A or meets other criteria established by the 301.18commissioner, including required training.301.19(b) The agency-provider shall allow the participant to have a significant role in the 301.20selection and dismissal of the support workers for the delivery of the services and supports 301.21specified in the participant's service delivery plan.301.22(c) A participant may use authorized units of CFSS services as needed within a 301.23service authorization that is not greater than 12 months. Using authorized units in a 301.24flexible manner in either the agency-provider model or the budget model does not increase 301.25the total amount of services and supports authorized for a participant or included in the 301.26participant's service delivery plan.301.27(d) A participant may share CFSS services. Two or three CFSS participants may 301.28share services at the same time provided by the same support worker.301.29(e) The agency-provider must use a minimum of 72.5 percent of the revenue 301.30generated by the medical assistance payment for CFSS for support worker wages and 301.31benefits. The agency-provider must document how this requirement is being met. The 301.32revenue generated by the support specialist worker training and development services301.33 and the reasonable costs associated with the support specialist worker training and 301.34development services must not be used in making this calculation.302.1(f) The agency-provider model must be used by individuals who have been restricted 302.2by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 302.3to 9505.2245.302.4(g) Participants purchasing goods under this model, along with support worker 302.5services, must:302.6(1) specify the goods in the service delivery plan and detailed budget for 302.7expenditures that must be approved by the consultation services provider or the case 302.8manager/care coordinator; and302.9(2) use the FMS contractor for the billing and payment of such goods.302.10    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12, 302.11is amended to read:302.12    Subd. 12. Requirements for enrollment of CFSS provider agency-provider302.13 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of 302.14enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in 302.15a format determined by the commissioner, information and documentation that includes, 302.16but is not limited to, the following:302.17(1) the CFSS provider agency's agency-provider's current contact information 302.18including address, telephone number, and e-mail address;302.19(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's302.20 agency-provider's Medicaid revenue in the previous calendar year is less than or equal 302.21to $300,000, the provider agency agency-provider must purchase a performance bond of 302.22$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous 302.23calendar year is greater than $300,000, the provider agency agency-provider must 302.24purchase a performance bond of $100,000. The performance bond must be in a form 302.25approved by the commissioner, must be renewed annually, and must allow for recovery of 302.26costs and fees in pursuing a claim on the bond;302.27(3) proof of fidelity bond coverage in the amount of $20,000;302.28(4) proof of workers' compensation insurance coverage;302.29(5) proof of liability insurance;302.30(6) a description of the CFSS provider agency's agency-provider's organization 302.31identifying the names of all owners, managing employees, staff, board of directors, and 302.32the affiliations of the directors, and owners, or staff to other service providers;302.33(7) a copy of the CFSS provider agency's agency-provider's written policies and 302.34procedures including: hiring of employees; training requirements; service delivery; 302.35and employee and consumer safety including process for notification and resolution 303.1of consumer grievances, identification and prevention of communicable diseases, and 303.2employee misconduct;303.3(8) copies of all other forms the CFSS provider agency agency-provider uses in the 303.4course of daily business including, but not limited to:303.5(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time 303.6sheet varies from the standard time sheet for CFSS services approved by the commissioner, 303.7and a letter requesting approval of the CFSS provider agency's agency-provider's303.8 nonstandard time sheet; and303.9(ii) the a copy of the participant's individual CFSS provider agency's template for the 303.10CFSS care service delivery plan;303.11(9) a list of all training and classes that the CFSS provider agency agency-provider303.12 requires of its staff providing CFSS services;303.13(10) documentation that the CFSS provider agency agency-provider and staff have 303.14successfully completed all the training required by this section;303.15(11) documentation of the agency's agency-provider's marketing practices;303.16(12) disclosure of ownership, leasing, or management of all residential properties 303.17that are used or could be used for providing home care home-care  services;303.18(13) documentation that the agency agency-provider will use at least the following 303.19percentages of revenue generated from the medical assistance rate paid for CFSS services 303.20for employee personal care assistant CFSS support worker wages and benefits: 72.5 303.21percent of revenue from CFSS providers. The revenue generated by the support specialist303.22 worker training and development services and the reasonable costs associated with the 303.23support specialist worker training and development services shall not be used in making 303.24this calculation; and303.25(14) documentation that the agency agency-provider does not burden recipients'303.26 participants' free exercise of their right to choose service providers by requiring personal 303.27care assistants CFSS support workers to sign an agreement not to work with any particular 303.28CFSS recipient participant or for another CFSS provider agency agency-provider after 303.29leaving the agency and that the agency is not taking action on any such agreements or 303.30requirements regardless of the date signed.303.31(b) CFSS provider agencies agency-providers shall provide to the commissioner 303.32the information specified in paragraph (a).303.33(c) All CFSS provider agencies agency-providers shall require all employees in 303.34management and supervisory positions and owners of the agency who are active in the 303.35day-to-day management and operations of the agency to complete mandatory training as 303.36determined by the commissioner. Employees in management and supervisory positions 304.1and owners who are active in the day-to-day operations of an agency who have completed 304.2the required training as an employee with a CFSS provider agency agency-provider do 304.3not need to repeat the required training if they are hired by another agency, if they have 304.4completed the training within the past three years. CFSS provider agency agency-provider304.5 billing staff shall complete training about CFSS program financial management. Any new 304.6owners or employees in management and supervisory positions involved in the day-to-day 304.7operations are required to complete mandatory training as a requisite of working for the 304.8agency. CFSS provider agencies certified for participation in Medicare as home health 304.9agencies are exempt from the training required in this subdivision.304.10(d) The commissioner shall send annual renewal notifications to agency-providers 304.1130 days prior to renewal. The notification must:304.12(1) list the materials and information the agency-provider is required to submit;304.13(2) provide instructions on submitting information to the commissioner; and304.14(3) provide a due date by which the commissioner must receive the requested 304.15information.304.16Agency-providers shall submit the required documentation for annual review within 304.1730 days of notification from the commissioner. If no documentation is submitted, the 304.18agency-provider enrollment number must be terminated or suspended.304.19    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13, 304.20is amended to read:304.21    Subd. 13. Budget model. (a) Under the budget model participants can may exercise 304.22more responsibility and control over the services and supports described and budgeted 304.23within the CFSS service delivery plan. Participants must use services provided by an FMS 304.24contractor as defined in subdivision 2, paragraph (m). Under this model, participants may 304.25use their approved service budget allocation to:304.26(1) directly employ support workers, and pay wages, federal and state payroll taxes, 304.27and premiums for workers' compensation, liability, and health insurance coverage; and304.28(2) obtain supports and goods as defined in subdivision 7; and.304.29(3) choose a range of support assistance services from the financial management 304.30services (FMS) contractor related to:304.31(i) assistance in managing the budget to meet the service delivery plan needs, 304.32consistent with federal and state laws and regulations;304.33(ii) the employment, training, supervision, and evaluation of workers by the 304.34participant;304.35(iii) acquisition and payment for supports and goods; and305.1(iv) evaluation of individual service outcomes as needed for the scope of the 305.2participant's degree of control and responsibility.305.3(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) 305.4may authorize a legal representative or participant's representative to do so on their behalf.305.5(c) The commissioner shall disenroll or exclude participants from the budget model 305.6and transfer them to the agency-provider model under, but not limited to, the following 305.7circumstances:305.8(1) when a participant has been restricted by the Minnesota restricted recipient 305.9program, in which case the participant may be excluded for a specified time period under 305.10Minnesota Rules, parts 9505.2160 to 9505.2245;305.11(2) when a participant exits the budget model during the participant's service plan 305.12year. Upon transfer, the participant shall not access the budget model for the remainder of 305.13that service plan year; or305.14(3) when the department determines that the participant or participant's representative 305.15or legal representative cannot manage participant responsibilities under the budget model. 305.16The commissioner must develop policies for determining if a participant is unable to 305.17manage responsibilities under the budget model.305.18(d) A participant may appeal in writing to the department under section 256.045, 305.19subdivision 3, to contest the department's decision under paragraph (c), clause (3), to 305.20disenroll or exclude the participant from the budget model.305.21(c) (e) The FMS contractor shall not provide CFSS services and supports under the 305.22agency-provider service model. 305.23(f) The FMS contractor shall provide service functions as determined by the 305.24commissioner for budget model participants that include but are not limited to:305.25(1) information and consultation about CFSS;305.26(2) (1) assistance with the development of the detailed budget for expenditures 305.27portion of the service delivery plan and budget model as requested by the consultation 305.28services provider or participant;305.29(3) (2) billing and making payments for budget model expenditures;305.30(4) (3) assisting participants in fulfilling employer-related requirements according to 305.31Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax 305.32Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related 305.33regulations and interpretations, including Code of Federal Regulations, title 26, section 305.3431.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining 305.35worker compensation coverage;305.36(5) (4) data recording and reporting of participant spending; and306.1(6) (5) other duties established in the contract with the department, including with 306.2respect to providing assistance to the participant, participant's representative, or legal 306.3representative in performing their employer responsibilities regarding support workers. 306.4The support worker shall not be considered the employee of the financial management 306.5services FMS contractor.; and306.6(6) billing, payment, and accounting of approved expenditures for goods for 306.7agency-provider participants.306.8(d) A participant who requests to purchase goods and supports along with support 306.9worker services under the agency-provider model must use the budget model with 306.10a service delivery plan that specifies the amount of services to be authorized to the 306.11agency-provider and the expenditures to be paid by the FMS contractor.306.12(e) (g) The FMS contractor shall:306.13(1) not limit or restrict the participant's choice of service or support providers or 306.14service delivery models consistent with any applicable state and federal requirements;306.15(2) provide the participant, consultation services provider, and the targeted case 306.16manager, if applicable, with a monthly written summary of the spending for services and 306.17supports that were billed against the spending budget;306.18(3) be knowledgeable of state and federal employment regulations, including those 306.19under the Fair Labor Standards Act of 1938, and comply with the requirements under the 306.20Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the 306.21Internal Revenue Code and related regulations and interpretations, including Code of 306.22Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability 306.23for vendor or fiscal employer agent, and any requirements necessary to process employer 306.24and employee deductions, provide appropriate and timely submission of employer tax 306.25liabilities, and maintain documentation to support medical assistance claims;306.26(4) have current and adequate liability insurance and bonding and sufficient cash 306.27flow as determined by the commissioner and have on staff or under contract a certified 306.28public accountant or an individual with a baccalaureate degree in accounting;306.29(5) assume fiscal accountability for state funds designated for the program and be 306.30held liable for any overpayments or violations of applicable statutes or rules, including but 306.31not limited to the Minnesota False Claims Act, chapter 15C; and306.32(6) maintain documentation of receipts, invoices, and bills to track all services and 306.33supports expenditures for any goods purchased and maintain time records of support 306.34workers. The documentation and time records must be maintained for a minimum of 306.35five years from the claim date and be available for audit or review upon request by the 306.36commissioner. Claims submitted by the FMS contractor to the commissioner for payment 307.1must correspond with services, amounts, and time periods as authorized in the participant's 307.2spending service budget and service plan and must contain specific identifying information 307.3as determined by the commissioner.307.4(f) (h) The commissioner of human services shall:307.5(1) establish rates and payment methodology for the FMS contractor;307.6(2) identify a process to ensure quality and performance standards for the FMS 307.7contractor and ensure statewide access to FMS contractors; and307.8(3) establish a uniform protocol for delivering and administering CFSS services 307.9to be used by eligible FMS contractors.307.10(g) The commissioner of human services shall disenroll or exclude participants from 307.11the budget model and transfer them to the agency-provider model under the following 307.12circumstances that include but are not limited to:307.13(1) when a participant has been restricted by the Minnesota restricted recipient 307.14program, the participant may be excluded for a specified time period under Minnesota 307.15Rules, parts 9505.2160 to 9505.2245;307.16(2) when a participant exits the budget model during the participant's service plan 307.17year. Upon transfer, the participant shall not access the budget model for the remainder of 307.18that service plan year; or307.19(3) when the department determines that the participant or participant's representative 307.20or legal representative cannot manage participant responsibilities under the budget model. 307.21The commissioner must develop policies for determining if a participant is unable to 307.22manage responsibilities under a budget model.307.23(h) A participant may appeal under section 256.045, subdivision 3, in writing to the 307.24department to contest the department's decision under paragraph (c), clause (3), to remove 307.25or exclude the participant from the budget model.307.26    Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15, 307.27is amended to read:307.28    Subd. 15. Documentation of support services provided. (a) Support services 307.29provided to a participant by a support worker employed by either an agency-provider 307.30or the participant acting as the employer must be documented daily by each support 307.31worker, on a time sheet form approved by the commissioner. All documentation may be 307.32Web-based, electronic, or paper documentation. The completed form must be submitted 307.33on a monthly regular basis to the provider or the participant and the FMS contractor 307.34selected by the participant to provide assistance with meeting the participant's employer 307.35obligations and kept in the recipient's health participant's record.308.1(b) The activity documentation must correspond to the written service delivery plan 308.2and be reviewed by the agency-provider or the participant and the FMS contractor when 308.3the participant is acting as the employer of the support worker.308.4(c) The time sheet must be on a form approved by the commissioner documenting 308.5time the support worker provides services in the home to the participant. The following 308.6criteria must be included in the time sheet:308.7(1) full name of the support worker and individual provider number;308.8(2) provider agency-provider name and telephone numbers, if an agency-provider is308.9 responsible for delivery services under the written service plan;308.10(3) full name of the participant;308.11(4) consecutive dates, including month, day, and year, and arrival and departure 308.12times with a.m. or p.m. notations;308.13(5) signatures of the participant or the participant's representative;308.14(6) personal signature of the support worker;308.15(7) any shared care provided, if applicable;308.16(8) a statement that it is a federal crime to provide false information on CFSS 308.17billings for medical assistance payments; and308.18(9) dates and location of recipient participant stays in a hospital, care facility, or 308.19incarceration.308.20    Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16, 308.21is amended to read:308.22    Subd. 16. Support workers requirements. (a) Support workers shall:308.23(1) enroll with the department as a support worker after a background study under 308.24chapter 245C has been completed and the support worker has received a notice from the 308.25commissioner that:308.26(i) the support worker is not disqualified under section 
         245C.14; or308.27(ii) is disqualified, but the support worker has received a set-aside of the 308.28disqualification under section 
         245C.22;308.29(2) have the ability to effectively communicate with the participant or the 308.30participant's representative;308.31(3) have the skills and ability to provide the services and supports according to 308.32the person's participant's CFSS service delivery plan and respond appropriately to the 308.33participant's needs;308.34(4) not be a participant of CFSS, unless the support services provided by the support 308.35worker differ from those provided to the support worker;309.1(5) complete the basic standardized training as determined by the commissioner 309.2before completing enrollment. The training must be available in languages other than 309.3English and to those who need accommodations due to disabilities. Support worker 309.4training must include successful completion of the following training components: basic 309.5first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles 309.6and responsibilities of support workers including information about basic body mechanics, 309.7emergency preparedness, orientation to positive behavioral practices, orientation to 309.8responding to a mental health crisis, fraud issues, time cards and documentation, and an 309.9overview of person-centered planning and self-direction. Upon completion of the training 309.10components, the support worker must pass the certification test to provide assistance 309.11to participants;309.12(6) complete training and orientation on the participant's individual needs; and309.13(7) maintain the privacy and confidentiality of the participant, and not independently 309.14determine the medication dose or time for medications for the participant.309.15(b) The commissioner may deny or terminate a support worker's provider enrollment 309.16and provider number if the support worker:309.17(1) lacks the skills, knowledge, or ability to adequately or safely perform the 309.18required work;309.19(2) fails to provide the authorized services required by the participant employer;309.20(3) has been intoxicated by alcohol or drugs while providing authorized services to 309.21the participant or while in the participant's home;309.22(4) has manufactured or distributed drugs while providing authorized services to the 309.23participant or while in the participant's home; or309.24(5) has been excluded as a provider by the commissioner of human services, or the 309.25United States Department of Health and Human Services, Office of Inspector General, 309.26from participation in Medicaid, Medicare, or any other federal health care program.309.27(c) A support worker may appeal in writing to the commissioner to contest the 309.28decision to terminate the support worker's provider enrollment and provider number.309.29(d) A support worker must not provide or be paid for more than 275 hours of 309.30CFSS per month, regardless of the number of participants the support worker serves or 309.31the number of agency-providers or participant employers by which the support worker 309.32is employed. The department shall not disallow the number of hours per day a support 309.33worker works unless it violates other law.309.34    Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 309.35a subdivision to read:310.1    Subd. 16a.Exception to support worker requirements for continuity of services.310.2The support worker for a participant may be allowed to enroll with a different CFSS 310.3agency-provider or FMS contractor upon initiation, rather than completion of a new 310.4background study according to chapter 245C, if the following conditions are met:310.5(1) the commissioner determines that the support worker's change in enrollment or 310.6affiliation is needed to ensure continuity of services and protect the health and safety 310.7of the participant;310.8(2) the chosen agency-provider or FMS contractor has been continuously enrolled as 310.9a CFSS agency-provider or FMS contractor for at least two years or since the inception of 310.10the CFSS program, whichever is shorter;310.11(3) the participant served by the support worker chooses to transfer to the CFSS 310.12agency-provider or the FMS contractor to which the support worker is transferring;310.13(4) the support worker has been continuously enrolled with the former CFSS 310.14agency-provider or FMS contractor since the support worker's last background study 310.15was completed; and310.16(5) the support worker continues to meet requirements of subdivision 16, excluding 310.17paragraph (a), clause (1). 310.18    Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17, 310.19is amended to read:310.20    Subd. 17. Support specialist requirements and payments Consultation services 310.21description and duties.The commissioner shall develop qualifications, scope of 310.22functions, and payment rates and service limits for a support specialist that may provide 310.23additional or specialized assistance necessary to plan, implement, arrange, augment, or 310.24evaluate services and supports.310.25(a) Consultation services means providing assistance to the participant in making 310.26informed choices regarding CFSS services in general, and self-directed tasks in particular, 310.27and in developing a person-centered service delivery plan to achieve quality service 310.28outcomes.310.29(b) Consultation services is a required service that may include but is not limited to:310.30(1) an initial and annual orientation to CFSS information and policies, including 310.31selecting a service model;310.32(2) assistance with the development, implementation, management, and evaluation 310.33of the person-centered service delivery plan;310.34(3) consultation on recruiting, selecting, training, managing, directing, evaluating, 310.35and supervising support workers;311.1(4) reviewing the use of and access to informal and community supports, goods, or 311.2resources;311.3(5) assistance with fulfilling responsibilities and requirements of CFSS, including 311.4modifying service delivery plans and changing service models; and311.5(6) assistance with accessing FMS contractors or agency-providers.311.6(c) Duties of a consultation services provider shall include but are not limited to:311.7(1) review and finalization of the CFSS service delivery plan by the consultation 311.8services provider organization;311.9(2) distribution of copies of the final service delivery plan to the participant and 311.10to the agency-provider or FMS contractor, case manager/care coordinator, and other 311.11designated parties;311.12(3) an evaluation of services upon receiving information from an FMS contractor 311.13indicating spending or participant employer concerns;311.14(4) a semiannual review of services if the participant does not have a case 311.15manager/care coordinator and when the support worker is a paid parent of a minor 311.16participant or the participant's spouse;311.17(5) collection and reporting of data as required by the department; and311.18(6) providing the participant with a copy of the service-related rights under 311.19subdivision 20 at the start of consultation services.311.20    Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 311.21a subdivision to read:311.22    Subd. 17a.Consultation service provider qualifications and requirements.311.23The commissioner shall develop the qualifications and requirements for providers of 311.24consultation services under subdivision 17. These providers must satisfy at least the 311.25following qualifications and requirements:311.26(1) are under contract with the department;311.27(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the 311.28CFSS or home and community-based services waiver agency-provider or vendor to the 311.29participant, or a lead agency;311.30(3) meet the service standards as established by the commissioner;311.31(4) employ lead professional staff with a minimum of three years of experience 311.32in providing support planning, support broker, or consultation services and consumer 311.33education to participants using a self-directed program using FMS under medical 311.34assistance;312.1(5) are knowledgeable about CFSS roles and responsibilities including those of the 312.2certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;312.3(6) comply with medical assistance provider requirements;312.4(7) understand the CFSS program and its policies;312.5(8) are knowledgeable about self-directed principles and the application of the 312.6person-centered planning process;312.7(9) have general knowledge of the FMS contractor duties and participant 312.8employment model, including all applicable federal, state, and local laws and regulations 312.9regarding tax, labor, employment, and liability and workers' compensation coverage for 312.10household workers; and312.11(10) have all employees, including lead professional staff, staff in management 312.12and supervisory positions, and owners of the agency who are active in the day-to-day 312.13management and operations of the agency, complete training as specified in the contract 312.14with the department.312.15    Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18, 312.16is amended to read:312.17    Subd. 18. Service unit and budget allocation requirements and limits. (a) For the 312.18agency-provider model, services will be authorized in units of service. The total service 312.19unit amount must be established based upon the assessed need for CFSS services, and must 312.20not exceed the maximum number of units available as determined under subdivision 8.312.21(b) For the budget model, the service budget allocation allowed for services and 312.22supports is established by multiplying the number of units authorized under subdivision 8 312.23by the payment rate established by the commissioner defined in subdivision 8, paragraph 312.24(g).312.25    Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 312.26a subdivision to read:312.27    Subd. 18a.Worker training and development services.(a) The commissioner 312.28shall develop the scope of tasks and functions, service standards, and service limits for 312.29worker training and development services.312.30(b) Worker training and development services are in addition to the participant's 312.31assessed service units or service budget. Services provided according to this subdivision 312.32must:313.1(1) help support workers obtain and expand the skills and knowledge necessary to 313.2ensure competency in providing quality services as needed and defined in the participant's 313.3service delivery plan;313.4(2) be provided or arranged for by the agency-provider under subdivision 11 or 313.5purchased by the participant employer under the budget model under subdivision 13; and313.6(3) be described in the participant's CFSS service delivery plan and documented in 313.7the participant's file.313.8(c) Services covered under worker training and development shall include:313.9(1) support worker training on the participant's individual assessed needs, condition, 313.10or both, provided individually or in a group setting by a skilled and knowledgeable trainer 313.11beyond any training the participant or participant's representative provides;313.12(2) tuition for professional classes and workshops for the participant's support 313.13workers that relate to the participant's assessed needs, condition, or both;313.14(3) direct observation, monitoring, coaching, and documentation of support worker 313.15job skills and tasks, beyond any training the participant or participant's representative 313.16provides, including supervision of health-related tasks or behavioral supports that is 313.17conducted by an appropriate professional based on the participant's assessed needs. 313.18These services must be provided within 14 days of the start of services or the start of a 313.19new support worker except as provided in paragraph (d) and must be specified in the 313.20participant's service delivery plan; and313.21(4) reporting service and support concerns to the appropriate provider.313.22(d) The services in paragraph (c), clause (3), are not required to be provided for a 313.23new support worker providing services for a participant due to staffing failures, unless the 313.24support worker is expected to provide ongoing backup staffing coverage.313.25(e) Worker training and development services shall not include:313.26(1) general agency training, worker orientation, or training on CFSS self-directed 313.27models;313.28(2) payment for preparation or development time for the trainer or presenter;313.29(3) payment of the support worker's salary or compensation during the training;313.30(4) training or supervision provided by the participant, the participant's support 313.31worker, or the participant's informal supports, including the participant's representative; or313.32(5) services in excess of 96 units per annual service authorization, unless approved 313.33by the department.313.34    Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23, 313.35is amended to read:314.1    Subd. 23. Commissioner's access. When the commissioner is investigating a 314.2possible overpayment of Medicaid funds, the commissioner must be given immediate 314.3access without prior notice to the agency provider agency-provider or FMS contractor's 314.4office during regular business hours and to documentation and records related to services 314.5provided and submission of claims for services provided. Denying the commissioner 314.6access to records is cause for immediate suspension of payment and terminating the agency 314.7provider's enrollment according to section 
         256B.064 or terminating the FMS contract.314.8    Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24, 314.9is amended to read:314.10    Subd. 24. CFSS agency-providers; background studies. CFSS agency-providers 314.11enrolled to provide personal care assistance CFSS services under the medical assistance 314.12program shall comply with the following:314.13(1) owners who have a five percent interest or more and all managing employees 314.14are subject to a background study as provided in chapter 245C. This applies to currently 314.15enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS 314.16agency-provider. "Managing employee" has the same meaning as Code of Federal 314.17Regulations, title 42, section 455. An organization is barred from enrollment if:314.18(i) the organization has not initiated background studies on owners managing 314.19employees; or314.20(ii) the organization has initiated background studies on owners and managing 314.21employees, but the commissioner has sent the organization a notice that an owner or 314.22managing employee of the organization has been disqualified under section 
         245C.14, and 314.23the owner or managing employee has not received a set-aside of the disqualification 314.24under section 
         245C.22;314.25(2) a background study must be initiated and completed for all support specialists314.26 staff who will have direct contact with the participant to provide worker training and 314.27development; and314.28(3) a background study must be initiated and completed for all support workers.314.29    Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to 314.30read:314.31EFFECTIVE DATE.This section is effective upon federal approval but no earlier 314.32than April 1, 2014. The service will begin 90 days after federal approval or April 1, 314.332014, whichever is later. The commissioner of human services shall notify the revisor of 314.34statutes when this occurs.315.1ARTICLE 18315.2CONTINUING CARE315.3    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:315.4    Subd. 4. Licensing data. (a) As used in this subdivision:315.5    (1) "licensing data" are all data collected, maintained, used, or disseminated by the 315.6welfare system pertaining to persons licensed or registered or who apply for licensure 315.7or registration or who formerly were licensed or registered under the authority of the 315.8commissioner of human services;315.9    (2) "client" means a person who is receiving services from a licensee or from an 315.10applicant for licensure; and315.11    (3) "personal and personal financial data" are Social Security numbers, identity 315.12of and letters of reference, insurance information, reports from the Bureau of Criminal 315.13Apprehension, health examination reports, and social/home studies.315.14    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants, 315.15license holders, and former licensees are public: name, address, telephone number of 315.16licensees, date of receipt of a completed application, dates of licensure, licensed capacity, 315.17type of client preferred, variances granted, record of training and education in child care 315.18and child development, type of dwelling, name and relationship of other family members, 315.19previous license history, class of license, the existence and status of complaints, and the 315.20number of serious injuries to or deaths of individuals in the licensed program as reported 315.21to the commissioner of human services, the local social services agency, or any other 315.22county welfare agency. For purposes of this clause, a serious injury is one that is treated 315.23by a physician.315.24(ii) When a correction order, an order to forfeit a fine, an order of license suspension, 315.25an order of temporary immediate suspension, an order of license revocation, an order 315.26of license denial, or an order of conditional license has been issued, or a complaint is 315.27resolved, the following data on current and former licensees and applicants are public: the 315.28substance and investigative findings of the licensing or maltreatment complaint, licensing 315.29violation, or substantiated maltreatment; the record of informal resolution of a licensing 315.30violation; orders of hearing; findings of fact; conclusions of law; specifications of the final 315.31correction order, fine, suspension, temporary immediate suspension, revocation, denial, or 315.32conditional license contained in the record of licensing action; whether a fine has been 315.33paid; and the status of any appeal of these actions.315.34(iii) When a license denial under section 
         245A.05 or a sanction under section 315.35245A.07
          is based on a determination that the license holder or applicant is responsible for 316.1maltreatment under section 
         626.556 or 
         626.557, the identity of the applicant or license 316.2holder as the individual responsible for maltreatment is public data at the time of the 316.3issuance of the license denial or sanction.316.4(iv) When a license denial under section 
         245A.05 or a sanction under section 316.5245A.07
          is based on a determination that the license holder or applicant is disqualified 316.6under chapter 245C, the identity of the license holder or applicant as the disqualified 316.7individual and the reason for the disqualification are public data at the time of the 316.8issuance of the licensing sanction or denial. If the applicant or license holder requests 316.9reconsideration of the disqualification and the disqualification is affirmed, the reason for 316.10the disqualification and the reason to not set aside the disqualification are public data.316.11    (2) Notwithstanding sections 
         626.556, subdivision 11, and 
         626.557, subdivision 12b, 316.12when any person subject to disqualification under section 
         245C.14 in connection with a 316.13license to provide family day care for children, child care center services, foster care for 316.14children in the provider's home, or foster care or day care services for adults in the provider's 316.15home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is 316.16a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment 316.17is public data. For purposes of this clause, a person is a substantiated perpetrator if the 316.18maltreatment determination has been upheld under section 
         256.045; 
         626.556, subdivision 316.1910i
         ; 
         626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely 316.20exercised appeal rights under these sections, except as provided under clause (1).316.21    (3) For applicants who withdraw their application prior to licensure or denial of a 316.22license, the following data are public: the name of the applicant, the city and county in 316.23which the applicant was seeking licensure, the dates of the commissioner's receipt of the 316.24initial application and completed application, the type of license sought, and the date 316.25of withdrawal of the application.316.26    (4) For applicants who are denied a license, the following data are public: the name 316.27and address of the applicant, the city and county in which the applicant was seeking 316.28licensure, the dates of the commissioner's receipt of the initial application and completed 316.29application, the type of license sought, the date of denial of the application, the nature of 316.30the basis for the denial, the record of informal resolution of a denial, orders of hearings, 316.31findings of fact, conclusions of law, specifications of the final order of denial, and the 316.32status of any appeal of the denial.316.33    (5) The following data on persons subject to disqualification under section 
         245C.14 in 316.34connection with a license to provide family day care for children, child care center services, 316.35foster care for children in the provider's home, or foster care or day care services for adults 316.36in the provider's home, are public: the nature of any disqualification set aside under section 317.1245C.22
         , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the 317.2nature of any disqualification for which a variance was granted under sections 
         245A.04, 317.3subdivision 9
         ; and 
         245C.30, and the reasons for granting any variance under section 317.4245A.04, subdivision 9
         ; and, if applicable, the disclosure that any person subject to 317.5a background study under section 
         245C.03, subdivision 1, has successfully passed a 317.6background study. If a licensing sanction under section 
         245A.07, or a license denial under 317.7section 
         245A.05, is based on a determination that an individual subject to disqualification 317.8under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction 317.9or denial is public data. As specified in clause (1), item (iv), if the disqualified individual 317.10is the license holder or applicant, the identity of the license holder or applicant and the 317.11reason for the disqualification are public data; and, if the license holder or applicant 317.12requested reconsideration of the disqualification and the disqualification is affirmed, the 317.13reason for the disqualification and the reason to not set aside the disqualification are 317.14public data. If the disqualified individual is an individual other than the license holder or 317.15applicant, the identity of the disqualified individual shall remain private data.317.16    (6) When maltreatment is substantiated under section 
         626.556 or 
         626.557 and the 317.17victim and the substantiated perpetrator are affiliated with a program licensed under 317.18chapter 245A, the commissioner of human services, local social services agency, or 317.19county welfare agency may inform the license holder where the maltreatment occurred of 317.20the identity of the substantiated perpetrator and the victim.317.21    (7) Notwithstanding clause (1), for child foster care, only the name of the license 317.22holder and the status of the license are public if the county attorney has requested that data 317.23otherwise classified as public data under clause (1) be considered private data based on the 317.24best interests of a child in placement in a licensed program.317.25    (c) The following are private data on individuals under section 
         13.02, subdivision 317.2612
         , or nonpublic data under section 
         13.02, subdivision 9: personal and personal financial 317.27data on family day care program and family foster care program applicants and licensees 317.28and their family members who provide services under the license.317.29    (d) The following are private data on individuals: the identity of persons who have 317.30made reports concerning licensees or applicants that appear in inactive investigative data, 317.31and the records of clients or employees of the licensee or applicant for licensure whose 317.32records are received by the licensing agency for purposes of review or in anticipation of a 317.33contested matter. The names of reporters of complaints or alleged violations of licensing 317.34standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged 317.35maltreatment under sections 
         626.556 and 
         626.557, are confidential data and may be 317.36disclosed only as provided in section 
         626.556, subdivision 11, or 
         626.557, subdivision 12b.318.1    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under 318.2this subdivision become public data if submitted to a court or administrative law judge as 318.3part of a disciplinary proceeding in which there is a public hearing concerning a license 318.4which has been suspended, immediately suspended, revoked, or denied.318.5    (f) Data generated in the course of licensing investigations that relate to an alleged 318.6violation of law are investigative data under subdivision 3.318.7    (g) Data that are not public data collected, maintained, used, or disseminated under 318.8this subdivision that relate to or are derived from a report as defined in section 
         626.556, 318.9subdivision 2
         , or 
         626.5572, subdivision 18, are subject to the destruction provisions of 318.10sections 
         626.556, subdivision 11c, and 
         626.557, subdivision 12b.318.11    (h) Upon request, not public data collected, maintained, used, or disseminated under 318.12this subdivision that relate to or are derived from a report of substantiated maltreatment as 318.13defined in section 
         626.556 or 
         626.557 may be exchanged with the Department of Health 318.14for purposes of completing background studies pursuant to section 
         144.057 and with 318.15the Department of Corrections for purposes of completing background studies pursuant 318.16to section 
         241.021.318.17    (i) Data on individuals collected according to licensing activities under chapters 318.18245A and 245C, data on individuals collected by the commissioner of human services 318.19according to investigations under chapters 245A, 245B, and 245C, and 245D, and 318.20sections 
         626.556 and 
         626.557 may be shared with the Department of Human Rights, the 318.21Department of Health, the Department of Corrections, the ombudsman for mental health 318.22and developmental disabilities, and the individual's professional regulatory board when 318.23there is reason to believe that laws or standards under the jurisdiction of those agencies may 318.24have been violated or the information may otherwise be relevant to the board's regulatory 318.25jurisdiction. Background study data on an individual who is the subject of a background 318.26study under chapter 245C for a licensed service for which the commissioner of human 318.27services is the license holder may be shared with the commissioner and the commissioner's 318.28delegate by the licensing division. Unless otherwise specified in this chapter, the identity 318.29of a reporter of alleged maltreatment or licensing violations may not be disclosed.318.30    (j) In addition to the notice of determinations required under section 
         626.556, 318.31subdivision 10f
         , if the commissioner or the local social services agency has determined 318.32that an individual is a substantiated perpetrator of maltreatment of a child based on sexual 318.33abuse, as defined in section 
         626.556, subdivision 2, and the commissioner or local social 318.34services agency knows that the individual is a person responsible for a child's care in 318.35another facility, the commissioner or local social services agency shall notify the head 318.36of that facility of this determination. The notification must include an explanation of the 319.1individual's available appeal rights and the status of any appeal. If a notice is given under 319.2this paragraph, the government entity making the notification shall provide a copy of the 319.3notice to the individual who is the subject of the notice.319.4    (k) All not public data collected, maintained, used, or disseminated under this 319.5subdivision and subdivision 3 may be exchanged between the Department of Human 319.6Services, Licensing Division, and the Department of Corrections for purposes of 319.7regulating services for which the Department of Human Services and the Department 319.8of Corrections have regulatory authority.319.9    Sec. 2. Minnesota Statutes 2012, section 144A.073, is amended by adding a 319.10subdivision to read:319.11    Subd. 14.Moratorium exception funding.In fiscal year 2015, the commissioner 319.12of health may approve moratorium exception projects under this section for which the full 319.13annualized state share of medical assistance costs does not exceed $1,000,000.319.14    Sec. 3. Minnesota Statutes 2012, section 144A.33, subdivision 2, is amended to read:319.15    Subd. 2. Providing educational services. The Minnesota Board on Aging shall 319.16provide a grant-in-aid to a statewide, independent, nonprofit, consumer-sponsored agency 319.17to provide educational services to councils.319.18    Sec. 4. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:319.19245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY 319.20MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.319.21    Subdivision 1. Rules governing the use of positive support strategies and 319.22restricting or prohibiting restrictive interventions. The commissioner of human 319.23services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt rules 319.24governing the use of positive support strategies, safety interventions, and emergency use 319.25of manual restraint, and restricting or prohibiting the use of restrictive interventions,  in 319.26all facilities and services licensed under chapter 245D. , and in all licensed facilities and 319.27licensed services serving persons with a developmental disability or related condition. 319.28For the purposes of this section, "developmental disability or related condition" has the 319.29meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.319.30    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input, 319.31develop identify data collection elements specific to incidents of emergency use of 319.32manual restraint and positive support transition plans for persons receiving services from 319.33providers governed licensed facilities and licensed services  under chapter 245D and in 320.1licensed facilities and licensed services serving persons with a developmental disability 320.2or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective 320.3January 1, 2014. Providers Licensed facilities and licensed services shall report the data in 320.4a format and at a frequency determined by the commissioner of human services. Providers 320.5shall submit the data to the commissioner and the Office of the Ombudsman for Mental 320.6Health and Developmental Disabilities.320.7(b) Beginning July 1, 2013, providers licensed facilities and licensed services320.8 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data 320.9regarding the use of all controlled procedures identified in Minnesota Rules, part 320.109525.2740, in a format and at a frequency determined by the commissioner. Providers 320.11shall submit the data to the commissioner and the Office of the Ombudsman for Mental 320.12Health and Developmental Disabilities.320.13    Subd. 3.External program review committee.Rules adopted according to this 320.14section shall establish requirements for an external program review committee appointed by 320.15the commissioner to monitor the implementation of the rules and make recommendations 320.16to the commissioner about any needed policy changes after adoption of the rules.320.17    Subd. 4.Interim review panel.(a) The commissioner shall establish an interim 320.18review panel by August 15, 2014, for the purpose of reviewing requests for emergency 320.19use of procedures that have been part of an approved positive support transition plan 320.20when necessary to protect a person from imminent risk of serious injury as defined in 320.21section 245.91, subdivision 6, due to self-injurious behavior. The panel must make 320.22recommendations to the commissioner to approve or deny these requests based on criteria 320.23to be established by the interim review panel. The interim review panel shall operate until 320.24the external program review committee is established as required under subdivision 3.320.25(b) Members of the interim review panel shall be selected based on their expertise 320.26and knowledge related to the use of positive support strategies as alternatives to the use 320.27of restrictive interventions. The commissioner shall seek input and recommendations in 320.28establishing the interim review panel. Members of the interim review panel shall include 320.29the following representatives:320.30(1) an expert in positive supports;320.31(2) a mental health professional, as defined in section 245.462;320.32(3) a licensed health professional as defined in section 245D.02, subdivision 14; and320.33(4) a representative of the Department of Health.320.34    Sec. 5. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is 320.35amended to read:321.1    Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial 321.2license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, 321.3or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under 321.4this chapter for a physical location that will not be the primary residence of the license 321.5holder for the entire period of licensure. If a license is issued during this moratorium, and 321.6the license holder changes the license holder's primary residence away from the physical 321.7location of the foster care license, the commissioner shall revoke the license according 321.8to section 
         245A.07. The commissioner shall not issue an initial license for a community 321.9residential setting licensed under chapter 245D. Exceptions to the moratorium include:321.10(1) foster care settings that are required to be registered under chapter 144D;321.11(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 321.12community residential setting licenses replacing adult foster care licenses in existence on 321.13December 31, 2013, and determined to be needed by the commissioner under paragraph (b);321.14(3) new foster care licenses or community residential setting licenses determined to 321.15be needed by the commissioner under paragraph (b) for the closure of a nursing facility, 321.16ICF/DD, or regional treatment center; restructuring of state-operated services that limits 321.17the capacity of state-operated facilities; or allowing movement to the community for 321.18people who no longer require the level of care provided in state-operated facilities as 321.19provided under section 
         256B.092, subdivision 13, or 
         256B.49, subdivision 24;321.20(4) new foster care licenses or community residential setting licenses determined 321.21to be needed by the commissioner under paragraph (b) for persons requiring hospital 321.22level care; or321.23(5) new foster care licenses or community residential setting licenses determined to 321.24be needed by the commissioner for the transition of people from personal care assistance 321.25to the home and community-based services.321.26(b) The commissioner shall determine the need for newly licensed foster care 321.27homes or community residential settings as defined under this subdivision. As part of the 321.28determination, the commissioner shall consider the availability of foster care capacity in 321.29the area in which the licensee seeks to operate, and the recommendation of the local 321.30county board. The determination by the commissioner must be final. A determination of 321.31need is not required for a change in ownership at the same address.321.32(c) When an adult resident served by the program moves out of a foster home that is 321.33not the primary residence of the license holder according to section 
         256B.49, subdivision 321.3415
         , paragraph (f), or the adult community residential setting, the county shall immediately 321.35inform the Department of Human Services Licensing Division. The department shall 321.36decrease the statewide licensed capacity for adult foster care settings where the physical 322.1location is not the primary residence of the license holder, or for adult community 322.2residential settings, if the voluntary changes described in paragraph (e) are not sufficient to 322.3meet the savings required by reductions in licensed bed capacity under Laws 2011, First 322.4Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), and maintain statewide 322.5long-term care residential services capacity within budgetary limits. Implementation of 322.6the statewide licensed capacity reduction shall begin on July 1, 2013. The commissioner 322.7shall delicense up to 128 beds by June 30, 2014, using the needs determination process. 322.8Prior to any involuntary reduction of licensed capacity, the commissioner shall consult 322.9with lead agencies and license holders to determine which adult foster care settings, where 322.10the physical location is not the primary residence of the license holder, or community 322.11residential settings, are licensed for up to five beds, but have operated at less than full 322.12capacity for 12 or more months as of March 1, 2014. The settings that meet these criteria 322.13must be the first to be considered for an involuntary decrease in statewide licensed capacity, 322.14up to a maximum of 35 beds. If more than 35 beds are identified that meet these criteria, the 322.15commissioner shall prioritize the selection of those beds to be closed based on the length 322.16of time the beds have been vacant. The longer a bed has been vacant, the higher priority 322.17it must be given for closure. Under this paragraph, the commissioner has the authority 322.18to reduce unused licensed capacity of a current foster care program, or the community 322.19residential settings, to accomplish the consolidation or closure of settings. Under this 322.20paragraph, the commissioner has the authority to manage statewide capacity, including 322.21adjusting the capacity available to each county and adjusting statewide available capacity, 322.22to meet the statewide needs identified through the process in paragraph (e). A decreased 322.23licensed capacity according to this paragraph is not subject to appeal under this chapter.322.24(d) Residential settings that would otherwise be subject to the decreased license 322.25capacity established in paragraph (c) shall be exempt under the following circumstances:322.26(1) until August 1, 2013, the license holder's beds occupied by residents whose 322.27primary diagnosis is mental illness and the license holder is:322.28(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental 322.29health services (ARMHS) as defined in section 
         256B.0623;322.30(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to 322.319520.0870;322.32(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to 322.339520.0870; or322.34(iv) a provider of intensive residential treatment services (IRTS) licensed under 322.35Minnesota Rules, parts 9520.0500 to 9520.0670; or323.1(2) the license holder's beds occupied by residents whose primary diagnosis is 323.2mental illness and the license holder is certified under the requirements in subdivision 6a 323.3or section 
         245D.33.323.4(e) A resource need determination process, managed at the state level, using the 323.5available reports required by section 
         144A.351, and other data and information shall 323.6be used to determine where the reduced capacity required under paragraph (c) will be 323.7implemented. The commissioner shall consult with the stakeholders described in section 323.8144A.351
         , and employ a variety of methods to improve the state's capacity to meet 323.9long-term care service needs within budgetary limits, including seeking proposals from 323.10service providers or lead agencies to change service type, capacity, or location to improve 323.11services, increase the independence of residents, and better meet needs identified by the 323.12long-term care services reports and statewide data and information. By February 1, 2013, 323.13and August 1, 2014, and each following year, the commissioner shall provide information 323.14and data on the overall capacity of licensed long-term care services, actions taken under 323.15this subdivision to manage statewide long-term care services and supports resources, and 323.16any recommendations for change to the legislative committees with jurisdiction over 323.17health and human services budget.323.18    (f) At the time of application and reapplication for licensure, the applicant and the 323.19license holder that are subject to the moratorium or an exclusion established in paragraph 323.20(a) are required to inform the commissioner whether the physical location where the foster 323.21care will be provided is or will be the primary residence of the license holder for the entire 323.22period of licensure. If the primary residence of the applicant or license holder changes, the 323.23applicant or license holder must notify the commissioner immediately. The commissioner 323.24shall print on the foster care license certificate whether or not the physical location is the 323.25primary residence of the license holder.323.26    (g) License holders of foster care homes identified under paragraph (f) that are not 323.27the primary residence of the license holder and that also provide services in the foster care 323.28home that are covered by a federally approved home and community-based services 323.29waiver, as authorized under section 
         256B.0915, 
         256B.092, or 
         256B.49, must inform the 323.30human services licensing division that the license holder provides or intends to provide 323.31these waiver-funded services.323.32    Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is 323.33amended to read:323.34    Subd. 3. Implementation. (a) The commissioner shall implement the 323.35responsibilities of this chapter according to the timelines in paragraphs (b) and (c) 324.1only within the limits of available appropriations or other administrative cost recovery 324.2methodology.324.3(b) The licensure of home and community-based services according to this section 324.4shall be implemented January 1, 2014. License applications shall be received and 324.5processed on a phased-in schedule as determined by the commissioner beginning July 324.61, 2013. Licenses will be issued thereafter upon the commissioner's determination that 324.7the application is complete according to section 
         245A.04.324.8(c) Within the limits of available appropriations or other administrative cost recovery 324.9methodology, implementation of compliance monitoring must be phased in after January 324.101, 2014.324.11(1) Applicants who do not currently hold a license issued under chapter 245B must 324.12receive an initial compliance monitoring visit after 12 months of the effective date of the 324.13initial license for the purpose of providing technical assistance on how to achieve and 324.14maintain compliance with the applicable law or rules governing the provision of home and 324.15community-based services under chapter 245D. If during the review the commissioner 324.16finds that the license holder has failed to achieve compliance with an applicable law or 324.17rule and this failure does not imminently endanger the health, safety, or rights of the 324.18persons served by the program, the commissioner may issue a licensing review report with 324.19recommendations for achieving and maintaining compliance.324.20(2) Applicants who do currently hold a license issued under this chapter must receive 324.21a compliance monitoring visit after 24 months of the effective date of the initial license.324.22(d) Nothing in this subdivision shall be construed to limit the commissioner's 324.23authority to suspend or revoke a license or issue a fine at any time under section 
         245A.07, 324.24or issue correction orders and make a license conditional for failure to comply with 324.25applicable laws or rules under section 
         245A.06, based on the nature, chronicity, or severity 324.26of the violation of law or rule and the effect of the violation on the health, safety, or 324.27rights of persons served by the program.324.28(e) License holders governed under chapter 245D must ensure compliance with the 324.29following requirements within the stated timelines:324.30(1) service initiation and service planning requirements must be met at the next 324.31annual meeting of the person's support team or by January 1, 2015, whichever is later, 324.32for the following:324.33    (i) provision of a written notice that identifies the service recipient rights and an 324.34explanation of those rights as required under section 245D.04, subdivision 1;324.35(ii) service planning for basic support services as required under section 245D.07, 324.36subdivision 2; and325.1(iii) service planning for intensive support services under section 245D.071, 325.2subdivisions 3 and 4;325.3(2) staff orientation to program requirements as required under section 245D.09, 325.4subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015. 325.5The license holder may otherwise provide documentation verifying these requirements 325.6were met before January 1, 2014;325.7(3) development of policy and procedures as required under section 245D.11, must 325.8be completed no later than August 31, 2014;325.9(4) written or electronic notice and copies of policies and procedures must be 325.10provided to all persons or their legal representatives and case managers as required under 325.11section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 325.1230 days of development of the required policies and procedures, whichever is earlier; and325.13(5) all employees must be informed of the revisions and training must be provided on 325.14implementation of the revised policies and procedures as required under section 245D.10, 325.15subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of 325.16the required policies and procedures, whichever is earlier.325.17    Sec. 7. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is 325.18amended to read:325.19    Subdivision 1. Delegation of authority to agencies. (a) County agencies and 325.20private agencies that have been designated or licensed by the commissioner to perform 325.21licensing functions and activities under section 
         245A.04 and background studies for family 325.22child care under chapter 245C; to recommend denial of applicants under section 
         245A.05; 325.23to issue correction orders, to issue variances, and recommend a conditional license under 325.24section 
         245A.06, or to recommend suspending or revoking a license or issuing a fine under 325.25section 
         245A.07, shall comply with rules and directives of the commissioner governing 325.26those functions and with this section. The following variances are excluded from the 325.27delegation of variance authority and may be issued only by the commissioner:325.28    (1) dual licensure of family child care and child foster care, dual licensure of child 325.29and adult foster care, and adult foster care and family child care;325.30    (2) adult foster care maximum capacity;325.31    (3) adult foster care minimum age requirement;325.32    (4) child foster care maximum age requirement;325.33    (5) variances regarding disqualified individuals except that county agencies may 325.34issue variances under section 
