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 adding 1.25a subdivision; 153.16, by adding a subdivision; 154.11, as amended; 155A.27, by 1.26adding a subdivision; 161.14, by adding a subdivision; 165.15, subdivision 2; 1.27169.011, by adding a subdivision; 169.06, subdivision 4, by adding a subdivision; 1.28169.14, subdivision 5d, by adding a subdivision; 169.305, subdivision 1; 169.826, 1.29by adding a subdivision; 169.8261, by adding a subdivision; 169.86, subdivision 1.305; 169.863, by adding a subdivision; 169.865, subdivisions 1, 2, by adding a 1.31subdivision; 169.866, subdivision 3, by adding a subdivision; 171.02, subdivision 1.323; 171.06, subdivision 2; 174.02, by adding a subdivision; 174.56, subdivision 1.331; 181.940, subdivision 2; 181A.07, 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 3, 4, 2.225; 124D.531, subdivision 1; 124D.862, subdivisions 1, 2; 125A.11, subdivision 2.231; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05, 2.24subdivision 15; 126C.10, subdivisions 2a, 2d, 13a, 24, 31; 126C.17, subdivisions 2.256, 7b, 9, 9a; 126C.40, subdivision 1; 126C.44; 126C.48, subdivision 8; 127A.47, 2.26subdivision 7; 127A.70, subdivision 2; 145.4716, subdivision 2; 148B.17, 2.27subdivision 2; 174.12, subdivision 2; 174.42, subdivision 2; 245.8251; 245A.03, 2.28subdivision 7; 245A.042, subdivision 3; 245A.16, subdivision 1; 245C.08, 2.29subdivision 1; 245D.02, subdivisions 3, 4b, 8b, 11, 15b, 29, 34, 34a, by adding a 2.30subdivision; 245D.03, subdivisions 1, 2, 3, by adding a subdivision; 245D.04, 2.31subdivision 3; 245D.05, subdivisions 1, 1a, 1b, 2, 4, 5; 245D.051; 245D.06, 2.32subdivisions 1, 2, 4, 6, 7, 8; 245D.071, subdivisions 3, 4, 5; 245D.081, subdivision 2.332; 245D.09, subdivisions 3, 4a; 245D.091, subdivisions 2, 3, 4; 245D.10, 2.34subdivisions 3, 4; 245D.11, subdivision 2; 256B.04, subdivision 21; 256B.055, 2.35subdivision 1; 256B.06, subdivision 4; 256B.0625, subdivisions 17, 18e; 2.36256B.0949, subdivision 11; 256B.439, subdivisions 1, 7; 256B.441, subdivisions 2.3753, 63; 256B.4912, subdivision 1; 256B.4913, subdivision 4a; 256B.4914, 2.38subdivisions 2, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision 34; 2.39256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24, by 2.40adding subdivisions; 256J.21, subdivision 3; 256J.30, subdivision 9; 256N.02, by 2.41adding a subdivision; 256N.21, subdivision 2, by adding a subdivision; 256N.22, 2.42subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4; 256N.24, subdivisions 9, 10; 2.43256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 256N.27, subdivision 4; 2.44326A.04, subdivision 5; Laws 2008, chapter 363, article 5, section 4, subdivision 2.457, as amended; Laws 2009, chapter 83, article 1, section 10, subdivision 7; Laws 2.462010, chapter 189, sections 15, subdivision 12; 26, subdivision 4; Laws 2012, 2.47chapter 247, article 4, section 47; Laws 2012, chapter 287, article 2, sections 1; 2.483; Laws 2012, First Special Session chapter 1, article 1, section 28; Laws 2013, 2.49chapter 1, section 6, as amended; Laws 2013, chapter 85, article 1, section 3, 2.50subdivisions 2, 6; Laws 2013, chapter 86, article 1, sections 12, subdivisions 1, 3, 2.514, 6, 7; 13; Laws 2013, chapter 99, article 3, section 3; Laws 2013, chapter 108, 2.52article 1, section 24; article 7, section 49; article 14, sections 2, subdivisions 1, 3, 2.534, as amended, 5, 6, as amended; 3, subdivisions 1, 4; 4, subdivision 8; 12; Laws 2.542013, chapter 114, article 3, section 3, subdivision 6; article 4, section 47; Laws 2.552013, chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 3, 2.56section 37, subdivisions 3, 4, 5, 6, 8, 15, 20; article 4, section 9, subdivision 2; 2.57article 5, section 31, subdivisions 2, 3, 4, 5, 8; article 6, section 12, subdivisions 2.582, 3, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, 3.1subdivisions 2, 3, 4, 8, 9, 10, 11, 14; article 9, section 2; Laws 2013, chapter 117, 3.2article 1, sections 3, subdivisions 2, 3, 6; 4; 5, subdivisions 2, 3, 4; Laws 2013, 3.3chapter 143, article 11, section 10; proposing coding for new law in Minnesota 3.4Statutes, chapters 3; 18B; 87A; 92; 103G; 123A; 123B; 129C; 135A; 136A; 144; 3.5144A; 148; 168; 171; 197; 219; 256L; 268A; 299A; 473; proposing coding for 3.6new law as Minnesota Statutes, chapter 256P; repealing Minnesota Statutes 3.72012, sections 116J.997; 123B.71, subdivision 1; 256.969, subdivisions 2c, 8b, 3.89a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 3, 4; 256D.06, 3.9subdivision 1b; 256D.08, subdivision 2; 256D.405, subdivisions 1a, 2; 256J.08, 3.10subdivisions 42, 55a, 82a; 256J.20; 256J.24, subdivision 9; 256J.32, subdivisions 3.112, 3, 4, 5a, 6, 7, 7a, 8; Minnesota Statutes 2013 Supplement, sections 256B.0625, 3.12subdivision 18f; 256J.08, subdivision 24; 256N.26, subdivision 7; Laws 2010, 3.13chapter 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 161.14, is amended by adding a 47.16subdivision to read:47.17    Subd. 74.Trooper Glen Skalman Memorial Highway.That segment of signed 47.18U.S. Highway 61 from the intersection with signed U.S. Highway 8 in Forest Lake to 47.19the intersection with 260th Street in Wyoming is designated as "Trooper Glen Skalman 47.20Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable 47.21design to mark this highway and erect appropriate signs in the vicinity of the location 47.22where Trooper Skalman died.47.23EFFECTIVE DATE.This section is effective the day following final enactment.47.24    Sec. 2. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:47.25    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the 47.26account may be used by the commissioner of transportation for operations and routine 47.27maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive 47.28repairs. No money from this account may be used for any purposes except those described 47.29in this section, and no money from this account may be transferred to any other account 47.30in the state treasury without specific legislative authorization. Any money transferred 47.31from the trunk highway fund may only be used for trunk highway purposes. For the 47.32purposes of this section:48.1(1) "Income" is the amount of interest on debt securities and dividends on equity 48.2securities. Any gains or losses from the sale of securities must be added to the principal 48.3of the account.48.4(2) "Routine maintenance" means activities that are predictable and repetitive, but 48.5not activities that would constitute major repairs or rehabilitation.48.6(b) Investment management fees incurred by the State Board of Investment are 48.7eligible expenses for reimbursement from the account.48.8(c) The commissioner of transportation has authority to approve or deny expenditures 48.9of funds in the account.48.10    Sec. 3. [168.1299] MINNESOTA GOLF PLATES.48.11    Subdivision 1.Issuance and design.Notwithstanding section 168.1293, the 48.12commissioner shall issue special Minnesota golf plates or a single motorcycle plate to 48.13an applicant who:48.14(1) is a registered owner of a passenger automobile, one-ton pickup truck, 48.15motorcycle, or recreational vehicle;48.16(2) pays a fee of $10 and any other fees required by this chapter;48.17(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota 48.18Section PGA Foundation account; and48.19(4) complies with this chapter and rules governing registration of motor vehicles 48.20and licensing of drivers.48.21    Subd. 2.Design.After consultation with the Minnesota Section PGA and the 48.22Minnesota Golf Association, the commissioner shall design the special plate.48.23    Subd. 3.Plates transfer.On payment of a fee of $5, plates issued under this section 48.24may be transferred to another passenger automobile, one-ton pickup truck, motorcycle, 48.25or other recreational vehicle registered to the individual to whom the special plates were 48.26issued.48.27    Subd. 4.Fees.Fees collected under subdivision 1, clause (2), and subdivision 3 are 48.28credited to the vehicle services operating account in the special revenue fund.48.29    Subd. 5.Contributions.Contributions collected under subdivision 1, clause (3), 48.30are credited first to the commissioner of public safety for the cost of administering the 48.31Minnesota Section PGA Foundation account, which is established in the special revenue 48.32fund. After the commissioner's administration costs are paid each year, remaining 48.33contributions are credited to the Minnesota Section PGA Foundation account. Money in 48.34the account is appropriated to the commissioner of public safety for distribution to the 49.1Minnesota Section PGA Foundation, to be used to enhance and promote the game of 49.2golf throughout Minnesota.49.3EFFECTIVE DATE.Subdivisions 1 to 4 are effective January 1, 2015, for special 49.4Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.49.5    Sec. 4. Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision 49.6to read:49.7    Subd. 95.Work zone."Work zone" means a segment of street or highway for which:49.8(1) a road authority or its agent is constructing, reconstructing, or maintaining the 49.9physical structure of the roadway, which may include, but is not limited to, shoulders, 49.10features adjacent to the roadway, and utilities and highway appurtenances, whether 49.11underground or overhead; and49.12(2) any of the following applies:49.13(i) official traffic-control devices that indicate the segment of street or highway under 49.14construction, reconstruction, or maintenance, are erected;49.15(ii) one or more lanes of traffic are closed;49.16(iii) a flagger under section 169.06, subdivision 4a, is present;49.17(iv) a construction zone speed limit under section 169.14, subdivision 4, is 49.18established; or49.19(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.49.20EFFECTIVE DATE.This section is effective August 1, 2014.49.21    Sec. 5. Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:49.22    Subd. 4. Obedience to traffic-control signal or flagger authorized persons; 49.23presumptions. (a) The driver of any vehicle shall obey the instructions of any official 49.24traffic-control device applicable thereto placed in accordance with the provisions of this 49.25chapter, unless otherwise directed by a police officer or by a flagger authorized under this 49.26subdivision, subject to the exceptions granted the driver of an authorized emergency 49.27vehicle in this chapter.49.28(b) No provision of this chapter for which official traffic-control devices are required 49.29shall be enforced against an alleged violator if at the time and place of the alleged 49.30violation an official device is not in proper position and sufficiently legible to be seen by 49.31an ordinarily observant person. Whenever a particular section does not state that official 49.32traffic-control devices are required, such section shall be effective even though no devices 49.33are erected or in place.50.1(c) Whenever official traffic-control devices are placed in position approximately 50.2conforming to the requirements of this chapter, such devices shall be presumed to have 50.3been so placed by the official act or direction of lawful authority, unless the contrary 50.4shall be established by competent evidence.50.5(d) Any official traffic-control device placed pursuant to the provisions of this 50.6chapter and purporting to conform to the lawful requirements pertaining to such devices 50.7shall be presumed to comply with the requirements of this chapter, unless the contrary 50.8shall be established by competent evidence.50.9(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place 50.10until it is safe for the vehicles to proceed. A person operating a motor vehicle that has 50.11been stopped by a flagger in a designated work zone may proceed after stopping only on 50.12instruction by the flagger.50.13(f) An overdimensional load escort driver with a certificate issued under section 50.14299D.085
         , while acting as a flagger escorting a legal overdimensional load, may stop 50.15vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person 50.16operating a motor vehicle that has been stopped by an escort driver acting as a flagger may 50.17proceed only on instruction by the flagger or a police officer.50.18(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to 50.19proceed, if the person: (1) holds a motorcycle road guard certificate issued under section 50.20171.60
         ; (2) meets the safety and equipment standards for operating under the certificate; 50.21(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory 50.22or home rule charter city through which the motorcycle group is proceeding; and (5) 50.23has obtained consent from the chief of police, or the chief's designee, of any city of the 50.24first class through which the group is proceeding. A flagger operating as provided under 50.25this paragraph may direct operators of motorcycles within a motorcycle group ride or 50.26other vehicle traffic, notwithstanding any contrary indication of a traffic-control device, 50.27including stop signs or traffic-control signals. A person operating a vehicle that has been 50.28stopped by a flagger under this paragraph may proceed only on instruction by the flagger 50.29or a police officer.50.30EFFECTIVE DATE.This section is effective August 1, 2014.50.31    Sec. 6. Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision 50.32to read:50.33    Subd. 4a.Obedience to work zone flagger; violation, penalty.(a) A flagger in a 50.34work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to 51.1proceed. A person operating a motor vehicle that has been stopped by a flagger in a work 51.2zone may proceed after stopping only on instruction by the flagger or a police officer.51.3(b) A person convicted of operating a motor vehicle in violation of a speed limit 51.4in a work zone, or any other provision of this section while in a work zone, shall be 51.5required to pay a fine of $300. This fine is in addition to the surcharge under section 51.6357.021, subdivision 6.51.7(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the 51.8vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty 51.9misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may 51.10not be fined under this paragraph if (1) another person is convicted for that violation, or (2) 51.11the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a 51.12lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.51.13(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle 51.14operator for violating paragraph (a).51.15(e) A violation under paragraph (c) does not constitute grounds for revocation or 51.16suspension of a driver's license.51.17EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 51.18violations committed on or after that date.51.19    Sec. 7. Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:51.20    Subd. 5d. Speed zoning limit in work zone; surcharge when workers present.51.21(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a 51.22road having an established speed limit of 50 miles per hour or greater is adjusted to 45 51.23miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is 51.24closed in either direction, and (2) workers are present. A speed in excess of the adjusted 51.25speed limit is unlawful.51.26(b) Paragraph (a) does not apply to a segment of road in which:51.27(1) positive barriers are placed between workers and the traveled portion of the 51.28highway;51.29(2) the work zone is in place for less than 24 hours;51.30(3) a different speed limit for the work zone is determined by the road authority 51.31following an engineering and traffic investigation and based on accepted engineering 51.32practice; or51.33(4) a different speed limit for the work zone is established by the road authority 51.34under paragraph (c).52.1(c) The commissioner, on trunk highways and temporary trunk highways, and 52.2local authorities, on streets and highways under their jurisdiction, may authorize the use 52.3of reduced maximum speed limits in highway work zones. The commissioner or local 52.4authority is not required to conductwhen workers are present, without an engineering and 52.5traffic investigation before authorizing a reduced speed limit in a highway work zone52.6 required. The work zone speed limit must not reduce the speed limit on the affected 52.7street or highway by more than:52.8(b) The minimum highway work zone speed limit is 20 miles per hour. The work 52.9zone speed limit must not reduce the established speed limit on the affected street or 52.10highway by more than 15 miles per hour, except that the highway work zone speed limit 52.11must not exceed 40 miles per hour. The commissioner or local authority shall post the limits 52.12of the work zone. Highway work zone speed limits are effective on erection of appropriate 52.13regulatory speed limit signs. The signs must be removed or covered when they are not 52.14required. A speed greater than the posted highway work zone speed limit is unlawful.52.15(c) Notwithstanding paragraph (b), on divided highways the commissioner or local 52.16authority may establish a highway work zone speed limit that does not exceed 55 miles 52.17per hour.52.18(d) Notwithstanding paragraph (b), on two-lane highways having one lane for 52.19each direction of travel with a posted speed limit of 60 miles per hour or greater, the 52.20commissioner or local authority may establish a highway work zone speed limit that 52.21does not exceed 40 miles per hour.52.22(e) For purposes of this subdivision, "highway work zone" means a segment of 52.23highway or street where a road authority or its agent is constructing, reconstructing, or 52.24maintaining the physical structure of the roadway, its shoulders, or features adjacent to 52.25the roadway, including underground and overhead utilities and highway appurtenances, 52.26when workers are present.52.27(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person 52.28who violates a speed limit established under this subdivision, or who violates any other 52.29provision of this section while in a highway work zone, is assessed an additional surcharge 52.30equal to the amount of the fine imposed for the speed violation, but not less than $25.52.31(1) 20 miles per hour on a street or highway having an established speed limit of 52.3255 miles per hour or greater; and52.33(2) 15 miles per hour on a street or highway having an established speed limit of 52.3450 miles per hour or less.53.1(d) A work zone speed limit under paragraph (c) is effective on erection of 53.2appropriate regulatory speed limit signs. The signs must be removed or covered when 53.3they are not required. A speed in excess of the posted work zone speed limit is unlawful.53.4(e) For any speed limit under this subdivision, a road authority shall erect signs 53.5identifying the speed limit and indicating the beginning and end of the speed limit zone.53.6EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 53.7violations committed on or after that date.53.8    Sec. 8. Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision 53.9to read:53.10    Subd. 6a.Work zone speed limit violations.A person convicted of operating a 53.11motor vehicle in violation of a speed limit in a work zone, or any other provision of 53.12this section while in a work zone, shall be required to pay a fine of $300. This fine is in 53.13addition to the surcharge under section 357.021, subdivision 6. 53.14EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 53.15violations committed on or after that date.53.16    Sec. 9. Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:53.17    Subdivision 1. Entrance and exit; crossover; use regulations; signs; rules. (a) No 53.18person shall drive a vehicle onto or from any controlled-access highway except at such 53.19entrances and exits as are established by public authority.53.20(b) When special crossovers between the main roadways of a controlled-access 53.21highway are provided for emergency vehicles or maintenance equipment and such 53.22crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except 53.23an emergency vehicle, maintenance equipment, or construction equipment including 53.24contractor's and state-owned equipment when operating within a marked construction 53.25zone, or a vehicle operated by a commercial vehicle inspector of the Department of 53.26Public Safety or certified under section 169.781, to use such crossover. Vehicles owned 53.27and operated by elderly and needy persons under contract with the commissioner of 53.28transportation pursuant to section 
         160.282 for maintenance services on highway rest 53.29stop and tourist centers outside the seven-county metropolitan area as defined in section 53.30473.121
         , may also use these crossovers while those persons are proceeding to or from 53.31work in the rest area or tourist center if authorized by the commissioner, and the vehicle 53.32carries on its roof a distinctive flag designed and issued by the commissioner. For the 54.1purposes of this clause "emergency vehicle" includes a tow truck or towing vehicle if it is 54.2on the way to the location of an accident or a disabled vehicle.54.3(c) The commissioner of transportation may by order, and any public authority may 54.4by ordinance, with respect to any controlled-access highway under their jurisdictions 54.5prohibit or regulate the use of any such highway by pedestrians, bicycles, or other 54.6nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is 54.7found to be incompatible with the normal and safe flow of traffic.54.8(d) The commissioner of transportation or the public authority adopting any such 54.9prohibitory rules shall erect and maintain official signs on the controlled-access highway 54.10on which such rules are applicable and when so erected no person shall disobey the 54.11restrictions stated on such signs.54.12    Sec. 10. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision 54.13to read:54.14    Subd. 7.Expiration date.Upon request of the permit applicant the expiration 54.15date for a permit issued under this section must be the same as the expiration date of the 54.16permitted vehicle's registration.54.17EFFECTIVE DATE.This section is effective November 30, 2016, and applies 54.18to permits issued on and after that date.54.19    Sec. 11. Minnesota Statutes 2012, section 169.8261, is amended by adding a 54.20subdivision to read:54.21    Subd. 3.Expiration date.Upon request of the permit applicant the expiration 54.22date for a permit issued under this section must be the same as the expiration date of the 54.23permitted vehicle's registration.54.24EFFECTIVE DATE.This section is effective November 30, 2016, and applies 54.25to permits issued on and after that date.54.26    Sec. 12. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:54.27    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with 54.28respect to highways under the commissioner's jurisdiction, may charge a fee for each 54.29permit issued. The fee for an annual permit that expires by law on the date of the 54.30vehicle registration expiration must be based on the proportion of the year that remains 54.31until the expiration date. Unless otherwise specified, all fees for permits issued by the 54.32commissioner of transportation must be deposited in the state treasury and credited to 55.1the trunk highway fund. Except for those annual permits for which the permit fees are 55.2specified elsewhere in this chapter, the fees are:55.3    (a) $15 for each single trip permit.55.4    (b) $36 for each job permit. A job permit may be issued for like loads carried on 55.5a specific route for a period not to exceed two months. "Like loads" means loads of the 55.6same product, weight, and dimension.55.7    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive 55.8months. Annual permits may be issued for:55.9    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety 55.10or well-being of the public;55.11    (2) motor vehicles that travel on interstate highways and carry loads authorized 55.12under subdivision 1a;55.13    (3) motor vehicles operating with gross weights authorized under section 
         169.826, 55.14subdivision 1a
         ;55.15    (4) special pulpwood vehicles described in section 
         169.863;55.16    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;55.17    (6) noncommercial transportation of a boat by the owner or user of the boat;55.18    (7) motor vehicles carrying bales of agricultural products authorized under section 55.19169.862
         ; and55.20(8) special milk-hauling vehicles authorized under section 
         169.867.55.21    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12 55.22consecutive months. Annual permits may be issued for:55.23    (1) mobile cranes;55.24    (2) construction equipment, machinery, and supplies;55.25    (3) manufactured homes and manufactured storage buildings;55.26    (4) implements of husbandry;55.27    (5) double-deck buses;55.28    (6) commercial boat hauling and transporting waterfront structures, including, but 55.29not limited to, portable boat docks and boat lifts;55.30    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers 55.31for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however, 55.32the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer 55.33only while operating on twin-trailer routes designated under section 
         169.81, subdivision 3, 55.34paragraph (c); and55.35(8) vehicles operating on that portion of marked Trunk Highway 36 described in 55.36section 
         169.81, subdivision 3, paragraph (e).56.1    (e) For vehicles that have axle weights exceeding the weight limitations of sections 56.2169.823
          to 
         169.829, an additional cost added to the fees listed above. However, this 56.3paragraph applies to any vehicle described in section 
         168.013, subdivision 3, paragraph 56.4(b), but only when the vehicle exceeds its gross weight allowance set forth in that 56.5paragraph, and then the additional cost is for all weight, including the allowance weight, 56.6in excess of the permitted maximum axle weight. The additional cost is equal to the 56.7product of the distance traveled times the sum of the overweight axle group cost factors 56.8shown in the following chart:

56.9Overweight Axle Group Cost Factors56.10Weight (pounds)Cost Per Mile For Each Group Of:56.1156.1256.1356.1456.15exceeding 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 less56.160-2,000.12.05.0456.172,001-4,000.14.06.0556.184,001-6,000.18.07.0656.196,001-8,000.21.09.0756.208,001-10,000.26.10.0856.2110,001-12,000.30.12.0956.2256.2312,001-14,000Not 
                  		permitted.14.1156.2456.2514,001-16,000Not 
                  		permitted.17.1256.2656.2716,001-18,000Not 
                  		permitted.19.1556.2856.2918,001-20,000Not 
                  		permittedNot 
                  		permitted.1656.3056.3120,001-22,000Not 
                  		permittedNot 
                  		permitted.20

56.32The amounts added are rounded to the nearest cent for each axle or axle group. The 56.33additional cost does not apply to paragraph (c), clauses (1) and (3).56.34For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile 56.35fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed 56.36in addition to the normal permit fee. Miles must be calculated based on the distance 56.37already traveled in the state plus the distance from the point of detection to a transportation 56.38loading site or unloading site within the state or to the point of exit from the state.56.39    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight, 56.40or oversize and overweight, mobile cranes; construction equipment, machinery, and 57.1supplies; implements of husbandry; and commercial boat hauling. The fees for the permit 57.2are as follows:

57.3Gross Weight (pounds) of VehicleAnnual Permit Fee 57.490,000or less $20057.590,001- 100,000$30057.6100,001- 110,000$40057.7110,001- 120,000$50057.8120,001- 130,000$60057.9130,001- 140,000$70057.10140,001- 145,000$80057.11145,001- 155,000$900

57.12If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined 57.13under paragraph (e).57.14    (g) For vehicles which exceed the width limitations set forth in section 
         169.80 by 57.15more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) 57.16when the permit is issued while seasonal load restrictions pursuant to section 
         169.87 are 57.17in effect.57.18    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for 57.19refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on 57.20a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 
         169.828, 57.21subdivision 2
         , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds 57.22on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.57.23    (i) $300 for a motor vehicle described in section 
         169.8261. The fee under this 57.24paragraph must be deposited as follows:57.25    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for 57.26costs related to administering the permit program and inspecting and posting bridges; and57.27    (2) all remaining money in each fiscal year must be deposited in the bridge 57.28inspection and signing account as provided under subdivision 5b.57.29    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating 57.30under authority of section 
         169.824, subdivision 2, paragraph (a), clause (2).57.31EFFECTIVE DATE.This section is effective November 30, 2016, and applies 57.32to permits issued on and after that date.57.33    Sec. 13. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision 57.34to read:57.35    Subd. 3.Expiration date.Upon request of the permit applicant the expiration 57.36date for a permit issued under this section must be the same as the expiration date of the 57.37permitted vehicle's registration.58.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies 58.2to permits issued on and after that date.58.3    Sec. 14. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:58.4    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit 58.5authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw 58.6or unprocessed agricultural products and be operated with a gross vehicle weight of up to:58.7    (1) 90,000 pounds; and58.8    (2) 99,000 pounds during the period set by the commissioner under section 
         169.826, 58.9subdivision 1
         .58.10    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or 58.11combination of vehicles operated under this subdivision and transporting only sealed 58.12intermodal containers may be operated on an interstate highway if allowed by the United 58.13States Department of Transportation.58.14    (c) The fee for a permit issued under this subdivision is $300, or a proportional 58.15amount as provided in section 169.86, subdivision 5.58.16EFFECTIVE DATE.This section is effective November 30, 2016, and applies 58.17to permits issued on and after that date.58.18    Sec. 15. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:58.19    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit 58.20authorizing a vehicle or combination of vehicles with a total of seven or more axles to 58.21haul raw or unprocessed agricultural products and be operated with a gross vehicle weight 58.22of up to:58.23    (1) 97,000 pounds; and58.24    (2) 99,000 pounds during the period set by the commissioner under section 
         169.826, 58.25subdivision 1
         .58.26    (b) Drivers of vehicles operating under this subdivision must comply with driver 58.27qualification requirements adopted under section 
         221.0314, subdivisions 2 to 5, and Code 58.28of Federal Regulations, title 49, parts 40 and 382.58.29    (c) The fee for a permit issued under this subdivision is $500, or a proportional 58.30amount as provided in section 169.86, subdivision 5.58.31EFFECTIVE DATE.This section is effective November 30, 2016, and applies 58.32to permits issued on and after that date.59.1    Sec. 16. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision 59.2to read:59.3    Subd. 5.Expiration date.Upon request of the permit applicant the expiration 59.4date for a permit issued under this section must be the same as the expiration date of the 59.5permitted vehicle's registration.59.6EFFECTIVE DATE.This section is effective November 30, 2016, and applies 59.7to permits issued on and after that date.59.8    Sec. 17. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:59.9    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1 59.10must be annual permits. The fee is $850 for each vehicle, or a proportional amount as 59.11provided in section 169.86, subdivision 5, and must be deposited in the trunk highway 59.12fund. An amount sufficient to administer the permit program is appropriated from the 59.13trunk highway fund to the commissioner for the costs of administering the permit program.59.14EFFECTIVE DATE.This section is effective November 30, 2016, and applies 59.15to permits issued on and after that date.59.16    Sec. 18. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision 59.17to read:59.18    Subd. 4.Expiration date.Upon request of the permit applicant the expiration 59.19date for a permit issued under this section must be the same as the expiration date of the 59.20permitted vehicle's registration.59.21EFFECTIVE DATE.This section is effective November 30, 2016, and applies 59.22to permits issued on and after that date.59.23    Sec. 19. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:59.24    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any 59.25public roadway by any person who does not possess a valid driver's license, unless the 59.26person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 59.27permit from the commissioner of public safety. The operator's permit may be issued to 59.28any person who has attained the age of 15 years and who has passed the examination 59.29prescribed by the commissioner. The instruction permit may be issued to any person who 59.30has attained the age of 15 years and who has successfully completed an approved safety 59.31course and passed the written portion of the examination prescribed by the commissioner.59.32    (b) This course must consist of, but is not limited to, a basic understanding of:60.1    (1) motorized bicycles and their limitations;60.2    (2) motorized bicycle laws and rules;60.3    (3) safe operating practices and basic operating techniques;60.4    (4) helmets and protective clothing;60.5    (5) motorized bicycle traffic strategies; and60.6    (6) effects of alcohol and drugs on motorized bicycle operators.60.7    (c) The commissioner may adopt rules prescribing the content of the safety course, 60.8examination, and the information to be contained on the permits. A person operating a 60.9motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 60.10by section 
         169.974, subdivision 2, on operation of a motorcycle under a two-wheel 60.11instruction permit.60.12    (d) The fees for motorized bicycle operator's permits are as follows:

60.13(1)Examination and operator's permit, valid for one year$6.7560.14(2)Duplicate$3.7560.1560.16(3) (1)Renewal Motorized bicycle operator's permit before age 21 and 
                  		valid until age 21$9.7560.17(4) (2)Renewal permit age 21 or older and valid for four years$15.7560.18(5) (3)Duplicate of any renewal permit$5.2560.19(6) (4)Written examination and instruction permit, valid for 30 days$6.75

60.20    Sec. 20. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:60.21    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are 60.22as follows:

60.23Classified Driver's LicenseD-$17.25C-$21.25B-$28.25A-$36.2560.24Classified Under-21 D.L.D-$17.25C-$21.25B-$28.25A-$16.2560.25Enhanced Driver's LicenseD-$32.25C-$36.25B-$43.25A-$51.2560.26Instruction Permit$5.2560.2760.28Enhanced Instruction 
                  		Permit$20.2560.2960.30Commercial Learner's Permit$2.5060.31Provisional License$8.2560.3260.33Enhanced Provisional 
                  		License$23.2560.3460.3560.36Duplicate License or 
                  		duplicate identification 
                  		card$6.7560.3760.3860.3960.40Enhanced Duplicate 
                  		License or enhanced 
                  		duplicate identification 
                  		card$21.7561.161.261.361.461.561.661.7Minnesota identification 
                  		card or Under-21 
                  		Minnesota identification 
                  		card, other than duplicate, 
                  		except as otherwise 
                  		provided in section 
                  171.07, 
                     		subdivisions 3
                   and 3a$11.2561.861.9Enhanced Minnesota 
                  		identification card$26.25

61.10In addition to each fee required in this paragraph, the commissioner shall collect a 61.11surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 61.122016. Surcharges collected under this paragraph must be credited to the driver and vehicle 61.13services technology account in the special revenue fund under section 
         299A.705.61.14    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and 61.15has a driving record free of (1) convictions for a violation of section 
         169A.20, 
         169A.33, 61.16169A.35
         , or sections 
         169A.50 to 
         169A.53, (2) convictions for crash-related moving 61.17violations, and (3) convictions for moving violations that are not crash related, shall have a 61.18$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 61.19has the meaning given it in section 
         171.04, subdivision 1.61.20    (c) In addition to the driver's license fee required under paragraph (a), the 61.21commissioner shall collect an additional $4 processing fee from each new applicant 61.22or individual renewing a license with a school bus endorsement to cover the costs for 61.23processing an applicant's initial and biennial physical examination certificate. The 61.24department shall not charge these applicants any other fee to receive or renew the 61.25endorsement.61.26(d) In addition to the fee required under paragraph (a), a driver's license agent may 61.27charge and retain a filing fee as provided under section 
         171.061, subdivision 4.61.28(e) In addition to the fee required under paragraph (a), the commissioner shall 61.29charge a filing fee at the same amount as a driver's license agent under section 
         171.061, 61.30subdivision 4. Revenue collected under this paragraph must be deposited in the driver 61.31services operating account.61.32(f) An application for a Minnesota identification card, instruction permit, provisional 61.33license, or driver's license, including an application for renewal, must contain a provision 61.34that allows the applicant to add to the fee under paragraph (a), a $2 donation for the 61.35purposes of public information and education on anatomical gifts under section 
         171.075.61.36    Sec. 21. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL 61.37CONFORMITY.62.1    Subdivision 1.Conformity with federal law.The commissioner of public safety 62.2shall ensure the programs and policies related to commercial drivers' licensure and the 62.3operation of commercial motor vehicles in Minnesota conform with the requirements of 62.4Code of Federal Regulations, title 49, part 383.62.5    Subd. 2.Conflicts.To the extent a requirement of sections 171.162 to 171.169, or 62.6any other state or local law, conflicts with a provision of Code of Federal Regulations, title 62.749, part 383, the federal provision prevails.62.8    Sec. 22. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision 62.9to read:62.10    Subd. 10.Products and services; billing.The commissioner of transportation may 62.11bill operations units of the department for costs of centrally managed products or services 62.12that benefit multiple operations units. These costs may include equipment acquisition and 62.13rental, labor, materials, and other costs determined by the commissioner. Receipts must be 62.14credited to the special products and services account, which is established in the trunk 62.15highway fund, and are appropriated to the commissioner to pay the costs for which the 62.16billings are made. 62.17    Sec. 23. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is 62.18amended to read:62.19    Subd. 2. Transportation economic development accounts. (a) A transportation 62.20economic development account is established in the special revenue fund under the 62.21budgetary jurisdiction of the legislative committees having jurisdiction over transportation 62.22finance. Money in the account may be expended only as appropriated by law. The account 62.23may not contain money transferred or otherwise provided from the trunk highway fund.62.24(b) A transportation economic development account is established in the trunk 62.25highway fund. The account consists of funds donated, allotted, transferred, or otherwise 62.26provided to the account. Money in the account may be used only for trunk highway 62.27purposes. All funds in the account available prior to August 1, 2013, are available until 62.28expended.62.29    Sec. 24. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is 62.30amended to read:62.31    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner 62.32shall obtain a total amount in federal authorizations for reimbursement on transportation 62.33alternatives projects that is equal to or greater than the annual average of federal 63.1authorizations on transportation alternatives projects calculated over the preceding four63.2 federal fiscal years 2010 to 2012.63.3EFFECTIVE DATE.This section is effective the day following final enactment and 63.4applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.63.5    Sec. 25. Minnesota Statutes 2012, section 174.56, subdivision 1, is amended to read:63.6    Subdivision 1. Report required. (a) The commissioner of transportation shall 63.7submit a report by December 15 of each year on (1) the status of major highway projects 63.8completed during the previous two years or under construction or planned during the year 63.9of the report and for the ensuing 15 years, and (2) trunk highway fund expenditures, 63.10and (3) beginning with the report due in 2016, efficiencies achieved during the previous 63.11two fiscal years.63.12(b) For purposes of this section, a "major highway project" is a highway project that 63.13has a total cost for all segments that the commissioner estimates at the time of the report 63.14to be at least (1) $15,000,000 in the metropolitan highway construction district, or (2) 63.15$5,000,000 in any nonmetropolitan highway construction district.63.16    Sec. 26. [219.375] RAILROAD YARD LIGHTING.63.17    Subdivision 1.General requirements.(a) All railroad common carriers, and their 63.18officers, agents, and employees, operating a railroad in this state are required to maintain 63.19lighting between sunset and sunrise above switches in railroad yards where from one 63.20half-hour before sunset to one half-hour after sunrise:63.21(1) cars or locomotives are switched or inspected; or63.22(2) cars are switched to assemble or disassemble trains.63.23Railroad common carriers shall provide lighting immediately adjacent to those portions 63.24of railroad yard tracks where railroad common carrier employees frequently work on 63.25the ground performing switching, inspection, and repair activities. For purposes of this 63.26section, "frequently work" means at least five days per week.63.27(b) Railroad yard lighting over switches and inspection areas must:63.28(1) conform with the guidelines set forth by the American Railway Engineering 63.29and Manufacturing Association (AREMA);63.30(2) be displayed only at times when activities related to switching, inspection, 63.31assembly, and disassembly of trains are taking place;63.32(3) be turned off when not needed;63.33(4) include at least one lighting source for each two-yard track switch segment; and64.1(5) be displayed from a height of at least 30 feet above the railroad yard lead-track 64.2area.64.3(c) Lighting over switches and other light sources within railroad yards or at other 64.4railroad locations must be:64.5(1) maintained to illuminate as designed by the railroad or licensed contractor;64.6(2) compliant with the Minnesota Electrical Code; 64.7(3) kept clear of obstructions; and64.8(4) focused on the railroad common carrier property designed to be illuminated.64.9(d) The energy source for lighting is permitted, though not required, to:64.10(1) be direct wired from a carrier facility power source, have solar panel power with 64.11a battery storage source, or have another constant energy source; or64.12(2) be designed to have standard or light-emitting diode fixtures or electrical circuits 64.13that include power saving or ambient atmosphere actuating switches.64.14(e) Railroad common carriers must replace damaged or nonoperative lighting within 64.1548 hours after light source damage has been reported to the carrier.64.16    Subd. 2.Allowances for unusual conditions.Railroad common carriers are not 64.17required to comply with the requirements of this section during:64.18(1) maintenance activities;64.19(2) derailments;64.20(3) any period of heavy rain or snow, washouts, or similar weather or seismic 64.21conditions; or 64.22(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no 64.23longer than is necessary to achieve compliance with this section.64.24    Subd. 3.Lighting orders; commissioner authority.(a) When the commissioner 64.25finds that railroad common carrier employees who frequently work immediately adjacent 64.26to a portion of track performing switching, inspection, maintenance, repair, or fueling 64.27activities are exposed to hazard resulting from the lack of lighting, or to the condition of 64.28lighting constructed before July 1, 2014, the commissioner may order a railroad common 64.29carrier to construct lighting adjacent to a portion of track where employees are performing 64.30switching, inspection, maintenance, repair or fueling activities, or require a railroad 64.31common carrier to modify existing  lighting to conform with the standards set forth by 64.32AREMA lighting standards, within a reasonable period of time.64.33(b) A railroad common carrier, person, or corporation may appeal an order under this 64.34subdivision. An appeal under this paragraph is subject to the processes and requirements 64.35of chapter 14.65.1    Subd. 4.Failure to correct.If a railroad common carrier, person, or corporation 65.2fails to correct a violation of this section within the time provided in an order issued by 65.3the commissioner of transportation under subdivision 3, and the railroad common carrier, 65.4person, or corporation does  not appeal the order, the failure to correct the violation as 65.5ordered by the commissioner constitutes a new and separate offense distinct from the 65.6original violation of this section.65.7    Subd. 5.Complaints.No formal complaint of an alleged violation of this section 65.8may be filed until the filing party has attempted to address the alleged violations with the 65.9railroad common carrier. Any complaint of an alleged  violation must contain a written 65.10statement that the filing party has made a reasonable, good faith attempt to address the 65.11alleged violation. 65.12    Subd. 6.Waiver.Upon written request of a railroad common carrier, the 65.13commissioner of transportation may waive any portion of this section if conditions do not 65.14reasonably permit compliance. The commissioner's decision is subject to the requirements 65.15under section 218.041 and shall include an on-site inspection of the area for which the 65.16waiver has been requested. The inspection shall occur between sunset and sunrise, and all 65.17parties of interest shall be permitted to attend.65.18    Subd. 7.Violations and penalties. A railroad common carrier, corporation, or 65.19person who violates this section is liable to a penalty not to exceed $500 for each violation.65.20    Subd. 8.Exceptions; applicability.(a) This section establishes minimum standards 65.21for railroad yard lighting. Nothing in this section shall be construed to preclude design of 65.22railroad yard towers with multiple lighting sources, a brighter lighting design, or other 65.23features that exceed the requirements of this section.65.24(b) This section applies to all Class One and Class Two railroad common carrier 65.25railroad yards. This section does not apply to an entity that owns or operates track in 65.26Minnesota that is not a Class One or Class Two railroad common carrier as classified 65.27by the Federal Railroad Administration.65.28(c) Railroad yards and other locations where lighting exists on July 1, 2014, are 65.29compliant with subdivision 1, paragraphs (b) and (c).65.30EFFECTIVE DATE.This section is effective November 1, 2016.65.31    Sec. 27. [299A.017] STATE SAFETY OVERSIGHT.65.32    Subdivision 1.Office created.The commissioner of public safety shall establish an 65.33Office of State Safety Oversight in the Department of Public Safety for safety oversight of 65.34rail fixed guideway public transportation systems within the state. The commissioner shall 65.35designate a director of the office.66.1    Subd. 2.Authority.The director shall implement and has regulatory authority to 66.2enforce the requirements for the state set forth in United States Code, title 49, sections 66.35329 and 5330, federal regulations adopted pursuant to those sections, and successor or 66.4supplemental requirements.66.5    Sec. 28. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:66.6    Subdivision 1. Authorized programs within department. From the revenues 66.7appropriated from the fire safety account, established under section 297I.06, subdivision 66.83, the commissioner of public safety may expend funds for the activities and programs 66.9identified by the advisory committee established under subdivision 2 and recommended 66.10to the commissioner of public safety. The commissioner shall not expend funds without 66.11the recommendation of the advisory committee established under subdivision 2. The 66.12commissioner shall not expend funds without the recommendation of the advisory 66.13committee established under subdivision 2. These funds are to be used to provide 66.14resources needed for identified activities and programs of the Minnesota fire service and to 66.15ensure the State Fire Marshal Division responsibilities are fulfilled.66.16    Sec. 29. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:66.17    Subd. 2. Fire Service Advisory Committee.(a) The Fire Service Advisory 66.18Committee shall provide recommendations to the commissioner of public safety on 66.19fire service-related issues and shall consist of representatives of each of the following 66.20organizations: two appointed by the president of the Minnesota State Fire Chiefs 66.21Association, two appointed by the president of the Minnesota State Fire Department 66.22Association, two appointed by the president of the Minnesota Professional Fire Fighters, 66.23two appointed by the president of the League of Minnesota Cities, one appointed by the 66.24president of the Minnesota Association of Townships, one appointed by the president 66.25of the Insurance Federation of Minnesota, one appointed jointly by the presidents of 66.26the Minnesota Chapter of the International Association of Arson Investigators and the 66.27Fire Marshals Association of Minnesota, and the commissioner of public safety or the 66.28commissioner's designee. The commissioner of public safety must ensure that at least 66.29three of the members of the advisory committee work and reside in counties outside of the 66.30seven-county metropolitan area. The committee shall provide funding recommendations 66.31to the commissioner of public safety from the fire safety fund for the following purposes:66.32(1) for the Minnesota Board of Firefighter Training and Education;66.33(2) for programs and staffing for the State Fire Marshal Division; and67.1(3) for fire-related regional response team programs and any other fire service 67.2programs that have the potential for statewide impact.67.3    (b) The committee under paragraph (a) does not expire.67.4    Sec. 30. [473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.67.5    Subdivision 1.Adoption of standards.(a) By January 1, 2015, the Metropolitan 67.6Council shall adopt and may thereafter amend standards for the design of light rail 67.7vehicles that are reasonably necessary to provide access for, and to protect the health and 67.8safety of, persons who use the service. All light rail transit vehicles procured on and after 67.9January 1, 2015, must conform to the standards then in effect.67.10(b) The Transportation Accessibility Advisory Committee must review the standards 67.11and all subsequent amendments before the Metropolitan Council adopts them.67.12(c) The Metropolitan Council shall post adopted standards, including amendments, 67.13on its Web site.67.14    Subd. 2.Minimum standards.Standards adopted under this section must include, 67.15but are not limited to:67.16(1) two dedicated spaces for wheelchair users in each car;67.17(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and67.18(3) further specifications that meet or exceed the standards established in the 67.19Americans with Disabilities Act.67.20    Sec. 31. HIGHWAY 14 TURNBACK.67.21Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or 67.22any other law to the contrary, the commissioner of transportation may:67.23(1) by temporary order, take over the road described as "Old Highway 14" in the 67.24settlement agreement and release executed January 7, 2014, between the state and Waseca 67.25and Steele Counties;67.26(2) expend $35,000,000 or the amount necessary to complete the work required 67.27under the settlement agreement; and67.28(3) upon completion of the work described in the settlement agreement, release "Old 67.29Highway 14" back to Steele and Waseca Counties.67.30Upon completion of the work described in the settlement agreement between the 67.31state and Waseca and Steele Counties, the counties shall accept responsibility for the road 67.32described in the agreement as "Old Highway 14."67.33    Sec. 32. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.68.1    Subdivision 1.Engineering and traffic investigations.The commissioner of 68.2transportation shall perform engineering and traffic investigations on trunk highway 68.3segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per 68.4hour. On determining upon the basis of the investigation that the 55 miles per hour speed 68.5limit can be reasonably and safely increased under the conditions found to exist on any 68.6of the trunk highway segments examined, the commissioner may designate an increased 68.7limit applicable to those segments and erect appropriate signs designating the speed limit. 68.8The new speed limit shall be effective when the signs are erected. Of all the roadways 68.9to be studied under this section, approximately one-fifth must be subject to investigation 68.10each year until the statewide study is complete in 2019.68.11    Subd. 2.Report.By January 15 annually, the commissioner shall provide to 68.12the chairs and ranking minority members of the senate and house of representatives 68.13committees with jurisdiction over transportation policy and finance a list of trunk 68.14highways or segments of trunk highways that were subject to an engineering and safety 68.15investigation in the previous calendar year, specifying in each case the applicable speed 68.16limits before and after the investigation.68.17EFFECTIVE DATE.This section is effective the day following final enactment 68.18and expires on the earlier of January 15, 2019, or the date the final report is submitted to 68.19the legislative committees under this section.68.20    Sec. 33. TRANSPORTATION EFFICIENCIES.68.21The commissioner of transportation shall include in the report under Minnesota 68.22Statutes, section 174.56, due by December 15, 2015, information on efficiencies 68.23implemented in fiscal year 2015 in planning and project management and delivery, 68.24along with an explanation of the efficiencies employed to achieve the savings and the 68.25methodology used in the calculations. The level of savings achieved must equal, in 68.26comparison with the total state road construction budget for that year, a minimum of five 68.27percent in fiscal year 2015. The report must identify the projects that have been advanced 68.28or completed due to the implementation of efficiency measures.68.29    Sec. 34. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE 68.30VERIFICATION.68.31    Subdivision 1.Establishment.The task force on motor vehicle insurance coverage 68.32verification is established to review and evaluate approaches to insurance coverage 68.33verification and recommend legislation to create and fund a program in this state.69.1    Subd. 2.Membership; meetings; staff.(a) The task force shall be composed of 69.213 members, who must be appointed by July 1, 2014, and who serve at the pleasure of 69.3their appointing authorities:69.4(1) the commissioner of public safety or a designee;69.5(2) the commissioner of commerce or a designee;69.6(3) two members of the house of representatives, one appointed by the speaker of the 69.7house and one appointed by the minority leader;69.8(4) two members of the senate, one appointed by the Subcommittee on Committees 69.9of the Committee on Rules and Administration and one appointed by the minority leader;69.10(5) a representative of Minnesota Deputy Registrars Association;69.11(6) a representative of AAA Minnesota;69.12(7) a representative of AARP Minnesota;69.13(8) a representative of the Insurance Federation of Minnesota;69.14(9) a representative of the Minnesota Bankers Association;69.15(10) a representative of the Minnesota Bar Association; and69.16(11) a representative of the Minnesota Police and Peace Officers Association.69.17(b) Compensation and expense reimbursement must be as provided under Minnesota 69.18Statutes, section 15.059, subdivision 3, to members of the task force.69.19(c) The commissioner of public safety shall convene the task force by August 69.201, 2014, and shall appoint a chair from the membership of the task force. Staffing and 69.21technical assistance must be provided by the Department of Public Safety.69.22    Subd. 3.Duties.The task force shall review and evaluate programs established in 69.23other states as well as programs proposed by third parties, identify one or more programs 69.24recommended for implementation in this state, and, as to the recommended programs, 69.25adopt findings concerning:69.26(1) comparative costs of programs;69.27(2) implementation considerations, and in particular, identifying the appropriate 69.28supervising agency and assessing compatibility with existing and planned computer 69.29systems;69.30(3) effectiveness in verifying existence of motor vehicle insurance coverage;69.31(4) identification of categories of authorized users;69.32(5) simplicity of access and use for authorized users;69.33(6) data privacy considerations;69.34(7) data retention policies; and69.35(8) statutory changes necessary for implementation.70.1    Subd. 4.Report.By February 1, 2015, the task force must submit to the 70.2chairs and ranking minority members of the house of representatives and senate 70.3committees and divisions with primary jurisdiction over commerce and transportation its 70.4written recommendations, including any draft legislation necessary to implement the 70.5recommendations.70.6    Subd. 5.Sunset.The task force shall sunset the day after submitting the report 70.7under subdivision 4, or February 2, 2015, whichever is earlier.70.8EFFECTIVE DATE.This section is effective the day following final enactment.70.9    Sec. 35. COMMUNITY DESTINATION SIGN PILOT PROGRAM.70.10    Subdivision 1.Definition.(a) For purposes of this section, the following terms 70.11have the meanings given.70.12(b) "City" means the city of Two Harbors.70.13(c) "General retail services" means a business that sells goods or services at retail 70.14and directly to an end-use consumer. General retail services includes but is not limited to:70.15(1) personal services;70.16(2) repair services;70.17(3) hardware stores;70.18(4) lumber or building supply stores; and70.19(5) automotive parts sellers.70.20    Subd. 2.Pilot program established.In consultation with the city of Two Harbors, 70.21the commissioner of transportation shall establish a community destination sign pilot 70.22program for wayfinding within the city to destinations or attractions of interest to the 70.23traveling public.70.24For purposes of Minnesota Statutes, chapter 173, signs under the pilot program are 70.25official signs.70.26    Subd. 3.Signage, design.(a) The pilot program must include as eligible attractions 70.27and destinations:70.28(1) minor traffic generators; and70.29(2) general retail services, specified by business name, that are identified in a 70.30community wayfinding program established by the city.70.31(b) The commissioner of transportation, in coordination with the city, may establish 70.32sign design specifications for signs under the pilot program. Design specifications must 70.33allow for placement of:70.34(1) a city name and city logo or symbol; and70.35(2) up to five attractions or destinations on a community destination sign assembly.71.1    Subd. 4.Program costs.The city shall pay costs of design, construction, 71.2erection, and maintenance of the signs and sign assemblies under the pilot program. The 71.3commissioner shall not impose fees for the pilot program.71.4    Subd. 5.Expiration.The pilot program under this section expires on January 71.51, 2022.71.6EFFECTIVE DATE.This section is effective the day after the governing body of 71.7the city of Two Harbors and its chief clerical officer timely complete their compliance 71.8with Minnesota Statutes, section 645.021, subdivisions 2 and 3.71.9ARTICLE 571.10CRIMINAL JUSTICE

71.11Section 1.  SUMMARY OF APPROPRIATIONS.

71.12The amounts shown in this section summarize direct appropriations, by fund, made 71.13in this article.

71.1420142015Total71.15General$-0-$30,787,000$30,787,00071.16Total$-0-$30,787,000$30,787,000

71.17Sec. 2. APPROPRIATIONS.

71.18The sums shown in the columns marked "Appropriations" are added to the 71.19appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes 71.20specified in this article. The appropriations are from the general fund, or another named 71.21fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 71.22and "2015" used in this article mean that the addition to the appropriation listed under 71.23them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 71.24Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 71.25day following final enactment.

71.26APPROPRIATIONS71.27Available for the Year71.28Ending June 3071.2920142015

71.30Sec. 3. CORRECTIONS

71.31Subdivision 1.Total Appropriation$-0-$30,089,000

72.1The amounts that may be spent for each 72.2purpose are specified in the following 72.3subdivisions.72.4This includes a onetime appropriation of 72.5$11,089,000.

72.6Subd. 2.Correctional Institutions-0-27,289,000

72.7The commissioner shall investigate using 72.8private correctional facilities to house 72.9inmates in excess of the capacity of state 72.10correctional facilities. This investigation 72.11must consider the per diem costs of housing 72.12offenders at private facilities compared to 72.13publicly operated facilities, including all 72.14capital costs and other costs. By January 15, 72.152015, the commissioner shall report on the 72.16results of the investigation to the chairs and 72.17ranking minority members of the senate and 72.18house of representatives committees having 72.19jurisdiction over criminal justice policy and 72.20finance.

72.21Subd. 3.Community Services-0-1,900,000

72.22Subd. 4.Operations Support-0-900,000

72.23Sec. 4. PUBLIC SAFETY$-0-$600,000

72.24Expungement72.25To implement the expungement law changes 72.26in 2014 S.F. No. 2214, if enacted.

72.27Sec. 5. HUMAN SERVICES$-0-$98,000

72.28Expungement72.29To implement the expungement law changes 72.30in 2014 S.F. No. 2214, if enacted.73.1ARTICLE 673.2CRIMINAL JUSTICE-RELATED PROVISIONS73.3    Section 1. Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to 73.4read:73.5    Subd. 7. Continuance.(a) When it is in the best interests of the child to do so and 73.6not inimical to public safety and when the child has admitted the allegations contained in 73.7the petition before the judge or referee, or when a hearing has been held as provided for in 73.8section 
         260B.163 and the allegations contained in the petition have been duly proven but, 73.9in either case, before a finding of delinquency has been entered, the court may continue 73.10the case for a period not to exceed 90 180 days on any one order. Such a continuance may 73.11be extended for one additional successive period not to exceed 90 days and only after the 73.12court has reviewed the case and entered its order for an additional continuance without a 73.13finding of delinquency.The continuance may be extended for one additional successive 73.14period not to exceed 180 days, but only with the consent of the prosecutor and only after 73.15the court has reviewed the case and entered its order for the additional continuance 73.16without a finding of delinquency. During this a continuance the court may enter an order 73.17in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or 73.18enter an order to hold the child in detention for a period not to exceed 15 days on any one 73.19order for the purpose of completing any consideration, or any investigation or examination 73.20ordered in accordance with the provisions of section 
         260B.157.73.21(b) A prosecutor may appeal a continuance ordered in contravention of this 73.22subdivision. This subdivision does not extend the court's jurisdiction under section 73.23260B.193 and does not apply to an extended jurisdiction juvenile proceeding.73.24EFFECTIVE DATE.This section is effective August 1, 2014, and applies to 73.25offenses committed on or after that date.73.26    Sec. 2. Minnesota Statutes 2012, section 645.241, is amended to read:73.27645.241 PUNISHMENT FOR PROHIBITED ACTS.73.28(a) Except as provided in paragraph (b), when the performance of any act is 73.29prohibited by a statute, and no penalty for the violation of the same shall be imposed in 73.30any statute, the doing of such act shall be a misdemeanor.73.31(b) When the performance of any act is prohibited by a statute enacted or amended 73.32after September 1, 2014, and no penalty for the violation of the same shall be imposed in 73.33any statute, the doing of such act shall be a petty misdemeanor.74.1    Sec. 3. Laws 2013, chapter 86, article 1, section 13, is amended to read:

74.274.3Sec. 13. PEACE OFFICER STANDARDS AND TRAINING (POST) BOARD$3,870,000$3,870,000

74.4(a) Excess Amounts Transferred74.5This appropriation is from the peace officer 74.6training account in the special revenue fund. 74.7Any new receipts credited to that account in 74.8the first year in excess of $3,870,000 must be 74.9transferred and credited to the general fund. 74.10Any new receipts credited to that account in 74.11the second year in excess of $3,870,000 must 74.12be transferred and credited to the general 74.13fund.74.14(b) Peace Officer Training 74.15Reimbursements74.16$2,734,000 each year is for reimbursements 74.17to local governments for peace officer 74.18training costs.74.19(c) Training; Sexually Exploited and 74.20Trafficked Youth74.21Of the appropriation in paragraph (b), 74.22$100,000 the first year is for reimbursements 74.23to local governments for peace officer 74.24training costs on sexually exploited and 74.25trafficked youth, including effectively 74.26identifying sex trafficked victims and 74.27traffickers, investigation techniques, and 74.28assisting sexually exploited youth. These 74.29funds are available until June 30, 2016.74.30Reimbursement shall be provided on a flat 74.31fee basis of $100 per diem per officer.74.32EFFECTIVE DATE.This section is effective the day following final enactment.75.1ARTICLE 775.2STATE DEPARTMENTS AND VETERANS

75.3Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.

75.4    The sums shown in the columns marked "Appropriations" are added to the 75.5appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes 75.6specified in this article. The appropriations are from the general fund, or another named 75.7fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 75.8and "2015" used in this article mean that the addition to the appropriation listed under 75.9them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 75.10Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 75.11day following final enactment.

75.12APPROPRIATIONS75.13Available for the Year75.14Ending June 3075.1520142015

75.1675.17Sec. 2. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS

75.1875.19Subdivision 1.Legislative Coordinating Commission-0-455,000

75.20$300,000 is for operating costs of the joint 75.21legislative offices.75.22$155,000 is for the Legislative Water 75.23Commission established in section 4. 75.24$145,000 each fiscal year is added to the base 75.25through fiscal year 2019.

75.26Subd. 2.Administration-0-400,000

75.27$150,000 is for developing and implementing 75.28a certification program for veteran-owned 75.29small businesses in accordance with 75.30Minnesota Statutes, section 16C.19. 75.31$112,000 each year is added to the base.75.32$250,000 is appropriated for up to five 75.33grants of up to $50,000 each to conduct 75.34a housing needs assessment for veterans. 75.35Up to five percent may be used by the 76.1commissioner to administer these grants. The 76.2grants may be awarded to any government 76.3or nongovernmental organization. The 76.4assessment, which may be a study or 76.5a survey, may examine the need for 76.6scattered site housing for veterans and their 76.7families who are homeless or in danger of 76.8homelessness or for housing that addresses 76.9the health care needs of disabled or aging 76.10veterans. The assessment must be started by 76.11July 30, 2015, and completed by July 30, 76.122016. The commissioner of administration 76.13must provide copies of any completed 76.14assessment to the chairs and ranking minority 76.15members of the legislative committees with 76.16jurisdiction over housing and veterans affairs 76.17no later than January 1, 2017. This is a 76.18onetime appropriation.

76.19Subd. 3.Racing Commission100,00085,000

76.20These appropriations are from the racing 76.21and card playing regulation accounts in the 76.22special revenue fund. These appropriations 76.23are onetime and are available in either year 76.24of the biennium.

76.25Subd. 4. Amateur Sports Commission-0-50,000

76.26$50,000 is to develop a pilot program to 76.27prevent and reduce childhood obesity. This 76.28appropriation is onetime and is available 76.29until June 30, 2017.

76.30Subd. 5.Minnesota Historical Society-0- 22,000

76.31$22,000 is for a grant to Farm America for 76.32repairs and maintenance of the Minnesota 76.33Agricultural Interpretive Center and for audit 77.1expenses. This is a onetime appropriation 77.2and is available until June 30, 2017.

77.3Subd. 6.Board of the Arts-0-600,000

77.4For arts education in partnership with the 77.5President's Turnaround Arts Initiative. This 77.6appropriation is canceled if the federal grant 77.7under the initiative is not awarded. This 77.8appropriation is available until June 30, 77.92015. This is a onetime appropriation.

77.10Subd. 7. Minnesota Humanities Center-0- 225,000

77.11$125,000 is for the Veterans' Voices 77.12program to educate and engage the 77.13community regarding veterans' contributions, 77.14knowledge, skills, and experiences. Of 77.15this amount, $25,000 is for transfer to the 77.16Association of Minnesota Public Education 77.17Radio Stations for statewide programming to 77.18promote the Veterans' Voices program. This 77.19is a onetime appropriation.77.20$100,000 is from the arts and cultural 77.21heritage fund for professional development 77.22for kindergarten through grade 12 educators 77.23to better culturally engage their work with 77.24at-risk student populations. This may include 77.25new and original literature that addresses 77.26literacy of emerging cultural communities. 77.27This is a onetime appropriation.

77.28Subd. 8. Department of Education-0-44,000

77.29This appropriation is to implement expedited 77.30and temporary licensing provisions of 77.31Minnesota Statutes, section 197.4552. This 77.32is a onetime appropriation.

77.33Subd. 9.Board of Accountancy-0-44,000

78.1This appropriation is to implement expedited 78.2and temporary licensing provisions of 78.3Minnesota Statutes, section 197.4552. This 78.4is a onetime appropriation.

78.578.678.7Subd. 10.Board of Architecture, Engineering, Land Surveying, Landscape, Architecture, Geoscience, and Interior Design-0-44,000

78.8This appropriation is to implement expedited 78.9and temporary licensing provisions of 78.10Minnesota Statutes, section 197.4552. This 78.11is a onetime appropriation.

78.12Subd. 11.Board of Cosmetologist Examiners-0-20,000

78.13This appropriation is to implement expedited 78.14and temporary licensing provisions of 78.15Minnesota Statutes, section 197.4552. This 78.16is a onetime appropriation.

78.17Subd. 12.Board of Barber Examiners-0-10,000

78.18This appropriation is to implement expedited 78.19and temporary licensing provisions of 78.20Minnesota Statutes, section 197.4552. This 78.21is a onetime appropriation.

78.22Subd. 13.Board of Private Detectives-0-44,000

78.23This appropriation is to implement expedited 78.24and temporary licensing provisions of 78.25Minnesota Statutes, section 197.4552. This 78.26is a onetime appropriation.

78.2778.28Subd. 14.Board of Behavioral Health and Therapy-0-15,000

78.29This appropriation is from the state 78.30government special revenue fund to 78.31implement expedited and temporary licensing 78.32provisions of Minnesota Statutes, section 78.33197.4552. This is a onetime appropriation.

78.34Subd. 15.Board of Dentistry-0-10,000

79.1This appropriation is from the state 79.2government special revenue fund to 79.3implement expedited and temporary licensing 79.4provisions of Minnesota Statutes, section 79.5197.4552. This is a onetime appropriation.

79.679.7Subd. 16.Board of Dietetics and Nutrition Practice-0-10,000

79.8This appropriation is from the state 79.9government special revenue fund to 79.10implement expedited and temporary licensing 79.11provisions of Minnesota Statutes, section 79.12197.4552. This is a onetime appropriation.

79.1379.14Subd. 17.Board of Marriage and Family Therapy-0-14,000

79.15This appropriation is from the state 79.16government special revenue fund to 79.17implement expedited and temporary licensing 79.18provisions of Minnesota Statutes, section 79.19197.4552. This is a onetime appropriation.

79.2079.21Subd. 18.Board of Nursing Home Administrators-0-1,000

79.22This appropriation is from the state 79.23government special revenue fund to 79.24implement expedited and temporary licensing 79.25provisions of Minnesota Statutes, section 79.26197.4552. This is a onetime appropriation.

79.27Subd. 19.Board of Optometry-0-10,000

79.28This appropriation is from the state 79.29government special revenue fund to 79.30implement expedited and temporary licensing 79.31provisions of Minnesota Statutes, section 79.32197.4552. This is a onetime appropriation.

79.33Subd. 20.Board of Podiatric Medicine-0-10,000

80.1This appropriation is from the state 80.2government special revenue fund to 80.3implement expedited and temporary licensing 80.4provisions of Minnesota Statutes, section 80.5197.4552. This is a onetime appropriation.

80.6Subd. 21.Board of Social Work-0-3,000

80.7This appropriation is from the state 80.8government special revenue fund to 80.9implement expedited and temporary licensing 80.10provisions of Minnesota Statutes, section 80.11197.4552. This is a onetime appropriation.80.12    Sec. 3. Minnesota Statutes 2012, section 3.099, subdivision 3, is amended to read:80.13    Subd. 3. Leaders. The senate Committee on Rules and Administration for the senate 80.14and the house of representatives Committee on Rules and Legislative Administration for 80.15the house of representatives may each designate for their respective body up to three four80.16 leadership positions to receive up to 140 percent of the compensation of other members.80.17At the commencement of each biennial legislative session, each house of the 80.18legislature shall adopt a resolution designating its majority and minority leader.80.19The majority leader is the person elected by the caucus of members in each house 80.20which is its largest political affiliation. The minority leader is the person elected by the 80.21caucus which is its second largest political affiliation.80.22EFFECTIVE DATE.This section is effective January 6, 2015.80.23    Sec. 4. [3.886] LEGISLATIVE WATER COMMISSION.80.24    Subdivision 1.Establishment.A Legislative Water Commission is established.80.25    Subd. 2.Membership.(a) The Legislative Water Commission consists of 12 80.26members appointed as follows:80.27(1) six members of the senate, including three majority party members appointed by 80.28the majority leader and three minority party members appointed by the minority leader; and80.29(2) six members of the house of representatives, including three majority party 80.30members appointed by the speaker of the house and three minority party members 80.31appointed by the minority leader.80.32(b) Members serve at the pleasure of the appointing authority and continue to serve 80.33until their successors are appointed or until a member is no longer a member of the 81.1legislative body that appointed the member to the commission. Vacancies shall be filled in 81.2the same manner as the original positions. Vacancies occurring on the commission do not 81.3affect the authority of the remaining members of the Legislative Water Commission to 81.4carry out the function of the commission.81.5(c) Members shall elect a chair, vice chair, and other officers as determined by 81.6the commission. The chair may convene meetings as necessary to conduct the duties 81.7prescribed by this section.81.8    Subd. 3.Commission staffing.The Legislative Coordinating Commission must 81.9employ staff and contract with consultants as necessary to enable the Legislative Water 81.10Commission to carry out its duties and functions.81.11    Subd. 4.Powers and duties.(a) The Legislative Water Commission shall review 81.12water policy reports and recommendations of the Environmental Quality Board, the Board 81.13of Water and Soil Resources, the Pollution Control Agency, the Department of Natural 81.14Resources, the Metropolitan Council, and other water-related reports as may be required 81.15by law or the legislature.81.16(b) The commission may conduct public hearings and otherwise secure data and 81.17comments.81.18(c) The commission shall make recommendations as it deems proper to assist the 81.19legislature in formulating legislation.81.20(d) Data or information compiled by the Legislative Water Commission or its 81.21subcommittees shall be made available to the Legislative-Citizen Commission on 81.22Minnesota Resources, the Clean Water Council, and standing and interim committees of 81.23the legislature on request of the chair of the respective commission, council, or committee.81.24(e) The commission shall coordinate with the Clean Water Council.81.25    Subd. 5.Compensation.Members may receive per diem under section 3.099 for 81.26attending commission meetings, and may be reimbursed for expenses incurred doing 81.27the work of the commission, but shall not receive any other compensation for serving 81.28on the commission.81.29    Subd. 6.Expiration.This section expires July 1, 2019.81.30    Sec. 5. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is 81.31amended to read:81.32    Subdivision 1. Creation. A Compensation Council is created each odd-numbered 81.33year to assist the legislature in establishing the compensation of constitutional officers, 81.34members of the legislature, justices of the Supreme Court, judges of the Court of Appeals 82.1and district court, and the heads of state and metropolitan agencies included in section 82.215A.0815
         .82.3EFFECTIVE DATE.This section is effective the day following final enactment.82.4    Sec. 6. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is 82.5amended to read:82.6    Subd. 3. Submission of recommendations. (a) By March April 15 in each 82.7odd-numbered year, the Compensation Council shall submit to the speaker of the house 82.8and the president of the senate salary recommendations for constitutional officers, 82.9legislators, justices of the Supreme Court, and judges of the Court of Appeals and district 82.10court. The recommended salary for each other office must take effect on the first Monday 82.11in January of the next odd-numbered year, with no more than one adjustment, to take 82.12effect on January 1 of the year after that. The salary recommendations for legislators,82.13 judges, and constitutional officers take effect if an appropriation of money to pay the 82.14recommended salaries is enacted after the recommendations are submitted and before 82.15their effective date. Recommendations may be expressly modified or rejected. The salary 82.16recommendations for legislators are subject to additional terms that may be adopted 82.17according to section 3.099, subdivisions 1 and 3.82.18(b) The council shall also submit to the speaker of the house and the president of 82.19the senate recommendations for the salary ranges of the heads of state and metropolitan 82.20agencies, to be effective retroactively from January 1 of that year if enacted into law. The 82.21recommendations shall include the appropriate group in section 
         15A.0815 to which each 82.22agency head should be assigned and the appropriate limitation on the maximum range of 82.23the salaries of the agency heads in each group, expressed as a percentage of the salary of 82.24the governor.82.25EFFECTIVE DATE.This section is effective the day following final enactment.82.26    Sec. 7. Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:82.27    Subd. 4. Criteria. In making compensation recommendations, the council shall 82.28consider the amount of compensation paid in government service and the private sector 82.29to persons with similar qualifications, the amount of compensation needed to attract 82.30and retain experienced and competent persons, and the ability of the state to pay the 82.31recommended compensation. In making recommendations for legislative compensation, 82.32the council shall also consider the average length of a legislative session, the amount of 83.1work required of legislators during interim periods, and opportunities to earn income from 83.2other sources without neglecting legislative duties.83.3EFFECTIVE DATE.This section is effective the day following final enactment.83.4    Sec. 8. Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:83.5    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the 83.6federal government as a condition of receiving federal funds, the commissioner shall 83.7award up to a six percent preference, but no less than the percentage awarded to any 83.8other group under this section, in the amount bid on state procurement to certified small 83.9businesses that are majority-owned and operated by: veterans.83.10(1) recently separated veterans who have served in active military service, at any 83.11time on or after September 11, 2001, and who have been discharged under honorable 83.12conditions from active service, as indicated by the person's United States Department of 83.13Defense form DD-214 or by the commissioner of veterans affairs;83.14(2) veterans with service-connected disabilities, as determined at any time by the 83.15United States Department of Veterans Affairs; or83.16(3) any other veteran-owned small businesses certified under section 16C.19, 83.17paragraph (d).83.18(b) The purpose of this designation is to facilitate the transition of veterans from 83.19military to civilian life, and to help compensate veterans for their sacrifices, including but 83.20not limited to their sacrifice of health and time, to the state and nation during their military 83.21service, as well as to enhance economic development within Minnesota.83.22    Sec. 9. Minnesota Statutes 2012, section 16C.19, is amended to read:83.2316C.19 ELIGIBILITY; RULES.83.24(a) A small business wishing to participate in the programs under section 
         16C.16, 83.25subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 83.26by rule standards and procedures for certifying that small businesses, small targeted 83.27group businesses, and small businesses located in economically disadvantaged areas, 83.28and veteran-owned small businesses  are eligible to participate under the requirements 83.29of sections 
         16C.16 to 
         16C.21. The commissioner shall adopt by rule standards and 83.30procedures for hearing appeals and grievances and other rules necessary to carry out the 83.31duties set forth in sections 
         16C.16 to 
         16C.21.84.1(b) The commissioner may make rules which exclude or limit the participation of 84.2nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 84.3manufacturers' representatives, and others from eligibility under sections 
         16C.16 to 
         16C.21.84.4(c) The commissioner may make rules that set time limits and other eligibility limits 84.5on business participation in programs under sections 
         16C.16 to 
         16C.21.84.6(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a 84.7veteran-owned small business, the principal place of business of which is in Minnesota, 84.8is certified if it has been verified by the United States Department of Veterans Affairs as 84.9being either a veteran-owned small business or a service-disabled veteran-owned small 84.10business, in accordance with Public Law 109-461 and Code of Federal Regulations, 84.11title 38, part 74 Until rules are adopted pursuant to paragraph (a) for the purpose of 84.12certifying veteran-owned small businesses, the provisions of Minnesota Rules, part 84.131230.1700, may be read to include veteran-owned small businesses. In addition to the 84.14documentation required in Minnesota Rules, part 1230.1700, the veteran owner must 84.15have been discharged under honorable conditions from active service, as indicated by the 84.16veteran owner's most current United States Department of Defense form DD-214.84.17    Sec. 10. Minnesota Statutes 2012, section 122A.18, is amended by adding a 84.18subdivision to read:84.19    Subd. 7c.Temporary military license.The Board of Teaching shall establish 84.20a temporary license in accordance with section 197.4552 for teaching. The fee for a 84.21temporary license under this subdivision shall be $87.90 for an on-line application or 84.22$86.40 for a paper application.84.23    Sec. 11. [148.595] TEMPORARY MILITARY PERMIT; FEE.84.24The Board of Optometry shall establish a temporary permit in accordance with 84.25section 197.4552. The fee for the temporary military permit is $250.84.26    Sec. 12. Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision 84.27to read:84.28    Subd. 5.Temporary military permit.The board shall issue a temporary permit to 84.29members of the military in accordance with section 197.4552. The fee for the temporary 84.30permit is $250.84.31    Sec. 13. Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is 84.32amended to read:85.1    Subd. 2. Licensure and application fees. Nonrefundable licensure and application 85.2fees established by the board shall not exceed the following amounts:85.3(1) application fee for national examination is $110;85.4(2) application fee for Licensed Marriage and Family Therapist (LMFT) state 85.5examination is $110;85.6(3) initial LMFT license fee is prorated, but cannot exceed $125;85.7(4) annual renewal fee for LMFT license is $125;85.8(5) late fee for LMFT license renewal is $50;85.9(6) application fee for LMFT licensure by reciprocity is $220;85.10(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT) 85.11license is $75;85.12(8) annual renewal fee for LAMFT license is $75;85.13(9) late fee for LAMFT renewal is $25;85.14(10) fee for reinstatement of license is $150; and85.15(11) fee for emeritus status is $125; and85.16(12) fee for temporary license for members of the military is $100.85.17    Sec. 14. Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:85.18    Subd. 3. Fee. Nonrefundable fees are as follows:85.19    (1) initial license application fee for licensed professional counseling (LPC) - $150;85.20    (2) initial license fee for LPC - $250;85.21    (3) annual active license renewal fee for LPC - $250 or equivalent;85.22    (4) annual inactive license renewal fee for LPC - $125;85.23    (5) initial license application fee for licensed professional clinical counseling 85.24(LPCC) - $150;85.25    (6) initial license fee for LPCC - $250;85.26    (7) annual active license renewal fee for LPCC - $250 or equivalent;85.27    (8) annual inactive license renewal fee for LPCC - $125;85.28    (9) license renewal late fee - $100 per month or portion thereof;85.29    (10) copy of board order or stipulation - $10;85.30    (11) certificate of good standing or license verification - $25;85.31    (12) duplicate certificate fee - $25;85.32    (13) professional firm renewal fee - $25;85.33    (14) sponsor application for approval of a continuing education course - $60;85.34    (15) initial registration fee - $50;85.35    (16) annual registration renewal fee - $25; and86.1    (17) approved supervisor application processing fee - $30; and86.2    (18) temporary license for members of the military - $250.86.3    Sec. 15. Minnesota Statutes 2012, section 150A.091, is amended by adding a 86.4subdivision to read:86.5    Subd. 9c.Temporary permit.Applications for a temporary military permit in 86.6accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.86.7    Sec. 16. Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision 86.8to read:86.9    Subd. 4.Temporary military permit.The board shall establish a temporary permit 86.10in accordance with section 197.4552. The fee for the temporary military permit is $250.86.11    Sec. 17. Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter 86.1285, article 5, section 12, is amended to read:86.13154.11 EXAMINATION OF NONRESIDENT BARBERS AND 86.14INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS; 86.15TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.86.16    Subdivision 1. Examination of nonresidents. A person who meets all of the 86.17requirements for barber registration in sections 
         154.001, 
         154.002, 
         154.003, 
         154.01 to 86.18154.161
         , 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 and either has a license, certificate of 86.19registration, or an equivalent as a practicing barber or instructor of barbering from another 86.20state or country which in the discretion of the board has substantially the same requirements 86.21for registering barbers and instructors of barbering as required by sections 
         154.001, 86.22154.002
         , 
         154.003, 
         154.01 to 
         154.161, 
         154.19 to 
         154.21, and 
         154.24 to 
         154.26 or can prove 86.23by sworn affidavits practice as a barber or instructor of barbering in another state or country 86.24for at least five years immediately prior to making application in this state, shall, upon 86.25payment of the required fee, be issued a certificate of registration without examination.86.26    Subd. 2. Temporary apprentice permits for nonresidents. Any person who 86.27qualifies for examination as a registered barber under this section may apply for a 86.28temporary apprentice permit which is effective no longer than six months. All persons 86.29holding a temporary apprentice permit are subject to all provisions of sections 
         154.001, 86.30154.002
         , 
         154.003, 
         154.01 to 
         154.161, 
         154.19 to
          154.21, and 
         154.24 to 
         154.26 and the 86.31rules adopted by the board under those sections concerning the conduct and obligations 86.32of registered apprentices.87.1    Subd. 3.Temporary military license.The board shall establish a temporary license 87.2for barbers and master barbers and a temporary permit for apprentices in accordance with 87.3section 197.4552. The fee for a temporary license under this subdivision for a master 87.4barber is $85. The fee for a temporary license under this subdivision for a barber is $180. 87.5The fee for a temporary permit under this subdivision for an apprentice is $80.87.6    Sec. 18. Minnesota Statutes 2012, section 155A.27, is amended by adding a 87.7subdivision to read:87.8    Subd. 5a.Temporary military license.The board shall establish temporary 87.9licenses for a cosmetologist, nail technician, and esthetician, in accordance with section 87.10197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail 87.11technician, or esthetician is $100.87.12    Sec. 19. Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:87.13    Subd. 2. Employee. "Employee" means a person who performs services for hire 87.14for has been employed by an employer from whom a leave is requested under sections 87.15181.940
          to 
         181.944 for:87.16(1) at least 12 consecutive months immediately preceding the request or, if the 87.17employer is an educational institution, at least 12 months preceding the request; and  87.18(2) for an average number of hours per week equal to one-half the full-time 87.19equivalent position in the employee's job classification as defined by the employer's 87.20personnel policies or practices or pursuant to the provisions of a collective bargaining 87.21agreement, during those 12 months.87.22For the purpose of this subdivision, "educational institution" means an elementary or 87.23secondary school.87.24Employee includes all individuals employed at any site owned or operated by the 87.25employer but does not include an independent contractor.87.26EFFECTIVE DATE.This section is effective the day following final enactment.87.27    Sec. 20. [197.4552] EXPEDITED AND TEMPORARY LICENSING FOR 87.28FORMER AND CURRENT MEMBERS OF THE MILITARY.87.29    Subdivision 1.Expedited licensing processing.Notwithstanding any other law to 87.30the contrary, each professional licensing board defined in section 214.01, subdivisions 2 87.31and 3, shall establish a procedure to expedite the issuance of a license or certification to 87.32perform professional services regulated by each board to a qualified individual who is:87.33(1) an active duty military member;88.1(2) the spouse of an active duty military member; or88.2(3) a veteran who has left service in the two years preceding the date of license or 88.3certification application, and has confirmation of an honorable or general discharge status.88.4    Subd. 2.Temporary licenses.(a) Notwithstanding any other law to the contrary, 88.5each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall 88.6establish a procedure to issue a temporary license or certification to perform professional 88.7services regulated by each board to a qualified individual who is:88.8(1) an active duty military member;88.9(2) the spouse of an active duty military member; or88.10(3) a veteran who has left service in the two years preceding the date of license or 88.11certification application, and has confirmation of an honorable or general discharge status.88.12(b) A qualified individual under paragraph (a) must provide evidence of:88.13(1) a current, valid license, certificate, or permit in another state without history of 88.14disciplinary action by a regulatory authority in the other state; and88.15(2) a current criminal background study without a criminal conviction that is 88.16determined by the board to adversely affect the applicants' ability to become licensed.88.17(c) A temporary license or certificate issued under this subdivision shall allow a 88.18qualified individual to perform regulated professional services for a limited length of time 88.19as determined by the licensing board. During the temporary license period, the individual 88.20shall complete the full application procedure as required by applicable law.88.21    Subd. 3.Rulemaking.Each licensing board may adopt rules to carry out the 88.22provisions of this section.88.23    Sec. 21. Minnesota Statutes 2012, section 326.04, is amended by adding a subdivision 88.24to read:88.25    Subd. 1a.Temporary military certificate.The board shall establish a temporary 88.26certificate in accordance with section 197.4552.88.27    Sec. 22. Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision 88.28to read:88.29    Subd. 10.Temporary military license.The board shall establish a temporary 88.30license in accordance with section 197.4552 for the practice of architecture, professional 88.31engineering, geosciences, land surveying, landscape architecture, and interior design. 88.32The fee for the temporary license under this subdivision for the practice of architecture, 88.33professional engineering, geosciences, land surveying, landscape architecture, or interior 88.34design is $132.89.1    Sec. 23. Minnesota Statutes 2012, section 326.3382, is amended by adding a 89.2subdivision to read:89.3    Subd. 6.Temporary military license.The board shall establish a temporary 89.4license to engage in the business of private detective or protective agent in accordance 89.5with section 197.4552. The fee for the temporary license under this subdivision for a 89.6private detective is $1,000. The fee for a temporary license under this subdivision for a 89.7protective agent is $800.89.8    Sec. 24. Minnesota Statutes 2012, section 326A.04, is amended by adding a 89.9subdivision to read:89.10    Subd. 1a.Temporary military certificate.The board shall establish a temporary 89.11military certificate in accordance with section 197.4552.89.12    Sec. 25. Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is 89.13amended to read:89.14    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial 89.15issuance or renewal of a certificate or temporary military certificate under this section as 89.16provided in paragraph (b). The fee for the temporary military certificate is $100.89.17    (b) The board shall charge the following fees:89.18    (1) initial issuance of certificate, $150;89.19    (2) renewal of certificate with an active status, $100 per year;89.20    (3) initial CPA firm permits, except for sole practitioners, $100;89.21    (4) renewal of CPA firm permits, except for sole practitioners and those firms 89.22specified in clause (17), $35 per year;89.23    (5) initial issuance and renewal of CPA firm permits for sole practitioners, except for 89.24those firms specified in clause (17), $35 per year;89.25    (6) annual late processing delinquency fee for permit, certificate, or registration 89.26renewal applications not received prior to expiration date, $50;89.27    (7) copies of records, per page, 25 cents;89.28    (8) registration of noncertificate holders, nonlicensees, and nonregistrants in 89.29connection with renewal of firm permits, $45 per year;89.30    (9) applications for reinstatement, $20;89.31    (10) initial registration of a registered accounting practitioner, $50;89.32    (11) initial registered accounting practitioner firm permits, $100;89.33    (12) renewal of registered accounting practitioner firm permits, except for sole 89.34practitioners, $100 per year;90.1    (13) renewal of registered accounting practitioner firm permits for sole practitioners, 90.2$35 per year;90.3    (14) CPA examination application, $40;90.4    (15) CPA examination, fee determined by third-party examination administrator;90.5    (16) renewal of certificates with an inactive status, $25 per year; and90.6    (17) renewal of CPA firm permits for firms that have one or more offices located in 90.7another state, $68 per year.90.8    Sec. 26. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS 90.9AND FIRST MEETING.90.10Initial appointments to the Legislative Water Commission established in section 90.114 must be made by September 1, 2014. The first meeting of the commission shall be 90.12convened by the chair of the commission by October 15, 2014. The commission shall 90.13select a chair from its membership at its first meeting.90.14    Sec. 27. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL 90.15ACCOMMODATION.90.16The commissioner of management and budget, in consultation with the Commission  90.17of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs 90.18and ranking minority members of the senate Finance Committee and the house of 90.19representatives Ways and Means Committee and the governor by January 5, 2015, on 90.20advantages and disadvantages of creating an account for the special revenue fund in the 90.21state treasury to pay for costs of providing accommodations to executive branch state 90.22employees with disabilities. The report must include:90.23(1) a summary of money spent by executive branch state agencies in fiscal years 90.242012 and 2013 for providing accommodations to executive branch state employees, to 90.25the extent that such expenditures can be determined; and90.26(2) recommendations for laws and policies needed to implement an account in the 90.27special revenue fund, if one is recommended under this section; or other recommendations 90.28related to best practices in provision of accommodations for employees with disabilities 90.29in the executive branch.90.30ARTICLE 890.31ENVIRONMENT AND AGRICULTURE

90.32Section 1.  SUMMARY OF APPROPRIATIONS.

91.1The amounts shown in this section summarize direct appropriations, by fund, made 91.2in this article.

91.320142015Total91.4General$-0-$3,321,000$3,321,00091.5Environmental-0-750,000750,00091.6Remediation-0-650,000650,00091.7Natural Resources-0-(1,450,000)(1,450,000)91.8Game and Fish-0-2,400,0002,400,00091.9Clean Water-0-2,500,0002,500,00091.1091.11Environment and Natural Resources Trust-0-490,000490,00091.12Total$-0-$8,661,000$8,661,000

91.13Sec. 2. APPROPRIATIONS.

91.14The sums shown in the columns marked "Appropriations" are added to or, if shown 91.15in parentheses, subtracted from the appropriations in Laws 2013, chapter 114, to the 91.16agencies and for the purposes specified in this article. The appropriations are from the 91.17general fund, or another named fund, and are available for the fiscal years indicated for 91.18each purpose. The figures "2014" and "2015" used in this article mean that the addition to 91.19the appropriation listed under them is available for the fiscal year ending June 30, 2014, or 91.20June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June 91.2130, 2014, are effective the day following final enactment.

91.22APPROPRIATIONS91.23Available for the Year91.24Ending June 3091.2520142015

91.26Sec. 3. POLLUTION CONTROL AGENCY$-0-$1,600,000

91.27$750,000 in 2015 is from the environmental 91.28fund for SCORE block grants to counties.91.29$200,000 in 2015 is from the clean water 91.30fund for coordination with the state of 91.31Wisconsin and the National Park Service 91.32on comprehensive phosphorus reduction 91.33activities in the Lake St. Croix portion 91.34of the St. Croix River. The agency shall 91.35work with the St. Croix Basin Water 91.36Resources Planning Team and the St. Croix 92.1River Association in implementing the 92.2water monitoring and phosphorus reduction 92.3activities. This is a onetime appropriation and 92.4is subject to the availability of appropriations 92.5in Laws 2013, chapter 137, article 2, section 92.62, subdivision 2.92.7$650,000 in 2015 from the remediation 92.8fund for additional staff and administrative 92.9expenses to manage and oversee investigation 92.10and mitigation efforts at superfund sites. 92.11This is a onetime appropriation.

92.12Sec. 4. NATURAL RESOURCES

92.13Subdivision 1.Total Appropriation$-0-$3,421,000

92.14Appropriations by Fund92.15General-0-2,471,00092.16Natural Resources-0-(1,450,000)92.17Game and Fish-0-2,400,000

92.18The amounts that may be spent for each 92.19purpose are specified in the following 92.20subdivisions.

92.21Subd. 2.Land and Minerals Management

92.22Appropriations by Fund92.23General-0-2,450,00092.24Natural Resources-0-(1,450,000)

92.25$1,450,000 in 2015 is a reduction to the 92.26appropriation from the minerals management 92.27account in the natural resources fund for 92.28minerals resource management.92.29$1,450,000 in 2015 is for minerals resource 92.30management.92.31$1,000,000 in 2015 is to extinguish the 92.32school trust interest in the school trust lands 92.33identified in Minnesota Statutes, section 93.184.027, subdivision 18, paragraph (c). This 93.2is a onetime appropriation.