         245C.30 regarding disqualified individuals when the county 325.35is responsible for conducting a consolidated reconsideration according to sections 
         245C.25 326.1and 
         245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 326.2and a disqualification based on serious or recurring maltreatment;326.3    (6) the required presence of a caregiver in the adult foster care residence during 326.4normal sleeping hours; and326.5    (7) variances for community residential setting licenses under chapter 245D.326.6Except as provided in section 
         245A.14, subdivision 4, paragraph (e), a county agency 326.7must not grant a license holder a variance to exceed the maximum allowable family child 326.8care license capacity of 14 children.326.9    (b) County agencies must report information about disqualification reconsiderations 326.10under sections 
         245C.25 and 
         245C.27, subdivision 2, paragraphs (a) and (b), and variances 326.11granted under paragraph (a), clause (5), to the commissioner at least monthly in a format 326.12prescribed by the commissioner.326.13    (c) For family day care programs, the commissioner may authorize licensing reviews 326.14every two years after a licensee has had at least one annual review.326.15    (d) For family adult day services programs, the commissioner may authorize 326.16licensing reviews every two years after a licensee has had at least one annual review.326.17    (e) A license issued under this section may be issued for up to two years.326.18(f) During implementation of chapter 245D, the commissioner shall consider:326.19(1) the role of counties in quality assurance;326.20(2) the duties of county licensing staff; and326.21(3) the possible use of joint powers agreements, according to section 
         471.59, with 326.22counties through which some licensing duties under chapter 245D may be delegated by 326.23the commissioner to the counties.326.24Any consideration related to this paragraph must meet all of the requirements of the 326.25corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.326.26(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 326.27successor provisions; and section 245D.061 or successor provisions, for family child 326.28foster care programs providing out-of-home respite, as identified in section 245D.03, 326.29subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority 326.30to county and private agencies.326.31    Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is 326.32amended to read:326.33    Subd. 3. Case manager. "Case manager" means the individual designated 326.34to provide waiver case management services, care coordination, or long-term care 326.35consultation, as specified in sections 
         256B.0913, 
         256B.0915, 
         256B.092, and 
         256B.49, 327.1or successor provisions. For purposes of this chapter, "case manager" includes case 327.2management services as defined in Minnesota Rules, part 9520.0902, subpart 3.327.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is 327.4amended to read:327.5    Subd. 4b. Coordinated service and support plan. "Coordinated service and 327.6support plan" has the meaning given in sections 
         256B.0913, subdivision 8; 
         256B.0915, 327.7subdivision 
         6; 
         256B.092, subdivision 1b; and 
         256B.49, subdivision 15, or successor 327.8provisions. For purposes of this chapter, "coordinated service and support plan" includes 327.9the individual program plan or individual treatment plan as defined in Minnesota Rules, 327.10part 9520.0510, subpart 12.327.11    Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, 327.12is amended to read:327.13    Subd. 8b. Expanded support team. "Expanded support team" means the members 327.14of the support team defined in subdivision 46 34 and a licensed health or mental health 327.15professional or other licensed, certified, or qualified professionals or consultants working 327.16with the person and included in the team at the request of the person or the person's legal 327.17representative.327.18    Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11, 327.19is amended to read:327.20    Subd. 11. Incident. "Incident" means an occurrence which involves a person and 327.21requires the program to make a response that is not a part of the program's ordinary 327.22provision of services to that person, and includes:327.23(1) serious injury of a person as determined by section 
         245.91, subdivision 6;327.24(2) a person's death;327.25(3) any medical emergency, unexpected serious illness, or significant unexpected 327.26change in an illness or medical condition of a person that requires the program to call 327.27911, physician treatment, or hospitalization;327.28(4) any mental health crisis that requires the program to call 911 or, a mental 327.29health crisis intervention team, or a similar mental health response team or service when 327.30available and appropriate;327.31(5) an act or situation involving a person that requires the program to call 911, 327.32law enforcement, or the fire department;327.33(6) a person's unauthorized or unexplained absence from a program;328.1(7) conduct by a person receiving services against another person receiving services 328.2that:328.3(i) is so severe, pervasive, or objectively offensive that it substantially interferes with 328.4a person's opportunities to participate in or receive service or support;328.5(ii) places the person in actual and reasonable fear of harm;328.6(iii) places the person in actual and reasonable fear of damage to property of the 328.7person; or328.8(iv) substantially disrupts the orderly operation of the program;328.9(8) any sexual activity between persons receiving services involving force or 328.10coercion as defined under section 
         609.341, subdivisions 3 and 14;328.11(9) any emergency use of manual restraint as identified in section 
         245D.061or 328.12successor provisions; or328.13(10) a report of alleged or suspected child or vulnerable adult maltreatment under 328.14section 
         626.556 or 
         626.557.328.15    Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b, 328.16is amended to read:328.17    Subd. 15b. Mechanical restraint.(a) Except for devices worn by the person that 328.18trigger electronic alarms to warn staff that a person is leaving a room or area, which 328.19do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids 328.20or equipment or orthotic devices ordered by a health care professional used to treat or 328.21manage a medical condition, "Mechanical restraint" means the use of devices, materials, 328.22or equipment attached or adjacent to the person's body, or the use of practices that are 328.23intended to restrict freedom of movement or normal access to one's body or body parts, 328.24or limits a person's voluntary movement or holds a person immobile as an intervention 328.25precipitated by a person's behavior. The term applies to the use of mechanical restraint 328.26used to prevent injury with persons who engage in self-injurious behaviors, such as 328.27head-banging, gouging, or other actions resulting in tissue damage that have caused or 328.28could cause medical problems resulting from the self-injury.328.29(b) Mechanical restraint does not include the following:328.30(1) devices worn by the person that trigger electronic alarms to warn staff that a 328.31person is leaving a room or area, which do not, in and of themselves, restrict freedom of 328.32movement; or328.33(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care 328.34professional used to treat or manage a medical condition.329.1    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29, 329.2is amended to read:329.3    Subd. 29. Seclusion. "Seclusion" means the placement of a person alone in: (1) 329.4removing a person involuntarily to a room from which exit is prohibited by a staff person 329.5or a mechanism such as a lock, a device, or an object positioned to hold the door closed 329.6or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily 329.7removing or separating a person from an area, activity, situation, or social contact with 329.8others and blocking or preventing the person's return.329.9    Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34, 329.10is amended to read:329.11    Subd. 34. Support team. "Support team" means the service planning team 329.12identified in section 
         256B.49, subdivision 15, or; the interdisciplinary team identified in 329.13Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in 329.14Minnesota Rules, part 9520.0902, subpart 6.329.15    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a, 329.16is amended to read:329.17    Subd. 34a. Time out. "Time out" means removing a person involuntarily from an 329.18ongoing activity to a room, either locked or unlocked, or otherwise separating a person 329.19from others in a way that prevents social contact and prevents the person from leaving the 329.20situation if the person chooses the involuntary removal of a person for a period of time to 329.21a designated area from which the person is not prevented from leaving. For the purpose of 329.22this chapter, "time out" does not mean voluntary removal or self-removal for the purpose 329.23of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15 329.24minutes. "Time out" does not include a person voluntarily moving from an ongoing activity 329.25to an unlocked room or otherwise separating from a situation or social contact with others 329.26if the person chooses. For the purposes of this definition, "voluntarily" means without 329.27being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from 329.28an activity for the purpose of providing the person an opportunity to regain self-control.329.29    Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding 329.30a subdivision to read:329.31    Subd. 35b.Unlicensed staff."Unlicensed staff" means individuals not otherwise 329.32licensed or certified by a governmental health board or agency.330.1    Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is 330.2amended to read:330.3    Subdivision 1. Applicability.  (a) The commissioner shall regulate the provision of 330.4home and community-based services to persons with disabilities and persons age 65 and 330.5older pursuant to this chapter. The licensing standards in this chapter govern the provision 330.6of basic support services and intensive support services.330.7(b) Basic support services provide the level of assistance, supervision, and care that 330.8is necessary to ensure the health and safety of the person and do not include services that 330.9are specifically directed toward the training, treatment, habilitation, or rehabilitation of 330.10the person. Basic support services include:330.11(1) in-home and out-of-home respite care services as defined in section 
         245A.02, 330.12subdivision 15, and under the brain injury, community alternative care, community 330.13alternatives for disabled individuals, developmental disability, and elderly waiver plans, 330.14excluding out-of-home respite care provided to children in a family child foster care home 330.15licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care 330.16license holder complies with the requirements under section 245D.06, subdivisions 5, 6, 330.177, and 8, or successor provisions; and section 245D.061 or successor provisions, which 330.18must be stipulated in the statement of intended use required under Minnesota Rules, 330.19part 2960.3000, subpart 4;330.20(2) adult companion services as defined under the brain injury, community 330.21alternatives for disabled individuals, and elderly waiver plans, excluding adult companion 330.22services provided under the Corporation for National and Community Services Senior 330.23Companion Program established under the Domestic Volunteer Service Act of 1973, 330.24Public Law 98-288;330.25(3) personal support as defined under the developmental disability waiver plan;330.26(4) 24-hour emergency assistance, personal emergency response as defined under the 330.27community alternatives for disabled individuals and developmental disability waiver plans;330.28(5) night supervision services as defined under the brain injury waiver plan; and330.29(6) homemaker services as defined under the community alternatives for disabled 330.30individuals, brain injury, community alternative care, developmental disability, and elderly 330.31waiver plans, excluding providers licensed by the Department of Health under chapter 330.32144A and those providers providing cleaning services only.330.33(c) Intensive support services provide assistance, supervision, and care that is 330.34necessary to ensure the health and safety of the person and services specifically directed 330.35toward the training, habilitation, or rehabilitation of the person. Intensive support services 330.36include:331.1(1) intervention services, including:331.2(i) behavioral support services as defined under the brain injury and community 331.3alternatives for disabled individuals waiver plans;331.4(ii) in-home or out-of-home crisis respite services as defined under the developmental 331.5disability waiver plan; and331.6(iii) specialist services as defined under the current developmental disability waiver 331.7plan;331.8(2) in-home support services, including:331.9(i) in-home family support and supported living services as defined under the 331.10developmental disability waiver plan;331.11(ii) independent living services training as defined under the brain injury and 331.12community alternatives for disabled individuals waiver plans; and331.13(iii) semi-independent living services;331.14(3) residential supports and services, including:331.15(i) supported living services as defined under the developmental disability waiver 331.16plan provided in a family or corporate child foster care residence, a family adult foster 331.17care residence, a community residential setting, or a supervised living facility;331.18(ii) foster care services as defined in the brain injury, community alternative care, 331.19and community alternatives for disabled individuals waiver plans provided in a family or 331.20corporate child foster care residence, a family adult foster care residence, or a community 331.21residential setting; and331.22(iii) residential services provided to more than four persons with developmental 331.23disabilities in a supervised living facility that is certified by the Department of Health as 331.24an ICF/DD, including ICFs/DD;331.25(4) day services, including:331.26(i) structured day services as defined under the brain injury waiver plan;331.27(ii) day training and habilitation services under sections 
         252.40 to 
         252.46, and as 331.28defined under the developmental disability waiver plan; and331.29(iii) prevocational services as defined under the brain injury and community 331.30alternatives for disabled individuals waiver plans; and331.31(5) supported employment as defined under the brain injury, developmental 331.32disability, and community alternatives for disabled individuals waiver plans.331.33    Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding 331.34a subdivision to read:332.1    Subd. 1a.Effect.The home and community-based services standards establish 332.2health, safety, welfare, and rights protections for persons receiving services governed by 332.3this chapter. The standards recognize the diversity of persons receiving these services and 332.4require that these services are provided in a manner that meets each person's individual 332.5needs and ensures continuity in service planning, care, and coordination between the 332.6license holder and members of each person's support team or expanded support team.332.7    Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is 332.8amended to read:332.9    Subd. 2. Relationship to other standards governing home and community-based 332.10services. (a) A license holder governed by this chapter is also subject to the licensure 332.11requirements under chapter 245A.332.12(b) A corporate or family child foster care site controlled by a license holder and 332.13providing services governed by this chapter is exempt from compliance with section 332.14245D.04. This exemption applies to foster care homes where at least one resident is 332.15receiving residential supports and services licensed according to this chapter. This chapter 332.16does not apply to corporate or family child foster care homes that do not provide services 332.17licensed under this chapter.332.18(c) A family adult foster care site controlled by a license holder and providing 332.19services governed by this chapter is exempt from compliance with Minnesota Rules, 332.20parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These 332.21exemptions apply to family adult foster care homes where at least one resident is receiving 332.22residential supports and services licensed according to this chapter. This chapter does 332.23not apply to family adult foster care homes that do not provide services licensed under 332.24this chapter.332.25(d) A license holder providing services licensed according to this chapter in a 332.26supervised living facility is exempt from compliance with sectionssection 245D.04; 332.27245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).332.28(e) A license holder providing residential services to persons in an ICF/DD is exempt 332.29from compliance with sections 
         245D.04; 
         245D.05, subdivision 1b; 
         245D.06, subdivision 332.302
         , clauses (4) and (5); 
         245D.071, subdivisions 4 and 5; 
         245D.081, subdivision 2; 
         245D.09, 332.31subdivision 7; 
         245D.095, subdivision 2; and 
         245D.11, subdivision 3.332.32(f) A license holder providing homemaker services licensed according to this chapter 332.33and registered according to chapter 144A is exempt from compliance with section 
         245D.04.333.1(g) Nothing in this chapter prohibits a license holder from concurrently serving 333.2persons without disabilities or people who are or are not age 65 and older, provided this 333.3chapter's standards are met as well as other relevant standards.333.4(h) The documentation required under sections 
         245D.07 and 
         245D.071 must meet 333.5the individual program plan requirements identified in section 
         256B.092 or successor 333.6provisions.333.7    Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is 333.8amended to read:333.9    Subd. 3. Variance. If the conditions in section 
         245A.04, subdivision 9, are met, 333.10the commissioner may grant a variance to any of the requirements in this chapter, except 333.11sections 
         245D.04; 
         245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor 333.12provisions; and 
         245D.061, subdivision 3, or provisions governing data practices and 333.13information rights of persons.333.14    Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is 333.15amended to read:333.16    Subd. 3. Protection-related rights. (a) A person's protection-related rights include 333.17the right to:333.18(1) have personal, financial, service, health, and medical information kept private, 333.19and be advised of disclosure of this information by the license holder;333.20(2) access records and recorded information about the person in accordance with 333.21applicable state and federal law, regulation, or rule;333.22(3) be free from maltreatment;333.23(4) be free from restraint, time out, or seclusion, restrictive intervention, or other 333.24prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions333.25 except for: (i) emergency use of manual restraint to protect the person from imminent 333.26danger to self or others according to the requirements in section 
         245D.06; 245D.061 or 333.27successor provisions; or (ii) the use of safety interventions as part of a positive support 333.28transition plan under section 245D.06, subdivision 8, or successor provisions;333.29(5) receive services in a clean and safe environment when the license holder is the 333.30owner, lessor, or tenant of the service site;333.31(6) be treated with courtesy and respect and receive respectful treatment of the 333.32person's property;333.33(7) reasonable observance of cultural and ethnic practice and religion;334.1(8) be free from bias and harassment regarding race, gender, age, disability, 334.2spirituality, and sexual orientation;334.3(9) be informed of and use the license holder's grievance policy and procedures, 334.4including knowing how to contact persons responsible for addressing problems and to 334.5appeal under section 
         256.045;334.6(10) know the name, telephone number, and the Web site, e-mail, and street 334.7addresses of protection and advocacy services, including the appropriate state-appointed 334.8ombudsman, and a brief description of how to file a complaint with these offices;334.9(11) assert these rights personally, or have them asserted by the person's family, 334.10authorized representative, or legal representative, without retaliation;334.11(12) give or withhold written informed consent to participate in any research or 334.12experimental treatment;334.13(13) associate with other persons of the person's choice;334.14(14) personal privacy; and334.15(15) engage in chosen activities.334.16(b) For a person residing in a residential site licensed according to chapter 245A, 334.17or where the license holder is the owner, lessor, or tenant of the residential service site, 334.18protection-related rights also include the right to:334.19(1) have daily, private access to and use of a non-coin-operated telephone for local 334.20calls and long-distance calls made collect or paid for by the person;334.21(2) receive and send, without interference, uncensored, unopened mail or electronic 334.22correspondence or communication;334.23(3) have use of and free access to common areas in the residence; and334.24(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious 334.25advisor, or others, in accordance with section 
         363A.09 of the Human Rights Act, including 334.26privacy in the person's bedroom.334.27(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a), 334.28clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure 334.29the health, safety, and well-being of the person. Any restriction of those rights must be 334.30documented in the person's coordinated service and support plan or coordinated service 334.31and support plan addendum. The restriction must be implemented in the least restrictive 334.32alternative manner necessary to protect the person and provide support to reduce or 334.33eliminate the need for the restriction in the most integrated setting and inclusive manner. 334.34The documentation must include the following information:334.35(1) the justification for the restriction based on an assessment of the person's 334.36vulnerability related to exercising the right without restriction;335.1(2) the objective measures set as conditions for ending the restriction;335.2(3) a schedule for reviewing the need for the restriction based on the conditions 335.3for ending the restriction to occur semiannually from the date of initial approval, at a 335.4minimum, or more frequently if requested by the person, the person's legal representative, 335.5if any, and case manager; and335.6(4) signed and dated approval for the restriction from the person, or the person's 335.7legal representative, if any. A restriction may be implemented only when the required 335.8approval has been obtained. Approval may be withdrawn at any time. If approval is 335.9withdrawn, the right must be immediately and fully restored.335.10    Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is 335.11amended to read:335.12    Subdivision 1. Health needs. (a) The license holder is responsible for meeting 335.13health service needs assigned in the coordinated service and support plan or the 335.14coordinated service and support plan addendum, consistent with the person's health needs. 335.15The license holder is responsible for promptly notifying the person's legal representative, 335.16if any, and the case manager of changes in a person's physical and mental health needs 335.17affecting health service needs assigned to the license holder in the coordinated service and 335.18support plan or the coordinated service and support plan addendum, when discovered by 335.19the license holder, unless the license holder has reason to know the change has already 335.20been reported. The license holder must document when the notice is provided.335.21(b) If responsibility for meeting the person's health service needs has been assigned 335.22to the license holder in the coordinated service and support plan or the coordinated service 335.23and support plan addendum, the license holder must maintain documentation on how the 335.24person's health needs will be met, including a description of the procedures the license 335.25holder will follow in order to:335.26(1) provide medication setup, assistance, or medication administration according 335.27to this chapter. Unlicensed staff responsible for medication setup or medication 335.28administration under this section must complete training according to section 245D.09, 335.29subdivision 4a, paragraph (d);335.30(2) monitor health conditions according to written instructions from a licensed 335.31health professional;335.32(3) assist with or coordinate medical, dental, and other health service appointments; or335.33(4) use medical equipment, devices, or adaptive aides or technology safely and 335.34correctly according to written instructions from a licensed health professional.336.1    Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a, 336.2is amended to read:336.3    Subd. 1a. Medication setup.(a) For the purposes of this subdivision, "medication 336.4setup" means the arranging of medications according to instructions from the pharmacy, 336.5the prescriber, or a licensed nurse, for later administration when the license holder 336.6is assigned responsibility for medication assistance or medication administration in 336.7the coordinated service and support plan or the coordinated service and support plan 336.8addendum. A prescription label or the prescriber's written or electronically recorded order 336.9for the prescription is sufficient to constitute written instructions from the prescriber.336.10(b) If responsibility for medication setup is assigned to the license holder in 336.11the coordinated service and support plan or the coordinated service and support plan 336.12addendum, or if the license holder provides it as part of medication assistance or 336.13medication administration, the license holder must document in the person's medication 336.14administration record: dates of setup, name of medication, quantity of dose, times to be 336.15administered, and route of administration at time of setup; and, when the person will be 336.16away from home, to whom the medications were given.336.17    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b, 336.18is amended to read:336.19    Subd. 1b. Medication assistance.(a) For purposes of this subdivision, "medication 336.20assistance" means any of the following:336.21(1) bringing to the person and opening a container of previously set up medications, 336.22emptying the container into the person's hand, or opening and giving the medications in 336.23the original container to the person under the direction of the person;336.24(2) bringing to the person liquids or food to accompany the medication; or336.25(3) providing reminders to take regularly scheduled medication or perform regularly 336.26scheduled treatments and exercises.336.27(b) If responsibility for medication assistance is assigned to the license holder 336.28in the coordinated service and support plan or the coordinated service and support 336.29plan addendum, the license holder must ensure that the requirements of subdivision 2, 336.30paragraph (b), have been met when staff provides medication assistance to enableis 336.31provided in a manner that enables a person to self-administer medication or treatment 336.32when the person is capable of directing the person's own care, or when the person's legal 336.33representative is present and able to direct care for the person. For the purposes of this 336.34subdivision, "medication assistance" means any of the following:337.1(1) bringing to the person and opening a container of previously set up medications, 337.2emptying the container into the person's hand, or opening and giving the medications in 337.3the original container to the person;337.4(2) bringing to the person liquids or food to accompany the medication; or337.5(3) providing reminders to take regularly scheduled medication or perform regularly 337.6scheduled treatments and exercises.337.7    Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is 337.8amended to read:337.9    Subd. 2. Medication administration. (a) If responsibility for medication 337.10administration is assigned to the license holder in the coordinated service and support 337.11plan or the coordinated service and support plan addendum, the license holder must 337.12implement the following medication administration procedures to ensure a person takes 337.13medications and treatments as prescribed For purposes of this subdivision, "medication 337.14administration" means:337.15(1) checking the person's medication record;337.16(2) preparing the medication as necessary;337.17(3) administering the medication or treatment to the person;337.18(4) documenting the administration of the medication or treatment or the reason for 337.19not administering the medication or treatment; and337.20(5) reporting to the prescriber or a nurse any concerns about the medication or 337.21treatment, including side effects, effectiveness, or a pattern of the person refusing to 337.22take the medication or treatment as prescribed. Adverse reactions must be immediately 337.23reported to the prescriber or a nurse.337.24(b)(1) If responsibility for medication administration is assigned to the license holder 337.25in the coordinated service and support plan or the coordinated service and support plan 337.26addendum, the license holder must implement medication administration procedures 337.27to ensure a person takes medications and treatments as prescribed. The license holder 337.28must ensure that the requirements in clauses (2) to (4) and (3) have been met before 337.29administering medication or treatment.337.30(2) The license holder must obtain written authorization from the person or the 337.31person's legal representative to administer medication or treatment and must obtain 337.32reauthorization annually as needed. This authorization shall remain in effect unless it is 337.33withdrawn in writing and may be withdrawn at any time. If the person or the person's 337.34legal representative refuses to authorize the license holder to administer medication, the 338.1medication must not be administered. The refusal to authorize medication administration 338.2must be reported to the prescriber as expediently as possible.338.3(3) The staff person responsible for administering the medication or treatment must 338.4complete medication administration training according to section 245D.09, subdivision338.5 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).338.6(4) (3) For a license holder providing intensive support services, the medication or 338.7treatment must be administered according to the license holder's medication administration 338.8policy and procedures as required under section 
         245D.11, subdivision 2, clause (3).338.9(c) The license holder must ensure the following information is documented in the 338.10person's medication administration record:338.11(1) the information on the current prescription label or the prescriber's current 338.12written or electronically recorded order or prescription that includes the person's name, 338.13description of the medication or treatment to be provided, and the frequency and other 338.14information needed to safely and correctly administer the medication or treatment to 338.15ensure effectiveness;338.16(2) information on any risks or other side effects that are reasonable to expect, and 338.17any contraindications to its use. This information must be readily available to all staff 338.18administering the medication;338.19(3) the possible consequences if the medication or treatment is not taken or 338.20administered as directed;338.21(4) instruction on when and to whom to report the following:338.22(i) if a dose of medication is not administered or treatment is not performed as 338.23prescribed, whether by error by the staff or the person or by refusal by the person; and338.24(ii) the occurrence of possible adverse reactions to the medication or treatment;338.25(5) notation of any occurrence of a dose of medication not being administered or 338.26treatment not performed as prescribed, whether by error by the staff or the person or by 338.27refusal by the person, or of adverse reactions, and when and to whom the report was 338.28made; and338.29(6) notation of when a medication or treatment is started, administered, changed, or 338.30discontinued.338.31    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is 338.32amended to read:338.33    Subd. 4. Reviewing and reporting medication and treatment issues. (a) When 338.34assigned responsibility for medication administration, the license holder must ensure 338.35that the information maintained in the medication administration record is current and 339.1is regularly reviewed to identify medication administration errors. At a minimum, the 339.2review must be conducted every three months, or more frequently as directed in the 339.3coordinated service and support plan or coordinated service and support plan addendum 339.4or as requested by the person or the person's legal representative. Based on the review, 339.5the license holder must develop and implement a plan to correct patterns of medication 339.6administration errors when identified.339.7(b) If assigned responsibility for medication assistance or medication administration, 339.8the license holder must report the following to the person's legal representative and case 339.9manager as they occur or as otherwise directed in the coordinated service and support plan 339.10or the coordinated service and support plan addendum:339.11(1) any reports made to the person's physician or prescriber required under 339.12subdivision 2, paragraph (c), clause (4);339.13(2) a person's refusal or failure to take or receive medication or treatment as 339.14prescribed; or339.15(3) concerns about a person's self-administration of medication or treatment.339.16    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is 339.17amended to read:339.18    Subd. 5. Injectable medications. Injectable medications may be administered 339.19according to a prescriber's order and written instructions when one of the following 339.20conditions has been met:339.21(1) a registered nurse or licensed practical nurse will administer the subcutaneous or 339.22intramuscular injection;339.23(2) a supervising registered nurse with a physician's order has delegated the 339.24administration of subcutaneous injectable medication to an unlicensed staff member 339.25and has provided the necessary training; or339.26(3) there is an agreement signed by the license holder, the prescriber, and the 339.27person or the person's legal representative specifying what subcutaneous injections may 339.28be given, when, how, and that the prescriber must retain responsibility for the license 339.29holder's giving the injections. A copy of the agreement must be placed in the person's 339.30service recipient record.339.31Only licensed health professionals are allowed to administer psychotropic 339.32medications by injection.339.33    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:339.34245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.340.1    Subdivision 1. Conditions for psychotropic medication administration. (a) 340.2When a person is prescribed a psychotropic medication and the license holder is assigned 340.3responsibility for administration of the medication in the person's coordinated service 340.4and support plan or the coordinated service and support plan addendum, the license 340.5holder must ensure that the requirements in paragraphs (b) to (d) and section 
         245D.05, 340.6subdivision 2, are met.340.7(b) Use of the medication must be included in the person's coordinated service and 340.8support plan or in the coordinated service and support plan addendum and based on a 340.9prescriber's current written or electronically recorded prescription.340.10(c) (b) The license holder must develop, implement, and maintain the following 340.11documentation in the person's coordinated service and support plan addendum according 340.12to the requirements in sections 
         245D.07 and 
         245D.071:340.13(1) a description of the target symptoms that the psychotropic medication is to 340.14alleviate; and340.15(2) documentation methods the license holder will use to monitor and measure 340.16changes in the target symptoms that are to be alleviated by the psychotropic medication if 340.17required by the prescriber. The license holder must collect and report on medication and 340.18symptom-related data as instructed by the prescriber. The license holder must provide 340.19the monitoring data to the expanded support team for review every three months, or as 340.20otherwise requested by the person or the person's legal representative.340.21For the purposes of this section, "target symptom" refers to any perceptible 340.22diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic 340.23and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or 340.24successive editions, that has been identified for alleviation.340.25    Subd. 2. Refusal to authorize psychotropic medication. If the person or the 340.26person's legal representative refuses to authorize the administration of a psychotropic 340.27medication as ordered by the prescriber, the license holder must follow the requirement in 340.28section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication. 340.29The refusal to authorize medication administration must be reported to the prescriber as 340.30expediently as possible. After reporting the refusal to the prescriber, the license holder 340.31must follow any directives or orders given by the prescriber. A court order must be 340.32obtained to override the refusal.A refusal may not be overridden without a court order. 340.33Refusal to authorize administration of a specific psychotropic medication is not grounds 340.34for service termination and does not constitute an emergency. A decision to terminate 340.35services must be reached in compliance with section 
         245D.10, subdivision 3.341.1    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is 341.2amended to read:341.3    Subdivision 1. Incident response and reporting.  (a) The license holder must 341.4respond to incidents under section 
         245D.02, subdivision 11, that occur while providing 341.5services to protect the health and safety of and minimize risk of harm to the person.341.6(b) The license holder must maintain information about and report incidents to the 341.7person's legal representative or designated emergency contact and case manager within 341.824 hours of an incident occurring while services are being provided, within 24 hours of 341.9discovery or receipt of information that an incident occurred, unless the license holder 341.10has reason to know that the incident has already been reported, or as otherwise directed 341.11in a person's coordinated service and support plan or coordinated service and support 341.12plan addendum. An incident of suspected or alleged maltreatment must be reported as 341.13required under paragraph (d), and an incident of serious injury or death must be reported 341.14as required under paragraph (e).341.15(c) When the incident involves more than one person, the license holder must not 341.16disclose personally identifiable information about any other person when making the report 341.17to each person and case manager unless the license holder has the consent of the person.341.18(d) Within 24 hours of reporting maltreatment as required under section 
         626.556 341.19or 
         626.557, the license holder must inform the case manager of the report unless there is 341.20reason to believe that the case manager is involved in the suspected maltreatment. The 341.21license holder must disclose the nature of the activity or occurrence reported and the 341.22agency that received the report.341.23(e) The license holder must report the death or serious injury of the person as 341.24required in paragraph (b) and to the Department of Human Services Licensing Division, 341.25and the Office of Ombudsman for Mental Health and Developmental Disabilities as 341.26required under section 
         245.94, subdivision 2a, within 24 hours of the death, or receipt of 341.27information that the death occurred, unless the license holder has reason to know that the 341.28death has already been reported.341.29(f) When a death or serious injury occurs in a facility certified as an intermediate 341.30care facility for persons with developmental disabilities, the death or serious injury must 341.31be reported to the Department of Health, Office of Health Facility Complaints, and the 341.32Office of Ombudsman for Mental Health and Developmental Disabilities, as required 341.33under sections 
         245.91 and 
         245.94, subdivision 2a, unless the license holder has reason to 341.34know that the death has already been reported.341.35(g) The license holder must conduct an internal review of incident reports of deaths 341.36and serious injuries that occurred while services were being provided and that were not 342.1reported by the program as alleged or suspected maltreatment, for identification of incident 342.2patterns, and implementation of corrective action as necessary to reduce occurrences. 342.3The review must include an evaluation of whether related policies and procedures were 342.4followed, whether the policies and procedures were adequate, whether there is a need for 342.5additional staff training, whether the reported event is similar to past events with the 342.6persons or the services involved, and whether there is a need for corrective action by the 342.7license holder to protect the health and safety of persons receiving services. Based on 342.8the results of this review, the license holder must develop, document, and implement a 342.9corrective action plan designed to correct current lapses and prevent future lapses in 342.10performance by staff or the license holder, if any.342.11(h) The license holder must verbally report the emergency use of manual restraint 342.12of a person as required in paragraph (b) within 24 hours of the occurrence. The license 342.13holder must ensure the written report and internal review of all incident reports of the 342.14emergency use of manual restraints are completed according to the requirements in section 342.15245D.061 or successor provisions.342.16    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is 342.17amended to read:342.18    Subd. 2. Environment and safety. The license holder must:342.19(1) ensure the following when the license holder is the owner, lessor, or tenant 342.20of the service site:342.21(i) the service site is a safe and hazard-free environment;342.22(ii) that toxic substances or dangerous items are inaccessible to persons served by 342.23the program only to protect the safety of a person receiving services when a known safety 342.24threat exists and not as a substitute for staff supervision or interactions with a person who 342.25is receiving services. If toxic substances or dangerous items are made inaccessible, the 342.26license holder must document an assessment of the physical plant, its environment, and its 342.27population identifying the risk factors which require toxic substances or dangerous items 342.28to be inaccessible and a statement of specific measures to be taken to minimize the safety 342.29risk to persons receiving services and to restore accessibility to all persons receiving 342.30services at the service site;342.31(iii) doors are locked from the inside to prevent a person from exiting only when 342.32necessary to protect the safety of a person receiving services and not as a substitute for 342.33staff supervision or interactions with the person. If doors are locked from the inside, the 342.34license holder must document an assessment of the physical plant, the environment and 342.35the population served, identifying the risk factors which require the use of locked doors, 343.1and a statement of specific measures to be taken to minimize the safety risk to persons 343.2receiving services at the service site; and343.3(iv) a staff person is available at the service site who is trained in basic first aid and, 343.4when required in a person's coordinated service and support plan or coordinated service 343.5and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are 343.6present and staff are required to be at the site to provide direct support service. The CPR 343.7training must include in-person instruction, hands-on practice, and an observed skills 343.8assessment under the direct supervision of a CPR instructor;343.9(2) maintain equipment, vehicles, supplies, and materials owned or leased by the 343.10license holder in good condition when used to provide services;343.11(3) follow procedures to ensure safe transportation, handling, and transfers of the 343.12person and any equipment used by the person, when the license holder is responsible for 343.13transportation of a person or a person's equipment;343.14(4) be prepared for emergencies and follow emergency response procedures to 343.15ensure the person's safety in an emergency; and343.16(5) follow universal precautions and sanitary practices, including hand washing, for 343.17infection prevention and control, and to prevent communicable diseases.343.18    Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is 343.19amended to read:343.20    Subd. 4. Funds and property; legal representative restrictions. (a) Whenever the 343.21license holder assists a person with the safekeeping of funds or other property according 343.22to section 
         245A.04, subdivision 13, the license holder must obtain written authorization 343.23to do so from the person or the person's legal representative and the case manager. 343.24Authorization must be obtained within five working days of service initiation and renewed 343.25annually thereafter. At the time initial authorization is obtained, the license holder must 343.26survey, document, and implement the preferences of the person or the person's legal 343.27representative and the case manager for frequency of receiving a statement that itemizes 343.28receipts and disbursements of funds or other property. The license holder must document 343.29changes to these preferences when they are requested.343.30(b) A license holder or staff person may not accept powers-of-attorney from a person 343.31receiving services from the license holder for any purpose. This does not apply to license 343.32holders that are Minnesota counties or other units of government or to staff persons 343.33employed by license holders who were acting as attorney-in-fact for specific individuals 343.34prior to implementation of this chapter. The license holder must maintain documentation 343.35of the power-of-attorney in the service recipient record.344.1(c) A license holder or staff person is restricted from accepting an appointment 344.2as a guardian as follows:344.3(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency 344.4that provides residence, custodial care, medical care, employment training, or other care 344.5or services for which the individual or agency receives a fee may not be appointed as 344.6guardian unless related to the respondent by blood, marriage, or adoption; and344.7(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related 344.8individual as defined under section 245A.02, subdivision 13, is excluded from licensure. 344.9Services provided by a license holder to a person under the license holder's guardianship 344.10are not licensed services.344.11(c) (d) Upon the transfer or death of a person, any funds or other property of the 344.12person must be surrendered to the person or the person's legal representative, or given to 344.13the executor or administrator of the estate in exchange for an itemized receipt.344.14    Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is 344.15amended to read:344.16    Subd. 6. Restricted procedures.(a) The following procedures are allowed when 344.17the procedures are implemented in compliance with the standards governing their use as 344.18identified in clauses (1) to (3). Allowed but restricted procedures include:344.19(1) permitted actions and procedures subject to the requirements in subdivision 7;344.20(2) procedures identified in a positive support transition plan subject to the 344.21requirements in subdivision 8; or344.22(3) emergency use of manual restraint subject to the requirements in section 344.23245D.061
         .344.24For purposes of this chapter, this section supersedes the requirements identified in 344.25Minnesota Rules, part 9525.2740.344.26    (b) A restricted procedure identified in paragraph (a) must not:344.27    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect, 344.28physical abuse, or mental injury, as defined in section 626.556, subdivision 2;344.29(2) be implemented with an adult in a manner that constitutes abuse or neglect as 344.30defined in section 626.5572, subdivision 2 or 17;344.31(3) be implemented in a manner that violates a person's rights identified in section 344.32245D.04;344.33(4) restrict a person's normal access to a nutritious diet, drinking water, adequate 344.34ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping 345.1conditions, necessary clothing, or any protection required by state licensing standards or 345.2federal regulations governing the program;345.3(5) deny the person visitation or ordinary contact with legal counsel, a legal 345.4representative, or next of kin;345.5(6) be used for the convenience of staff, as punishment, as a substitute for adequate 345.6staffing, or as a consequence if the person refuses to participate in the treatment or services 345.7provided by the program;345.8(7) use prone restraint. For purposes of this section, "prone restraint" means use 345.9of manual restraint that places a person in a face-down position. Prone restraint does 345.10not include brief physical holding of a person who, during an emergency use of manual 345.11restraint, rolls into a prone position, if the person is restored to a standing, sitting, or 345.12side-lying position as quickly as possible;345.13(8) apply back or chest pressure while a person is in a prone position as identified in 345.14clause (7), supine position, or side-lying position; or345.15(9) be implemented in a manner that is contraindicated for any of the person's known 345.16medical or psychological limitations.345.17    Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is 345.18amended to read:345.19    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques 345.20and intervention procedures as identified in paragraphs (b) and (c) is permitted when used 345.21on an intermittent or continuous basis. When used on a continuous basis, it must be 345.22addressed in a person's coordinated service and support plan addendum as identified in 345.23sections 
         245D.07 and 
         245D.071. For purposes of this chapter, the requirements of this 345.24subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.345.25(b) Physical contact or instructional techniques must use the least restrictive 345.26alternative possible to meet the needs of the person and may be used:345.27(1) to calm or comfort a person by holding that person with no resistance from 345.28that person;345.29(2) to protect a person known to be at risk or of  injury due to frequent falls as a result 345.30of a medical condition;345.31(3) to facilitate the person's completion of a task or response when the person does 345.32not resist or the person's resistance is minimal in intensity and duration; or345.33(4) to briefly block or redirect a person's limbs or body without holding the person or 345.34limiting the person's movement to interrupt the person's behavior that may result in injury 345.35to self or others. with less than 60 seconds of physical contact by staff; or346.1(5) to redirect a person's behavior when the behavior does not pose a serious threat 346.2to the person or others and the behavior is effectively redirected with less than 60 seconds 346.3of physical contact by staff.346.4(c) Restraint may be used as an intervention procedure to:346.5(1) allow a licensed health care professional to safely conduct a medical examination 346.6or to provide medical treatment ordered by a licensed health care professional to a person 346.7necessary to promote healing or recovery from an acute, meaning short-term, medical 346.8condition;346.9(2) assist in the safe evacuation or redirection of a person in the event of an 346.10emergency and the person is at imminent risk of harm.; or346.11Any use of manual restraint as allowed in this paragraph must comply with the restrictions 346.12identified in section 245D.061, subdivision 3; or346.13(3) position a person with physical disabilities in a manner specified in the person's 346.14coordinated service and support plan addendum.346.15Any use of manual restraint as allowed in this paragraph must comply with the restrictions 346.16identified in subdivision 6, paragraph (b).346.17(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment 346.18ordered by a licensed health professional to treat a diagnosed medical condition do not in 346.19and of themselves constitute the use of mechanical restraint.346.20(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when 346.21being transported in a vehicle in accordance with seat belt use requirements in section 346.22169.686 does not constitute the use of mechanical restraint.346.23    Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is 346.24amended to read:346.25    Subd. 8. Positive support transition plan.(a) License holders must develop 346.26a positive support transition plan on the forms and in the manner prescribed by the 346.27commissioner for a person who requires intervention in order to maintain safety when 346.28it is known that the person's behavior poses an immediate risk of physical harm to self 346.29or others. The positive support transition plan forms and instructions will supersede the 346.30requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The 346.31positive support transition plan must phase out any existing plans for the emergency 346.32or programmatic use of aversive or deprivation procedures restrictive interventions346.33 prohibited under this chapter within the following timelines:347.1(1) for persons receiving services from the license holder before January 1, 2014, 347.2the plan must be developed and implemented by February 1, 2014, and phased out no 347.3later than December 31, 2014; and347.4(2) for persons admitted to the program on or after January 1, 2014, the plan must be 347.5developed and implemented within 30 calendar days of service initiation and phased out 347.6no later than 11 months from the date of plan implementation.347.7(b) The commissioner has limited authority to grant approval for the emergency use 347.8of procedures identified in subdivision 6 that had been part of an approved positive support 347.9transition plan when a person is at imminent risk of serious injury as defined in section 347.10245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:347.11(1) the person's expanded support team approves the emergency use of the 347.12procedures; and347.13(2) the interim review panel established in section 245.8251, subdivision 4, 347.14recommends commissioner approval of the emergency use of the procedures.347.15(c) Written requests for the emergency use of the procedures must be developed 347.16and submitted to the commissioner by the designated coordinator with input from the 347.17person's expanded support team in accordance with the requirements set by the interim 347.18review panel, in addition to the following:347.19(1) a copy of the person's current positive support transition plan and copies of 347.20each positive support transition plan review containing data on the progress of the plan 347.21from the previous year;347.22(2) documentation of a good faith effort to eliminate the use of the procedures that 347.23had been part of an approved positive support transition plan;347.24(3) justification for the continued use of the procedures that identifies the imminent 347.25risk of serious injury due to the person's self-injurious behavior if the procedures were 347.26eliminated;347.27(4) documentation of the clinicians consulted in creating and maintaining the 347.28positive support transition plan; and347.29(5) documentation of the expanded support team's approval and the recommendation 347.30from the interim panel required under paragraph (b).347.31(d) A copy of the written request, supporting documentation, and the commissioner's 347.32final determination on the request must be maintained in the person's service recipient 347.33record.347.34    Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3, 347.35is amended to read:348.1    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service 348.2initiation the license holder must complete a preliminary coordinated service and support 348.3plan addendum based on the coordinated service and support plan.348.4(b) Within 45 days of service initiation the license holder must meet with the person, 348.5the person's legal representative, the case manager, and other members of the support team 348.6or expanded support team to assess and determine the following based on the person's 348.7coordinated service and support plan and the requirements in subdivision 4 and section 348.8245D.07, subdivision 1a:348.9(1) the scope of the services to be provided to support the person's daily needs 348.10and activities;348.11(2) the person's desired outcomes and the supports necessary to accomplish the 348.12person's desired outcomes;348.13(3) the person's preferences for how services and supports are provided;348.14(4) whether the current service setting is the most integrated setting available and 348.15appropriate for the person; and348.16(5) how services must be coordinated across other providers licensed under this 348.17chapter serving the same person to ensure continuity of care for the person.348.18(c) Within the scope of services, the license holder must, at a minimum, assess 348.19the following areas:348.20(1) the person's ability to self-manage health and medical needs to maintain or 348.21improve physical, mental, and emotional well-being, including, when applicable, allergies, 348.22seizures, choking, special dietary needs, chronic medical conditions, self-administration 348.23of medication or treatment orders, preventative screening, and medical and dental 348.24appointments;348.25(2) the person's ability to self-manage personal safety to avoid injury or accident in 348.26the service setting, including, when applicable, risk of falling, mobility, regulating water 348.27temperature, community survival skills, water safety skills, and sensory disabilities; and348.28(3) the person's ability to self-manage symptoms or behavior that may otherwise 348.29result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to 348.30(7), suspension or termination of services by the license holder, or other symptoms 348.31or behaviors that may jeopardize the health and safety of the person or others. The 348.32assessments must produce information about the person that is descriptive of the person's 348.33overall strengths, functional skills and abilities, and behaviors or symptoms.348.34(b) Within the scope of services, the license holder must, at a minimum, complete 348.35assessments in the following areas before the 45-day planning meeting:349.1(1) the person's ability to self-manage health and medical needs to maintain or 349.2improve physical, mental, and emotional well-being, including, when applicable, allergies, 349.3seizures, choking, special dietary needs, chronic medical conditions, self-administration 349.4of medication or treatment orders, preventative screening, and medical and dental 349.5appointments;349.6(2) the person's ability to self-manage personal safety to avoid injury or accident in 349.7the service setting, including, when applicable, risk of falling, mobility, regulating water 349.8temperature, community survival skills, water safety skills, and sensory disabilities; and349.9(3) the person's ability to self-manage symptoms or behavior that may otherwise 349.10result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7), 349.11suspension or termination of services by the license holder, or other symptoms or 349.12behaviors that may jeopardize the health and safety of the person or others.349.13Assessments must produce information about the person that describes the person's overall 349.14strengths, functional skills and abilities, and behaviors or symptoms. Assessments must 349.15be based on the person's status within the last 12 months at the time of service initiation. 349.16Assessments based on older information must be documented and justified. Assessments 349.17must be conducted annually at a minimum or within 30 days of a written request from the 349.18person or the person's legal representative or case manager. The results must be reviewed 349.19by the support team or expanded support team as part of a service plan review.349.20(c) Within 45 days of service initiation, the license holder must meet with the 349.21person, the person's legal representative, the case manager, and other members of the 349.22support team or expanded support team to determine the following based on information 349.23obtained from the assessments identified in paragraph (b), the person's identified needs 349.24in the coordinated service and support plan, and the requirements in subdivision 4 and 349.25section 245D.07, subdivision 1a:349.26(1) the scope of the services to be provided to support the person's daily needs 349.27and activities;349.28(2) the person's desired outcomes and the supports necessary to accomplish the 349.29person's desired outcomes;349.30(3) the person's preferences for how services and supports are provided;349.31(4) whether the current service setting is the most integrated setting available and 349.32appropriate for the person; and349.33(5) how services must be coordinated across other providers licensed under this 349.34chapter serving the person and members of the support team or expanded support team to 349.35ensure continuity of care and coordination of services for the person.350.1    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4, 350.2is amended to read:350.3    Subd. 4. Service outcomes and supports. (a) Within ten working days of the 350.445-day planning meeting, the license holder must develop and document a service plan that 350.5documents the service outcomes and supports based on the assessments completed under 350.6subdivision 3 and the requirements in section 
         245D.07, subdivision 1a. The outcomes and 350.7supports must be included in the coordinated service and support plan addendum.350.8(b) The license holder must document the supports and methods to be implemented 350.9to support the accomplishment of person and accomplish outcomes related to acquiring, 350.10retaining, or improving skills and physical, mental, and emotional health and well-being. 350.11The documentation must include:350.12(1) the methods or actions that will be used to support the person and to accomplish 350.13the service outcomes, including information about:350.14(i) any changes or modifications to the physical and social environments necessary 350.15when the service supports are provided;350.16(ii) any equipment and materials required; and350.17(iii) techniques that are consistent with the person's communication mode and 350.18learning style;350.19(2) the measurable and observable criteria for identifying when the desired outcome 350.20has been achieved and how data will be collected;350.21(3) the projected starting date for implementing the supports and methods and 350.22the date by which progress towards accomplishing the outcomes will be reviewed and 350.23evaluated; and350.24(4) the names of the staff or position responsible for implementing the supports 350.25and methods.350.26(c) Within 20 working days of the 45-day meeting, the license holder must obtain 350.27dated signatures from the person or the person's legal representative and case manager 350.28to document completion and approval of the assessment and coordinated service and 350.29support plan addendum.350.30    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5, 350.31is amended to read:350.32    Subd. 5. Progress reviews Service plan review and evaluation. (a) The license 350.33holder must give the person or the person's legal representative and case manager an 350.34opportunity to participate in the ongoing review and development of the service plan 350.35and the methods used to support the person and accomplish outcomes identified in 351.1subdivisions 3 and 4. The license holder, in coordination with the person's support team 351.2or expanded support team, must meet with the person, the person's legal representative, 351.3and the case manager, and participate in progress service plan review meetings following 351.4stated timelines established in the person's coordinated service and support plan or 351.5coordinated service and support plan addendum or within 30 days of a written request 351.6by the person, the person's legal representative, or the case manager, at a minimum of 351.7once per year. The purpose of the service plan review is to determine whether changes 351.8are needed to the service plan based on the assessment information, the license holder's 351.9evaluation of progress towards accomplishing outcomes, or other information provided by 351.10the support team or expanded support team.351.11(b) The license holder must summarize the person's status and progress toward 351.12achieving the identified outcomes and make recommendations and identify the rationale 351.13for changing, continuing, or discontinuing implementation of supports and methods 351.14identified in subdivision 4 in a written report sent to the person or the person's legal 351.15representative and case manager five working days prior to the review meeting, unless 351.16the person, the person's legal representative, or the case manager requests to receive the 351.17report at the time of the meeting.351.18(c) Within ten working days of the progress review meeting, the license holder 351.19must obtain dated signatures from the person or the person's legal representative and 351.20the case manager to document approval of any changes to the coordinated service and 351.21support plan addendum.351.22    Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2, 351.23is amended to read:351.24    Subd. 2. Coordination and evaluation of individual service delivery. (a) Delivery 351.25and evaluation of services provided by the license holder must be coordinated by a 351.26designated staff person. The designated coordinator must provide supervision, support, 351.27and evaluation of activities that include:351.28(1) oversight of the license holder's responsibilities assigned in the person's 351.29coordinated service and support plan and the coordinated service and support plan 351.30addendum;351.31(2) taking the action necessary to facilitate the accomplishment of the outcomes 351.32according to the requirements in section 