93.3Subd. 3.Ecological and Water Resources-0-(1,679,000)

93.4$1,700,000 in 2015 is a reduction to surface 93.5and groundwater management. This is a 93.6onetime reduction.93.7$21,000 in 2015 for a grant to the 93.8Mississippi Headwaters Board for the cost 93.9of implementing the comprehensive plan for 93.10the upper Mississippi within the areas under 93.11the board's jurisdiction.

93.12Subd. 4.Parks and Trails Management-0-1,700,000

93.13$1,700,000 in 2015 is for parks and 93.14trails management. This is a onetime 93.15appropriation.

93.16Subd. 5.Fish and Wildlife Management-0-2,400,000

93.17$2,000,000 in 2015 is from the game and fish 93.18fund for shooting sports facility grants under 93.19Minnesota Statutes, section 87A.10. This is 93.20a onetime appropriation and is available until 93.21June 30, 2017.93.22$400,000 in 2015 is from the heritage 93.23enhancement account in the game and fish 93.24fund for a grant to Let's Go Fishing of 93.25Minnesota to provide community outreach 93.26to senior citizens, youth, and veterans and 93.27for the costs associated with establishing 93.28and recruiting new chapters. The grants 93.29must be matched with cash or in-kind 93.30contributions from nonstate sources. Of 93.31this amount, $25,000 is for Asian Outdoor 93.32Heritage for youth fishing recruitment efforts 93.33and outreach in the metropolitan area. The 93.34commissioner may spend up to three percent 94.1of the appropriation to administer the grant. 94.2This is a onetime appropriation and is 94.3available until June 30, 2016.

94.494.5Sec. 5. BOARD OF WATER AND SOIL RESOURCES$-0-$1,150,000

94.6$1,150,000 in 2015 from the clean water 94.7fund is added to the appropriation to the 94.8Board of Water and Soil Resources for 94.9grants in Laws 2013, chapter 137, article 2, 94.10section 7, paragraph (b). This is a onetime 94.11appropriation.

94.12Sec. 6. ADMINISTRATION$-0-$185,000

94.13$185,000 in 2015 is for activities and the 94.14administrative expenses of the school trust 94.15lands director and additional staff, under 94.16Minnesota Statutes, section 127A.353.

94.1794.18Sec. 7. LEGISLATIVE COORDINATING COMMISSION$-0-$15,000

94.19$15,000 in 2015 is for the administrative 94.20expenses of the Permanent School Fund 94.21Commission under Minnesota Statutes, 94.22section 127A.30, and for compensation 94.23and expense reimbursement of commission 94.24members.

94.25Sec. 8. UNIVERSITY OF MINNESOTA$-0-$1,640,000

94.26$390,000 in 2015 is from the environment 94.27and natural resources trust fund to develop 94.28and support a terrestrial invasive species 94.29research center at the University of 94.30Minnesota that will develop new techniques 94.31to control terrestrial invasive species. This 94.32is a onetime appropriation and is available 94.33until June 30, 2019.95.1$170,000 from the environment and natural 95.2resources trust fund appropriated in Laws 95.32011, First Special Session, chapter 2, article 95.43, section 2, subdivision 9, paragraph (d), 95.5Reinvest in Minnesota Wetlands Reserve 95.6Acquisition and Restoration Program 95.7Partnership, is transferred to the Board of 95.8Regents to develop and support a terrestrial 95.9invasive species research center at the 95.10University of Minnesota that will develop 95.11new techniques to control terrestrial invasive 95.12species and is available until June 30, 2019.95.13$1,150,000 in 2015 from the clean water 95.14fund is for the Forever Green Agricultural 95.15Initiative and to protect the state's natural 95.16resources while increasing efficiency, 95.17profitability, and productivity of Minnesota 95.18farmers by incorporating perennial and 95.19winter annual crops into existing agricultural 95.20practices. This is a onetime appropriation and 95.21is subject to the availability of appropriations 95.22in Laws 2013, chapter 137, article 2, section 95.232, subdivision 2.95.24$100,000 in 2015 is from the environment 95.25and natural resources trust fund for the 95.26Veterinary Diagnostic Laboratory to research 95.27porcine epidemic diarrhea virus.

95.28Sec. 9. AGRICULTURE$-0-$550,000

95.29$350,000 in 2015 is for an increase in retail 95.30food handler inspections.95.31$1,500,000 in 2015 is a reduction to the 95.32agricultural growth, research, and innovation 95.33program. This is a onetime reduction and 96.1none of this reduction may be allocated to 96.2the county fair arts access grants. 96.3$1,500,000 in 2015 is for a grant to Second 96.4Harvest Heartland to compensate Minnesota 96.5agricultural producers and processors for 96.6costs incurred to harvest and package 96.7for transfer surplus fruits, vegetables, or 96.8other agricultural commodities that would 96.9otherwise go unharvested or be discarded. 96.10Surplus commodities must be distributed 96.11statewide to food shelves and other charitable 96.12organizations that are eligible to receive 96.13food from the food banks. Second Harvest 96.14Heartland may use up to five percent of the 96.15grant for administrative expenses. This is a 96.16onetime appropriation.96.17$200,000 in 2015 is added to the 96.18appropriation in Laws 2013, chapter 114, 96.19article 1, section 3, subdivision 4, for 96.20distribution to the state's county fairs.

96.21Sec. 10. METROPOLITAN COUNCIL$-0-$100,000

96.22$800,000 from the environment and natural 96.23resources trust fund appropriated in Laws 96.242011, First Special Session, chapter 2, article 96.253, section 2, subdivision 9, paragraph (d), 96.26Reinvest in Minnesota Wetland Reserve 96.27Acquisition and Restoration Program 96.28Partnership is transferred to the Metropolitan 96.29Council for a grant to the White Bear Lake 96.30Conservation District to contract with an 96.31engineering firm for a detailed feasibility 96.32study of the lake augmentation option for 96.33White Bear Lake and is available until 96.34June 30, 2016. The detailed feasibility 96.35study must, at a minimum, provide for an 97.1evaluation of alternative routes; preliminary 97.2design; identify regulatory issues; provide 97.3preliminary cost estimates; and identify 97.4any other considerations that would affect 97.5the project's feasibility. The White Bear 97.6Lake Conservation District must choose 97.7an engineering firm that has demonstrated 97.8significant experience working with issues 97.9concerning water resources, watershed 97.10management and water supply management, 97.11and has demonstrated knowledge of the 97.12characterization of groundwater and surface 97.13water interaction in White Bear Lake and 97.14the effect of withdrawals from groundwater 97.15under White Bear Lake.97.16$100,000 in 2015 is for a grant to the city of 97.17Shoreview for a feasibility study regarding 97.18the lowering of the water level of Turtle Lake 97.19and the possible effects of an augmentation 97.20of the lake.97.21    Sec. 11. Laws 2013, chapter 114, article 3, section 3, subdivision 6, is amended to read:

97.22Subd. 6.Remediation Fund

97.23The commissioner shall transfer up 97.24to $46,000,000 $47,150,000 from the 97.25environmental fund to the remediation fund 97.26for the purposes of the remediation fund 97.27under Minnesota Statutes, section 
         116.155, 97.28subdivision 2
         .97.29    Sec. 12.  REPEALER.97.30Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws 97.312010, First Special Session chapter 1, article 6, section 6, and Laws 2013, chapter 114, 97.32article 3, section 9, is repealed.98.1ARTICLE 998.2ENVIRONMENT AND AGRICULTURE FISCAL IMPLEMENTATION 98.3PROVISIONS98.4    Section 1. Minnesota Statutes 2012, section 16A.125, subdivision 5, is amended to read:98.5    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used 98.6in this subdivision, means public land in trust under the Constitution set apart as "forest 98.7lands under the authority of the commissioner" of natural resources as defined by section 98.889.001, subdivision 13
         .98.9(b) The commissioner of management and budget shall credit the revenue from the 98.10forest trust fund lands to the forest suspense account. The account must specify the trust 98.11funds interested in the lands and the respective receipts of the lands.98.12(c) After a fiscal year, the commissioner of management and budget shall certify 98.13the costs incurred for forestry during that year under appropriations for the improvement, 98.14administration, and management of state forest trust fund lands and construction and 98.15improvement of forest roads to enhance the forest value of the lands. The certificate 98.16must specify the trust funds interested in the lands. After presentation to the Legislative 98.17Permanent School Fund Commission, the commissioner of natural resources shall 98.18supply the commissioner of management and budget with the information needed for the 98.19certificate. The certificate shall include an analysis that compares costs certified under this 98.20section with costs incurred on other public and private lands with similar land assets.98.21(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 98.22suspense account during that fiscal year as follows:98.23(1) the amount of the certified costs incurred by the state for forest management, 98.24forest improvement, and road improvement during the fiscal year shall be transferred to 98.25the forest management investment account established under section 
         89.039;98.26(2) the amount of costs incurred by the Legislative Permanent School Fund 98.27Commission under section 127A.30, and by the school trust lands director under section 98.28127A.353, shall be transferred to the general fund;98.29(3) the balance of the certified costs incurred by the state during the fiscal year 98.30shall be transferred to the general fund; and98.31(3) (4) the balance of the receipts shall then be returned prorated to the trust funds in 98.32proportion to their respective interests in the lands which produced the receipts.98.33    Sec. 2. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 98.34to read:99.1    Subd. 1c.Apiary."Apiary" means a place where a collection of one or more hives 99.2or colonies of bees or the nuclei of bees are kept.99.3    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 99.4to read:99.5    Subd. 2a.Bee."Bee" means any stage of the common honeybee, Apis mellifera (L).99.6    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 99.7to read:99.8    Subd. 2b.Bee owner."Bee owner" means a person who owns an apiary.99.9    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 99.10to read:99.11    Subd. 4c.Colony."Colony" means the aggregate of worker bees, drones, the queen, 99.12and developing young bees living together as a family unit in a hive or other dwelling.99.13    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 99.14to read:99.15    Subd. 11a.Hive."Hive" means a frame hive, box hive, box, barrel, log gum, skep, 99.16or any other receptacle or container, natural or artificial, or any part of one, which is 99.17used as domicile for bees.99.18    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 99.19to read:99.20    Subd. 20a.Pollinator."Pollinator" means an insect that pollinates flowers.99.21    Sec. 8. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision 99.22to read:99.23    Subd. 4.Pollinators.The commissioner may take enforcement action under 99.24chapter 18D for a violation of this chapter, or any rule adopted under this chapter, 99.25that results in harm to pollinators, including but not limited to applying a product in 99.26a manner inconsistent with the product's label or labeling and resulting in pollinator 99.27death or willfully applying pesticide in a manner inconsistent with the product label or 99.28labeling. The commissioner must deposit any penalty collected under this subdivision in 99.29the pesticide regulatory account in section 18B.05.100.1    Sec. 9. Minnesota Statutes 2012, section 18B.04, is amended to read:100.218B.04 PESTICIDE IMPACT ON ENVIRONMENT.100.3(a) The commissioner shall:100.4(1) determine the impact of pesticides on the environment, including the impacts on 100.5surface water and groundwater in this state;100.6(2) develop best management practices involving pesticide distribution, storage, 100.7handling, use, and disposal; and100.8(3) cooperate with and assist other state agencies and local governments to protect 100.9public health, pollinators, and the environment from harmful exposure to pesticides.100.10(b) The commissioner may assemble a pollinator emergency response team of 100.11experts under section 16C.10, subdivision 2, to consult in the investigation of pollinator 100.12deaths or illnesses. The pollinator emergency response team may include representatives 100.13from local, state, and federal agencies; academia, including the University of Minnesota; 100.14or other professionals as deemed necessary by the commissioner.100.15    Sec. 10. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE; 100.16APPROPRIATION.100.17    Subdivision 1.Compensation required.(a) The commissioner of agriculture must 100.18compensate a person for an acute pesticide poisoning resulting in the death of bees or loss 100.19of bee colonies owned by the person, provided: 100.20(1) the person who applied the pesticide cannot be determined;100.21(2) the person who applied the pesticide did so in a manner consistent with the 100.22pesticide product's label or labeling; or 100.23(3) the person who applied the pesticide did so in a manner inconsistent with the 100.24pesticide product's label or labeling.100.25(b) Except as provided in this section, the bee owner is entitled to the fair market 100.26value of the dead bees and bee colonies losses as determined by the commissioner upon 100.27recommendation by academic experts and bee keepers. In any fiscal year, a bee owner 100.28must not be compensated for a claim that is less than $100 or compensated more than 100.29$20,000 for all eligible claims.100.30(c) To be eligible for compensation under this section, the bee owner must be 100.31registered with a commonly utilized pesticide registry program, as designated by the 100.32commissioner of agriculture.100.33    Subd. 2.Applicator responsible.In the event a person applies a pesticide in a 100.34manner inconsistent with the pesticide product's label or labeling requirements as approved 100.35by the commissioner and is determined to have caused the acute pesticide poisoning of bees, 101.1resulting in death or loss of a bee colony kept for commercial purposes, then the person so 101.2identified must bear the responsibility of restitution for the value of the bees to the owner. 101.3In these cases the commissioner must not provide compensation as provided in this section.101.4    Subd. 3.Claim form.The bee owner must file a claim on forms provided by the 101.5commissioner and available on the Department of Agriculture's Web site.101.6    Subd. 4.Determination.The commissioner must determine whether the death of 101.7the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the 101.8pesticide applicator can be determined, and whether the pesticide applicator applied the 101.9pesticide product in a manner consistent with the pesticide product's label or labeling.101.10    Subd. 5.Payments; denial of compensation.(a) If the commissioner determines 101.11the bee death or loss of bee colony was caused by an acute pesticide poisoning and 101.12either the pesticide applicator cannot be determined or the pesticide applicator applied 101.13the pesticide product in a manner consistent with the pesticide product's label or labeling, 101.14the commissioner may award compensation from the pesticide regulatory account. If the 101.15pesticide applicator can be determined and the applicator applied the pesticide product 101.16in a manner inconsistent with the product's label or labeling, the commissioner may 101.17collect a penalty from the pesticide applicator sufficient to compensate the bee owner 101.18for the fair market value of the dead bees and bee colonies losses, and must award the 101.19money to the bee owner.101.20(b) If the commissioner denies compensation claimed by a bee owner under this 101.21section, the commissioner must issue a written decision based upon the available evidence. 101.22The decision must include specification of the facts upon which the decision is based and 101.23the conclusions on the material issues of the claim. The commissioner must mail a copy 101.24of the decision to the bee owner.101.25(c) A decision to deny compensation claimed under this section is not subject to the 101.26contested case review procedures of chapter 14, but may be reviewed upon a trial de 101.27novo in a court in the county where the loss occurred. The decision of the court may be 101.28appealed as in other civil cases. Review in court may be obtained by filing a petition for 101.29review with the administrator of the court within 60 days following receipt of a decision 101.30under this section. Upon the filing of a petition, the administrator must mail a copy to the 101.31commissioner and set a time for hearing within 90 days of the filing.101.32    Subd. 6.Deduction from payment.The commissioner must reduce payments 101.33made under this section by any compensation received by the bee owner for dead bees and 101.34bee colonies losses as proceeds from an insurance policy or from another source.102.1    Subd. 7.Appropriation.The amount necessary to pay claims under this section, 102.2not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory 102.3account in section 18B.05.102.4    Sec. 11. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:102.5    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort 102.6Snelling upper bluff, with the exception of payment for costs of the water line as described 102.7in subdivision 6, shall be deposited in the natural resources fund and credited to a state 102.8park account. Interest earned on the money in the account accrues to the account.102.9(b) Revenue and expenses from the upper bluff shall be tracked separately within 102.10the account. Money in the account derived from the leasing or operation of the property 102.11described in subdivision 1 may be is appropriated annually to the commissioner for 102.12the payment of expenses attributable to the leasing, development, and operation of the 102.13property described in subdivision 1, including, but not limited to, the maintenance, repair, 102.14and rehabilitation of historic buildings and landscapes.102.15    Sec. 12. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:102.16    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate 102.17and maintain the Minnesota Zoological Garden at a site in Dakota County legally 102.18described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist 102.19of adequate facilities and structures for the collection, habitation, preservation, care, 102.20exhibition, examination or study of wild and domestic animals, including, but not limited 102.21to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board 102.22may provide such lands, buildings and equipment as it deems necessary for parking, 102.23transportation, entertainment, education or instruction of the public in connection with 102.24such Zoological Garden. The Zoological Garden is the official pollinator bank for the state 102.25of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to 102.26avert the extinction of pollinator species by cultivating insurance breeding populations.102.27    Sec. 13. [87A.10] SHOOTING SPORTS FACILITY GRANTS.102.28The commissioner of natural resources shall administer a program to provide 102.29cost-share grants to local recreational shooting clubs for up to 50 percent of the costs 102.30of developing or rehabilitating shooting sports facilities for public use. A facility 102.31rehabilitated or developed with a grant under this section must be open to the general 102.32public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner 102.33shall give preference to projects that will provide the most opportunities for youth.103.1    Sec. 14. [92.83] CONDEMNATION OF SCHOOL TRUST LAND.103.2    Subdivision 1.Purpose.The purpose of this section is to extinguish the school trust 103.3interest in school trust lands where long-term economic return is prohibited by designation 103.4or policy while producing economic benefits for Minnesota's public schools. For the 103.5purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the 103.6sale of school trust lands to a public sale, the commissioner of natural resources shall 103.7acquire school trust lands through condemnation, as provided in subdivision 2.103.8    Subd. 2.Commencement of condemnation proceedings.When the commissioner 103.9of natural resources has determined sufficient money is available to acquire any of the 103.10lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner 103.11shall proceed to extinguish the school trust interest by condemnation action. When 103.12requested by the commissioner, the attorney general shall commence condemnation of 103.13the identified school trust lands.103.14    Subd. 3.Payment.The portion of the payment of the award and judgment that 103.15is for the value of the land shall be deposited into the permanent school fund. The 103.16remainder of the award and judgment payment shall first be remitted for reimbursement 103.17to the accounts from which expenses were paid, with any remainder deposited into the 103.18permanent school fund.103.19    Sec. 15. Minnesota Statutes 2012, section 93.22, subdivision 1, is amended to read:103.20    Subdivision 1. Generally. (a) All payments under sections 
         93.14 to 
         93.285 shall be 103.21made to the Department of Natural Resources and shall be credited according to this section.103.22    (b) TwentyTen percent of all payments under sections 
         93.14 to 
         93.285 shall be 103.23credited to the minerals management account in the natural resources fund as costs for 103.24the administration and management of state mineral resources by the commissioner of 103.25natural resources.103.26    (c) The remainder of the payments shall be credited as follows:103.27    (1) if the lands or minerals and mineral rights covered by a lease are held by the state 103.28by virtue of an act of Congress, payments made under the lease shall be credited to the 103.29permanent fund of the class of land to which the leased premises belong;103.30    (2) if a lease covers the bed of navigable waters, payments made under the lease 103.31shall be credited to the permanent school fund of the state;103.32    (3) if the lands or minerals and mineral rights covered by a lease are held by the state 103.33in trust for the taxing districts, payments made under the lease shall be distributed annually 103.34on the first day of September to the respective counties in which the lands lie, to be 104.1apportioned among the taxing districts interested therein as follows: county, three-ninths; 104.2town or city, two-ninths; and school district, four-ninths;104.3    (4) if the lands or mineral rights covered by a lease became the absolute property of 104.4the state under the provisions of chapter 84A, payments made under the lease shall be 104.5distributed as follows: county containing the land from which the income was derived, 104.6five-eighths; and general fund of the state, three-eighths; and104.7    (5) except as provided under this section and except where the disposition of 104.8payments may be otherwise directed by law, payments made under a lease shall be paid 104.9into the general fund of the state.104.10    Sec. 16. Minnesota Statutes 2012, section 93.2236, is amended to read:104.1193.2236 MINERALS MANAGEMENT ACCOUNT.104.12(a) The minerals management account is created as an account in the natural 104.13resources fund. Interest earned on money in the account accrues to the account. Money in 104.14the account may be spent or distributed only as provided in paragraphs (b) and (c).104.15(b) If the balance in the minerals management account exceeds $3,000,000104.16 $1,500,000 on June 30, the amount exceeding $3,000,000 $1,500,000 must be distributed 104.17to the permanent school fund, the permanent university fund, and taxing districts as 104.18provided in section 
         93.22, subdivision 1, paragraph (c). The amount distributed to each 104.19fund must be in the same proportion as the total mineral lease revenue received in the 104.20previous biennium from school trust lands, university lands, and lands held by the state in 104.21trust for taxing districts.104.22(c) Subject to appropriation by the legislature, money in the minerals management 104.23account may be spent by the commissioner of natural resources for mineral resource 104.24management and projects to enhance future mineral income and promote new mineral 104.25resource opportunities.104.26    Sec. 17. Minnesota Statutes 2012, section 103G.251, is amended to read:104.27103G.251 INVESTIGATION OF ACTIVITIES WITHOUT PERMIT104.28 AFFECTING WATERS OF THE STATE.104.29    Subdivision 1. Investigations. If the commissioner determines that an investigation 104.30is in the public interest, the commissioner may investigate and monitor activities being 104.31conducted with or without a permit that may affect waters of the state.104.32    Subd. 2. Findings and order. (a) With or without a public hearing, the 104.33commissioner may make findings and issue orders related to activities being conducted 104.34without a permit that affect waters of the state as otherwise authorized under this chapter.105.1(b) A copy of the findings and order must be served on the person to whom the 105.2order is issued.105.3(c) If the commissioner issues the findings and order without a hearing, the person to 105.4whom the order is issued may file a demand for a hearing with the commissioner. The 105.5demand for a hearing must be accompanied by the bond as provided in section 
         103G.311, 105.6subdivision 6
         , and the hearing must be held in the same manner and with the same 105.7requirements as a hearing held under section 
         103G.311, subdivision 5. The demand for 105.8a hearing and bond must be filed by 30 days after the person is served with a copy of 105.9the commissioner's order.105.10(d) The hearing must be conducted as a contested case hearing under chapter 14.105.11(e) If the person to whom the order is addressed does not demand a hearing or 105.12demands a hearing but fails to file the required bond:105.13(1) the commissioner's order becomes final at the end of 30 days after the person is 105.14served with the order; and105.15(2) the person may not appeal the order.105.16(f) An order of the commissioner may be recorded or filed by the commissioner in 105.17the office of the county recorder or registrar of titles, as appropriate, in the county where 105.18the real property is located as a deed restriction on the property that runs with the land 105.19and is binding on the owners, successors, and assigns until the conditions of the order 105.20are met or the order is rescinded.105.21    Sec. 18. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:105.22    Subd. 5. Prohibition on once-through water use permits. (a) Except as provided 105.23in paragraph (c), the commissioner may not, after December 31, 1990, issue a water 105.24use permit to increase the volume of appropriation from a groundwater source for a 105.25once-through cooling system using in excess of 5,000,000 gallons annually.105.26(b) Except as provided in paragraph (c), once-through system water use permits 105.27using in excess of 5,000,000 gallons annually, must be terminated by the commissioner 105.28by the end of their design life but not later than December 31, 2010, unless the discharge 105.29is into a public water basin within a nature preserve approved by the commissioner and 105.30established prior to January 1, 2001. Existing once-through systems must not be expanded 105.31and are required to convert to water efficient alternatives within the design life of existing 105.32equipment.105.33(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of 105.34the commissioners of health and the Pollution Control Agency, may issue once-through 105.35system water use permits on an annual basis for aquifer storage and recovery systems that 106.1return all once-through system water to the source aquifer. Water use permit processing 106.2fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph, 106.3including any reuse of water returned to the source aquifer.106.4EFFECTIVE DATE.This section is effective January 1, 2015.106.5    Sec. 19. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:106.6    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs 106.7(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in 106.8accordance with the schedule of fees in this subdivision for each water use permit in force 106.9at any time during the year. Fees collected under this paragraph are credited to the water 106.10management account in the natural resources fund. The schedule is as follows, with the 106.11stated fee in each clause applied to the total amount appropriated:106.12    (1) $140 for amounts not exceeding 50,000,000 gallons per year;106.13    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 106.14than 100,000,000 gallons per year;106.15    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less 106.16than 150,000,000 gallons per year;106.17    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but 106.18less than 200,000,000 gallons per year;106.19    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less 106.20than 250,000,000 gallons per year;106.21    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but 106.22less than 300,000,000 gallons per year;106.23    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 106.24than 350,000,000 gallons per year;106.25    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 106.26less than 400,000,000 gallons per year;106.27    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 106.28than 450,000,000 gallons per year;106.29    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 106.30less than 500,000,000 gallons per year; and106.31    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.106.32    (b) For once-through cooling systems, a water use processing fee must be prescribed 106.33by the commissioner in accordance with the following schedule of fees for each water use 106.34permit in force at any time during the year:106.35    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and107.1    (2) for all other users, $420 per 1,000,000 gallons.107.2    (c) The fee is payable based on the amount of water appropriated during the year 107.3and, except as provided in paragraph (f), the minimum fee is $100.107.4    (d) For water use processing fees other than once-through cooling systems:107.5    (1) the fee for a city of the first class may not exceed $250,000 per year;107.6    (2) the fee for other entities for any permitted use may not exceed:107.7    (i) $60,000 per year for an entity holding three or fewer permits;107.8    (ii) $90,000 per year for an entity holding four or five permits; or107.9    (iii) $300,000 per year for an entity holding more than five permits;107.10    (3) the fee for agricultural irrigation may not exceed $750 per year;107.11    (4) the fee for a municipality that furnishes electric service and cogenerates steam 107.12for home heating may not exceed $10,000 for its permit for water use related to the 107.13cogeneration of electricity and steam; and107.14    (5) no fee is required for a project involving the appropriation of surface water to 107.15prevent flood damage or to remove flood waters during a period of flooding, as determined 107.16by the commissioner.107.17    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two107.18 ten percent per month calculated from the original due date must be imposed on the unpaid 107.19balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 107.20may not be imposed on an agency, as defined in section 
         16B.01, subdivision 2, or federal 107.21governmental agency holding a water appropriation permit.107.22    (f) The minimum water use processing fee for a permit issued for irrigation of 107.23agricultural land is $20 for years in which:107.24    (1) there is no appropriation of water under the permit; or107.25    (2) the permit is suspended for more than seven consecutive days between May 1 107.26and October 1.107.27(g) The commissioner shall waive the water use permit fee for installations and 107.28projects that use storm water runoff or where public entities are diverting water to treat a 107.29water quality issue and returning the water to its source without using the water for any 107.30other purpose, unless the commissioner determines that the proposed use adversely affects 107.31surface water or groundwater to a significant extent.107.32    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in 107.33paragraph (a) shall be applied to the volume of water used in each of the months of June, 107.34July, and August that exceeds the volume of water used in January for municipal water 107.35use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 108.1with more than one permit shall be determined based on the total appropriations from all 108.2permits that supply a common distribution system.108.3    Sec. 20. Minnesota Statutes 2012, section 103G.281, is amended by adding a 108.4subdivision to read:108.5    Subd. 4.Penalty for noncompliant reporting. The commissioner may assess 108.6penalties for noncompliant reporting of water use information as provided in this section. 108.7The penalty is ten percent of the annual water use permit processing fee.108.8    Sec. 21. [103G.299] ADMINISTRATIVE PENALTIES.108.9    Subdivision 1.Authority to issue penalty orders.(a) As provided in paragraph 108.10(b), the commissioner may issue an order requiring violations to be corrected and 108.11administratively assessing monetary penalties for violations of sections 103G.271 and 108.12103G.275, and any rules adopted under those sections.108.13(b) An order under this section may be issued to a person for water appropriation 108.14activities without a required permit.108.15(c) The order must be issued as provided in this section and in accordance with 108.16the plan prepared under subdivision 12.108.17    Subd. 2.Amount of penalty; considerations.(a) The commissioner may issue 108.18orders assessing administrative penalties based on potential for harm and deviation from 108.19compliance. For a violation that presents: (1) a minor potential for harm and deviation 108.20from compliance, the penalty will be no more than $1,000; (2) a moderate potential for 108.21harm and deviation from compliance, the penalty will be no more than $10,000; and (3) 108.22a severe potential for harm and deviation from compliance, the penalty will be no more 108.23than $20,000.108.24(b) In determining the amount of a penalty the commissioner may consider:108.25(1) the gravity of the violation, including potential for, or real, damage to the public 108.26interest or natural resources of the state;108.27(2) the history of past violations;108.28(3) the number of violations;108.29(4) the economic benefit gained by the person by allowing or committing the 108.30violation based on data from local or state bureaus or educational institutions; and108.31(5) other factors as justice may require, if the commissioner specifically identifies 108.32the additional factors in the commissioner's order.109.1(c) For a violation after an initial violation, including a continuation of the initial 109.2violation, the commissioner must, in determining the amount of a penalty, consider the 109.3factors in paragraph (b) and the:109.4(1) similarity of the most recent previous violation and the violation to be penalized;109.5(2) time elapsed since the last violation;109.6(3) number of previous violations; and109.7(4) response of the person to the most recent previous violation identified.109.8    Subd. 3.Contents of order.An order assessing an administrative penalty under 109.9this section must include:109.10(1) a concise statement of the facts alleged to constitute a violation;109.11(2) a reference to the section of the statute, rule, order, or term or condition of 109.12a permit that has been violated;109.13(3) a statement of the amount of the administrative penalty to be imposed and the 109.14factors upon which the penalty is based; and109.15(4) a statement of the person's right to review of the order.109.16    Subd. 4.Corrective order.(a) The commissioner may issue an order assessing a 109.17penalty and requiring the violations cited in the order to be corrected within a time period 109.18specified by the commissioner.109.19(b) The person to whom the order was issued must provide information to the 109.20commissioner before the 31st day after the order was received demonstrating that the 109.21violation has been corrected or that appropriate steps toward correcting the violation 109.22have been taken.109.23(c) The commissioner must determine whether the violation has been corrected and 109.24notify the person subject to the order of the commissioner's determination.109.25    Subd. 5.Penalty.(a) Unless the person requests review of the order under 109.26subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:109.27(1) on the 31st day after the order was received, if the person subject to the order 109.28fails to provide information to the commissioner showing that the violation has been 109.29corrected or that appropriate steps have been taken toward correcting the violation; or109.30(2) on the 20th day after the person receives the commissioner's determination under 109.31subdivision 4, paragraph (c), if the person subject to the order has provided information 109.32to the commissioner that the commissioner determines is not sufficient to show that the 109.33violation has been corrected or that appropriate steps have been taken toward correcting 109.34the violation.109.35(b) The penalty is due by 31 days after the order was received, unless review of the 109.36order under subdivision 6 or 7 has been sought.110.1(c) Interest at the rate established in section 549.09 begins to accrue on penalties 110.2under this subdivision on the 31st day after the order with the penalty was received.110.3    Subd. 6.Expedited administrative hearing.(a) Within 30 days after receiving 110.4an order or within 20 days after receiving notice that the commissioner has determined 110.5that a violation has not been corrected or appropriate steps have not been taken, the 110.6person subject to an order under this section may request an expedited hearing, using 110.7the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the 110.8commissioner's determination. The hearing request must specifically state the reasons 110.9for seeking review of the order. The person to whom the order is directed and the 110.10commissioner are the parties to the expedited hearing. The commissioner must notify the 110.11person to whom the order is directed of the time and place of the hearing at least 20 days 110.12before the hearing. The expedited hearing must be held within 30 days after a request for 110.13hearing has been filed with the commissioner unless the parties agree to a later date.110.14(b) All written arguments must be submitted within ten days following the close of 110.15the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to 110.161400.8612, as modified by this subdivision.110.17(c) The administrative law judge must issue a report making recommendations about 110.18the commissioner's action to the commissioner within 30 days following the close of the 110.19record. The administrative law judge may not recommend a change in the amount of the 110.20proposed penalty unless the administrative law judge determines that, based on the factors 110.21in subdivision 2, the amount of the penalty is unreasonable.110.22(d) If the administrative law judge makes a finding that the hearing was requested 110.23solely for purposes of delay or that the hearing request was frivolous, the commissioner 110.24may add to the amount of the penalty the costs charged to the department by the Office of 110.25Administrative Hearings for the hearing.110.26(e) If a hearing has been held, the commissioner may not issue a final order until at 110.27least five days after receipt of the report of the administrative law judge. The person to 110.28whom an order is issued may, within those five days, comment to the commissioner on the 110.29recommendations, and the commissioner must consider the comments. The final order 110.30may be appealed in the manner provided in sections 14.63 to 14.69.110.31(f) If a hearing has been held and a final order issued by the commissioner, the 110.32penalty must be paid by 30 days after the date the final order is received unless review of 110.33the final order is requested under sections 14.63 to 14.69. If review is not requested or the 110.34order is reviewed and upheld, the amount due is the penalty, together with interest accruing 110.35from 31 days after the original order was received at the rate established in section 549.09.111.1    Subd. 7.Mediation.In addition to review under subdivision 6, the commissioner 111.2may enter into mediation concerning an order issued under this section if the commissioner 111.3and the person to whom the order is issued both agree to mediation.111.4    Subd. 8.Penalties due and payable.The commissioner may enforce penalties that 111.5are due and payable under this section in any manner provided by law for the collection 111.6of debts.111.7    Subd. 9.Revocation and suspension of permit.If a person fails to pay a penalty 111.8owed under this section, the commissioner has grounds to revoke a permit or to refuse 111.9to amend a permit or issue a new permit.111.10    Subd. 10.Cumulative remedy.The authority of the commissioner to issue a 111.11corrective order assessing penalties is in addition to other remedies available under statutory 111.12or common law, except that the state may not seek civil penalties under any other provision 111.13of law for the violations covered by the administrative penalty order. The payment of a 111.14penalty does not preclude the use of other enforcement provisions, under which penalties 111.15are not assessed, in connection with the violation for which the penalty was assessed.111.16    Subd. 11.Deposit of fees.Fees collected under this section must be credited to the 111.17water management account in the natural resources fund.111.18    Subd. 12.Plan for use of administrative penalties.The commissioner must 111.19prepare a plan for using the administrative penalty authority in this section. The plan must 111.20include explanations for how the commissioner will determine whether violations are 111.21minor, moderate, or severe. The commissioner must provide a 30-day period for public 111.22comment on the plan. The plan must be finalized within six months after the effective 111.23date of this section.111.24    Sec. 22. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:111.25116V.03 APPROPRIATION.111.26$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the 111.27general fund to the commissioner of revenue for transfer to the agricultural project 111.28utilization account in the special revenue fund for the Agricultural Utilization Research 111.29Institute established under section 
         116V.01.111.30    Sec. 23. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by 111.31Laws 2009, chapter 37, article 1, section 61, is amended to read:

111.32Subd. 7.Fish and Wildlife Management123,000119,000

112.1Appropriations by Fund112.2General-0-(427,000)112.3Game and Fish123,000546,000

112.4$329,000 in 2009 is a reduction for fish and 112.5wildlife management.112.6$46,000 in 2009 is a reduction in the 112.7appropriation for the Minnesota Shooting 112.8Sports Education Center.112.9$52,000 in 2009 is a reduction for licensing.112.10$123,000 in 2008 and $246,000 in 2009 are 112.11from the game and fish fund to implement 112.12fish virus surveillance, prepare infrastructure 112.13to handle possible outbreaks, and implement 112.14control procedures for highest risk waters 112.15and fish production operations. This is a 112.16onetime appropriation.112.17Notwithstanding Minnesota Statutes, section 112.18297A.94
         , paragraph (e), $300,000 in 2009 112.19is from the second year appropriation 112.20in Laws 2007, chapter 57, article 1, 112.21section 4, subdivision 7, from the heritage 112.22enhancement account in the game and fish 112.23fund for shooting sports facilities and hunter 112.24education. Of this amount, $200,000 is to 112.25study, predesign, and design a shooting sports 112.26facility in the seven-county metropolitan 112.27area and to establish basic hunter education, 112.28firearms safety, and archery ranges on public 112.29land, and $100,000 is for a grant to the Itasca 112.30County Gun Club for shooting sports facility 112.31improvements. This is available onetime 112.32only and is available until expended.112.33$300,000 in 2009 is appropriated from the 112.34game and fish fund for only activities that 113.1improve, enhance, or protect fish and wildlife 113.2resources. This is a onetime appropriation.113.3    Sec. 24. Laws 2013, chapter 114, article 4, section 47, is amended by adding an 113.4effective date to read:113.5EFFECTIVE DATE.This section is effective June 1, 2013.113.6EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.113.7    Sec. 25. BEE VALUATION PROTOCOL REQUIRED.113.8No later than January 1, 2015, the commissioner of agriculture must report to 113.9the house of representatives and senate committees with jurisdiction over agriculture 113.10finance the protocol that the commissioner developed, in consultation with experts, for 113.11determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for 113.12purposes of compensation under Minnesota Statutes, section 18B.055.113.13ARTICLE 10113.14ECONOMIC DEVELOPMENT AND COMMERCE

113.15Section 1.  SUMMARY OF APPROPRIATIONS.

113.16The amounts shown in this section summarize direct appropriations, by fund, made 113.17in this article.

113.1820142015Total113.19General$(350,000)$17,192,000$16,842,000113.20Workforce Development-0-2,392,0002,392,000113.21Total$(350,000)$19,584,000$19,234,000

113.22Sec. 2. APPROPRIATIONS.

113.23The sums shown in the columns marked "Appropriations" are added to or, if shown 113.24in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, to the 113.25agencies and for the purposes specified in this article. The appropriations are from the 113.26general fund, or another named fund, and are available for the fiscal years indicated for 113.27each purpose. The figures "2014" and "2015" used in this article mean that the addition to 113.28the appropriation listed under them is available for the fiscal year ending June 30, 2014, or 113.29June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June 113.3030, 2014, are effective the day following final enactment.

114.1APPROPRIATIONS114.2Available for the Year114.3Ending June 30114.420142015

114.5114.6Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

114.7Subdivision 1.Total Appropriation$-0-$16,259,000

114.8Appropriations by Fund114.9General-0-13,867,000114.10114.11Workforce Development-0-2,392,000

114.12The amounts that may be spent for each 114.13purpose are specified in the following 114.14subdivisions.

114.15114.16Subd. 2.Business and Community Development-0-12,950,000

114.17$2,400,000 in 2015 is for grants to the six 114.18Minnesota regional initiative foundations for 114.19business revolving loans or other lending 114.20programs. This is a onetime appropriation 114.21and is available until expended.114.22$4,500,000 in 2015 is for the greater 114.23Minnesota business development public 114.24infrastructure grant program under Minnesota 114.25Statutes, section 116J.431, for grants to 114.26design, construct, prepare, and improve 114.27infrastructure for economic development 114.28for the cities of Thief River Falls, Eveleth, 114.29Alexandria, Virginia, and Hibbing. This is a 114.30onetime appropriation and is available until 114.31expended.114.32$450,000 in 2015 is for grants to small 114.33business development centers under 114.34Minnesota Statutes, section 116J.68. This is 114.35a onetime appropriation and is available until 114.36expended.115.1$450,000 in 2015 is for a grant to the 115.2neighborhood development center for 115.3the small business incubators program. 115.4Of this amount, $200,000 is for capital 115.5improvements to existing small businesses; 115.6$150,000 is for technical assistance to 115.7business entities operating within a small 115.8business incubator; and $100,000 is for the 115.9creation and operation of a small business 115.10incubator revolving loan fund. This is a 115.11onetime appropriation and is available until 115.12expended.115.13$150,000 in 2015 is for a grant to the city 115.14of Proctor to design and construct a sand 115.15and salt storage facility to prevent runoff 115.16into surface water. This appropriation is not 115.17available until the commissioner determines 115.18that at least an equal amount is committed to 115.19the project from nonstate sources.115.20$5,000,000 in 2015 is for the Minnesota 115.21minerals 21st century fund under Minnesota 115.22Statutes, section 116J.423. This is a onetime 115.23appropriation.

115.24Subd. 3.Workforce Development-0-1,200,000

115.25$350,000 in 2015 is from the workforce 115.26development fund for a grant to the Northwest 115.27Indian Opportunities Industrialization 115.28Center and may be used for a green jobs 115.29deconstruction pilot program. This is a 115.30onetime appropriation and is available until 115.31expended.115.32$250,000 in 2015 is from the workforce 115.33development fund for a grant to the Northeast 115.34Minnesota Office of Job Training. This is a 116.1onetime appropriation and is available until 116.2expended.116.3$600,000 in 2015 is from the workforce 116.4development fund for a grant to the Twin 116.5Cities RISE! to provide job training. This is 116.6a onetime appropriation and is available until 116.7expended.

116.8Subd. 4.General Support Services-0-500,000

116.9$500,000 in 2015 is for establishing 116.10and operating the interagency Olmstead 116.11Implementation Office. The base 116.12appropriation for the interagency office in 116.13fiscal year 2016 and later is $1,000,000 each 116.14year.

116.15Subd. 5.Vocational Rehabilitation-0-1,609,000

116.16Appropriations by Fund116.17General-0-417,000116.18116.19Workforce Development-0-1,192,000

116.20$417,000 in 2015 from the general fund 116.21and $500,000 in 2015 from the workforce 116.22development fund are for rate increases to 116.23providers of extended employment services 116.24for persons with severe disabilities under 116.25Minnesota Statutes, section 268A.15. This 116.26is a onetime appropriation and is available 116.27until expended.116.28$692,000 in 2015 from the workforce 116.29development fund is for grants to the eight 116.30Minnesota Centers for Independent Living 116.31for employment and job training support 116.32services. This is a onetime appropriation and 116.33is available until expended.

116.34Sec. 4. HOUSING FINANCE AGENCY$-0-$ 3,100,000

117.1$3,100,000 in 2015 is for the economic 117.2development and housing challenge program 117.3under Minnesota Statutes, section 462A.33, 117.4for targeted housing for rural comprehensive 117.5or technical colleges that offer natural 117.6resources or aviation maintenance programs 117.7and are located in communities or regions 117.8with low housing vacancy rates. This is a 117.9onetime appropriation and is available until 117.10expended.

117.11117.12Sec. 5. BUREAU OF MEDIATION SERVICES$-0-$125,000

117.13$125,000 in 2015 is for the Public 117.14Employment Relations Board.

117.15Sec. 6. EXPLORE MINNESOTA TOURISM$-0-$100,000

117.16$100,000 in 2015 is for a grant to the Mille 117.17Lacs Tourism Council to enhance marketing 117.18activities related to tourism promotion in 117.19the Mille Lacs Lake area. This is a onetime 117.20appropriation.

117.21Sec. 7. DEPARTMENT OF COMMERCE$(350,000)$-0-

117.22$350,000 in 2014 is a onetime reduction to 117.23the appropriation for the gold bullion dealer 117.24registration program.117.25    Sec. 8. TRANSFER.117.26By June 30, 2015, the commissioner of management and budget shall transfer 117.27$9,000,000 in assets of the workers' compensation assigned risk plan created under 117.28Minnesota Statutes, section 79.252, to the general fund.117.29    Sec. 9. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

117.30117.31Subd. 2.Business and Community Development53,642,00045,407,000

118.1Appropriations by Fund118.2General52,942,00044,707,000118.3Remediation700,000700,000

118.4(a)(1) $15,000,000 each year is for 118.5the Minnesota investment fund under 118.6Minnesota Statutes, section 
         116J.8731. This 118.7appropriation is available until spent.118.8(2) Of the amount available under clause 118.9(1), up to $3,000,000 in fiscal year 2014 118.10is for a loan to facilitate initial investment 118.11in the purchase and operation of a 118.12biopharmaceutical manufacturing facility. 118.13This loan is not subject to the loan limitations 118.14under Minnesota Statutes, section 
         116J.8731, 118.15and shall be forgiven by the commissioner 118.16of employment and economic development 118.17upon verification of meeting performance 118.18goals. Purchases related to and for the 118.19purposes of this loan award must be made 118.20between January 1, 2013, and June 30, 2015. 118.21The amount under this clause is available 118.22until expended.118.23(3) Of the amount available under clause (1), 118.24up to $2,000,000 is available for subsequent 118.25investment in the biopharmaceutical facility 118.26project in clause (2). The amount under this 118.27clause is available until expended. Loan 118.28thresholds under clause (2) must be achieved 118.29and maintained to receive funding. Loans 118.30are not subject to the loan limitations under 118.31Minnesota Statutes, section 
         116J.8731, and 118.32shall be forgiven by the commissioner of 118.33employment and economic development 118.34upon verification of meeting performance 118.35goals. Purchases related to and for the 119.1purposes of loan awards must be made during 119.2the biennium the loan was received.119.3(4) Notwithstanding any law to the contrary, 119.4the biopharmaceutical manufacturing facility 119.5in this paragraph shall be deemed eligible 119.6for the Minnesota job creation fund under 119.7Minnesota Statutes, section 
         116J.8748, 119.8by having at least $25,000,000 in capital 119.9investment and 190 retained employees.119.10(5) For purposes of clauses (1) to (4), 119.11"biopharmaceutical" and "biologics" are 119.12interchangeable and mean medical drugs 119.13or medicinal preparations produced using 119.14technology that uses biological systems, 119.15living organisms, or derivatives of living 119.16organisms, to make or modify products or 119.17processes for specific use. The medical drugs 119.18or medicinal preparations include but are not 119.19limited to proteins, antibodies, nucleic acids, 119.20and vaccines.119.21(b) $12,000,000 each year is for the 119.22Minnesota job creation fund under Minnesota 119.23Statutes, section 
         116J.8748. Of this amount, 119.24the commissioner of employment and 119.25economic development may use up to three 119.26percent for administrative expenses. This 119.27appropriation is available until spent. The 119.28base funding for this program shall be 119.29$12,500,000 each year in the fiscal year 119.302016-2017 biennium.119.31(c) $1,272,000 each year is from the 119.32general fund for contaminated site cleanup 119.33and development grants under Minnesota 119.34Statutes, sections 
         116J.551 to 
         116J.558. This 119.35appropriation is available until expended.120.1(d) $700,000 each year is from the 120.2remediation fund for contaminated site 120.3cleanup and development grants under 120.4Minnesota Statutes, sections 
         116J.551 to 120.5116J.558
         . This appropriation is available 120.6until expended.120.7(e) $1,425,000 the first year and $1,425,000 120.8the second year are from the general fund for 120.9the business development competitive grant 120.10program. Of this amount, up to five percent 120.11is for administration and monitoring of the 120.12business development competitive grant 120.13program. All grant awards shall be for two 120.14consecutive years. Grants shall be awarded 120.15in the first year.120.16(f) $4,195,000 each year is from the general 120.17fund for the Minnesota job skills partnership 120.18program under Minnesota Statutes, sections 120.19116L.01
          to 
         116L.17. If the appropriation for 120.20either year is insufficient, the appropriation 120.21for the other year is available. This 120.22appropriation is available until spent.120.23(g) $6,000,000 the first year is from the 120.24general fund for the redevelopment program 120.25under Minnesota Statutes, section 
         116J.571. 120.26This is a onetime appropriation and is 120.27available until spent.120.28(h) $12,000 each year is from the general 120.29fund for a grant to the Upper Minnesota Film 120.30Office.120.31(i) $325,000 each year is from the general 120.32fund for the Minnesota Film and TV Board. 120.33The appropriation in each year is available 120.34only upon receipt by the board of $1 in 120.35matching contributions of money or in-kind 121.1contributions from nonstate sources for every 121.2$3 provided by this appropriation, except that 121.3each year up to $50,000 is available on July 121.41 even if the required matching contribution 121.5has not been received by that date.121.6(j) $100,000 each year is for a grant to the 121.7Northern Lights International Music Festival.121.8(k) $5,000,000 each year is from the general 121.9fund for a grant to the Minnesota Film 121.10and TV Board for the film production jobs 121.11program under Minnesota Statutes, section 121.12116U.26
         . This appropriation is available 121.13until expended. The base funding for this 121.14program shall be $1,500,000 each year in the 121.15fiscal year 2016-2017 biennium.121.16(l) $375,000 each year is from the general 121.17fund for a grant to Enterprise Minnesota, Inc., 121.18for the small business growth acceleration 121.19program under Minnesota Statutes, section 121.20116O.115
         . This is a onetime appropriation.121.21(m) $160,000 each year is from the general 121.22fund for a grant to develop and implement 121.23a southern and southwestern Minnesota 121.24initiative foundation collaborative pilot 121.25project. Funds available under this paragraph 121.26must be used to support and develop 121.27entrepreneurs in diverse populations in 121.28southern and southwestern Minnesota. This 121.29is a onetime appropriation and is available 121.30until expended. 121.31(n) $100,000 each year is from the general 121.32fund for the Center for Rural Policy 121.33and Development. This is a onetime 121.34appropriation.122.1(o) $250,000 each year is from the general 122.2fund for the Broadband Development Office.122.3(p) $250,000 the first year is from the 122.4general fund for a onetime grant to the St. 122.5Paul Planning and Economic Development 122.6Department for neighborhood stabilization 122.7use in NSP3.122.8(q) $1,235,000 the first year is from the 122.9general fund for a onetime grant to a city 122.10of the second class that is designated as an 122.11economically depressed area by the United 122.12States Department of Commerce. The 122.13appropriation is for economic development, 122.14redevelopment, and job creation programs 122.15and projects. This appropriation is available 122.16until expended.122.17(r) $875,000 each year is from the general 122.18fund for the Host Community Economic 122.19Development Program established in 122.20Minnesota Statutes, section 
         116J.548.122.21(s) $750,000 the first year is from the general 122.22fund for a onetime grant to the city of Morris 122.23for loans or grants to agricultural processing 122.24facilities for energy efficiency improvements. 122.25Funds available under this section shall be 122.26used to increase conservation and promote 122.27energy efficiency through retrofitting existing 122.28systems and installing new systems to 122.29recover waste heat from industrial processes 122.30and reuse energy. This appropriation is not 122.31available until the commissioner determines 122.32that at least $1,250,000 a match of $750,000122.33 is committed to the project from nonpublic 122.34sources. This appropriation is available until 122.35expended.123.1EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.123.2    Sec. 10. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

123.3Subd. 6.Vocational Rehabilitation27,691,00027,691,000

123.4Appropriations by Fund123.5General20,861,00020,861,000123.6123.7Workforce 
                  		Development6,830,0006,830,000