         245D.07;351.33(3) instruction and assistance to direct support staff implementing the coordinated 351.34service and support plan and the service outcomes, including direct observation of service 351.35delivery sufficient to assess staff competency; and352.1(4) evaluation of the effectiveness of service delivery, methodologies, and progress on 352.2the person's outcomes based on the measurable and observable criteria for identifying when 352.3the desired outcome has been achieved according to the requirements in section 
         245D.07.352.4(b) The license holder must ensure that the designated coordinator is competent to 352.5perform the required duties identified in paragraph (a) through education and, training 352.6in human services and disability-related fields, and work experience in providing direct 352.7care services and supports to persons with disabilities relevant to the needs of the general 352.8population of persons served by the license holder and the individual persons for whom 352.9the designated coordinator is responsible. The designated coordinator must have the 352.10skills and ability necessary to develop effective plans and to design and use data systems 352.11to measure effectiveness of services and supports. The license holder must verify and 352.12document competence according to the requirements in section 
         245D.09, subdivision 3. 352.13The designated coordinator must minimally have:352.14(1) a baccalaureate degree in a field related to human services, and one year of 352.15full-time work experience providing direct care services to persons with disabilities or 352.16persons age 65 and older;352.17(2) an associate degree in a field related to human services, and two years of 352.18full-time work experience providing direct care services to persons with disabilities or 352.19persons age 65 and older;352.20(3) a diploma in a field related to human services from an accredited postsecondary 352.21institution and three years of full-time work experience providing direct care services to 352.22persons with disabilities or persons age 65 and older; or352.23(4) a minimum of 50 hours of education and training related to human services 352.24and disabilities; and352.25(5) four years of full-time work experience providing direct care services to persons 352.26with disabilities or persons age 65 and older under the supervision of a staff person who 352.27meets the qualifications identified in clauses (1) to (3).352.28    Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is 352.29amended to read:352.30    Subd. 3. Staff qualifications. (a) The license holder must ensure that staff providing 352.31direct support, or staff who have responsibilities related to supervising or managing the 352.32provision of direct support service, are competent as demonstrated through skills and 352.33knowledge training, experience, and education to meet the person's needs and additional 352.34requirements as written in the coordinated service and support plan or coordinated 352.35service and support plan addendum, or when otherwise required by the case manager or 353.1the federal waiver plan. The license holder must verify and maintain evidence of staff 353.2competency, including documentation of:353.3(1) education and experience qualifications relevant to the job responsibilities 353.4assigned to the staff and to the needs of the general population of persons served by the 353.5program, including a valid degree and transcript, or a current license, registration, or 353.6certification, when a degree or licensure, registration, or certification is required by this 353.7chapter or in the coordinated service and support plan or coordinated service and support 353.8plan addendum;353.9(2) demonstrated competency in the orientation and training areas required under 353.10this chapter, and when applicable, completion of continuing education required to 353.11maintain professional licensure, registration, or certification requirements. Competency in 353.12these areas is determined by the license holder through knowledge testing and or observed 353.13skill assessment conducted by the trainer or instructor; and353.14(3) except for a license holder who is the sole direct support staff, periodic 353.15performance evaluations completed by the license holder of the direct support staff 353.16person's ability to perform the job functions based on direct observation.353.17(b) Staff under 18 years of age may not perform overnight duties or administer 353.18medication.353.19    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a, 353.20is amended to read:353.21    Subd. 4a. Orientation to individual service recipient needs. (a) Before having 353.22unsupervised direct contact with a person served by the program, or for whom the staff 353.23person has not previously provided direct support, or any time the plans or procedures 353.24identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive 353.25instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff 353.26person's job functions for that person.353.27(b) Training and competency evaluations must include the following:353.28(1) appropriate and safe techniques in personal hygiene and grooming, including 353.29hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of 353.30daily living (ADLs) as defined under section 
         256B.0659, subdivision 1;353.31(2) an understanding of what constitutes a healthy diet according to data from the 353.32Centers for Disease Control and Prevention and the skills necessary to prepare that diet;353.33(3) skills necessary to provide appropriate support in instrumental activities of daily 353.34living (IADLs) as defined under section 
         256B.0659, subdivision 1; and353.35(4) demonstrated competence in providing first aid.354.1(c) The staff person must review and receive instruction on the person's coordinated 354.2service and support plan or coordinated service and support plan addendum as it relates 354.3to the responsibilities assigned to the license holder, and when applicable, the person's 354.4individual abuse prevention plan, to achieve and demonstrate an understanding of the 354.5person as a unique individual, and how to implement those plans.354.6(d) The staff person must review and receive instruction on medication setup, 354.7assistance, or administration procedures established for the person when medication 354.8administration is assigned to the license holder according to section 
         245D.05, subdivision 354.91
         , paragraph (b). Unlicensed staff may administer medications perform medication setup 354.10or medication administration only after successful completion of a medication setup or 354.11medication administration training, from a training curriculum developed by a registered 354.12nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse 354.13practitioner, physician's assistant, or physician or appropriate licensed health professional. 354.14The training curriculum must incorporate an observed skill assessment conducted by the 354.15trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow 354.16medication procedures.354.17Medication administration must be taught by a registered nurse, clinical nurse 354.18specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of 354.19service initiation or any time thereafter, the person has or develops a health care condition 354.20that affects the service options available to the person because the condition requires:354.21(1) specialized or intensive medical or nursing supervision; and354.22(2) nonmedical service providers to adapt their services to accommodate the health 354.23and safety needs of the person.354.24(e) The staff person must review and receive instruction on the safe and correct 354.25operation of medical equipment used by the person to sustain life, including but not 354.26limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided 354.27by a licensed health care professional or a manufacturer's representative and incorporate 354.28an observed skill assessment to ensure staff demonstrate the ability to safely and correctly 354.29operate the equipment according to the treatment orders and the manufacturer's instructions.354.30(f) The staff person must review and receive instruction on what constitutes use of 354.31restraints, time out, and seclusion, including chemical restraint, and staff responsibilities 354.32related to the prohibitions of their use according to the requirements in section 
         245D.06, 354.33subdivision 5, or successor provisions why such procedures are not effective for reducing 354.34or eliminating symptoms or undesired behavior and why they are not safe, and the safe 354.35and correct use of manual restraint on an emergency basis according to the requirements 354.36in section 
         245D.061 or successor provisions.355.1(g) The staff person must review and receive instruction on mental health crisis 355.2response, de-escalation techniques, and suicide intervention when providing direct support 355.3to a person with a serious mental illness.355.4(g)(h) In the event of an emergency service initiation, the license holder must ensure 355.5the training required in this subdivision occurs within 72 hours of the direct support staff 355.6person first having unsupervised contact with the person receiving services. The license 355.7holder must document the reason for the unplanned or emergency service initiation and 355.8maintain the documentation in the person's service recipient record.355.9(h)(i) License holders who provide direct support services themselves must 355.10complete the orientation required in subdivision 4, clauses (3) to (7).355.11    Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2, 355.12is amended to read:355.13    Subd. 2. Behavior professional qualifications. A behavior professional providing 355.14behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 355.15clause (1), item (i), as defined in the brain injury and community alternatives for disabled 355.16individuals waiver plans or successor plans, must have competencies in the following 355.17areas related to as required under the brain injury and community alternatives for disabled 355.18individuals waiver plans or successor plans:355.19(1) ethical considerations;355.20(2) functional assessment;355.21(3) functional analysis;355.22(4) measurement of behavior and interpretation of data;355.23(5) selecting intervention outcomes and strategies;355.24(6) behavior reduction and elimination strategies that promote least restrictive 355.25approved alternatives;355.26(7) data collection;355.27(8) staff and caregiver training;355.28(9) support plan monitoring;355.29(10) co-occurring mental disorders or neurocognitive disorder;355.30(11) demonstrated expertise with populations being served; and355.31(12) must be a:355.32(i) psychologist licensed under sections 
         148.88 to 
         148.98, who has stated to the 355.33Board of Psychology competencies in the above identified areas;355.34(ii) clinical social worker licensed as an independent clinical social worker under 355.35chapter 148D, or a person with a master's degree in social work from an accredited college 356.1or university, with at least 4,000 hours of post-master's supervised experience in the 356.2delivery of clinical services in the areas identified in clauses (1) to (11);356.3(iii) physician licensed under chapter 147 and certified by the American Board 356.4of Psychiatry and Neurology or eligible for board certification in psychiatry with 356.5competencies in the areas identified in clauses (1) to (11);356.6(iv) licensed professional clinical counselor licensed under sections 
         148B.29 to 356.7148B.39
          with at least 4,000 hours of post-master's supervised experience in the delivery 356.8of clinical services who has demonstrated competencies in the areas identified in clauses 356.9(1) to (11);356.10(v) person with a master's degree from an accredited college or university in one 356.11of the behavioral sciences or related fields, with at least 4,000 hours of post-master's 356.12supervised experience in the delivery of clinical services with demonstrated competencies 356.13in the areas identified in clauses (1) to (11); or356.14(vi) registered nurse who is licensed under sections 
         148.171 to 
         148.285, and who is 356.15certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 356.16mental health nursing by a national nurse certification organization, or who has a master's 356.17degree in nursing or one of the behavioral sciences or related fields from an accredited 356.18college or university or its equivalent, with at least 4,000 hours of post-master's supervised 356.19experience in the delivery of clinical services.356.20    Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3, 356.21is amended to read:356.22    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing 356.23behavioral support services as identified in section 245D.03, subdivision 1, paragraph 356.24(c), clause (1), item (i), as defined in the brain injury and community alternatives for 356.25disabled individuals waiver plans or successor plans, must have competencies in the 356.26following areas as required under the brain injury and community alternatives for disabled 356.27individuals waiver plans or successor plans:356.28(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services 356.29discipline; or356.30(2) meet the qualifications of a mental health practitioner as defined in section 356.31245.462, subdivision 17
         .356.32(b) In addition, a behavior analyst must:356.33(1) have four years of supervised experience working with individuals who exhibit 356.34challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;357.1(2) have received ten hours of instruction in functional assessment and functional 357.2analysis;357.3(3) have received 20 hours of instruction in the understanding of the function of 357.4behavior;357.5(4) have received ten hours of instruction on design of positive practices behavior 357.6support strategies;357.7(5) have received 20 hours of instruction on the use of behavior reduction approved 357.8strategies used only in combination with behavior positive practices strategies;357.9(6) be determined by a behavior professional to have the training and prerequisite 357.10skills required to provide positive practice strategies as well as behavior reduction 357.11approved and permitted intervention to the person who receives behavioral support; and357.12(7) be under the direct supervision of a behavior professional.357.13    Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4, 357.14is amended to read:357.15    Subd. 4. Behavior specialist qualifications. (a) A behavior specialist providing 357.16behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 357.17clause (1), item (i), as defined in the brain injury and community alternatives for disabled 357.18individuals waiver plans or successor plans, must meet the following qualifications have 357.19competencies in the following areas as required under the brain injury and community 357.20alternatives for disabled individuals waiver plans or successor plans:357.21(1) have an associate's degree in a social services discipline; or357.22(2) have two years of supervised experience working with individuals who exhibit 357.23challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.357.24(b) In addition, a behavior specialist must:357.25(1) have received a minimum of four hours of training in functional assessment;357.26(2) have received 20 hours of instruction in the understanding of the function of 357.27behavior;357.28(3) have received ten hours of instruction on design of positive practices behavioral 357.29support strategies;357.30(4) be determined by a behavior professional to have the training and prerequisite 357.31skills required to provide positive practices strategies as well as behavior reduction 357.32approved intervention to the person who receives behavioral support; and357.33(5) be under the direct supervision of a behavior professional.358.1    Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is 358.2amended to read:358.3    Subd. 3. Service suspension and service termination. (a) The license holder must 358.4establish policies and procedures for temporary service suspension and service termination 358.5that promote continuity of care and service coordination with the person and the case 358.6manager and with other licensed caregivers, if any, who also provide support to the person.358.7(b) The policy must include the following requirements:358.8(1) the license holder must notify the person or the person's legal representative and 358.9case manager in writing of the intended termination or temporary service suspension, and 358.10the person's right to seek a temporary order staying the termination of service according to 358.11the procedures in section 
         256.045, subdivision 4a, or 6, paragraph (c);358.12(2) notice of the proposed termination of services, including those situations that 358.13began with a temporary service suspension, must be given at least 60 days before the 358.14proposed termination is to become effective when a license holder is providing intensive 358.15supports and services identified in section 
         245D.03, subdivision 1, paragraph (c), and 30 358.16days prior to termination for all other services licensed under this chapter. This notice 358.17may be given in conjunction with a notice of temporary service suspension;358.18(3) notice of temporary service suspension must be given on the first day of the 358.19service suspension;358.20(3) (4) the license holder must provide information requested by the person or case 358.21manager when services are temporarily suspended or upon notice of termination;358.22(4) (5) prior to giving notice of service termination or temporary service suspension, 358.23the license holder must document actions taken to minimize or eliminate the need for 358.24service suspension or termination;358.25(5) (6) during the temporary service suspension or service termination notice period, 358.26the license holder will must work with the appropriate county agency support team or 358.27expanded support team to develop reasonable alternatives to protect the person and others;358.28(6) (7) the license holder must maintain information about the service suspension or 358.29termination, including the written termination notice, in the service recipient record; and358.30(7) (8) the license holder must restrict temporary service suspension to situations in 358.31which the person's conduct poses an imminent risk of physical harm to self or others and 358.32less restrictive or positive support strategies would not achieve and maintain safety.358.33    Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is 358.34amended to read:359.1    Subd. 4. Availability of current written policies and procedures. (a) The license 359.2holder must review and update, as needed, the written policies and procedures required 359.3under this chapter.359.4(b) (1) The license holder must inform the person and case manager of the policies 359.5and procedures affecting a person's rights under section 
         245D.04, and provide copies of 359.6those policies and procedures, within five working days of service initiation.359.7(2) If a license holder only provides basic services and supports, this includes the:359.8(i) grievance policy and procedure required under subdivision 2; and359.9(ii) service suspension and termination policy and procedure required under 359.10subdivision 3.359.11(3) For all other license holders this includes the:359.12(i) policies and procedures in clause (2);359.13(ii) emergency use of manual restraints policy and procedure required under section 359.14245D.061, subdivision 10, or successor provisions; and359.15(iii) data privacy requirements under section 
         245D.11, subdivision 3.359.16(c) The license holder must provide a written notice to all persons or their legal 359.17representatives and case managers at least 30 days before implementing any procedural 359.18revisions to policies affecting a person's service-related or protection-related rights under 359.19section 
         245D.04 and maltreatment reporting policies and procedures. The notice must 359.20explain the revision that was made and include a copy of the revised policy and procedure. 359.21The license holder must document the reasonable cause for not providing the notice at 359.22least 30 days before implementing the revisions.359.23(d) Before implementing revisions to required policies and procedures, the license 359.24holder must inform all employees of the revisions and provide training on implementation 359.25of the revised policies and procedures.359.26(e) The license holder must annually notify all persons, or their legal representatives, 359.27and case managers of any procedural revisions to policies required under this chapter, 359.28other than those in paragraph (c). Upon request, the license holder must provide the 359.29person, or the person's legal representative, and case manager with copies of the revised 359.30policies and procedures.359.31    Sec. 46. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is 359.32amended to read:359.33    Subd. 2. Health and safety. The license holder must establish policies and 359.34procedures that promote health and safety by ensuring:360.1(1) use of universal precautions and sanitary practices in compliance with section 360.2245D.06, subdivision 2
         , clause (5);360.3(2) if the license holder operates a residential program, health service coordination 360.4and care according to the requirements in section 
         245D.05, subdivision 1;360.5(3) safe medication assistance and administration according to the requirements 360.6in sections 
         245D.05, subdivisions 1a, 2, and 5, and 
         245D.051, that are established in 360.7consultation with a registered nurse, nurse practitioner, physician's assistant, or medical 360.8doctor and require completion of medication administration training according to the 360.9requirements in section 
         245D.09, subdivision 4a, paragraph (d). Medication assistance 360.10and administration includes, but is not limited to:360.11(i) providing medication-related services for a person;360.12(ii) medication setup;360.13(iii) medication administration;360.14(iv) medication storage and security;360.15(v) medication documentation and charting;360.16(vi) verification and monitoring of effectiveness of systems to ensure safe medication 360.17handling and administration;360.18(vii) coordination of medication refills;360.19(viii) handling changes to prescriptions and implementation of those changes;360.20(ix) communicating with the pharmacy; and360.21(x) coordination and communication with prescriber;360.22(4) safe transportation, when the license holder is responsible for transportation of 360.23persons, with provisions for handling emergency situations according to the requirements 360.24in section 
         245D.06, subdivision 2, clauses (2) to (4);360.25(5) a plan for ensuring the safety of persons served by the program in emergencies as 360.26defined in section 
         245D.02, subdivision 8, and procedures for staff to report emergencies 360.27to the license holder. A license holder with a community residential setting or a day service 360.28facility license must ensure the policy and procedures comply with the requirements in 360.29section 
         245D.22, subdivision 4;360.30(6) a plan for responding to all incidents as defined in section 
         245D.02, subdivision 360.3111; and reporting all incidents required to be reported according to section 
         245D.06, 360.32subdivision 1. The plan must:360.33(i) provide the contact information of a source of emergency medical care and 360.34transportation; and360.35(ii) require staff to first call 911 when the staff believes a medical emergency may 360.36be life threatening, or to call the mental health crisis intervention team or similar mental 361.1health response team or service when such a team is available and appropriate when the 361.2person is experiencing a mental health crisis; and361.3(7) a procedure for the review of incidents and emergencies to identify trends or 361.4patterns, and corrective action if needed. The license holder must establish and maintain 361.5a record-keeping system for the incident and emergency reports. Each incident and 361.6emergency report file must contain a written summary of the incident. The license holder 361.7must conduct a review of incident reports for identification of incident patterns, and 361.8implementation of corrective action as necessary to reduce occurrences. Each incident 361.9report must include:361.10(i) the name of the person or persons involved in the incident. It is not necessary 361.11to identify all persons affected by or involved in an emergency unless the emergency 361.12resulted in an incident;361.13(ii) the date, time, and location of the incident or emergency;361.14(iii) a description of the incident or emergency;361.15(iv) a description of the response to the incident or emergency and whether a person's 361.16coordinated service and support plan addendum or program policies and procedures were 361.17implemented as applicable;361.18(v) the name of the staff person or persons who responded to the incident or 361.19emergency; and361.20(vi) the determination of whether corrective action is necessary based on the results 361.21of the review.361.22    Sec. 47. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:361.23    Subd. 2. Vendor participation and reimbursement. Notwithstanding requirements 361.24in chapter chapters 245A and 245D, and sections 
         252.28, 
         252.40 to 
         252.46, and 
         256B.501, 361.25vendors of day training and habilitation services may enter into written agreements with 361.26qualified businesses to provide additional training and supervision needed by individuals 361.27to maintain their employment.361.28    Sec. 48. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:361.29    Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies 361.30on aging the state and federal funds which are received for the senior nutrition programs 361.31of congregate dining and home-delivered meals in a manner consistent with federal 361.32requirements.362.1    Sec. 49. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 17, 362.2is amended to read:362.3    Subd. 17. Transportation costs.(a) "Nonemergency medical transportation 362.4service" means motor vehicle transportation provided by a public or private person 362.5that serves Minnesota health care program beneficiaries who do not require emergency 362.6ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered 362.7medical services. Nonemergency medical transportation service includes, but is not 362.8limited to, special transportation service, defined in section 174.29, subdivision 1.362.9(a)(b) Medical assistance covers medical transportation costs incurred solely for 362.10obtaining emergency medical care or transportation costs incurred by eligible persons in 362.11obtaining emergency or nonemergency medical care when paid directly to an ambulance 362.12company, common carrier, or other recognized providers of transportation services. 362.13Medical transportation must be provided by:362.14(1) an ambulance nonemergency medical transportation providers who meet the 362.15requirements of this subdivision;362.16(2) ambulances, as defined in section 
         144E.001, subdivision 2;362.17(2) special transportation; or362.18(3) common carrier including, but not limited to, bus, taxicab, other commercial 362.19carrier, or private automobile taxicabs and public transit, as defined in section 174.22, 362.20subdivision 7; or362.21(4) not-for-hire vehicles, including volunteer drivers.362.22(b)(c) Medical assistance covers special transportation, as defined in Minnesota 362.23Rules, part 9505.0315, subpart 1, item F, if the recipient has a physical or mental 362.24impairment that would prohibit the recipient from safely accessing and using a bus, 362.25taxi, other commercial transportation, or private automobile. nonemergency medical 362.26transportation provided by nonemergency medical transportation providers enrolled in 362.27the Minnesota health care programs.  All nonemergency medical transportation providers 362.28must comply with the operating standards for special transportation service as defined in 362.29sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and in consultation with 362.30the Minnesota Department of Transportation. All nonemergency medical transportation 362.31providers shall bill for nonemergency medical transportation services in accordance with 362.32Minnesota health care programs criteria.  Publicly operated transit systems, volunteers, 362.33and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.362.34(d) The administrative agency of nonemergency medical transportation must:362.35(1) adhere to the policies defined by the commissioner in consultation with the 362.36Nonemergency Medical Transportation Advisory Committee;363.1(2) pay nonemergency medical transportation providers for services provided to 363.2Minnesota health care programs beneficiaries to obtain covered medical services;363.3(3) provide data monthly to the commissioner on appeals, complaints, no-shows, 363.4canceled trips, and number of trips by mode; and363.5(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single 363.6administrative structure assessment tool that meets the technical requirements established 363.7by the commissioner, reconciles trip information with claims being submitted by 363.8providers, and ensures prompt payment for nonemergency medical transportation services.363.9    (e) Until the commissioner implements the single administrative structure and 363.10delivery system under subdivision 18e, clients shall obtain their level-of-service certificate 363.11from the commissioner or an entity approved by the commissioner that does not dispatch 363.12rides for clients using modes under paragraph (h), clauses (4), (5), (6), and (7).363.13    (f) The commissioner may use an order by the recipient's attending physician363.14 or a medical or mental health professional to certify that the recipient requires 363.15special transportation services nonemergency medical transportation services. Special363.16Nonemergency medical transportation providers shall perform driver-assisted services for 363.17eligible individuals, when appropriate. Driver-assisted service includes passenger pickup 363.18at and return to the individual's residence or place of business, assistance with admittance of 363.19the individual to the medical facility, and assistance in passenger securement or in securing 363.20of wheelchairs or stretchers in the vehicle. SpecialNonemergency medical transportation 363.21providers must obtain written documentation from the health care service provider who 363.22is serving the recipient being transported, identifying the time that the recipient arrived. 363.23Specialhave trip logs, which include pickup and drop-off times, signed by the medical 363.24provider or client attesting mileage traveled to obtain covered medical services, whichever 363.25is deemed most appropriate. Nonemergency medical transportation providers may not bill 363.26for separate base rates for the continuation of a trip beyond the original destination. Special363.27Nonemergency medical transportation providers must take recipientsclients to the health 363.28care provider, using the most direct route, and must not exceed 30 miles for a trip to a 363.29primary care provider or 60 miles for a trip to a specialty care provider, unless the recipient363.30client receives authorization from the local agency. The minimum medical assistance 363.31reimbursement rates for special transportation nonemergency medical  services are:363.32(1)(i) $17 for the base rate and $1.35 per mile for special transportation363.33 nonemergency medical  services to eligible persons who need a wheelchair-accessible van;363.34(ii) $11.50 for the base rate and $1.30 per mile for special nonemergency medical 363.35transportation services to eligible persons who do not need a wheelchair-accessible van; and364.1(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip, 364.2for special nonemergency medical  transportation services to eligible persons who need a 364.3stretcher-accessible vehicle;364.4(2) clients requesting client mileage reimbursement must sign the trip log attesting 364.5mileage traveled to obtain covered medical services.364.6(g) By July 1, 2015, the commissioner shall determine reimbursement for the modes 364.7under this paragraph and paragraphs (h) and (i), using existing rates in paragraph (f). The 364.8rates must be budget neutral, ensuring that the total aggregate payments are equal to the 364.9total aggregate payments for the same number and types of services in the base year 364.102013. The covered modes of nonemergency medical transportation include transportation 364.11provided directly by clients or family members of clients with their own transportation, 364.12volunteers using their own vehicles, taxicabs, and public transit, or provided to a client 364.13who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle, a vehicle that is not 364.14stretcher-accessible or lift/ramp equipped designed to transport seven or fewer persons, 364.15and a protected vehicle that is not an ambulance or police car and has safety locks, a 364.16video recorder, and a transparent thermoplastic partition between the passenger and the 364.17vehicle driver.364.18(h) The administrative agency shall use the level of service process established 364.19by the commissioner in consultation with the Nonemergency Medical Transportation 364.20Advisory Committee to determine the client's most appropriate mode of transportation.  364.21If public transit or a certified transportation provider is not available to provide the 364.22appropriate service mode for the client, the client may receive a onetime service upgrade. 364.23Clients can be found eligible for the most appropriate of the following modes:364.24(1) client reimbursement, which includes client mileage reimbursement provided 364.25to clients who have their own transportation or family who provides transportation to 364.26the client;364.27(2) volunteer transport, which includes transportation by volunteers using their 364.28own vehicle;364.29(3) unassisted transport, which includes transportation provided to a client by a 364.30taxicab or public transit. If a taxicab or publicly operated transit system is not available, 364.31the client can receive transportation from another nonemergency medical transportation 364.32provider;364.33(4) assisted transport, which includes transport provided to clients who require 364.34assistance by a nonemergency medical transportation provider;365.1(5) lift-equipped/ramp transport, which includes transport provided to a client who 365.2is dependent on a device and requires a nonemergency medical transportation provider 365.3with a vehicle containing a lift or ramp;365.4(6) protected transport, which includes transport to a client who has received a 365.5prescreening that has deemed other forms of transportation inappropriate and who requires 365.6a provider certified as a protected transport provider; and365.7(7) stretcher transport, which includes transport for a client in a prone or supine 365.8position and requires a nonemergency medical transportation provider with a vehicle that 365.9can transport a client in a prone or supine position.365.10(i) By July 1, 2015, local agencies shall administer and reimburse for modes within 365.11existing appropriations defined in paragraph (h), clauses (1) to (3). The commissioner 365.12shall administer and reimburse for modes within existing appropriations defined in 365.13paragraph (h), clauses (4) to (7). In accordance with subdivision 18e, by July 1, 2016, the 365.14local agency shall be the single administrative agency and shall administer and reimburse 365.15for modes defined in paragraph (h).365.16(j) The commissioner shall:365.17(1) in consultation with the Nonemergency Medical Transportation Advisory 365.18Committee, verify that the mode and use of nonemergency medical transportation is 365.19appropriate;365.20(2) verify that the client is going to an approved medical appointment; and365.21(3) investigate all complaints and appeals.365.22(k) The administrative agency shall pay for the services provided in this subdivision 365.23and seek reimbursement from the commissioner if appropriate.  As vendors of medical care, 365.24local agencies are subject to the provisions in section 256B.041, the sanctions and monetary 365.25recovery actions in section 256B.064, and Minnesota Rules parts 9505.2160 to 9505.2245.365.26(l) The base rates for specialnonemergency medical transportation services in areas 365.27defined under RUCA to be super rural shall be equal to the reimbursement rate established 365.28in paragraph (f), clause (1),  plus 11.3 percent;,  and365.29(3) for specialnonemergency medical transportation services in areas defined under 365.30RUCA to be rural or super rural areas:365.31(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125 365.32percent of the respective mileage rate in paragraph (f), clause (1); and365.33(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to 365.34112.5 percent of the respective mileage rate in paragraph (f), clause (1).366.1(c)(m) For purposes of reimbursement rates for specialnonemergency medical 366.2transportation services under paragraph (b), the zip code of the recipient's place of residence 366.3shall determine whether the urban, rural, or super rural reimbursement rate applies.366.4(d)(n) For purposes of this subdivision, "rural urban commuting area" or "RUCA" 366.5means a census-tract based classification system under which a geographical area is 366.6determined to be urban, rural, or super rural.366.7(e)(o) Effective for services provided on or after September 1, 2011, nonemergency 366.8transportation rates, including special nonemergency medical  transportation, taxi, and 366.9other commercial carriers, are reduced 4.5 percent. Payments made to managed care plans 366.10and county-based purchasing plans must be reduced for services provided on or after 366.11January 1, 2012, to reflect this reduction.366.12(p) Until July 1, 2016, clients using assisted transportation must continue with 366.13their current administrative agency. For clients newly assessed as needing assisted 366.14transportation, the local agency must continue to administer assisted transport when 366.15assistance requires door-to-door, and the commissioner shall administer assisted transport 366.16when assistance requires door-through-door.366.17    Sec. 50. Minnesota Statutes 2012, section 256B.0625, subdivision 18b, is amended to 366.18read:366.19    Subd. 18b. Broker dispatching prohibition. The commissioner shall not use a 366.20broker or coordinator for any purpose related to nonemergency medical transportation 366.21services under subdivision 18.366.22    Sec. 51. Minnesota Statutes 2012, section 256B.0625, subdivision 18c, is amended to 366.23read:366.24    Subd. 18c. Nonemergency Medical Transportation Advisory Committee.366.25(a) The Nonemergency Medical Transportation Advisory Committee shall advise the 366.26commissioner on the administration of nonemergency medical transportation covered 366.27under medical assistance. The advisory committee shall meet at least quarterly the first 366.28year following January 1, 2015, and at least biannually thereafter and may meet more 366.29frequently as required by the commissioner. The advisory committee shall annually 366.30elect a chair from among its members, who shall work with the commissioner or the 366.31commissioner's designee to establish the agenda for each meeting. The commissioner, or 366.32the commissioner's designee, shall attend all advisory committee meetings.366.33(b) The Nonemergency Medical Transportation Advisory Committee shall advise 366.34and make recommendations to the commissioner on:367.1(1) the development of, and periodic updates to, athe nonemergency medical 367.2transportation policy manual for nonemergency medical transportation services;367.3(2) policies and a funding source for reimbursing no-load miles;367.4(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the 367.5nonemergency medical transportation system;367.6(4) other issues identified in the 2011 evaluation report by the Office of the 367.7Legislative Auditor on medical nonemergency transportation; and367.8(5)(2) other aspects of the nonemergency medical transportation system, as 367.9requested by the commissioner.; and367.10(3) other aspects of the nonemergency medical transportation system, as requested by:367.11(i) a committee member, who may request an item to be placed on the agenda for 367.12a future meeting. The request may be considered by the committee and voted upon. 367.13If the motion carries, the meeting agenda item may be developed for presentation to 367.14the committee; and367.15(ii) a member of the public, who may approach the committee by letter or e-mail 367.16requesting that an item be placed on a future meeting agenda. The request may be 367.17considered by the committee and voted upon. If the motion carries, the agenda item may 367.18be developed for presentation to the committee.367.19(c) The Nonemergency Medical Transportation Advisory Committee shall 367.20coordinate its activities with the Minnesota Council on Transportation Access established 367.21under section 
         174.285. The chair of the advisory committee, or the chair's designee, shall 367.22attend all meetings of the Minnesota Council on Transportation Access.367.23(d) The Nonemergency Medical Transportation Advisory Committee shall expire 367.24December 1, 2014 2019.367.25    Sec. 52. Minnesota Statutes 2012, section 256B.0625, subdivision 18d, is amended to 367.26read:367.27    Subd. 18d. Advisory committee members. (a) The Nonemergency Medical 367.28Transportation Advisory Committee consists of:367.29(1) two voting members who represent counties, at least one of whom must represent 367.30a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 367.31Ramsey, Scott, Sherburne, Washington, and Wright four voting members who represent 367.32counties, utilizing the rural urban commuting area classification system. As defined in 367.33subdivision 17, these members shall be designated as follows:367.34(i) two counties within the 11-county metropolitan area;367.35(ii) one county representing the rural area of the state; and368.1(iii) one county representing the super rural area of the state.368.2The Association of Minnesota Counties shall appoint one county within the 11-county 368.3metropolitan area and one county representing the super rural area of the state. The 368.4Minnesota Inter-County Association shall appoint one county within the 11-county 368.5metropolitan area and one county representing the rural area of the state;368.6(2) fourthree voting members who represent medical assistance recipients, including 368.7persons with physical and developmental disabilities, persons with mental illness, seniors, 368.8children, and low-income individuals;368.9(3) four voting members who represent providers that deliver nonemergency medical 368.10transportation services to medical assistance enrollees;368.11(4) two voting members of the house of representatives, one from the majority 368.12party and one from the minority party, appointed by the speaker of the house, and two 368.13voting members from the senate, one from the majority party and one from the minority 368.14party, appointed by the Subcommittee on Committees of the Committee on Rules and 368.15Administration;368.16(5) one voting member who represents demonstration providers as defined in section 368.17256B.69, subdivision 2
         ;368.18(6) one voting member who represents an organization that contracts with state or 368.19local governments to coordinate transportation services for medical assistance enrollees; 368.20and368.21(7) one voting member who represents the Minnesota State Council on Disability;368.22(8) the commissioner of transportation or the commissioner's designee, who shall 368.23serve as a voting member;368.24(9) one voting member appointed by the Minnesota Ambulance Association; and368.25(10) one voting member appointed by the Minnesota Hospital Association.368.26(b) Members of the advisory committee shall not be employed by the Department of 368.27Human Services. Members of the advisory committee shall receive no compensation.368.28    Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18e, 368.29is amended to read:368.30    Subd. 18e. Single administrative structure and delivery system.(a) The 368.31commissioner shall implement a single administrative structure and delivery system 368.32for nonemergency medical transportation, beginning the latter of the date the single 368.33administrative assessment tool required in this paragraph is available for use, as 368.34determined by the commissioner or by July 1, 2014 2016. The single administrative 368.35structure and delivery system must:369.1(1) eliminate the distinction between access transportation services and special 369.2transportation services;369.3(2) enable all medical assistance recipients to follow the same process to obtain 369.4nonemergency medical transportation, regardless of their level of need;369.5(3) provide a single oversight framework for all providers of nonemergency medical 369.6transportation; and369.7(4) provide flexibility in service delivery, recognizing that clients fall along a 369.8continuum of needs and resources.369.9(b) The commissioner shall present to the legislature, by January 15, 2014, 369.10legislation necessary to implement the single administrative structure and delivery system 369.11for nonemergency medical transportation.369.12(c) In developing the single administrative structure and delivery system and the draft 369.13legislation, the commissioner shall consult with the Nonemergency Medical Transportation 369.14Advisory Committee. In coordination with the Department of Transportation, the 369.15commissioner shall develop and authorize a Web-based single administrative structure 369.16and assessment tool, which must operate 24 hours a day, seven days a week, to facilitate 369.17the enrollee assessment process for nonemergency medical transportation services.  369.18The Web-based tool shall facilitate the transportation eligibility determination process 369.19initiated by clients and client advocates; shall include an accessible automated intake 369.20and assessment process and real-time identification of level of service eligibility; and 369.21shall authorize an appropriate and auditable mode of transportation authorization.  The 369.22tool shall provide a single framework for reconciling trip information with claiming and 369.23collecting complaints regarding inappropriate level of need determinations, inappropriate 369.24transportation modes utilized, and interference with accessing nonemergency medical 369.25transportation.  The Web-based single administrative structure shall operate on a trial 369.26basis for one year from implementation and, if approved by the commissioner, shall be 369.27permanent thereafter. The commissioner shall seek input from the Nonemergency Medical 369.28Transportation Advisory Committee to ensure the software is effective and user-friendly 369.29and make recommendations regarding funding of the single administrative system.369.30    Sec. 54. Minnesota Statutes 2012, section 256B.0625, subdivision 18g, is amended to 369.31read:369.32    Subd. 18g. Use of standardized measures.The commissioner, in consultation 369.33with the Nonemergency Medical Transportation Advisory Committee, shall establish 369.34performance measures to assess the cost-effectiveness and quality of nonemergency 369.35medical transportation. At a minimum, performance measures should include the number 370.1of unique participants served by type of transportation provider, number of trips provided 370.2by type of transportation provider, and cost per trip by type of transportation provider. The 370.3commissioner must also consider the measures identified in the January 2012 Department 370.4of Human Services report to the legislature on nonemergency medical transportation.370.5 Beginning in calendar year 2013 2015, the commissioner shall collect, audit, and analyze 370.6performance data on nonemergency medical transportation annually and report this 370.7information on the agency's Web site. The commissioner shall periodically supplement 370.8this information with the results of consumer surveys of the quality of services, and shall 370.9make these survey findings available to the public on the agency Web site.370.10    Sec. 55. Minnesota Statutes 2012, section 256B.0625, is amended by adding a 370.11subdivision to read:370.12    Subd. 18h.Managed care.The following subdivisions do not apply to managed 370.13care plans and county-based purchasing plans:370.14    (1) subdivision 17, paragraphs (d) to (k);370.15    (2) subdivision 18e; and370.16    (3) subdivision 18g.370.17    Sec. 56. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:370.18    Subdivision 1. Personal needs allowance. (a) Notwithstanding any law to the 370.19contrary, welfare allowances for clothing and personal needs for individuals receiving 370.20medical assistance while residing in any skilled nursing home, intermediate care facility, 370.21or medical institution including recipients of Supplemental Security Income, in this state 370.22shall not be less than $45 per month from all sources. When benefit amounts for Social 370.23Security or Supplemental Security Income recipients are increased pursuant to United 370.24States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the 370.25month in which the increase takes effect, increase by the same percentage to the nearest 370.26whole dollar the clothing and personal needs allowance for individuals receiving medical 370.27assistance while residing in any skilled nursing home, medical institution, or intermediate 370.28care facility. The commissioner shall provide timely notice to local agencies, providers, 370.29and recipients of increases under this provision.370.30(b) The personal needs allowance may be paid as part of the Minnesota supplemental 370.31aid program, and payments to recipients of Minnesota supplemental aid may be made once 370.32each three months covering liabilities that accrued during the preceding three months.370.33(c) The personal needs allowance shall be increased to include income garnished 370.34for child support under a court order, up to a maximum of $250 per month but only to 371.1the extent that the amount garnished is not deducted as a monthly allowance for children 371.2under section 
         256B.0575, paragraph (a), clause (5).371.3(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause 371.4(1), the personal needs allowance shall be increased to include income garnished for 371.5spousal maintenance under a judgment and decree for dissolution of marriage, and any 371.6administrative fees garnished for collection efforts.371.7    Sec. 57. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1, 371.8is amended to read:371.9    Subdivision 1. Development and implementation of quality profiles. (a) The 371.10commissioner of human services, in cooperation with the commissioner of health, shall 371.11develop and implement quality profiles for nursing facilities and, beginning not later than 371.12July 1, 2014, for home and community-based services providers, except when the quality 371.13profile system would duplicate requirements under section 
         256B.5011, 
         256B.5012, or 371.14256B.5013
         . For purposes of this section, home and community-based services providers 371.15are defined as providers of home and community-based services under sections 
         256B.0625, 371.16subdivisions 6a, 7, and 19a; 256B.0913
         ,;256B.0915,;256B.092, and;256B.49,; and 371.17256B.85, and intermediate care facilities for persons with developmental disabilities 371.18providers under section 
         256B.5013. To the extent possible, quality profiles must be 371.19developed for providers of services to older adults and people with disabilities, regardless 371.20of payor source, for the purposes of providing information to consumers. The quality 371.21profiles must be developed using existing data sets maintained by the commissioners of 371.22health and human services to the extent possible. The profiles must incorporate or be 371.23coordinated with information on quality maintained by area agencies on aging, long-term 371.24care trade associations, the ombudsman offices, counties, tribes, health plans, and other 371.25entities and the long-term care database maintained under section 
         256.975, subdivision 7. 371.26The profiles must be designed to provide information on quality to:371.27(1) consumers and their families to facilitate informed choices of service providers;371.28(2) providers to enable them to measure the results of their quality improvement 371.29efforts and compare quality achievements with other service providers; and371.30(3) public and private purchasers of long-term care services to enable them to 371.31purchase high-quality care.371.32(b) The profiles must be developed in consultation with the long-term care task 371.33force, area agencies on aging, and representatives of consumers, providers, and labor 371.34unions. Within the limits of available appropriations, the commissioners may employ 371.35consultants to assist with this project.372.1EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.372.2    Sec. 58. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7, 372.3is amended to read:372.4    Subd. 7. Calculation of home and community-based services quality add-on. 372.5Effective On July 1, 2015, the commissioner shall determine the quality add-on rate 372.6change and adjust payment rates for participating all home and community-based services 372.7providers for services rendered on or after that date. The adjustment to a provider payment 372.8rate determined under this subdivision shall become part of the ongoing rate paid to that 372.9provider. The payment rate for the quality add-on shall be a variable amount based on 372.10each provider's quality score as determined in subdivisions 1 and 2a. All home and 372.11community-based services providers shall receive a minimum rate increase under this 372.12subdivision. In addition to a minimum rate increase, a home and community-based 372.13services provider shall receive a quality add-on payment. The commissioner shall limit 372.14the types of home and community-based services providers that may receive the quality 372.15add-on and based on availability of quality measures and outcome data. The commissioner 372.16shall limit the amount of the minimum rate increase and quality add-on payments to 372.17operate the quality add-on within funds appropriated for this purpose and based on the 372.18availability of the quality measures the equivalent of a one percent rate increase for all 372.19home and community-based services providers.372.20    Sec. 59. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53, 372.21is amended to read:372.22    Subd. 53. Calculation of payment rate for external fixed costs. The commissioner 372.23shall calculate a payment rate for external fixed costs.372.24    (a) For a facility licensed as a nursing home, the portion related to section 
         256.9657 372.25shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care 372.26home, the portion related to section 
         256.9657 shall be equal to $8.86 multiplied by the 372.27result of its number of nursing home beds divided by its total number of licensed beds.372.28    (b) The portion related to the licensure fee under section 
         144.122, paragraph (d), 372.29shall be the amount of the fee divided by actual resident days.372.30    (c) The portion related to scholarships shall be determined under section 
         256B.431, 372.31subdivision 36.372.32    (d) Until September 30, 2013, the portion related to long-term care consultation shall 372.33be determined according to section 
         256B.0911, subdivision 6.373.1    (e) The portion related to development and education of resident and family advisory 373.2councils under section 
         144A.33 shall be $5 divided by 365.373.3    (f) The portion related to planned closure rate adjustments shall be as determined 373.4under section 
         256B.437, subdivision 6, and Minnesota Statutes 2010, section 
         256B.436. 373.5Planned closure rate adjustments that take effect before October 1, 2014, shall no longer 373.6be included in the payment rate for external fixed costs beginning October 1, 2016. 373.7Planned closure rate adjustments that take effect on or after October 1, 2014, shall no 373.8longer be included in the payment rate for external fixed costs beginning on October 1 of 373.9the first year not less than two years after their effective date.373.10    (g) The portions related to property insurance, real estate taxes, special assessments, 373.11and payments made in lieu of real estate taxes directly identified or allocated to the nursing 373.12facility shall be the actual amounts divided by actual resident days.373.13    (h) The portion related to the Public Employees Retirement Association shall be 373.14actual costs divided by resident days.373.15    (i) The single bed room incentives shall be as determined under section 
         256B.431, 373.16subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall 373.17no longer be included in the payment rate for external fixed costs beginning October 1, 373.182016. Single bed room incentives that take effect on or after October 1, 2014, shall no 373.19longer be included in the payment rate for external fixed costs beginning on October 1 of 373.20the first year not less than two years after their effective date.373.21    (j)  The portion related to the rate adjustment as provided in section 77, subdivision 3.373.22    (k) The payment rate for external fixed costs shall be the sum of the amounts in 373.23paragraphs (a) to (i) (j).373.24    Sec. 60. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 63, 373.25is amended to read:373.26    Subd. 63. Critical access nursing facilities. (a) The commissioner, in consultation 373.27with the commissioner of health, may designate certain nursing facilities as critical access 373.28nursing facilities. The designation shall be granted on a competitive basis, within the 373.29limits of funds appropriated for this purpose.373.30(b) The commissioner shall request proposals from nursing facilities every 373.31two years. Proposals must be submitted in the form and according to the timelines 373.32established by the commissioner. In selecting applicants to designate, the commissioner, 373.33in consultation with the commissioner of health, and with input from stakeholders, shall 373.34develop criteria designed to preserve access to nursing facility services in isolated areas, 373.35rebalance long-term care, and improve quality. Beginning in fiscal year 2015, to the 374.1extent practicable, the commissioner shall ensure an even distribution of designations 374.2across the state.374.3(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing 374.4facilities designated as critical access nursing facilities:374.5(1) partial rebasing, with the commissioner allowing a designated facility operating 374.6payment rates being the sum of  up to 60 percent of the operating payment rate determined 374.7in accordance with subdivision 54 and at least 40 percent, with the sum of the two portions 374.8being equal to 100 percent, of the operating payment rate that would have been allowed 374.9had the facility not been designated. The commissioner may adjust these percentages by 374.10up to 20 percent and may approve a request for less than the amount allowed;374.11(2) enhanced payments for leave days. Notwithstanding section 
         256B.431, 374.12subdivision 2r, upon designation as a critical access nursing facility, the commissioner 374.13shall limit payment for leave days to 60 percent of that nursing facility's total payment rate 374.14for the involved resident, and shall allow this payment only when the occupancy of the 374.15nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;374.16(3) two designated critical access nursing facilities, with up to 100 beds in active 374.17service, may jointly apply to the commissioner of health for a waiver of Minnesota 374.18Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The 374.19commissioner of health will consider each waiver request independently based on the 374.20criteria under Minnesota Rules, part 4658.0040;374.21(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e), 374.22shall be 40 percent of the amount that would otherwise apply; and374.23(5) notwithstanding subdivision 58, beginning October 1, 2014, the quality-based 374.24rate limits under subdivision 50 shall apply to designated critical access nursing facilities.374.25(d) Designation of a critical access nursing facility shall be for a period of two 374.26years, after which the benefits allowed under paragraph (c) shall be removed. Designated 374.27facilities may apply for continued designation.374.28    Sec. 61. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1, 374.29is amended to read:374.30    Subdivision 1. Provider qualifications. (a) For the home and community-based 374.31waivers providing services to seniors and individuals with disabilities under sections 374.32256B.0913
         , 
         256B.0915, 
         256B.092, and 
         256B.49, the commissioner shall establish:374.33(1) agreements with enrolled waiver service providers to ensure providers meet 374.34Minnesota health care program requirements;375.1(2) regular reviews of provider qualifications, and including requests of proof of 375.2documentation; and375.3(3) processes to gather the necessary information to determine provider qualifications.375.4    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section 375.5245C.02, subdivision 11
         , for services specified in the federally approved waiver plans 375.6must meet the requirements of chapter 245C prior to providing waiver services and as 375.7part of ongoing enrollment. Upon federal approval, this requirement must also apply to 375.8consumer-directed community supports.375.9    (c) Beginning January 1, 2014, service owners and managerial officials overseeing 375.10the management or policies of services that provide direct contact as specified in the 375.11federally approved waiver plans must meet the requirements of chapter 245C prior to 375.12reenrollment or revalidation or, for new providers, prior to initial enrollment if they have 375.13not already done so as a part of service licensure requirements.375.14    Sec. 62. Minnesota Statutes 2013 Supplement, section 256B.4913, subdivision 4a, 375.15is amended to read:375.16    Subd. 4a. Rate stabilization adjustment. (a) For purposes of this subdivision, 375.17"implementation period" shall mean means the period beginning January 1, 2014, and 375.18ending on the last day of the month in which the rate management system is populated 375.19with the data necessary to calculate rates for substantially all individuals receiving home 375.20and community-based waiver services under sections 256B.092 and 256B.49. "Banding 375.21period" means the time period beginning on January 1, 2014, and ending upon the 375.22expiration of the 12-month period defined in paragraph (c), clause (5).375.23(b) For purposes of this subdivision, the banding value historical rate for all service 375.24recipients shall mean means the individual reimbursement rate for a recipient in effect on 375.25December 1, 2013, except that:375.26(1)(i) for day training and habilitation pilot program service recipients, the banding 375.27value shall be the authorized rate for the provider in the county of service effective 375.28December 1, 2013, if thefor a day service recipient:who was not authorized to receive 375.29these waiver services prior to January 1, 2014; added a new service or services on or after 375.30January 1, 2014; or changed providers on or after January 1, 2014, the historical rate 375.31must be the authorized rate for the provider in the county of service, effective December 375.321, 2013; and or375.33(ii) for all other unit or day service recipients, the banding value shall be the 375.34weighted average authorized rate for each provider number in the county of service 375.35effective December 1, 2013, if the(2) for a unit-based service with programming or 376.1a unit-based service without programming recipient:who was not authorized to receive 376.2these waiver services prior to January 1, 2014; added a new service or services on or after 376.3January 1, 2014; or changed providers on or after January 1, 2014, the historical rate 376.4must be the weighted average authorized rate for each provider number in the county of 376.5service, effective December 1, 2013; and or376.6(2) (3) for residential service recipients who change providers on or after January 376.71, 2014, the banding value shall historical rate must be set by each lead agency within 376.8their county aggregate budget using their respective methodology for residential services 376.9effective December 1, 2013, for determining the provider rate for a similarly situated 376.10recipient being served by that provider.376.11(c) The commissioner shall adjust individual reimbursement rates determined under 376.12this section so that the unit rate is no higher or lower than:376.13(1) 0.5 percent from the banding value historical rate for the implementation period;376.14(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period 376.15immediately following the time period of clause (1);376.16(3) 1.0 percent from the rate in effect in clause (2), for the 12-month period 376.17immediately following the time period of clause (2);376.18(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period 376.19immediately following the time period of clause (3); and376.20(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period 376.21immediately following the time period of clause (4).376.22(d) The commissioner shall review all changes to rates that were in effect on 376.23December 1, 2013, to verify that  the rates in effect produce the equivalent level of spending 376.24and service unit utilization on an annual basis as those in effect on October 31, 2013.376.25(e) By December 31, 2014, the commissioner shall complete the review in paragraph 376.26(d), adjust rates to provide equivalent annual spending and make appropriate adjustments. 376.27(f) During the banding period, the Medicaid Management Information System 376.28(MMIS) service agreement rate must be adjusted to account for change in an individual's 376.29need. The commissioner shall adjust the Medicaid Management Information System 376.30(MMIS) service agreement rate by:376.31(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for 376.32the individual with variables reflecting the level of service in effect on December 1, 2013;376.33(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 376.349, for the individual with variables reflecting the updated level of service at the time 376.35of application; and377.1(3) adding to or subtracting from the Medicaid Management Information System 377.2(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).377.3(g) This subdivision shall must not apply to rates for recipients served by providers 377.4new to a given county after January 1, 2014. Providers of personal supports services who 377.5also acted as fiscal support entities must be treated as new providers as of January 1, 2014.377.6    Sec. 63. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 2, 377.7is amended to read:377.8    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the 377.9meanings given them, unless the context clearly indicates otherwise.377.10(b) "Commissioner" means the commissioner of human services.377.11(c) "Component value" means underlying factors that are part of the cost of providing 377.12services that are built into the waiver rates methodology to calculate service rates.377.13(d) "Customized living tool" means a methodology for setting service rates that 377.14delineates and documents the amount of each component service included in a recipient's 377.15customized living service plan.377.16(e) "Disability waiver rates system" means a statewide system that establishes rates 377.17that are based on uniform processes and captures the individualized nature of waiver 377.18services and recipient needs.377.19(f) "Individual staffing" means the time spent as a one-to-one interaction specific to 377.20an individual recipient by staff brought in solely to provide direct support and assistance 377.21with activities of daily living, instrumental activities of daily living, and training to 377.22participants, and is based on the requirements in each individual's coordinated service and 377.23support plan under section 245D.02, subdivision 4b; any coordinated service and support 377.24plan addendum under section 245D.02, subdivision 4c; an assessment tool; and provider 377.25observation of an individual's needs.377.26(g) "Lead agency" means a county, partnership of counties, or tribal agency charged 377.27with administering waivered services under sections 
         256B.092 and 
         256B.49.377.28(g) (h) "Median" means the amount that divides distribution into two equal groups, 377.29one-half above the median and one-half below the median.377.30(h) (i) "Payment or rate" means reimbursement to an eligible provider for services 377.31provided to a qualified individual based on an approved service authorization.377.32(i) (j) "Rates management system" means a Web-based software application that 377.33uses a framework and component values, as determined by the commissioner, to establish 377.34service rates.378.1(j) (k) "Recipient" means a person receiving home and community-based services 378.2funded under any of the disability waivers.378.3(l) "Shared staffing" means time spent by employees, not defined under paragraph (f) 378.4or (i), providing or available to provide more than one individual with direct support and 378.5assistance with activities of daily living as defined under section 256B.0659, subdivision 1, 378.6paragraph (b); instrumental activities of daily living as defined under section 256B.0659, 378.7subdivision 1, paragraph (i); ancillary activities needed to support individual services; and 378.8training to participants, and is based on the requirements in each individual's coordinated 378.9service and support plan under section 245D.02, subdivision 4b; any coordinated service 378.10and support plan addendum under section 245D.02, subdivision 4c; an assessment tool; 378.11and provider observation of an individual's service need. Total shared staffing hours are 378.12divided by the average number of individuals who receive the shared service provisions. 378.13(m) "Staffing ratio" means the number of recipients a service provider employee 378.14supports during a unit of service based on a uniform assessment tool, provider observation, 378.15case history, and the recipient's services of choice, and not based on the staffing ratios 378.16under section 245D.31.378.17    (n) "Unit of service" means the following:378.18    (1) for residential support services under subdivision 6, a unit of service is a day. 378.19Any portion of any calendar day, within allowable Medicaid rules, where an individual 378.20spends time in a residential setting is billable as a day;378.21    (2) for day services under subdivision 7:378.22    (i) for day training and habilitation services, a unit of service is either:378.23    (A) a day unit of service is defined as six or more hours of time spent providing 378.24direct services and transportation; or378.25    (B) a partial day unit of service is defined as fewer than six hours of time spent 378.26providing direct services and transportation; and378.27    (C) for new day service recipients after January 1, 2014, 15 minute units of 378.28service must be used for fewer than six hours of time spent providing direct services 378.29and transportation;378.30    (ii) for adult day and structured day services, a unit of service is a day or 15 minutes. 378.31A day unit of service is six or more hours of time spent providing direct services;378.32    (iii) for prevocational services, a unit of service is a day or an hour. A day unit of 378.33service is six or more hours of time spent providing direct service;378.34    (3) for unit-based services with programming under subdivision 8:379.1    (i) for supported living services, a unit of service is a day or 15 minutes. When a 379.2day rate is authorized, any portion of a calendar day where an individual receives services 379.3is billable as a day; and379.4    (ii) for all other services, a unit of service is 15 minutes; and379.5    (4) for unit-based services without programming under subdivision 9:379.6    (i) for respite services, a unit of service is a day or 15 minutes. When a day rate is 379.7authorized, any portion of a calendar day when an individual receives services is billable 379.8as a day; and379.9    (ii) for all other services, a unit of service is 15 minutes.379.10    Sec. 64. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 4, 379.11is amended to read:379.12    Subd. 4. Data collection for rate determination. (a) Rates for applicable home 379.13and community-based waivered services, including rate exceptions under subdivision 12, 379.14are set by the rates management system.379.15(b) Data for services under section 
         256B.4913, subdivision 4a, shall be collected in a 379.16manner prescribed by the commissioner.379.17(c) Data and information in the rates management system may be used to calculate 379.18an individual's rate.379.19(d) Service providers, with information from the community support plan and 379.20oversight by lead agencies, shall provide values and information needed to calculate an 379.21individual's rate into the rates management system. TheseThe determination of service 379.22levels must be part of a discussion with members of the support team as defined in section 379.23245D.02, subdivision 34.This discussion must occur prior to the final establishment of 379.24each individual's rate. The values and information include:379.25(1) shared staffing hours;379.26(2) individual staffing hours;379.27(3) direct RN registered nurse hours;379.28(4) direct LPN licensed practical nurse hours;379.29(5) staffing ratios;379.30(6) information to document variable levels of service qualification for variable 379.31levels of reimbursement in each framework;379.32(7) shared or individualized arrangements for unit-based services, including the 379.33staffing ratio;379.34(8) number of trips and miles for transportation services; and379.35(9) service hours provided through monitoring technology.380.1(e) Updates to individual data shall must include:380.2(1) data for each individual that is updated annually when renewing service plans; and380.3(2) requests by individuals or lead agencies to update a rate whenever there is a 380.4change in an individual's service needs, with accompanying documentation.380.5(f) Lead agencies shall review and approve all services reflecting each individual's 380.6needs, and the values to calculate the final payment rate for services with variables under 380.7subdivisions 6, 7, 8, and 9 for each individual. Lead agencies must notify the individual 380.8and the service provider of the final agreed-upon values and rate, and provide information 380.9that is identical to what was entered into the rates management system. If a value used 380.10was mistakenly or erroneously entered and used to calculate a rate, a provider may 380.11petition lead agencies to correct it. Lead agencies must respond to these requests. When 380.12responding to the request, the lead agency must consider:380.13(1) meeting the health and welfare needs of the individual or individuals receiving 380.14services by service site, identified in their coordinated service and support plan under 380.15section 245D.02, subdivision 4b, and any addendum under section 245D.02, subdivision 380.164c;380.17(2) meeting the requirements for staffing under subdivision 2, paragraphs (f), (i), 380.18and (m); and meeting or exceeding the licensing standards for staffing required under 380.19section 245D.09, subdivision 1; and380.20(3) meeting the staffing ratio requirements under subdivision 2, paragraph (n), and 380.21meeting or exceeding the licensing standards for staffing required under section 245D.31.380.22    Sec. 65. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 5, 380.23is amended to read:380.24    Subd. 5. Base wage index and standard component values. (a) The base wage 380.25index is established to determine staffing costs associated with providing services to 380.26individuals receiving home and community-based services. For purposes of developing 380.27and calculating the proposed base wage, Minnesota-specific wages taken from job 380.28descriptions and standard occupational classification (SOC) codes from the Bureau of 380.29Labor Statistics as defined in the most recent edition of the Occupational Handbook shall380.30 must be used. The base wage index shall must be calculated as follows:380.31(1) for residential direct care staff, the sum of:380.32(i) 15 percent of the subtotal of 50 percent of the median wage for personal and 380.33home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide 380.34(SOC code 31-1012); and 20 percent of the median wage for social and human services 380.35aide (SOC code 21-1093); and381.1(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide 381.2(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 381.3(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012); 381.420 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20 381.5percent of the median wage for social and human services aide (SOC code 21-1093);381.6(2) for day services, 20 percent of the median wage for nursing aide (SOC code 381.731-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053); 381.8and 60 percent of the median wage for social and human services aide (SOC code 21-1093);381.9(3) for residential asleep-overnight staff, the wage will be $7.66 per hour, except in 381.10a family foster care setting, the wage is $2.80 per hour;381.11(4) for behavior program analyst staff, 100 percent of the median wage for mental 381.12health counselors (SOC code 21-1014);381.13(5) for behavior program professional staff, 100 percent of the median wage for 381.14clinical counseling and school psychologist (SOC code 19-3031);381.15(6) for behavior program specialist staff, 100 percent of the median wage for 381.16psychiatric technicians (SOC code 29-2053);381.17(7) for supportive living services staff, 20 percent of the median wage for nursing 381.18aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC 381.19code 29-2053); and 60 percent of the median wage for social and human services aide 381.20(SOC code 21-1093);381.21(8) for housing access coordination staff, 50 percent of the median wage for 381.22community and social services specialist (SOC code 21-1099); and 50 percent of the 381.23median wage for social and human services aide (SOC code 21-1093);381.24(9) for in-home family support staff, 20 percent of the median wage for nursing 381.25aide (SOC code 31-1012); 30 percent of the median wage for community social service 381.26specialist (SOC code 21-1099); 40 percent of the median wage for social and human 381.27services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric 381.28technician (SOC code 29-2053);381.29(10) for independent living skills staff, 40 percent of the median wage for community 381.30social service specialist (SOC code 21-1099); 50 percent of the median wage for social 381.31and human services aide (SOC code 21-1093); and ten percent of the median wage for 381.32psychiatric technician (SOC code 29-2053);381.33(11) for supported employment staff, 20 percent of the median wage for nursing aide 381.34(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC 381.35code 29-2053); and 60 percent of the median wage for social and human services aide 381.36(SOC code 21-1093);382.1(12) for adult companion staff, 50 percent of the median wage for personal and home 382.2care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides, 382.3orderlies, and attendants (SOC code 31-1012);382.4(13) for night supervision staff, 20 percent of the median wage for home health aide 382.5(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 382.6(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012); 382.720 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20 382.8percent of the median wage for social and human services aide (SOC code 21-1093);382.9(14) for respite staff, 50 percent of the median wage for personal and home care aide 382.10(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and 382.11attendants (SOC code 31-1012);382.12(15) for personal support staff, 50 percent of the median wage for personal and home 382.13care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides, 382.14orderlies, and attendants (SOC code 31-1012);382.15(16) for supervisory staff, the basic wage is $17.43 per hour with exception of 382.16the supervisor of behavior analyst and behavior specialists, which shall must be $30.75 382.17per hour;382.18(17) for RN registered nurse, the basic wage is $30.82 per hour; and382.19(18) for LPN licensed practical nurse, the basic wage is $18.64 per hour.382.20(b) Component values for residential support services are:382.21(1) supervisory span of control ratio: 11 percent;382.22(2) employee vacation, sick, and training allowance ratio: 8.71 percent;382.23(3) employee-related cost ratio: 23.6 percent;382.24(4) general administrative support ratio: 13.25 percent;382.25(5) program-related expense ratio: 1.3 percent; and382.26(6) absence and utilization factor ratio: 3.9 percent.382.27(c) Component values for family foster care are:382.28(1) supervisory span of control ratio: 11 percent;382.29(2) employee vacation, sick, and training allowance ratio: 8.71 percent;382.30(3) employee-related cost ratio: 23.6 percent;382.31(4) general administrative support ratio: 3.3 percent;382.32(5) program-related expense ratio: 1.3 percent; and382.33(6) absence factor: 1.7 percent.382.34(d) Component values for day services for all services are:382.35(1) supervisory span of control ratio: 11 percent;382.36(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.1(3) employee-related cost ratio: 23.6 percent;383.2(4) program plan support ratio: 5.6 percent;383.3(5) client programming and support ratio: ten percent;383.4(6) general administrative support ratio: 13.25 percent;383.5(7) program-related expense ratio: 1.8 percent; and383.6(8) absence and utilization factor ratio: 3.9 percent.383.7(e) Component values for unit-based services with programming are:383.8(1) supervisory span of control ratio: 11 percent;383.9(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.10(3) employee-related cost ratio: 23.6 percent;383.11(4) program plan supports ratio: 3.1 percent;383.12(5) client programming and supports ratio: 8.6 percent;383.13(6) general administrative support ratio: 13.25 percent;383.14(7) program-related expense ratio: 6.1 percent; and383.15(8) absence and utilization factor ratio: 3.9 percent.383.16(f) Component values for unit-based services without programming except respite 383.17are:383.18(1) supervisory span of control ratio: 11 percent;383.19(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.20(3) employee-related cost ratio: 23.6 percent;383.21(4) program plan support ratio: 3.1 percent;383.22(5) client programming and support ratio: 8.6 percent;383.23(6) general administrative support ratio: 13.25 percent;383.24(7) program-related expense ratio: 6.1 percent; and383.25(8) absence and utilization factor ratio: 3.9 percent.383.26(g) Component values for unit-based services without programming for respite are:383.27(1) supervisory span of control ratio: 11 percent;383.28(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.29(3) employee-related cost ratio: 23.6 percent;383.30(4) general administrative support ratio: 13.25 percent;383.31(5) program-related expense ratio: 6.1 percent; and383.32(6) absence and utilization factor ratio: 3.9 percent.383.33(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph 383.34(b) (a) based on the wage data by standard occupational code (SOC) from the Bureau of 383.35Labor Statistics available on December 31, 2016. The commissioner shall publish these 383.36updated values and load them into the rate management system. This adjustment occurs 384.1every five years. For adjustments in 2021 and beyond, the commissioner shall use the data 384.2available on December 31 of the calendar year five years prior.384.3(i) On July 1, 2017, the commissioner shall update the framework components in 384.4paragraph (c) paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision 384.57, clauses (16) and (17), for changes in the Consumer Price Index. The commissioner 384.6will adjust these values higher or lower by the percentage change in the Consumer Price 384.7Index-All Items, United States city average (CPI-U) from January 1, 2014, to January 1, 384.82017. The commissioner shall publish these updated values and load them into the rate 384.9management system. This adjustment occurs every five years. For adjustments in 2021 384.10and beyond, the commissioner shall use the data available on January 1 of the calendar 384.11year four years prior and January 1 of the current calendar year.384.12    Sec. 66. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 6, 384.13is amended to read:384.14    Subd. 6. Payments for residential support services. (a) Payments for residential 384.15support services, as defined in sections 
         256B.092, subdivision 11, and 
         256B.49, 384.16subdivision 22, must be calculated as follows:384.17(1) determine the number of shared staffing and individual direct staff hours to meet 384.18a recipient's needs provided on-site or through monitoring technology;384.19(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics 384.20Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 384.215. This is defined as the direct-care rate;384.22(3) for a recipient requiring customization for deaf and hard-of-hearing language 384.23accessibility under subdivision 12, add the customization rate provided in subdivision 12 384.24to the result of clause (2). This is defined as the customized direct-care rate;384.25(4) multiply the number of shared and individual direct staff hours provided on-site 384.26or through monitoring technology and direct nursing hours by the appropriate staff wages 384.27in subdivision 5, paragraph (a), or the customized direct-care rate;384.28(5) multiply the number of shared and individual direct staff hours provided 384.29on-site or through monitoring technology and direct nursing hours by the product of 384.30the supervision span of control ratio in subdivision 5, paragraph (b), clause (1), and the 384.31appropriate supervision wage in subdivision 5, paragraph (a), clause (16);384.32(6) combine the results of clauses (4) and (5), excluding any shared and individual 384.33direct staff hours provided through monitoring technology, and multiply the result by one 384.34plus the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph 384.35(b), clause (2). This is defined as the direct staffing cost;385.1(7) for employee-related expenses, multiply the direct staffing cost, excluding any 385.2shared and individual direct staff hours provided through monitoring technology, by one 385.3plus the employee-related cost ratio in subdivision 5, paragraph (b), clause (3);385.4(8) for client programming and supports, the commissioner shall add $2,179; and385.5(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000 385.6if customized for adapted transport, per year based on the resident with the highest 385.7assessed need.385.8(b) The total rate shall must be calculated using the following steps:385.9(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any 385.10shared and individual direct staff hours provided through monitoring technology that 385.11was excluded in clause (7);385.12(2) sum the standard general and administrative rate, the program-related expense 385.13ratio, and the absence and utilization ratio;385.14(3) divide the result of clause (1) by one minus the result of clause (2). This is 385.15the total payment amount; and385.16(4) adjust the result of clause (3) by a factor to be determined by the commissioner 385.17to adjust for regional differences in the cost of providing services.385.18(c) The payment methodology for customized living, 24-hour customized living, 385.19and residential care services shall must be the customized living tool. Revisions to the 385.20customized living tool shall must be made to reflect the services and activities unique to 385.21disability-related recipient needs.385.22(d) The commissioner shall establish a Monitoring Technology Review Panel to 385.23annually review and approve the plans, safeguards, and rates that include residential 385.24direct care provided remotely through monitoring technology. Lead agencies shall submit 385.25individual service plans that include supervision using monitoring technology to the 385.26Monitoring Technology Review Panel for approval. Individual service plans that include 385.27supervision using monitoring technology as of December 31, 2013, shall be submitted to 385.28the Monitoring Technology Review Panel, but the plans are not subject to approval.385.29(e) For individuals enrolled prior to January 1, 2014, the days of service authorized 385.30must meet or exceed the days of service used to convert service agreements in effect on 385.31December 1, 2013, and must not result in a reduction in spending or service utilization due 385.32to conversion during the implementation period under section 256B.4913, subdivision 4a. 385.33If during the implementation period, an individual's historical rate, including adjustments 385.34required under section 256B.4913, subdivision 4a, paragraph (c), is equal to or greater 385.35than the rate determined in this subdivision, the number of days authorized for the 385.36individual is 365.386.1(f) The number of days authorized for all individuals enrolling after January 1, 2014, 386.2in residential services must include every day that services start and end.386.3    Sec. 67. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 7, 386.4is amended to read:386.5    Subd. 7. Payments for day programs. Payments for services with day programs 386.6including adult day care, day treatment and habilitation, prevocational services, and 386.7structured day services must be calculated as follows:386.8(1) determine the number of units of service and staffing ratio to meet a recipient's 386.9needs:386.10(i) the staffing ratios for the units of service provided to a recipient in a typical week 386.11must be averaged to determine an individual's staffing ratio; and386.12(ii) the commissioner, in consultation with service providers, shall develop a uniform 386.13staffing ratio worksheet to be used to determine staffing ratios under this subdivision;386.14(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 386.15Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 5;386.16(3) for a recipient requiring customization for deaf and hard-of-hearing language 386.17accessibility under subdivision 12, add the customization rate provided in subdivision 12 386.18to the result of clause (2). This is defined as the customized direct-care rate;386.19(4) multiply the number of day program direct staff hours and direct nursing hours 386.20by the appropriate staff wage in subdivision 5, paragraph (a), or the customized direct-care 386.21rate;386.22(5) multiply the number of day direct staff hours by the product of the supervision 386.23span of control ratio in subdivision 5, paragraph (d), clause (1), and the appropriate 386.24supervision wage in subdivision 5, paragraph (a), clause (16);386.25(6) combine the results of clauses (4) and (5), and multiply the result by one plus 386.26the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (d), 386.27clause (2). This is defined as the direct staffing rate;386.28(7) for program plan support, multiply the result of clause (6) by one plus the 386.29program plan support ratio in subdivision 5, paragraph (d), clause (4);386.30(8) for employee-related expenses, multiply the result of clause (7) by one plus the 386.31employee-related cost ratio in subdivision 5, paragraph (d), clause (3);386.32(9) for client programming and supports, multiply the result of clause (8) by one plus 386.33the client programming and support ratio in subdivision 5, paragraph (d), clause (5);386.34(10) for program facility costs, add $19.30 per week with consideration of staffing 386.35ratios to meet individual needs;387.1(11) for adult day bath services, add $7.01 per 15 minute unit;387.2(12) this is the subtotal rate;387.3(13) sum the standard general and administrative rate, the program-related expense 387.4ratio, and the absence and utilization factor ratio;387.5(14) divide the result of clause (12) by one minus the result of clause (13). This is 387.6the total payment amount;387.7(15) adjust the result of clause (14) by a factor to be determined by the commissioner 387.8to adjust for regional differences in the cost of providing services;387.9(16) for transportation provided as part of day training and habilitation for an 387.10individual who does not require a lift, add:387.11(i) $10.50 for a trip between zero and ten miles for a nonshared ride in a vehicle 387.12without a lift, $8.83 for a shared ride in a vehicle without a lift, and $9.25 for a shared 387.13ride in a vehicle with a lift;387.14(ii) $15.75 for a trip between 11 and 20 miles for a nonshared ride in a vehicle 387.15without a lift, $10.58 for a shared ride in a vehicle without a lift, and $11.88 for a shared 387.16ride in a vehicle with a lift;387.17(iii) $25.75 for a trip between 21 and 50 miles for a nonshared ride in a vehicle 387.18without a lift, $13.92 for a shared ride in a vehicle without a lift, and $16.88 for a shared 387.19ride in a vehicle with a lift; or387.20(iv) $33.50 for a trip of 51 miles or more for a nonshared ride in a vehicle without a 387.21lift, $16.50 for a shared ride in a vehicle without a lift, and $20.75 for a shared ride in a 387.22vehicle with a lift;387.23(17) for transportation provided as part of day training and habilitation for an 387.24individual who does require a lift, add:387.25(i) $19.05 for a trip between zero and ten miles for a nonshared ride in a vehicle with 387.26a lift, and $15.05 for a shared ride in a vehicle with a lift;387.27(ii) $32.16 for a trip between 11 and 20 miles for a nonshared ride in a vehicle with a 387.28lift, and $28.16 for a shared ride in a vehicle with a lift;387.29(iii) $58.76 for a trip between 21 and 50 miles for a nonshared ride in a vehicle with 387.30a lift, and $58.76 for a shared ride in a vehicle with a lift; or387.31(iv) $80.93 for a trip of 51 miles or more for a nonshared ride in a vehicle with a 387.32lift, and $80.93 for a shared ride in a vehicle with a lift.387.33    Sec. 68. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 9, 387.34is amended to read:388.1    Subd. 9. Payments for unit-based services without programming. Payments 388.2for unit-based without program services, including night supervision, personal support, 388.3respite, and companion care provided to an individual outside of any day or residential 388.4service plan must be calculated as follows unless the services are authorized separately 388.5under subdivision 6 or 7:388.6(1) for all services except respite, determine the number of units of service to meet 388.7a recipient's needs;388.8(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 388.9Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;388.10(3) for a recipient requiring customization for deaf and hard-of-hearing language 388.11accessibility under subdivision 12, add the customization rate provided in subdivision 12 388.12to the result of clause (2). This is defined as the customized direct care rate;388.13(4) multiply the number of direct staff hours by the appropriate staff wage in 388.14subdivision 5 or the customized direct care rate;388.15(5) multiply the number of direct staff hours by the product of the supervision span 388.16of control ratio in subdivision 5, paragraph (f), clause (1), and the appropriate supervision 388.17wage in subdivision 5, paragraph (a), clause (16);388.18(6) combine the results of clauses (4) and (5), and multiply the result by one plus 388.19the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (f), 388.20clause (2). This is defined as the direct staffing rate;388.21(7) for program plan support, multiply the result of clause (6) by one plus the 388.22program plan support ratio in subdivision 5, paragraph (f), clause (4);388.23(8) for employee-related expenses, multiply the result of clause (7) by one plus the 388.24employee-related cost ratio in subdivision 5, paragraph (f), clause (3);388.25(9) for client programming and supports, multiply the result of clause (8) by one plus 388.26the client programming and support ratio in subdivision 5, paragraph (f), clause (5);388.27(10) this is the subtotal rate;388.28(11) sum the standard general and administrative rate, the program-related expense 388.29ratio, and the absence and utilization factor ratio;388.30(12) divide the result of clause (10) by one minus the result of clause (11). This is 388.31the total payment amount;388.32(13) for respite services, determine the number of daily day  units of service to meet 388.33an individual's needs;388.34(14) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 388.35Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;389.1(15) for a recipient requiring deaf and hard-of-hearing customization under 389.2subdivision 12, add the customization rate provided in subdivision 12 to the result of 389.3clause (14). This is defined as the customized direct care rate;389.4(16) multiply the number of direct staff hours by the appropriate staff wage in 389.5subdivision 5, paragraph (a);389.6(17) multiply the number of direct staff hours by the product of the supervisory span 389.7of control ratio in subdivision 5, paragraph (g), clause (1), and the appropriate supervision 389.8wage in subdivision 5, paragraph (a), clause (16);389.9(18) combine the results of clauses (16) and (17), and multiply the result by one plus 389.10the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (g), 389.11clause (2). This is defined as the direct staffing rate;389.12(19) for employee-related expenses, multiply the result of clause (18) by one plus 389.13the employee-related cost ratio in subdivision 5, paragraph (g), clause (3);389.14(20) this is the subtotal rate;389.15(21) sum the standard general and administrative rate, the program-related expense 389.16ratio, and the absence and utilization factor ratio;389.17(22) divide the result of clause (20) by one minus the result of clause (21). This is 389.18the total payment amount; and389.19(23) adjust the result of clauses (12) and (22) by a factor to be determined by the 389.20commissioner to adjust for regional differences in the cost of providing services.389.21    Sec. 69. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 10, 389.22is amended to read:389.23    Subd. 10. Updating payment values and additional information. (a) From 389.24January 1, 2014, through December 31, 2017, the commissioner shall develop and 389.25implement uniform procedures to refine terms and adjust values used to calculate payment 389.26rates in this section.389.27(b) No later than July 1, 2014, the commissioner shall, within available resources, 389.28begin to conduct research and gather data and information from existing state systems or 389.29other outside sources on the following items:389.30(1) differences in the underlying cost to provide services and care across the state; and389.31(2) mileage and utilization, vehicle type, lift requirements, incidents of individual 389.32and shared rides, and units of transportation for all day and unit-based services, which 389.33must be collected from providers using the rate management worksheet and entered into 389.34the rates management system; and390.1(3) the distinct underlying costs for services provided by a license holder certified 390.2under section 245D.33.390.3(c) Using a statistically valid set of rates management system data, the commissioner, 390.4in consultation with stakeholders, shall analyze for each service the average difference 390.5in the rate on December 31, 2013, and the framework rate at the individual, provider, 390.6lead agency, and state levels. The commissioner shall issue semiannual reports to the 390.7stakeholders on the difference in rates by service and by county during the banding period 390.8under section 256B.4913, subdivision 4a. The commissioner shall issue the first report 390.9by October 1, 2014.390.10(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders, 390.11shall begin the review and evaluate evaluation of the following values already in 390.12subdivisions 6 to 9, or issues that impact all services, including, but not limited to:390.13(1) values for transportation rates for day services;390.14(2) values for transportation rates in residential services;390.15(3) values for services where monitoring technology replaces staff time;390.16(4) values for indirect services;390.17(5) values for nursing;390.18(6) component values for independent living skills;390.19(7) component values for family foster care that reflect licensing requirements;390.20(8) adjustments to other components to replace the budget neutrality factor;390.21(9) remote monitoring technology for nonresidential services;390.22(10) values for basic and intensive services in residential services;390.23(11) values for the facility use rate in day services;390.24(12) values for workers' compensation as part of employee-related expenses;390.25(13) values for unemployment insurance as part of employee-related expenses;390.26(14) a component value to reflect costs for individuals with rates previously adjusted 390.27for the inclusion of group residential housing rate 3 costs, only for any individual enrolled 390.28as of December 31, 2013; and390.29(15) any changes in state or federal law with an impact on the underlying cost of 390.30providing home and community-based services.390.31(e) The commissioner shall report to the chairs and the ranking minority members of 390.32the legislative committees and divisions with jurisdiction over health and human services 390.33policy and finance with the information and data gathered under paragraphs (b) to (d) 390.34on the following dates:390.35(1) January 15, 2015, with preliminary results and data;391.1(2) January 15, 2016, with a status implementation update, and additional data 391.2and summary information;391.3(3) January 15, 2017, with the full report; and391.4(4) January 15, 2019, with another full report, and a full report once every four 391.5years thereafter.391.6(f) Based on the commissioner's evaluation of the information and data collected 391.7in paragraphs (b) to (d), the commissioner may shall make recommendations to 391.8the legislature to address any potential issues by January 15, 2015, to address any 391.9issues identified during the first year of implementation. After January 15, 2015, the 391.10commissioner may make recommendations to the legislature to address potential issues.391.11(g) The commissioner shall implement a regional adjustment factor to all rate 391.12calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to 391.13implementation, the commissioner shall consult with stakeholders on the methodology to 391.14calculate the adjustment.391.15(h) The commissioner shall provide a public notice via LISTSERV in October of 391.16each year beginning October 1, 2014, containing information detailing legislatively 391.17approved changes in:391.18(1) calculation values including derived wage rates and related employee and 391.19administrative factors;391.20(2) service utilization;391.21(3) county and tribal allocation changes; and391.22(4) information on adjustments made to calculation values and the timing of those 391.23adjustments.391.24The information in this notice shall must be effective January 1 of the following year.391.25    Sec. 70. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 15, 391.26is amended to read:391.27    Subd. 15. County or tribal allocations. (a) Upon implementation of the disability 391.28waiver rates management system on January 1, 2014, the commissioner shall establish 391.29a method of tracking and reporting the fiscal impact of the disability waiver rates 391.30management system on individual lead agencies.391.31(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to 391.32lead agencies' home and community-based waivered service budget allocations to adjust 391.33for rate differences and the resulting impact on county allocations upon implementation of 391.34the disability waiver rates system.392.1(c) During the first two years of implementation under section 256B.4913, lead 392.2agencies exceeding their allocations under sections 256B.092 and 256B.49 shall only be 392.3held liable for spending in excess of their allocations after a reallocation of resources by 392.4the commissioner under paragraph (b). The commissioner shall reallocate resources under 392.5sections 256B.092, subdivision 12, and 256B.49, subdivision 11a. The commissioner 392.6shall notify lead agencies of this process by July 1, 2014.392.7    Sec. 71. Minnesota Statutes 2013 Supplement, section 256B.492, is amended to read:392.8256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE 392.9WITH DISABILITIES.392.10(a) Individuals receiving services under a home and community-based waiver under 392.11section 
         256B.092 or 
         256B.49 may receive services in the following settings:392.12(1) an individual's own home or family home;392.13(2) a licensed adult foster care or child foster care setting of up to five people; and392.14(3) community living settings as defined in section 
         256B.49, subdivision 23, where 392.15individuals with disabilities may reside in all of the units in a building of four or fewer units, 392.16and  who receive services under a home and community-based waiver occupy no more 392.17than the greater of four or 25 percent of the units in a multifamily building of more than 392.18four units, unless required by the Housing Opportunities for Persons with AIDS Program.392.19(b) The settings in paragraph (a) must not:392.20(1) be located in a building that is a publicly or privately operated facility that 392.21provides institutional treatment or custodial care;392.22(2) be located in a building on the grounds of or adjacent to a public or private 392.23institution;392.24(3) be a housing complex designed expressly around an individual's diagnosis or 392.25disability, unless required by the Housing Opportunities for Persons with AIDS Program;392.26(4) be segregated based on a disability, either physically or because of setting 392.27characteristics, from the larger community; and392.28(5) have the qualities of an institution which include, but are not limited to: 392.29regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions 392.30agreed to and documented in the person's individual service plan shall not result in a 392.31residence having the qualities of an institution as long as the restrictions for the person are 392.32not imposed upon others in the same residence and are the least restrictive alternative, 392.33imposed for the shortest possible time to meet the person's needs.393.1(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which 393.2individuals receive services under a home and community-based waiver as of July 1, 393.32012, and the setting does not meet the criteria of this section.393.4(d) Notwithstanding paragraph (c), a program in Hennepin County established as 393.5part of a Hennepin County demonstration project is qualified for the exception allowed 393.6under paragraph (c).393.7(e)  Notwithstanding paragraphs (a) and (b), a program in Hennepin County, located 393.8in the city of Golden Valley, within the city of Golden Valley's Highway 55 West 393.9redevelopment area, that is not a provider-owned or controlled home and community-based 393.10setting, and is scheduled to open by July 1, 2016, is exempt from the restrictions in 393.11paragraphs (a) and (b). If the program fails to comply with the Centers for Medicare and 393.12Medicaid Services rules for home and community-based settings, the exemption is void.393.13(f) The commissioner shall submit an amendment to the waiver plan no later than 393.14December 31, 2012.393.15    Sec. 72. Minnesota Statutes 2012, section 256B.5012, is amended by adding a 393.16subdivision to read:393.17    Subd. 16.ICF/DD rate increases effective July 1, 2014. (a) For the rate period 393.18beginning July 1, 2014, the commissioner shall increase operating payments for each 393.19facility reimbursed under this section equal to five percent of the operating payment 393.20rates in effect on June 30, 2014.393.21(b) For each facility, the commissioner shall apply the rate increase based on 393.22occupied beds, using the percentage specified in this subdivision multiplied by the total 393.23payment rate, including the variable rate but excluding the property-related payment rate 393.24in effect on June 30, 2014. The total rate increase shall include the adjustment provided in 393.25section 256B.501, subdivision 12.393.26(c) Facilities that receive a rate increase under this subdivision shall use 80 percent 393.27of the additional revenue to increase compensation-related costs for employees directly 393.28employed by the facility on or after July 1, 2014, except:393.29(1) persons employed in the central office of a corporation or entity that has an 393.30ownership interest in the facility or exercises control over the facility; and393.31(2) persons paid by the facility under a management contract.393.32(d) Compensation-related costs include:393.33(1) wages and salaries;393.34(2) the employer's share of FICA taxes, Medicare taxes, state and federal 393.35unemployment taxes, workers' compensation, and mileage reimbursement;394.1(3) the employer's share of health and dental insurance, life insurance, disability 394.2insurance, long-term care insurance, uniform allowance, pensions, and contributions to 394.3employee retirement accounts; and394.4(4) other benefits provided and workforce needs, including the recruiting and 394.5training of employees as specified in the distribution plan required under paragraph (f).394.6(e) For public employees under a collective bargaining agreement, the increase for 394.7wages and benefits is available and pay rates must be increased only to the extent that the 394.8increases comply with laws governing public employees' collective bargaining. Money 394.9received by a facility under paragraph (c) for pay increases for public employees must be 394.10used only for pay increases implemented between July 1, 2014, and August 1, 2014.394.11(f) For a facility that has employees that are represented by an exclusive bargaining 394.12representative, the provider shall obtain a letter of acceptance of the distribution plan 394.13required under paragraph (g), in regard to the members of the bargaining unit, signed by 394.14the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall 394.15be deemed to have met all the requirements of this subdivision in regard to the members 394.16of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for 394.17the commissioner.394.18(g) A facility that receives a rate adjustment under paragraph (a) that is subject to 394.19paragraph (c) shall prepare, and upon request submit to the commissioner, a distribution 394.20plan that specifies the amount of money the facility expects to receive that is subject to the 394.21requirements of paragraph (c), including how that money will be distributed to increase 394.22compensation for employees.394.23(h) Using forms prescribed by the commissioner, facilities must submit to the 394.24commissioner verification that they have complied with paragraph (c).394.25(i) By January 1, 2015, the facility shall post the distribution plan required under 394.26paragraph (g) for a period of at least six weeks in an area of the facility's operation to 394.27which all eligible employees have access and shall provide instructions for employees 394.28who do not believe they have received the wage and other compensation-related increases 394.29specified in the distribution plan. The instructions must include a mailing address, e-mail 394.30address, and telephone number that an employee may use to contact the commissioner or 394.31the commissioner's representative.394.32    Sec. 73. Laws 2012, chapter 247, article 4, section 47, is amended to read:394.33    Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION 394.34TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET 394.35METHODOLOGY.395.1By July 1, 2012 2014, if necessary, the commissioner shall request an amendment to 395.2the home and community-based services waivers authorized under Minnesota Statutes, 395.3sections 
         256B.092 and 
         256B.49, to establish an exception to the consumer-directed 395.4community supports budget methodology to provide up to 20 percent more funds for those 395.5participants who have their 21st birthday and graduate from high school during between 395.6 2013 to 2015 and are authorized for more services under consumer-directed community 395.7supports prior to graduation than what the amount  they are eligible to receive under the 395.8current consumer-directed community supports budget methodology. The exception is 395.9limited to those who can demonstrate that they will have to leave consumer-directed 395.10community supports and use other waiver services because their need for day or 395.11employment supports cannot be met within the consumer-directed community supports 395.12budget limits. The commissioner shall consult with the stakeholder group authorized 395.13under Minnesota Statutes, section 
         256B.0657, subdivision 11, to implement this provision. 395.14The exception process shall be effective upon federal approval for persons eligible during 395.152013 and 2014 through June 30, 2017.395.16    Sec. 74. HOME AND COMMUNITY-BASED SETTINGS TRANSITION PLAN.395.17The commissioner of human services shall develop a transition plan to comply 395.18with the Centers for Medicare and Medicaid Services final rule defining home and 395.19community-based settings published on January 16, 2014, Code of Federal Regulations, 395.20title 42, section 441.301(c)(4)-(5).  In developing the plan, the commissioner shall consult 395.21with individuals with disabilities, seniors, and other stakeholders, including, but not 395.22limited to advocates, providers, lead agencies, other state agencies, and the Olmstead 395.23subcabinet.  The commissioner shall submit the plan to the Centers for Medicare and 395.24Medicaid Services by December 31, 2014. 395.25By January 15, 2015, the commissioner shall provide a report with the plan 395.26submitted to the Centers for Medicare and Medicaid Services, as well as any changes as 395.27a result of negotiations that have occurred with the Centers for Medicare and Medicaid 395.28Services, to the chairs and ranking minority members of the house of representatives and 395.29senate policy and finance committees with jurisdiction over health and human services.  395.30This report must contain any recommended legislation and funding requests necessary 395.31to implement the transition plan.395.32    Sec. 75. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.395.33The commissioner of human services, in consultation with interested stakeholders, 395.34shall review medical assistance spenddown requirements and processes, including those 396.1used in other states, for individuals with disabilities and seniors age 65 years of age or 396.2older. Based on this review, the commissioner shall recommend alternative medical 396.3assistance spenddown payment requirements and processes that:396.4(1) are practical for current and potential medical assistance recipients, providers, 396.5and the Department of Human Services;396.6(2) improves the medical assistance payment process for providers; and396.7(3) allows current and potential medical assistance recipients to obtain consistent 396.8and affordable medical coverage.396.9The commissioner shall report these recommendations, along with the projected cost, 396.10to the chairs and ranking minority members of the legislative committees and divisions 396.11with jurisdiction over health and human services policy and finance by February 15, 2015.396.12    Sec. 76.  PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 396.131, 2014.396.14(a) The commissioner of human services shall increase reimbursement rates, grants, 396.15allocations, individual limits, and rate limits, as applicable, by five percent for the rate 396.16period beginning July 1, 2014, for services rendered on or after July 1, 2014. County or 396.17tribal contracts for services, grants, and programs under paragraph (b) must be amended to 396.18pass through these rate increases by September 1, 2014.396.19(b) The rate changes described in this section must be provided to:396.20(1) home and community-based waivered services for persons with developmental 396.21disabilities, including consumer-directed community supports, under Minnesota Statutes, 396.22section 256B.501;396.23(2) waivered services under community alternatives for disabled individuals, 396.24including consumer-directed community supports, under Minnesota Statutes, section 396.25256B.49;396.26(3) community alternative care waivered services, including consumer-directed 396.27community supports, under Minnesota Statutes, section 256B.49;396.28(4) brain injury waivered services, including consumer-directed community 396.29supports, under Minnesota Statutes, section 256B.49;396.30(5) home and community-based waivered services for the elderly under Minnesota 396.31Statutes, section 256B.0915;396.32(6) nursing services and home health services under Minnesota Statutes, section 396.33256B.0625, subdivision 6a;396.34(7) personal care services and qualified professional supervision of personal care 396.35services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;397.1(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 397.2subdivision 7;397.3(9) day training and habilitation services for adults with developmental disabilities 397.4under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to 397.5counties of the rate adjustments on day training and habilitation services, provided as a 397.6social service;397.7(10) alternative care services under Minnesota Statutes, section 256B.0913;397.8(11) living skills training programs for persons with intractable epilepsy who need 397.9assistance in the transition to independent living under Laws 1988, chapter 689;397.10(12) semi-independent living services (SILS) under Minnesota Statutes, section 397.11252.275, including SILS funding under county social services grants formerly funded 397.12under Minnesota Statutes, chapter 256M;397.13(13) consumer support grants under Minnesota Statutes, section 256.476;397.14(14) family support grants under Minnesota Statutes, section 252.32;397.15(15) housing access grants under Minnesota Statutes, section 256B.0658;397.16(16) self-advocacy grants under Laws 2009, chapter 101; and397.17(17) technology grants under Laws 2009, chapter 79.397.18(c) For individual service rates determined under Minnesota Statutes, section 397.19256B.4914, the commissioner shall adjust the calculations in subdivisions 6, 7, 8, and 397.209, after any adjustments under Minnesota Statutes, section 256B.4914, subdivision 16, 397.21to reflect a five percent increase.397.22(d) The commissioner shall increase the banding values for all service recipients as 397.23defined in Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b), by five 397.24percent, effective July 1, 2014.397.25(e) A managed care plan or county-based purchasing plan receiving state payments 397.26for the services grants and programs in paragraph (b) must include these increases in their 397.27payments to providers. To implement the rate increase in paragraph (a), capitation rates 397.28paid by the commissioner to managed care plans and county-based purchasing plans under 397.29Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the services 397.30and programs specified in paragraph (b) for the period beginning July 1, 2014.397.31(f) Counties shall increase the budget for each recipient of consumer-directed 397.32community supports by the amount in paragraph (a) on July 1, 2014.397.33(g) Providers that receive a rate increase under paragraph (a) shall use 80 percent 397.34of the additional revenue to increase compensation-related costs for employees directly 397.35employed by the program on or after July 1, 2014, except:398.1(1) persons employed in the central office of a corporation or entity that has an 398.2ownership interest in the provider or exercises control over the provider; and398.3(2) persons paid by the provider under a management contract.398.4(h) Compensation-related costs include:398.5(1) wages and salaries;398.6(2) the employer's share of FICA taxes, Medicare taxes, state and federal 398.7unemployment taxes, workers' compensation, and mileage reimbursement;398.8(3) the employer's share of health and dental insurance, life insurance, disability 398.9insurance, long-term care insurance, uniform allowance, pensions, and contributions to 398.10employee retirement accounts; and398.11(4) other benefits provided and workforce needs, including the recruiting and 398.12training of employees as specified in the distribution plan required under paragraph (l).398.13(i) For public employees under a collective bargaining agreement, the increase for 398.14wages and benefits is available and pay rates must be increased only to the extent that the 398.15increases comply with laws governing public employees' collective bargaining. Money 398.16received by a provider for pay increases for public employees under paragraph (g) must be 398.17used only for pay increases implemented between July 1, 2014, and August 1, 2014.398.18(j) For a provider that has employees that are represented by an exclusive bargaining 398.19representative, the provider shall obtain a letter of acceptance of the distribution plan 398.20required under paragraph (m), in regard to the members of the bargaining unit, signed by 398.21the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall 398.22be deemed to have met all the requirements of this section in regard to the members of 398.23the bargaining unit. Upon request, the provider shall produce the letter of acceptance for 398.24the commissioner.398.25(k) The commissioner shall amend state grant contracts that include direct 398.26personnel-related grant expenditures to include the allocation for the portion of the 398.27contract related to employee compensation. Grant contracts for compensation-related 398.28services must be amended to pass through these adjustments by September 1, 2014, and 398.29must be retroactive to July 1, 2014.398.30(l) The Board on Aging and its area agencies on aging shall amend their grants that 398.31include direct personnel-related grant expenditures to include the rate adjustment for the 398.32portion of the grant related to employee compensation. Grants for compensation-related 398.33services must be amended to pass through these adjustments by September 1, 2014, and 398.34must be retroactive to July 1, 2014.398.35(m) A provider that receives a rate adjustment under paragraph (a) that is subject to 398.36paragraph (g) shall prepare, and upon request submit to the commissioner, a distribution 399.1plan that specifies the amount of money the provider expects to receive that is subject 399.2to the requirements of paragraph (g), including how that money will be distributed to 399.3increase compensation for employees.399.4(n) Using forms prescribed by the commissioner, providers must submit to the 399.5commissioner verification that they have complied with paragraph (g).399.6(o) By January 1, 2015, the provider shall post the distribution plan required under 399.7paragraph (l) for a period of at least six weeks in an area of the provider's operation to 399.8which all eligible employees have access and shall provide instructions for employees 399.9who do not believe they have received the wage and other compensation-related increases 399.10specified in the distribution plan. The instructions must include a mailing address, e-mail 399.11address, and telephone number that the employee may use to contact the commissioner or 399.12the commissioner's representative.399.13(p) For providers with rates established under Minnesota Statutes, section 399.14256B.4914, and with a banding value established under Minnesota Statutes, section 399.15256B.4913, subdivision 4a, paragraph (b), that is greater than the rate established under 399.16Minnesota Statutes, section 256B.4914, the requirements in paragraph (g) must only apply 399.17to the portion of the rate increase that exceeds the difference between the rate established 399.18under Minnesota Statutes, section 256B.4914, and the banding value established under 399.19Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b).399.20    Sec. 77. NURSING FACILITY RATE ADJUSTMENT.399.21    Subdivision 1.Application for rate adjustment.(a) To receive a rate adjustment, 399.22nursing facilities must submit an application to the commissioner in a form and manner 399.23determined by the commissioner. The application shall include data for a period beginning 399.24with the first pay period after January 1, 2014, and including at least three months of 399.25employee compensated hours by wage rate, and a spending plan that describes how the 399.26funds from the rate adjustment will be allocated for compensation to employees paid 399.27less than $14 per hour. The application must be submitted by December 31, 2014. The 399.28commissioner may request any additional information needed to determine the rate 399.29adjustment within three weeks of receiving a complete application. The nursing facility 399.30must provide any additional information requested by the commissioner by March 31, 399.312015. The commissioner may waive the deadlines in this subdivision under extraordinary 399.32circumstances.399.33(b) For nursing facilities in which employees are represented by an exclusive 399.34bargaining representative, the commissioner shall approve the application submitted under 399.35this subdivision only upon receipt of a letter of acceptance of the spending plan in regard 400.1to members of the bargaining unit, signed by the exclusive bargaining agent and dated 400.2after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall 400.3deem all requirements of this subdivision as having been met in regard to the members of 400.4the bargaining unit.400.5    Subd. 2.Rate adjustment calculation.Based on the application in subdivision 400.61, the commissioner shall calculate the annualized compensation costs by adding the 400.7totals of clauses (1), (2), and (3). The result must be divided by the resident days from 400.8the most recently available cost report to determine a per diem amount, which must be 400.9included in the external fixed cost portion of the total payment rate under Minnesota 400.10Statutes, section 256B.441, subdivision 53: 400.11(1) the sum of the difference between $9.50 and any hourly wage rate of less than 400.12$9.50, multiplied by the number of compensated hours at that wage rate;400.13(2) the sum of items (i) to (viii):400.14(i) for all compensated hours from $8 to $8.49 per hour, the number of compensated 400.15hours is multiplied by $0.13;400.16(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of 400.17compensated hours is multiplied by $0.25;400.18(iii) for all compensated hours from $9 to $9.49 per hour, the number of compensated 400.19hours is multiplied by $0.38;400.20(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of 400.21compensated hours is multiplied by $0.50;400.22(v) for all compensated hours from $10.50 to $10.99 per hour, the number of 400.23compensated hours is multiplied by $0.40;400.24(vi) for all compensated hours from $11 to $11.49 per hour, the number of 400.25compensated hours is multiplied by $0.30;400.26(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of 400.27compensated hours is multiplied by $0.20; and400.28(viii) for all compensated hours from $12 to $13.00 per hour, the number of 400.29compensated hours is multiplied by $0.10; and400.30(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal 400.31unemployment taxes, workers' compensation, pensions, and contributions to employee 400.32retirement accounts attributable to the amounts in clauses (1) and (2).400.33    Subd. 3.Rate adjustment.For the rate year beginning October 1, 2014, nursing 400.34facilities that receive approval of the application in subdivision 1 must receive a rate 400.35adjustment according to subdivision 2. The rate adjustment must be used to pay 401.1compensation costs for nursing facility employees paid less than $14 per hour. The rate 401.2adjustment must continue to be included in the total payment rate in subsequent years.401.3    Sec. 78. DISABILITY WAIVER REIMBURSEMENT RATE ADJUSTMENTS.401.4    Subdivision 1.Historical rate.The commissioner of human services shall adjust 401.5the historical rates calculated in Minnesota Statutes, section 256B.4913, subdivision 4a, 401.6paragraph (b), in effect during the banding period under Minnesota Statutes, section 401.7256B.4913, subdivision 4a, paragraph (a), for the reimbursement rate increases effective 401.8April 1, 2014, and any rate modification enacted during the 2014 legislative session.401.9    Subd. 2.Residential support services.The commissioner of human services 401.10shall adjust the rates calculated in Minnesota Statutes, section 256B.4914, subdivision 6, 401.11paragraphs (b), clause (4), and (c), for the reimbursement rate increases effective April 1, 401.122014, and any rate modification enacted during the 2014 legislative session.401.13    Subd. 3.Day programs.The commissioner of human services shall adjust the rates 401.14calculated in Minnesota Statutes, section 256B.4914, subdivision 7, paragraph (a), clauses 401.15(15) to (17), for the reimbursement rate increases effective April 1, 2014, and any rate 401.16modification enacted during the 2014 legislative session.401.17    Subd. 4.Unit-based services with programming.The commissioner of human 401.18services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, 401.19subdivision 8, paragraph (a), clause (14), for the reimbursement rate increases effective 401.20April 1, 2014, and any rate modification enacted during the 2014 legislative session.401.21    Subd. 5.Unit-based services without programming.The commissioner of 401.22human services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, 401.23subdivision 9, paragraph (a), clause (23), for the reimbursement rate increases effective 401.24April 1, 2014, and any rate modification enacted during the 2014 legislative session.401.25    Sec. 79. WAIVER APPLICATIONS FOR NONEMERGENCY MEDICAL 401.26TRANSPORTATION SERVICE PROVIDERS.401.27    Subdivision 1.Definitions.For purposes of this section, the following definitions 401.28apply:401.29(1) "new provider" is a nonemergency medical transportation service provider that 401.30was not required to comply with special transportation service operating standards before 401.31the effective date of this act; and401.32(2) "commissioner" is the commissioner of human services.401.33    Subd. 2.Application for and terms of variance.A new provider may apply to the 401.34commissioner, on a form supplied by the commissioner for this purpose, for a variance 402.1from special transportation service operating standards. The commissioner may grant or 402.2deny the variance application. Variances expire on the earlier of, February 1, 2016, or the 402.3date that the commissioner of transportation begins certifying new providers under the 402.4terms of this act and successor legislation.402.5    Subd. 3.Information concerning variances.The commissioner shall periodically 402.6transmit to the Department of Transportation the number of variance applications received 402.7and the number granted.402.8    Subd. 4.Report by commissioner of transportation.On or before February 402.91, 2015, the commissioner of transportation shall report to the chairs and ranking 402.10minority members of the senate and house of representatives committees and divisions 402.11with jurisdiction over transportation and human services concerning implementing the 402.12nonemergency medical transportation services provisions. The report must contain 402.13recommendations of the commissioner of transportation concerning statutes, session 402.14laws, and rules that must be amended, repealed, enacted, or adopted to implement the 402.15nonemergency medical transportation services provisions. The recommendations must 402.16include, without limitation, the amount of the fee that would be required to cover the costs 402.17of Department of Transportation supervision of inspection and certification, as well as 402.18any needed statutory rulemaking or other authority to be granted to the commissioner of 402.19transportation.402.20    Sec. 80. REVISOR'S INSTRUCTION.402.21(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to 402.22in column A, the revisor of statutes shall delete the word or phrase in column B and 402.23insert the phrase in column C. The revisor shall also make related grammatical changes 402.24and changes in headnotes.