123.8(a) $10,800,000 each year is from the general 123.9fund for the state's vocational rehabilitation 123.10program under Minnesota Statutes, chapter 123.11268A.123.12(b) $2,261,000 each year is from the general 123.13fund for grants to centers for independent 123.14living under Minnesota Statutes, section 123.15268A.11
         .123.16(c) $5,745,000 each year from the general 123.17fund and $6,830,000 each year from the 123.18workforce development fund is for extended 123.19employment services for persons with 123.20severe disabilities under Minnesota Statutes, 123.21section 
         268A.15. The allocation of extended 123.22employment funds to Courage Center from 123.23July 1, 2012 to June 30, 2013 must be 123.24contracted to Allina Health systems from 123.25July 1, 2013 to June 30, 2014 2015 to provide 123.26extended employment services in accordance 123.27with Minnesota Rules, parts 3300.2005 to 123.283300.2055.123.29(d) $2,055,000 each year is from the general 123.30fund for grants to programs that provide 123.31employment support services to persons with 123.32mental illness under Minnesota Statutes, 123.33sections 
         268A.13 and 
         268A.14. The base 123.34appropriation for this program is $1,555,000 124.1each year in the fiscal year 2016-2017 124.2biennium.124.3    Sec. 11. ALTERNATIVE ENERGY PROJECTS.124.4The amounts appropriated under Laws 2009, chapter 78, article 1, section 3, 124.5subdivision 2, as amended, may be used for grants or loans to manufacturers of bio-based 124.6products.124.7    Sec. 12. MINNESOTA MINERALS 21ST CENTURY FUND TRANSFER.124.8(a) If, on the basis of a November forecast of general fund revenues and 124.9expenditures, the commissioner of management and budget determines that there will be 124.10a positive unrestricted general fund balance at the close of the biennium and that the 124.11provisions of Minnesota Statutes, section 16A.152, subdivision 1b, paragraph (b), and 124.12subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer 124.13from the general fund to the Minnesota minerals 21st century fund under Minnesota 124.14Statutes, section 116J.423, an amount not to exceed 20 percent of the positive unrestricted 124.15general fund balance determined in the forecast. The total amount authorized under this 124.16section, for all transfers, must not exceed $19,100,000.124.17(b) This section is repealed the day following the transfer in which the total amount 124.18transferred under this section to the Minnesota minerals 21st century fund is $19,100,000.124.19EFFECTIVE DATE.This section is effective for November forecasts issued 124.20following final enactment.124.21ARTICLE 11124.22ECONOMIC DEVELOPMENT AND COMMERCE124.23 FISCAL IMPLEMENTATION PROVISIONS124.24    Section 1. Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to 124.25read:124.26    Subd. 5. Grant limits. A Minnesota investment fund grant may not be approved 124.27for an amount in excess of $1,000,000. This limit covers all money paid to complete the 124.28same project, whether paid to one or more grant recipients and whether paid in one or 124.29more fiscal years. A local community or recognized Indian tribal government may retain 124.3020 percent, but not more than $100,000The portion of a Minnesota investment fund 124.31grant that exceeds $100,000 must be repaid to the state when it is repaid to the local 124.32community or recognized Indian tribal government by the person or entity to which it 125.1was loaned by the local community or Indian tribal government. Money repaid to the 125.2state must be credited to a Minnesota investment revolving loan account in the state 125.3treasury. Funds in the account are appropriated to the commissioner and must be used 125.4in the same manner as are funds appropriated to the Minnesota investment fund. Funds 125.5repaid to the state through existing Minnesota investment fund agreements must be 125.6credited to the Minnesota investment revolving loan account effective July 1, 2005. A 125.7grant or loan may not be made to a person or entity for the operation or expansion of a 125.8casino or a store which is used solely or principally for retail sales. Persons or entities 125.9receiving grants or loans must pay each employee total compensation, including benefits 125.10not mandated by law, that on an annualized basis is equal to at least 110 percent of the 125.11federal poverty level for a family of four.125.12    Sec. 2. Minnesota Statutes 2012, section 216B.1611, is amended by adding a 125.13subdivision to read:125.14    Subd. 3a.Project information.(a) Beginning July 1, 2014, each electric utility 125.15shall request an applicant for interconnection of distributed renewable energy generation 125.16to provide the following information, in a format prescribed by the commissioner: 125.17(1) the nameplate capacity of the facility in the application;125.18(2) the total preincentive installed cost of the generation system at the facility;125.19(3) the energy source of the facility; and125.20(4) the zip code in which the facility is to be located.125.21(b) The commissioner shall develop or identify a system to collect and process 125.22the information under this subdivision from each utility, and make nonproject-specific 125.23data available to the public on a periodic basis as determined by the commissioner, and 125.24in a format determined by the commissioner. The commissioner may solicit proposals 125.25from outside parties to develop the system.125.26(c) Electric utilities collecting and transferring data under this subdivision are not 125.27responsible for the accuracy, completeness, or quality of the information under this 125.28subdivision.125.29(d) Any information under this subdivision is nonpublic, until it is made public by 125.30the commissioner as provided under paragraph (b) of this subdivision.125.31EFFECTIVE DATE.This section is effective the day following final enactment.125.32    Sec. 3. Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:125.33    Subd. 1d. Technical assistance.(a) The commissioner shall evaluate energy 125.34conservation improvement programs on the basis of cost-effectiveness and the reliability 126.1of the technologies employed. The commissioner shall, by order, establish, maintain, and 126.2update energy-savings assumptions that must be used when filing energy conservation 126.3improvement programs. The commissioner shall establish an inventory of the most 126.4effective energy conservation programs, techniques, and technologies, and encourage all 126.5Minnesota utilities to implement them, where appropriate, in their service territories. 126.6The commissioner shall describe these programs in sufficient detail to provide a utility 126.7reasonable guidance concerning implementation. The commissioner shall prioritize the 126.8opportunities in order of potential energy savings and in order of cost-effectiveness. The 126.9commissioner may contract with a third party to carry out any of the commissioner's duties 126.10under this subdivision, and to obtain technical assistance to evaluate the effectiveness of 126.11any conservation improvement program. The commissioner may assess up to $800,000 126.12annually until June 30, 2009, and $450,000 $850,000 annually thereafter for the purposes 126.13of this subdivision. The assessments must be deposited in the state treasury and credited 126.14to the energy and conservation account created under subdivision 2a. An assessment 126.15made under this subdivision is not subject to the cap on assessments provided by section 126.16216B.62
         , or any other law.126.17    (b) Of the assessment authorized under paragraph (a), the commissioner may expend 126.18up to $400,000 annually for the purpose of developing, operating, maintaining, and 126.19providing technical support for a uniform electronic data reporting and tracking system 126.20available to all utilities subject to this section, in order to enable accurate measurement of 126.21the cost and energy savings of the energy conservation improvements required by this 126.22section. This paragraph expires June 30, 2017, and may be used for no more than three 126.23annual assessments occurring prior to that date.126.24EFFECTIVE DATE.This section is effective the day following final enactment 126.25and applies to assessments made after June 30, 2014.126.26    Sec. 4. Minnesota Statutes 2012, section 216C.145, is amended to read:126.27216C.145 MICROENERGYCOMMUNITY ENERGY EFFICIENCY AND 126.28RENEWABLE ENERGY LOAN PROGRAM.126.29    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this 126.30section.126.31    (b) "Small-scale Renewable Community energy efficiency and renewable energy" 126.32projects include solar thermal water heating, solar electric or photovoltaic equipment, 126.33small wind energy conversion systems of less than 250 kW, anaerobic digester gas 126.34systems, microhydro systems up to 100 kW, and heating and cooling applications using 127.1geothermal energysolar thermal or ground source technology, and industrial, commercial, 127.2or public energy efficiency projects.127.3    (c) "Unit of local government" means any home rule charter or statutory city, county, 127.4commission, district, authority, or other political subdivision or instrumentality of this 127.5state, including a sanitary district, park district, the Metropolitan Council, a port authority, 127.6an economic development authority, or a housing and redevelopment authority.127.7    Subd. 2. Program established. The commissioner of commerce shall develop, 127.8implement, and administer a microenergycommunity energy efficiency and renewable 127.9energy loan program under this section.127.10    Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term 127.11loans to units of local government to (1) finance community-owned or publicly owned 127.12small scale renewable energy systems or to cost-effective energy efficiency improvements 127.13to public buildings, (2) provide loans or other aids to small businesses to install small-scale127.14 renewable energy systems, or (3) provide loans or other aids to industrial or commercial 127.15businesses, including health care facilities, for cost-effective energy efficiency projects or 127.16to install renewable energy systems.127.17    (b) The commissioner may participate in loans made by the Housing Finance 127.18Agency to residential property owners, private developers, nonprofit organizations, 127.19or units of local government under sections 
         462A.05, subdivisions 14 and 18; and 127.20462A.33 
         for the construction, purchase, or rehabilitation of residential housing to facilitate 127.21the installation of small-scale renewable energy systems in residential housing and 127.22cost-effective energy conservation improvements identified in an energy efficiency audit. 127.23The commissioner shall assist the Housing Finance Agency in assessing the technical 127.24qualifications of loan applicants.127.25(c) A local unit of government shall not require an industrial customer to release 127.26its energy usage data as part of a community energy efficiency project or loan under this 127.27section. Industrial energy usage data may only be released upon the express, written 127.28consent of the industrial customer.127.29    Subd. 4. Technical standards. The commissioner shall determine technical 127.30standards for small-scale renewable energy systemscommunity energy efficiency and 127.31renewable energy projects to qualify for loans under this section. The commissioner shall 127.32not condition qualification of a community energy efficiency project for a loan under this 127.33section on the production of industrial energy usage data or aggregation of energy usage 127.34data that includes an industrial customer.127.35    Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in 127.36the State Register a request for proposals from units of local government for a loan under 128.1this section. Within 45 days after the deadline for receipt of proposals, the commissioner 128.2shall select proposals based on the following criteria:128.3    (1) the reliability and cost-effectiveness of the renewable or energy efficiency 128.4technology to be installed under the proposal;128.5    (2) the extent to which the proposal effectively integrates with the conservation and 128.6energy efficiency programs or goals of the energy utilities serving the proposer;128.7    (3) the total life cycle energy use and greenhouse gas emissions reductions per 128.8dollar of installed cost;128.9    (4) the diversity of the renewable energy or energy efficiency technology installed 128.10under the proposal;128.11    (5) the geographic distribution of projects throughout the state;128.12    (6) the percentage of total project cost requested;128.13    (7) the proposed security for payback of the loan; and128.14    (8) other criteria the commissioner may determine to be necessary and appropriate.128.15    Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest 128.16rate required to recover principal and interest plus the costs of issuing the loan, and must 128.17be for a minimum of 15 years, unless the commissioner determines that a shorter loan 128.18period of no less than tenfive years is necessary and feasible.128.19    Subd. 7. Account. A microenergycommunity energy efficiency and renewable 128.20energy loan account is established in the state treasury. Money in the account consists of 128.21the proceeds of revenue bonds issued under section 
         216C.146, interest and other earnings 128.22on money in the account, money received in repayment of loans from the account, 128.23legislative appropriations, and money from any other source credited to the account.128.24    Subd. 8. Appropriation. Money in the account is appropriated to the commissioner 128.25of commerce to make microenergycommunity energy efficiency and renewable energy128.26 loans under this section and to the commissioner of management and budget to pay debt 128.27service and other costs under section 
         216C.146. Payment of debt service costs and funding 128.28reserves take priority over use of money in the account for any other purpose.128.29    Sec. 5. Minnesota Statutes 2012, section 216C.146, is amended to read:128.30216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND 128.31RENEWABLE ENERGY LOAN REVENUE BONDS.128.32    Subdivision 1. Bonding authority; definition. (a) The commissioner of 128.33management and budget, if requested by the commissioner of commerce, shall sell and 128.34issue state revenue bonds for the following purposes:129.1    (1) to make microenergy community energy efficiency and renewable energy loans 129.2under section 
         216C.145;129.3    (2) to pay the costs of issuance, debt service, and bond insurance or other credit 129.4enhancements, and to fund reserves; and129.5    (3) to refund bonds issued under this section.129.6    (b) The aggregate principal amount of bonds for the purposes of paragraph (a), 129.7clause (1), that may be outstanding at any time may not exceed $100,000,000, of which 129.8up to $20,000,000 shall be reserved for business and public entity projects; the principal 129.9amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and 129.10(3), is not limited.129.11    (c) For the purpose of this section, "commissioner" means the commissioner of 129.12management and budget.129.13    Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms 129.14and conditions the commissioner determines to be in the best interests of the state. The 129.15bonds may be sold at public or private sale. The commissioner may enter into any 129.16agreements or pledges the commissioner determines necessary or useful to sell the bonds 129.17that are not inconsistent with section 
         216C.145. Sections 
         16A.672 to 
         16A.675 apply to 129.18the bonds. The proceeds of the bonds issued under this section must be credited to the 129.19microenergy community energy efficiency and renewable energy loan account created 129.20under section 
         216C.145.129.21    Subd. 3. Revenue sources. The debt service on the bonds is payable only from the 129.22following sources:129.23    (1) revenue credited to the microenergy community energy efficiency and renewable 129.24energy loan account from the sources identified in section 
         216C.145 or from any other 129.25source; and129.26    (2) other revenues pledged to the payment of the bonds, including reserves 129.27established by a local government unit.129.28    Subd. 4. Refunding bonds. The commissioner may issue bonds to refund 129.29outstanding bonds issued under subdivision 1, including the payment of any redemption 129.30premiums on the bonds and any interest accrued or to accrue to the first redemption date 129.31after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the 129.32discretion of the commissioner, be applied to the purchases or payment at maturity of the 129.33bonds to be refunded, or the redemption of the outstanding bonds on the first redemption 129.34date after delivery of the refunding bonds and may, until so used, be placed in escrow to 129.35be applied to the purchase, retirement, or redemption. Refunding bonds issued under this 129.36subdivision must be issued and secured in the manner provided by the commissioner.130.1    Subd. 5. Not a general or moral obligation. Bonds issued under this section are 130.2not public debt, and the full faith, credit, and taxing powers of the state are not pledged 130.3for their payment. The bonds may not be paid, directly in whole or in part from a tax of 130.4statewide application on any class of property, income, transaction, or privilege. Payment 130.5of the bonds is limited to the revenues explicitly authorized to be pledged under this 130.6section. The state neither makes nor has a moral obligation to pay the bonds if the pledged 130.7revenues and other legal security for them is insufficient.130.8    Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for 130.9bondholders. The trustee has the powers and authority vested in it by the commissioner 130.10under the bond and trust indentures.130.11    Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from 130.12the time the pledge is made. The money or property pledged and later received by the 130.13commissioner is immediately subject to the lien of the pledge without any physical 130.14delivery of the property or money or further act, and the lien of the pledge is valid and 130.15binding as against all parties having claims of any kind in tort, contract, or otherwise 130.16against the commissioner, whether or not those parties have notice of the lien or pledge. 130.17Neither the order nor any other instrument by which a pledge is created need be recorded.130.18    Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to 130.19agreements with bondholders that may then exist, may, out of any money available for the 130.20purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are 130.21then redeemable, the redemption price then applicable plus accrued interest to the next 130.22interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price 130.23applicable on the first date after the purchase upon which the bonds become subject to 130.24redemption plus accrued interest to that date.130.25    Subd. 9. State pledge against impairment of contracts. The state pledges and 130.26agrees with the holders of any bonds that the state will not limit or alter the rights vested in 130.27the commissioner to fulfill the terms of any agreements made with the bondholders, or 130.28in any way impair the rights and remedies of the holders until the bonds, together with 130.29interest on them, with interest on any unpaid installments of interest, and all costs and 130.30expenses in connection with any action or proceeding by or on behalf of the bondholders, 130.31are fully met and discharged. The commissioner may include this pledge and agreement 130.32of the state in any agreement with the holders of bonds issued under this section.130.33    Sec. 6. Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:131.1    Subd. 14. Affirmative business enterprise employment. "Affirmative business 131.2enterprise employment" means employment which provides paid work on the premises of 131.3an affirmative business enterprise as certified by the commissioner.131.4    Affirmative business enterprise employment is considered communitysupported 131.5employment for purposes of funding under Minnesota Rules, parts 3300.1000 to 131.63300.2055, provided that the wages for individuals reported must be at or above customary 131.7wages for the same employer. The employer must also provide one benefit package that is 131.8available to all employees at the specific site certified as an affirmative business enterprise.131.9    Sec. 7. [268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE 131.10DEAF, DEAFBLIND, OR HARD-OF-HEARING.131.11    Subdivision 1.Deaf, deafblind, and hard-of-hearing grants.(a) The 131.12commissioner shall develop and implement a specialized statewide grant program to 131.13provide long-term supported employment services for persons who are deaf, deafblind, 131.14and hard-of-hearing. Programs and services eligible for grants under this section must:131.15(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and 131.16advancing in employment;131.17(2) provide services with staff who must possess fluency in all forms of manual 131.18communication, including American Sign Language; knowledge of hearing loss and 131.19psychosocial implications; sensitivity to cultural issues; familiarity with community 131.20services and communication strategies for people who are hard-of-hearing and do not sign; 131.21and awareness of adaptive technology options;131.22(3) provide specialized employment support services for individuals who have 131.23a combined hearing and vision loss that address the individual's unique ongoing visual 131.24and auditory communication needs; and131.25(4) involve clients in the planning, development, oversight, and delivery of 131.26long-term ongoing support services.131.27(b) Priority for funding shall be given to organizations with experience in developing  131.28innovative employment support services for persons who are deaf, deafblind, and  131.29hard-of-hearing. Each applicant for funds under this section shall submit an evaluation  131.30protocol as part of the grant application.131.31    Subd. 2.Employment services for transition-aged youth who are deaf, 131.32deafblind, and hard-of-hearing.(a) The commissioner shall develop statewide or 131.33regional grant programs to provide school-based communication, access, and employment 131.34services for youth who are deaf, deafblind, and hard-of-hearing. Services must include 132.1staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise 132.2in serving transition-aged youth. 132.3(b) Priority for funding shall be given to organizations with experience in providing  132.4innovative employment support services and readiness for postsecondary training for 132.5transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for 132.6funds under this section shall submit an evaluation protocol as part of the grant application.132.7    Subd. 3.Administration.Up to five percent of the biennial appropriation for the 132.8purpose of this section is available to the commissioner for administration of the program.132.9EFFECTIVE DATE.This section is effective July 1, 2015.132.10    Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:132.11    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of 132.12merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 132.13provided in paragraph (c), must be allocated to the city or town in the county in which 132.14the lands from which taconite was mined or quarried were located or within which the 132.15concentrate was produced. If the mining, quarrying, and concentration, or different steps 132.16in either thereof are carried on in more than one taxing district, the commissioner shall 132.17apportion equitably the proceeds of the part of the tax going to cities and towns among 132.18such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to 132.19the operation of mining or quarrying the taconite, and the remainder to the concentrating 132.20plant and to the processes of concentration, and with respect to each thereof giving due 132.21consideration to the relative extent of such operations performed in each such taxing 132.22district. The commissioner's order making such apportionment shall be subject to review 132.23by the Tax Court at the instance of any of the interested taxing districts, in the same 132.24manner as other orders of the commissioner.132.25(b) Four cents per taxable ton shall be allocated to cities and organized townships 132.26affected by mining because their boundaries are within three miles of a taconite mine pit 132.27that has been actively mined in at least one of the prior three years. If a city or town is 132.28located near more than one mine meeting these criteria, the city or town is eligible to 132.29receive aid calculated from only the mine producing the largest taxable tonnage. When 132.30more than one municipality qualifies for aid based on one company's production, the aid 132.31must be apportioned among the municipalities in proportion to their populations. Of The 132.32amounts distributed under this paragraph to each municipality, one-half must be used for 132.33infrastructure improvement projects, and one-half must be used for projects in which two 132.34or more municipalities cooperate. Each municipality that receives a distribution under this 132.35paragraph must report annually to the Iron Range Resources and Rehabilitation Board and 133.1the commissioner of Iron Range resources and rehabilitation on the projects involving 133.2cooperation with other municipalities.133.3(c) The amount that would have been computed for the current year under Minnesota 133.4Statutes 2008, section 
         126C.21, subdivision 4, for a school district shall be distributed to 133.5the cities and townships within the school district in the proportion that their taxable net 133.6tax capacity within the school district bears to the taxable net tax capacity of the school 133.7district for property taxes payable in the year prior to distribution.133.8    Sec. 9. Laws 2013, chapter 143, article 11, section 10, is amended to read:133.9    Sec. 10. 2013 DISTRIBUTION ONLY.133.10For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of 133.11any excess of the balance remaining after distribution of amounts required under Minnesota 133.12Statutes, section 
         298.28, subdivision 6. The following amounts are allocated to St. Louis 133.13County acting as the fiscal agent for the recipients for the following specific purposes:133.14(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water 133.15supply system;133.16(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities 133.17required as a result of actions undertaken by United States Steel Corporation;133.18(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water 133.19supply system, payable upon agreement with ArcelorMittal to satisfy water permit 133.20conditions system to further the established collaborative efforts between the city of 133.21Biwabik, the city of Aurora, and surrounding communities;133.22(4) 2 cents per ton to the city of Tower for the Tower Marina;133.23(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer 133.24system to replace aging effluent lines and for parking lot repaving;133.25(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant 133.26improvements;133.27(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;133.28(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson 133.29Intermodal Transportation Center;133.30(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine 133.31hockey arena renovations;133.32(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center 133.33to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and 133.34Greenway Township;133.35(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;134.1(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;134.2(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary 134.3sewer extension;134.4(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;134.5(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;134.6(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park 134.7infrastructure, and a maintenance garage;134.8(17) 0.5 cents per ton to the city of Cook for a water line project;134.9(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street 134.10reconstruction and the city auditorium;134.11(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and 134.12water line replacements;134.13(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North 134.14infrastructure and Franklin Park improvement; and134.15(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development 134.16project.134.17EFFECTIVE DATE.This section is effective for the 2014 distribution, and all 134.18payments must be made separately and within ten days of the date of the August 2014 134.19payment.134.20    Sec. 10. 2014 DISTRIBUTION ONLY.134.21For the 2014 distribution, a special fund is established to receive 18.37 cents per ton of 134.22any excess of the balance remaining after distribution of amounts required under Minnesota 134.23Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 134.24County acting as the fiscal agent for the recipients for the following specific purposes:134.25(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;134.26(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation 134.27at the Reif Center;134.28(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements 134.29to accommodate business expansion in the city;134.30(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;134.31(5) 0.39 cents per ton to Balkan Township for a salt storage building and 134.32energy-efficient cold storage building;134.33(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city 134.34of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to 134.35secure a potable water source for the city, provided that the city of McKinley secures 135.1the remainder of the project costs from other sources, and expires three years following 135.2the date of distribution;135.3(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for 135.4township block grants to be distributed by the board;135.5(8) 0.5 cents per ton to the city of Marble for a water main and looping project;135.6(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;135.7(10) 0.65 cents per ton to the city of Babbitt for demolition of a public building;135.8(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;135.9(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;135.10(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;135.11(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;135.12(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall; and135.13(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater 135.14treatment project.135.15EFFECTIVE DATE.This section is effective for the 2014 distribution, and all 135.16payments must be made separately and within ten days of the date of the August 2014 135.17payment.135.18    Sec. 11. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM; 135.19EVALUATION.135.20The commissioner of commerce may utilize a stakeholder group to annually monitor 135.21the usability and product development of systems for electronic data reporting and 135.22tracking for the use of utilities under the conservation improvement plan program under 135.23Minnesota Statutes, section 216B.241. The initial group may be convened by November 135.241, 2014, and must, among others, include representatives from all sectors of the gas and 135.25electric utility industry and providers of energy conservation.135.26    Sec. 12. REALLOCATION OF BOND PAYMENTS.135.27In each year subsequent to the year in which the following appropriations terminate 135.28under their terms, an amount equal to the amount of the last year of the school bond 135.29payments from the 2012 production year, payable in 2013, is appropriated from the same 135.30sources listed in this section to the Iron Range school consolidation and cooperatively 135.31operated school account under Minnesota Statutes, section 298.28, subdivision 7a:135.32(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for 135.33bonds of Independent School District No. 166, Cook County;136.1(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 136.2bonds of Independent School District No. 696, Ely;136.3(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 136.4bonds of Independent School District No. 706, Virginia:136.5(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 136.6bonds of Independent School District No. 2154, Eveleth-Gilbert;136.7(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for 136.8bonds of Independent School District No. 712, Mountain Iron-Buhl; and136.9(6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of 136.10Independent School District No. 2711, Mesabi East.136.11EFFECTIVE DATE.This section is effective beginning with the distribution 136.12in 2015.136.13ARTICLE 12136.14EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION136.15    Section 1. Minnesota Statutes 2012, section 13.43, subdivision 16, is amended to read:136.16    Subd. 16. School district or charter school disclosure of violence or inappropriate 136.17sexual contact. The superintendent of a school district or the superintendent's designee, 136.18or a person having administrative control of a charter school, must release to a requesting 136.19school district or charter school private personnel data on a current or former employee 136.20related to acts of violence toward or sexual contact with a student, if:136.21(1) an investigation conducted by or on behalf of the school district or law 136.22enforcement affirmed the allegations in writing prior to release and the investigation 136.23resulted in the resignation of the subject of the data; or136.24(2) the employee resigned while a complaint or charge involving the allegations was 136.25pending and the allegations involved acts of sexual contact with a student.136.26Data that are released under this subdivision must not include data on the student.136.27    Sec. 2. Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8, is 136.28amended to read:136.29    Subd. 8. Development, evaluation, and peer coaching for continuing contract 136.30teachers. (a) To improve student learning and success, a school board and an exclusive 136.31representative of the teachers in the district, consistent with paragraph (b), may develop 136.32a teacher evaluation and peer review process for probationary and continuing contract 136.33teachers through joint agreement. If a school board and the exclusive representative of the 137.1teachers do not agree to an annual teacher evaluation and peer review process, then the 137.2school board and the exclusive representative of the teachers must implement the state 137.3teacher evaluation plan for evaluation and review under paragraph (c). The process must 137.4include having trained observers serve as peer coaches or having teachers participate in 137.5professional learning communities, consistent with paragraph (b).137.6    (b) To develop, improve, and support qualified teachers and effective teaching 137.7practices and improve student learning and success, the annual evaluation process for 137.8teachers:137.9    (1) must, for probationary teachers, provide for all evaluations required under 137.10subdivision 5;137.11    (2) must establish a three-year professional review cycle for each teacher that 137.12includes an individual growth and development plan, a peer review process, the 137.13opportunity to participate in a professional learning community under paragraph (a), and 137.14at least one summative evaluation performed by a qualified and trained evaluator such as a 137.15school administrator. For the years when a tenured teacher is not evaluated by a qualified 137.16and trained evaluator, the teacher must be evaluated by a peer review;137.17    (3) must be based on professional teaching standards established in rule;137.18    (4) must coordinate staff development activities under sections 
         122A.60 and 137.19122A.61
          with this evaluation process and teachers' evaluation outcomes;137.20    (5) may provide time during the school day and school year for peer coaching and 137.21teacher collaboration;137.22    (6) may include job-embedded learning opportunities such as professional learning 137.23communities;137.24    (7) may include mentoring and induction programs;137.25    (7) (8) must include an option for teachers to develop and present a portfolio 137.26demonstrating evidence of reflection and professional growth, consistent with section 137.27122A.18, subdivision 4
         , paragraph (b), and include teachers' own performance assessment 137.28based on student work samples and examples of teachers' work, which may include video 137.29among other activities for the summative evaluation;137.30    (8) (9) must use data from valid and reliable assessments aligned to state and local 137.31academic standards and must use state and local measures of student growth that may 137.32include value-added models or student learning goals to determine 35 percent of teacher 137.33evaluation results;137.34    (9) (10) must use longitudinal data on student engagement and connection, and 137.35other student outcome measures explicitly aligned with the elements of curriculum for 137.36which teachers are responsible;138.1    (10) (11) must require qualified and trained evaluators such as school administrators 138.2to perform summative evaluations and ensure school districts and charter schools provide 138.3for effective evaluator training specific to teacher development and evaluation;138.4    (11) (12) must give teachers not meeting professional teaching standards under 138.5clauses (3) through (10) (11) support to improve through a teacher improvement process 138.6that includes established goals and timelines; and138.7    (12) (13) must discipline a teacher for not making adequate progress in the teacher 138.8improvement process under clause (11) (12) that may include a last chance warning, 138.9termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 138.10other discipline a school administrator determines is appropriate.138.11    Data on individual teachers generated under this subdivision are personnel data 138.12under section 
         13.43. The observation and interview notes of peer coaches may only be 138.13disclosed to other school officials with the consent of the teacher being coached.138.14    (c) The department, in consultation with parents who may represent parent 138.15organizations and teacher and administrator representatives appointed by their respective 138.16organizations, representing the Board of Teaching, the Minnesota Association of School 138.17Administrators, the Minnesota School Boards Association, the Minnesota Elementary 138.18and Secondary Principals Associations, Education Minnesota, and representatives of 138.19the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 138.20Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 138.21in teacher evaluation, must create and publish a teacher evaluation process that complies 138.22with the requirements in paragraph (b) and applies to all teachers under this section and 138.23section 
         122A.41 for whom no agreement exists under paragraph (a) for an annual teacher 138.24evaluation and peer review process. The teacher evaluation process created under this 138.25subdivision does not create additional due process rights for probationary teachers under 138.26subdivision 5.138.27EFFECTIVE DATE.This section is effective for the 2014-2015 school year.138.28    Sec. 3. Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is 138.29amended to read:138.30    Subd. 5. Development, evaluation, and peer coaching for continuing contract 138.31teachers. (a) To improve student learning and success, a school board and an exclusive 138.32representative of the teachers in the district, consistent with paragraph (b), may develop an 138.33annual teacher evaluation and peer review process for probationary and nonprobationary 138.34teachers through joint agreement. If a school board and the exclusive representative of the 138.35teachers in the district do not agree to an annual teacher evaluation and peer review process, 139.1then the school board and the exclusive representative of the teachers must implement 139.2the state teacher evaluation plan for evaluation and review developed under paragraph 139.3(c). The process must include having trained observers serve as peer coaches or having 139.4teachers participate in professional learning communities, consistent with paragraph (b).139.5    (b) To develop, improve, and support qualified teachers and effective teaching 139.6practices and improve student learning and success, the annual evaluation process for 139.7teachers:139.8    (1) must, for probationary teachers, provide for all evaluations required under 139.9subdivision 2;139.10    (2) must establish a three-year professional review cycle for each teacher that 139.11includes an individual growth and development plan, a peer review process, the 139.12opportunity to participate in a professional learning community under paragraph (a), and 139.13at least one summative evaluation performed by a qualified and trained evaluator such 139.14as a school administrator;139.15    (3) must be based on professional teaching standards established in rule;139.16    (4) must coordinate staff development activities under sections 
         122A.60 and 139.17122A.61
          with this evaluation process and teachers' evaluation outcomes;139.18    (5) may provide time during the school day and school year for peer coaching and 139.19teacher collaboration;139.20    (6) may include job-embedded learning opportunities such as professional learning 139.21communities;139.22    (7) may include mentoring and induction programs;139.23    (7) (8) must include an option for teachers to develop and present a portfolio 139.24demonstrating evidence of reflection and professional growth, consistent with section 139.25122A.18, subdivision 4
         , paragraph (b), and include teachers' own performance assessment 139.26based on student work samples and examples of teachers' work, which may include video 139.27among other activities for the summative evaluation;139.28    (8) (9) must use data from valid and reliable assessments aligned to state and local 139.29academic standards and must use state and local measures of student growth that may 139.30include value-added models or student learning goals to determine 35 percent of teacher 139.31evaluation results;139.32    (9) (10) must use longitudinal data on student engagement and connection and 139.33other student outcome measures explicitly aligned with the elements of curriculum for 139.34which teachers are responsible;140.1    (10) (11) must require qualified and trained evaluators such as school administrators 140.2to perform summative evaluations and ensure school districts and charter schools provide 140.3for effective evaluator training specific to teacher development and evaluation;140.4    (11) (12) must give teachers not meeting professional teaching standards under 140.5clauses (3) through (10) (11) support to improve through a teacher improvement process 140.6that includes established goals and timelines; and140.7    (12) (13) must discipline a teacher for not making adequate progress in the teacher 140.8improvement process under clause (11) (12) that may include a last chance warning, 140.9termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 140.10other discipline a school administrator determines is appropriate.140.11    Data on individual teachers generated under this subdivision are personnel data 140.12under section 
         13.43. The observation and interview notes of peer coaches may only be 140.13disclosed to other school officials with the consent of the teacher being coached.140.14    (c) The department, in consultation with parents who may represent parent 140.15organizations and teacher and administrator representatives appointed by their respective 140.16organizations, representing the Board of Teaching, the Minnesota Association of School 140.17Administrators, the Minnesota School Boards Association, the Minnesota Elementary 140.18and Secondary Principals Associations, Education Minnesota, and representatives of 140.19the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 140.20Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 140.21in teacher evaluation, must create and publish a teacher evaluation process that complies 140.22with the requirements in paragraph (b) and applies to all teachers under this section and 140.23section 
         122A.40 for whom no agreement exists under paragraph (a) for an annual teacher 140.24evaluation and peer review process. The teacher evaluation process created under this 140.25subdivision does not create additional due process rights for probationary teachers under 140.26subdivision 2.140.27EFFECTIVE DATE.This section is effective for the 2014-2015 school year.140.28    Sec. 4. Minnesota Statutes 2012, section 122A.414, subdivision 2, is amended to read:140.29    Subd. 2. Alternative teacher professional pay system. (a) To participate in this 140.30program, a school district, intermediate school district, school site, or charter school must 140.31have an educational improvement plan under section 
         122A.413 and an alternative teacher 140.32professional pay system agreement under paragraph (b). A charter school participant also 140.33must comply with subdivision 2a.140.34    (b) The alternative teacher professional pay system agreement must:141.1    (1) describe how teachers can achieve career advancement and additional 141.2compensation;141.3    (2) describe how the school district, intermediate school district, school site, or 141.4charter school will provide teachers with career advancement options that allow teachers 141.5to retain primary roles in student instruction and facilitate site-focused professional 141.6development that helps other teachers improve their skills;141.7    (3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 141.8paid before implementing the pay system from being reduced as a result of participating 141.9in this system, and base at least 60 percent of any compensation increase on teacher 141.10performance using:141.11    (i) schoolwide student achievement gains under section 
         120B.35 or locally selected 141.12standardized assessment outcomes, or both;141.13    (ii) measures of student achievement growth that may include value-added models 141.14or student learning goals, consistent with section 122A.40, subdivision 8, clause (9), or 141.15122A.41, subdivision 5, clause (9); and141.16    (iii) an objective evaluation program that includes: under section 122A.40, 141.17subdivision 8, paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2)141.18    (A) individual teacher evaluations aligned with the educational improvement plan 141.19under section 122A.413 and the staff development plan under section 122A.60; and141.20    (B) objective evaluations using multiple criteria conducted by a locally selected and 141.21periodically trained evaluation team that understands teaching and learning;141.22    (4) provide integrated ongoing site-based professional development activities for 141.23participation in job-embedded learning opportunities such as professional learning 141.24communities to improve instructional skills and learning that are aligned with student needs 141.25under section 
         122A.413, consistent with the staff development plan under section 
         122A.60141.26and led during the school day by trained teacher leaders such as master or mentor teachers;141.27    (5) allow any teacher in a participating school district, intermediate school district, 141.28school site, or charter school that implements an alternative pay system to participate in 141.29that system without any quota or other limit; and141.30    (6) encourage collaboration rather than competition among teachers.141.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 and 141.32later. Paragraph (b), clause (3), is effective for agreements under this section approved 141.33after August 1, 2015.141.34    Sec. 5. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:142.1    Subdivision 1. Revenue amount. (a) A school district, intermediate school district, 142.2school site, or charter school that meets the conditions of section 
         122A.414 and submits an 142.3application approved by the commissioner is eligible for alternative teacher compensation 142.4revenue.142.5(b) For school district and intermediate school district applications, the commissioner 142.6must consider only those applications to participate that are submitted jointly by a 142.7district and the exclusive representative of the teachers. The application must contain an 142.8alternative teacher professional pay system agreement that:142.9(1) implements an alternative teacher professional pay system consistent with 142.10section 
         122A.414; and142.11(2) is negotiated and adopted according to the Public Employment Labor Relations 142.12Act under chapter 179A, except that notwithstanding section 
         179A.20, subdivision 3, a 142.13district may enter into a contract for a term of two or four years.142.14Alternative teacher compensation revenue for a qualifying school district or site in 142.15which the school board and the exclusive representative of the teachers agree to place 142.16teachers in the district or at the site on the alternative teacher professional pay system 142.17equals $260 times the number of pupils enrolled at the district or site on October 1 of 142.18the previous fiscal year. Alternative teacher compensation revenue for a qualifying 142.19intermediate school district must be calculated under section 126C.10, subdivision 34142.20 subdivision 4, paragraphs (a) and (b).142.21(c) For a newly combined or consolidated district, the revenue shall be computed 142.22using the sum of pupils enrolled on October 1 of the previous year in the districts entering 142.23into the combination or consolidation. The commissioner may adjust the revenue computed 142.24for a site using prior year data to reflect changes attributable to school closings, school 142.25openings, or grade level reconfigurations between the prior year and the current year.142.26(d) The revenue is available only to school districts, intermediate school districts, 142.27school sites, and charter schools that fully implement an alternative teacher professional 142.28pay system by October 1 of the current school year.142.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 142.30and later.142.31    Sec. 6. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:142.32    Subd. 2. Reserve revenue. Each district that is a member of an area learning center 142.33or alternative learning program must reserve revenue in an amount equal to the sum 142.34of (1) at least between 90 and 100 percent of the district average general education 142.35revenue per adjusted pupil unit minus an amount equal to the product of the formula 143.1allowance according to section 
         126C.10, subdivision 2, times .0485 .0466, calculated 143.2without basic skills revenue, local optional revenue, and transportation sparsity revenue, 143.3times the number of pupil units attending an area learning center or alternative learning 143.4program under this section, plus (2) the amount of basic skills revenue generated by pupils 143.5attending the area learning center or alternative learning program. The amount of reserved 143.6revenue under this subdivision may only be spent on program costs associated with the 143.7area learning center or alternative learning program.143.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 143.9and later.143.10    Sec. 7. [123A.482] JOINT POWERS COOPERATIVE FACILITY.143.11    Subdivision 1.Schools may be jointly operated.Two or more school districts may 143.12agree to jointly operate a secondary facility. The districts may choose to operate the 143.13facility according to a joint powers agreement under section 123A.78 or 471.59.143.14    Subd. 2.Expanded program offerings.A jointly operated secondary program 143.15seeking funding under section 123A.485 must demonstrate to the commissioner's 143.16satisfaction that the jointly operated program provides enhanced learning opportunities and 143.17broader curriculum offerings to the students attending that program. The commissioner 143.18must approve or disapprove a cooperative secondary program within 60 days of receipt of 143.19an application.143.20    Subd. 2a.Transfer of employees.An employee transferred between members of a 143.21joint powers agreement under this section is not required to serve a statutory or contractual 143.22probationary period. The employee shall receive credit on the receiving district's salary 143.23schedule for the employee's educational attainment and years of continuous service in 143.24the sending district, or shall receive a comparable salary, whichever is greater. The 143.25employee shall receive credit for accrued sick leave and rights to severance benefits as if 143.26the employee had been employed by the receiving district during the employee's years of 143.27employment in the sending district.143.28    Subd. 3.Revenue.An approved program that is jointly operated under this section 143.29is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections 143.30123A.44 to 123A.446.143.31    Subd. 4.Duty to maintain elementary and secondary schools met.A school 143.32district operating a joint facility under this section meets the requirements of section 143.33123A.64.144.1    Subd. 5.Estimated market value limit exclusion.Bonds for a cooperative facility 144.2operated under this section issued by a member school district are not subject to the net 144.3debt limit under section 475.53, subdivision 4. 144.4    Subd. 6.Allocation of levy authority for joint facility.For purposes of determining 144.5each member district's school levy, a jointly operated secondary program may allocate 144.6program costs to each member district according to the joint powers agreement and each 144.7member district may include those costs in its tax levy. The joint powers agreement may 144.8choose to allocate costs on any basis adopted as part of the joint powers agreement.144.9    Subd. 7.Effect of consolidation.The joint powers agreement may allow member 144.10school districts that choose to consolidate to continue to certify levies separately based on 144.11each component district's characteristics.144.12    Subd. 8.Bonds.A joint powers district formed under this section may issue bonds 144.13according to section 123A.78 or its member districts may issue bonds individually after 144.14complying with this subdivision. The joint powers board must submit the project for 144.15review and comment under section 123B.71. The joint powers board must hold a hearing 144.16on the proposal. If the bonds are not issued under section 123A.78, each member district 144.17of the joint powers district must submit the question of authorizing borrowing of funds for 144.18the project to the voters of the district at a special election. The question submitted shall 144.19state the total amount of funding needed from that district. The member district may issue 144.20the bonds according to chapter 475 and certify the levy required by section 475.61 only if 144.21a majority of those voting on the question in that district vote in the affirmative and only 144.22after the board has adopted a resolution pledging the full faith and credit of that unit. The 144.23resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy 144.24shortages that, together with other funds available, would allow the member school board 144.25to pay the principal and interest on the obligations. The clerk of the joint powers board 144.26must certify the vote of any bond elections to the commissioner. Bonds issued under this 144.27section first qualify for debt service equalization aid in fiscal year 2018.144.28    Subd. 9.Election.A district entering into a joint powers agreement under this 144.29section may conduct a referendum seeking approval for a new facility. This election may 144.30be held separately or at the same time as a bond election under subdivision 8. If the 144.31election is held at the same time, the questions may be asked separately or as a conjunctive 144.32question. The question must be approved by a majority of those voting on the question. 144.33If asked separately and the question fails, a district may not proceed with the sale of 144.34bonds according to subdivision 8.144.35EFFECTIVE DATE.This section is effective the day following final enactment.145.1    Sec. 8. Minnesota Statutes 2012, section 123A.485, is amended to read:145.2123A.485 CONSOLIDATION TRANSITION REVENUE AID.145.3    Subdivision 1. Eligibility and use. A district that operates a cooperative facility 145.4under section 123A.482 or that has been reorganized after June 30, 1994, under section 145.5123A.48
          is eligible for consolidation transition revenue. Revenue is equal to the sum of145.6 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue145.7 aid may only be used according to this section. Revenue must be used for the following 145.8purposes and may be distributed among these purposes at the discretion of the district or 145.9the governing board of the cooperative facility:145.10(1) to offer early retirement incentives as provided by section 
         123A.48, subdivision 145.1123
         ;145.12(2) to reduce operating debt as defined in section 
         123B.82;145.13(3) to enhance learning opportunities for students in the reorganized district; and145.14(4) to repay building debt; or145.15(5) for other costs incurred in the reorganization.145.16Revenue received and utilized under clause (3) or (4) (5) may be expended for 145.17operating, facilities, and/or equipment.145.18    Subd. 2. Aid.(a) Consolidation transition aid is equal to $200 $300 times the 145.19number of resident adjusted pupil units in the newly created cooperative facility under 145.20section 123A.482 or the consolidated district in the year of consolidation and $100 times 145.21the number of resident pupil units in the first year following the year of consolidation145.22 under section 123A.48. The number of pupil units used to calculate aidin either year 145.23shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts 145.24consolidating July 1, 1995, and thereafter A district may receive aid under this section for 145.25not more than five years except as provided in subdivision 4.145.26(b) If the total appropriation for consolidation transition aid for any fiscal year, plus 145.27any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all 145.28districts the full amount of aid earned, the department must first pay the districts in the first 145.29year following the year of consolidation the full amount of aid earned and distribute any 145.30remaining funds to the newly created districts in the first year of consolidation.145.31    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs 145.32of the district under section 
         123A.48, subdivision 23, the district may levy the difference 145.33over a period of time not to exceed three years.145.34    Subd. 4. New districts. If a district enters into a cooperative secondary facilities 145.35program or consolidates with another district that has received aid under section 
         123A.39, 145.36subdivision 3
         , or 
         123A.485 for a combination or consolidation taking effect within 146.1six years of the effective date of the new consolidation or the start of the cooperative 146.2secondary facilities program, only the pupil units in the district or districts not previously146.3 cooperating or reorganized must be counted for aid purposes under subdivision 2. If 146.4two or more districts consolidate and all districts received aid under subdivision 2 for a 146.5consolidation taking effect within six years of the effective date of the new consolidation, 146.6only one quarter of the pupil units in the newly created district must be used to determine 146.7aid under subdivision 2.146.8EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017 146.9and later.146.10    Sec. 9. Minnesota Statutes 2012, section 123A.64, is amended to read:146.11123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY 146.12SCHOOLS.146.13Each district must maintain classified elementary and secondary schools, grades 1 146.14through 12, unless the district is exempt according to section 
         123A.61 or 
         123A.62, has 146.15made an agreement with another district or districts as provided in sections 
         123A.30, 146.16123A.32
         , or sections 
         123A.35 to 
         123A.43, or 
         123A.17, subdivision 7, or has received a 146.17grant under sections 
         123A.441 to 
         123A.446, or has formed a cooperative under section 146.18123A.482. A district that has an agreement according to sections 
         123A.35 to 
         123A.43 or 146.19123A.32
          must operate a school with the number of grades required by those sections. A 146.20district that has an agreement according to section 
         123A.30 or 
         123A.17, subdivision 7, or 146.21has received a grant under sections 
         123A.441 to 
         123A.446 must operate a school for the 146.22grades not included in the agreement, but not fewer than three grades.146.23    Sec. 10. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is 146.24amended to read:146.25    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service 146.26revenue of a district is defined as follows:146.27    (1) the amount needed to produce between five and six percent in excess of the 146.28amount needed to meet when due the principal and interest payments on the obligations 146.29of the district for eligible projects according to subdivision 2, including the amounts 146.30necessary for repayment of energy loans according to section 
         216C.37 or sections 
         298.292146.31to 
         298.298, debt service loans and capital loans, lease purchase payments under section 146.32126C.40, subdivision 2
         , alternative facilities levies under section 
         123B.59, subdivision 146.335
         , paragraph (a), minus147.1    (2) the amount of debt service excess levy reduction for that school year calculated 147.2according to the procedure established by the commissioner.147.3    (b) The obligations in this paragraph are excluded from eligible debt service revenue:147.4    (1) obligations under section 
         123B.61;147.5    (2) the part of debt service principal and interest paid from the taconite environmental 147.6protection fund or Douglas J. Johnson economic protection trust, excluding both the 147.7portion of taconite payments from the Iron Range school consolidation and cooperatively 147.8operated school account under section 298.28, subdivision 7a, and any payments made 147.9from the Douglas J. Johnson economic protection trust fund under section 298.292, 147.10subdivision 2, clause (6);147.11    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 147.12amended by Laws 1992, chapter 499, article 5, section 24; and147.13    (4) obligations under section 
         123B.62.; and147.14    (5) obligations under section 123B.535.147.15    (c) For purposes of this section, if a preexisting school district reorganized under 147.16sections 
         123A.35 to 
         123A.43, 
         123A.46, and 
         123A.48 is solely responsible for retirement 147.17of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 147.18service equalization aid must be computed separately for each of the preexisting districts.147.19    (d) For purposes of this section, the adjusted net tax capacity determined according 147.20to sections 
         127A.48 and 
         273.1325 shall be adjusted to include the tax capacity of property 147.21generally exempted from ad valorem taxes under section 
         272.02, subdivision 64.147.22    Sec. 11. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.147.23    Subdivision 1.Definitions.(a) For purposes of this section, the eligible natural 147.24disaster debt service revenue of a district is defined as the amount needed to produce 147.25between five and six percent in excess of the amount needed to meet when due the 147.26principal and interest payments on the obligations of the district that would otherwise 147.27qualify under section 123B.53 under the following conditions:147.28    (1) the district was impacted by a natural disaster event or area occurring January 147.291, 2005, or later, as declared by the President of the United States of America, which is 147.30eligible for Federal Emergency Management Agency payments;147.31    (2) the natural disaster caused $500,000 or more in damages to school district 147.32buildings; and147.33    (3) the repair and replacement costs are not covered by insurance payments or 147.34Federal Emergency Management Agency payments.148.1    (b) For purposes of this section, the adjusted net tax capacity equalizing factor 148.2equals the quotient derived by dividing the total adjusted net tax capacity of all school 148.3districts in the state for the year before the year the levy is certified by the total number of 148.4adjusted pupil units in the state for the current school year.148.5    (c) For purposes of this section, the adjusted net tax capacity determined according 148.6to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 148.7generally exempted from ad valorem taxes under section 272.02, subdivision 64.148.8    Subd. 2.Notification.A district eligible for natural disaster debt service 148.9equalization revenue under subdivision 1 must notify the commissioner of the amount of 148.10its intended natural disaster debt service revenue calculated under subdivision 1 for all 148.11bonds sold prior to the notification by July 1 of the calendar year the levy is certified.148.12    Subd. 3.Natural disaster debt service equalization revenue.The debt service 148.13equalization revenue of a district equals the greater of zero or the eligible debt service 148.14revenue, minus the greater of zero or the difference between:148.15    (1) the amount raised by a levy of ten percent times the adjusted net tax capacity 148.16of the district; and148.17    (2) the district's eligible debt service revenue under section 123B.53.148.18    Subd. 4.Equalized natural disaster debt service levy.A district's equalized 148.19natural disaster debt service levy equals the district's natural disaster debt service 148.20equalization revenue times the lesser of one or the ratio of:148.21    (1) the quotient derived by dividing the adjusted net tax capacity of the district for 148.22the year before the year the levy is certified by the adjusted pupil units in the district for 148.23the school year ending in the year prior to the year the levy is certified; to148.24    (2) 300 percent of the statewide adjusted net tax capacity equalizing factor.148.25    Subd. 5.Natural disaster debt service equalization aid.A district's natural 148.26disaster debt service equalization aid equals the difference between the district's natural 148.27disaster debt service equalization revenue and the district's equalized natural disaster 148.28debt service levy.148.29    Subd. 6.Natural disaster debt service equalization aid payment schedule.Debt 148.30service equalization aid must be paid according to section 127A.45, subdivision 10.148.31EFFECTIVE DATE.This section is effective for levies certified for taxable year 148.322015 and revenue for fiscal year 2016 and later.148.33    Sec. 12. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:148.34123B.54 DEBT SERVICE APPROPRIATION.149.1    (a) The amount necessary to make debt service equalization aid payments under 149.2section sections123B.53and 123B.535 is annually appropriated from the general fund to 149.3the commissioner of education.149.4    (b) The appropriations in paragraph (a) must be reduced by the amount of any 149.5money specifically appropriated for the same purpose in any year from any state fund.149.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 149.7and later.149.8    Sec. 13. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:149.9    Subd. 8. Review and comment. A school district, a special education cooperative, 149.10or a cooperative unit of government, as defined in section 
         123A.24, subdivision 2, must not 149.11initiate an installment contract for purchase or a lease agreement, hold a referendum for 149.12bonds, nor solicit bids for new construction, expansion, or remodeling of an educational 149.13facility that requires an expenditure in excess of $500,000 per school site if it has a capital 149.14loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital 149.15loan outstanding, prior to review and comment by the commissioner. The commissioner 149.16may exempt A facility addition, maintenance project, or remodeling project funded only 149.17with general education aid and levy revenue, deferred maintenance revenue, alternative 149.18facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond 149.19proceeds, or health and safety revenue is exempt from this provision after reviewing a 149.20written request from a school district describing the scope of work. A capital project under 149.21section 123B.63 addressing only technology is exempt from this provision if the district 149.22submits a school board resolution stating that funds approved by the voters will be used 149.23only as authorized in section 126C.10, subdivision 14. A school board shall not separate 149.24portions of a single project into components to avoid the requirements of this subdivision.149.25    Sec. 14. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:149.26    Subd. 9. Information required. A school board proposing to construct, expand, 149.27or remodel a facility described in that requires a review and comment under subdivision 149.288 shall submit to the commissioner a proposal containing information including at least 149.29the following:149.30(1) the geographic area and population to be served, preschool through grade 12 149.31student enrollments for the past five years, and student enrollment projections for the 149.32next five years;150.1(2) a list of existing facilities by year constructed, their uses, and an assessment of 150.2the extent to which alternate facilities are available within the school district boundaries 150.3and in adjacent school districts;150.4(3) a list of the specific deficiencies of the facility that demonstrate the need for a 150.5new or renovated facility to be provided, the process used to determine the deficiencies, a 150.6list of those deficiencies that will and will not be addressed by the proposed project, and a 150.7list of the specific benefits that the new or renovated facility will provide to the students, 150.8teachers, and community users served by the facility;150.9(4) the relationship of the project to any priorities established by the school district, 150.10educational cooperatives that provide support services, or other public bodies in the 150.11service area;150.12(5) a description of the pedestrian, bicycle, and transit connections between the 150.13school and nearby residential areas that make it easier for children, teachers, and parents 150.14to get to the school by walking, bicycling, and taking transit;150.15(6) a specification of how the project maximizes the opportunity for cooperative use 150.16of existing park, recreation, and other public facilities and whether and how the project 150.17will increase collaboration with other governmental or nonprofit entities;150.18(7) (4) a description of the project, including the specification of site and outdoor 150.19space acreage and square footage allocations for classrooms, laboratories, and support 150.20spaces; estimated expenditures for the major portions of the project; and the dates the 150.21project will begin and be completed;150.22(8) (5) a specification of the source of financing the project, including applicable 150.23statutory citations; the scheduled date for a bond issue or school board action; a schedule 150.24of payments, including debt service equalization aid; and the effect of a bond issue on 150.25local property taxes by the property class and valuation;150.26(9) an analysis of how the proposed new or remodeled facility will affect school 150.27district operational or administrative staffing costs, and how the district's operating budget 150.28will cover any increased operational or administrative staffing costs;150.29(10) a description of the consultation with local or state transportation officials 150.30on multimodal school site access and safety issues, and the ways that the project will 150.31address those issues;150.32(11) a description of how indoor air quality issues have been considered and a 150.33certification that the architects and engineers designing the facility will have professional 150.34liability insurance;150.35(12) as required under section 123B.72, for buildings coming into service after July 1, 150.362002, a certification that the plans and designs for the extensively renovated or new facility's 151.1heating, ventilation, and air conditioning systems will meet or exceed code standards; will 151.2provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and 151.3will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;151.4(13) a specification of any desegregation requirements that cannot be met by any 151.5other reasonable means;151.6(14) a specification of how the facility will utilize environmentally sustainable 151.7school facility design concepts;151.8(15) a description of how the architects and engineers have considered the American 151.9National Standards Institute Acoustical Performance Criteria, Design Requirements 151.10and Guidelines for Schools of the maximum background noise level and reverberation 151.11times; and151.12    (16) any existing information from the relevant local unit of government about the 151.13cumulative costs to provide infrastructure to serve the school, such as utilities, sewer, 151.14roads, and sidewalks.151.15    (6) confirmations of the district and contracted professionals that the project is 151.16planned and will be executed to consider and comply with the following:151.17    (i) uniform municipal contracting law under section 471.345;151.18    (ii) sustainable design;151.19    (iii) school facility commissioning under section 123B.72 requiring certification that 151.20plans and designs for an extensively renovated or new facility's heating, ventilation, and 151.21air conditioning systems will meet or exceed current code standards; and will provide an 151.22air quality filtration system that meets ASHRAE standard 52.1;151.23    (iv) American National Standards Institute Acoustical Performance Criteria, Design 151.24Requirements and Guidelines for Schools of the maximum background noise level and 151.25reverberation times;151.26    (v) State Fire Code;151.27    (vi) applicable building code under chapter 326B;151.28    (vii) consultation with appropriate governmental units regarding utilities, roads, 151.29sewers, sidewalks, retention ponds, school bus and automobile traffic, and safe access 151.30for walkers and bicyclists.151.31    Sec. 15. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is 151.32amended to read:151.33    Subd. 5. Levy recognition.  For fiscal year 2011 2014 and later years, in June of 151.34each year, the school district must recognize as revenue, in the fund for which the levy 151.35was made, the lesser of:152.1(1) the sum of May, June, and July school district tax settlement revenue received in 152.2that calendar year, plus general education aid according to section 
         126C.13, subdivision 152.34
         , received in July and August of that calendar year; or152.4(2) the sum of:152.5(i) the greater of 48.6 percent of the referendum levy certified according to section 152.6126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 152.7according to section 
         126C.17 in calendar year 2000; plus152.8(ii) the entire amount of the levy certified in the prior calendar year according 152.9to section 
         124D.4531, 124D.86, subdivision 4, for school districts receiving revenue 152.10under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 
         124D.862, for Special 152.11School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and 152.12Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a), 152.13and 3, paragraphs (b), (c), and (d); 
         126C.43, subdivision 2; and 
         126C.48, subdivision 6; plus152.14(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 152.15school district's general and community service funds, plus or minus auditor's adjustments, 152.16that remains after subtracting the referendum levy certified according to section 126C.17 152.17and the amount recognized according to item (ii).152.18    Sec. 16. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:152.19    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its 152.20postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 152.21A postsecondary institution may provide information about its programs to a secondary 152.22school or to a pupil or parent and it may advertise or otherwise recruit or solicit a 152.23secondary pupil to enroll in its programs on educational and programmatic grounds only. 152.24An institution must not enroll secondary pupils, for postsecondary enrollment options 152.25purposes, in remedial, developmental, or other courses that are not college level, except 152.26when a student eligible to participate in the graduation incentives program under section 152.27124D.68 enrolls full-time in a middle or early college program specifically designed to 152.28allow the student to earn dual high school and college credit. In this case, the student shall 152.29receive developmental college credit and not college credit for completing remedial or 152.30developmental courses. Once a pupil has been enrolled in a postsecondary course under 152.31this section, the pupil shall not be displaced by another student.152.32EFFECTIVE DATE.This section is effective July 1, 2014.152.33    Sec. 17. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:153.1    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this 153.2section, the department must make payments according to this subdivision for courses that 153.3were taken for secondary credit.153.4The department must not make payments to a school district or postsecondary 153.5institution for a course taken for postsecondary credit only. The department must not 153.6make payments to a postsecondary institution for a course from which a student officially 153.7withdraws during the first 14 days of the quarter or semester or who has been absent from 153.8the postsecondary institution for the first 15 consecutive school days of the quarter or 153.9semester and is not receiving instruction in the home or hospital.153.10A postsecondary institution shall receive the following:153.11(1) for an institution granting quarter credit, the reimbursement per credit hour shall 153.12be an amount equal to 88 percent of the product of the formula allowance minus $415153.13 $425, multiplied by 1.3 1.2, and divided by 45; or153.14(2) for an institution granting semester credit, the reimbursement per credit hour 153.15shall be an amount equal to 88 percent of the product of the general revenue formula 153.16allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.153.17The department must pay to each postsecondary institution 100 percent of the 153.18amount in clause (1) or (2) within 30 days of receiving initial enrollment information 153.19each quarter or semester. If changes in enrollment occur during a quarter or semester, 153.20the change shall be reported by the postsecondary institution at the time the enrollment 153.21information for the succeeding quarter or semester is submitted. At any time the 153.22department notifies a postsecondary institution that an overpayment has been made, the 153.23institution shall promptly remit the amount due.153.24    Sec. 18. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is 153.25amended to read:153.26    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all 153.27federal, state, and local health and safety requirements applicable to school districts.153.28    (b) A school must comply with statewide accountability requirements governing 153.29standards and assessments in chapter 120B.153.30    (c) A school authorized by a school board may be located in any district, unless the 153.31school board of the district of the proposed location disapproves by written resolution.153.32    (d) A charter school must be nonsectarian in its programs, admission policies, 153.33employment practices, and all other operations. An authorizer may not authorize a charter 153.34school or program that is affiliated with a nonpublic sectarian school or a religious 154.1institution. A charter school student must be released for religious instruction, consistent 154.2with section 
         120A.22, subdivision 12, clause (3).154.3    (e) Charter schools must not be used as a method of providing education or 154.4generating revenue for students who are being home-schooled. This paragraph does not 154.5apply to shared time aid under section 
         126C.19.154.6    (f) The primary focus of a charter school must be to provide a comprehensive 154.7program of instruction for at least one grade or age group from five through 18 years 154.8of age. Instruction may be provided to people younger than five years and older than 154.918 years of age.154.10    (g) A charter school may not charge tuition.154.11    (h) A charter school is subject to and must comply with chapter 363A and section 154.12121A.04
         .154.13    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal 154.14Act, sections 
         121A.40 to 
         121A.56, and the Minnesota Public School Fee Law, sections 154.15123B.34
          to 
         123B.39.154.16    (j) A charter school is subject to the same financial audits, audit procedures, and 154.17audit requirements as a district, except as required under subdivision 6a. Audits must be 154.18conducted in compliance with generally accepted governmental auditing standards, the 154.19federal Single Audit Act, if applicable, and section 
         6.65. A charter school is subject 154.20to and must comply with sections 
         15.054; 
         118A.01; 
         118A.02; 
         118A.03; 
         118A.04; 154.21118A.05
         ; 
         118A.06; 
         471.38; 
         471.391; 
         471.392; and 
         471.425. The audit must comply with 154.22the requirements of sections 
         123B.75 to 
         123B.83, except to the extent deviations are 154.23necessary because of the program at the school. Deviations must be approved by the 154.24commissioner and authorizer. The Department of Education, state auditor, legislative 154.25auditor, or authorizer may conduct financial, program, or compliance audits. A charter 154.26school determined to be in statutory operating debt under sections 
         123B.81 to 
         123B.83 154.27must submit a plan under section 
         123B.81, subdivision 4.154.28    (k) A charter school is a district for the purposes of tort liability under chapter 466.154.29    (l) A charter school must comply with chapters 13 and 13D; and sections 
         120A.22, 154.30subdivision 7
         ; 
         121A.75; and 
         260B.171, subdivisions 3 and 5.154.31    (m) A charter school is subject to the Pledge of Allegiance requirement under 154.32section 
         121A.11, subdivision 3.154.33    (n) A charter school offering online courses or programs must comply with section 154.34124D.095
         .154.35    (o) A charter school and charter school board of directors are subject to chapter 181.155.1    (p) A charter school must comply with section 
         120A.22, subdivision 7, governing 155.2the transfer of students' educational records and sections 
         138.163 and 
         138.17 governing 155.3the management of local records.155.4    (q) A charter school that provides early childhood health and developmental 155.5screening must comply with sections 
         121A.16 to 
         121A.19.155.6    (r) A charter school that provides school-sponsored youth athletic activities must 155.7comply with section 121A.38.155.8    (s) A charter school is subject to and must comply with continuing truant notification 155.9under section 
         260A.03.155.10    (t) A charter school must develop and implement a teacher evaluation and peer review 155.11process under section 
         122A.40, subdivision 8, paragraph (b), clauses (2) to (12) (13) .155.12    (u) A charter school must adopt a policy, plan, budget, and process, consistent with 155.13section 
         120B.11, to review curriculum, instruction, and student achievement and strive 155.14for the world's best workforce.155.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 155.16and later.155.17    Sec. 19. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is 155.18amended to read:155.19    Subdivision 1. General education revenue.  General education revenue must be 155.20paid to a charter school as though it were a district. The general education revenue 155.21for each adjusted pupil unit is the state average general education revenue per pupil 155.22unit, plus the referendum equalization aid allowance in the pupil's district of residence, 155.23minus an amount equal to the product of the formula allowance according to section 155.24126C.10, subdivision 2
         , times .0466, calculated without declining enrollment revenue, 155.25local optional revenue, basic skills revenue, extended time revenue, pension adjustment 155.26revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment 155.27revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and 155.28transition revenue as though the school were a school district. The general education 155.29revenue for each extended time pupil unit equals $4,794.155.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 155.31and later.155.32    Sec. 20. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1, 155.33is amended to read:156.1    Subdivision 1. School lunch aid computation. Each school year, the state must 156.2pay participants in the national school lunch program the amount of 12.5 cents for each 156.3full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price 156.4student lunch served to students.156.5EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.156.6    Sec. 21. Minnesota Statutes 2012, section 124D.111, is amended by adding a 156.7subdivision to read:156.8    Subd. 4.No fees.A participant that receives school lunch aid under this section 156.9must make lunch available without charge to all participating students who qualify for 156.10free or reduced-price meals. The participant must also ensure that any reminders for 156.11payment of outstanding student meal balances do not demean or stigmatize any child 156.12participating in the school lunch program.156.13EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.156.14    Sec. 22. Minnesota Statutes 2012, section 124D.111, is amended by adding a 156.15subdivision to read:156.16    Subd. 5.Inability to pay.A participant that receives school lunch aid under this 156.17section is encouraged to provide a student who is unable to pay with the same lunch 156.18that is served to other students.156.19    Sec. 23. Minnesota Statutes 2012, section 124D.1158, subdivision 3, is amended to read:156.20    Subd. 3. Program reimbursement. Each school year, the state must reimburse 156.21each participating school 30 cents for each reduced-price breakfast and, 55 cents for each 156.22fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid 156.23breakfast served to a kindergarten student.156.24    Sec. 24. Minnesota Statutes 2012, section 124D.1158, subdivision 4, is amended to read:156.25    Subd. 4. No fees. A school that receives school breakfast aid under this section must 156.26make breakfast available without charge to all participating students in grades 1 to 12 who 156.27qualify for free or reduced price meals and to all kindergarten students.156.28    Sec. 25. Minnesota Statutes 2012, section 124D.13, subdivision 2, is amended to read:156.29    Subd. 2. Program requirements. (a) Early childhood family education programs 156.30are programs for children in the period of life from birth to kindergarten, for the parents 157.1and other relatives of these children, and for expectant parents. To the extent that funds 157.2are insufficient to provide programs for all children, early childhood family education 157.3programs should emphasize programming for a child from birth to age three and 157.4encourage parents and other relatives to involve four- and five-year-old children in school 157.5readiness programs, and other public and nonpublic early learning programs. A district 157.6may not limit participation to school district residents. Early childhood family education 157.7programs must provide:157.8    (1) programs to educate parents and other relatives about the physical, mental157.9 cognitive, social, and emotional development of children and to enhance the skills of 157.10parents and other relatives in providing for their children's learning and development;157.11    (2) structured learning activities requiring interaction between children and their 157.12parents or relatives;157.13    (3) structured learning activities for children that promote children's development 157.14and positive interaction with peers, which are held while parents or relatives attend parent 157.15education classes;157.16    (4) information on related community resources;157.17    (5) information, materials, and activities that support the safety of children, including 157.18prevention of child abuse and neglect; and157.19    (6) a community outreach plan to ensure participation by families who reflect 157.20the racial, cultural, and economic diversity of the school district needs assessment that 157.21identifies new and underserved populations, identifies child and family risk factors, 157.22particularly those that impact children's learning and development, and assesses family 157.23and parenting education needs in the community;157.24    (7) programming and services that are tailored to the needs of families and parents 157.25prioritized in the community needs assessment; and157.26    (8) provide information about and, if needed, assist in making arrangements for an 157.27early childhood health and developmental screening under sections 121A.16 and 121A.17, 157.28when the child nears their third birthday.157.29Early childhood family education programs should prioritize programming and 157.30services for families and parents identified in the community needs assessment, particularly 157.31those families and parents with children with the most risk factors birth to age three.157.32    The programs must include learning experiences for children, parents, and other 157.33relatives that promote children's early literacy skills. The program must not include 157.34activities for children that do not require substantial involvement of the children's parents 157.35or other relatives. The program may provide parenting education programming or services 157.36to anyone identified in the community needs assessment. The program must be reviewed 158.1periodically to assure the instruction and materials are not racially, culturally, or sexually 158.2biased. The programs must encourage parents to be aware of practices that may affect 158.3equitable development of children.158.4    (b) For the purposes of this section, "relative" or "relatives" means noncustodial 158.5grandparents or other persons related to a child by blood, marriage, adoption, or foster 158.6placement, excluding parents.158.7    Sec. 26. Minnesota Statutes 2012, section 124D.13, subdivision 4, is amended to read:158.8    Subd. 4. Home visiting program. A district that levies for home visiting under 158.9section 
         124D.135, subdivision 6, shall use this revenue to include as part of the early 158.10childhood family education programs a parent education component that is designed to 158.11reach isolated or at-risk families.158.12The home visiting program must use:158.13(1) an established risk assessment tool to determine the family's level of risk158.14 incorporate evidence-informed parenting education practices designed to support the 158.15healthy growth and development of children, with a priority focus on those children 158.16who have high needs;158.17(2) establish clear objectives and protocols for home visits;158.18(3) encourage families to make a transition from home visits to site-based parenting 158.19programs;158.20(4) provide program services that are community-based, accessible, and culturally 158.21relevant; and158.22(5) foster collaboration among existing agencies and community-based organizations 158.23that serve young children and their families, such as public health evidence-based models 158.24of home visiting and Head Start home visiting; and158.25(6) provide information about and assist in making arrangements for an early 158.26childhood health and developmental screening when the child nears his or her third 158.27birthday.158.28Home visitors The home visiting program  should  be provided by licensed parenting 158.29educators, certified family life educators, or professionals with an equivalent license that 158.30reflect the demographic composition of the community to the extent possible.158.31    Sec. 27. Minnesota Statutes 2012, section 124D.13, subdivision 9, is amended to read:158.32    Subd. 9. District advisory councils. The board must appoint an advisory council 158.33from the area in which the program is provided. A majority of the council must be 158.34parents participating in the program, who represent the demographics of the community. 159.1The district must ensure, to the extent possible, that the council includes representation 159.2of families who are racially, culturally, linguistically, and economically diverse. The 159.3council must assist the board in developing, planning, and monitoring the early childhood 159.4family education program. The council must report to the board and the community 159.5education advisory council.159.6    Sec. 28. Minnesota Statutes 2012, section 124D.13, subdivision 13, is amended to read:159.7    Subd. 13.  Program data submission requirements.  Districts receiving early 159.8childhood family education revenue under section 
         124D.135 must submit annual program 159.9data, including data that demonstrates the program response to the community needs 159.10assessment,  to the department by July 15 in the form and manner prescribed by the 159.11commissioner.159.12    Sec. 29. Minnesota Statutes 2012, section 124D.13, is amended by adding a 159.13subdivision to read:159.14    Subd. 14.Supervision.A program provided by a board must be supervised by a 159.15licensed early childhood teacher or a licensed parent educator.159.16    Sec. 30. Minnesota Statutes 2012, section 124D.13, is amended by adding a 159.17subdivision to read:159.18    Subd. 15.Parenting education transition program.To the extent that funds are 159.19sufficient, early childhood family education may provide parenting education transition 159.20programming for parents of children birth to grade three in districts in which there is a 159.21prekindergarten-grade three initiative in order to facilitate continued parent engagement 159.22in children's learning and development. Early childhood family education programs are 159.23encouraged to develop partnerships to provide a parenting education liaison to providers 159.24of other public and nonpublic early learning programs, such as Head Start, school 159.25readiness, child care, early childhood special education, local public health programs, 159.26and health care providers.159.27    Sec. 31. Minnesota Statutes 2012, section 124D.135, subdivision 1, is amended to read:159.28    Subdivision 1. Revenue. The revenue for early childhood family education 159.29programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year 159.302008$120 for fiscal year 2014 and the formula allowance for the year times 0.0253 for 159.31fiscal year 2015 and later, times the greater of:159.32    (1) 150; or160.1    (2) the number of people under five years of age residing in the district on October 1 160.2of the previous school year.160.3    Sec. 32. Minnesota Statutes 2012, section 124D.135, subdivision 3, is amended to read:160.4    Subd. 3. Early childhood family education levy.(a) By September 30 of each year, 160.5the commissioner shall establish a tax rate for early childhood family education revenue 160.6that raises $22,135,000 in each fiscal year. If the amount of the early childhood family 160.7education levy would exceed the early childhood family education revenue, the early 160.8childhood family education levy must equal the early childhood family education revenue. 160.9A district may not certify an early childhood family education levy unless it has met the 160.10annual program data reporting requirements under section 
         124D.13, subdivision 13.160.11    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall 160.12establish a tax rate for early education revenue that raises $13,565,000.160.13    Sec. 33. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3, 160.14is amended to read:160.15    Subd. 3. Administration. (a) The commissioner shall establish application 160.16timelines and determine the schedule for awarding scholarships that meets operational 160.17needs of eligible families and programs. The commissioner may prioritize applications on 160.18factors including family income, geographic location, and whether the child's family is on a 160.19waiting list for a publicly funded program providing early education or child care services.160.20(b) Scholarships may be awarded up to $5,000 for each eligible child. The 160.21commissioner shall establish a target for the average scholarship amount per child 160.22based on the results of the rate survey conducted under section 119B.13, subdivision 1, 160.23paragraph (b), per year.160.24(c) A four-star rated program that has children eligible for a scholarship enrolled 160.25in or on a waiting list for a program beginning in July, August, or September may notify 160.26the commissioner, in the form and manner prescribed by the commissioner, each year 160.27of the program's desire to enhance program services or to serve more children than 160.28current funding provides. The commissioner may designate a predetermined number of 160.29scholarship slots for that program and notify the program of that number. A school district 160.30or Head Start program qualifying under this paragraph may use its established registration 160.31process to enroll scholarship recipients and may verify a scholarship recipient's family 160.32income in the same manner as for other program participants.160.33(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has 160.34not been accepted and subsequently enrolled in a rated program within ten months of the 161.1awarding of the scholarship, the scholarship cancels and the recipient must reapply in 161.2order to be eligible for another scholarship. A child may not be awarded more than one 161.3scholarship in a 12-month period.161.4(e) A child who receives a scholarship who has not completed development 161.5screening under sections 
         121A.16 to 
         121A.19 must complete that screening within 90 161.6days of first attending an eligible program.161.7(f) A school district or Head Start program enrolling scholarship recipients under 161.8paragraph (c) may apply to the commissioner, in the form and manner prescribed by 161.9the commissioner, for direct payment of state aid. Upon receipt of the application, the 161.10commissioner must pay each program directly for each approved scholarship recipient 161.11enrolled under paragraph (c) according to the metered payment system or another schedule 161.12established by the commissioner.161.13EFFECTIVE DATE.This section is effective July 1, 2016.161.14    Sec. 34. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 4, 161.15is amended to read:161.16    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept 161.17an early childhood education scholarship, a program must:161.18(1) participate in the quality rating and improvement system under section 161.19124D.142
         ; and161.20(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating 161.21and improvement system.161.22(b) Any program accepting scholarships must use the revenue to supplement and not 161.23supplant federal funding.161.24(c) Notwithstanding paragraph (a), all Minnesota early learning foundation 161.25scholarship program pilot sites are eligible to accept an early learning scholarship under 161.26this section.161.27    Sec. 35. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, 161.28is amended to read:161.29    Subd. 5. Report required. The commissioner shall contract with an independent 161.30contractor to evaluate the early learning scholarship program. The evaluation must 161.31include recommendations regarding the appropriate scholarship amount, efficiency, and 161.32effectiveness of the administration, and impact on kindergarten readiness and student 161.33outcomes by program setting, including Head Start programs, school-based prekindergarten 161.34and preschool programs, and other early education and child care programs. The report 162.1must also include the number of scholarship recipients in school-based, home-based, 162.2and center-based programs as well as a geographic summary of scholarship recipients 162.3by county. By January 15, 2016, the commissioner shall submit a written copy of the 162.4evaluation to the chairs and ranking minority members of the legislative committees and 162.5divisions with primary jurisdiction over kindergarten through grade 12 education.162.6    Sec. 36. Minnesota Statutes 2012, section 124D.522, is amended to read:162.7124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 162.8GRANTS.162.9(a) The commissioner, in consultation with the policy review task force under 162.10section 
         124D.521, may make grants to nonprofit organizations to provide services that 162.11are not offered by a district adult basic education program or that are supplemental to 162.12either the statewide adult basic education program, or a district's adult basic education 162.13program. The commissioner may make grants for: staff development for adult basic 162.14education teachers and administrators; training for volunteer tutors; training, services, and 162.15materials for serving disabled students through adult basic education programs; statewide 162.16promotion of adult basic education services and programs; development and dissemination 162.17of instructional and administrative technology for adult basic education programs; 162.18programs which primarily serve communities of color; adult basic education distance 162.19learning projects, including television instruction programs; and other supplemental 162.20services to support the mission of adult basic education and innovative delivery of adult 162.21basic education services.162.22(b) The commissioner must establish eligibility criteria and grant application 162.23procedures. Grants under this section must support services throughout the state, focus on 162.24educational results for adult learners, and promote outcome-based achievement through 162.25adult basic education programs. Beginning in fiscal year 2002, the commissioner may 162.26make grants under this section from the state total adult basic education aid set aside for 162.27supplemental service grants under section 
         124D.531. Up to one-fourth of the appropriation 162.28for supplemental service grants must be used for grants for adult basic education programs 162.29to encourage and support innovations in adult basic education instruction and service 162.30delivery. A grant to a single organization cannot exceed 20 40 percent of the total 162.31supplemental services aid. Nothing in this section prevents an approved adult basic 162.32education program from using state or federal aid to purchase supplemental services.162.33    Sec. 37. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, 162.34is amended to read:163.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic 163.2education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 163.3during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 163.4(a), or section 
         124D.52, subdivision 3. The state total adult basic education aid for later 163.5fiscal years equals:163.6    (1) the state total adult basic education aid for the preceding fiscal year plus any 163.7amount that is not paid for during the previous fiscal year, as a result of adjustments under 163.8subdivision 4, paragraph (a), or section 
         124D.52, subdivision 3; times163.9    (2) the lesser of:163.10    (i) 1.025 1.03; or163.11    (ii) the average growth in state total contact hours over the prior ten program years.163.12    Beginning in fiscal year 2002, two Three percent of the state total adult basic 163.13education aid must be set aside for adult basic education supplemental service grants 163.14under section 
         124D.522.163.15    (b) The state total adult basic education aid, excluding basic population aid, equals 163.16the difference between the amount computed in paragraph (a), and the state total basic 163.17population aid under subdivision 2.163.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 163.19and later.163.20    Sec. 38. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:163.21    Subd. 3. Program revenue. Adult basic education programs established under 163.22section 
         124D.52 and approved by the commissioner are eligible for revenue under this 163.23subdivision. For fiscal year 2001 and later, adult basic education revenue for each 163.24approved program equals the sum of:163.25(1) the basic population aid under subdivision 2 for districts participating in the 163.26program during the current program year; plus163.27(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the 163.28ratio of the contact hours for students participating in the program during the first prior 163.29program year to the state total contact hours during the first prior program year; plus163.30(3) eight percent times the amount computed in subdivision 1, paragraph (b), times 163.31the ratio of the enrollment of English learners during the second prior school year in 163.32districts participating in the program during the current program year to the state total 163.33enrollment of English learners during the second prior school year in districts participating 163.34in adult basic education programs during the current program year; plus164.1(4) eight percent times the amount computed in subdivision 1, paragraph (b), times 164.2the ratio of the latest federal census count of the number of adults aged 20 25 or older 164.3with no diploma residing in the districts participating in the program during the current 164.4program year to the latest federal census count of the state total number of adults aged 20164.5 25 or older with no diploma residing in the districts participating in adult basic education 164.6programs during the current program year.164.7    Sec. 39. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:164.8    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten 164.9through grade 12 who meets the following requirements:164.10(1) the pupil, as declared by a parent or guardian first learned a language other than 164.11English, comes from a home where the language usually spoken is other than English, or 164.12usually speaks a language other than English; and164.13(2) the pupil is determined by a valid assessment measuring the pupil's English 164.14language proficiency and by developmentally appropriate measures, which might include 164.15observations, teacher judgment, parent recommendations, or developmentally appropriate 164.16assessment instruments, to lack the necessary English skills to participate fully in 164.17academic classes taught in English.164.18(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school 164.19in grades any grade 4 through 12 who was enrolled in a Minnesota public school on 164.20the dates during in the previous school year when a commissioner provided took a 164.21commissioner-provided assessment that measures measuring the pupil's emerging 164.22academic English was administered, shall not be counted as an English learner in 164.23calculating English learner pupil units under section 
         126C.05, subdivision 17, and shall not164.24 generate state English learner aid under section 
         124D.65, subdivision 5, unless if the pupil 164.25scored below the state cutoff score or is otherwise counted as a nonproficient participant 164.26on an the assessment measuring the pupil's emerging academic English provided by the 164.27commissioner during the previous school year or in the judgment of the pupil's classroom 164.28teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate 164.29academic language proficiency in English, including oral academic language, sufficient to 164.30successfully and fully participate in the general core curriculum in the regular classroom.164.31(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 164.3212 shall not be counted as an English learner in calculating English learner pupil units 164.33under section 
         126C.05, subdivision 17, and shall not generate state English learner aid 164.34under section 
         124D.65, subdivision 5, if:165.1(1) the pupil is not enrolled during the current fiscal year in an educational program 165.2for English learners in accordance with under sections 
         124D.58 to 
         124D.64; or165.3(2) the pupil has generated five six  or more years of average daily membership in 165.4Minnesota public schools since July 1, 1996.165.5EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and 165.6later.165.7    Sec. 40. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, 165.8is amended to read:165.9    Subdivision 1. Initial achievement and integration revenue. (a) An eligible 165.10district's initial achievement and integration revenue equals the lesser of 100.3 percent of 165.11the district's expenditures under the budget approved by the commissioner under section 165.12124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive 165.13revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil 165.14units for that year times the ratio of the district's enrollment of protected students for the 165.15previous school year to total enrollment for the previous school year and (2) the greater of 165.16zero or 66 percent of the difference between the district's integration revenue for fiscal 165.17year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).165.18(b) In each year, 0.3 percent of each district's initial achievement and integration 165.19revenue is transferred to the department for the oversight and accountability activities 165.20required under this section and section 
         124D.861.165.21EFFECTIVE DATE.This section is effective the day following final enactment 165.22and applies to revenue for fiscal year 2014 and later.165.23    Sec. 41. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, 165.24is amended to read:165.25    Subd. 2. Incentive revenue. An eligible school district's maximum incentive 165.26revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 165.27be A district's incentive revenue equals the lesser of the maximum incentive revenue 165.28or the district's expenditures for implementing a voluntary plan to reduce racial and 165.29economic enrollment disparities through intradistrict and interdistrict activities that have 165.30been approved as a part of the district's achievement and integration plan under the budget 165.31approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).165.32EFFECTIVE DATE.This section is effective the day following final enactment 165.33and applies to revenue for fiscal year 2014 and later.166.1    Sec. 42. Minnesota Statutes 2012, section 125A.08, is amended to read:166.2125A.08 INDIVIDUALIZED EDUCATION PROGRAMS; DATA 166.3REPORTING REQUIREMENTS.166.4    Subdivision 1.Requirements for individualized education programs. (a) At the 166.5beginning of each school year, each school district shall have in effect, for each child with 166.6a disability, an individualized education program.166.7(b) As defined in this section, every district must ensure the following:166.8(1) all students with disabilities are provided the special instruction and services 166.9which are appropriate to their needs. Where the individualized education program team 166.10has determined appropriate goals and objectives based on the student's needs, including 166.11the extent to which the student can be included in the least restrictive environment, 166.12and where there are essentially equivalent and effective instruction, related services, or 166.13assistive technology devices available to meet the student's needs, cost to the district may 166.14be among the factors considered by the team in choosing how to provide the appropriate 166.15services, instruction, or devices that are to be made part of the student's individualized 166.16education program. The individualized education program team shall consider and 166.17may authorize services covered by medical assistance according to section 
         256B.0625, 166.18subdivision 26
         . The student's needs and the special education instruction and services to 166.19be provided must be agreed upon through the development of an individualized education 166.20program. The program must address the student's need to develop skills to live and work 166.21as independently as possible within the community. The individualized education program 166.22team must consider positive behavioral interventions, strategies, and supports that address 166.23behavior for children with attention deficit disorder or attention deficit hyperactivity 166.24disorder. During grade 9, the program must address the student's needs for transition from 166.25secondary services to postsecondary education and training, employment, community 166.26participation, recreation, and leisure and home living. In developing the program, districts 166.27must inform parents of the full range of transitional goals and related services that should 166.28be considered. The program must include a statement of the needed transition services, 166.29including a statement of the interagency responsibilities or linkages or both before 166.30secondary services are concluded;166.31(2) children with a disability under age five and their families are provided special 166.32instruction and services appropriate to the child's level of functioning and needs;166.33(3) children with a disability and their parents or guardians are guaranteed procedural 166.34safeguards and the right to participate in decisions involving identification, assessment 166.35including assistive technology assessment, and educational placement of children with a 166.36disability;167.1(4) eligibility and needs of children with a disability are determined by an initial 167.2assessment or reassessment, which may be completed using existing data under United 167.3States Code, title 20, section 33, et seq.;167.4(5) to the maximum extent appropriate, children with a disability, including those 167.5in public or private institutions or other care facilities, are educated with children who 167.6are not disabled, and that special classes, separate schooling, or other removal of children 167.7with a disability from the regular educational environment occurs only when and to the 167.8extent that the nature or severity of the disability is such that education in regular classes 167.9with the use of supplementary services cannot be achieved satisfactorily;167.10(6) in accordance with recognized professional standards, testing and evaluation 167.11materials, and procedures used for the purposes of classification and placement of children 167.12with a disability are selected and administered so as not to be racially or culturally 167.13discriminatory; and167.14(7) the rights of the child are protected when the parents or guardians are not known 167.15or not available, or the child is a ward of the state.167.16(c) For paraprofessionals employed to work in programs for students with 167.17disabilities, the school board in each district shall ensure that:167.18(1) before or immediately upon employment, each paraprofessional develops 167.19sufficient knowledge and skills in emergency procedures, building orientation, roles and 167.20responsibilities, confidentiality, vulnerability, and reportability, among other things, to 167.21begin meeting the needs of the students with whom the paraprofessional works;167.22(2) annual training opportunities are available to enable the paraprofessional to 167.23continue to further develop the knowledge and skills that are specific to the students with 167.24whom the paraprofessional works, including understanding disabilities, following lesson 167.25plans, and implementing follow-up instructional procedures and activities; and167.26(3) a districtwide process obligates each paraprofessional to work under the ongoing 167.27direction of a licensed teacher and, where appropriate and possible, the supervision of a 167.28school nurse.167.29    Subd. 2.Online reporting of required data.(a) To ensure a strong focus 167.30on outcomes for children with disabilities informs federal and state compliance and 167.31accountability requirements and to increase opportunities for special educators and 167.32related-services providers to focus on teaching children with disabilities, the commissioner 167.33must integrate, customize, and sustain a streamlined, user-friendly statewide online system, 167.34with a single, integrated model online form, for effectively and efficiently collecting 167.35and reporting required special education–related data to individuals with a legitimate 167.36educational interest and who are authorized by law to access the data. Among other 168.1data-related requirements, the online system must successfully interface with existing state 168.2reporting systems such as MARSS and Child Count and with districts' local data systems.168.3(b) The commissioner must consult with qualified experts, including information 168.4technology specialists, licensed special education teachers and directors of special 168.5education, related-services providers, third-party vendors, a designee of the commissioner 168.6of human services, parents of children with disabilities, representatives of advocacy groups 168.7representing children with disabilities, and representatives of school districts and special 168.8education cooperatives on integrating, field testing, customizing, and sustaining this simple, 168.9easily accessible, efficient, and effective online data system for uniform statewide reporting 168.10of required due process compliance data. Among other outcomes, the system must:168.11    (1) reduce special education teachers' paperwork burden and thereby increase the 168.12teachers' opportunities to focus on teaching children;168.13(2) to the extent authorized by chapter 13 or other applicable state or federal law 168.14governing access to and dissemination of educational records, provide for efficiently and 168.15effectively transmitting the records of all transferring children with disabilities, including 168.16highly mobile and homeless children with disabilities, among others, to give an enrolling 168.17school, school district, facility, or other institution immediate access to information about 168.18the transferring child and to avoid fragmented service delivery;168.19(3) address language and other barriers and disparities that prevent parents from 168.20understanding and communicating information about the needs of their children with 168.21disabilities;168.22(4) facilitate school districts' ability to bill medical assistance, MinnesotaCare, 168.23and other third-party payers for the costs of providing individualized education program 168.24health-related services to an eligible child with disabilities;168.25(5) help continuously improve the interface among the online systems serving 168.26children with disabilities in order to maintain and reinforce the children's ability to learn; 168.27and168.28(6) have readily accessible expert technical assistance to maintain, sustain, and 168.29improve the online system.168.30(c) The commissioner must use the federal Office of Special Education Programs 168.31model forms for the (1) individualized education program, (2) notice of procedural 168.32safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate 168.33and customize a state-sponsored universal special education online case management 168.34system, consistent with the requirements of state law and this subdivision for integrating, 168.35customizing, and sustaining a statewide online reporting system. The commissioner must 168.36use a request for proposal process to contract for the technology and software needed 169.1for integrating and customizing the online system in order for the system to be fully 169.2functional, consistent with the requirements of this subdivision.  This online system must 169.3be made available to school districts without charge beginning in the 2015-2016 school 169.4year. All actions in which data in the system are entered, updated, accessed, or shared or 169.5disseminated outside of the system, must be recorded in a data audit trail. The audit trail 169.6must identify the user responsible for the action, and the date and time the action occurred. 169.7Data contained in the audit trail maintain the same classification as the underlying data 169.8that was affected by the action, and may be accessed by the responsible authority at any 169.9time for purposes of auditing the system's user activity and security safeguards. For the 169.102015-2016 through 2017-2018 school years, school districts may use this online system or 169.11may contract with an outside vendor for compliance reporting. Beginning in the 2018-2019 169.12school year and later, school districts must use this online system for compliance reporting.169.13(d) Consistent with this subdivision, the commissioner must establish a public 169.14Internet Web interface to provide information to educators, parents, and the public about 169.15the form and content of required special education reports, to respond to queries from 169.16educators, parents, and the public about specific aspects of special education reports and 169.17reporting, and to use the information garnered from the interface to streamline and revise 169.18special education reporting on the online system under this subdivision. The public Internet 169.19Web interface must not provide access to the educational records of any individual child.169.20(e) The commissioner annually by February 1 must submit to the legislature a report 169.21on the status, recent changes, and sustainability of the online system under this subdivision.169.22    Sec. 43. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is 169.23amended to read:169.24    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 169.25later, when a school district provides special instruction and services for a pupil with 169.26a disability as defined in section 
         125A.02 outside the district of residence, excluding 169.27a pupil for whom an adjustment to special education aid is calculated according to 169.28section 
         127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 169.29resident district must be reduced by an amount equal to (1) the actual cost of providing 169.30special instruction and services to the pupil, including a proportionate amount for special 169.31transportation and unreimbursed building lease and debt service costs for facilities used 169.32primarily for special education, plus (2) the amount of general education revenue and 169.33referendum equalization aid attributable to that pupil, calculated using the resident district's 169.34average general education revenue and referendum equalization aid per adjusted pupil 169.35unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 170.1revenue, minus (3) the amount of special education aid for children with a disability 170.2under section 
         125A.76 received on behalf of that child, minus (4) if the pupil receives 170.3special instruction and services outside the regular classroom for more than 60 percent 170.4of the school day, the amount of general education revenue and referendum equalization 170.5aid, excluding portions attributable to district and school administration, district support 170.6services, operations and maintenance, capital expenditures, and pupil transportation, 170.7attributable to that pupil for the portion of time the pupil receives special instruction 170.8and services outside of the regular classroom, calculated using the resident district's 170.9average general education revenue and referendum equalization aid per adjusted pupil unit 170.10excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 170.11and the serving district's basic skills revenue, elementary sparsity revenue and secondary 170.12sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 170.13served by a cooperative unit without a fiscal agent school district, the general education 170.14revenue and referendum equalization aid attributable to a pupil must be calculated using 170.15the resident district's average general education revenue and referendum equalization aid 170.16excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 170.17revenue. Special education aid paid to the district or cooperative providing special 170.18instruction and services for the pupil must be increased by the amount of the reduction in 170.19the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 170.20and section 
         127A.47, subdivision 7, shall be recognized and reported as revenues and 170.21expenditures on the resident school district's books of account under sections 
         123B.75 170.22and 
         123B.76. If the resident district's special education aid is insufficient to make the full 170.23adjustment, the remaining adjustment shall be made to other state aid due to the district.170.24    (b) Notwithstanding paragraph (a) and section 
         127A.47, subdivision 7, paragraphs 170.25(b) to (d), a charter school where more than 30 percent of enrolled students receive special 170.26education and related services, a site approved under section 
         125A.515, an intermediate 170.27district, a special education cooperative, or a school district that served as the applicant 170.28agency for a group of school districts for federal special education aids for fiscal year 170.292006 may apply to the commissioner for authority to charge the resident district an 170.30additional amount to recover any remaining unreimbursed costs of serving pupils with 170.31a disability. The application must include a description of the costs and the calculations 170.32used to determine the unreimbursed portion to be charged to the resident district. Amounts 170.33approved by the commissioner under this paragraph must be included in the tuition billings 170.34or aid adjustments under paragraph (a), or section 
         127A.47, subdivision 7, paragraphs 170.35(b) to (d), as applicable.171.1    (c) For purposes of this subdivision and section 
         127A.47, subdivision 7, paragraphs 171.2(d) and (e) paragraph (b), "general education revenue and referendum equalization aid" 171.3means the sum of the general education revenue according to section 
         126C.10, subdivision 171.41, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph 171.5(c), plus the referendum equalization aid according to section 
         126C.17, subdivision 7.171.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 171.7and later.171.8    Sec. 44. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is 171.9amended to read:171.10    Subdivision 1. Definitions. (a) For the purposes of this section and section 
         125A.79, 171.11the definitions in this subdivision apply.171.12    (b) "Basic revenue" has the meaning given it in section 
         126C.10, subdivision 2. 171.13For the purposes of computing basic revenue pursuant to this section, each child with a 171.14disability shall be counted as prescribed in section 
         126C.05, subdivision 1.171.15    (c) "Essential personnel" means teachers, cultural liaisons, related services, and 171.16support services staff providing services to students. Essential personnel may also include 171.17special education paraprofessionals or clericals providing support to teachers and students 171.18by preparing paperwork and making arrangements related to special education compliance 171.19requirements, including parent meetings and individualized education programs. Essential 171.20personnel does not include administrators and supervisors.171.21    (d) "Average daily membership" has the meaning given it in section 
         126C.05.171.22    (e) "Program growth factor" means 
         1.046 for fiscal years 2012 though through 2015, 171.231.0 for fiscal year 2016, 
         1.046 for fiscal year 2017, and the product of 
         1.046 and the 171.24program growth factor for the previous year for fiscal year 2018 and later.171.25(f) "Nonfederal special education expenditure" means all direct expenditures that 171.26are necessary and essential to meet the district's obligation to provide special instruction 171.27and services to children with a disability according to sections 
         124D.454, 
         125A.03 to 171.28125A.24
         , 
         125A.259 to 
         125A.48, and 
         125A.65 as submitted by the district and approved by 171.29the department under section 
         125A.75, subdivision 4, excluding expenditures:171.30(1) reimbursed with federal funds;171.31(2) reimbursed with other state aids under this chapter;171.32(3) for general education costs of serving students with a disability;171.33(4) for facilities;171.34(5) for pupil transportation; and171.35(6) for postemployment benefits.172.1(g) "Old formula special education expenditures" means expenditures eligible for 172.2revenue under Minnesota Statutes 2012, section 
         125A.76, subdivision 2.172.3    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy 172.4for the Blind, expenditures are limited to the salary and fringe benefits of one-to-one 172.5instructional and behavior management aides assigned to a child attending the academy, if 172.6the aides are required by the child's individualized education program.172.7(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 172.82014 and 
         2.27 percent for fiscal year 2015.172.9(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 172.10for fiscal year 2015.172.11(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 172.12for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education 172.13aid increase limit for the previous fiscal year and $40.172.14    Sec. 45. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, 172.15is amended to read:172.16    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's 172.17special education initial aid equals the sum of:172.18(1) the lesser least of 62 percent of the district's old formula special education 172.19expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 172.20percent of the district's nonfederal special education expenditures for the prior year, 172.21excluding pupil transportation expenditures, or 56 percent of the product of the sum of the 172.22following amounts, computed using prior fiscal year data, and the program growth factor:172.23(i) the product of the district's average daily membership served and the sum of:172.24(A) $450; plus172.25(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 172.26who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 172.27who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus172.28(C) .008 times the district's average daily membership served; plus172.29(ii) $10,400 times the December 1 child count for the primary disability areas of 172.30autism spectrum disorders, developmental delay, and severely multiply impaired; plus172.31(iii) $18,000 times the December 1 child count for the primary disability areas of 172.32deaf and hard-of-hearing and emotional or behavioral disorders; plus172.33(iv) $27,000 times the December 1 child count for the primary disability areas of 172.34developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 172.35physically impaired, visually impaired, and deafblind; plus173.1(2) the cost of providing transportation services for children with disabilities under 173.2section 
         123B.92, subdivision 1, paragraph (b), clause (4).173.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 173.4and later.173.5    Sec. 46. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, 173.6is amended to read:173.7    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 173.8subsidy reduction aid for a school district, not including a charter school, equals the 173.9lesser of (a) the product of the cross subsidy reduction aid limit and the district's average 173.10daily membership served or (b) the sum of the product of the cross subsidy reduction aid 173.11percentage, the district's average daily membership served, and the sum of:173.12(1) $450; plus173.13(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 173.14who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 173.15who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus173.16(3) .008 times the district's average daily membership served; plus the product of the 173.17cross subsidy aid percentage and the sum of:173.18(i) $10,100 times the December 1 child count for the primary disability areas of 173.19autism spectrum disorders, developmental delay, and severely multiply impaired; plus173.20(ii) $17,500 times the December 1 child count for the primary disability areas of 173.21deaf and hard-of-hearing and emotional or behavioral disorders; plus173.22(iii) $26,000 times the December 1 child count for the primary disability areas of 173.23developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 173.24physically impaired, visually impaired, and deafblind.173.25EFFECTIVE DATE.This section is effective the day following final enactment 173.26and applies to revenue for fiscal year 2014 and later.173.27    Sec. 47. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, 173.28is amended to read:173.29    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 173.30district's special education aid equals the sum of the district's special education initial aid 173.31under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and 173.32the district's excess cost aid under section 
         125A.79, subdivision 7.174.1(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 174.2the district's special education initial aid under subdivision 2a and the district's excess cost 174.3aid under section 
         125A.79, subdivision 5.174.4(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 174.5a school district must not exceed the sum of the special education aid the district would 174.6have received for fiscal year 2016 under Minnesota Statutes 2012, sections 
         125A.76 174.7and 
         125A.79, as adjusted according to Minnesota Statutes 2012, sections 
         125A.11 and 174.8127A.47, subdivision 7
         , and the product of the district's average daily membership served 174.9and the special education aid increase limit.174.10(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 174.11aid for a school district must not exceed the sum of: (i) the product of the district's average 174.12daily membership served and the special education aid increase limit and (ii) the product 174.13of the sum of the special education aid the district would have received for fiscal year 2016 174.14under Minnesota Statutes 2012, sections 
         125A.76 and 
         125A.79, as adjusted according 174.15to Minnesota Statutes 2012, sections 
         125A.11 and 
         127A.47, subdivision 7, the ratio of 174.16the district's average daily membership served for the current fiscal year to the district's 174.17average daily membership served for fiscal year 2016, and the program growth factor.174.18(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 174.19aid for a school district, not including a charter school, must not be less than the lesser of 174.20(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 174.21product of the sum of the special education aid the district would have received for fiscal 174.22year 2016 under Minnesota Statutes 2012, sections 
         125A.76 and 
         125A.79, as adjusted 174.23according to Minnesota Statutes 2012, sections 
         125A.11 and 
         127A.47, subdivision 7, the 174.24ratio of the district's adjusted daily membership for the current fiscal year to the district's 174.25average daily membership for fiscal year 2016, and the program growth factor.174.26EFFECTIVE DATE.This section is effective the day following final enactment 174.27and applies to revenue for fiscal year 2014 and later.174.28    Sec. 48. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is 174.29amended to read:174.30    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 174.31subdivision apply.174.32    (a) "Unreimbursed old formula special education expenditures" means:174.33    (1) old formula special education expenditures for the prior fiscal year; minus174.34    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section 174.35125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 175.1section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 175.2initial aid under section 125A.76, subdivision 2a; minus175.3(3) for fiscal year 2016 and later, the amount of general education revenue, excluding 175.4local optional revenue, plus local optional aid and referendum equalization aid for the 175.5prior fiscal year attributable to pupils receiving special instruction and services outside the 175.6regular classroom for more than 60 percent of the school day for the portion of time the 175.7pupils receive special instruction and services outside the regular classroom, excluding 175.8portions attributable to district and school administration, district support services, 175.9operations and maintenance, capital expenditures, and pupil transportation.175.10(b) "Unreimbursed nonfederal special education expenditures" means:175.11(1) nonfederal special education expenditures for the prior fiscal year; minus175.12(2) special education initial aid under section 
         125A.76, subdivision 2a; minus175.13(3) the amount of general education revenue and referendum equalization aid for the 175.14prior fiscal year attributable to pupils receiving special instruction and services outside the 175.15regular classroom for more than 60 percent of the school day for the portion of time the 175.16pupils receive special instruction and services outside of the regular classroom, excluding 175.17portions attributable to district and school administration, district support services, 175.18operations and maintenance, capital expenditures, and pupil transportation.175.19    (c) "General revenue" for a school district means the sum of the general education 175.20revenue according to section 
         126C.10, subdivision 1, excluding alternative teacher 175.21compensation revenue, minus transportation sparsity revenue minus, local optional 175.22revenue, and total operating capital revenue. "General revenue" for a charter school means 175.23the sum of the general education revenue according to section 
         124D.11, subdivision 1, and 175.24transportation revenue according to section 
         124D.11, subdivision 2, excluding alternative 175.25teacher compensation revenue, minus referendum equalization aid minus, transportation 175.26sparsity revenue minus, and operating capital revenue.175.27EFFECTIVE DATE.This section is effective the day following final enactment 175.28and applies to revenue for fiscal year 2014 and later.175.29    Sec. 49. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is 175.30amended to read:175.31    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial175.32 excess cost aid equals the greater of:175.33    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal 175.34special education expenditures and (ii) 7.0 percent of the district's general revenue;176.1    (2) 62 percent of the difference between (i) the district's unreimbursed old formula 176.2special education expenditures and (ii) 2.5 percent of the district's general revenue; or176.3    (3) zero.176.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 176.5and later.176.6    Sec. 50. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is 176.7amended to read:176.8    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive 176.9services under section 
         125A.76, subdivisions 1 and 2, and are placed in a care and 176.10treatment facility by court action in a state that does not have a reciprocity agreement with 176.11the commissioner under section 
         125A.155, the resident school district shall submit the 176.12balance receive special education out-of-state tuition aid equal to the amount of the tuition 176.13bills, minus (1) the general education revenue, excluding basic skills revenue and the local 176.14optional levy attributable to the pupil, calculated using the resident district's average 176.15general education revenue per adjusted pupil unit, and (2) the referendum equalization aid 176.16attributable to the pupil, calculated using the resident district's average general education 176.17revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special 176.18education contracted services initial revenueaid attributable to the pupil.176.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 176.20and later.176.21    Sec. 51. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, 176.22is amended to read:176.23    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning 176.24year program under section 
         124D.128, an area learning center or an alternative learning 176.25program approved by the commissioner under sections 
         123A.05 and 
         123A.06, or a 176.26contract alternative program under section 
         124D.68, subdivision 3, paragraph (d), or 176.27subdivision 4, for more than 1,020 hours in a school year for a secondary student, more 176.28than 935 hours in a school year for an elementary student, more than 850 hours in a school 176.29year for a kindergarten student without a disability in an all-day kindergarten program, 176.30or more than 425 hours in a school year for a half-day kindergarten student without a 176.31disability, that pupil may be counted as more than one pupil in average daily membership 176.32for purposes of section 
         126C.10, subdivision 2a. The amount in excess of one pupil must 176.33be determined by the ratio of the number of hours of instruction provided to that pupil in 177.1excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 177.2secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 177.3or the number of hours required for a full-time elementary pupil in the district to 935 for 177.4an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the 177.5number of hours required for a full-time kindergarten student without a disability in the 177.6district to 425 850 for a kindergarten student without a disability; and (iv) the greater of 177.7425 hours or the number of hours required for a half-time kindergarten student without a 177.8disability in the district to 425 for a half-day kindergarten student without a disability. 177.9Hours that occur after the close of the instructional year in June shall be attributable to 177.10the following fiscal year. A student in kindergarten or grades 1 through 12 must not be 177.11counted as more than 1.2 pupils in average daily membership under this subdivision.177.12(b)(i) To receive general education revenue for a pupil in an area learning center 177.13or alternative learning program that has an independent study component, a district 177.14must meet the requirements in this paragraph. The district must develop, for the pupil, 177.15a continual learning plan consistent with section 
         124D.128, subdivision 3. Each school 177.16district that has an area learning center or alternative learning program must reserve 177.17revenue in an amount equal to at leastbetween 90 and 100 percent of the district average 177.18general education revenue per pupil unit, minus an amount equal to the product of the 177.19formula allowance according to section 
         126C.10, subdivision 2, times .0466, calculated 177.20without basic skills revenue, local optional revenue, and transportation sparsity revenue, 177.21times the number of pupil units generated by students attending an area learning center 177.22or alternative learning program. The amount of reserved revenue available under this 177.23subdivision may only be spent for program costs associated with the area learning center or 177.24alternative learning program. Basic skills revenue generated according to section 
         126C.10, 177.25subdivision 4
         , by pupils attending the eligible program must be allocated to the program.177.26(ii) General education revenue for a pupil in a state-approved alternative program 177.27without an independent study component must be prorated for a pupil participating for less 177.28than a full year, or its equivalent. The district must develop a continual learning plan for 177.29the pupil, consistent with section 
         124D.128, subdivision 3. Each school district that has an 177.30area learning center or alternative learning program must reserve revenue in an amount 177.31equal to at leastbetween 90 and 100 percent of the district average general education 177.32revenue per pupil unit, minus an amount equal to the product of the formula allowance 177.33according to section 
         126C.10, subdivision 2, times .0466, calculated without basic skills 177.34revenue, local optional revenue, and transportation sparsity revenue, times the number of 177.35pupil units generated by students attending an area learning center or alternative learning 177.36program. The amount of reserved revenue available under this subdivision may only be 178.1spent for program costs associated with the area learning center or alternative learning 178.2program. Basic skills revenue generated according to section 
         126C.10, subdivision 4, by 178.3pupils attending the eligible program must be allocated to the program.178.4(iii) General education revenue for a pupil in a state-approved alternative program 178.5that has an independent study component must be paid for each hour of teacher contact 178.6time and each hour of independent study time completed toward a credit or graduation 178.7standards necessary for graduation. Average daily membership for a pupil shall equal the 178.8number of hours of teacher contact time and independent study time divided by 1,020.178.9(iv) For a state-approved alternative program having an independent study 178.10component, the commissioner shall require a description of the courses in the program, the 178.11kinds of independent study involved, the expected learning outcomes of the courses, and 178.12the means of measuring student performance against the expected outcomes.178.13    Sec. 52. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, 178.14is amended to read:178.15    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for 178.16fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal 178.17cost pupil units of the district for each pupil in average daily membership in excess of 1.0 178.18and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended 178.19time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum 178.20of the adjusted pupil units of the district for each pupil in average daily membership in 178.21excess of 1.0 and less than 1.2 according to section 
         126C.05, subdivision 8.178.22(b) A school district's extended time revenue may be used for extended day 178.23programs, extended week programs, summer school, and other programming authorized 178.24under the learning year program.178.25EFFECTIVE DATE.This section is effective the day following final enactment 178.26and applies to revenue for fiscal year 2014 and later.178.27    Sec. 53. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d, 178.28is amended to read:178.29    Subd. 2d. Declining enrollment revenue.(a) A school district's declining 178.30enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the 178.31formula allowance for that year and (2) the difference between the adjusted pupil units for 178.32the preceding year and the adjusted pupil units for the current year.179.1(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil 179.2enrolled at the Crosswinds school shall not generate declining enrollment revenue for the 179.3district or charter school in which the pupil was last counted in average daily membership.179.4    Sec. 54. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 13a, 179.5is amended to read:179.6    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal 179.7year 2015 and later, a district may levy an amount not more than the product of its 179.8operating capital revenue for the fiscal year times the lesser of one or the ratio of its 179.9adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 179.10equalizing factor. The operating capital equalizing factor equals $14,500 $14,500 for 179.11fiscal year 2015, $15,315 for fiscal year 2016, and $15,043 for fiscal year 2017 and later.179.12    Sec. 55. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, 179.13is amended to read:179.14    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:179.15    (1) the school district's adjusted pupil unit amount of basic revenue, transition 179.16revenue, and referendum revenue is less than the value of the school district at or 179.17immediately above the 95th percentile of school districts in its equity region for those 179.18revenue categories; and179.19    (2) the school district's administrative offices are not located in a city of the first 179.20class on July 1, 1999.179.21    (b) Equity revenue for a qualifying district that receives referendum revenue under 179.22section 
         126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 179.23units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 179.24equity index computed under subdivision 27.179.25    (c) Equity revenue for a qualifying district that does not receive referendum revenue 179.26under section 
         126C.17, subdivision 4, equals the product of the district's adjusted pupil 179.27units for that year times $14.179.28    (d) A school district's equity revenue is increased by the greater of zero or an amount 179.29equal to the district's resident adjusted pupil units times the difference between ten percent 179.30of the statewide average amount of referendum revenue per resident adjusted pupil unit for 179.31that year and the district's referendum revenue per resident adjusted pupil unit. A school 179.32district's revenue under this paragraph must not exceed $100,000 for that year.179.33    (e) A school district's equity revenue for a school district located in the metro equity 179.34region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 
         1.25.180.1    (f) A school district's additional equity revenue equals $50 times its adjusted pupil 180.2units.180.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 180.4and later.180.5    Sec. 56. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:180.6    Subd. 25. Regional equity gap. The regional equity gap equals the difference 180.7between the value of the school district at or immediately above the fifth percentile of 180.8adjusted general revenue per adjusted marginal cost pupil unit and the value of the school 180.9district at or immediately above the 95th percentile of adjusted general revenue per 180.10adjusted marginal cost pupil unit.180.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 180.12and later.180.13    Sec. 57. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:180.14    Subd. 26. District equity gap. A district's equity gap equals the greater of zero 180.15or the difference between the district's adjusted general revenue and the value of the 180.16school district at or immediately above the regional 95th percentile of adjusted general 180.17revenue per adjusted marginal cost pupil unit.180.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 180.19and later.180.20    Sec. 58. Minnesota Statutes 2012, section 126C.10, subdivision 28, is amended to read:180.21    Subd. 28. Equity region. For the purposes of computing equity revenue under 180.22subdivision 24, a district with its administrative office located in Anoka, Carver, Dakota, 180.23Hennepin, Ramsey, Scott, or Washington County on January 1, 2012, with any of its area 180.24located within the seven-county metropolitan area is part of the metro equity region. All 180.25other districts are part of the rural equity region.180.26EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.180.27    Sec. 59. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, 180.28is amended to read:180.29    Subd. 31. Transition revenue. (a) A district's transition allowance equals the 180.30sum of the transition revenue the district would have received for fiscal year 2015 under 181.1Minnesota Statutes 2012, section 
         126C.10, subdivisions 31, 31a, and 31c, and the greater 181.2of zero or the difference between:181.3    (1) the sum of:181.4    (i) the general education revenue the district would have received for fiscal year 181.52015 according to Minnesota Statutes 2012, section 
         126C.10;181.6(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 181.7Statutes 2012, section 
         124D.86;181.8(iii) the pension adjustment the district would have received for fiscal year 2015 181.9under Minnesota Statutes 2012, section 
         127A.50;181.10(iv) the special education aid the district would have received for fiscal year 2015 181.11under Minnesota Statutes 2012, section 
         125A.76; and181.12(v) the special education excess cost aid the district would have received for fiscal 181.13year 2015 under Minnesota Statutes 2012, section 
         125A.79; and181.14(2) the sum of the district's:181.15(i) general education revenue for fiscal year 2015 excluding transition revenue 181.16under this section;181.17(ii) achievement and integration revenue for fiscal year 2015 under section 181.18124D.862
         ; and181.19(iii) special education aid for fiscal year 2015 under section 
         125A.76; and181.20(iv) alternative teacher compensation revenue for fiscal year 2015 under section 181.21122A.415,181.22divided by the number of adjusted pupil units for fiscal year 2015.181.23    (b) A district's transition revenue for fiscal year 2015 and later equals the product of 181.24the district's transition allowance times the district's adjusted pupil units.181.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 181.26and later.181.27    Sec. 60. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is 181.28amended to read:181.29    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,181.30 A district's referendum equalization levy equals the sum of the first tier referendum 181.31equalization levy, the second tier referendum equalization levy, and the third tier 181.32referendum equalization levy.182.1(b) A district's first tier referendum equalization levy equals the district's first tier 182.2referendum equalization revenue times the lesser of one or the ratio of the district's 182.3referendum market value per resident pupil unit to $880,000.182.4(c) A district's second tier referendum equalization levy equals the district's second 182.5tier referendum equalization revenue times the lesser of one or the ratio of the district's 182.6referendum market value per resident pupil unit to $510,000.182.7(d) A district's third tier referendum equalization levy equals the district's third 182.8tier referendum equalization revenue times the lesser of one or the ratio of the district's 182.9referendum market value per resident pupil unit to $290,000.182.10    Sec. 61. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, 182.11is amended to read:182.12    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum 182.13of a district's referendum equalization aid and local optional aid under section 126C.10, 182.14subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum 182.15equalization aid the district would have received for fiscal year 2015 under Minnesota 182.16Statutes 2012, section 
         126C.17, subdivision 7, and the adjustment the district would have 182.17received under Minnesota Statutes 2012, section 
         127A.47, subdivision 7, paragraphs 182.18(a), (b), and (c).182.19(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and local 182.20optional aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, for a 182.21district qualifying for additional aid under paragraph (a) for fiscal year 2015, must not 182.22be less than the product of (1) the district's referendum equalization aid for fiscal year 182.232015, times (2) the lesser of one or the ratio of the district's referendum revenue for that 182.24school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser 182.25of one or the ratio of the district's referendum market value used for fiscal year 2015 182.26referendum equalization calculations to the district's referendum market value used for 182.27that year's referendum equalization calculations.182.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 182.29and later.182.30    Sec. 62. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is 182.31amended to read:182.32    Subd. 9. Referendum revenue. (a) The revenue authorized by section 
         126C.10, 182.33subdivision 1
         , may be increased in the amount approved by the voters of the district 182.34at a referendum called for the purpose. The referendum may be called by the board. 183.1The referendum must be conducted one or two calendar years before the increased levy 183.2authority, if approved, first becomes payable. Only one election to approve an increase 183.3may be held in a calendar year. Unless the referendum is conducted by mail under 183.4subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 183.5first Monday in November. The ballot must state the maximum amount of the increased 183.6revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, 183.7of increased revenue per adjusted pupil unit that differs from year to year over the number 183.8of years for which the increased revenue is authorized or may state that the amount shall 183.9increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 183.10annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 183.11state that existing referendum levy authority is expiring. In this case, the ballot may also 183.12compare the proposed levy authority to the existing expiring levy authority, and express 183.13the proposed increase as the amount, if any, over the expiring referendum levy authority. 183.14The ballot must designate the specific number of years, not to exceed ten, for which the 183.15referendum authorization applies. The ballot, including a ballot on the question to revoke 183.16or reduce the increased revenue amount under paragraph (c), must abbreviate the term 183.17"per adjusted pupil unit" as "per pupil." The notice required under section 
         275.60 may 183.18be modified to read, in cases of renewing existing levies at the same amount per pupil 183.19as in the previous year:183.20"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 183.21TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 183.22SCHEDULED TO EXPIRE."183.23    The ballot may contain a textual portion with the information required in this 183.24subdivision and a question stating substantially the following:183.25    "Shall the increase in the revenue proposed by (petition to) the board of ........., 183.26School District No. .., be approved?"183.27    If approved, an amount equal to the approved revenue per adjusted pupil unit times 183.28the adjusted pupil units for the school year beginning in the year after the levy is certified 183.29shall be authorized for certification for the number of years approved, if applicable, or 183.30until revoked or reduced by the voters of the district at a subsequent referendum.183.31    (b) The board must prepare and deliver by first class mail at least 15 days but no more 183.32than 30 days before the day of the referendum to each taxpayer a notice of the referendum 183.33and the proposed revenue increase. The board need not mail more than one notice to any 183.34taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 183.35those shown to be owners on the records of the county auditor or, in any county where 183.36tax statements are mailed by the county treasurer, on the records of the county treasurer. 184.1Every property owner whose name does not appear on the records of the county auditor 184.2or the county treasurer is deemed to have waived this mailed notice unless the owner 184.3has requested in writing that the county auditor or county treasurer, as the case may be, 184.4include the name on the records for this purpose. The notice must project the anticipated 184.5amount of tax increase in annual dollars for typical residential homesteads, agricultural 184.6homesteads, apartments, and commercial-industrial property within the school district.184.7    The notice for a referendum may state that an existing referendum levy is expiring 184.8and project the anticipated amount of increase over the existing referendum levy in 184.9the first year, if any, in annual dollars for typical residential homesteads, agricultural 184.10homesteads, apartments, and commercial-industrial property within the district.184.11    The notice must include the following statement: "Passage of this referendum will 184.12result in an increase in your property taxes." However, in cases of renewing existing levies, 184.13the notice may include the following statement: "Passage of this referendum extends an 184.14existing operating referendum at the same amount per pupil as in the previous year."184.15    (c) A referendum on the question of revoking or reducing the increased revenue 184.16amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 184.17revoke or reduce the revenue amount must state the amount per resident marginal cost184.18 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved 184.19by the voters of the district pursuant to paragraph (a) must be available to the school 184.20district at least once before it is subject to a referendum on its revocation or reduction for 184.21subsequent years. Only one revocation or reduction referendum may be held to revoke or 184.22reduce referendum revenue for any specific year and for years thereafter.184.23    (d) The approval of 50 percent plus one of those voting on the question is required to 184.24pass a referendum authorized by this subdivision.184.25    (e) At least 15 days before the day of the referendum, the district must submit a 184.26copy of the notice required under paragraph (b) to the commissioner and to the county 184.27auditor of each county in which the district is located. Within 15 days after the results 184.28of the referendum have been certified by the board, or in the case of a recount, the 184.29certification of the results of the recount by the canvassing board, the district must notify 184.30the commissioner of the results of the referendum.184.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 184.32and later.184.33    Sec. 63. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, 184.34is amended to read:185.1    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision 185.29, a school district may convert up to $300 per adjusted pupil unit of referendum authority 185.3from voter approved to board approved by a board vote. A district with less than $300 per 185.4adjusted pupil unit of referendum authority after the local optional revenue subtraction 185.5under subdivision 1 may authorize new referendum authority up to the difference between 185.6$300 per adjusted pupil unit and the district's referendum authority. The board may 185.7authorize this levy for up to five years and may subsequently reauthorize that authority 185.8in increments of up to five years.185.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 185.10and later.185.11    Sec. 64. Minnesota Statutes 2013 Supplement, section 126C.40, subdivision 1, is 185.12amended to read:185.13    Subdivision 1. To lease building or land. (a) When an independent or a special 185.14school district or a group of independent or special school districts finds it economically 185.15advantageous to rent or lease a building or land for any instructional purposes or for 185.16school storage or furniture repair, and it determines that the operating capital revenue 185.17authorized under section 
         126C.10, subdivision 13, is insufficient for this purpose, it may 185.18apply to the commissioner for permission to make an additional capital expenditure levy 185.19for this purpose. An application for permission to levy under this subdivision must contain 185.20financial justification for the proposed levy, the terms and conditions of the proposed 185.21lease, and a description of the space to be leased and its proposed use.185.22    (b) The criteria for approval of applications to levy under this subdivision must 185.23include: the reasonableness of the price, the appropriateness of the space to the proposed 185.24activity, the feasibility of transporting pupils to the leased building or land, conformity 185.25of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 185.26the proposed lease to the space needs and the financial condition of the district. The 185.27commissioner must not authorize a levy under this subdivision in an amount greater than 185.28the cost to the district of renting or leasing a building or land for approved purposes. 185.29The proceeds of this levy must not be used for custodial or other maintenance services. 185.30A district may not levy under this subdivision for the purpose of leasing or renting a 185.31district-owned building or site to itself.185.32    (c) For agreements finalized after July 1, 1997, a district may not levy under this 185.33subdivision for the purpose of leasing: (1) a newly constructed building used primarily 185.34for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 185.35building addition or additions used primarily for regular kindergarten, elementary, or 186.1secondary instruction that contains more than 20 percent of the square footage of the 186.2previously existing building.186.3    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 186.4purpose of leasing or renting a district-owned building or site to itself only if the amount 186.5is needed by the district to make payments required by a lease purchase agreement, 186.6installment purchase agreement, or other deferred payments agreement authorized by law, 186.7and the levy meets the requirements of paragraph (c). A levy authorized for a district by 186.8the commissioner under this paragraph may be in the amount needed by the district to 186.9make payments required by a lease purchase agreement, installment purchase agreement, 186.10or other deferred payments agreement authorized by law, provided that any agreement 186.11include a provision giving the school districts the right to terminate the agreement 186.12annually without penalty.186.13    (e) The total levy under this subdivision for a district for any year must not exceed 186.14$162 $212 times the adjusted pupil units for the fiscal year to which the levy is attributable.186.15    (f) For agreements for which a review and comment have been submitted to the 186.16Department of Education after April 1, 1998, the term "instructional purpose" as used in 186.17this subdivision excludes expenditures on stadiums.186.18    (g) The commissioner of education may authorize a school district to exceed the 186.19limit in paragraph (e) if the school district petitions the commissioner for approval. The 186.20commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 186.21for not more than five years if the district meets the following criteria:186.22    (1) the school district has been experiencing pupil enrollment growth in the 186.23preceding five years;186.24    (2) the purpose of the increased levy is in the long-term public interest;186.25    (3) the purpose of the increased levy promotes colocation of government services; and186.26    (4) the purpose of the increased levy is in the long-term interest of the district by 186.27avoiding over construction of school facilities.186.28    (h) A school district that is a member of an intermediate school district may include 186.29in its authority under this section the costs associated with leases of administrative and 186.30classroom space for intermediate school district programs. This authority must not exceed 186.31$46 $65 times the adjusted pupil units of the member districts. This authority is in addition 186.32to any other authority authorized under this section.186.33    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 186.342012 to 2023, a district that is a member of the "Technology and Information Education 186.35Systems" data processing joint board, that finds it economically advantageous to enter into 186.36a lease agreement to finance improvements to a building and land for a group of school 187.1districts or special school districts for staff development purposes, may levy for its portion 187.2of lease costs attributed to the district within the total levy limit in paragraph (e). The total 187.3levy authority under this paragraph shall not exceed $632,000.187.4(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 187.5purpose of leasing administrative space if the district can demonstrate to the satisfaction of 187.6the commissioner that the lease cost for the administrative space is no greater than the 187.7lease cost for instructional space that the district would otherwise lease. The commissioner 187.8must deny this levy authority unless the district passes a resolution stating its intent to 187.9lease instructional space under this section if the commissioner does not grant authority 187.10under this paragraph. The resolution must also certify that the lease cost for administrative 187.11space under this paragraph is no greater than the lease cost for the district's proposed 187.12instructional lease.187.13EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.187.14    Sec. 65. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:187.15126C.44 SAFE SCHOOLS LEVY.187.16    (a) Each district may make a levy on all taxable property located within the district 187.17for the purposes specified in this section. The maximum amount which may be levied for 187.18all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil 187.19units for the school year. The proceeds of the levy must be reserved and used for directly 187.20funding the following purposes or for reimbursing the cities and counties who contract 187.21with the district for the following purposes:187.22    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of 187.23peace officers and sheriffs for liaison in services in the district's schools;187.24    (2) to pay the costs for a drug abuse prevention program as defined in section 187.25609.101, subdivision 3
         , paragraph (e), in the elementary schools;187.26    (3) to pay the costs for a gang resistance education training curriculum in the 187.27district's schools;187.28    (4) to pay the costs for security in the district's schools and on school property;187.29    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 187.30voluntary opt-in suicide prevention tools, and violence prevention measures taken by 187.31the school district;187.32    (6) to pay costs for licensed school counselors, licensed school nurses, licensed 187.33school social workers, licensed school psychologists, and licensed alcohol and chemical 187.34dependency counselors to help provide early responses to problems;188.1    (7) to pay for facility security enhancements including laminated glass, public 188.2announcement systems, emergency communications devices, and equipment and facility 188.3modifications related to violence prevention and facility security;188.4    (8) to pay for costs associated with improving the school climate; or188.5    (9) to pay costs for colocating and collaborating with mental health professionals 188.6who are not district employees or contractors.188.7    (b) For expenditures under paragraph (a), clause (1), the district must initially 188.8attempt to contract for services to be provided by peace officers or sheriffs with the 188.9police department of each city or the sheriff's department of the county within the district 188.10containing the school receiving the services. If a local police department or a county 188.11sheriff's department does not wish to provide the necessary services, the district may 188.12contract for these services with any other police or sheriff's department located entirely or 188.13partially within the school district's boundaries.188.14    (c) A school district that is a member of an intermediate school district may 188.15include in its authority under this section the costs associated with safe schools activities 188.16authorized under paragraph (a) for intermediate school district programs. This authority 188.17must not exceed $10 $15  times the adjusted marginal cost pupil units of the member 188.18districts. This authority is in addition to any other authority authorized under this section. 188.19Revenue raised under this paragraph must be transferred to the intermediate school district.188.20EFFECTIVE DATE.This section is effective for taxes payable in fiscal year 2015 188.21and later.188.22    Sec. 66. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is 188.23amended to read:188.24    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies 188.25pursuant to subdivision 1 must be made prior to the reductions in clause (2).188.26(2) Notwithstanding any other law to the contrary, districts that have revenue 188.27pursuant to sections 
         298.018; 
         298.225; 
         298.24 to 
         298.28, except an amount distributed 188.28under sections 
         298.26; 
         298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 
         298.34 188.29to 
         298.39; 
         298.391 to 
         298.396; 
         298.405; 
         477A.15; and any law imposing a tax upon 188.30severed mineral values must reduce the levies authorized by this chapter and chapters 188.31120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the 188.32previous year's revenue specified under this clause and the amount attributable to the same 188.33production year distributed to the cities and townships within the school district under 188.34section 
         298.28, subdivision 2, paragraph (c).189.1(3) The amount of any voter approved referendum, facilities down payment, and 189.2debt levies shall not be reduced by more than 50 percent under this subdivision, except that 189.3payments under sections 298.28, subdivision 7a, and 298.292, subdivision 2, clause (6), 189.4may reduce the debt service levy by more than 50 percent. In administering this paragraph, 189.5the commissioner shall first reduce the nonvoter approved levies of a district; then, if any 189.6payments, severed mineral value tax revenue or recognized revenue under paragraph (2) 189.7remains, the commissioner shall reduce any voter approved referendum levies authorized 189.8under section 
         126C.17; then, if any payments, severed mineral value tax revenue or 189.9recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter 189.10approved facilities down payment levies authorized under section 
         123B.63 and then, if 189.11any payments, severed mineral value tax revenue or recognized revenue under paragraph 189.12(2) remains, the commissioner shall reduce any voter approved debt levies.189.13(4) Before computing the reduction pursuant to this subdivision of the health and 189.14safety levy authorized by sections 
         123B.57 and 
         126C.40, subdivision 5, the commissioner 189.15shall ascertain from each affected school district the amount it proposes to levy under 189.16each section or subdivision. The reduction shall be computed on the basis of the amount 189.17so ascertained.189.18(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 189.19limitation in paragraph (3), an amount equal to the excess must be distributed from the 189.20school district's distribution under sections 
         298.225, 
         298.28, and 
         477A.15 in the following 189.21year to the cities and townships within the school district in the proportion that their 189.22taxable net tax capacity within the school district bears to the taxable net tax capacity of 189.23the school district for property taxes payable in the year prior to distribution. No city or 189.24township shall receive a distribution greater than its levy for taxes payable in the year prior 189.25to distribution. The commissioner of revenue shall certify the distributions of cities and 189.26towns under this paragraph to the county auditor by September 30 of the year preceding 189.27distribution. The county auditor shall reduce the proposed and final levies of cities and 189.28towns receiving distributions by the amount of their distribution. Distributions to the cities 189.29and towns shall be made at the times provided under section 
         298.27.189.30    Sec. 67. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:189.31    Subd. 2. Definitions. (a) "Other district receipts" means payments by county 189.32treasurers pursuant to section 
         276.10, apportionments from the school endowment fund 189.33pursuant to section 
         127A.33, apportionments by the county auditor pursuant to section 189.34127A.34, subdivision 2
         , and payments to school districts by the commissioner of revenue 189.35pursuant to chapter 298.190.1(b) "Cumulative amount guaranteed" means the product of190.2(1) the cumulative disbursement percentage shown in subdivision 3; times190.3(2) the sum of190.4(i) the current year aid payment percentage of the estimated aid and credit 190.5entitlements paid according to subdivision 13; plus190.6(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus190.7(iii) the other district receipts.190.8(c) "Payment date" means the date on which state payments to districts are made 190.9by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 190.10or a weekday which is a legal holiday, the payment shall be made on the immediately 190.11preceding business day. The commissioner may make payments on dates other than 190.12those listed in subdivision 3, but only for portions of payments from any preceding 190.13payment dates which could not be processed by the electronic funds transfer method due 190.14to documented extenuating circumstances.190.15(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 190.16fiscal year 2011, and 60 in fiscal years 2012 and later 90.190.17    Sec. 68. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is 190.18amended to read:190.19    Subd. 7. Alternative attendance programs. (a) The general education aid and 190.20special education aid for districts must be adjusted for each pupil attending a nonresident 190.21district under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.08, and 
         124D.68. The 190.22adjustments must be made according to this subdivision.190.23    (b) For purposes of this subdivision, the "unreimbursed cost of providing special 190.24education and services" means the difference between: (1) the actual cost of providing 190.25special instruction and services, including special transportation and unreimbursed 190.26building lease and debt service costs for facilities used primarily for special education, for 190.27a pupil with a disability, as defined in section 
         125A.02, or a pupil, as defined in section 190.28125A.51
         , who is enrolled in a program listed in this subdivision, minus (2) if the pupil 190.29receives special instruction and services outside the regular classroom for more than 190.3060 percent of the school day, the amount of general education revenue and referendum 190.31equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable 190.32to that pupil for the portion of time the pupil receives special instruction and services 190.33outside of the regular classroom, excluding portions attributable to district and school 190.34administration, district support services, operations and maintenance, capital expenditures, 190.35and pupil transportation, minus (3) special education aid under section 
         125A.76 191.1attributable to that pupil, that is received by the district providing special instruction and 191.2services. For purposes of this paragraph, general education revenue and referendum 191.3equalization aid attributable to a pupil must be calculated using the serving district's 191.4average general education revenue and referendum equalization aid per adjusted pupil unit.191.5(c) For fiscal year 2015 and later, special education aid paid to a resident district 191.6must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 191.7special education and services.191.8(d) Notwithstanding paragraph (c), special education aid paid to a resident district 191.9must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 191.10education and services provided to students at an intermediate district, cooperative, or 191.11charter school where the percent of students eligible for special education services is at 191.12least 70 percent of the charter school's total enrollment.191.13    (e) Special education aid paid to the district or cooperative providing special 191.14instruction and services for the pupil, or to the fiscal agent district for a cooperative, 191.15must be increased by the amount of the reduction in the aid paid to the resident district 191.16under paragraphs (c) and (d). If the resident district's special education aid is insufficient 191.17to make the full adjustment, the remaining adjustment shall be made to other state aids 191.18due to the district.191.19    (f) An area learning center operated by a service cooperative, intermediate district, 191.20education district, or a joint powers cooperative may elect through the action of the 191.21constituent boards to charge the resident district tuition for pupils rather than to have 191.22the general education revenue paid to a fiscal agent school district. Except as provided 191.23in paragraph (e), the district of residence must pay tuition equal to at least between 90 191.24and 100 percent of the district average general education revenue per pupil unit minus 191.25an amount equal to the product of the formula allowance according to section 
         126C.10, 191.26subdivision 2
         , times .0466, calculated without compensatory revenue, local optional 191.27revenue, and transportation sparsity revenue, times the number of pupil units for pupils 191.28attending the area learning center.191.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 191.30and later.191.31    Sec. 69. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:191.32    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 
         270C.86, 191.33375.192
         , or otherwise, the net tax capacity or referendum market value of any district for 191.34any taxable year is changed after the taxes for that year have been spread by the county 191.35auditor and the local tax rate as determined by the county auditor based upon the original 192.1net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 192.2prior to February 1 of each year, certify to the commissioner of education the amount of 192.3any resulting net revenue loss that accrued to the district during the preceding year. Each 192.4year, the commissioner shall pay an abatement adjustment to the district in an amount 192.5calculated according to the provisions of this subdivision. This amount shall be deducted 192.6from the amount of the levy authorized by section 
         126C.46. The amount of the abatement 192.7adjustment must be the product of:192.8    (1) the net revenue loss as certified by the county auditor, times192.9    (2) the ratio of:192.10    (i) the sum of the amounts of the district's certified levy in the third preceding year 192.11according to the following:192.12    (A) section 
         123B.57, if the district received health and safety aid according to that 192.13section for the second preceding year;192.14    (B) section 
         124D.20, if the district received aid for community education programs 192.15according to that section for the second preceding year;192.16    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 192.17education aid according to section 
         124D.135 for the second preceding year;192.18    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 192.19aid according to that section for the second preceding year;192.20    (E) section 
         126C.10, subdivision 13a, if the district received operating capital aid 192.21according to section 
         126C.10, subdivision 13b, in the second preceding year;192.22    (F) section 
         126C.10, subdivision 29, if the district received equity aid according to 192.23section 
         126C.10, subdivision 30, in the second preceding year;192.24    (G) section 
         126C.10, subdivision 32, if the district received transition aid according 192.25to section 
         126C.10, subdivision 33, in the second preceding year;192.26    (H) section 
         123B.53, subdivision 5, if the district received debt service equalization 192.27aid according to section 
         123B.53, subdivision 6, in the second preceding year;192.28    (I) section 123B.535, subdivision 4, if the district received natural disaster debt 192.29service equalization aid according to section 123B.535, subdivision 5, in the second 192.30preceding year;192.31    (I) (J) section 
         124D.22, subdivision 3, if the district received school-age care aid 192.32according to section 
         124D.22, subdivision 4, in the second preceding year;192.33    (J) (K) section 
         123B.591, subdivision 3, if the district received deferred maintenance 192.34aid according to section 
         123B.591, subdivision 4, in the second preceding year; and193.1    (K) (L) section 
         126C.10, subdivision 35, if the district received alternative teacher 193.2compensation equalization aid according to section 
         126C.10, subdivision 36, paragraph 193.3(a), in the second preceding year; to193.4    (ii) the total amount of the district's certified levy in the third preceding December, 193.5plus or minus auditor's adjustments.193.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 193.7and later.193.8    Sec. 70. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:193.9    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a 193.10district pursuant to sections 
         469.176, subdivision 2, and 
         469.177, subdivision 9, or upon 193.11decertification of a tax increment district, the school district's aid and levy limitations 193.12must be adjusted for the fiscal year in which the excess tax increment is paid under the 193.13provisions of this subdivision.193.14    (b) An amount must be subtracted from the district's aid for the current fiscal year 193.15equal to the product of:193.16    (1) the amount of the payment of excess tax increment to the district, times193.17    (2) the ratio of:193.18    (i) the sum of the amounts of the district's certified levy for the fiscal year in which 193.19the excess tax increment is paid according to the following:193.20    (A) section 
         123B.57, if the district received health and safety aid according to that 193.21section for the second preceding year;193.22    (B) section 
         124D.20, if the district received aid for community education programs 193.23according to that section for the second preceding year;193.24    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 193.25education aid according to section 
         124D.135 for the second preceding year;193.26    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 193.27aid according to that section for the second preceding year;193.28    (E) section 
         126C.10, subdivision 13a, if the district received operating capital aid 193.29according to section 
         126C.10, subdivision 13b, in the second preceding year;193.30    (F) section 
         126C.10, subdivision 29, if the district received equity aid according to 193.31section 
         126C.10, subdivision 30, in the second preceding year;193.32    (G) section 
         126C.10, subdivision 32, if the district received transition aid according 193.33to section 
         126C.10, subdivision 33, in the second preceding year;193.34    (H) section 
         123B.53, subdivision 5, if the district received debt service equalization 193.35aid according to section 
         123B.53, subdivision 6, in the second preceding year;194.1    (I) section 123B.535, subdivision 4, if the district received natural disaster debt 194.2service equalization aid according to section 123B.535, subdivision 5, in the second 194.3preceding year;194.4    (I) (J) section 
         124D.22, subdivision 3, if the district received school-age care aid 194.5according to section 
         124D.22, subdivision 4, in the second preceding year;194.6    (J) (K) section 
         123B.591, subdivision 3, if the district received deferred maintenance 194.7aid according to section 
         123B.591, subdivision 4, in the second preceding year; and194.8    (K) (L) section 
         126C.10, subdivision 35, if the district received alternative teacher 194.9compensation equalization aid according to section 
         126C.10, subdivision 36, paragraph 194.10(a), in the second preceding year; to194.11    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus 194.12auditor's adjustments.194.13    (c) An amount must be subtracted from the school district's levy limitation for the 194.14next levy certified equal to the difference between:194.15    (1) the amount of the distribution of excess increment; and194.16    (2) the amount subtracted from aid pursuant to clause (a).194.17    If the aid and levy reductions required by this subdivision cannot be made to the aid 194.18for the fiscal year specified or to the levy specified, the reductions must be made from 194.19aid for subsequent fiscal years, and from subsequent levies. The school district must use 194.20the payment of excess tax increment to replace the aid and levy revenue reduced under 194.21this subdivision.194.22    (d) This subdivision applies only to the total amount of excess increments received 194.23by a district for a calendar year that exceeds $25,000.194.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016 194.25and later.194.26    Sec. 71. Minnesota Statutes 2013 Supplement, section 127A.70, subdivision 2, is 194.27amended to read:194.28    Subd. 2. Powers and duties; report. (a) The partnership shall develop 194.29recommendations to the governor and the legislature designed to maximize the achievement 194.30of all P-20 students while promoting the efficient use of state resources, thereby helping 194.31the state realize the maximum value for its investment. These recommendations may 194.32include, but are not limited to, strategies, policies, or other actions focused on:194.33    (1) improving the quality of and access to education at all points from preschool 194.34through graduate education;195.1    (2) improving preparation for, and transitions to, postsecondary education and 195.2work; and195.3    (3) ensuring educator quality by creating rigorous standards for teacher recruitment, 195.4teacher preparation, induction and mentoring of beginning teachers, and continuous 195.5professional development for career teachers; and195.6    (4) realigning the governance and administrative structures of early education, 195.7kindergarten through grade 12, and postsecondary systems in Minnesota.195.8    (b) Under the direction of the P-20 Education Partnership Statewide Longitudinal 195.9Education Data System Governance Committee, the Office of Higher Education and the 195.10Departments of Education and Employment and Economic Development shall improve 195.11and expand the Statewide Longitudinal Education Data System (SLEDS) to provide 195.12policymakers, education and workforce leaders, researchers, and members of the public 195.13with data, research, and reports to:195.14(1) expand reporting on students' educational outcomes;195.15(2) evaluate the effectiveness of educational and workforce programs; and195.16(3) evaluate the relationship between education and workforce outcomes.195.17To the extent possible under federal and state law, research and reports should be 195.18accessible to the public on the Internet, and disaggregated by demographic characteristics, 195.19organization or organization characteristics, and geography.195.20It is the intent of the legislature that the Statewide Longitudinal Education Data 195.21System inform public policy and decision-making. The SLEDS governance committee, 195.22with assistance from staff of the Office of Higher Education, the Department of Education, 195.23and the Department of Employment and Economic Development, shall respond to 195.24legislative committee and agency requests on topics utilizing data made available through 195.25the Statewide Longitudinal Education Data System as resources permit. Any analysis of 195.26or report on the data must contain only summary data.195.27    (c) By January 15 of each year, the partnership shall submit a report to the governor 195.28and to the chairs and ranking minority members of the legislative committees and 195.29divisions with jurisdiction over P-20 education policy and finance that summarizes the 195.30partnership's progress in meeting its goals and identifies the need for any draft legislation 195.31when necessary to further the goals of the partnership to maximize student achievement 195.32while promoting efficient use of resources.195.33    Sec. 72. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:195.34    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for 195.35the care, management, and control of the Perpich Center for Arts Education and any other 196.1school authorized in this chapter, and all its their real and personal property. The powers 196.2shall include, but are not limited to, those listed in this subdivision.196.3(b) The board may employ and discharge necessary employees, and contract for 196.4other services to ensure the efficient operation of the Center for Arts Education and any 196.5other school authorized in this chapter.196.6(c) The board may receive and award grants. The board may establish a charitable 196.7foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for 196.8educational purposes and hold, manage, invest, and dispose of them and the proceeds 196.9and income of them according to the terms and conditions of the gift, grant, bequest, or 196.10devise and its acceptance. The board must adopt internal procedures to administer and 196.11monitor aids and grants.196.12(d) The board may establish or coordinate evening, continuing education, extension, 196.13and summer programs for teachers and pupils.196.14(e) The board may identify pupils who have artistic talent, either demonstrated or 196.15potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more 196.16than one art form.196.17(f) The board must educate pupils with artistic talent by providing:196.18(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th 196.19grades. The total number of pupils accepted under this clause and clause (2) shall not 196.20exceed 310;196.21(2) additional instruction to pupils for a 13th grade. Pupils eligible for this 196.22instruction are those enrolled in 12th grade who need extra instruction and who apply 196.23to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes 196.24established by the board;196.25(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;196.26(4) summer arts institutes for pupils in grades 9 to 12;196.27(5) artist mentor and extension programs in regional sites; and196.28(6) teacher education programs for indirect curriculum delivery.196.29(g) The board may determine the location for the Perpich Center for Arts Education 196.30and any additional facilities related to the center, including the authority to lease a 196.31temporary facility.196.32(h) The board must plan for the enrollment of pupils on an equal basis from each 196.33congressional district.196.34(i) The board may establish task forces as needed to advise the board on policies and 196.35issues. The task forces expire as provided in section 
         15.059, subdivision 6.196.36(j) The board may request the commissioner of education for assistance and services.197.1(k) The board may enter into contracts with other public and private agencies 197.2and institutions for residential and building maintenance services if it determines that 197.3these services could be provided more efficiently and less expensively by a contractor 197.4than by the board itself. The board may also enter into contracts with public or private 197.5agencies and institutions, school districts or combinations of school districts, or service 197.6cooperatives to provide supplemental educational instruction and services.197.7(l) The board may provide or contract for services and programs by and for the 197.8Center for Arts Education, including a store, operating in connection with the center; 197.9theatrical events; and other programs and services that, in the determination of the board, 197.10serve the purposes of the center.197.11(m) The board may provide for transportation of pupils to and from the Center for 197.12Arts Education for all or part of the school year, as the board considers advisable and 197.13subject to its rules. Notwithstanding any other law to the contrary, the board may charge a 197.14reasonable fee for transportation of pupils. Every driver providing transportation of pupils 197.15under this paragraph must possess all qualifications required by the commissioner of 197.16education. The board may contract for furnishing authorized transportation under rules 197.17established by the commissioner of education and may purchase and furnish gasoline to a 197.18contract carrier for use in the performance of a contract with the board for transportation 197.19of pupils to and from the Center for Arts Education. When transportation is provided, 197.20scheduling of routes, establishment of the location of bus stops, the manner and method of 197.21transportation, the control and discipline of pupils, and any other related matter is within 197.22the sole discretion, control, and management of the board.197.23(n) The board may provide room and board for its pupils. If the board provides room 197.24and board, it shall charge a reasonable fee for the room and board. The fee is not subject 197.25to chapter 14 and is not a prohibited fee according to sections 
         123B.34 to 
         123B.39.197.26(o) The board may establish and set fees for services and programs. If the board sets 197.27fees not authorized or prohibited by the Minnesota public school fee law, it may do so 197.28without complying with the requirements of section 
         123B.38.197.29(p) The board may apply for all competitive grants administered by agencies of the 197.30state and other government or nongovernment sources.197.31EFFECTIVE DATE.This section is effective the day following final enactment.197.32    Sec. 73. Minnesota Statutes 2012, section 129C.10, is amended by adding a 197.33subdivision to read:197.34    Subd. 5a.Interdistrict voluntary integration magnet program.Notwithstanding 197.35Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate 198.1an interdistrict integration magnet program according to section 129C.30. For fiscal year 198.22016 and later, the board must have an approved achievement and integration plan and 198.3budget under section 124D.861.198.4EFFECTIVE DATE.This section is effective the day following final enactment.198.5    Sec. 74. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.198.6    Subdivision 1.Definitions.(a) The following terms having the meanings given 198.7them for this chapter.198.8(b) "Board" means the board of directors of the Perpich Center for Arts Education.198.9(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during 198.10the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration 198.11District.198.12    Subd. 2.Board to operate the Crosswinds school.The board may operate the 198.13Crosswinds school with the powers and duties granted to it under this chapter. A student 198.14may apply to the Crosswinds school under section 124D.03 and the Crosswinds school 198.15may accept students under that section.198.16    Subd. 3.General education funding.(a) General education revenue must be paid 198.17to the Crosswinds school as though it were a district. The general education revenue for 198.18each adjusted pupil unit is the state average general education revenue per pupil unit, plus 198.19the referendum equalization aid allowance in the pupil's district of residence, minus an 198.20amount equal to the product of the formula allowance according to section 126C.10, 198.21subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue, 198.22extended time revenue, pension adjustment revenue, transition revenue, and transportation 198.23sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue, 198.24pension adjustment revenue, and transition revenue as though the school were a school 198.25district. The general education revenue for each extended time pupil unit equals $4,794.198.26    (b) General education revenue under paragraph (a) must be reduced by an amount 198.27equal to 75 percent of the school's equity revenue for that year.198.28    Subd. 4.Special education funding.Special education aid must be paid to the 198.29Crosswinds school according to sections 125A.76 and 125A.79, as though it were a 198.30school district. The special education aid paid to the Crosswinds school shall be adjusted 198.31as follows:198.32(1) if the Crosswinds school does not receive general education revenue on behalf of 198.33the student according to subdivision 3, the aid shall be adjusted as provided in section 198.34125A.11; or199.1(2) if the Crosswinds school receives general education revenue on behalf of the 199.2student according to subdivision 3, the aid shall be adjusted as provided in section 199.3127A.47, subdivision 7, paragraphs (b) to (d).199.4    Subd. 5.Pupil transportation. For fiscal year 2015 only, a member district of Joint 199.5Powers District No. 6067, East Metro Integration District must transport pupils enrolled at 199.6the Crosswinds school in the same manner as they were transported in fiscal year 2014. 199.7Pupil transportation expenses under this section are reimbursable under section 124D.87.199.8    Subd. 6.Achievement and integration aid.For fiscal year 2016 and later, the 199.9Crosswinds school is eligible for achievement and integration aid under section 124D.862 199.10as if it were a school district.199.11    Subd. 7.Other aids, grants, revenue.(a) The Crosswinds school is eligible to 199.12receive other aids, grants, and revenue according to chapters 120A to 129C as though it 199.13were a district.199.14(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a 199.15grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue 199.16replaces levy revenue that is not general education revenue, except as otherwise provided 199.17in this section.199.18(c) Federal aid received by the state must be paid to the school, if it qualifies for 199.19the aid as though it were a school district.199.20(d) In the year-end report to the commissioner of education, the Crosswinds school 199.21shall report the total amount of funds received from grants and other outside sources.199.22    Subd. 8.Year-round programming.The Crosswinds school may operate as a 199.23flexible learning year program under sections 124D.12 to 124D.127.199.24    Subd. 9.Data requirements.The commissioner of education shall require the 199.25Crosswinds school to follow the budget and accounting procedures required for school 199.26districts and the Crosswinds school shall report all data to the Department of Education in 199.27the form and manner required by the commissioner.199.28    Sec. 75. Minnesota Statutes 2012, section 298.28, subdivision 7a, as added by Laws 199.292014, chapter 150, article 6, section 13, is amended to read:199.30    Subd. 7a. Iron Range school consolidation and cooperatively operated school 199.31account. The following amounts must be allocated to the Iron Range Resources and 199.32Rehabilitation Board to be deposited in the Iron Range school consolidation and 199.33cooperatively operated school account that is hereby created:199.34(1) ten cents per taxable ton of the tax imposed under section 
         298.24;199.35(2) the amount as determined under section 
         298.17, paragraph (b), clause (3); and200.1(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the 200.2increased tax proceeds attributable to the increase in the implicit price deflator as provided 200.3in section 
         298.24, subdivision 1.200.4Expenditures from this account shall be made only to provide disbursements to 200.5assist school districts with the payment of bonds that were issued for qualified school 200.6projects, or for any other disbursement as approved by the Iron Range Resources and 200.7Rehabilitation Board. For purposes of this section, "qualified school projects" means 200.8school projects within the taconite assistance area as defined in section 
         273.1341, that 200.9were (1) approved, by referendum, after December 7, 2009; and (2) approved by the 200.10commissioner of education pursuant to section 
         123B.71.200.11Beginning in fiscal year 2019, the disbursement to school districts for payments for 200.12bonds issued under section 123A.482, subdivision 9, must be increased each year to 200.13offset any reduction in debt service equalization aid that the school district qualifies for in 200.14that year, under section 123B.53, subdivision 6, compared with the amount the school 200.15district qualified for in fiscal year 2018.200.16No expenditure under this section shall be made unless approved by seven members 200.17of the Iron Range Resources and Rehabilitation Board.200.18EFFECTIVE DATE.This section is effective for production year 2014 and 200.19thereafter.200.20    Sec. 76. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:200.21    Subd. 2. General education aid. For general education aid under Minnesota 200.22Statutes, section 
         126C.13, subdivision 4:

200.23200.24$6,051,766,0006,851,419,000.....2014200.25200.26$6,370,640,000 6,440,407,000.....2015

200.27The 2014 appropriation includes $781,842,000 $780,156,000 for 2013 and 200.28$5,269,924,000 $6,071,263,000 for 2014.200.29The 2015 appropriation includes $823,040,000 $589,095,000 for 2014 and 200.30$5,547,600,000 $5,851,312,000 for 2015.200.31    Sec. 77. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to 200.32read:200.33    Subd. 15. Early childhood literacy programs. For early childhood literacy 200.34programs under Minnesota Statutes, section 
         119A.50, subdivision 3:

201.1$4,125,000.....2014201.2201.3$4,125,0006,125,000.....2015

201.4Up to $4,125,000 eachin the first year and $6,125,000 in the second year is for 201.5leveraging federal and private funding to support AmeriCorps members serving in the 201.6Minnesota Reading Corps program established by ServeMinnesota, including costs 201.7associated with the training and teaching of early literacy skills to children age three to 201.8grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections 201.9124D.38, subdivision 2
         , and 
         124D.42, subdivision 6. Up to $2,000,000 in fiscal year 201.102015 must be used to support priority and focus schools as defined by the Department 201.11of Education and to expand kindergarten programming.201.12Any balance in the first year does not cancel but is available in the second year.201.13The base for fiscal year 2016 and later is $4,125,000.201.14    Sec. 78. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:201.15    Subd. 8. Special education paperwork cost savings. For the contract to effect201.16 special education paperwork cost savings under Minnesota Statutes, section 125A.08, 201.17subdivision 2, paragraph (c):

201.18$1,763,000.....2014

201.19For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not 201.20expended.201.21EFFECTIVE DATE.This section is effective the day following final enactment.201.22    Sec. 79. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:201.23    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 201.24section 
         124D.111, and Code of Federal Regulations, title 7, section 
         210.17:

201.25$13,032,000.....2014201.26201.27$13,293,00016,185,000.....2015

201.28    Sec. 80. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:201.29    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota 201.30Statutes, section 
         124D.1158:

202.1202.2$5,711,0005,308,000.....2014202.3202.4$6,022,0006,176,000.....2015

202.5    Sec. 81. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:202.6    Subd. 2. School readiness. For revenue for school readiness programs under 202.7Minnesota Statutes, sections 
         124D.15 and 
         124D.16:

202.8202.9$10,095,00010,458,000.....2014202.10202.11$10,159,000 13,529,000.....2015

202.12The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000 202.13 for 2014.202.14The 2015 appropriation includes $1,372,000 $1,009,000  for 2014 and $8,787,000202.15 $12,520,000 for 2015.202.16    Sec. 82. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:202.17    Subd. 3. Early childhood family education aid. For early childhood family 202.18education aid under Minnesota Statutes, section 
         124D.135:

202.19202.20$22,078,00022,797,000.....2014202.21202.22$22,425,000 30,905,000.....2015

202.23    The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000202.24 for 2014.202.25    The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000202.26 $28,707,000 for 2015.202.27    Sec. 83. Laws 2013, chapter 116, article 8, section 5, subdivision 8, is amended to read:202.28    Subd. 8. Early childhood education scholarships. For transfer to the Office of 202.29Early Learning for early learning scholarships under Minnesota Statutes, section 
         124D.165:

202.30$23,000,000.....2014202.31202.32$23,000,000 31,800,000.....2015

202.33Up to $950,000 each year is for administration of this program.202.34Any balance in the first year does not cancel but is available in the second year.202.35The base for fiscal year 2016 and later is $29,650,000.203.1EFFECTIVE DATE.This section is effective July 1, 2014.203.2    Sec. 84. Laws 2013, chapter 116, article 8, section 5, subdivision 9, is amended to read:203.3    Subd. 9. Parent-child home program. For a grant to the parent-child home 203.4program:

203.5$250,000.....2014203.6$250,000 350,000.....2015

203.7The grant must be used for an evidence-based and research-validated early childhood 203.8literacy and school readiness program for children ages 16 months to four years at its 203.9existing suburban program location. The program must expand to one additional urban 203.10and one additional rural program location for fiscal years 2014 and 2015. The base for 203.11fiscal year 2016 and later is $250,000.203.12    Sec. 85. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:203.13    Subd. 14. Adult basic education aid. For adult basic education aid under 203.14Minnesota Statutes, section 
         124D.531:

203.15203.16$47,005,00048,776,000.....2014203.17203.18$48,145,00048,415,000.....2015

203.19The 2014 appropriation includes $6,284,000 $6,278,000 for 2013 and $40,721,000203.20 $42,498,000 for 2014.203.21The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000203.22 $43,693,000 for 2015.203.23    Sec. 86. Laws 2013, chapter 116, article 9, section 2, is amended to read:203.24    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.203.25The sums indicated in this section are appropriated from the general fund to the 203.26Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

203.27$11,749,000.....2014203.28203.29$11,664,00011,964,000.....2015

203.30$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 203.31kitchen facilities. Any balance in the first year does not cancel but is available in the 203.32second year.203.33    Sec. 87. FISCAL YEAR 2015 LEASE LEVY AUTHORITY.204.1(a) Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, paragraph 204.2(e), for taxes payable in 2015, a district may apply to the commissioner in a manner 204.3consistent with Minnesota Statutes, section 126C.40, subdivision 1, paragraph (a), to levy 204.4an amount not to exceed $50 times the adjusted pupil units for fiscal year 2015.204.5(b) Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, paragraph 204.6(h), for taxes payable in 2015, a school district that is a member of an intermediate school 204.7district may include in its authority under this section the costs associated with leases of 204.8administrative and classroom space for intermediate school district programs. Authority 204.9under this paragraph must not exceed $19 times the adjusted pupil units of the member 204.10districts and is in addition to any other authority authorized under this section.204.11(c) A levy made under this section must be used for purposes consistent with 204.12Minnesota Statutes, section 126C.40, subdivision 1, and be recognized as revenue in 204.13fiscal year 2015.204.14    Sec. 88. HARAMBEE COMMUNITY SCHOOL TRANSITION.204.15    Subdivision 1.Student enrollment.A student enrolled in the Harambee community 204.16school during the 2013-2014 school year may continue to enroll in the Harambee 204.17community school in any subsequent year. For the 2014-2015 school year and later, other 204.18students may apply for enrollment under Minnesota Statutes, section 124D.03.204.19    Subd. 2.Compensatory revenue, literacy aid, and alternative compensation 204.20revenue.For the 2014-2015 school year only, the Department of Education must calculate 204.21compensatory revenue, literacy aid, and alternative compensation revenue for the 204.22Harambee community school based on the fall 2013 enrollment counts.204.23    Subd. 3.Year-round programming.Harambee community school may operate as 204.24a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.204.25    Subd. 4.Pupil transportation.The board may transport pupils enrolled in the 204.262013-2014 school year to and from the Harambee community school in succeeding school 204.27years regardless of the students' districts of residence. Pupil transportation expenses under 204.28this section are reimbursable under Minnesota Statutes, section 124D.87.204.29EFFECTIVE DATE.This section is effective the day following final enactment.204.30    Sec. 89. INFORMATION TECHNOLOGY CERTIFICATION PARTNERSHIPS; 204.31REQUEST FOR PROPOSAL; PROGRAM REQUIREMENTS.204.32(a) The commissioner shall contract with at least one provider to provide information 204.33technology education opportunities to students in grades 9 through 12. This partnership 205.1must allow participating students and teachers to secure broad-based information 205.2technology certifications.205.3(b) The commissioner shall issue a competitive request for proposals, award the 205.4contract, and make available, through participating school districts, charter schools, and 205.5intermediate districts, instruction on information technology skills and competencies 205.6that are essential for career and college readiness. The request for proposals shall at 205.7least include the following components:205.8(1) a research-based curriculum;205.9(2) online access to the curriculum;205.10(3) instructional software for classroom and student use;205.11(4) certification of skills and competencies in a broad array of information 205.12technology-related skill areas;205.13(5) professional development for teachers; and205.14(6) deployment and program support, including, but not limited to, integration with 205.15academic standards under Minnesota Statutes, section 120B.021 or 120B.022.205.16(c) If the contract awarded under this section does not allow for the service to be 205.17delivered in every eligible school, the commissioner shall make the contracted service 205.18available on a first-come, first-served basis to an equal number of schools in each of the 205.19regions represented by a regional development commission under Minnesota Statutes, 205.20section 462.387, and in the region consisting of counties not represented by a regional 205.21development commission. If participating schools in any region do not exhaust the services 205.22allocated to that region, the commissioner may reallocate unused services to other regions.205.23    Sec. 90. LEASE LEVY; SATELLITE TRANSPORTATION HUB FOR 205.24ROSEMOUNT-APPLE VALLEY-EAGAN SCHOOL DISTRICT.205.25Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent 205.26School District No. 196, Rosemount-Apple Valley-Eagan, may lease a satellite 205.27transportation hub under Minnesota Statutes, section 126C.40, subdivision 1, if the district 205.28can demonstrate to the satisfaction of the commissioner of education that the satellite 205.29transportation hub will result in a significant financial savings. Levy authority under 205.30this section shall not exceed the total levy authority under Minnesota Statutes, section 205.31126C.40, subdivision 1, paragraph (e).205.32EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.205.33    Sec. 91. LEGISLATIVE REPORT ON K-12 STUDENTS' EXPERIENCE WITH 205.34PHYSICAL EDUCATION.206.1(a) The commissioner of education must prepare and submit to the education policy 206.2and finance committees of the legislature by January 15, 2015, a written report on K-12 206.3students' experience with physical education, consistent with this section. Among other 206.4physical education-related issues, the report must include:206.5(1) the number of minutes per day and frequency per week students in each grade 206.6level, kindergarten through grade 8, receive physical education, identify the requirements in 206.7high school physical education in terms of semesters, trimesters, quarters, or school years;206.8(2) the measures and data used to assess students' level of fitness and the uses made 206.9of the fitness data;206.10(3) the educational preparation of physical education instructors and the proportion 206.11of time certified physical education teachers provide physical education instruction;206.12(4) the amount of time and number of days per week each grade level, kindergarten 206.13through grade 6, receives recess;206.14(5) whether high school students are allowed to substitute other activities for 206.15required physical education, and, if so, which activities qualify;206.16(6) identify the number or percentage of high school students who earn required 206.17physical education credits online;206.18(7) whether schools offer before or after school physical activities opportunities in 206.19each grade level, kindergarten through grade 8, and in high school, and, if so, what are the 206.20opportunities; and206.21(8) the extent to which schools coordinate with developmentally adaptive physical 206.22education specialists when needed.206.23(b) Any costs of preparing this report must be paid for out of the Department of 206.24Education's current operating budget.206.25EFFECTIVE DATE.This section is effective the day following final enactment.206.26    Sec. 92. RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.206.27Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph 206.28(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions 206.29of Minnesota Statutes, section 124D.041 and the agreement shall not apply to Independent 206.30School District No. 402, Hendricks.206.31EFFECTIVE DATE.This section is effective for the 2014-2015 school year and 206.32later.206.33    Sec. 93. TEACHER DEVELOPMENT AND EVALUATION REVENUE.207.1    (a) For fiscal year 2015 only, teacher development and evaluation revenue for a school 207.2district, intermediate school district, or charter school that does not have an alternative 207.3professional pay system agreement under Minnesota Statutes, section 122A.414, 207.4subdivision 2, equals $302 times the number of full-time equivalent teachers employed on 207.5October 1 of the previous school year. Revenue under this section must be reserved for 207.6teacher development and evaluation activities consistent with Minnesota Statutes, section 207.7122A.40, subdivision 8, or Minnesota Statutes, section 122A.41, subdivision 5. For the 207.8purposes of this section, "teacher" has the meaning given it in Minnesota Statutes, section 207.9122A.40, subdivision 1, or Minnesota Statutes, section 122A.41, subdivision 1.207.10    (b) Notwithstanding paragraph (a), the state total teacher development and evaluation 207.11revenue entitlement must not exceed $10,000,000 for fiscal year 2015. The commissioner 207.12must limit the amount of revenue under this section so as not to exceed this limit.207.13    Sec. 94. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.207.14    Subdivision 1.Student enrollment.Any student enrolled in the Crosswinds school 207.15during the 2013-2014 school year may continue to enroll in the Crosswinds school in 207.16any subsequent year. For the 2014-2015 school year and later, a student may apply for 207.17enrollment to the school under Minnesota Statutes, section 124D.03.207.18    Subd. 2.Compensatory revenue, literacy aid, and alternative compensation 207.19revenue.For the 2014-2015 school year only, the Department of Education must calculate 207.20compensatory revenue, literacy aid, and alternative compensation revenue for the 207.21Crosswinds school based on the October 1, 2013, enrollment counts at that site.207.22    Subd. 3.Title 1 funding.To the extent possible, the Department of Education 207.23must qualify the Crosswinds school for Title 1, and if applicable, other federal funding, 207.24as if the program were still operated by Joint Powers District No. 6067, East Metro 207.25Integration District.207.26EFFECTIVE DATE.This section is effective the day following final enactment.207.27    Sec. 95. VISION THERAPY PILOT PROJECT.207.28    Subdivision 1.Establishment.A three-year grant program is established to fund 207.29vision therapy pilot projects in up to two school districts.207.30    Subd. 2.Pilot project.In each year of the pilot project, second and third grade 207.31students identified by a set of criteria by the pilot school shall be admitted into the pilot 207.32study. Identified students shall have a comprehensive eye examination with written 207.33standard requirements of testing. Students identified with a diagnosis of convergence 207.34insufficiency must undergo a vision efficiency evaluation by a licensed optometrist or 208.1ophthalmologist trained in the evaluation of learning-related vision problems. The results 208.2of this examination shall determine whether a student will qualify for neuro-optometric 208.3vision therapy funded by the grant. The parent or guardian of a student who qualifies for 208.4the pilot program under this paragraph may submit a written notification to the school 208.5opting the student out of the program. Guidelines must be established to provide quality 208.6standards and measures to ensure an appropriate diagnosis and treatment plan that is 208.7consistent with the convergence insufficiency treatment trial study.208.8    Subd. 3.Application.The applicant school district must submit a plan to the 208.9commissioner of education in the form and manner the commissioner determines. A 208.10charter school is not eligible to apply. The application must include:208.11(1) the school that will implement the pilot project;208.12(2) who will provide the comprehensive eye exam, visual efficiency evaluation, and 208.13the neuro-optometric vision therapy treatment along with appropriate licensure;208.14(3) how the vision and reading skills of students participating in the program will be 208.15evaluated before and after vision therapy;208.16(4) how students' progress will be monitored during and after receiving 208.17neuro-optometric vision therapy; and208.18(5) what additional reading interventions will be available to students after 208.19completion of the neuro-optometric vision therapy program.208.20    Subd. 4.Application review; grant awards.(a) Grant money must be paid to the 208.21recipient districts in the 2014-2015, 2015-2016, and 2016-2017 school years.208.22(b) The grant is awarded for a three-year time period.208.23(c) The commissioner shall oversee the grant distribution.208.24(d) A grant shall be awarded to Independent School District No. 12, Centennial, 208.25provided the district meets the application requirements in subdivision 3.208.26(e) A grant shall be awarded to an applicant district with its administrative offices 208.27not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, 208.28or a city of the first class.208.29    Subd. 5.Evaluation.The commissioner of education must provide for an evaluation 208.30of the pilot project and must report to the legislative committees with jurisdiction over 208.31kindergarten through grade 12 education policy and finance by January 15, 2018.208.32    Sec. 96. APPROPRIATION; RESPONSES TO HEALTH INSURANCE 208.33TRANSPARENCY ACT BID REQUESTS.208.34    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the 208.35commissioner of management and budget to comply with the requirements relating to  209.1health insurance transparency similar to those proposed in Senate File 1835, if enacted in 209.2the 2014 regular legislative session. This is a onetime appropriation.209.3    (b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner 209.4of management and budget shall report by January 15, 2015, to the legislative chairs 209.5and ranking minority members with jurisdiction over state government finance on the 209.6ongoing costs incurred by the public employees insurance program in compliance with 209.7the requirements of the Health Insurance Transparency Act and may request additional 209.8appropriations, if necessary.209.9    Sec. 97. APPROPRIATIONS.209.10    Subdivision 1.Department of Education.The sums indicated in this section 209.11are appropriated from the general fund to the Department of Education for the fiscal 209.12year designated.209.13    Subd. 2.Headwaters Science Center.For a grant to the Headwaters Science 209.14Center for hands-on science, technology, engineering, and math (STEM) education.