402.25Column AColumn BColumn C402.26402.27section 158.13defective personspersons with developmental disabilities402.28402.29section 158.14defective personspersons with developmental disabilities402.30402.31section 158.17defective personspersons with developmental disabilities402.32402.33section 158.18persons not defectivepersons without developmental disabilities402.34402.35defective personperson with developmental disabilities402.36402.37defective personspersons with developmental disabilities402.38402.39section 158.19defectiveperson with developmental disabilities403.1403.2section 256.94defectivechildren with developmental disabilities and403.3403.4section 257.175defectivechildren with developmental disabilities and403.5part 2911.1350retardationdevelopmental disability

403.6(b) The revisor of statutes shall change the term "health and safety" to "health and 403.7welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061, 403.8245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.403.9    Sec. 81.  REPEALER.403.10Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18f, is 403.11repealed.403.12ARTICLE 19403.13HEALTH CARE403.14    Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a 403.15subdivision to read:403.16    Subd. 38.Contract to match recipient third-party liability information.The 403.17commissioner may enter into a contract with a national organization to match recipient 403.18third-party liability information and provide coverage and insurance primacy information 403.19to the department at no charge to providers and the clearinghouses.403.20    Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:403.21    Subdivision 1. Authority. (a) The commissioner shall establish procedures for 403.22determining medical assistance and general assistance medical care payment rates under 403.23a prospective payment system for inpatient hospital services in hospitals that qualify as 403.24vendors of medical assistance. The commissioner shall establish, by rule, procedures for 403.25implementing this section and sections 
         256.9686, 
         256.969, and 
         256.9695. Services must 403.26meet the requirements of section 
         256B.04, subdivision 15, or 256D.03, subdivision 7, 403.27paragraph (b), to be eligible for payment.403.28(b) The commissioner may reduce the types of inpatient hospital admissions that 403.29are required to be certified as medically necessary after notice in the State Register and a 403.3030-day comment period.403.31    Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:404.1    Subd. 1a. Administrative reconsideration. Notwithstanding sections section404.2256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish 404.3an administrative reconsideration process for appeals of inpatient hospital services 404.4determined to be medically unnecessary. A physician or hospital may request a 404.5reconsideration of the decision that inpatient hospital services are not medically necessary 404.6by submitting a written request for review to the commissioner within 30 days after 404.7receiving notice of the decision. The reconsideration process shall take place prior to the 404.8procedures of subdivision 1b and shall be conducted by physicians that are independent 404.9of the case under reconsideration. A majority decision by the physicians is necessary to 404.10make a determination that the services were not medically necessary.404.11    Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:404.12    Subd. 2. Base year. "Base year" means a hospital's fiscal year or years that 404.13is recognized by the Medicare program or a hospital's fiscal year specified by the 404.14commissioner if a hospital is not required to file information by the Medicare program 404.15from which cost and statistical data are used to establish medical assistance and general 404.16assistance medical care payment rates.404.17    Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:404.18    Subdivision 1. Hospital cost index. (a) The hospital cost index shall be the change 404.19in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted 404.20by Data Resources, Inc. The commissioner shall use the indices as forecasted in the 404.21third quarter of the calendar year prior to the rate year. The hospital cost index may be 404.22used to adjust the base year operating payment rate through the rate year on an annually 404.23compounded basis.404.24(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human 404.25services shall not provide automatic annual inflation adjustments for hospital payment 404.26rates under medical assistance, nor under general assistance medical care, except that 404.27the inflation adjustments under paragraph (a) for medical assistance, excluding general 404.28assistance medical care, shall apply through calendar year 2001. The index for calendar 404.29year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index 404.30from 1994 to 1996. The commissioner of management and budget shall include as a 404.31budget change request in each biennial detailed expenditure budget submitted to the 404.32legislature under section 
         16A.11 annual adjustments in hospital payment rates under 404.33medical assistance and general assistance medical care, based upon the hospital cost index.405.1    Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:405.2    Subd. 2. Diagnostic categories. The commissioner shall use to the extent possible 405.3existing diagnostic classification systems, including such as the system used by the 405.4Medicare program all patient-refined diagnosis-related groups (APR-DRGs) or other 405.5similar classification programs  to determine the relative values of inpatient services 405.6and case mix indices. The commissioner may combine diagnostic classifications into 405.7diagnostic categories and may establish separate categories and numbers of categories 405.8based on program eligibility or hospital peer group. Relative values shall be recalculated405.9 recalibrated when the base year is changed. Relative value determinations shall include 405.10paid claims for admissions during each hospital's base year. The commissioner may 405.11extend the time period forward to obtain sufficiently valid information to establish relative 405.12values supplement the diagnostic classification systems data with national averages. 405.13Relative value determinations shall not include property cost data, Medicare crossover 405.14data, and data on admissions that are paid a per day transfer rate under subdivision 14. The 405.15computation of the base year cost per admission must include identified outlier cases and 405.16their weighted costs up to the point that they become outlier cases, but must exclude costs 405.17recognized in outlier payments beyond that point. The commissioner may recategorize the 405.18diagnostic classifications and recalculate recalibrate relative values and case mix indices 405.19to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce 405.20variances within the diagnostic categories after notice in the State Register and a 30-day 405.21comment period. The commissioner shall recategorize the diagnostic classifications and 405.22recalculate relative values and case mix indices based on the two-year schedule in effect 405.23prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur 405.24January 1, 2013, and shall occur every two years after. When rates are not rebased under 405.25subdivision 2b, the commissioner may establish relative values and case mix indices based 405.26on charge data and may update the base year to the most recent data available.405.27    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:405.28    Subd. 2b. Operating Hospital payment rates.In determining operating payment 405.29rates for admissions occurring on or after the rate year beginning January 1, 1991, 405.30and every two years after, or more frequently as determined by the commissioner, 405.31the commissioner shall obtain operating data from an updated base year and establish 405.32operating payment rates per admission for each hospital based on the cost-finding methods 405.33and allowable costs of the Medicare program in effect during the base year. Rates under 405.34the general assistance medical care, medical assistance, and MinnesotaCare programs 405.35shall not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 406.124 months of the rebased period beginning January 1, 2009 (a) For discharges occurring 406.2on and after October 1, 2014, hospital inpatient services for hospitals located in Minnesota 406.3shall be paid according to the following:406.4(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 406.5methodology;406.6(2) long-term care hospitals as defined by Medicare shall be paid on a per diem 406.7methodology under subdivision 25;406.8(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 406.9distinct parts as defined by Medicare shall be paid according to the methodology under 406.10subdivision 12; and406.11(4) all other hospitals shall be paid on a diagnostic-related group (DRG) methodology.406.12     (b) For the rebased period beginning January 1, 2011, to September 30, 2014, rates 406.13shall not be rebased, except that a Minnesota long-term hospital shall be rebased effective 406.14January 1, 2011, based on its most recent Medicare cost report ending on or before 406.15September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates 406.16in effect on December 31, 2010. For subsequent rate setting periods after October 1, 406.172014, in which the base years are updated, a Minnesota long-term hospital's base year 406.18shall remain within the same period as other hospitals. Effective January 1, 2013, and 406.19after, rates shall not be rebased.406.20(c) Effective for discharges occurring on and after October 1, 2014, payment rates 406.21for hospital inpatient services provided by hospitals located in Minnesota or the local trade 406.22area, except for the hospitals paid under the methodologies described in paragraph (a), 406.23clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in 406.24a manner similar to Medicare. The base year for the rates effective October 1, 2014, 406.25shall be state fiscal year 2012. The rebasing must be budget neutral, ensuring that 406.26the total aggregate payments under the rebased system are equal to the total aggregate 406.27payments made for the same number and types of services in the base year. Separate 406.28budget neutrality calculations must be determined for payments made to critical access 406.29hospitals and payments made to hospitals paid under the DRG system. Any rate increases 406.30or decreases under subdivision 3a that applied to the hospitals being rebased during the 406.31base period must be incorporated into the budget neutrality calculation. Any rate increases 406.32or decreases that did not apply to the base period shall not be considered in the budget 406.33neutrality calculation. The estimated expenditures in fiscal years 2015, 2016, and 2017, 406.34after the rebasing is complete, must equal the estimated expenditures for inpatient hospital 406.35services in the February 2014 forecast.407.1(d) For discharges occurring October 1, 2014, through and including June 30, 2016, 407.2the rebased rates must include necessary adjustments to the projected rates that result in 407.3no greater than a five percent increase or decrease from the base year payments for any 407.4hospital. In addition to these adjustments, the commissioner may make adjustments to 407.5rates and must consider the impact of changes on at least the following when evaluating 407.6whether additional adjustments should be made:407.7(1) pediatric services;407.8(2) behavioral health services;407.9(3) trauma services as defined by the National Uniform Billing Committee;407.10(4) transplant services;407.11(5) obstetric services, newborn services, and behavioral health services provided 407.12by hospitals outside the seven-county metropolitan area;407.13(6) outlier admissions;407.14(7) low-volume providers; and407.15(8) services provided by small rural hospitals that are not critical access hospitals.407.16(e) Hospital payment rates established under paragraph (c) must incorporate the 407.17following:407.18    (1) for hospitals paid under the DRG methodology, the base year operating payment 407.19rate per admission is standardized by the case mix index and adjusted by the hospital cost 407.20index, relative values, and disproportionate population adjustment. applicable Medicare 407.21wage index and adjusted by the hospital's disproportionate population adjustment;407.22    (2) for critical access hospitals, interim per diem payment rate must be based on 407.23the ratio of cost and charges reported on the base year Medicare cost report or reports 407.24and applied to medical assistance utilization data. Final settlement payments for a state 407.25fiscal year must be determined based on a review of the Medicaid cost report for the 407.26applicable state fiscal year;407.27    (3)  the cost and charge data used to establish operating hospital payment  rates shall407.28 must only reflect inpatient services covered by medical assistance and shall not include 407.29property cost information and costs recognized in outlier payments; and407.30    (4) in determining hospital payment rates for discharges occurring on or after the 407.31rate year beginning January 1, 2011, to December 31, 2012, the hospital payment rate per 407.32discharge must be based on the cost-finding methods and allowable costs of the Medicare 407.33program in effect during the base year or years.407.34    Sec. 8. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 407.35to read:408.1    Subd. 2d.Budget neutrality factor.For the rebased period effective October 1, 408.22014, when rebasing rates under subdivision 2b, paragraph (c), the commissioner shall 408.3apply a budget neutrality factor (BNF), if applicable, to all hospitals' rebased rates to 408.4ensure that total DRG and critical access hospital payments to hospitals do not exceed 408.5total DRG and critical access hospital payments that would have been made to hospitals 408.6for the same number and types of services if the relative rates and weights had not been 408.7recalibrated and cost-based payments for critical access hospitals had not been established. 408.8For the purposes of this subdivision, BNF equals the percentage change from total 408.9aggregate payments calculated under a new payment system to total aggregate payments 408.10calculated under the old system for the same number and types of services.408.11    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 408.12to read:408.13    Subd. 2e.Interim payments.Notwithstanding subdivision 2b, for discharges 408.14occurring on or after October 1, 2014, and no later than June 30, 2015, the commissioner 408.15may implement an interim payment process to pay hospitals, including payments based on 408.16each hospital's average payments per claim for state fiscal years 2011 and 2012. These 408.17interim payments may be used to pay hospitals if the new payment system and rebasing 408.18under subdivision 2b is not complete by October 1, 2014. Claims paid at interim payment 408.19rates shall be reprocessed and paid at the rates established under the new system upon 408.20implementation of the new system.408.21    Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 408.22to read:408.23    Subd. 2f.Report required.(a) The commissioner shall report to the legislature by 408.24March 1, 2015, and by March 1, 2016, on the financial impacts by hospital and policy 408.25ramifications, if any, resulting from payment methodology changes implemented after 408.26September 30, 2014, and before December 15, 2015.408.27(b) The commissioner shall report, at a minimum, the following information:408.28(1) case-mix adjusted calculations of net payment impacts for each hospital resulting 408.29from the difference between the payments each hospital would have received under the 408.30payment methodology for discharges before September 30, 2014, and the payments each 408.31hospital has or is expected to receive for the same number and types of services under the 408.32payment methodology implemented effective October 1, 2014;408.33(2) any adjustments that the commissioner madeand the impacts of those adjustments 408.34for each hospital; and409.1(3) recommendations for further refinement or improvement of the hospital inpatient 409.2payment system or methodologies.409.3    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:409.4    Subd. 3a. Payments. (a) Acute care hospital billings under the medical 409.5assistance program must not be submitted until the recipient is discharged. However, 409.6the commissioner shall establish monthly interim payments for inpatient hospitals that 409.7have individual patient lengths of stay over 30 days regardless of diagnostic category. 409.8Except as provided in section 
         256.9693, medical assistance reimbursement for treatment 409.9of mental illness shall be reimbursed based on diagnostic classifications. Individual 409.10hospital payments established under this section and sections 
         256.9685, 
         256.9686, and 409.11256.9695
         , in addition to third-party and recipient liability, for discharges occurring during 409.12the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 409.13inpatient services paid for the same period of time to the hospital. This payment limitation 409.14shall be calculated separately for medical assistance and general assistance medical 409.15care services. The limitation on general assistance medical care shall be effective for 409.16admissions occurring on or after July 1, 1991. Services that have rates established under 409.17subdivision 11 or 12, must be limited separately from other services. After consulting with 409.18the affected hospitals, the commissioner may consider related hospitals one entity and may 409.19merge the payment rates while maintaining separate provider numbers. The operating and 409.20property base rates per admission or per day shall be derived from the best Medicare and 409.21claims data available when rates are established. The commissioner shall determine the 409.22best Medicare and claims data, taking into consideration variables of recency of the data, 409.23audit disposition, settlement status, and the ability to set rates in a timely manner. The 409.24commissioner shall notify hospitals of payment rates by December 1 of the year preceding 409.25the rate year 30 days prior to implementation. The rate setting data must reflect the 409.26admissions data used to establish relative values. Base year changes from 1981 to the base 409.27year established for the rate year beginning January 1, 1991, and for subsequent rate years, 409.28shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase 409.29under subdivision 1. The commissioner may adjust base year cost, relative value, and case 409.30mix index data to exclude the costs of services that have been discontinued by the October 409.311 of the year preceding the rate year or that are paid separately from inpatient services. 409.32Inpatient stays that encompass portions of two or more rate years shall have payments 409.33established based on payment rates in effect at the time of admission unless the date of 409.34admission preceded the rate year in effect by six months or more. In this case, operating 410.1payment rates for services rendered during the rate year in effect and established based on 410.2the date of admission shall be adjusted to the rate year in effect by the hospital cost index.410.3    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total 410.4payment, before third-party liability and spenddown, made to hospitals for inpatient 410.5services is reduced by .5 percent from the current statutory rates.410.6    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 410.7admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before 410.8third-party liability and spenddown, is reduced five percent from the current statutory 410.9rates. Mental health services within diagnosis related groups 424 to 432 or corresponding 410.10APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.410.11    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for 410.12fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 410.13inpatient services before third-party liability and spenddown, is reduced 6.0 percent from 410.14the current statutory rates. Mental health services within diagnosis related groups 424 410.15to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are 410.16excluded from this paragraph. Notwithstanding section 256.9686, subdivision 7, for 410.17purposes of this paragraph, medical assistance does not include general assistance medical 410.18care. Payments made to managed care plans shall be reduced for services provided on or 410.19after January 1, 2006, to reflect this reduction.410.20    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 410.21fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 410.22to hospitals for inpatient services before third-party liability and spenddown, is reduced 410.233.46 percent from the current statutory rates. Mental health services with diagnosis 410.24related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under 410.25subdivision 16 are excluded from this paragraph. Payments made to managed care plans 410.26shall be reduced for services provided on or after January 1, 2009, through June 30, 2009, 410.27to reflect this reduction.410.28    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 410.29for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, 410.30made to hospitals for inpatient services before third-party liability and spenddown, is 410.31reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis 410.32related groups 424 to 432 or corresponding APR-DRGs,  and facilities defined under 410.33subdivision 16 are excluded from this paragraph. Payments made to managed care plans 410.34shall be reduced for services provided on or after July 1, 2009, through June 30, 2011, 410.35to reflect this reduction.411.1    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 411.2for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for 411.3inpatient services before third-party liability and spenddown, is reduced 1.79 percent from 411.4the current statutory rates. Mental health services with diagnosis related groups 424 to 432411.5 or corresponding APR-DRGs,  and facilities defined under subdivision 16 are excluded 411.6from this paragraph. Payments made to managed care plans shall be reduced for services 411.7provided on or after July 1, 2011, to reflect this reduction.411.8(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 411.9payment for fee-for-service admissions occurring on or after July 1, 2009, made to 411.10hospitals for inpatient services before third-party liability and spenddown, is reduced 411.11one percent from the current statutory rates. Facilities defined under subdivision 16 are 411.12excluded from this paragraph. Payments made to managed care plans shall be reduced for 411.13services provided on or after October 1, 2009, to reflect this reduction.411.14(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total 411.15payment for fee-for-service admissions occurring on or after July 1, 2011, made to 411.16hospitals for inpatient services before third-party liability and spenddown, is reduced 411.171.96 percent from the current statutory rates. Facilities defined under subdivision 16 are 411.18excluded from this paragraph. Payments made to managed care plans shall be reduced for 411.19services provided on or after January 1, 2011, to reflect this reduction.411.20(j) Effective for discharges on and after October 1, 2014, from hospitals paid under 411.21subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision 411.22must be incorporated into the rebased rates established under subdivision 2b, paragraph 411.23(c), and must not be applied to each claim.411.24    Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:411.25    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain 411.26treatments. (a) The commissioner must not make medical assistance payments to a 411.27hospital for any costs of care that result from a condition listed identified in paragraph 411.28(c), if the condition was hospital acquired.411.29    (b) For purposes of this subdivision, a condition is hospital acquired if it is not 411.30identified by the hospital as present on admission. For purposes of this subdivision, 411.31medical assistance includes general assistance medical care and MinnesotaCare.411.32(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired 411.33condition listed in this paragraph that is represented by an ICD-9-CM  or ICD-10-CM 411.34diagnosis code and is designated as a complicating condition or a major complicating 411.35condition:412.1(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);412.2(2) air embolism (ICD-9-CM code 999.1);412.3(3) blood incompatibility (ICD-9-CM code 999.6);412.4(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);412.5(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing 412.6injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating 412.7condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929; 412.8940-949; and 991-994);412.9(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);412.10(7) vascular catheter-associated infection (ICD-9-CM code 999.31);412.11(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11; 412.12249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and 412.13251.0);412.14(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain 412.15orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07; 412.1681.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and 412.1781.85);412.18(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery 412.19(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity 412.20(ICD-9-CM code 278.01);412.21(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary 412.22artery bypass graft (procedure codes 36.10 to 36.19); and412.23(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary 412.24embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement 412.25(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 to 412.2681.52). The list of conditions shall be the hospital-acquired conditions (HAC) list defined 412.27by the Centers for Medicare and Medicaid Services on an annual basis.412.28(d) The prohibition in paragraph (a) applies to any additional payments that result 412.29from a hospital-acquired condition listed identified in paragraph (c), including, but not 412.30limited to, additional treatment or procedures, readmission to the facility after discharge, 412.31increased length of stay, change to a higher diagnostic category, or transfer to another 412.32hospital. In the event of a transfer to another hospital, the hospital where the condition 412.33listed identified under paragraph (c) was acquired is responsible for any costs incurred at 412.34the hospital to which the patient is transferred.412.35(e) A hospital shall not bill a recipient of services for any payment disallowed under 412.36this subdivision.413.1    Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 3c, is amended to read:413.2    Subd. 3c. Rateable reduction and readmissions reduction. (a) The total payment 413.3for fee for service admissions occurring on or after September 1, 2011, through June 30, 413.42015 to October 31, 2014, made to hospitals for inpatient services before third-party 413.5liability and spenddown, is reduced ten percent from the current statutory rates. Facilities 413.6defined under subdivision 16, long-term hospitals as determined under the Medicare 413.7program, children's hospitals whose inpatients are predominantly under 18 years of age, 413.8and payments under managed care are excluded from this paragraph.413.9(b) Effective for admissions occurring during calendar year 2010 and each year 413.10after, the commissioner shall calculate a regional readmission rate for admissions to all 413.11hospitals occurring within 30 days of a previous discharge. The commissioner may 413.12adjust the readmission rate taking into account factors such as the medical relationship, 413.13complicating conditions, and sequencing of treatment between the initial admission and 413.14subsequent readmissions.413.15(c) Effective for payments to all hospitals on or after July 1, 2013, through June 30, 413.162015 October 31, 2014, the reduction in paragraph (a) is reduced one percentage point for 413.17every percentage point reduction in the overall readmissions rate between the two previous 413.18calendar years to a maximum of five percent.413.19(d) The exclusion from the rate reduction in paragraph (a) also applies to admissions 413.20of patients under 18 years of age to a hospital located in Hennepin County with a licensed 413.21capacity of 1,700 beds as of September 1, 2011.413.22EFFECTIVE DATE.Paragraph (d) is effective retroactively from September 1, 413.232011, and applies to admissions on or after that date.413.24    Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 413.25to read:413.26    Subd. 4b.Medical assistance cost reports for services.(a) A hospital that meets 413.27one of the following criteria must annually file medical assistance cost reports within six 413.28months of the end of the hospital's fiscal year:413.29(1) a hospital designated as a critical access hospital that receives medical assistance 413.30payments; or413.31(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local 413.32trade area that receives a disproportionate population adjustment under subdivision 9.413.33For purposes of this subdivision, local trade area has the meaning given in 413.34subdivision 17.414.1(b) The commissioner shall suspend payments to any hospital that fails to file a 414.2report required under this subdivision. Payments must remain suspended until the report 414.3has been filed with and accepted by the Department of Human Services inpatient rates unit.414.4    Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:414.5    Subd. 6a. Special considerations. In determining the payment rates, the 414.6commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.414.7    Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:414.8    Subd. 8. Unusual length of stay experience.(a) The commissioner shall establish 414.9day outlier thresholds for each diagnostic category established under subdivision 2 at two 414.10standard deviations beyond the mean length of stay. Payment for the days beyond the outlier 414.11threshold shall be in addition to the operating and property payment rates per admission 414.12established under subdivisions 2, 2b, and 2c. Payment for outliers shall be at 70 percent of 414.13the allowable operating cost, after adjustment by the case mix index, hospital cost index, 414.14relative values and the disproportionate population adjustment. The outlier threshold for 414.15neonatal and burn diagnostic categories shall be established at one standard deviation 414.16beyond the mean length of stay, and payment shall be at 90 percent of allowable operating 414.17cost calculated in the same manner as other outliers. A hospital may choose an alternative 414.18to the 70 percent outlier payment that is at a minimum of 60 percent and a maximum of 80 414.19percent if the commissioner is notified in writing of the request by October 1 of the year 414.20preceding the rate year. The chosen percentage applies to all diagnostic categories except 414.21burns and neonates. The percentage of allowable cost that is unrecognized by the outlier 414.22payment shall be added back to the base year operating payment rate per admission.414.23(b) Effective for transfers occurring on and after October 1, 2014, the commissioner 414.24shall establish payment rates for acute transfers that are based on Medicare methodologies.414.25    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:414.26    Subd. 8a. Short length of stay Neonatal admissions.Except as provided in 414.27subdivision 13, for admissions occurring on or after July 1, 1995, payment shall be 414.28determined as follows and shall be included in the base year for rate setting purposes:414.29(1) for an admission that is categorized to a neonatal diagnostic related group 414.30in which the length of stay is less than 50 percent of the average length of stay for the 414.31category in the base year and the patient at admission is equal to or greater than the age of 414.32one, payments shall be established according to the methods of subdivision 14;415.1(2) For an admission that is categorized to a diagnostic category that includes 415.2neonatal respiratory distress syndrome, the hospital must have a level II or level III 415.3nursery and the patient must receive treatment in that unit or payment will be made 415.4without regard to the syndrome condition.415.5EFFECTIVE DATE.This section is effective October 1, 2014.415.6    Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 415.7to read:415.8    Subd. 8c.Hospital residents.For discharges on or after October 1, 2014, payments 415.9for hospital residents shall be made as follows:415.10(1) payments for the first 180 days of inpatient care shall be the APR-DRG system 415.11plus any appropriate outliers; and415.12(2) payment for all medically necessary patient care subsequent to 180 days shall 415.13be reimbursed at a rate computed by multiplying the statewide average cost-to-charge 415.14ratio by the usual and customary charges.415.15    Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:415.16    Subd. 9. Disproportionate numbers of low-income patients served. (a) For 415.17admissions occurring on or after October 1, 1992, through December 31, 1992, the 415.18medical assistance disproportionate population adjustment shall comply with federal law 415.19and shall be paid to a hospital, excluding regional treatment centers and facilities of the 415.20federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 415.21of the arithmetic mean. The adjustment must be determined as follows:415.22    (1) for a hospital with a medical assistance inpatient utilization rate above the 415.23arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 415.24federal Indian Health Service but less than or equal to one standard deviation above the 415.25mean, the adjustment must be determined by multiplying the total of the operating and 415.26property payment rates by the difference between the hospital's actual medical assistance 415.27inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 415.28treatment centers and facilities of the federal Indian Health Service; and415.29    (2) for a hospital with a medical assistance inpatient utilization rate above one 415.30standard deviation above the mean, the adjustment must be determined by multiplying 415.31the adjustment that would be determined under clause (1) for that hospital by 1.1. If 415.32federal matching funds are not available for all adjustments under this subdivision, the 415.33commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 415.34federal match. The commissioner may establish a separate disproportionate population 416.1operating payment rate adjustment under the general assistance medical care program. 416.2For purposes of this subdivision medical assistance does not include general assistance 416.3medical care. The commissioner shall report annually on the number of hospitals likely to 416.4receive the adjustment authorized by this paragraph. The commissioner shall specifically 416.5report on the adjustments received by public hospitals and public hospital corporations 416.6located in cities of the first class.416.7    (b) For admissions occurring on or after July 1, 1993, the medical assistance 416.8disproportionate population adjustment shall comply with federal law and shall be paid to 416.9a hospital, excluding regional treatment centers and facilities of the federal Indian Health 416.10Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 416.11mean. The adjustment must be determined as follows:416.12    (1) for a hospital with a medical assistance inpatient utilization rate above the 416.13arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 416.14federal Indian Health Service but less than or equal to one standard deviation above the 416.15mean, the adjustment must be determined by multiplying the total of the operating and 416.16property payment rates by the difference between the hospital's actual medical assistance 416.17inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 416.18treatment centers and facilities of the federal Indian Health Service; and416.19    (2) for a hospital with a medical assistance inpatient utilization rate above one 416.20standard deviation above the mean, the adjustment must be determined by multiplying 416.21the adjustment that would be determined under clause (1) for that hospital by 1.1. The 416.22commissioner may establish a separate disproportionate population operating payment 416.23rate adjustment under the general assistance medical care program. For purposes of 416.24this subdivision, medical assistance does not include general assistance medical care416.25 for critical access hospitals. The commissioner shall report annually on the number of 416.26hospitals likely to receive the adjustment authorized by this paragraph. The commissioner 416.27shall specifically report on the adjustments received by public hospitals and public hospital 416.28corporations located in cities of the first class;.416.29    (3) for a hospital that had medical assistance fee-for-service payment volume during 416.30calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 416.31payment volume, a medical assistance disproportionate population adjustment shall be 416.32paid in addition to any other disproportionate payment due under this subdivision as 416.33follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 416.34For a hospital that had medical assistance fee-for-service payment volume during calendar 416.35year 1991 in excess of eight percent of total medical assistance fee-for-service payment 416.36volume and was the primary hospital affiliated with the University of Minnesota, a 417.1medical assistance disproportionate population adjustment shall be paid in addition to any 417.2other disproportionate payment due under this subdivision as follows: $505,000 due on 417.3the 15th of each month after noon, beginning July 15, 1995; and417.4    (4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 417.5reduced to zero.417.6    (c) The commissioner shall adjust rates paid to a health maintenance organization 417.7under contract with the commissioner to reflect rate increases provided in paragraph (b), 417.8clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 417.9rates to reflect payments provided in clause (3).417.10    (d) If federal matching funds are not available for all adjustments under paragraph 417.11(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 417.12pro rata basis so that all adjustments under paragraph (b) qualify for federal match.417.13    (e) For purposes of this subdivision, medical assistance does not include general 417.14assistance medical care.417.15    (f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:417.16    (1) general assistance medical care expenditures for fee-for-service inpatient and 417.17outpatient hospital payments made by the department shall be considered Medicaid 417.18disproportionate share hospital payments, except as limited below:417.19     (i) only the portion of Minnesota's disproportionate share hospital allotment under 417.20section 1923(f) of the Social Security Act that is not spent on the disproportionate 417.21population adjustments in paragraph (b), clauses (1) and (2), may be used for general 417.22assistance medical care expenditures;417.23     (ii) only those general assistance medical care expenditures made to hospitals that 417.24qualify for disproportionate share payments under section 1923 of the Social Security Act 417.25and the Medicaid state plan may be considered disproportionate share hospital payments;417.26     (iii) only those general assistance medical care expenditures made to an individual 417.27hospital that would not cause the hospital to exceed its individual hospital limits under 417.28section 1923 of the Social Security Act may be considered; and417.29     (iv) general assistance medical care expenditures may be considered only to the 417.30extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.417.31All hospitals and prepaid health plans participating in general assistance medical care 417.32must provide any necessary expenditure, cost, and revenue information required by the 417.33commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 417.34general assistance medical care expenditures; and417.35    (2) (c) Certified public expenditures made by Hennepin County Medical Center shall 417.36be considered Medicaid disproportionate share hospital payments. Hennepin County 418.1and Hennepin County Medical Center shall report by June 15, 2007, on payments made 418.2beginning July 1, 2005, or another date specified by the commissioner, that may qualify 418.3for reimbursement under federal law. Based on these reports, the commissioner shall 418.4apply for federal matching funds.418.5    (g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)418.6 is effective retroactively from July 1, 2005, or the earliest effective date approved by the 418.7Centers for Medicare and Medicaid Services.418.8    Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:418.9    Subd. 10. Separate billing by certified registered nurse anesthetists. Hospitals 418.10may must exclude certified registered nurse anesthetist costs from the operating payment 418.11rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must 418.12notify the commissioner in writing by October 1 of even-numbered years to exclude 418.13certified registered nurse anesthetist costs. The hospital must agree that all hospital 418.14claims for the cost and charges of certified registered nurse anesthetist services will not 418.15be included as part of the rates for inpatient services provided during the rate year. In 418.16this case, the operating payment rate shall be adjusted to exclude the cost of certified 418.17registered nurse anesthetist services.418.18For admissions occurring on or after July 1, 1991, and until the expiration date of 418.19section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided 418.20on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when 418.21the hospital's base year did not include the cost of these services. To be eligible, a hospital 418.22must notify the commissioner in writing by July 1, 1991, of the request and must comply 418.23with all other requirements of this subdivision.418.24    Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:418.25    Subd. 12. Rehabilitation hospitals and distinct parts.(a) Units of hospitals that 418.26are recognized as rehabilitation distinct parts by the Medicare program shall have separate 418.27provider numbers under the medical assistance program for rate establishment and billing 418.28purposes only. These units shall also have operating and property payment rates and the 418.29disproportionate population adjustment, if allowed by federal law, established separately 418.30from other inpatient hospital services. 418.31(b) The commissioner may shall establish separate relative values under subdivision 418.322 for rehabilitation hospitals and distinct parts as defined by the Medicare program. 418.33Effective for discharges on and after October 1, 2014, the commissioner, to the extent 418.34possible, shall replicate the existing payment rate methodology under the new diagnostic 419.1classification system. The result must be budget neutral, ensuring that the total aggregate 419.2payments under the new system are equal to the total aggregate payments made for the 419.3same number and types of services in the base year state fiscal year 2012.419.4(c) For individual hospitals that did not have separate medical assistance 419.5rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals 419.6shall provide the information needed to separate rehabilitation distinct part cost and claims 419.7data from other inpatient service data.419.8    Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:419.9    Subd. 14. Transfers.Except as provided in subdivisions 11 and 13,(a) Operating 419.10and property payment rates for admissions that result in transfers and transfers shall be 419.11established on a per day payment system. The per day payment rate shall be the sum of 419.12the adjusted operating and property payment rates determined under this subdivision and 419.13subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length 419.14of stay for the diagnostic category. Each admission that results in a transfer and each 419.15transfer is considered a separate admission to each hospital, and the total of the admission 419.16and transfer payments to each hospital must not exceed the total per admission payment 419.17that would otherwise be made to each hospital under this subdivision and subdivisions 419.182, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.419.19(b) Effective for transfers occurring on and after October 1, 2014, the commissioner 419.20shall establish payment rates for acute transfers that are based on Medicare methodologies.419.21    Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:419.22    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that 419.23are located within a Minnesota local trade area and that have more than 20 admissions in 419.24the base year or years shall have rates established using the same procedures and methods 419.25that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area 419.26means a county contiguous to Minnesota and located in a metropolitan statistical area as 419.27determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals 419.28that are not required by law to file information in a format necessary to establish rates shall 419.29have rates established based on the commissioner's estimates of the information. Relative 419.30values of the diagnostic categories shall not be redetermined under this subdivision until 419.31required by rule statute. Hospitals affected by this subdivision shall then be included in 419.32determining relative values. However, hospitals that have rates established based upon 419.33the commissioner's estimates of information shall not be included in determining relative 419.34values. This subdivision is effective for hospital fiscal years beginning on or after July 420.11, 1988. A hospital shall provide the information necessary to establish rates under this 420.2subdivision at least 90 days before the start of the hospital's fiscal year.420.3    Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:420.4    Subd. 18. Out-of-state hospitals outside local trade areas. Hospitals that are 420.5not located within Minnesota or a Minnesota local trade area shall have operating and 420.6property inpatient hospital rates established at the average of statewide and local trade area 420.7rates or, at the commissioner's discretion, at an amount negotiated by the commissioner. 420.8Relative values shall not include data from hospitals that have rates established under this 420.9subdivision. Payments, including third-party and recipient liability, established under this 420.10subdivision may not exceed the charges on a claim specific basis for inpatient services that 420.11are covered by medical assistance.420.12    Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:420.13    Subd. 25. Long-term hospital rates.(a) Long-term hospitals shall be paid a per 420.14diem rate established by the commissioner.420.15(b) For admissions occurring on or after April 1, 1995, a long-term hospital as 420.16designated by Medicare that does not have admissions in the base year shall have 420.17inpatient rates established at the average of other hospitals with the same designation. For 420.18subsequent rate-setting periods in which base years are updated, the hospital's base year 420.19shall be the first Medicare cost report filed with the long-term hospital designation and 420.20shall remain in effect until it falls within the same period as other hospitals.420.21    Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:420.22    Subd. 30. Payment rates for births. (a) For admissions occurring on or after 420.23October 1, 2009 October 1, 2014, the total operating and property payment rate, excluding 420.24disproportionate population adjustment, for the following diagnosis-related groups, as 420.25they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section without 420.26complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372 vaginal 420.27delivery with complicating diagnosis; and (3) 373 vaginal delivery without complicating 420.28diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater than $3,528.420.29(b) The rates described in this subdivision do not include newborn care.420.30(c) Payments to managed care and county-based purchasing plans under section 420.31256B.69
         , 
         256B.692, or 
         256L.12 shall be reduced for services provided on or after October 420.321, 2009, to reflect the adjustments in paragraph (a).421.1(d) Prior authorization shall not be required before reimbursement is paid for a 421.2cesarean section delivery.421.3    Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a 421.4subdivision to read:421.5    Subd. 24.Medicaid waiver requests and state plan amendments.Prior to 421.6submitting any Medicaid waiver request or Medicaid state plan amendment to the federal 421.7government for approval, the commissioner shall publish the text of the waiver request 421.8or state plan amendment, or a Web link to the text, in the State Register, and provide a 421.930-day public comment period. The commissioner shall consider public comments when 421.10preparing the final waiver request or state plan amendment that is to be submitted to 421.11the federal government for approval. The commissioner shall also publish in the State 421.12Register notice of any federal decision related to the state request for approval, within 30 421.13days of the decision. This notice must describe any modifications to the state request that 421.14have been agreed to by the commissioner as a condition of receiving federal approval.421.15    Sec. 28. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to 421.16read:421.17    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic 421.18services, federally qualified health center services, nonprofit community health clinic 421.19services, and public health clinic services. Rural health clinic services and federally 421.20qualified health center services mean services defined in United States Code, title 42, 421.21section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 421.22health center services shall be made according to applicable federal law and regulation.421.23(b) A federally qualified health center that is beginning initial operation shall submit 421.24an estimate of budgeted costs and visits for the initial reporting period in the form and 421.25detail required by the commissioner. A federally qualified health center that is already in 421.26operation shall submit an initial report using actual costs and visits for the initial reporting 421.27period. Within 90 days of the end of its reporting period, a federally qualified health 421.28center shall submit, in the form and detail required by the commissioner, a report of 421.29its operations, including allowable costs actually incurred for the period and the actual 421.30number of visits for services furnished during the period, and other information required 421.31by the commissioner. Federally qualified health centers that file Medicare cost reports 421.32shall provide the commissioner with a copy of the most recent Medicare cost report filed 421.33with the Medicare program intermediary for the reporting year which support the costs 421.34claimed on their cost report to the state.422.1(c) In order to continue cost-based payment under the medical assistance program 422.2according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 422.3must apply for designation as an essential community provider within six months of final 422.4adoption of rules by the Department of Health according to section 
         62Q.19, subdivision 422.57
         . For those federally qualified health centers and rural health clinics that have applied 422.6for essential community provider status within the six-month time prescribed, medical 422.7assistance payments will continue to be made according to paragraphs (a) and (b) for the 422.8first three years after application. For federally qualified health centers and rural health 422.9clinics that either do not apply within the time specified above or who have had essential 422.10community provider status for three years, medical assistance payments for health services 422.11provided by these entities shall be according to the same rates and conditions applicable 422.12to the same service provided by health care providers that are not federally qualified 422.13health centers or rural health clinics.422.14(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 422.15qualified health center or a rural health clinic to make application for an essential 422.16community provider designation in order to have cost-based payments made according 422.17to paragraphs (a) and (b) no longer apply.422.18(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 422.19shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.422.20(f) Effective January 1, 2001, each federally qualified health center and rural health 422.21clinic may elect to be paid either under the prospective payment system established 422.22in United States Code, title 42, section 1396a(aa), or under an alternative payment 422.23methodology consistent with the requirements of United States Code, title 42, section 422.241396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 422.25alternative payment methodology shall be 100 percent of cost as determined according to 422.26Medicare cost principles.422.27(g) For purposes of this section, "nonprofit community clinic" is a clinic that:422.28(1) has nonprofit status as specified in chapter 317A;422.29(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);422.30(3) is established to provide health services to low-income population groups, 422.31uninsured, high-risk and special needs populations, underserved and other special needs 422.32populations;422.33(4) employs professional staff at least one-half of which are familiar with the 422.34cultural background of their clients;422.35(5) charges for services on a sliding fee scale designed to provide assistance to 422.36low-income clients based on current poverty income guidelines and family size; and423.1(6) does not restrict access or services because of a client's financial limitations or 423.2public assistance status and provides no-cost care as needed.423.3(h) Effective for services provided on and after January 1, 2015, all claims for 423.4payment of clinic services provided by federally qualified health centers and rural health 423.5clinics shall be submitted to both the commissioner and the managed care or county-based 423.6purchasing plan and shall be paid by the commissioner. The commissioner shall provide 423.7claims payment information to managed care plans and county-based purchasing plans 423.8on a regular basis.423.9(i) For clinic services provided prior to January 1, 2015, the commissioner shall 423.10require managed care and county-based purchasing plans to provide all necessary claims 423.11information to the commissioner and the commissioner shall calculate and pay monthly 423.12the proposed managed care supplemental payments to clinics, and clinics shall conduct a 423.13timely review of the payment calculation data in order to finalize all supplemental payments 423.14in accordance with federal law. Any issues arising from a clinic's review must be reported 423.15to the commissioner by January 1, 2017. Upon final agreement between the commissioner 423.16and a clinic on issues identified under this subdivision, and in accordance with United 423.17States Code, title 42, section 1396a(bb), no supplemental payments for managed care 423.18claims for services provided prior to January 1, 2015, shall be made after June 30, 2017. 423.19If the commissioner and clinics are unable to resolve issues under this subdivision, the 423.20parties shall submit the dispute to the arbitration process under section 14.57.423.21    Sec. 29. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 11, 423.22is amended to read:423.23    Subd. 11. Federal approval of the autism benefit.(a) The provisions of 423.24subdivision 9 this section shall apply to state plan services under title XIX of the Social 423.25Security Act when federal approval is granted under a 1915(i) waiver or other authority 423.26which allows children eligible for medical assistance through the TEFRA option under 423.27section 
         256B.055, subdivision 12, to qualify and includes children eligible for medical 423.28assistance in families over 150 percent of the federal poverty guidelines.423.29(b) The commissioner may use the federal authority for a Medicaid state plan 423.30amendment under Early Periodic Diagnosis Screening and Treatment (EPSDT), United 423.31States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any aspect or 423.32type of treatment covered in this section if new federal guidance is helpful in achieving 423.33one or more of the purposes of this section in a cost-effective manner. Notwithstanding 423.34subdivisions 2 and 3, any treatment services submitted for federal approval under EPSDT 424.1shall include appropriate medical criteria to qualify for the service and shall cover children 424.2through age 20.424.3    Sec. 30. Minnesota Statutes 2012, section 256B.199, is amended to read:424.4256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.424.5    (a) Effective July 1, 2007, The commissioner shall apply for federal matching 424.6funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the 424.7commissioner shall apply for matching funds for expenditures in paragraph (e).424.8    (b) The commissioner shall apply for federal matching funds for certified public 424.9expenditures as follows:424.10    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, and 424.11Regions Hospital, the University of Minnesota, and Fairview-University Medical Center424.12 shall report quarterly to the commissioner beginning June 1, 2007, payments made during 424.13the second previous quarter that may qualify for reimbursement under federal law;424.14     (2) based on these reports, the commissioner shall apply for federal matching 424.15funds. These funds are appropriated to the commissioner for the payments under section 424.16256.969, subdivision 27
         ; and424.17     (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 424.18the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 424.19hospital payment money expected to be available in the current federal fiscal year.424.20    (c) The commissioner shall apply for federal matching funds for general assistance 424.21medical care expenditures as follows:424.22    (1) for hospital services occurring on or after July 1, 2007, general assistance medical 424.23care expenditures for fee-for-service inpatient and outpatient hospital payments made by 424.24the department shall be used to apply for federal matching funds, except as limited below:424.25    (i) only those general assistance medical care expenditures made to an individual 424.26hospital that would not cause the hospital to exceed its individual hospital limits under 424.27section 1923 of the Social Security Act may be considered; and424.28    (ii) general assistance medical care expenditures may be considered only to the extent 424.29of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and424.30    (2) all hospitals must provide any necessary expenditure, cost, and revenue 424.31information required by the commissioner as necessary for purposes of obtaining federal 424.32Medicaid matching funds for general assistance medical care expenditures.424.33(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner 424.34shall apply for additional federal matching funds available as disproportionate share 424.35hospital payments under the American Recovery and Reinvestment Act of 2009. These 425.1funds shall be made available as the state share of payments under section 
         256.969, 425.2subdivision 28
         . The entities required to report certified public expenditures under 425.3paragraph (b), clause (1), shall report additional certified public expenditures as necessary 425.4under this paragraph.425.5(e) (d) For services provided on or after September 1, 2011, the commissioner shall 425.6apply for additional federal matching funds available as disproportionate share hospital 425.7payments under the MinnesotaCare program according to the requirements and conditions 425.8of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate 425.9share hospital for purposes of this paragraph, if the hospital does not qualify for a payment 425.10under section 
         256.969, subdivision 9, paragraph (b).425.11    Sec. 31. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34, 425.12is amended to read:425.13    Subd. 34. Supplemental recovery program. The commissioner shall conduct a 425.14supplemental recovery program for third-party liabilities identified through coordination 425.15of benefits not recovered by managed care plans and county-based purchasing plans for 425.16state public health programs. Any third-party liability identified through coordination of 425.17benefits and recovered by the commissioner more than six eight months after the date 425.18a managed care plan or county-based purchasing plan receives adjudicates a health 425.19care claim shall be retained by the commissioner and deposited in the general fund. 425.20The commissioner shall establish a mechanism, including a reconciliation process, for 425.21managed care plans and county-based purchasing plans to coordinate third-party liability 425.22collections efforts resulting from coordination of benefits under this subdivision with the 425.23commissioner to ensure there is no duplication of efforts. The coordination mechanism 425.24must be consistent with the reporting requirements in subdivision 9c. The commissioner 425.25shall share accurate and timely third-party liability data with managed care plans and 425.26county-based purchasing plans.425.27    Sec. 32. [256L.30] LOW-INCOME UNINSURED CHILDREN'S HEALTH 425.28PROGRAM.425.29    Subdivision 1.General.(a) Effective January 1, 2016, the commissioner shall 425.30establish a program that provides coverage to low-income uninsured children who are not 425.31eligible for medical assistance or MinnesotaCare.425.32(b) A child is eligible for the program under this section if the child is under the age 425.33of 21, and meets all other MinnesotaCare eligibility requirements under this chapter, 425.34except as otherwise specified in this section, and:426.1(1) has been determined eligible for the emergency medical assistance program 426.2under section 256B.06, subdivision 4, paragraph (e) or (f); or 426.3(2) the child's treating health care provider certifies that the child has an emergency 426.4medical condition as defined in United States Code, title 42, section 1396b(v), that is 426.5likely to lead to the child being admitted to a hospital or emergency department unless 426.6intervening outpatient health care treatment is provided.426.7(c) Eligibility continues under this section for as long as the child continues to have 426.8the underlying medical condition that gave rise to the initial emergency medical condition.426.9(d) Children eligible for the program under this subdivision are exempt from the 426.10income eligibility limits under section 256L.04 and section 256L.07, and remain eligible 426.11for the program so long as their family income is equal to or less than 275 percent of federal 426.12poverty guidelines, and the citizenship requirements under section 256L.04, subdivision 10.426.13(e) Children who are eligible for medical assistance under chapter 256B, or 426.14MinnesotaCare under this chapter, are not eligible for the program under this section.426.15(f) All application, navigation services, eligibility determination, enrollment, 426.16disenrollment, and premium requirements and procedures of the MinnesotaCare program 426.17apply to this program, except as otherwise specified in this section.426.18    Subd. 2.Covered services.(a) The program covers the services described under 426.19section 256L.03, except as otherwise specified in this subdivision.426.20(b) The program does not cover services for an emergency medical condition that are 426.21covered by the emergency medical assistance program under section 256B.06, subdivision 426.224, paragraphs (e) to (h). The commissioner shall coordinate the program with the federally 426.23subsidized emergency medical assistance program with the goal of making transitions 426.24between the programs seamless and invisible to the enrollee to the extent possible.426.25(c) For children who are eligible under subdivision 1, the program covers nursing 426.26facility services described under section 144.0724, subdivision 11, and home and 426.27community-based services described in paragraph (d), if the child's family income is equal 426.28to or less than the medical assistance income eligibility standards described in section 426.29256B.056, subdivision 4, or meets the excess income standards described in section 426.30256B.056, subdivisions 5 and 5c. All requirements of the medical assistance program 426.31under chapter 256B relating to these services apply to the program under this section.426.32(d) For purposes of this section, home and community-based services include:426.33(1) home and community-based waivered services for persons with developmental 426.34disabilities, including consumer-directed community supports under section 256B.092;426.35(2) waivered services under community alternatives for disabled individuals, 426.36including consumer-directed community supports under section 256B.49;427.1(3) community alternative care waivered services, including consumer-directed 427.2community supports under section 256B.49;427.3(4) brain injury waivered services, including consumer-directed community supports 427.4under section 256B.49;427.5(5) home and community-based waivered services for the elderly under section 427.6256B.0915;427.7(6) nursing services and home health services under section 256B.0625, subdivision 427.86a;427.9(7) personal care services and qualified professional supervision of personal care 427.10services under section 256B.0625, subdivisions 6a and 19a;427.11(8) private duty nursing services under section 256B.0625, subdivision 7; and427.12(9) community first services and supports under section 256B.85.427.13    Subd. 3.Premiums and cost-sharing.For children who are eligible under 427.14subdivision 1, the premium and cost-sharing provisions of the MinnesotaCare program 427.15apply.427.16    Subd. 4.Service delivery.(a) The commissioner may contract with managed care 427.17plans, county-based purchasing plans, provider networks, nonprofit coverage programs, 427.18counties, or health care delivery systems established under section 256B.0755 or 427.19256B.0756 to administer the program authorized under this section in order to control the 427.20costs of the program through care coordination, limited provider networks, fee discounts, 427.21and other methods. The commissioner may delegate to a contractor the responsibility 427.22to perform case reviews and authorize payment. The commissioner may contract on 427.23a capitated or fixed budget basis under which the contractor shall be responsible for 427.24providing the covered services to eligible children within the limits of the capitation 427.25or budgeted amount. The commissioner may also contract using gain-sharing and 427.26risk-sharing methods authorized for demonstration projects established under sections 427.27256B.0755 and 256B.0756. If the commissioner contracts with a contractor under 427.28this subdivision, the commissioner may separate nursing facility services, home and 427.29community-based services, and pharmacy services from other covered services and may 427.30provide payment for these services under the commissioner's fee-for-service payment 427.31system instead of payment to the contracted entity.427.32(b) If no qualified contractors are available and willing to contract on alternative 427.33payment terms in a geographic area of the state, the commissioner shall administer the 427.34program as a fee-for-service program in that area, but may establish additional utilization 427.35review and care management programs and requirements in order to control the costs 427.36of the program.428.1(c) The commissioner shall ensure that an eligible child is provided the opportunity 428.2to receive covered services from any essential community provider, as defined in section 428.362Q.19, and that the terms of participation of the essential community provider are in 428.4conformance with the requirements of section 62Q.19.428.5    Sec. 33. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to 428.6read:428.7EFFECTIVE DATE.This section is effective January July  1, 2014.428.8    Sec. 34. FEDERAL AUTHORITY; EMERGENCY MEDICAL ASSISTANCE 428.9PROGRAM.428.10The commissioner shall seek federal authority to make changes to the emergency 428.11medical assistance program established under Minnesota Statutes, section 256B.06, 428.12subdivision 4, paragraphs (e) to (h), to allow coverage and payment for cost-effective 428.13community-based and outpatient services as an alternative to hospital inpatient and 428.14emergency department services in order to reduce the total cost of care.428.15EFFECTIVE DATE.This section is effective the day following final enactment.428.16    Sec. 35. ORAL HEALTH DELIVERY AND REIMBURSEMENT SYSTEM.428.17(a) The commissioner of human services, in consultation with the commissioner of 428.18health, shall convene a work group to develop a new delivery and reimbursement system 428.19for oral health and dental services that are provided to enrollees of the state public health 428.20care programs. The new system must ensure cost-effective delivery and an increase in 428.21access to services.428.22(b) The commissioner shall consult with dental providers enrolled in the state public 428.23health programs, including providers who serve substantial numbers of low-income 428.24and uninsured patients and are currently receiving critical access dental payments; 428.25private practicing dentists; nonprofit community clinics; managed care and county-based 428.26purchasing plans; and health plan companies that provide either directly or through 428.27contracts with providers dental services to enrollees of state public health care programs.428.28(c) The commissioner shall submit a report containing the proposed delivery and 428.29reimbursement system, including draft legislation to the chairs and ranking minority 428.30members of the legislative committees and divisions with jurisdiction over health and 428.31human services policy and finance by January 15, 2015.429.1    Sec. 36.  REPEALER.429.2Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 429.321, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed effective October 429.41, 2014.429.5ARTICLE 20429.6HEALTH DEPARTMENT429.7    Section 1. Minnesota Statutes 2012, section 144.1501, subdivision 1, is amended to read:429.8    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions 429.9apply.429.10(b) "Dentist" means an individual who is licensed to practice dentistry.429.11(c) "Designated rural area" means an area defined as a small rural area or 429.12isolated rural area according to the four category classifications of the Rural Urban 429.13Commuting Area system developed for the United States Health Resources and Services 429.14Administration a city or township that is:429.15(1) outside the seven-county metropolitan area as defined in section 473.121, 429.16subdivision 2; and429.17(2) has a population under 15,000.429.18(d) "Emergency circumstances" means those conditions that make it impossible for 429.19the participant to fulfill the service commitment, including death, total and permanent 429.20disability, or temporary disability lasting more than two years.429.21(e) "Medical resident" means an individual participating in a medical residency in 429.22family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.429.23(f) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse 429.24anesthetist, advanced clinical nurse specialist, or physician assistant.429.25(g) "Nurse" means an individual who has completed training and received all 429.26licensing or certification necessary to perform duties as a licensed practical nurse or 429.27registered nurse.429.28(h) "Nurse-midwife" means a registered nurse who has graduated from a program of 429.29study designed to prepare registered nurses for advanced practice as nurse-midwives.429.30(i) "Nurse practitioner" means a registered nurse who has graduated from a program 429.31of study designed to prepare registered nurses for advanced practice as nurse practitioners.429.32(j) "Pharmacist" means an individual with a valid license issued under chapter 151.429.33(k) "Physician" means an individual who is licensed to practice medicine in the areas 429.34of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.429.35(l) "Physician assistant" means a person licensed under chapter 147A.430.1(m) "Qualified educational loan" means a government, commercial, or foundation 430.2loan for actual costs paid for tuition, reasonable education expenses, and reasonable living 430.3expenses related to the graduate or undergraduate education of a health care professional.430.4(n) "Underserved urban community" means a Minnesota urban area or population 430.5included in the list of designated primary medical care health professional shortage areas 430.6(HPSAs), medically underserved areas (MUAs), or medically underserved populations 430.7(MUPs) maintained and updated by the United States Department of Health and Human 430.8Services.430.9    Sec. 2. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:430.10    Subdivision 1. Restricted construction or modification. (a) The following 430.11construction or modification may not be commenced:430.12(1) any erection, building, alteration, reconstruction, modernization, improvement, 430.13extension, lease, or other acquisition by or on behalf of a hospital that increases the bed 430.14capacity of a hospital, relocates hospital beds from one physical facility, complex, or site 430.15to another, or otherwise results in an increase or redistribution of hospital beds within 430.16the state; and430.17(2) the establishment of a new hospital.430.18(b) This section does not apply to:430.19(1) construction or relocation within a county by a hospital, clinic, or other health 430.20care facility that is a national referral center engaged in substantial programs of patient 430.21care, medical research, and medical education meeting state and national needs that 430.22receives more than 40 percent of its patients from outside the state of Minnesota;430.23(2) a project for construction or modification for which a health care facility held 430.24an approved certificate of need on May 1, 1984, regardless of the date of expiration of 430.25the certificate;430.26(3) a project for which a certificate of need was denied before July 1, 1990, if a 430.27timely appeal results in an order reversing the denial;430.28(4) a project exempted from certificate of need requirements by Laws 1981, chapter 430.29200, section 2;430.30(5) a project involving consolidation of pediatric specialty hospital services within 430.31the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the 430.32number of pediatric specialty hospital beds among the hospitals being consolidated;430.33(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds 430.34to an existing licensed hospital that will allow for the reconstruction of a new philanthropic, 430.35pediatric-orthopedic hospital on an existing site and that will not result in a net increase in 431.1the number of hospital beds. Upon completion of the reconstruction, the licenses of both 431.2hospitals must be reinstated at the capacity that existed on each site before the relocation;431.3(7) the relocation or redistribution of hospital beds within a hospital building or 431.4identifiable complex of buildings provided the relocation or redistribution does not result 431.5in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds 431.6from one physical site or complex to another; or (iii) redistribution of hospital beds within 431.7the state or a region of the state;431.8(8) relocation or redistribution of hospital beds within a hospital corporate system 431.9that involves the transfer of beds from a closed facility site or complex to an existing site 431.10or complex provided that: (i) no more than 50 percent of the capacity of the closed facility 431.11is transferred; (ii) the capacity of the site or complex to which the beds are transferred 431.12does not increase by more than 50 percent; (iii) the beds are not transferred outside of a 431.13federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or 431.14redistribution does not involve the construction of a new hospital building;431.15(9) a construction project involving up to 35 new beds in a psychiatric hospital in 431.16Rice County that primarily serves adolescents and that receives more than 70 percent of its 431.17patients from outside the state of Minnesota;431.18(10) a project to replace a hospital or hospitals with a combined licensed capacity 431.19of 130 beds or less if: (i) the new hospital site is located within five miles of the current 431.20site; and (ii) the total licensed capacity of the replacement hospital, either at the time of 431.21construction of the initial building or as the result of future expansion, will not exceed 70 431.22licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;431.23(11) the relocation of licensed hospital beds from an existing state facility operated 431.24by the commissioner of human services to a new or existing facility, building, or complex 431.25operated by the commissioner of human services; from one regional treatment center 431.26site to another; or from one building or site to a new or existing building or site on the 431.27same campus;431.28(12) the construction or relocation of hospital beds operated by a hospital having a 431.29statutory obligation to provide hospital and medical services for the indigent that does not 431.30result in a net increase in the number of hospital beds, notwithstanding section 
         144.552, 27 431.31beds, of which 12 serve mental health needs, may be transferred from Hennepin County 431.32Medical Center to Regions Hospital under this clause;431.33(13) a construction project involving the addition of up to 31 new beds in an existing 431.34nonfederal hospital in Beltrami County;431.35(14) a construction project involving the addition of up to eight new beds in an 431.36existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;432.1(15) a construction project involving the addition of 20 new hospital beds 432.2used for rehabilitation services in an existing hospital in Carver County serving the 432.3southwest suburban metropolitan area. Beds constructed under this clause shall not be 432.4eligible for reimbursement under medical assistance, general assistance medical care, 432.5or MinnesotaCare;432.6(16) a project for the construction or relocation of up to 20 hospital beds for the 432.7operation of up to two psychiatric facilities or units for children provided that the operation 432.8of the facilities or units have received the approval of the commissioner of human services;432.9(17) a project involving the addition of 14 new hospital beds to be used for 432.10rehabilitation services in an existing hospital in Itasca County;432.11(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin 432.12County that closed 20 rehabilitation beds in 2002, provided that the beds are used only 432.13for rehabilitation in the hospital's current rehabilitation building. If the beds are used for 432.14another purpose or moved to another location, the hospital's licensed capacity is reduced 432.15by 20 beds;432.16(19) a critical access hospital established under section 
         144.1483, clause (9), and 432.17section 1820 of the federal Social Security Act, United States Code, title 42, section 432.181395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public 432.19Law 105-33, to the extent that the critical access hospital does not seek to exceed the 432.20maximum number of beds permitted such hospital under federal law;432.21(20) notwithstanding section 
         144.552, a project for the construction of a new hospital 432.22in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:432.23(i) the project, including each hospital or health system that will own or control the 432.24entity that will hold the new hospital license, is approved by a resolution of the Maple 432.25Grove City Council as of March 1, 2006;432.26(ii) the entity that will hold the new hospital license will be owned or controlled by 432.27one or more not-for-profit hospitals or health systems that have previously submitted a 432.28plan or plans for a project in Maple Grove as required under section 
         144.552, and the 432.29plan or plans have been found to be in the public interest by the commissioner of health 432.30as of April 1, 2005;432.31(iii) the new hospital's initial inpatient services must include, but are not limited 432.32to, medical and surgical services, obstetrical and gynecological services, intensive 432.33care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics, 432.34behavioral health services, and emergency room services;432.35(iv) the new hospital:433.1(A) will have the ability to provide and staff sufficient new beds to meet the growing 433.2needs of the Maple Grove service area and the surrounding communities currently being 433.3served by the hospital or health system that will own or control the entity that will hold 433.4the new hospital license;433.5(B) will provide uncompensated care;433.6(C) will provide mental health services, including inpatient beds;433.7(D) will be a site for workforce development for a broad spectrum of 433.8health-care-related occupations and have a commitment to providing clinical training 433.9programs for physicians and other health care providers;433.10(E) will demonstrate a commitment to quality care and patient safety;433.11(F) will have an electronic medical records system, including physician order entry;433.12(G) will provide a broad range of senior services;433.13(H) will provide emergency medical services that will coordinate care with regional 433.14providers of trauma services and licensed emergency ambulance services in order to 433.15enhance the continuity of care for emergency medical patients; and433.16(I) will be completed by December 31, 2009, unless delayed by circumstances 433.17beyond the control of the entity holding the new hospital license; and433.18(v) as of 30 days following submission of a written plan, the commissioner of health 433.19has not determined that the hospitals or health systems that will own or control the entity 433.20that will hold the new hospital license are unable to meet the criteria of this clause;433.21(21) a project approved under section 
         144.553;433.22(22) a project for the construction of a hospital with up to 25 beds in Cass County 433.23within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's 433.24license holder is approved by the Cass County Board;433.25(23) a project for an acute care hospital in Fergus Falls that will increase the bed 433.26capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16 433.27and closing a separately licensed 13-bed skilled nursing facility; or433.28(24) notwithstanding section 
         144.552, a project for the construction and expansion 433.29of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for 433.30patients who are under 21 years of age on the date of admission. The commissioner 433.31conducted a public interest review of the mental health needs of Minnesota and the Twin 433.32Cities metropolitan area in 2008. No further public interest review shall be conducted for 433.33the construction or expansion project under this clause; or433.34(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if 433.35the commissioner finds the project is in the public interest after the public interest review 433.36conducted under section 144.552 is complete.434.1EFFECTIVE DATE.This section is effective the day following final enactment.434.2    Sec. 3. [144.9513] HEALTHY HOUSING GRANTS.434.3    Subdivision 1.Definitions.For purposes of this section and sections 144.9501 to 434.4144.9512, the following terms have the meanings given.434.5(a) "Housing" means a room or group of rooms located within a dwelling forming 434.6a single habitable unit with facilities used or intended to be used for living, sleeping, 434.7cooking, and eating.434.8(b) "Healthy housing" means housing that is sited, designed, built, renovated, and 434.9maintained in ways that supports the health of residents.434.10(c) "Housing-based health threat" means a chemical, biologic, or physical agent in 434.11the immediate housing environment which constitutes a potential or actual hazard to 434.12human health at acute or chronic exposure levels.434.13(d) "Primary prevention" means preventing exposure to housing-based health threats 434.14before seeing clinical symptoms or a diagnosis.434.15(e) "Secondary prevention" means intervention to mitigate health effects on people 434.16with housing-based health threats.434.17    Subd. 2.Grants; administration.Grant applicants shall submit applications to 434.18the commissioner as directed by a request for proposals. Grants must be competitively 434.19awarded and recipients of a grant under this section must prepare and submit a quarterly 434.20progress report to the commissioner beginning three months after receipt of the grant. The 434.21commissioner shall provide technical assistance and program support as needed to ensure 434.22that housing-based health threats are effectively identified, mitigated, and evaluated by 434.23grantees.434.24    Subd. 3.Education and training grant; eligible activities.(a) Within the limits of 434.25available appropriations, the commissioner shall make grants to nonprofit organizations, 434.26community health boards, and community action agencies under section 256E.31 with 434.27expertise in providing outreach, education, and training on healthy homes subjects and in 434.28providing comprehensive healthy homes assessments and interventions to provide healthy 434.29housing education, training, and technical assistance services for persons engaged in 434.30addressing housing-based health threats and other individuals impacted by housing-based 434.31health threats. 434.32(b) The grantee may conduct the following activities: 434.33(1) implement and maintain primary prevention programs to reduce housing-based 434.34health threats that include the following:435.1(i) providing education materials to the general public and to property owners, 435.2contractors, code officials, health care providers, public health professionals, health 435.3educators, nonprofit organizations, and other persons and organizations engaged in 435.4housing and health issues; 435.5(ii) promoting awareness of community, legal, and housing resources; and 435.6(iii) promoting the use of hazard reduction measures in new housing construction 435.7and housing rehabilitation programs;435.8(2) provide training on identifying and addressing housing-based health threats;  435.9(3) provide technical assistance on the implementation of mitigation measures;435.10(4) promote adoption of evidence-based best practices for mitigation of 435.11housing-based health threats; or 435.12(5) develop work practices for addressing specific housing-based health threats.435.13    Subd. 4.Healthy homes implementation grant; eligible activities.Within the 435.14limits of available appropriations, the commissioner shall make grants to nonprofit 435.15organizations, community health boards, and community action agencies under section 435.16256E.31 to support implementation of healthy housing programs in local jurisdictions for 435.17any of the following activities:435.18(1) identify, characterize, and mitigate hazards in housing that contribute to adverse 435.19health outcomes;435.20(2) ensure screening services and other secondary prevention measures are provided 435.21to populations at high risk for housing-based health threats;435.22(3) promote compliance with Department of Health guidelines and other best 435.23practices, as identified by the commissioner, for preventing or reducing housing-based 435.24health threats;435.25(4) establish local or regional collaborative groups to ensure that  resources for 435.26addressing housing-based health threats are coordinated; or 435.27(5) develop model programs for addressing housing-based health threats.435.28    Sec. 4. [144A.484] INTEGRATED LICENSURE; HOME AND 435.29COMMUNITY-BASED SERVICES DESIGNATION.435.30    Subdivision 1.Integrated licensing established.(a) From January 1, 2014, to 435.31June 30, 2015, the commissioner of health shall enforce the home and community-based 435.32services standards under chapter 245D for those providers who also have a home care 435.33license pursuant to this chapter as required under Laws 2013, chapter 108, article 8, section 435.3460, and article 11, section 31. During this period, the commissioner shall provide technical 435.35assistance to achieve and maintain compliance with applicable law or rules governing the 436.1provision of home and community-based services, including complying with the service 436.2recipient rights notice in subdivision 4, clause (4). If during the survey, the commissioner 436.3finds that the licensee has failed to achieve compliance with an applicable law or rule 436.4under chapter 245D and this failure does not imminently endanger the health, safety, or 436.5rights of the persons served by the program, the commissioner may issue a licensing 436.6survey report with recommendations for achieving and maintaining compliance.436.7(b) Beginning July 1, 2015, a home care provider applicant or license holder may 436.8apply to the commissioner of health for a home and community-based services designation 436.9for the provision of basic support services identified under section 245D.03, subdivision 1, 436.10paragraph (b). The designation allows the license holder to provide basic support services 436.11that would otherwise require licensure under chapter 245D, under the license holder's 436.12home care license governed by sections 144A.43 to 144A.481.436.13    Subd. 2.Application for home and community-based services designation.An 436.14application for a home and community-based services designation must be made on the 436.15forms and in the manner prescribed by the commissioner. The commissioner shall provide 436.16the applicant with instruction for completing the application and provide information 436.17about the requirements of other state agencies that affect the applicant. Application for 436.18the home and community-based services designation is subject to the requirements under 436.19section 144A.473.436.20    Subd. 3.Home and community-based services designation fees.A home care 436.21provider applicant or licensee applying for the home and community-based services 436.22designation or renewal of a home and community-based services designation must submit 436.23a fee in the amount specified in subdivision 8.436.24    Subd. 4.Applicability of home and community-based services requirements.A 436.25home care provider with a home and community-based services designation must comply 436.26with the requirements for home care services governed by this chapter. For the provision 436.27of basic support services, the home care provider must also comply with the following 436.28home and community-based services licensing requirements:436.29(1) service planning and delivery requirements in section 245D.07;436.30(2) protection standards in section 245D.06;436.31(3) emergency use of manual restraints in section 245D.061; and436.32(4) protection-related rights in section 245D.04, subdivision 3, paragraph (a), clauses 436.33(5), (7), (8), (12), and (13), and paragraph (b).436.34A home care provider with the integrated license-home and community-based services 436.35designation may utilize a bill of rights which incorporates the service recipient rights in 437.1section 245D.04, subdivision 3, paragraph (a), clauses (5), (7), (8), (12), and (13), and 437.2paragraph (b) with the home care bill of rights in section 144A.44.437.3    Subd. 5.Monitoring and enforcement.(a) The commissioner shall monitor for 437.4compliance with the home and community-based services requirements identified in 437.5subdivision 4, in accordance with this section and any agreements by the commissioners 437.6of health and human services.437.7(b) The commissioner shall enforce compliance with applicable home and 437.8community-based services licensing requirements as follows:437.9(1) the commissioner may deny a home and community-based services designation 437.10in accordance with section 144A.473 or 144A.475; and437.11(2) if the commissioner finds that the applicant or license holder has failed to comply 437.12with the applicable home and community-based services designation requirements, the 437.13commissioner may issue:437.14(i) a correction order in accordance with section 144A.474;437.15(ii) an order of conditional license in accordance with section 144A.475;437.16(iii) a sanction in accordance with section 144A.475; or437.17(iv) any combination of clauses (i) to (iii).437.18    Subd. 6.Appeals.A home care provider applicant that has been denied a temporary 437.19license will also be denied their application for the home and community-based services 437.20designation. The applicant may request reconsideration in accordance with section 437.21144A.473, subdivision 3. A licensed home care provider whose application for a home 437.22and community-based services designation has been denied or whose designation has been 437.23suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a 437.24home and community-based services designation in accordance with section 144A.475. 437.25A license holder may request reconsideration of a correction order in accordance with 437.26section 144A.474, subdivision 12.437.27    Subd. 7.Agreements.The commissioners of health and human services shall enter 437.28into any agreements necessary to implement this section.437.29    Subd. 8.Fees; home and community-based services designation.(a) The 437.30initial fee for a home and community-based services designation is $155. A home care 437.31provider renewing the home and community-based services designation must pay an 437.32annual nonrefundable fee, in addition to the annual home care license fee, according to the 437.33following schedule and based on revenues from the home and community-based services 437.34that require licensure under chapter 245D during the calendar year immediately preceding 437.35the year in which the license fee is paid:

438.1438.2Provider Annual Revenue from HCBSHCBS Designation438.3greater than $1,500,000$320438.4greater than $1,275,000 and no more than $1,500,000$300438.5greater than $1,100,000 and no more than $1,275,000$280438.6greater than $950,000 and no more than $1,100,000$260438.7greater than $850,000 and no more than $950,000$240438.8greater than $750,000 and no more than $850,000$220438.9greater than $650,000 and no more than $750,000$200438.10greater than $550,000 and no more than $650,000$180438.11greater than $450,000 and no more than $550,000$160438.12greater than $350,000 and no more than $450,000$140438.13greater than $250,000 and no more than $350,000$120438.14greater than $100,000 and no more than $250,000$100438.15greater than $50,000 and no more than $100,000$80438.16greater than $25,000 and no more than $50,000$60438.17no more than $25,000$40

438.18(b) Fees and penalties collected under this section shall be deposited in the state 438.19treasury and credited to the state government special revenue fund.438.20EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8, 438.21are effective July 1, 2015.438.22    Sec. 5. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is 438.23amended to read:438.24    Subd. 2. Duties of director. The director of child sex trafficking prevention is 438.25responsible for the following:438.26    (1) developing and providing comprehensive training on sexual exploitation of 438.27youth for social service professionals, medical professionals, public health workers, and 438.28criminal justice professionals;438.29    (2) collecting, organizing, maintaining, and disseminating information on sexual 438.30exploitation and services across the state, including maintaining a list of resources on the 438.31Department of Health Web site;438.32    (3) monitoring and applying for federal funding for antitrafficking efforts that may 438.33benefit victims in the state;438.34    (4) managing grant programs established under sections 
         145.4716 to 
         145.4718;438.35    (5) managing the request for proposals for grants for comprehensive services, 438.36including trauma-informed, culturally specific services;439.1    (6) identifying best practices in serving sexually exploited youth, as defined in 439.2section 
         260C.007, subdivision 31;439.3    (6)(7) providing oversight of and technical support to regional navigators pursuant 439.4to section 
         145.4717;439.5    (7)(8) conducting a comprehensive evaluation of the statewide program for safe 439.6harbor of sexually exploited youth; and439.7    (8)(9) developing a policy consistent with the requirements of chapter 13 for sharing 439.8data related to sexually exploited youth, as defined in section 
         260C.007, subdivision 31, 439.9among regional navigators and community-based advocates.439.10    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is 439.11amended to read:439.12    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for 439.13Medicare and Medicaid Services determines that a provider is designated "high-risk," the 439.14commissioner may withhold payment from providers within that category upon initial 439.15enrollment for a 90-day period. The withholding for each provider must begin on the date 439.16of the first submission of a claim.439.17(b) An enrolled provider that is also licensed by the commissioner under chapter 439.18245A, or is also licensed as a home-care provider by the Department of Health under 439.19chapter 144A and has a home and community-based services designation on the home care 439.20license under section 144A.484,  must designate an individual as the entity's compliance 439.21officer. The compliance officer must:439.22(1) develop policies and procedures to assure adherence to medical assistance laws 439.23and regulations and to prevent inappropriate claims submissions;439.24(2) train the employees of the provider entity, and any agents or subcontractors of 439.25the provider entity including billers, on the policies and procedures under clause (1);439.26(3) respond to allegations of improper conduct related to the provision or billing of 439.27medical assistance services, and implement action to remediate any resulting problems;439.28(4) use evaluation techniques to monitor compliance with medical assistance laws 439.29and regulations;439.30(5) promptly report to the commissioner any identified violations of medical 439.31assistance laws or regulations; and439.32    (6) within 60 days of discovery by the provider of a medical assistance 439.33reimbursement overpayment, report the overpayment to the commissioner and make 439.34arrangements with the commissioner for the commissioner's recovery of the overpayment.440.1The commissioner may require, as a condition of enrollment in medical assistance, that a 440.2provider within a particular industry sector or category establish a compliance program that 440.3contains the core elements established by the Centers for Medicare and Medicaid Services.440.4(c) The commissioner may revoke the enrollment of an ordering or rendering 440.5provider for a period of not more than one year, if the provider fails to maintain and, upon 440.6request from the commissioner, provide access to documentation relating to written orders 440.7or requests for payment for durable medical equipment, certifications for home health 440.8services, or referrals for other items or services written or ordered by such provider, when 440.9the commissioner has identified a pattern of a lack of documentation. A pattern means a 440.10failure to maintain documentation or provide access to documentation on more than one 440.11occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a 440.12provider under the provisions of section 
         256B.064.440.13(d) The commissioner shall terminate or deny the enrollment of any individual or 440.14entity if the individual or entity has been terminated from participation in Medicare or 440.15under the Medicaid program or Children's Health Insurance Program of any other state.440.16(e) As a condition of enrollment in medical assistance, the commissioner shall 440.17require that a provider designated "moderate" or "high-risk" by the Centers for Medicare 440.18and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 440.19Services, its agents, or its designated contractors and the state agency, its agents, or its 440.20designated contractors to conduct unannounced on-site inspections of any provider location. 440.21The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 440.22list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 440.23and standards used to designate Medicare providers in Code of Federal Regulations, title 440.2442, section 
         424.518. The list and criteria are not subject to the requirements of chapter 14. 440.25The commissioner's designations are not subject to administrative appeal.440.26(f) As a condition of enrollment in medical assistance, the commissioner shall 440.27require that a high-risk provider, or a person with a direct or indirect ownership interest in 440.28the provider of five percent or higher, consent to criminal background checks, including 440.29fingerprinting, when required to do so under state law or by a determination by the 440.30commissioner or the Centers for Medicare and Medicaid Services that a provider is 440.31designated high-risk for fraud, waste, or abuse.440.32(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical 440.33equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in 440.34Minnesota and receiving Medicaid funds must purchase a surety bond that is annually 440.35renewed and designates the Minnesota Department of Human Services as the obligee, and 440.36must be submitted in a form approved by the commissioner.441.1(2) At the time of initial enrollment or reenrollment, the provider agency must 441.2purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 441.3in the previous calendar year is up to and including $300,000, the provider agency must 441.4purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 441.5in the previous calendar year is over $300,000, the provider agency must purchase a 441.6performance bond of $100,000. The performance bond must allow for recovery of costs 441.7and fees in pursuing a claim on the bond.441.8(h) The Department of Human Services may require a provider to purchase a 441.9performance surety bond as a condition of initial enrollment, reenrollment, reinstatement, 441.10or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the 441.11department determines there is significant evidence of or potential for fraud and abuse by 441.12the provider, or (3) the provider or category of providers is designated high-risk pursuant 441.13to paragraph (a) and as per Code of Federal Regulations, title 42, section 
         455.450. The 441.14performance bond must be in an amount of $100,000 or ten percent of the provider's 441.15payments from Medicaid during the immediately preceding 12 months, whichever is 441.16greater. The performance bond must name the Department of Human Services as an 441.17obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.441.18    Sec. 7. HEALTH CARE GRANTS FOR THE UNINSURED.441.19    Subdivision 1.Dental providers.(a) A dental provider is eligible for a grant under 441.20this section if the provider is:441.21(1) a nonprofit organization not affiliated with a hospital or medical group that 441.22offers free or reduced-cost oral health care to low-income patients with incomes below 441.23200 percent of the federal poverty guideline who do not have insurance coverage for 441.24oral health care services;441.25(2) eligible for critical access dental provider payments under Minnesota Statutes, 441.26section 256B.76, subdivision 4; and441.27(3) more than 80 percent of dental provider's patient encounters per year are with 441.28patients who are uninsured or covered by medical assistance or MinnesotaCare.441.29(b) Grants shall be distributed by the commissioner of health to each eligible 441.30provider based on the proportion of that provider's number of low-income uninsured 441.31patients served in the reporting year to the total number of low-income uninsured patients 441.32served by all eligible providers, except that no single eligible provider shall receive less 441.33than two percent or more than 30 percent of the total appropriation provided under this 441.34subdivision. If the number of eligible providers is such that the minimum of two percent 442.1cannot be provided to each eligible provider, the commissioner shall limit eligibility for 442.2the subsidy to the top 20 eligible oral health providers.442.3    Subd. 2.Community mental health programs.A community mental health 442.4program is eligible for a grant under this section if it is a community mental health center 442.5established under Minnesota Statutes, section 245.62, or a nonprofit community mental 442.6health clinic that is designated as an essential community provider under Minnesota 442.7Statutes, section 62Q.19, and the center or clinic offers free or reduced-cost mental health 442.8care to low-income patients with incomes below 200 percent of the federal poverty 442.9guideline who do not have health insurance coverage. The grants shall be distributed by 442.10the commissioner of health to each eligible mental health center or clinic based on the 442.11proportion of that mental health center's or clinic's number of low-income uninsured 442.12patients served in the reporting year to the total number of low-income uninsured patients 442.13served by all mental health centers and clinics eligible for a grant under this subdivision, 442.14except that no single eligible provider shall receive less than two percent or more than 30 442.15percent of the total appropriation provided under this subdivision.442.16    Subd. 3.Emergency medical assistance outlier grant program.(a) The 442.17commissioner of health shall establish a grant program for hospitals for the purposes of 442.18defraying underpayments associated with the emergency medical assistance program. 442.19Grants shall be made for the services provided between July 1, 2014, and June 30, 2015, 442.20to an individual who is enrolled in emergency medical assistance, and when emergency 442.21medical assistance reimbursement is in excess of $50,000.442.22(b) Hospitals seeking a grant from this program must submit an application that 442.23includes the number and dollar amount of hospital claims for emergency medical 442.24assistance in excess of $150,000 to the commissioner in a form prescribed by the 442.25commissioner. Grant payments shall be in proportion to the total hospital emergency 442.26medical assistance claims submitted by all applicant hospitals. Claims for inpatient 442.27hospital, outpatient services, and hospital emergency department services shall be 442.28considered when determining the value of the grants.442.29    Subd. 4.Grant process.The commissioner of health may use data submitted 442.30by organizations seeking a grant under this section, without further verification, for 442.31purposes of determining eligibility for a grant and allocating grant money among eligible 442.32organizations. The chief executive or chief financial officer must certify that the data 442.33submitted is accurate and that no changes were made in the organization's accounting and 442.34record-keeping practices or policies for providing free or reduced cost care to uninsured 442.35patients for the purpose of creating eligibility or increasing the organization's allocation. 442.36The commissioner may audit or verify the data submitted. Grant funds must be used to 443.1defray the organization's costs of providing care and services to uninsured patients with 443.2incomes below 200 percent of the federal poverty guidelines. An organization must not 443.3receive more than one grant under subdivisions 1, 2, or 3, even though the organization is 443.4potentially eligible for a grant under two or more subdivisions. Organizations eligible for 443.5a grant under this section may join together to submit a combined application provided the 443.6data submitted is certified by each individual organization.443.7    Sec. 8. QUALITY TRANSPARENCY.443.8(a) The commissioner of health shall develop an implementation plan for stratifying 443.9measures based on disability, race, ethnicity, language, and other sociodemographic factors 443.10that are correlated with health disparities and impact performance on quality measures.  443.11The plan must be designed so that quality measures can be stratified beginning January 1, 443.122017, in order to advance work aimed at identifying and eliminating health disparities.  443.13By January 15, 2015, the commissioner shall submit a report to the chairs and ranking 443.14minority members of the senate and house of representatives committees and divisions 443.15with jurisdiction on health and human services and finance with the plan, including an 443.16estimated budget, timeline, and processes to be used for implementation.443.17(b) The commissioner of health shall assess the risk adjustment methodology 443.18established under Minnesota Statutes, section 62U.02, subdivision 3, for the potential 443.19for harm and unintended consequences for patient populations who experience health 443.20disparities, and the providers who serve them, and identify changes that may be needed 443.21to alleviate harm and unintended consequences. By January 15, 2016, the commissioner 443.22shall submit a report to the chairs and ranking minority members of the senate and house 443.23of representatives committees and divisions with jurisdiction on health and human 443.24services and finance with  the result of the assessment of the risk-adjustment methodology 443.25and  any recommended changes.443.26(c) The commissioner shall develop the plan described in paragraph (a), in 443.27consultation with consumer, community and advocacy organizations representing diverse 443.28communities; health plan companies; providers; quality measurement organizations; and 443.29safety net providers that primarily serve communities and patient populations with health 443.30disparities.  The commissioner shall use culturally appropriate methods of consultation and 443.31engagement with consumer and advocacy organizations led by and representing diverse 443.32communities by race, ethnicity, language, and sociodemographic factors.443.33    Sec. 9. STUDY AND REPORT ABOUT CLIENT BILLS OF RIGHTS.444.1The commissioner of health shall consult with Aging Services of Minnesota, Care 444.2Providers of Minnesota, Minnesota Home Care Association, the commissioner of human 444.3services, the Office of the Ombudsman for Long-Term Care, and other stakeholders to 444.4evaluate and determine how to streamline the requirements related to the clients' rights in 444.5Minnesota Statutes, sections 144A.44, 144A.441, and 245D.04, for applicable providers, 444.6while assuring and maintaining the health and safety of clients. The evaluation must 444.7consider the federal client bill of rights requirements for Medicare-certified home care 444.8providers. The evaluation must determine if there are duplications or conflicts of client 444.9rights, evaluate how to reduce the complexity of the requirements related to clients' rights 444.10for providers and consumers, determine which rights must be included in a consolidated 444.11client bill of rights document, and develop options to inform consumers of their rights. 444.12The commissioner shall report to the chairs and ranking minority members of the health 444.13and human services committees of the legislature no later than February 15, 2015, and 444.14include any recommendations for legislative changes.444.15ARTICLE 21444.16PUBLIC ASSISTANCE SIMPLIFICATION444.17    Section 1. Minnesota Statutes 2012, section 254B.04, subdivision 3, is amended to read:444.18    Subd. 3. Amount of contribution. The commissioner shall adopt a sliding fee scale 444.19to determine the amount of contribution to be required from persons under this section. 444.20The commissioner may adopt rules to amend existing fee scales. The commissioner 444.21may establish a separate fee scale for recipients of chemical dependency transitional and 444.22extended care rehabilitation services that provides for the collection of fees for board and 444.23lodging expenses. The fee schedule shall ensure that employed persons are allowed the 444.24income disregards and savings accounts that are allowed residents of community mental 444.25illness facilities under section 256D.06, subdivisions subdivision 1 and 1b. The fee scale 444.26must not provide assistance to persons whose income is more than 115 percent of the 444.27state median income. Payments of liabilities under this section are medical expenses for 444.28purposes of determining spenddown under sections 
         256B.055, 
         256B.056, 
         256B.06, and 444.29256D.01
          to 
         256D.21. The required amount of contribution established by the fee scale in 444.30this subdivision is also the cost of care responsibility subject to collection under section 444.31254B.06, subdivision 1
         .444.32EFFECTIVE DATE.This section is effective October 1, 2015.444.33    Sec. 2. Minnesota Statutes 2012, section 256D.02, subdivision 8, is amended to read:445.1    Subd. 8. Income. "Income" means any form of income, including remuneration 445.2for services performed as an employee and net earnings earned income from rental 445.3income and self-employment earnings, reduced by the amount attributable to employment 445.4expenses as defined by the commissioner. The amount attributable to employment 445.5expenses shall include amounts paid or withheld for federal and state personal income 445.6taxes and federal Social Security taxes as described under section 256P.05.445.7Income includes any payments received as an annuity, retirement, or disability 445.8benefit, including veteran's or workers' compensation; old age, survivors, and disability 445.9insurance; railroad retirement benefits; unemployment benefits; and benefits under any 445.10federally aided categorical assistance program, supplementary security income, or other 445.11assistance program; rents, dividends, interest and royalties; and support and maintenance 445.12payments. Such payments may not be considered as available to meet the needs of any 445.13person other than the person for whose benefit they are received, unless that person is 445.14a family member or a spouse and the income is not excluded under section 
         256D.01, 445.15subdivision 1a
         . Goods and services provided in lieu of cash payment shall be excluded 445.16from the definition of income, except that payments made for room, board, tuition or 445.17fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary 445.18institution, and payments made on behalf of an applicant or recipient participant which 445.19the applicant or recipient participant could legally demand to receive personally in cash, 445.20must be included as income. Benefits of an applicant or recipient participant, such as those 445.21administered by the Social Security Administration, that are paid to a representative 445.22payee, and are spent on behalf of the applicant or recipient participant, are considered 445.23available income of the applicant or recipient participant.445.24EFFECTIVE DATE.This section is effective February 1, 2015.445.25    Sec. 3. Minnesota Statutes 2012, section 256D.02, subdivision 12, is amended to read:445.26    Subd. 12. County Agency."County agency" means the agency designated by the 445.27county board of commissioners, human services boards, local social services agencies 445.28in the several counties of the state or multicounty local social services agencies or 445.29departments where those have been established in accordance with law "Agency" has the 445.30meaning given in section 256P.01, subdivision 2.445.31    Sec. 4. Minnesota Statutes 2012, section 256D.05, subdivision 5, is amended to read:445.32    Subd. 5. Transfers of property. The equity value of real and personal property 445.33transferred without reasonable compensation within 12 months preceding the date of 445.34application for general assistance must be included in determining the resources of an 446.1assistance unit in the same manner as in the Minnesota family investment program under 446.2chapter 256J as described in section 256P.02, subdivision 1, paragraph (c).446.3EFFECTIVE DATE.This section is effective January 1, 2016.446.4    Sec. 5. Minnesota Statutes 2012, section 256D.06, subdivision 1, is amended to read:446.5    Subdivision 1. Eligibility; amount of assistance. General assistance shall be 446.6granted in an amount that when added to the nonexempt income actually available to the 446.7assistance unit, the total amount equals the applicable standard of assistance for general 446.8assistance. In determining eligibility for and the amount of assistance for an individual or 446.9married couple, the county agency shall apply the earned income disregard the first $50 of 446.10earned income per month as determined in section 256P.03.446.11EFFECTIVE DATE.This section is effective October 1, 2015.446.12    Sec. 6. Minnesota Statutes 2012, section 256D.08, subdivision 1, is amended to read:446.13    Subdivision 1. Eligibility; excluded resources.In determining eligibility of an 446.14assistance unit, the following resources shall be excluded:446.15(1) real or personal property or liquid assets which do not exceed $1,000; and446.16(2) other property which has been determined, according to limitations contained in 446.17rules promulgated by the commissioner, to be essential to the assistance unit as a means of 446.18self-support or self-care or which is producing income that is being used for the support 446.19of the assistance unit. The commissioner shall further provide by rule the conditions for 446.20those situations in which property not excluded under this subdivision may be retained by 446.21the assistance unit where there is a reasonable probability that in the foreseeable future the 446.22property will be used for the self-support of the assistance unit; and446.23(3) payments, made according to litigation and subsequent appropriation by the 446.24United States Congress, of funds to compensate members of Indian tribes for the taking of 446.25tribal land by the federal government. To establish eligibility for general assistance under 446.26this chapter, an agency must use the procedures established in section 256P.02.446.27EFFECTIVE DATE.This section is effective January 1, 2016.446.28    Sec. 7. Minnesota Statutes 2012, section 256D.08, is amended by adding a subdivision 446.29to read:446.30    Subd. 3.Verification. To verify eligibility for general assistance under this chapter, 446.31an agency must use the procedures established in section 256P.04.447.1EFFECTIVE DATE.This section is effective February 1, 2015.447.2    Sec. 8. Minnesota Statutes 2012, section 256D.10, is amended to read:447.3256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION.447.4No grant of general assistance except one made pursuant to section 
         256D.06, 447.5subdivision 2
         ; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended 447.6unless the recipient receives notice and is afforded an opportunity to be heard prior to 447.7any action by the county agency.447.8Nothing herein shall deprive a recipient of the right to full administrative and judicial 447.9review of an order or determination of a county agency as provided for in section 
         256.045447.10subsequent to any action taken by a county agency after a prior hearing.447.11EFFECTIVE DATE.This section is effective January 1, 2016.447.12    Sec. 9. Minnesota Statutes 2012, section 256D.405, subdivision 1, is amended to read:447.13    Subdivision 1. Verification of information.The county agency shall request, and 447.14applicants and recipients shall provide and verify, all information necessary to determine 447.15initial and continuing eligibility and assistance payment amounts. If necessary, the county 447.16agency shall assist the applicant or recipient in obtaining verifications. If the applicant or 447.17recipient refuses or fails without good cause to provide the information or verification, the 447.18county agency shall deny or terminate assistance An agency must apply section 256P.04 447.19when documenting, verifying, and recertifying eligibility under this chapter. An agency 447.20must only require verification of information necessary to determine eligibility under this 447.21chapter and the amount of the assistance payment.447.22EFFECTIVE DATE.This section is effective February 1, 2015.447.23    Sec. 10. Minnesota Statutes 2012, section 256D.405, subdivision 3, is amended to read:447.24    Subd. 3. Reports.Recipients Participants must report changes in circumstances that 447.25affect eligibility or assistance payment amounts within ten days of the change. Recipients447.26 Participants who do not receive SSI because of excess income must complete a monthly 447.27report form if they have earned income, if they have income deemed to them from a 447.28financially responsible relative with whom the recipient participant resides, or if they have 447.29income deemed to them by a sponsor. If the report form is not received before the end of 447.30the month in which it is due, the county agency must terminate assistance. The termination 447.31shall be effective on the first day of the month following the month in which the report 447.32was due. If a complete report is received within the month the assistance was terminated, 448.1the assistance unit is considered to have continued its application for assistance, effective 448.2the first day of the month the assistance was terminated.448.3EFFECTIVE DATE.This section is effective February 1, 2015.448.4    Sec. 11. Minnesota Statutes 2012, section 256D.425, subdivision 2, is amended to read:448.5    Subd. 2. Resource standards.(a) For persons receiving supplemental security 448.6income benefits, the resource standards and restrictions for supplemental aid under 448.7this section shall be those used to determine eligibility for disabled individuals in the 448.8supplemental security income program.448.9(b) For persons not receiving supplemental security income benefits due to excess 448.10income or resources, but whose income and resources are within the limits of the Minnesota 448.11supplemental aid program, the resource standards shall be those in section 256P.02.448.12EFFECTIVE DATE.This section is effective January 1, 2016.448.13    Sec. 12. Minnesota Statutes 2012, section 256I.03, is amended by adding a subdivision 448.14to read:448.15    Subd. 1a.Agency."Agency" has the meaning given in section 256P.01, subdivision 448.162.448.17    Sec. 13. Minnesota Statutes 2012, section 256I.04, subdivision 1, is amended to read:448.18    Subdivision 1. Individual eligibility requirements. An individual is eligible for 448.19and entitled to a group residential housing payment to be made on the individual's behalf 448.20if the county agency has approved the individual's residence in a group residential housing 448.21setting and the individual meets the requirements in paragraph (a) or (b).448.22(a) The individual is aged, blind, or is over 18 years of age and disabled as 448.23determined under the criteria used by the title II program of the Social Security Act, and 448.24meets the resource restrictions and standards of the supplemental security income program448.25 section 256P.02, and the individual's countable income after deducting the (1) exclusions 448.26and disregards of the SSI program, (2) the medical assistance personal needs allowance 448.27under section 
         256B.35, and (3) an amount equal to the income actually made available to 448.28a community spouse by an elderly waiver recipient participant under the provisions of 448.29sections 
         256B.0575, paragraph (a), clause (4), and 
         256B.058, subdivision 2, is less than 448.30the monthly rate specified in the county agency's agreement with the provider of group 448.31residential housing in which the individual resides.449.1(b) The individual meets a category of eligibility under section 
         256D.05, subdivision 449.21
         , paragraph (a), and the individual's resources are less than the standards specified by 449.3section 
         256D.08 256P.02, and the individual's countable income as determined under 449.4sections 
         256D.01 to 
         256D.21, less the medical assistance personal needs allowance under 449.5section 
         256B.35 is less than the monthly rate specified in the county agency's agreement 449.6with the provider of group residential housing in which the individual resides.449.7EFFECTIVE DATE.This section is effective January 1, 2016.449.8    Sec. 14. Minnesota Statutes 2012, section 256J.08, is amended by adding a subdivision 449.9to read:449.10    Subd. 2a.Agency."Agency" has the meaning given in section 256P.01, subdivision 449.112.449.12    Sec. 15. Minnesota Statutes 2012, section 256J.08, subdivision 47, is amended to read:449.13    Subd. 47. Income. "Income" means cash or in-kind benefit, whether earned or 449.14unearned, received by or available to an applicant or participant that is not an asset449.15 property under section 
         256J.20 256P.02.449.16EFFECTIVE DATE.This section is effective January 1, 2016.449.17    Sec. 16. Minnesota Statutes 2012, section 256J.08, subdivision 57, is amended to read:449.18    Subd. 57. Minnesota family investment program or MFIP. "Minnesota family 449.19investment program" or "MFIP" means the assistance program authorized in this chapter 449.20and chapter 256K.449.21    Sec. 17. Minnesota Statutes 2012, section 256J.08, subdivision 83, is amended to read:449.22    Subd. 83. Significant change. "Significant change" means a decline in gross 449.23income of the amount of the disregard as defined in subdivision 24 section 256P.03 or 449.24more from the income used to determine the grant for the current month.449.25EFFECTIVE DATE.This section is effective January 1, 2015.449.26    Sec. 18. Minnesota Statutes 2012, section 256J.10, is amended to read:449.27256J.10 MFIP ELIGIBILITY REQUIREMENTS.450.1To be eligible for MFIP, applicants must meet the general eligibility requirements 450.2in sections 
         256J.11 to 
         256J.15, the property limitations in section 
         256J.20 256P.02, and 450.3the income limitations in section 
         256J.21.450.4EFFECTIVE DATE.This section is effective January 1, 2016.450.5    Sec. 19. Minnesota Statutes 2013 Supplement, section 256J.21, subdivision 3, is 450.6amended to read:450.7    Subd. 3. Initial income test. The county agency shall determine initial eligibility 450.8by considering all earned and unearned income that is not excluded under subdivision 2. 450.9To be eligible for MFIP, the assistance unit's countable income minus the earned income 450.10disregards in paragraphs paragraph (a) and (b) section 256P.03 must be below the family 450.11wage level according to section 
         256J.24 for that size assistance unit.450.12(a) The initial eligibility determination must disregard the following items:450.13(1) the employment earned income disregard is 18 percent of the gross earned 450.14income whether or not the member is working full time or part time as determined in 450.15section 256P.03;450.16(2) dependent care costs must be deducted from gross earned income for the actual 450.17amount paid for dependent care up to a maximum of $200 per month for each child less 450.18than two years of age, and $175 per month for each child two years of age and older under 450.19this chapter and chapter 119B;450.20(3) all payments made according to a court order for spousal support or the support 450.21of children not living in the assistance unit's household shall be disregarded from the 450.22income of the person with the legal obligation to pay support, provided that, if there has 450.23been a change in the financial circumstances of the person with the legal obligation to pay 450.24support since the support order was entered, the person with the legal obligation to pay 450.25support has petitioned for a modification of the support order; and450.26(4) an allocation for the unmet need of an ineligible spouse or an ineligible child 450.27under the age of 21 for whom the caregiver is financially responsible and who lives with 450.28the caregiver according to section 
         256J.36.450.29(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant 450.30units when at least one member has received MFIP in this state within four months of 450.31the most recent application for MFIP, apply the disregard as defined in section 256J.08, 450.32subdivision 24, for all unit members.450.33After initial eligibility is established, the assistance payment calculation is based on 450.34the monthly income test.451.1EFFECTIVE DATE.This section is effective October 1, 2015.451.2    Sec. 20. Minnesota Statutes 2012, section 256J.21, subdivision 4, is amended to read:451.3    Subd. 4. Monthly income test and determination of assistance payment.451.4The county agency shall determine ongoing eligibility and the assistance payment 451.5amount according to the monthly income test. To be eligible for MFIP, the result of the 451.6computations in paragraphs (a) to (e) must be at least $1.451.7(a) Apply an income disregard as defined in section 
         256J.08, subdivision 24 256P.03, 451.8to gross earnings and subtract this amount from the family wage level. If the difference is 451.9equal to or greater than the MFIP transitional standard of need, the assistance payment is 451.10equal to the MFIP transitional standard of need. If the difference is less than the MFIP 451.11transitional standard of need, the assistance payment is equal to the difference. The 451.12employment earned income disregard in this paragraph must be deducted every month 451.13there is earned income.451.14(b) All payments made according to a court order for spousal support or the support 451.15of children not living in the assistance unit's household must be disregarded from the 451.16income of the person with the legal obligation to pay support, provided that, if there has 451.17been a change in the financial circumstances of the person with the legal obligation to pay 451.18support since the support order was entered, the person with the legal obligation to pay 451.19support has petitioned for a modification of the court order.451.20(c) An allocation for the unmet need of an ineligible spouse or an ineligible child 451.21under the age of 21 for whom the caregiver is financially responsible and who lives with 451.22the caregiver must be made according to section 
         256J.36.451.23(d) Subtract unearned income dollar for dollar from the MFIP transitional standard 451.24of need to determine the assistance payment amount.451.25(e) When income is both earned and unearned, the amount of the assistance payment 451.26must be determined by first treating gross earned income as specified in paragraph (a). 451.27After determining the amount of the assistance payment under paragraph (a), unearned 451.28income must be subtracted from that amount dollar for dollar to determine the assistance 451.29payment amount.451.30(f) When the monthly income is greater than the MFIP transitional standard of need451.31 after deductions and the income will only exceed the standard for one month, the county 451.32agency must suspend the assistance payment for the payment month.451.33EFFECTIVE DATE.This section is effective October 1, 2015.451.34    Sec. 21. Minnesota Statutes 2012, section 256J.30, subdivision 4, is amended to read:452.1    Subd. 4. Participant's completion of recertification of eligibility form. A 452.2participant must complete forms prescribed by the commissioner which are required 452.3for recertification of eligibility according to section 
         256J.32, subdivision 6 256P.04, 452.4subdivisions 8 and 9.452.5EFFECTIVE DATE.This section is effective February 1, 2015.452.6    Sec. 22. Minnesota Statutes 2013 Supplement, section 256J.30, subdivision 9, is 452.7amended to read:452.8    Subd. 9. Changes that must be reported. A caregiver must report the changes 452.9or anticipated changes specified in clauses (1) to (16) (15) within ten days of the date 452.10they occur, at the time of the periodic recertification of eligibility under section 
         256J.32, 452.11subdivision 6 256P.04, subdivisions 8 and 9, or within eight calendar days of a reporting 452.12period as in subdivision 5, whichever occurs first. A caregiver must report other changes 452.13at the time of the periodic recertification of eligibility under section 
         256J.32, subdivision 452.146 256P.04, subdivisions 8 and 9, or at the end of a reporting period under subdivision 452.155, as applicable. A caregiver must make these reports in writing to the county agency. 452.16When a county an agency could have reduced or terminated assistance for one or more 452.17payment months if a delay in reporting a change specified under clauses (1) to (15) (14)452.18 had not occurred, the county agency must determine whether a timely notice under section 452.19256J.31, subdivision 4
         , could have been issued on the day that the change occurred. When 452.20a timely notice could have been issued, each month's overpayment subsequent to that 452.21notice must be considered a client error overpayment under section 
         256J.38. Calculation 452.22of overpayments for late reporting under clause (16) (15) is specified in section 
         256J.09, 452.23subdivision 9
         . Changes in circumstances which must be reported within ten days must 452.24also be reported on the MFIP household report form for the reporting period in which 452.25those changes occurred. Within ten days, a caregiver must report:452.26(1) a change in initial employment;452.27(2) a change in initial receipt of unearned income;452.28(3) a recurring change in unearned income;452.29(4) a nonrecurring change of unearned income that exceeds $30;452.30(5) the receipt of a lump sum;452.31(6) an increase in assets that may cause the assistance unit to exceed asset limits;452.32(7) a change in the physical or mental status of an incapacitated member of the 452.33assistance unit if the physical or mental status is the basis for reducing the hourly 452.34participation requirements under section 
         256J.55, subdivision 1, or the type of activities 452.35included in an employment plan under section 
         256J.521, subdivision 2;453.1(8) a change in employment status;453.2(9) information affecting an exception under section 256J.24, subdivision 9;453.3(10) (9) the marriage or divorce of an assistance unit member;453.4(11) (10) the death of a parent, minor child, or financially responsible person;453.5(12) (11) a change in address or living quarters of the assistance unit;453.6(13) (12) the sale, purchase, or other transfer of property;453.7(14) (13) a change in school attendance of a caregiver under age 20 or an employed 453.8child;453.9(15) (14) filing a lawsuit, a workers' compensation claim, or a monetary claim 453.10against a third party; and453.11(16) (15) a change in household composition, including births, returns to and 453.12departures from the home of assistance unit members and financially responsible persons, 453.13or a change in the custody of a minor child.453.14EFFECTIVE DATE.This section is effective January 1, 2015.453.15    Sec. 23. Minnesota Statutes 2012, section 256J.32, subdivision 1, is amended to read:453.16    Subdivision 1. Verification of information.A county An agency must apply section 453.17256P.04 when documenting, verifying, and recertifying MFIP eligibility. An agency must 453.18only require verification of information necessary to determine MFIP eligibility and the 453.19amount of the assistance payment.453.20EFFECTIVE DATE.This section is effective February 1, 2015.453.21    Sec. 24. Minnesota Statutes 2012, section 256J.33, subdivision 2, is amended to read:453.22    Subd. 2. Prospective eligibility.A county An agency must determine whether the 453.23eligibility requirements that pertain to an assistance unit, including those in sections 453.24256J.11
          to 
         256J.15 and 
         256J.20 256P.02, will be met prospectively for the payment 453.25month. Except for the provisions in section 
         256J.34, subdivision 1, the income test will be 453.26applied retrospectively.453.27EFFECTIVE DATE.This section is effective January 1, 2016.453.28    Sec. 25. Minnesota Statutes 2012, section 256J.37, as amended by Laws 2013, chapter 453.29107, article 4, section 15, is amended to read:453.30256J.37 TREATMENT OF INCOME AND LUMP SUMS.454.1    Subdivision 1. Deemed income from ineligible household assistance unit454.2 members.Unless otherwise provided under subdivision 1a or 1b, The income of ineligible 454.3household assistance unit members must be deemed after allowing the following disregards:454.4(1) the first 18 percent of the ineligible family member's gross an earned income454.5 disregard as determined under section 256P.03;454.6(2) amounts the ineligible person actually paid to individuals not living in the 454.7same household but whom the ineligible person claims or could claim as dependents for 454.8determining federal personal income tax liability;454.9(3) (2) all payments made by the ineligible person according to a court order for 454.10spousal support or the support of children not living in the assistance unit's household, 454.11provided that, if there has been a change in the financial circumstances of the ineligible 454.12person since the support order was entered, the ineligible person has petitioned for a 454.13modification of the support order; and454.14(4) (3) an amount for the unmet needs of the ineligible person and other persons 454.15who live in the household but are not included in the assistance unit and are or could be 454.16claimed by an ineligible person as dependents for determining federal personal income 454.17tax liability who, if eligible, would be assistance unit members under section 256J.24, 454.18subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the 454.19MFIP transitional standard of need when the ineligible person is persons are included in 454.20the assistance unit and the MFIP transitional standard of need when the ineligible person 454.21is persons are not included in the assistance unit.454.22    Subd. 1a. Deemed income from disqualified assistance unit members. The 454.23income of disqualified members must be deemed after allowing the following disregards:454.24(1) the first 18 percent of the disqualified member's gross an earned income disregard 454.25as determined under section 256P.03;454.26(2) amounts the disqualified member actually paid to individuals not living in the 454.27same household but whom the disqualified member claims or could claim as dependents 454.28for determining federal personal income tax liability;454.29(3) (2) all payments made by the disqualified member according to a court order for 454.30spousal support or the support of children not living in the assistance unit's household, 454.31provided that, if there has been a change in the financial circumstances of the disqualified 454.32member's legal obligation to pay support since the support order was entered, the 454.33disqualified member has petitioned for a modification of the support order; and454.34(4) (3) an amount for the unmet needs of other ineligible persons who live in the 454.35household but are not included in the assistance unit and are or could be claimed by the 454.36disqualified member as dependents for determining federal personal income tax liability455.1 who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or 455.24, paragraph (b). This amount is equal to the difference between the MFIP transitional 455.3standard of need when the ineligible person is persons are included in the assistance unit 455.4and the MFIP transitional standard of need when the ineligible person is persons are455.5 not included in the assistance unit. An amount shall not be allowed for the needs of a455.6 disqualified member members.455.7    Subd. 1b. Deemed income from parents of minor caregivers. In households 455.8where minor caregivers live with a parent or parents who do not receive MFIP for 455.9themselves or their minor children, the income of the parents must be deemed after 455.10allowing the following disregards:455.11(1) income of the parents equal to 200 percent of the federal poverty guideline for a 455.12family size not including the minor parent and the minor parent's child in the household 455.13according to section 
         256J.21, subdivision 2, clause (43); and455.14(2) 18 percent of the parents' gross earned income;455.15(3) amounts the parents actually paid to individuals not living in the same household 455.16but whom the parents claim or could claim as dependents for determining federal personal 455.17income tax liability; and455.18(4) (2) all payments made by parents according to a court order for spousal support 455.19or the support of children not living in the parent's household, provided that, if there has 455.20been a change in the financial circumstances of the parent's legal obligation to pay support 455.21since the support order was entered, the parents have petitioned for a modification of 455.22the support order.455.23    Subd. 2. Deemed income and assets of sponsor of noncitizens. (a) If a noncitizen 455.24applies for or receives MFIP, the county agency must deem the income and assets of the 455.25noncitizen's sponsor and the sponsor's spouse as provided in this paragraph and paragraph 455.26(b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor's 455.27spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor 455.28and the sponsor's spouse are considered available assets of the noncitizen.455.29(b) The income and assets of a sponsor who signed an affidavit of support under title 455.30IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and 455.31Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor's 455.32spouse, must be deemed to the noncitizen to the extent required by those sections of 455.33Public Law 104-193.455.34(c) The income and assets of a sponsor and the sponsor's spouse to whom the 455.35provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full 456.1extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget 456.2Act of 1997.456.3    Subd. 3. Earned income of wage, salary, and contractual employees. The county456.4 agency must include gross earned income less any disregards in the initial and monthly 456.5income test. Gross earned income received by persons employed on a contractual basis 456.6must be prorated over the period covered by the contract even when payments are received 456.7over a lesser period of time.456.8    Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the 456.9county agency shall count $50 of the value of public and assisted rental subsidies provided 456.10through the Department of Housing and Urban Development (HUD) as unearned income 456.11to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 456.12unearned income when the subsidy is less than $50. The income from this subsidy shall 456.13be budgeted according to section 
         256J.34.456.14(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 456.15which includes a participant who is:456.16(1) age 60 or older;456.17(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 456.18certified by a qualified professional when the illness, injury, or incapacity is expected 456.19to continue for more than 30 days and severely limits the person's ability to obtain or 456.20maintain suitable employment; or456.21(3) a caregiver whose presence in the home is required due to the illness or 456.22incapacity of another member in the assistance unit, a relative in the household, or a foster 456.23child in the household when the illness or incapacity and the need for the participant's 456.24presence in the home has been certified by a qualified professional and is expected to 456.25continue for more than 30 days.456.26(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 456.27where the parental caregiver is an SSI recipient participant.456.28    Subd. 4. Self-employment.Self-employed individuals are those who are 456.29responsible for their own work schedule and do not have coverage under an employer's 456.30liability insurance or workers' compensation. Self-employed individuals generally work 456.31for themselves rather than an employer. However, individuals employed in some types of 456.32services may be self-employed even if they have an employer or work out of another's 456.33business location. For example, real estate sales people, individuals who work for 456.34commission sales, manufacturer's representatives, and independent contractors may be 456.35self-employed. Self-employed individuals may or may not have FICA deducted from the 456.36check issued to them by an employer or another party.457.1Self-employed individuals may own a business singularly or in partnership. 457.2Individuals operating more than one self-employment business may use the loss from 457.3one business to offset self-employment income from another business. A loss from a 457.4self-employment business may not offset income earned under subdivision 3.457.5Self-employment has the meaning given in section 256P.01, subdivision 7.457.6    Subd. 5. Self-employment earnings. The county agency must determine 457.7self-employment income according to the following: section 256P.05, subdivision 2.457.8(a) Subtract allowable business expenses from total gross receipts. Allowable 457.9business expenses include:457.10(1) interest on mortgages and loans;457.11(2) employee wages, except for persons who are part of the assistance unit or whose 457.12income is deemed to the participant;457.13(3) FICA funds paid on employees' wages, payment of employee workers' 457.14compensation, and unemployment benefits;457.15(4) livestock and veterinary or breeding fees;457.16(5) raw material;457.17(6) seed and fertilizer;457.18(7) maintenance and repairs that are not capital expenditures;457.19(8) tax return preparation fees;457.20(9) license fees, professional fees, franchise fees, and professional dues;457.21(10) tools and supplies that are not capital expenditures;457.22(11) fuel and transportation expenses other than fuel costs covered by the flat rate 457.23transportation deduction;457.24(12) advertising costs;457.25(13) meals eaten when required to be away from the local work site;457.26(14) property expenses such as rent, insurance, taxes, and utilities;457.27(15) postage;457.28(16) purchase cost of inventory at time of sale;457.29(17) loss from another self-employment business;457.30(18) attorney fees allowed by the Internal Revenue Service; and457.31(19) tuition for classes necessary to maintain or improve job skills or required by 457.32law to maintain job status or salary as allowed by the Internal Revenue Service.457.33(b) The county agency shall not allow a deduction for the following expenses:457.34(1) purchases of capital assets;457.35(2) payments on the principals of loans for capital assets;457.36(3) depreciation;458.1(4) amortization;458.2(5) the wholesale costs of items purchased, processed, or manufactured which are 458.3unsold inventory;458.4(6) transportation costs that exceed the maximum standard mileage rate allowed for 458.5use of a personal car in the Internal Revenue Code;458.6(7) costs, in any amount, for mileage between an applicant's or participant's home 458.7and place of employment;458.8(8) salaries and other employment deductions made for members of an assistance 458.9unit or persons who live in the household for whom an employer is legally responsible;458.10(9) monthly expenses in excess of $71 for each roomer;458.11(10) monthly expenses in excess of the Thrifty Food Plan amount for one person for 458.12each boarder. For purposes of this clause and clause (11), "Thrifty Food Plan" has the 458.13meaning given it in Code of Federal Regulations;458.14(11) monthly expenses in excess of the roomer rate plus the Thrifty Food Plan 458.15amount for one person for each roomer-boarder. If there is more than one boarder or 458.16roomer-boarder, use the total number of boarders as the unit size to determine the Thrifty 458.17Food Plan amount;458.18(12) an amount greater than actual expenses or two percent of the estimated market 458.19value on a county tax assessment form, whichever is greater, as a deduction for upkeep 458.20and repair against rental income;458.21(13) expenses not allowed by the Internal Revenue Code;458.22(14) expenses in excess of 60 percent of gross receipts for in-home child care unless 458.23a higher amount can be documented; and458.24(15) expenses that are reimbursed under the child and adult care food program as 458.25authorized under the National School Lunch Act, United States Code, title 42.458.26    Subd. 6. Self-employment budget period.The self-employment budget period 458.27begins in the month of application or in the first month of self-employment. Gross receipts 458.28must be budgeted in the month received. Expenses must be budgeted against gross 458.29receipts in the month the expenses are paid, except for paragraphs (a) to (c).458.30(a) The purchase cost of inventory items, including materials which are processed 458.31or manufactured, must be deducted as an expense at the time payment is received for 458.32the sale of the inventory items.458.33(b) A 12-month rolling average based on clauses (1) to (3) must be used to budget 458.34monthly income.458.35(1) For a business in operation for at least 12 months, the county agency shall use 458.36the average monthly self-employment income from the most current income tax report for 459.1the 12 months before the month of application. The county agency shall determine a new 459.2monthly average by adding in the actual self-employment income and expenses from the 459.3previous month and dropping the first month from the averaging period.459.4(2) For a business in operation for less than 12 months, the county agency shall 459.5compute the average for the number of months the business has been in operation to 459.6determine a monthly average. When data are available for 12 or more months, average 459.7monthly self-employment income is determined under clause (1).459.8(3) If the business undergoes a major change, the county agency shall compute a new 459.9rolling average beginning with the first month of the major change. For the purpose of this 459.10clause, major change means a change that affects the nature and scale of the business and 459.11is not merely the result of normal business fluctuations.459.12(c) For seasonal self-employment, the caregiver may choose whether to use actual 459.13income in the month of receipt and expenses in the month incurred or the rolling average 459.14method of computation. The choice must be made once per year at the time of application 459.15or recertification. For the purpose of this paragraph, seasonal means working six or less 459.16months per year.459.17The agency must budget self-employment earned income according to section 459.18256P.05, subdivision 3.459.19    Subd. 7. Farm income.Farm income is the difference between gross receipts 459.20and operating expenses. The county agency must not allow a deduction for expenses 459.21listed in subdivision 5, paragraph (b). Gross receipts include sales, rents, subsidies, 459.22soil conservation payments, production derived from livestock, and income from 459.23home-produced food Farm income shall be treated as self-employment income under 459.24section 256P.05, subdivision 2. The agency must budget farm income as self-employment 459.25earned income according to section 256P.05, subdivision 3.459.26    Subd. 8. Rental income.The county agency must treat income from rental property 459.27as earned or unearned income. Income from rental property is unearned income unless the 459.28assistance unit spends an average of ten hours per week on maintenance or management 459.29of the property. When the owner spends more than ten hours per week on maintenance 459.30or repairs, the earnings are considered self-employment earnings. An amount must be 459.31deducted for upkeep and repairs, as specified in subdivision 5, paragraph (b), clause 459.32(12), real estate taxes, insurance, utilities, and interest on principal payments. When the 459.33applicant or participant lives on the rental property, expenses for upkeep, taxes, insurance, 459.34utilities, and interest must be divided by the number of rooms to determine expense per 459.35room and expenses deducted must be deducted only for the number of rooms rented459.36 Rental income is subject to the requirements of section 256P.05.460.1    Subd. 9. Unearned income. (a) The county agency must apply unearned income 460.2to the MFIP transitional standard of need. When determining the amount of unearned 460.3income, the county agency must deduct the costs necessary to secure payments of 460.4unearned income. These costs include legal fees, medical fees, and mandatory deductions 460.5such as federal and state income taxes.460.6(b) The county agency must convert unearned income received on a periodic basis to 460.7monthly amounts by prorating the income over the number of months represented by the 460.8frequency of the payments. The county agency must begin counting the monthly amount 460.9in the month the periodic payment is received and budget it according to the assistance 460.10unit's budget cycle.460.11    Subd. 10. Treatment of lump sums. (a) The county agency must treat lump-sum 460.12payments as earned or unearned income. If the lump-sum payment is included in the 460.13category of income identified in subdivision 9, it must be treated as unearned income. A 460.14lump sum is counted as income in the month received and budgeted either prospectively or 460.15retrospectively depending on the budget cycle at the time of receipt. When an individual 460.16receives a lump-sum payment, that lump sum must be combined with all other earned and 460.17unearned income received in the same budget month, and it must be applied according to 460.18paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any 460.19funds that remain in the third month after the month of receipt are counted in the asset limit.460.20(b) For a lump sum received by an applicant during the first two months, prospective 460.21budgeting is used to determine the payment and the lump sum must be combined with 460.22other earned or unearned income received and budgeted in that prospective month.460.23(c) For a lump sum received by a participant after the first two months of MFIP 460.24eligibility, the lump sum must be combined with other income received in that budget 460.25month, and the combined amount must be applied retrospectively against the applicable 460.26payment month.460.27(d) When a lump sum, combined with other income under paragraphs (b) and (c), is 460.28less than the MFIP transitional standard of need for the appropriate payment month, the 460.29assistance payment must be reduced according to the amount of the countable income. 460.30When the countable income is greater than the MFIP standard or family wage level, the 460.31assistance payment must be suspended for the payment month.460.32EFFECTIVE DATE.The amendments to subdivisions 1, 1a, 1b, and 2 are effective 460.33October 1, 2015. The amendments to subdivisions 4, 5, 6, 7, and 8 are effective February 460.341, 2015. The amendments to subdivisions 9 and 10 are effective January 1, 2015.460.35    Sec. 26. Minnesota Statutes 2012, section 256J.425, subdivision 1, is amended to read:461.1    Subdivision 1. Eligibility. (a) To be eligible for a hardship extension, a participant 461.2in an assistance unit subject to the time limit under section 
         256J.42, subdivision 1, must 461.3be in compliance in the participant's 60th counted month. For purposes of determining 461.4eligibility for a hardship extension, a participant is in compliance in any month that the 461.5participant has not been sanctioned. In order to maintain eligibility for any of the hardship 461.6extension categories a participant shall develop and comply with either an employment 461.7plan or a family stabilization services plan, whichever is appropriate.461.8    (b) If one participant in a two-parent assistance unit is determined to be ineligible for 461.9a hardship extension, the county shall give the assistance unit the option of disqualifying 461.10the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 461.11one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using 461.12the shared household standard under section 256J.08, subdivision 82a.461.13    (c) Prior to denying an extension, the county must review the sanction status and 461.14determine whether the sanction is appropriate or if good cause exists under section 
         256J.57. 461.15If the sanction was inappropriately applied or the participant is granted a good cause 461.16exception before the end of month 60, the participant shall be considered for an extension.461.17EFFECTIVE DATE.This section is effective January 1, 2015.461.18    Sec. 27. Minnesota Statutes 2012, section 256J.425, subdivision 7, is amended to read:461.19    Subd. 7. Status of disqualified participants. (a) An assistance unit that is 461.20disqualified under subdivision 6, paragraph (a), may be approved for MFIP if the 461.21participant complies with MFIP program requirements and demonstrates compliance for 461.22up to one month. No assistance shall be paid during this period.461.23(b) An assistance unit that is disqualified under subdivision 6, paragraph (a), and that 461.24reapplies under paragraph (a) is subject to sanction under section 
         256J.46, subdivision 461.251
         , paragraph (c), clause (1), for a first occurrence of noncompliance. A subsequent 461.26occurrence of noncompliance results in a permanent disqualification.461.27(c) If one participant in a two-parent assistance unit receiving assistance under a 461.28hardship extension under subdivision 3 or 4 is determined to be out of compliance with 461.29the employment and training services requirements under sections 
         256J.521 to 
         256J.57, 461.30the county shall give the assistance unit the option of disqualifying the noncompliant 461.31participant from MFIP. In that case, the assistance unit shall be treated as a one-parent 461.32assistance unit for the purposes of meeting the work requirements under subdivision 461.334 and the assistance unit's MFIP grant shall be calculated using the shared household 461.34standard under section 256J.08, subdivision 82a. An applicant who is disqualified 461.35from receiving assistance under this paragraph may reapply under paragraph (a). If a 462.1participant is disqualified from MFIP under this subdivision a second time, the participant 462.2is permanently disqualified from MFIP.462.3(d) Prior to a disqualification under this subdivision, a county agency must review 462.4the participant's case to determine if the employment plan is still appropriate and attempt 462.5to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the 462.6county agency must send the participant a notice of adverse action as provided in section 462.7256J.31
         . During the face-to-face meeting, the county agency must:462.8(1) determine whether the continued noncompliance can be explained and mitigated 462.9by providing a needed preemployment activity, as defined in section 
         256J.49, subdivision 462.1013
         , clause (9);462.11(2) determine whether the participant qualifies for a good cause exception under 462.12section 
         256J.57;462.13(3) inform the participant of the family violence waiver criteria and make appropriate 462.14referrals if the waiver is requested;462.15(4) inform the participant of the participant's sanction status and explain the 462.16consequences of continuing noncompliance;462.17(5) identify other resources that may be available to the participant to meet the 462.18needs of the family; and462.19(6) inform the participant of the right to appeal under section 
         256J.40.462.20EFFECTIVE DATE.This section is effective January 1, 2015.462.21    Sec. 28. Minnesota Statutes 2012, section 256J.95, subdivision 8, is amended to read:462.22    Subd. 8. Verification requirements. (a) A county agency must only require 462.23verification of information necessary to determine DWP eligibility and the amount of 462.24the payment. The applicant or participant must document the information required or 462.25authorize the county agency to verify the information. The applicant or participant has the 462.26burden of providing documentary evidence to verify eligibility. The county agency shall 462.27assist the applicant or participant in obtaining required documents when the applicant 462.28or participant is unable to do so.462.29(b) A county agency must not request information about an applicant or participant 462.30that is not a matter of public record from a source other than county agencies, the 462.31Department of Human Services, or the United States Department of Health and Human 462.32Services without the person's prior written consent. An applicant's signature on an 462.33application form constitutes consent for contact with the sources specified on the 462.34application. A county agency may use a single consent form to contact a group of similar 463.1sources, but the sources to be contacted must be identified by the county agency prior to 463.2requesting an applicant's consent.463.3(c) Factors to be verified shall follow section 256J.32, subdivision 256P.04, 463.4subdivisions 4 and 5. Except for personal needs, family maintenance needs must be 463.5verified before the expense can be allowed in the calculation of the DWP grant.463.6EFFECTIVE DATE.This section is effective February 1, 2015.463.7    Sec. 29. Minnesota Statutes 2012, section 256J.95, subdivision 9, is amended to read:463.8    Subd. 9. Property and income limitations. The asset limits and exclusions in 463.9section 
         256J.20 256P.02 apply to applicants and recipients participants of DWP. All 463.10payments, unless excluded in section 
         256J.21, must be counted as income to determine 463.11eligibility for the diversionary work program. The county agency shall treat income as 463.12outlined in section 
         256J.37, except for subdivision 3a. The initial income test and the 463.13disregards in section 
         256J.21, subdivision 3, shall be followed for determining eligibility 463.14for the diversionary work program.463.15EFFECTIVE DATE.This section is effective January 1, 2016.463.16    Sec. 30. Minnesota Statutes 2012, section 256J.95, subdivision 10, is amended to read:463.17    Subd. 10. Diversionary work program grant. (a) The amount of cash benefits that 463.18a family unit is eligible for under the diversionary work program is based on the number 463.19of persons in the family unit, the family maintenance needs, personal needs allowance, 463.20and countable income. The county agency shall evaluate the income of the family unit 463.21that is requesting payments under the diversionary work program. Countable income 463.22means gross earned and unearned income not excluded or disregarded under MFIP. 463.23The same disregards for earned income that are allowed under MFIP are allowed for 463.24the diversionary work program.463.25(b) The DWP grant is based on the family maintenance needs for which the DWP 463.26family unit is responsible plus a personal needs allowance. Housing and utilities, except 463.27for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual 463.28housing and utility expenses shall be used when determining the amount of the DWP grant.463.29(c) The maximum monthly benefit amount available under the diversionary work 463.30program is the difference between the family unit's needs under paragraph (b) and the 463.31family unit's countable income not to exceed the cash portion of the MFIP transitional 463.32standard of need as defined in section sections256J.08, subdivision 55a 85, and 256J.24, 463.33subdivision 5, for the family unit's size.464.1(d) Once the county has determined a grant amount, the DWP grant amount will 464.2not be decreased if the determination is based on the best information available at the 464.3time of approval and shall not be decreased because of any additional income to the 464.4family unit. The grant must be increased if a participant later verifies an increase in family 464.5maintenance needs or family unit size. The minimum cash benefit amount, if income and 464.6asset tests are met, is $10. Benefits of $10 shall not be vendor paid.464.7(e) When all criteria are met, including the development of an employment plan as 464.8described in subdivision 14 and eligibility exists for the month of application, the amount 464.9of benefits for the diversionary work program retroactive to the date of application is as 464.10specified in section 
         256J.35, paragraph (a).464.11(f) Any month during the four-month DWP period that a person receives a DWP 464.12benefit directly or through a vendor payment made on the person's behalf, that person is 464.13ineligible for MFIP or any other TANF cash assistance program except for benefits defined 464.14in section 
         256J.626, subdivision 2, clause (1).464.15If during the four-month period a family unit that receives DWP benefits moves to 464.16a county that has not established a diversionary work program, the family unit may be 464.17eligible for MFIP the month following the last month of the issuance of the DWP benefit.464.18EFFECTIVE DATE.This section is effective January 1, 2015.464.19    Sec. 31. [256P.001] APPLICABILITY.464.20General assistance and Minnesota supplemental aid under chapter 256D and 464.21programs governed by chapter 256I or 256J are subject to the requirements of this chapter, 464.22unless otherwise specified or exempted.464.23    Sec. 32. [256P.01] DEFINITIONS.464.24    Subdivision 1.Scope.For purposes of this chapter, the terms defined in this section 464.25have the meanings given them.464.26    Subd. 2.Agency."Agency" means any county, federally recognized Indian tribe, or 464.27multicounty social services collaboratives.464.28    Subd. 3.Earned income."Earned income" means cash or in-kind income earned 464.29through the receipt of wages, salary, commissions, profit from employment activities, net 464.30profit from self-employment activities, payments made by an employer for regularly 464.31accrued vacation or sick leave, and any other profit from activity earned through effort or 464.32labor. The income must be in return for, or as a result of, legal activity.465.1    Subd. 4.Earned income disregard."Earned income disregard" means earned 465.2income that is not counted according to section 256P.03 when determining eligibility and 465.3calculating the amount of the assistance payment.465.4    Subd. 5.Equity value."Equity value" means the amount of equity in personal 465.5property owned by a person and is determined by subtracting any outstanding 465.6encumbrances from the fair market value of the personal property.465.7    Subd. 6.Personal property."Personal property" means an item of value that 465.8is not real property.465.9    Subd. 7.Self-employment."Self-employment" means employment by an 465.10individual who:465.11(1) incurs costs in producing income and deducts these costs in order to equate the 465.12individual's income with income from sources where there are no production costs; and465.13(2) controls the individual's work by working either independently of an employer or 465.14freelance, or by running the business; or465.15(3) pays self-employment taxes.465.16    Sec. 33. [256P.02] PERSONAL PROPERTY LIMITATIONS.465.17    Subdivision 1.Property ownership.(a) The agency must apply paragraphs (b) to 465.18(e) to determine the value of personal property. The agency must use the equity value 465.19of legally available personal property to determine whether an applicant or participant 465.20is eligible for assistance.465.21(b) When personal property is jointly owned by two or more persons, the agency 465.22shall assume that each person owns an equal share, except that either person owns 465.23the entire sum of a joint personal checking or savings account. When an applicant or 465.24participant documents greater or lesser ownership, the agency must use that greater or 465.25lesser share to determine the equity value held by the applicant or participant. Other types 465.26of ownership must be evaluated according to law.465.27(c) Personal property owned by the applicant or participant must be presumed legally 465.28available to the applicant or participant unless the applicant or participant documents 465.29that the property is not legally available to the applicant or participant. When personal 465.30property is not legally available, its equity value must not be applied against the limits of 465.31subdivision 2.465.32(d) An applicant must disclose whether the applicant has transferred personal 465.33property valued in excess of the property limits in subdivision 2 for which reasonable 465.34compensation was not received within one year prior to application. A participant must 465.35disclose all transfers of property valued in excess of these limits, according to the reporting 466.1requirements in section 256J.30, subdivision 9. When a transfer of personal property 466.2without reasonable compensation has occurred:466.3(1) the person who transferred the property must provide the property's description, 466.4information needed to determine the property's equity value, the names of the persons who 466.5received the property, and the circumstances of and reasons for the transfer; and466.6(2) when the transferred property can be reasonably reacquired, or when reasonable 466.7compensation can be secured, the property is presumed legally available to the applicant 466.8or participant.466.9(e) A participant may build the equity value of personal property to the limits in 466.10subdivision 2.466.11    Subd. 2.Personal property limitations.(a) The equity value of an assistance unit's 466.12personal property listed in clauses (1) to (4) must not exceed $10,000 for applicants and 466.13participants. For purposes of this subdivision, personal property is limited to:466.14(1) cash;466.15(2) bank accounts;466.16(3) liquid stocks and bonds that can be readily accessed without a financial penalty; 466.17and466.18(4) vehicles not excluded under subdivision 3.466.19    Subd. 3.Vehicle exception.One vehicle per assistance unit member age 16 or older 466.20shall be excluded when determining the equity value of personal property. If the assistance 466.21unit owns more than one vehicle per assistance unit member age 16 or older, the agency 466.22shall determine the trade-in values of all additional vehicles and apply the values to the 466.23personal property limitations in subdivision 2. To establish the trade-in values of vehicles, 466.24an agency must use the National Automobile Dealers Association online car values and 466.25car prices guide. When a vehicle is not listed in the online guide, or when the applicant or 466.26participant disputes the trade-in value listed in the online guide as unreasonable given the 466.27condition of the particular vehicle, the agency may require the applicant or participant to 466.28document the trade-in value by securing a written statement from a motor vehicle dealer 466.29licensed under section 168.27, stating the amount that the dealer would pay to purchase 466.30the vehicle. The agency shall reimburse the applicant or participant for the cost of a 466.31written statement that documents a lower loan value.466.32EFFECTIVE DATE.This section is effective January 1, 2016.466.33    Sec. 34. [256P.03] EARNED INCOME DISREGARD.467.1    Subdivision 1.Exempted programs.Participants who qualify for Minnesota 467.2supplemental aid under chapter 256D and for group residential housing under chapter 256I 467.3on the basis of eligibility for Supplemental Security Income are exempt from this section.467.4    Subd. 2.Earned income disregard.The agency shall disregard the first $65 of 467.5earned income plus one-half of the remaining earned income per month.467.6EFFECTIVE DATE.This section is effective October 1, 2015.467.7    Sec. 35. [256P.04] DOCUMENTING, VERIFYING, AND RECERTIFYING 467.8ELIGIBILITY.467.9    Subdivision 1.Exemption.Participants who receive Minnesota supplemental aid 467.10and who maintain Supplemental Security Income eligibility under chapters 256D and 467.11256I are exempt from the reporting requirements of this section, except that the policies 467.12and procedures for transfers of assets are those used by the medical assistance program 467.13under section 256B.0595.467.14    Subd. 2.Verification of information.An agency must only require verification of 467.15information necessary to determine eligibility and the amount of the assistance payment. 467.16If necessary, the agency shall assist the applicant or participant in obtaining verifications 467.17and required documents when the applicant or participant is unable to do so.467.18    Subd. 3.Documentation.The applicant or participant must document the 467.19information required under subdivisions 4 to 7 or authorize the agency to verify the 467.20information. The applicant or participant has the burden of providing documentary 467.21evidence to verify eligibility. The agency must accept a signed personal statement from 467.22the applicant or participant when determining personal property values under section 467.23256P.02. The signed personal statement must include general penalty warnings and a 467.24disclaimer that any false or misrepresented information is subject to prosecution for fraud 467.25under sections 609.52 and 609.821 and perjury under section 609.48.467.26    Subd. 4.Factors to be verified.(a) The agency shall verify the following at 467.27application:467.28(1) identity of adults;467.29(2) age, if necessary to determine eligibility;467.30(3) immigration status;467.31(4) income;467.32(5) spousal support and child support payments made to persons outside the 467.33household;467.34(6) vehicles;467.35(7) checking and savings accounts;468.1(8) inconsistent information, if related to eligibility;468.2(9) residence; and468.3(10) Social Security number.468.4(b) Applicants who are qualified noncitizens and victims of domestic violence as 468.5defined under section 256J.08, subdivision 73, clause (7), are not required to verify the 468.6information in paragraph (a), clause (10). When a Social Security number is not provided 468.7to the agency for verification, this requirement is satisfied when each member of the 468.8assistance unit cooperates with the procedures for verification of Social Security numbers, 468.9issuance of duplicate cards, and issuance of new numbers which have been established 468.10jointly between the Social Security Administration and the commissioner.468.11    Subd. 5.MFIP-only verifications.In addition to subdivision 4, the agency shall 468.12verify the following for programs under chapter 256J:468.13(1) the presence of the minor child in the home, if questionable;468.14(2) the relationship of a minor child to caregivers in the assistance unit;468.15(3) pregnancy, if related to eligibility;468.16(4) school attendance, if related to eligibility;468.17(5) a claim of family violence, if used as a basis to qualify for the family violence 468.18waiver under chapter 256J; and468.19(6) disability, if used as the basis for reducing the hourly participation requirements 468.20under section 256J.55, subdivision 1, or for the type of activity included in an employment 468.21plan under section 256J.521, subdivision 2.468.22    Subd. 6.Personal property inconsistent information.If there is inconsistent 468.23information known to the agency when reporting personal property under section 256P.02, 468.24an agency must require the applicant or participant to document the information required 468.25under section 256P.02 or authorize the county agency to verify the information. The 468.26applicant or participant has the burden of providing documentary evidence to verify 468.27eligibility. The agency shall assist the applicant or participant in obtaining required 468.28documents when the applicant or participant is unable to do so.468.29    Subd. 7.Documenting and verifying inconsistent information.When the 468.30agency verifies inconsistent information under subdivision 4, paragraph (a), clause (8); 468.31subdivision 6; or subdivision 8, clause (3), the reason for verifying the information must 468.32be documented in the financial case record.468.33    Subd. 8.Recertification.The agency shall recertify eligibility in an annual 468.34interview with the participant. The interview may be conducted by telephone, by Internet 468.35telepresence, or face-to-face in the county office or in another location mutually agreed 468.36upon. A participant must be given the option of a telephone interview or Internet 469.1telepresence to recertify eligibility. During the interview, the agency shall verify the 469.2following:469.3(1) income, unless excluded, including self-employment earnings;469.4(2) assets when the value is within $200 of the asset limit; and469.5(3) inconsistent information, if related to eligibility.469.6    Subd. 9.MFIP-only recertification.In addition to subdivision 8, the agency shall 469.7verify the following for programs under chapter 256J:469.8(1) the presence of the minor child in the home, if questionable; and469.9(2) whether a single-caregiver household meets the requirements in section 469.10256J.575, subdivision 3.469.11    Subd. 10.Participant's completion of form for recertification of eligibility.A 469.12participant must complete forms prescribed by the commissioner which are required 469.13for recertification of eligibility according to subdivisions 8 and 9. An agency must end 469.14benefits when the participant fails to submit the recertification form and verifications 469.15before the end of the certification period. If the participant submits the recertification 469.16form within 30 days of the termination of benefits, benefits must be reinstated and made 469.17available retroactively for the full benefit month.469.18    Subd. 11.Participant's completion of household report form.(a) When a 469.19participant is required to complete a household report form, the following paragraphs apply.469.20(b) If the agency receives an incomplete household report form, the agency must 469.21immediately return the incomplete form and clearly state what the participant must do for 469.22the form to be complete.469.23(c) The automated eligibility system must send a notice of proposed termination of 469.24assistance to the participant if a complete household report form is not received by the 469.25agency. The automated notice must be mailed to the participant by approximately the 16th 469.26of the month. When a participant submits an incomplete form on or after the date a notice 469.27of proposed termination has been sent, the termination is valid unless the participant 469.28submits a complete form before the end of the month.469.29(d) The submission of a household report form is considered to have continued the 469.30participant's application for assistance if a complete household report form is received 469.31within a calendar month after the month in which the form was due. Assistance shall be 469.32paid for the period beginning with the first day of that calendar month.469.33(e) An agency must allow good cause exemptions for a participant required to 469.34complete a household report form when any of the following factors cause a participant to 469.35fail to submit a completed household report form before the end of the month in which 469.36the form is due:470.1(1) an employer delays completion of employment verification;470.2(2) the agency does not help a participant complete the household report form when 470.3the participant asks for help;470.4(3) a participant does not receive a household report form due to a mistake on the 470.5part of the department or the agency or a reported change in address;470.6(4) a participant is ill or physically or mentally incapacitated; or470.7(5) some other circumstance occurs that a participant could not avoid with reasonable 470.8care which prevents the participant from providing a completed household report form 470.9before the end of the month in which the form is due.470.10    Subd. 12.Contacting third parties.An agency must not request information 470.11about an applicant or participant that is not of public record from a source other than 470.12agencies, the department, or the United States Department of Health and Human Services 470.13without the applicant's or participant's prior written consent. An applicant's signature 470.14on an application form constitutes consent for contact with the sources specified on the 470.15application. An agency may use a single consent form to contact a group of similar 470.16sources, such as banks or insurance agencies, but the sources to be contacted must be 470.17identified by the agency prior to requesting an applicant's consent.470.18    Subd. 13.Notice to undocumented persons; release of private data.Agencies, 470.19in consultation with the commissioner of human services, shall provide notification 470.20to undocumented persons regarding the release of personal data to the United States 470.21Citizenship and Immigration Services and develop protocols regarding the release or 470.22sharing of data about undocumented persons with the United States Citizenship and 470.23Immigration Services as required under sections 404, 411A, and 434 of the Personal 470.24Responsibility and Work Opportunity Reconciliation Act of 1996.470.25    Subd. 14.Requirement to report to United States Citizenship and Immigration 470.26Services.The commissioner shall comply with the reporting requirements under United 470.27States Code, title 42, section 611a, and any federal regulation or guidance adopted under 470.28that law.470.29    Subd. 15.Personal statement.The agency may accept a signed personal statement 470.30from the applicant or participant explaining the reasons that the documentation requested 470.31in subdivision 3 is unavailable as sufficient documentation at the time of application, 470.32recertification, or change related to eligibility only for the following factors:470.33(1) a claim of family violence, if used as a basis to qualify for the family violence 470.34waiver;470.35(2) relationship of a minor child to caregivers in the assistance unit;471.1(3) citizenship status from a noncitizen who reports to be, or is identified as, a victim 471.2of severe forms of trafficking in persons, if the noncitizen reports that the noncitizen's 471.3immigration documents are being held by an individual or group of individuals against the 471.4noncitizen's will. The noncitizen must follow up with the Office of Refugee Resettlement 471.5(ORR) to pursue certification. If verification that certification is being pursued is 471.6not received within 30 days, the case must be closed and the agency shall pursue 471.7overpayments. The ORR documents certifying the noncitizen's status as a victim of severe 471.8forms of trafficking in persons, or the reason for the delay in processing, must be received 471.9within 90 days, or the case must be closed and the agency shall pursue overpayments; and471.10(4) other documentation unavailable for reasons beyond the control of the applicant 471.11or participant. The applicant or participant must have made reasonable attempts to obtain 471.12the documents requested under subdivision 3.471.13    Subd. 16.Excluded resources.Payments of funds made according to litigation and 471.14subsequent appropriation by the United States Congress to compensate members of Indian 471.15tribes for the taking of tribal lands by the federal government are excluded.471.16EFFECTIVE DATE.This section is effective February 1, 2015.471.17    Sec. 36. [256P.05] SELF-EMPLOYMENT EARNINGS.471.18    Subdivision 1.Exempted programs.Participants who qualify for Minnesota 471.19supplemental aid under chapter 256D and for group residential housing under chapter 256I 471.20on the basis of eligibility for Supplemental Security Income are exempt from this section.471.21    Subd. 2.Self-employment income determinations.An agency must determine 471.22self-employment income, which is either:471.23(1) one-half of gross earnings from self-employment; or471.24(2) taxable income as determined from an Internal Revenue Service tax form that 471.25has been filed with the Internal Revenue Service within the last year. A 12-month average 471.26using net taxable income shall be used to budget monthly income.471.27    Subd. 3.Self-employment budgeting.(a) The self-employment budget period 471.28begins in the month of application or in the first month of self-employment. Applicants 471.29and participants must choose one of the methods described in subdivision 2 for 471.30determining self-employment earned income.471.31(b) Applicants and participants who elect to use taxable income as described in 471.32subdivision 2, clause (2), to determine self-employment income must continue to use this 471.33method until recertification, unless there is an unforeseen significant change in gross 471.34income equaling a decline in gross income of the amount equal to or greater than the 472.1earned income disregard as defined in section 256P.03 from the income used to determine 472.2the benefit for the current month.472.3(c) For applicants and participants who elect to use one-half of gross earnings as 472.4described in subdivision 2, clause (1), to determine self-employment income, earnings 472.5must be counted as income in the month received.472.6EFFECTIVE DATE.This section is effective February 1, 2015.472.7    Sec. 37.  REPEALER.472.8(a) Minnesota Statutes 2012, sections 256J.08, subdivisions 55a and 82a; and 472.9256J.24, subdivision 9, are repealed effective January 1, 2015.472.10(b) Minnesota Statutes 2012, sections 256D.405, subdivisions 1a and 2; 256J.08, 472.11subdivision 42; and 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, and 8, are repealed effective 472.12February 1, 2015.472.13(c) Minnesota Statutes 2012, section 256D.06, subdivision 1b, is repealed effective 472.14October 1, 2015.472.15(d) Minnesota Statutes 2013 Supplement, section 256J.08, subdivision 24, is 472.16repealed effective October 1, 2015.472.17(e) Minnesota Statutes 2012, sections 256D.08, subdivision 2; and 256J.20, are 472.18repealed effective January 1, 2016.472.19ARTICLE 22472.20HUMAN SERVICES FORECAST ADJUSTMENTS

472.21Section 1. HUMAN SERVICES APPROPRIATION.

472.22The sums shown in the columns marked "Appropriations" are added to or, if shown 472.23in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article 472.2414, from the general fund or any fund named to the Department of Human Services for 472.25the purposes specified in this article, to be available for the fiscal year indicated for each 472.26purpose. The figures "2014" and "2015" used in this article mean that the appropriations 472.27listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015, 472.28respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. 472.29"The biennium" is fiscal years 2014 and 2015.

472.30APPROPRIATIONS472.31Available for the Year472.32Ending June 30472.3320142015

473.1473.2Sec. 2. COMMISSIONER OF HUMAN SERVICES

473.3Subdivision 1.Total Appropriation$(196,927)$64,288

473.4Appropriations by Fund473.5General Fund(153,497)(25,282)473.6473.7Health Care Access Fund(36,533)91,294473.8Federal TANF(6,897)(1,724)

473.9Subd. 2.Forecasted Programs

473.10(a) MFIP/DWP

473.11Appropriations by Fund473.12General Fund3,571173473.13Federal TANF(6,475)(1,298)

473.14(b) MFIP Child Care Assistance(684)11,114

473.15(c) General Assistance(2,569)(1,940)

473.16(d) Minnesota Supplemental Aid(690)(614)

473.17(e) Group Residential Housing250(1,740)

473.18(f) MinnesotaCare(34,838)96,340

473.19These appropriations are from the health care 473.20access fund.

473.21(g) Medical Assistance

473.22Appropriations by Fund473.23General Fund(149,494)(27,075)473.24473.25Health Care Access Fund(1,695)(5,046)

473.26(h) Alternative Care Program(6,936)(13,260)

473.27(i) CCDTF Entitlements3,0558,060

473.28Subd. 3.Technical Activities(422)(426)

473.29These appropriations are from the federal 473.30TANF fund.473.31    Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

474.1474.2Subdivision 1.Total Appropriation$6,438,485,000 6,437,815,000$6,457,117,000 6,456,311,000

474.3Appropriations by Fund474.420142015474.5474.6General5,654,765,000 5,654,095,0005,677,458,000 5,676,652,000474.7474.8State Government 
                  		Special Revenue4,099,0004,510,000474.9Health Care Access519,816,000518,446,000474.10Federal TANF257,915,000254,813,000474.11Lottery Prize Fund1,890,0001,890,000

474.12Receipts for Systems Projects. 474.13Appropriations and federal receipts for 474.14information systems projects for MAXIS, 474.15PRISM, MMIS, and SSIS must be deposited 474.16in the state system account authorized 474.17in Minnesota Statutes, section 
         256.014. 474.18Money appropriated for computer projects 474.19approved by the commissioner of Minnesota 474.20information technology services, funded 474.21by the legislature, and approved by the 474.22commissioner of management and budget, 474.23may be transferred from one project to 474.24another and from development to operations 474.25as the commissioner of human services 474.26considers necessary. Any unexpended 474.27balance in the appropriation for these 474.28projects does not cancel but is available for 474.29ongoing development and operations.474.30Nonfederal Share Transfers. The 474.31nonfederal share of activities for which 474.32federal administrative reimbursement is 474.33appropriated to the commissioner may be 474.34transferred to the special revenue fund.474.35ARRA Supplemental Nutrition Assistance 474.36Benefit Increases. The funds provided for 474.37food support benefit increases under the 475.1Supplemental Nutrition Assistance Program 475.2provisions of the American Recovery and 475.3Reinvestment Act (ARRA) of 2009 must be 475.4used for benefit increases beginning July 1, 475.52009.475.6Supplemental Nutrition Assistance 475.7Program Employment and Training. 475.8(1) Notwithstanding Minnesota Statutes, 475.9sections 
         256D.051, subdivisions 1a, 6b, 475.10and 6c, and 
         256J.626, federal Supplemental 475.11Nutrition Assistance employment and 475.12training funds received as reimbursement of 475.13MFIP consolidated fund grant expenditures 475.14for diversionary work program participants 475.15and child care assistance program 475.16expenditures must be deposited in the general 475.17fund. The amount of funds must be limited to 475.18$4,900,000 per year in fiscal years 2014 and 475.192015, and to $4,400,000 per year in fiscal 475.20years 2016 and 2017, contingent on approval 475.21by the federal Food and Nutrition Service.475.22(2) Consistent with the receipt of the federal 475.23funds, the commissioner may adjust the 475.24level of working family credit expenditures 475.25claimed as TANF maintenance of effort. 475.26Notwithstanding any contrary provision in 475.27this article, this rider expires June 30, 2017.475.28TANF Maintenance of Effort. (a) In order 475.29to meet the basic maintenance of effort 475.30(MOE) requirements of the TANF block grant 475.31specified under Code of Federal Regulations, 475.32title 45, section 263.1, the commissioner may 475.33only report nonfederal money expended for 475.34allowable activities listed in the following 475.35clauses as TANF/MOE expenditures:476.1(1) MFIP cash, diversionary work program, 476.2and food assistance benefits under Minnesota 476.3Statutes, chapter 256J;476.4(2) the child care assistance programs 476.5under Minnesota Statutes, sections 
         119B.03476.6and 
         119B.05, and county child care 476.7administrative costs under Minnesota 476.8Statutes, section 
         119B.15;476.9(3) state and county MFIP administrative 476.10costs under Minnesota Statutes, chapters 476.11256J and 256K;476.12(4) state, county, and tribal MFIP 476.13employment services under Minnesota 476.14Statutes, chapters 256J and 256K;476.15(5) expenditures made on behalf of legal 476.16noncitizen MFIP recipients who qualify for 476.17the MinnesotaCare program under Minnesota 476.18Statutes, chapter 256L;476.19(6) qualifying working family credit 476.20expenditures under Minnesota Statutes, 476.21section 
         290.0671;476.22(7) qualifying Minnesota education credit 476.23expenditures under Minnesota Statutes, 476.24section 
         290.0674; and476.25(8) qualifying Head Start expenditures under 476.26Minnesota Statutes, section 
         119A.50.476.27(b) The commissioner shall ensure that 476.28sufficient qualified nonfederal expenditures 476.29are made each year to meet the state's 476.30TANF/MOE requirements. For the activities 476.31listed in paragraph (a), clauses (2) to 476.32(8), the commissioner may only report 476.33expenditures that are excluded from the 477.1definition of assistance under Code of 477.2Federal Regulations, title 45, section 
         260.31.477.3(c) For fiscal years beginning with state fiscal 477.4year 2003, the commissioner shall ensure 477.5that the maintenance of effort used by the 477.6commissioner of management and budget 477.7for the February and November forecasts 477.8required under Minnesota Statutes, section 477.916A.103
         , contains expenditures under 477.10paragraph (a), clause (1), equal to at least 16 477.11percent of the total required under Code of 477.12Federal Regulations, title 45, section 263.1.477.13(d) The requirement in Minnesota Statutes, 477.14section 
         256.011, subdivision 3, that federal 477.15grants or aids secured or obtained under that 477.16subdivision be used to reduce any direct 477.17appropriations provided by law, do not apply 477.18if the grants or aids are federal TANF funds.477.19(e) For the federal fiscal years beginning on 477.20or after October 1, 2007, the commissioner 477.21may not claim an amount of TANF/MOE in 477.22excess of the 75 percent standard in Code 477.23of Federal Regulations, title 45, section 477.24263.1(a)(2), except:477.25(1) to the extent necessary to meet the 80 477.26percent standard under Code of Federal 477.27Regulations, title 45, section 263.1(a)(1), 477.28if it is determined by the commissioner 477.29that the state will not meet the TANF work 477.30participation target rate for the current year;477.31(2) to provide any additional amounts 477.32under Code of Federal Regulations, title 45, 477.33section 264.5, that relate to replacement of 477.34TANF funds due to the operation of TANF 477.35penalties; and478.1(3) to provide any additional amounts that 478.2may contribute to avoiding or reducing 478.3TANF work participation penalties through 478.4the operation of the excess MOE provisions 478.5of Code of Federal Regulations, title 45, 478.6section 
         261.43 (a)(2).478.7For the purposes of clauses (1) to (3), 478.8the commissioner may supplement the 478.9MOE claim with working family credit 478.10expenditures or other qualified expenditures 478.11to the extent such expenditures are otherwise 478.12available after considering the expenditures 478.13allowed in this subdivision and subdivisions 478.142 and 3.478.15(f) Notwithstanding any contrary provision 478.16in this article, paragraphs (a) to (e) expire 478.17June 30, 2017.478.18Working Family Credit Expenditures 478.19as TANF/MOE. The commissioner may 478.20claim as TANF maintenance of effort up to 478.21$6,707,000 per year of working family credit 478.22expenditures in each fiscal year.478.23EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.478.24    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by 478.25Laws 2013, chapter 144, section 24, is amended to read:

478.26Subd. 4.Central Office

478.27The amounts that may be spent from this 478.28appropriation for each purpose are as follows:

478.29(a) Operations

478.30Appropriations by Fund478.31General101,979,00096,858,000478.32478.33State Government 
                  		Special Revenue3,974,0004,385,000479.1Health Care Access13,177,00013,004,000479.2Federal TANF100,000100,000

479.3DHS Receipt Center Accounting. The 479.4commissioner is authorized to transfer 479.5appropriations to, and account for DHS 479.6receipt center operations in, the special 479.7revenue fund.479.8Administrative Recovery; Set-Aside. The 479.9commissioner may invoice local entities 479.10through the SWIFT accounting system as an 479.11alternative means to recover the actual cost 479.12of administering the following provisions:479.13(1) Minnesota Statutes, section 
         125A.744, 479.14subdivision 3
         ;479.15(2) Minnesota Statutes, section 
         245.495, 479.16paragraph (b);479.17(3) Minnesota Statutes, section 
         256B.0625, 479.18subdivision 20
         , paragraph (k);479.19(4) Minnesota Statutes, section 
         256B.0924, 479.20subdivision 6
         , paragraph (g);479.21(5) Minnesota Statutes, section 
         256B.0945, 479.22subdivision 4
         , paragraph (d); and479.23(6) Minnesota Statutes, section 
         256F.10, 479.24subdivision 6
         , paragraph (b).479.25Systems Modernization. The following 479.26amounts are appropriated for transfer to 479.27the state systems account authorized in 479.28Minnesota Statutes, section 
         256.014:479.29(1) $1,825,000 in fiscal year 2014 and 479.30$2,502,000 in fiscal year 2015 is for the 479.31state share of Medicaid-allocated costs of 479.32the health insurance exchange information 479.33technology and operational structure. The 480.1funding base is $3,222,000 in fiscal year 2016 480.2and $3,037,000 in fiscal year 2017 but shall 480.3not be included in the base thereafter; and480.4(2) $9,344,000 in fiscal year 2014 and 480.5$3,660,000 in fiscal year 2015 are for the 480.6modernization and streamlining of agency 480.7eligibility and child support systems. The 480.8funding base is $5,921,000 in fiscal year 480.92016 and $1,792,000 in fiscal year 2017 but 480.10shall not be included in the base thereafter.480.11The unexpended balance of the $9,344,000 480.12appropriation in fiscal year 2014 and the 480.13$3,660,000 appropriation in fiscal year 2015 480.14must be transferred from the Department of 480.15Human Services state systems account to 480.16the Office of Enterprise Technology when 480.17the Office of Enterprise Technology has 480.18negotiated a federally approved internal 480.19service fund rates and billing process with 480.20sufficient internal accounting controls to 480.21properly maximize federal reimbursement 480.22to Minnesota for human services system 480.23modernization projects, but not later than 480.24June 30, 2015.480.25If contingent funding is fully or partially 480.26disbursed under article 15, section 3, and 480.27transferred to the state systems account, the 480.28unexpended balance of that appropriation 480.29must be transferred to the Office of Enterprise 480.30Technology in accordance with this clause. 480.31Contingent funding must not exceed 480.32$11,598,000 for the biennium.480.33Base Adjustment. The general fund base 480.34is increased by $2,868,000 in fiscal year 480.352016 and decreased by $1,206,000 in fiscal 481.1year 2017. The health access fund base is 481.2decreased by $551,000 in fiscal years 2016 481.3and 2017. The state government special 481.4revenue fund base is increased by $4,000 in 481.5fiscal year 2016 and decreased by $236,000 481.6in fiscal year 2017.

481.7(b) Children and Families

481.8Appropriations by Fund481.9General8,023,0008,015,000481.10Federal TANF2,282,0002,282,000

481.11Financial Institution Data Match and 481.12Payment of Fees. The commissioner is 481.13authorized to allocate up to $310,000 each 481.14year in fiscal years 2014 and 2015 from the 481.15PRISM special revenue account to make 481.16payments to financial institutions in exchange 481.17for performing data matches between account 481.18information held by financial institutions 481.19and the public authority's database of child 481.20support obligors as authorized by Minnesota 481.21Statutes, section 
         13B.06, subdivision 7.481.22Base Adjustment. The general fund base is 481.23decreased by $300,000 in fiscal years 2016 481.24and 2017. The TANF fund base is increased 481.25by $300,000 in fiscal years 2016 and 2017.

481.26(c) Health Care

481.27Appropriations by Fund481.28General14,028,00013,826,000481.29Health Care Access28,442,00031,137,000

481.30Base Adjustment. The general fund base 481.31is decreased by $86,000 in fiscal year 2016 481.32and by $86,000 in fiscal year 2017. The 481.33health care access fund base is increased 481.34by $6,954,000 in fiscal year 2016 and by 481.35$5,489,000 in fiscal year 2017.

482.1(d) Continuing Care

482.2Appropriations by Fund482.3General20,993,00022,359,000482.4482.5State Government 
                  		Special Revenue125,000125,000

482.6Base Adjustment. The general fund base is 482.7increased by $1,690,000 in fiscal year 2016 482.8and by $798,000 in fiscal year 2017.

482.9(e) Chemical and Mental Health

482.10Appropriations by Fund482.11482.12General4,639,000 4,571,0004,490,000 4,431,000482.13Lottery Prize Fund157,000157,000

482.14Of the general fund appropriation, $68,000 482.15in fiscal year 2014 and $59,000 in fiscal year 482.162015 are for compulsive gambling treatment 482.17under Minnesota Statutes, section 297E.02, 482.18subdivision 3, paragraph (c).482.19EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.482.20    Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 482.21Laws 2013, chapter 144, section 25, is amended to read:

482.22Subd. 6.Grant Programs

482.23The amounts that may be spent from this 482.24appropriation for each purpose are as follows:

482.25(a) Support Services Grants

482.26Appropriations by Fund482.27General8,915,00013,333,000482.28Federal TANF94,611,00094,611,000

482.29Paid Work Experience. $2,168,000 482.30each year in fiscal years 2015 and 2016 482.31is from the general fund for paid work 482.32experience for long-term MFIP recipients. 482.33Paid work includes full and partial wage 483.1subsidies and other related services such as 483.2job development, marketing, preworksite 483.3training, job coaching, and postplacement 483.4services. These are onetime appropriations. 483.5Unexpended funds for fiscal year 2015 do not 483.6cancel, but are available to the commissioner 483.7for this purpose in fiscal year 2016.483.8Work Study Funding for MFIP 483.9Participants. $250,000 each year in fiscal 483.10years 2015 and 2016 is from the general fund 483.11to pilot work study jobs for MFIP recipients 483.12in approved postsecondary education 483.13programs. This is a onetime appropriation. 483.14Unexpended funds for fiscal year 2015 do 483.15not cancel, but are available for this purpose 483.16in fiscal year 2016.483.17Local Strategies to Reduce Disparities.483.18$2,000,000 each year in fiscal years 2015 483.19and 2016 is from the general fund for 483.20local projects that focus on services for 483.21subgroups within the MFIP caseload 483.22who are experiencing poor employment 483.23outcomes. These are onetime appropriations. 483.24Unexpended funds for fiscal year 2015 do not 483.25cancel, but are available to the commissioner 483.26for this purpose in fiscal year 2016.483.27Home Visiting Collaborations for MFIP 483.28Teen Parents. $200,000 per year in fiscal 483.29years 2014 and 2015 is from the general fund 483.30and $200,000 in fiscal year 2016 is from the 483.31federal TANF fund for technical assistance 483.32and training to support local collaborations 483.33that provide home visiting services for 483.34MFIP teen parents. The general fund 484.1appropriation is onetime. The federal TANF 484.2fund appropriation is added to the base.484.3Performance Bonus Funds for Counties.484.4The TANF fund base is increased by 484.5$1,500,000 each year in fiscal years 2016 484.6and 2017. The commissioner must allocate 484.7this amount each year to counties that exceed 484.8their expected range of performance on the 484.9annualized three-year self-support index 484.10as defined in Minnesota Statutes, section 484.11256J.751, subdivision 2
         , clause (6). This is a 484.12permanent base adjustment. Notwithstanding 484.13any contrary provisions in this article, this 484.14provision expires June 30, 2016.484.15Base Adjustment. The general fund base is 484.16decreased by $200,000 in fiscal year 2016 484.17and $4,618,000 in fiscal year 2017. The 484.18TANF fund base is increased by $1,700,000 484.19in fiscal years 2016 and 2017.

484.20484.21(b) Basic Sliding Fee Child Care Assistance Grants36,836,00042,318,000

484.22Base Adjustment. The general fund base is 484.23increased by $3,778,000 in fiscal year 2016 484.24and by $3,849,000 in fiscal year 2017.

484.25(c) Child Care Development Grants1,612,0001,737,000

484.26(d) Child Support Enforcement Grants50,00050,000

484.27Federal Child Support Demonstration 484.28Grants. Federal administrative 484.29reimbursement resulting from the federal 484.30child support grant expenditures authorized 484.31under United States Code, title 42, section 484.321315, is appropriated to the commissioner 484.33for this activity.

484.34(e) Children's Services Grants

485.1Appropriations by Fund485.2General49,760,00052,961,000485.3Federal TANF140,000140,000

485.4Adoption Assistance and Relative Custody 485.5Assistance. $37,453,000 in fiscal year 2014 485.6and $37,453,000 in fiscal year 2015 is for 485.7the adoption assistance and relative custody 485.8assistance programs. The commissioner 485.9shall determine with the commissioner of 485.10Minnesota Management and Budget the 485.11appropriation for Northstar Care for Children 485.12effective January 1, 2015. The commissioner 485.13may transfer appropriations for adoption 485.14assistance, relative custody assistance, and 485.15Northstar Care for Children between fiscal 485.16years and among programs to adjust for 485.17transfers across the programs.485.18Title IV-E Adoption Assistance. Additional 485.19federal reimbursements to the state as a result 485.20of the Fostering Connections to Success 485.21and Increasing Adoptions Act's expanded 485.22eligibility for Title IV-E adoption assistance 485.23are appropriated for postadoption services, 485.24including a parent-to-parent support network.485.25Privatized Adoption Grants. Federal 485.26reimbursement for privatized adoption grant 485.27and foster care recruitment grant expenditures 485.28is appropriated to the commissioner for 485.29adoption grants and foster care and adoption 485.30administrative purposes.485.31Adoption Assistance Incentive Grants.485.32Federal funds available during fiscal years 485.332014 and 2015 for adoption incentive grants 485.34are appropriated for postadoption services, 485.35including a parent-to-parent support network.486.1Base Adjustment. The general fund base is 486.2increased by $5,913,000 in fiscal year 2016 486.3and by $10,297,000 in fiscal year 2017.

486.4(f) Child and Community Service Grants53,301,00053,301,000

486.5(g) Child and Economic Support Grants21,047,00020,848,000

486.6Minnesota Food Assistance Program. 486.7Unexpended funds for the Minnesota food 486.8assistance program for fiscal year 2014 do 486.9not cancel but are available for this purpose 486.10in fiscal year 2015.486.11Transitional Housing. $250,000 each year 486.12is for the transitional housing programs under 486.13Minnesota Statutes, section 
         256E.33.486.14Emergency Services. $250,000 each year 486.15is for emergency services grants under 486.16Minnesota Statutes, section 
         256E.36.486.17Family Assets for Independence. $250,000 486.18each year is for the Family Assets for 486.19Independence Minnesota program. This 486.20appropriation is available in either year of the 486.21biennium and may be transferred between 486.22fiscal years.486.23Food Shelf Programs. $375,000 in fiscal 486.24year 2014 and $375,000 in fiscal year 486.252015 are for food shelf programs under 486.26Minnesota Statutes, section 
         256E.34. If the 486.27appropriation for either year is insufficient, 486.28the appropriation for the other year is 486.29available for it. Notwithstanding Minnesota 486.30Statutes, section 
         256E.34, subdivision 4, no 486.31portion of this appropriation may be used 486.32by Hunger Solutions for its administrative 486.33expenses, including but not limited to rent 486.34and salaries.487.1Homeless Youth Act. $2,000,000 in fiscal 487.2year 2014 and $2,000,000 in fiscal year 2015 487.3is for purposes of Minnesota Statutes, section 487.4256K.45
         .487.5Safe Harbor Shelter and Housing. 487.6$500,000 in fiscal year 2014 and $500,000 in 487.7fiscal year 2015 is for a safe harbor shelter 487.8and housing fund for housing and supportive 487.9services for youth who are sexually exploited. 

487.10(h) Health Care Grants

487.11Appropriations by Fund487.12General190,000190,000487.13Health Care Access190,000190,000

487.14Emergency Medical Assistance Referral 487.15and Assistance Grants. (a) The 487.16commissioner of human services shall 487.17award grants to nonprofit programs that 487.18provide immigration legal services based 487.19on indigency to provide legal services for 487.20immigration assistance to individuals with 487.21emergency medical conditions or complex 487.22and chronic health conditions who are not 487.23currently eligible for medical assistance 487.24or other public health care programs, but 487.25who may meet eligibility requirements with 487.26immigration assistance.487.27(b) The grantees, in collaboration with 487.28hospitals and safety net providers, shall 487.29provide referral assistance to connect 487.30individuals identified in paragraph (a) with 487.31alternative resources and services to assist in 487.32meeting their health care needs. $100,000 487.33is appropriated in fiscal year 2014 and 487.34$100,000 in fiscal year 2015. This is a 487.35onetime appropriation.488.1Base Adjustment. The general fund is 488.2decreased by $100,000 in fiscal year 2016 488.3and $100,000 in fiscal year 2017.

488.4(i) Aging and Adult Services Grants14,827,00015,010,000

488.5Base Adjustment. The general fund is 488.6increased by $1,150,000 in fiscal year 2016 488.7and $1,151,000 in fiscal year 2017.488.8Community Service Development 488.9Grants and Community Services Grants.488.10Community service development grants and 488.11community services grants are reduced by 488.12$1,150,000 each year. This is a onetime 488.13reduction.

488.14(j) Deaf and Hard-of-Hearing Grants1,771,0001,785,000

488.15(k) Disabilities Grants18,605,00018,823,000

488.16Advocating Change Together. $310,000 in 488.17fiscal year 2014 is for a grant to Advocating 488.18Change Together (ACT) to maintain and 488.19promote services for persons with intellectual 488.20and developmental disabilities throughout 488.21the state. This appropriation is onetime. Of 488.22this appropriation:488.23(1) $120,000 is for direct costs associated 488.24with the delivery and evaluation of 488.25peer-to-peer training programs administered 488.26throughout the state, focusing on education, 488.27employment, housing, transportation, and 488.28voting;488.29(2) $100,000 is for delivery of statewide 488.30conferences focusing on leadership and 488.31skill development within the disability 488.32community; and488.33(3) $90,000 is for administrative and general 488.34operating costs associated with managing 489.1or maintaining facilities, program delivery, 489.2staff, and technology.489.3Base Adjustment. The general fund base 489.4is increased by $535,000 in fiscal year 2016 489.5and by $709,000 in fiscal year 2017.

489.6(l) Adult Mental Health Grants

489.7Appropriations by Fund489.8489.9General71,199,000 70,597,00069,530,000 68,783,000489.10Health Care Access750,000750,000489.11Lottery Prize1,733,0001,733,000

489.12Compulsive Gambling Treatment. Of the 489.13general fund appropriation, $602,000 in 489.14fiscal year 2014 and $747,000 in fiscal year 489.152015 are for compulsive gambling treatment 489.16under Minnesota Statutes, section 297E.02, 489.17subdivision 3, paragraph (c).489.18Problem Gambling. $225,000 in fiscal year 489.192014 and $225,000 in fiscal year 2015 is 489.20appropriated from the lottery prize fund for a 489.21grant to the state affiliate recognized by the 489.22National Council on Problem Gambling. The 489.23affiliate must provide services to increase 489.24public awareness of problem gambling, 489.25education and training for individuals and 489.26organizations providing effective treatment 489.27services to problem gamblers and their 489.28families, and research relating to problem 489.29gambling. 489.30Funding Usage. Up to 75 percent of a fiscal 489.31year's appropriations for adult mental health 489.32grants may be used to fund allocations in that 489.33portion of the fiscal year ending December 489.3431.490.1Base Adjustment. The general fund base is 490.2decreased by $4,427,000 $4,441,000  in fiscal 490.3years 2016 and 2017.490.4Mental Health Pilot Project. $230,000 490.5each year is for a grant to the Zumbro 490.6Valley Mental Health Center. The grant 490.7shall be used to implement a pilot project 490.8to test an integrated behavioral health care 490.9coordination model. The grant recipient must 490.10report measurable outcomes and savings 490.11to the commissioner of human services 490.12by January 15, 2016. This is a onetime 490.13appropriation.490.14High-risk adults. $200,000 in fiscal 490.15year 2014 is for a grant to the nonprofit 490.16organization selected to administer the 490.17demonstration project for high-risk adults 490.18under Laws 2007, chapter 54, article 1, 490.19section 19, in order to complete the project. 490.20This is a onetime appropriation.

490.21(m) Child Mental Health Grants18,246,00020,636,000

490.22Text Message Suicide Prevention 490.23Program. $625,000 in fiscal year 2014 and 490.24$625,000 in fiscal year 2015 is for a grant 490.25to a nonprofit organization to establish and 490.26implement a statewide text message suicide 490.27prevention program. The program shall 490.28implement a suicide prevention counseling 490.29text line designed to use text messaging to 490.30connect with crisis counselors and to obtain 490.31emergency information and referrals to 490.32local resources in the local community. The 490.33program shall include training within schools 490.34and communities to encourage the use of the 490.35program.491.1Mental Health First Aid Training. $22,000 491.2in fiscal year 2014 and $23,000 in fiscal 491.3year 2015 is to train teachers, social service 491.4personnel, law enforcement, and others who 491.5come into contact with children with mental 491.6illnesses, in children and adolescents mental 491.7health first aid training.491.8Funding Usage. Up to 75 percent of a fiscal 491.9year's appropriation for child mental health 491.10grants may be used to fund allocations in that 491.11portion of the fiscal year ending December 491.1231.

491.13(n) CD Treatment Support Grants1,816,0001,816,000

491.14SBIRT Training. (1) $300,000 each year is 491.15for grants to train primary care clinicians to 491.16provide substance abuse brief intervention 491.17and referral to treatment (SBIRT). This is a 491.18onetime appropriation. The commissioner of 491.19human services shall apply to SAMHSA for 491.20an SBIRT professional training grant.491.21(2) If the commissioner of human services 491.22receives a grant under clause (1) funds 491.23appropriated under this clause, equal to 491.24the grant amount, up to the available 491.25appropriation, shall be transferred to the 491.26Minnesota Organization on Fetal Alcohol 491.27Syndrome (MOFAS). MOFAS must use 491.28the funds for grants. Grant recipients must 491.29be selected from communities that are 491.30not currently served by federal Substance 491.31Abuse Prevention and Treatment Block 491.32Grant funds. Grant money must be used to 491.33reduce the rates of fetal alcohol syndrome 491.34and fetal alcohol effects, and the number of 491.35drug-exposed infants. Grant money may be 492.1used for prevention and intervention services 492.2and programs, including, but not limited to, 492.3community grants, professional eduction, 492.4public awareness, and diagnosis.492.5Fetal Alcohol Syndrome Grant. $180,000 492.6each year from the general fund is for a 492.7grant to the Minnesota Organization on Fetal 492.8Alcohol Syndrome (MOFAS) to support 492.9nonprofit Fetal Alcohol Spectrum Disorders 492.10(FASD) outreach prevention programs 492.11in Olmsted County. This is a onetime 492.12appropriation.492.13Base Adjustment. The general fund base is 492.14decreased by $480,000 in fiscal year 2016 492.15and $480,000 in fiscal year 2017.492.16EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.492.17    Sec. 6. EFFECTIVE DATE.492.18Sections 1 and 2 are effective the day following final enactment.