209.15$50,000.....2015

209.16The base for fiscal year 2016 and later is $0.209.17    Subd. 3.The Works Museum.For a grant to the Works Museum for hands-on 209.18science, technology, engineering, and math (STEM) education.

209.19$75,000.....2015

209.20The base for fiscal year 2016 and later is $0.209.21    Subd. 4.Northwestern Online College in the High School program.For the 209.22Northwestern Online College in the High School program:

209.23$160,000.....2015

209.24The base for fiscal year 2016 and later is $0.209.25    Subd. 5.Information technology certification partnership.For an information 209.26technology certification partnership.

209.27$340,000.....2015

209.28The base for 2016 and later is $0.209.29    Subd. 6.Grants for vision therapy pilot project.For grants to implement a 209.30neuro-optometric vision therapy pilot project:

209.31$500,000.......2015

210.1This appropriation is available until expended.210.2The base for fiscal year 2016 and later is $0.210.3    Subd. 7.Legislative report on K-12 students' experience with physical 210.4education.For the preparation of the legislative report on K-12 students' experience 210.5with physical education.

210.6$73,000.....2015

210.7    The base for fiscal year 2016 and later is $0.210.8    Subd. 8.Teacher development and evaluation.For teacher development and 210.9evaluation revenue.

210.10$9,000,000.....2015

210.11The 2015 appropriation includes $0 for 2014 and $9,000,000 for 2015. This is a 210.12onetime appropriation and is available until expended.210.13    Subd. 9.Saint Paul Promise Neighborhood.For a grant to the Saint Paul Promise 210.14Neighborhood. 

210.15$600,000.....2015

210.16(a) Funds appropriated in this section are to reduce multigenerational poverty and 210.17the educational achievement gap through increased enrollment of families within the 210.18zone, and may be used for Saint Paul Promise Neighborhood programming and services 210.19consistent with federal Promise Neighborhood program agreements and requirements.210.20(b) The Saint Paul Promise Neighborhood shall submit a report on January 15, 2016, 210.21to the chairs of the legislative committees with jurisdiction over early childhood through 210.22grade 12 education policy and finance. The report, at a minimum, must summarize 210.23program activities, specify performance measures, and analyze program outcomes.210.24(c) The base appropriation for fiscal year 2016 is $0.210.25    Subd. 10.Northside Achievement Zone.For a grant to the Northside Achievement 210.26Zone.

210.27$600,000.....2015

210.28(a) Funds appropriated in this section are to reduce multigenerational poverty and 210.29the educational achievement gap through increased enrollment of families within the zone, 210.30and may be used for Northside Achievement Zone programming and services consistent 210.31with federal Promise Neighborhood program agreements and requirements. The base 210.32appropriation for fiscal year 2016 is $0.211.1(b) The Northside Achievement Zone shall submit a report to the chairs of the 211.2legislative committees with jurisdiction over early childhood through grade 12 education 211.3policy and finance that, at a minimum, summarizes program activities, specifies 211.4performance measures, and analyzes program outcomes. The report must be submitted by 211.5January 15, 2016.211.6    Sec. 98. REVISOR'S INSTRUCTION.211.7In Minnesota Statutes, the revisor of statutes shall change the term "location equity" 211.8to "local optional."211.9    Sec. 99.  REPEALER.211.10Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.211.11ARTICLE 13211.12FORECAST ADJUSTMENTS211.13A. GENERAL EDUCATION211.14    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to 211.15read:211.16    Subd. 3. Enrollment options transportation. For transportation of pupils attending 211.17postsecondary institutions under Minnesota Statutes, section 
         124D.09, or for transportation 211.18of pupils attending nonresident districts under Minnesota Statutes, section 
         124D.03:

211.19211.20$44,00037,000.....2014211.21211.22$48,00040,000.....2015

211.23    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:211.24    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section 211.25127A.49
         :

211.26211.27$2,747,0002,876,000.....2014211.28211.29$3,136,0003,103,000.....2015

211.30The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000211.31 for 2014.212.1The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000212.2 $2,817,000 for 2015.212.3    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:212.4    Subd. 5. Consolidation transition. For districts consolidating under Minnesota 212.5Statutes, section 
         123A.485:

212.6212.7$472,000585,000.....2014212.8212.9$480,000254,000.....2015

212.10The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.212.11The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000212.12 for 2015.212.13    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:212.14    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under 212.15Minnesota Statutes, sections 
         123B.40 to 
         123B.43 and 
         123B.87:

212.16212.17$15,582,000 15,867,000.....2014212.18212.19$16,169,00016,074,000.....2015

212.20The 2014 appropriation includes $2,099,000 $1,898,000 for 2013 and $13,483,000212.21 $13,969,000 for 2014.212.22The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000212.23 $14,522,000 for 2015.212.24    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:212.25    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid 212.26under Minnesota Statutes, section 
         123B.92, subdivision 9:

212.27212.28$18,565,000 18,500,000.....2014212.29212.30$18,946,00017,646,000.....2015

212.31The 2014 appropriation includes $2,668,000 $2,602,000 for 2013 and $15,897,000212.32 $15,898,000 for 2014.212.33The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000212.34 $15,880,000 for 2015.213.1    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:213.2    Subd. 11. Career and technical aid. For career and technical aid under Minnesota 213.3Statutes, section 
         124D.4531, subdivision 1b:

213.4213.5$4,320,0003,959,000.....2014213.6213.7$5,680,0005,172,000.....2015

213.8The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.213.9The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000213.10 $4,733,000 for 2015.213.11B. EDUCATION EXCELLENCE213.12    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:213.13    Subd. 3. Achievement and integration aid. For achievement and integration aid 213.14under Minnesota Statutes, section 
         124D.862:

213.15213.16$58,911,00055,609,000.....2014213.17213.18$68,623,00062,692,000.....2015

213.19The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.213.20The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000213.21 $56,514,000 for 2015.213.22    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:213.23    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota 213.24Statutes, section 
         124D.98:

213.25213.26$52,514,00050,998,000.....2014213.27213.28$53,818,00047,458,000.....2015

213.29The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000213.30 for 2014.213.31The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000213.32 $42,526,000 for 2015.213.33    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:214.1    Subd. 5. Interdistrict desegregation or integration transportation grants. For 214.2interdistrict desegregation or integration transportation grants under Minnesota Statutes, 214.3section 
         124D.87:

214.4214.5$13,968,00013,521,000.....2014214.6214.7$14,712,00014,248,000.....2015

214.8    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:214.9    Subd. 6. Success for the future. For American Indian success for the future grants 214.10under Minnesota Statutes, section 
         124D.81:

214.11214.12$2,137,0002,214,000.....2014214.13$2,137,000.....2015

214.14The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000214.15 for 2014.214.16The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000214.17 $1,924,000 for 2015.214.18    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:214.19    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota 214.20Statutes, section 
         124D.83:

214.21214.22$2,080,000 2,044,000.....2014214.23214.24$2,230,0002,152,000.....2015

214.25The 2014 appropriation includes $266,000 $166,000 for 2013 and $1,814,000214.26 $1,878,000 for 2014.214.27The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000214.28 $1,944,000 for 2015.214.29    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to 214.30read:214.31    Subd. 20. Alternative compensation. For alternative teacher compensation aid 214.32under Minnesota Statutes, section 
         122A.415, subdivision 4:

214.33214.34$60,340,00071,599,000.....2015

214.35The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.215.1C. CHARTER SCHOOLS215.2    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:215.3    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 215.4Statutes, section 
         124D.11, subdivision 4: 

215.5215.6$54,484,000 54,625,000.....2014215.7215.8$59,533,00058,294,000.....2015

215.9The 2014 appropriation includes $6,819,000 $6,681,000 for 2013 and $47,665,000215.10 $47,944,000 for 2014.215.11The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000215.12 $52,967,000 for 2015.215.13D. SPECIAL PROGRAMS215.14    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:215.15    Subd. 2. Special education; regular. For special education aid under Minnesota 215.16Statutes, section 
         125A.75:

215.17215.18$997,725,000 1,038,465,000.....2014215.19215.20$1,108,211,0001,111,641,000.....2015

215.21The 2014 appropriation includes $118,232,000 $118,183,000 for 2013 and 215.22$802,884,000 $920,282,000 for 2014.215.23The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and 215.24$938,282,000 $982,092,000 for 2015.215.25    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:215.26    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 215.27section 
         125A.75, subdivision 3, for children with disabilities placed in residential facilities 215.28within the district boundaries for whom no district of residence can be determined:

215.29215.30$1,655,0001,548,000.....2014215.31215.32$1,752,0001,674,000.....2015

215.33If the appropriation for either year is insufficient, the appropriation for the other 215.34year is available.216.1    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:216.2    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 216.3services under Minnesota Statutes, section 
         125A.75, subdivision 1:

216.4216.5$345,000351,000.....2014216.6216.7$355,000346,000.....2015

216.8The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.216.9The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000216.10 for 2015.216.11    Sec. 17. Laws 2013, chapter 116, article 5, section 31, subdivision 5, is amended to read:216.12    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota 216.13Statutes, section 
         125A.79, subdivision 7:

216.14216.15$42,030,00042,016,000.....2014

216.16The 2014 appropriation includes $42,030,000 $42,016,000 for 2013 and $0 for 2014.216.17E. FACILITIES AND TECHNOLOGY216.18    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:216.19    Subd. 2. Health and safety revenue. For health and safety aid according to 216.20Minnesota Statutes, section 
         123B.57, subdivision 5:

216.21$463,000 471,000.....2014216.22$434,000651,000.....2015

216.23The 2014 appropriation includes $26,000 $24,000 for 2013 and $437,000 $447,000216.24 for 2014.216.25The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000216.26 for 2015.216.27    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:216.28    Subd. 3. Debt service equalization. For debt service aid according to Minnesota 216.29Statutes, section 
         123B.53, subdivision 6:

216.30216.31$19,083,00019,778,000.....2014216.32216.33$25,060,00022,591,000.....2015

217.1The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000217.2 for 2014.217.3The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000217.4 $20,660,000 for 2015.217.5    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:217.6    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid, 217.7according to Minnesota Statutes, section 
         123B.59, subdivision 1:

217.8217.9$19,287,00019,982,000.....2014217.10$19,287,000.....2015

217.11The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000217.12 for 2014.217.13The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000217.14 $17,359,000 for 2015.217.15    Sec. 21. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:217.16    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 217.17Minnesota Statutes, section 
         123B.591, subdivision 4:

217.18217.19$3,564,000 3,877,000.....2014217.20217.21$3,730,0004,024,000.....2015

217.22The 2014 appropriation includes $456,000 $475,000 for 2013 and $3,108,000217.23 $3,402,000 for 2014.217.24The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000217.25 $3,646,000 for 2015.217.26F. NUTRITION AND LIBRARIES217.27    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:217.28    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 217.29section 
         124D.118:

217.30217.31$1,039,000992,000.....2014217.32217.33$1,049,0001,002,000.....2015

218.1    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:218.2    Subd. 6. Basic system support. For basic system support grants under Minnesota 218.3Statutes, section 
         134.355:

218.4218.5$13,570,00014,058,000.....2014218.6218.7$13,570,00013,570,000.....2015

218.8The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000218.9 for 2014.218.10The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000218.11 $12,213,000 for 2015.218.12    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:218.13    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota 218.14Statutes, sections 
         134.353 and 
         134.354, to multicounty, multitype library systems:

218.15218.16$1,300,0001,346,000.....2014218.17$1,300,000.....2015

218.18The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000218.19 for 2014.218.20The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000218.21 $1,170,000 for 2015.218.22    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:218.23    Subd. 9. Regional library telecommunications aid. For regional library 218.24telecommunications aid under Minnesota Statutes, section 
         134.355:

218.25218.26$2,300,0002,382,000.....2014218.27$2,300,000.....2015

218.28The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000218.29 for 2014.218.30The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000218.31 $2,070,000 for 2015.218.32G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 218.33AND LIFELONG LEARNING218.34    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:219.1    Subd. 4. Health and developmental screening aid. For health and developmental 219.2screening aid under Minnesota Statutes, sections 
         121A.17 and 
         121A.19:

219.3219.4$3,421,0003,527,000.....2014219.5219.6$3,344,0003,330,000.....2015

219.7The 2014 appropriation includes $474,000 for 2013 and $2,947,000 $3,053,000219.8 for 2014.219.9The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000219.10 $2,991,000 for 2015.219.11    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:219.12    Subd. 10. Community education aid. For community education aid under 219.13Minnesota Statutes, section 
         124D.20:

219.14219.15$935,000955,000.....2014219.16219.17$1,056,0001,060,000.....2015

219.18The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.219.19The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000219.20 for 2015.219.21    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:219.22    Subd. 11. Adults with disabilities program aid. For adults with disabilities 219.23programs under Minnesota Statutes, section 
         124D.56:

219.24$710,000 734,000.....2014219.25$710,000.....2015

219.26The 2014 appropriation includes $96,000 $95,000 for 2013 and $614,000 $639,000219.27 for 2014.219.28The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000219.29 for 2015.219.30ARTICLE 14219.31HEALTH AND HUMAN SERVICES APPROPRIATIONS

219.32Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

219.33The sums shown in the columns marked "Appropriations" are added to or, if shown 219.34in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14 220.1and 15, to the agencies and for the purposes specified in this article. The appropriations 220.2are from the general fund and are available for the fiscal years indicated for each purpose. 220.3The figures "2014" and "2015" used in this article mean that the addition to or subtraction 220.4from the appropriation listed under them is available for the fiscal year ending June 30, 220.52014, or June 30, 2015, respectively. Supplemental appropriations and reductions to 220.6appropriations for the fiscal year ending June 30, 2014, are effective the day following 220.7final enactment unless a different effective date is explicit.

220.8APPROPRIATIONS220.9Available for the Year220.10Ending June 30220.1120142015

220.12220.13Sec. 2. COMMISSIONER OF HUMAN SERVICES

220.14Subdivision 1.Total Appropriation(1,873,000) 92,803,000

220.15The appropriation modifications for 220.16each purpose are shown in the following 220.17subdivisions.

220.18Appropriations by Fund220.1920142015220.20General(1,873,000) 91,901,000220.21Federal TANF-0- 902,000

220.22Subd. 2.Central Office Operations

220.23(a) Operations-0- 99,000

220.24Base adjustment. The general fund base is 220.25increased by $222,000 in fiscal year 2016 220.26and decreased by $26,000 in fiscal year 2017.

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

220.28Base adjustment. The general fund base is 220.29increased by $112,000 in fiscal years 2016 220.30and 2017.

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

220.32Base adjustment. The general fund base is 220.33decreased by $83,000 in fiscal year 2016 and 220.34$108,000 in fiscal year 2017.

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

221.2$35,000 in fiscal year 2015 is to develop 221.3an online training program to promote 221.4better clarity and interpretation of the civil 221.5commitment laws for interested individuals 221.6and personnel, specifically county and 221.7hospital staff and mental health providers, 221.8to understand, clarify, and interpret the 221.9Civil Commitment Act under Minnesota 221.10Statutes, chapter 253B, as it pertains to 221.11persons with mental illnesses. The training 221.12must be developed in collaboration with 221.13the ombudsman for mental health and 221.14developmental disabilities, Minnesota 221.15County Attorneys Association, National 221.16Alliance on Mental Illness of Minnesota, 221.17Mental Health Consumer/Survivor Network 221.18of Minnesota, Mental Health Association, 221.19Minnesota Psychiatric Society, Hennepin 221.20Commitment Defense Panel, Minnesota 221.21Disability Law Center, Minnesota 221.22Association of Community Mental Health 221.23Programs, Minnesota Hospital Association, 221.24and Minnesota Board of Public Defense. 221.25This is a onetime appropriation.221.26Base adjustment. The general fund base is 221.27decreased by $150,000 in fiscal years 2016 221.28and 2017.

221.29Subd. 3.Forecasted Programs

221.30(a) MFIP/DWP

221.31Appropriations by Fund221.32General-0- 122,000221.33Federal TANF-0- 550,000

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

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

222.2(d) MinnesotaCare-0--0-

222.3The forecast amounts in fiscal years 2016 222.4and 2017 for the low-income uninsured 222.5children's health program under Minnesota 222.6Statutes, section 256L.30, must be from the 222.7general fund.

222.8(e) Medical Assistance(1,858,000) 82,912,000

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

222.10Subd. 4.Grant Programs

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

222.12Base adjustment. The general fund base is 222.13increased by $9,000 in fiscal year 2017.

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

222.15$500,000 is for the safe harbor shelter and 222.16housing fund for housing and supportive 222.17services for youth who are sexually exploited.222.18$1,000,000 is for purposes of the Homeless 222.19Youth Act under Minnesota Statutes, section 222.20256K.45. This appropriation is available 222.21until expended.

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

222.23$250,000 in fiscal year 2015 is for the 222.24Minnesota Board on Aging for congregate 222.25dining services under Minnesota Statutes, 222.26section 256.9752. This is a onetime 222.27appropriation and is available until expended.222.28Base adjustment. The general fund base is 222.29decreased by $5,000 in fiscal year 2016 and 222.30increased by $8,000 in fiscal year 2017.

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

223.1Base adjustment. The general fund base is 223.2increased by $9,000 in fiscal years 2016 and 223.32017.

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

223.5Base adjustment. The general fund base is 223.6increased by $281,000 in fiscal year 2016 223.7and $292,000 in fiscal year 2017.

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

223.9This appropriation is for intensive community 223.10rehabilitation services through April 30, 223.112016.223.12Base adjustment. The general fund base is 223.13decreased by $247,000 in fiscal year 2016 223.14and $1,000,000 in fiscal year 2017.

223.15Subd. 5.State-Operated Services

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

223.17Base adjustment. The general fund base is 223.18increased by $107,000 in fiscal years 2016 223.19and 2017.

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

223.21Community Addiction Recovery 223.22Enterprise deficiency funding.223.23Notwithstanding Minnesota Statutes, section 223.24254B.06, subdivision 1, $4,000,000 is 223.25transferred in fiscal years 2014 and 2015 only 223.26from the consolidated chemical dependency 223.27treatment fund administrative account in the 223.28special revenue fund and deposited into the 223.29enterprise fund for the Community Addiction 223.30Recovery Enterprise. This paragraph is 223.31effective the day following final enactment.

223.32Subd. 6.Sex Offender Program-0-1,250,000

224.1Court-ordered experts.  $1,250,000 in 224.2fiscal year 2014 is for the commissioner to 224.3comply with the United States District Court 224.4order of February 20, 2014, in the matter of 224.5Karsjens et al. v. Jesson et al. For purposes 224.6of Minnesota Statutes, section 246B.10, 224.7activities funded by this appropriation are 224.8not considered part of the cost of care. This 224.9appropriation is onetime and is available 224.10until June 30, 2017. This paragraph expires 224.11June 30, 2017.224.12Base adjustment. The general fund base is 224.13decreased by $1,250,000 in fiscal years 2016 224.14and 2017.

224.15Subd. 7.Technical Activities-0-352,000

224.16This appropriation is from the federal TANF 224.17fund.224.18Base adjustment. The federal TANF fund 224.19base is increased by $684,000 in fiscal year 224.202016 and $1,207,000 in fiscal year 2017.

224.21Sec. 3. COMMISSIONER OF HEALTH.

224.22Subdivision 1.Total Appropriation$767,000$3,761,000

224.23Appropriations by Fund224.2420142015224.25General950,000 4,035,000224.26224.27State Government Special Revenue817,000 726,000224.28Health Care Access(1,000,000)(1,000,000)

224.29Subd. 2.Health Improvement(25,000)1,525,000

224.30$1,000,000 of the general fund appropriation 224.31is for grants for comprehensive services, 224.32including trauma-informed, culturally 224.33specific services, for youth who are sexually 224.34exploited. The commissioner may use up 225.1to 6.5 percent of these funds, not to exceed 225.2$100,000, for the administration of these 225.3grants.225.4$100,000 of the general fund appropriation 225.5in fiscal year 2015 is for a grant to a 225.6Somali-based health care organization 225.7located in Minnesota. The grant must be 225.8used to address health inequities experienced 225.9by first generation Somali women by 225.10creating cultural awareness and education 225.11for health care professionals and the Somali 225.12community. The information developed 225.13must be culturally specific in order to 225.14improve Somali women's access to maternal 225.15health and preventive care; reduce infant 225.16mortality; and increase health literacy. The 225.17grant recipient must use community-based 225.18participatory research focusing on Somali 225.19women centered programs, and must develop 225.20a culturally appropriate methodology 225.21to measure program effectiveness in 225.22achieving better health outcomes for Somali 225.23women. The grant recipient must report 225.24the organization's outcomes in terms of 225.25developing best practices for providing 225.26culturally appropriate health care to the 225.27commissioner by September 1, 2016. This is 225.28a onetime appropriation.225.29Home Visiting Pilot Project for Highest 225.30Risk Families. $400,000 in fiscal year 2015 225.31is for a pilot project to expand evidence-based 225.32high-quality home visiting, focusing on the 225.33youngest children living in the highest risk 225.34families receiving assistance through the 225.35Minnesota family investment program under 225.36Minnesota Statutes, chapter 256J, in two 226.1communities served by a community health 226.2board or tribal government. One community 226.3must be in the seven-county metropolitan area 226.4and one must be outside the seven-county 226.5metropolitan area. The commissioner of 226.6health shall consult with the commissioner 226.7of human services and the commissioner of 226.8education on the administration of the pilot 226.9program. The commissioner of health shall 226.10provide a formative evaluation of the pilot 226.11project to the chairs and ranking minority 226.12members of the legislative committees 226.13with jurisdiction over health and human 226.14services policy and finance by January 1, 226.152016. The evaluation must include the 226.16identification of populations being served, 226.17including geographic area, risk factors, and 226.18demographics; and strategies being used to 226.19coordinate health, social services, and other 226.20community resources. This is a onetime 226.21appropriation and is available until expended.226.22Base Level Adjustment. The general fund 226.23base is decreased by $550,000 in fiscal year 226.242016 and $500,000 in fiscal year 2017. 

226.25Subd. 3.Policy Quality and Compliance

226.26Appropriations by Fund226.27General-0-2,010,000226.28226.29State Government Special Revenue-0- 78,000226.30Health Care Access(1,000,000)(1,000,000)

226.31Health Care Grants for Uninsured 226.32Individuals. (a) $100,000 of the general 226.33fund appropriation in fiscal year 2015 is 226.34for dental provider grants in article 20, 226.35section 7, subdivision 1. This is a onetime 226.36appropriation 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. The state government 227.28special revenue fund base is increased by 227.29$4,000 in fiscal years 2016 and 2017.

227.30Subd. 4.Health Protection

227.31Appropriations by Fund227.3220142015227.33General-0-500,000227.34227.35State Government Special Revenue817,000648,000

228.1Healthy Housing Grants. (a) $100,000 of 228.2the general fund appropriation in fiscal year 228.32015 is for education and training grants 228.4under Minnesota Statutes, section 144.9513, 228.5subdivision 3.228.6(b) $300,000 of the general fund 228.7appropriation in fiscal year 2015 is for 228.8healthy homes implementation grants under 228.9Minnesota Statutes, section 144.9513, 228.10subdivision 4.228.11(c) $100,000 of the general fund 228.12appropriation in fiscal year 2015 is for 228.13lead poisoning prevention activities under 228.14Minnesota Statutes, sections 144.9501 to 228.15144.9512.228.16(d) No more than one full-time employee 228.17may be hired to administer the grants under 228.18Minnesota Statutes, section 144.9513.

228.19Subd. 5.Administrative Support Services975,000-0-

228.20Lawsuit settlement. The general fund 228.21appropriation in fiscal year 2014 is a onetime 228.22appropriation for the cost of settling the 228.23lawsuit Bearder v. State of Minnesota.

228.24228.25228.26Sec. 4. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES.$-0-$150,000

228.27    Sec. 5. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108, 228.28article 6, section 32, is amended to read:228.29    Sec. 6. TRANSFER.228.30(a) The commissioner of management and budget shall transfer from the health care 228.31access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000 228.32in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal 228.33year 2017.229.1(b) The commissioner of human services shall determine the difference between the 229.2actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds 229.3and parents and relative caretaker populations with income between 100 and 138 percent of 229.4the federal poverty guidelines and the cost of adding those populations that was estimated 229.5during the 2013 legislative session based on the data from the February 2013 forecast.229.6(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall 229.7certify and report to the commissioner of management and budget the actual or forecasted229.8 estimated  cost difference of adding 19- and 20-year-olds and parents and relative caretaker 229.9populations with income between 100 and 138 percent of the federal poverty guidelines, 229.10as determined under paragraph (b), to the commissioner of management and budget at 229.11least four weeks prior to the release of a forecast under Minnesota Statutes, section 229.1216A.103
         , of each fiscal year.229.13(d) No later than three weeks before the release of the forecast For fiscal years 2014 to 229.142017, forecasts  under Minnesota Statutes, section 
         16A.103, prepared by the commissioner 229.15of management and budget shall reduce the include actual or estimated adjustments to 229.16health care access fund transfer transfers  in paragraph (a), by the cumulative differences in 229.17costs reported by the commissioner of human services under according to  paragraph (c)229.18 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under 229.19paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year, 229.20the amount of the cumulative cost differences determined under paragraph (b) is less than 229.21the amount of the original appropriation, the appropriation for that year must be zero.229.22(e) For each fiscal year from 2014 to 2017, the commissioner of management and 229.23budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in 229.24costs reported by the commissioner of human services under paragraph (c). If, for any 229.25fiscal year, the amount of the cumulative difference in costs reported under paragraph (c) 229.26is positive, no adjustment shall be made.229.27EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.229.28    Sec. 6. Laws 2013, chapter 108, article 14, section 2, subdivision 3, is amended to read:

229.29229.30Subd. 3.TANF Transfer to Federal Child Care and Development Fund

229.31(a) The following TANF fund amounts 229.32are appropriated to the commissioner for 229.33purposes of MFIP/transition year child care 229.34assistance under Minnesota Statutes, section 229.35119B.05
         :230.1(1) fiscal year 2014; $14,020,000; and230.2(2) fiscal year 2015, $14,020,000; 230.3$14,372,000; 230.4(3) fiscal year 2016; $1,378,000; and230.5(4) fiscal year 2017; $3,378,000.230.6(b) The commissioner shall authorize the 230.7transfer of sufficient TANF funds to the 230.8federal child care and development fund to 230.9meet this appropriation and shall ensure that 230.10all transferred funds are expended according 230.11to federal child care and development fund 230.12regulations.230.13    Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:

230.14Subd. 5.Forecasted Programs

230.15The amounts that may be spent from this 230.16appropriation for each purpose are as follows:

230.17(a) MFIP/DWP

230.18Appropriations by Fund230.19General72,583,00076,927,000230.20Federal TANF80,342,00076,851,000

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

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

230.23General Assistance Standard. The 230.24commissioner shall set the monthly standard 230.25of assistance for general assistance units 230.26consisting of an adult recipient who is 230.27childless and unmarried or living apart 230.28from parents or a legal guardian at $203. 230.29The commissioner may reduce this amount 230.30according to Laws 1997, chapter 85, article 230.313, section 54.231.1Emergency General Assistance. The 231.2amount appropriated for emergency general 231.3assistance funds is limited to no more 231.4than $6,729,812 in fiscal year 2014 and 231.5$6,729,812 in fiscal year 2015. Funds 231.6to counties shall be allocated by the 231.7commissioner using the allocation method in 231.8Minnesota Statutes, section 
         256D.06.

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

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

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

231.12This appropriation is from the health care 231.13access fund.

231.14(g) Medical Assistance

231.15Appropriations by Fund231.16General4,443,768,0004,431,612,000231.17Health Care Access179,550,000226,081,000

231.18Spending to be apportioned. The 231.19commissioner shall apportion expenditures 231.20under this paragraph consistent with the 231.21requirements of section 12.231.22Support Services for Deaf and 231.23Hard-of-Hearing. $121,000 in fiscal 231.24year 2014 and $141,000 in fiscal year 2015; 231.25and $10,000 in fiscal year 2014 and $13,000 231.26in fiscal year 2015 are from the health care 231.27access fund for the hospital reimbursement 231.28increase in Minnesota Statutes, section 231.29256.969, subdivision 29
         , paragraph (b).231.30Disproportionate Share Payments.231.31Effective for services provided on or after 231.32July 1, 2011, through June 30, 2015, the 231.33commissioner of human services shall 231.34deposit, in the health care access fund, 232.1additional federal matching funds received 232.2under Minnesota Statutes, section 
         256B.199, 232.3paragraph (e), as disproportionate share 232.4hospital payments for inpatient hospital 232.5services provided under MinnesotaCare to 232.6lawfully present noncitizens who are not 232.7eligible for MinnesotaCare with federal 232.8financial participation due to immigration 232.9status. The amount deposited shall not exceed 232.10$2,200,000 for the time period specified.232.11Funding for Services Provided to EMA 232.12Recipients. $2,200,000 in fiscal year 2014 is 232.13from the health care access fund to provide 232.14services to emergency medical assistance 232.15recipients under Minnesota Statutes, section 232.16256B.06, subdivision 4
         , paragraph (l). This 232.17is a onetime appropriation and is available in 232.18either year of the biennium.232.19Base level adjustment. For fiscal years 2016 232.20and 2017 only, the health care access fund 232.21base for medical assistance is $221,035,000 232.22in fiscal year 2016 and $221,035,000 in fiscal 232.23year 2017.

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

232.25Alternative Care Transfer. Any money 232.26allocated to the alternative care program that 232.27is not spent for the purposes indicated does 232.28not cancel but shall be transferred to the 232.29medical assistance account.

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

232.31Balance Transfer. The commissioner must 232.32transfer $18,188,000 from the consolidated 232.33chemical dependency treatment fund to the 232.34general fund by September 30, 2013.233.1    Sec. 8. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 233.2Laws 2013, chapter 144, section 25, is amended to read:

233.3Subd. 6.Grant Programs

233.4The amounts that may be spent from this 233.5appropriation for each purpose are as follows:

233.6(a) Support Services Grants

233.7Appropriations by Fund233.8General8,915,00013,333,000233.9Federal TANF94,611,00094,611,000

233.10Paid Work Experience. $2,168,000 233.11each year in fiscal years 2015 and 2016 233.12is from the general fund for paid work 233.13experience for long-term MFIP recipients. 233.14Paid work includes full and partial wage 233.15subsidies and other related services such as 233.16job development, marketing, preworksite 233.17training, job coaching, and postplacement 233.18services. These are onetime appropriations. 233.19Unexpended funds for fiscal year 2015 do not 233.20cancel, but are available to the commissioner 233.21for this purpose in fiscal year 2016.233.22Work Study Funding for MFIP 233.23Participants. $250,000 each year in fiscal 233.24years 2015 and 2016 is from the general fund 233.25to pilot work study jobs for MFIP recipients 233.26in approved postsecondary education 233.27programs. This is a onetime appropriation. 233.28Unexpended funds for fiscal year 2015 do 233.29not cancel, but are available for this purpose 233.30in fiscal year 2016.233.31Local Strategies to Reduce Disparities.233.32$2,000,000 each year in fiscal years 2015 233.33and 2016 is from the general fund for 233.34local projects that focus on services for 233.35subgroups within the MFIP caseload 234.1who are experiencing poor employment 234.2outcomes. These are onetime appropriations. 234.3Unexpended funds for fiscal year 2015 do not 234.4cancel, but are available to the commissioner 234.5for this purpose in fiscal year 2016.234.6Home Visiting Collaborations for MFIP 234.7Teen Parents. $200,000 per year in fiscal 234.8years 2014 and 2015 is from the general fund 234.9and $200,000 in fiscal year 2016 is from the 234.10federal TANF fund for technical assistance 234.11and training to support local collaborations 234.12that provide home visiting services for 234.13MFIP teen parents. The general fund 234.14appropriation is onetime. The federal TANF 234.15fund appropriation is added to the base.234.16Performance Bonus Funds for Counties.234.17The TANF fund base is increased by 234.18$1,500,000 each year in fiscal years 2016 234.19and 2017. The commissioner must allocate 234.20this amount each year to counties that exceed 234.21their expected range of performance on the 234.22annualized three-year self-support index 234.23as defined in Minnesota Statutes, section 234.24256J.751, subdivision 2
         , clause (6). This is a 234.25permanent base adjustment. Notwithstanding 234.26any contrary provisions in this article, this 234.27provision expires June 30, 2016.234.28Base Adjustment. The general fund base is 234.29decreased by $200,000 in fiscal year 2016 234.30and $4,618,000 in fiscal year 2017. The 234.31TANF fund base is increased by $1,700,000 234.32in fiscal years 2016 and 2017.

234.33234.34(b) Basic Sliding Fee Child Care Assistance Grants36,836,00042,318,000

235.1Base Adjustment. The general fund base is 235.2increased by $3,778,000 in fiscal year 2016 235.3and by $3,849,000 in fiscal year 2017.

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

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

235.6Federal Child Support Demonstration 235.7Grants. Federal administrative 235.8reimbursement resulting from the federal 235.9child support grant expenditures authorized 235.10under United States Code, title 42, section 235.111315, is appropriated to the commissioner 235.12for this activity.

235.13(e) Children's Services Grants

235.14Appropriations by Fund235.15General49,760,00052,961,000235.16Federal TANF140,000140,000

235.17Adoption Assistance and Relative Custody 235.18Assistance.$37,453,000 $36,456,000235.19 in fiscal year 2014 and $37,453,000235.20 $36,855,000 in fiscal year 2015 is for the 235.21adoption assistance and relative custody 235.22assistance programs. The commissioner 235.23shall determine with the commissioner of 235.24Minnesota Management and Budget the 235.25appropriation for Northstar Care for Children 235.26effective January 1, 2015. The commissioner 235.27may transfer appropriations for adoption 235.28assistance, relative custody assistance, and 235.29Northstar Care for Children between fiscal 235.30years and among programs to adjust for 235.31transfers across the programs.235.32Title IV-E Adoption Assistance. Additional 235.33federal reimbursements to the state as a result 235.34of the Fostering Connections to Success 235.35and Increasing Adoptions Act's expanded 236.1eligibility for Title IV-E adoption assistance 236.2are appropriated for postadoption services, 236.3including a parent-to-parent support network.236.4Privatized Adoption Grants. Federal 236.5reimbursement for privatized adoption grant 236.6and foster care recruitment grant expenditures 236.7is appropriated to the commissioner for 236.8adoption grants and foster care and adoption 236.9administrative purposes.236.10Adoption Assistance Incentive Grants.236.11Federal funds available during fiscal years 236.122014 and 2015 for adoption incentive grants 236.13are appropriated for postadoption services, 236.14including a parent-to-parent support network.236.15Base Adjustment. The general fund base is 236.16increased by $5,913,000 in fiscal year 2016 236.17and by $10,297,000 in fiscal year 2017.

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

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

236.20Minnesota Food Assistance Program. 236.21Unexpended funds for the Minnesota food 236.22assistance program for fiscal year 2014 do 236.23not cancel but are available for this purpose 236.24in fiscal year 2015.236.25Transitional Housing. $250,000 each year 236.26is for the transitional housing programs under 236.27Minnesota Statutes, section 
         256E.33.236.28Emergency Services. $250,000 each year 236.29is for emergency services grants under 236.30Minnesota Statutes, section 
         256E.36.236.31Family Assets for Independence. $250,000 236.32each year is for the Family Assets for 236.33Independence Minnesota program. This 236.34appropriation is available in either year of the 237.1biennium and may be transferred between 237.2fiscal years.237.3Food Shelf Programs. $375,000 in fiscal 237.4year 2014 and $375,000 in fiscal year 237.52015 are for food shelf programs under 237.6Minnesota Statutes, section 
         256E.34. If the 237.7appropriation for either year is insufficient, 237.8the appropriation for the other year is 237.9available for it. Notwithstanding Minnesota 237.10Statutes, section 
         256E.34, subdivision 4, no 237.11portion of this appropriation may be used 237.12by Hunger Solutions for its administrative 237.13expenses, including but not limited to rent 237.14and salaries.237.15Homeless Youth Act. $2,000,000 in fiscal 237.16year 2014 and $2,000,000 in fiscal year 2015 237.17is for purposes of Minnesota Statutes, section 237.18256K.45
         .237.19Safe Harbor Shelter and Housing. 237.20$500,000 in fiscal year 2014 and $500,000 in 237.21fiscal year 2015 is for a safe harbor shelter 237.22and housing fund for housing and supportive 237.23services for youth who are sexually exploited.237.24High-risk adults. $200,000 in fiscal 237.25year 2014 is for a grant to the nonprofit 237.26organization selected to administer the 237.27demonstration project for high-risk adults 237.28under Laws 2007, chapter 54, article 1, 237.29section 19, in order to complete the project. 237.30This is a onetime appropriation.

237.31(h) Health Care Grants

237.32Appropriations by Fund237.33General190,000190,000237.34Health Care Access190,000190,000

238.1Emergency Medical Assistance Referral 238.2and Assistance Grants. (a) The 238.3commissioner of human services shall 238.4award grants to nonprofit programs that 238.5provide immigration legal services based 238.6on indigency to provide legal services for 238.7immigration assistance to individuals with 238.8emergency medical conditions or complex 238.9and chronic health conditions who are not 238.10currently eligible for medical assistance 238.11or other public health care programs, but 238.12who may meet eligibility requirements with 238.13immigration assistance.238.14(b) The grantees, in collaboration with 238.15hospitals and safety net providers, shall 238.16provide referral assistance to connect 238.17individuals identified in paragraph (a) with 238.18alternative resources and services to assist in 238.19meeting their health care needs. $100,000 238.20is appropriated in fiscal year 2014 and 238.21$100,000 in fiscal year 2015. This is a 238.22onetime appropriation.238.23Base Adjustment. The general fund is 238.24decreased by $100,000 in fiscal year 2016 238.25and $100,000 in fiscal year 2017.

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

238.27Base Adjustment. The general fund is 238.28increased by $1,150,000 in fiscal year 2016 238.29and $1,151,000 in fiscal year 2017.238.30Community Service Development 238.31Grants and Community Services Grants.238.32Community service development grants and 238.33community services grants are reduced by 238.34$1,150,000 each year. This is a onetime 238.35reduction.

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

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

239.3Advocating Change Together. $310,000 in 239.4fiscal year 2014 is for a grant to Advocating 239.5Change Together (ACT) to maintain and 239.6promote services for persons with intellectual 239.7and developmental disabilities throughout 239.8the state. This appropriation is onetime. Of 239.9this appropriation:239.10(1) $120,000 is for direct costs associated 239.11with the delivery and evaluation of 239.12peer-to-peer training programs administered 239.13throughout the state, focusing on education, 239.14employment, housing, transportation, and 239.15voting;239.16(2) $100,000 is for delivery of statewide 239.17conferences focusing on leadership and 239.18skill development within the disability 239.19community; and239.20(3) $90,000 is for administrative and general 239.21operating costs associated with managing 239.22or maintaining facilities, program delivery, 239.23staff, and technology.239.24Base Adjustment. The general fund base 239.25is increased by $535,000 in fiscal year 2016 239.26and by $709,000 in fiscal year 2017.

239.27(l) Adult Mental Health Grants

239.28Appropriations by Fund239.29General71,199,00069,530,000239.30Health Care Access750,000750,000239.31Lottery Prize1,733,0001,733,000

239.32Compulsive Gambling Treatment. Of the 239.33general fund appropriation, $602,000 in 239.34fiscal year 2014 and $747,000 in fiscal year 240.12015 are for compulsive gambling treatment 240.2under Minnesota Statutes, section 
         297E.02, 240.3subdivision 3
         , paragraph (c).240.4Problem Gambling. $225,000 in fiscal year 240.52014 and $225,000 in fiscal year 2015 is 240.6appropriated from the lottery prize fund for a 240.7grant to the state affiliate recognized by the 240.8National Council on Problem Gambling. The 240.9affiliate must provide services to increase 240.10public awareness of problem gambling, 240.11education and training for individuals and 240.12organizations providing effective treatment 240.13services to problem gamblers and their 240.14families, and research relating to problem 240.15gambling.240.16Funding Usage. Up to 75 percent of a fiscal 240.17year's appropriations for adult mental health 240.18grants may be used to fund allocations in that 240.19portion of the fiscal year ending December 240.2031.240.21Base Adjustment. The general fund base is 240.22decreased by $4,427,000 in fiscal years 2016 240.23and 2017.240.24Mental Health Pilot Project. $230,000 240.25each year is for a grant to the Zumbro 240.26Valley Mental Health Center. The grant 240.27shall be used to implement a pilot project 240.28to test an integrated behavioral health care 240.29coordination model. The grant recipient must 240.30report measurable outcomes and savings 240.31to the commissioner of human services 240.32by January 15, 2016. This is a onetime 240.33appropriation.240.34High-risk adults. $200,000 in fiscal 240.35year 2014 is for a grant to the nonprofit 241.1organization selected to administer the 241.2demonstration project for high-risk adults 241.3under Laws 2007, chapter 54, article 1, 241.4section 19, in order to complete the project. 241.5This is a onetime appropriation.

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

241.7Text Message Suicide Prevention 241.8Program. $625,000 in fiscal year 2014 and 241.9$625,000 in fiscal year 2015 is for a grant 241.10to a nonprofit organization to establish and 241.11implement a statewide text message suicide 241.12prevention program. The program shall 241.13implement a suicide prevention counseling 241.14text line designed to use text messaging to 241.15connect with crisis counselors and to obtain 241.16emergency information and referrals to 241.17local resources in the local community. The 241.18program shall include training within schools 241.19and communities to encourage the use of the 241.20program.241.21Mental Health First Aid Training. $22,000 241.22in fiscal year 2014 and $23,000 in fiscal 241.23year 2015 is to train teachers, social service 241.24personnel, law enforcement, and others who 241.25come into contact with children with mental 241.26illnesses, in children and adolescents mental 241.27health first aid training.241.28Funding Usage. Up to 75 percent of a fiscal 241.29year's appropriation for child mental health 241.30grants may be used to fund allocations in that 241.31portion of the fiscal year ending December 241.3231.

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

241.34SBIRT Training. (1) $300,000 each year is 241.35for grants to train primary care clinicians to 242.1provide substance abuse brief intervention 242.2and referral to treatment (SBIRT). This is a 242.3onetime appropriation. The commissioner of 242.4human services shall apply to SAMHSA for 242.5an SBIRT professional training grant.242.6(2) If the commissioner of human services 242.7receives a grant under clause (1) funds 242.8appropriated under this clause, equal to 242.9the grant amount, up to the available 242.10appropriation, shall be transferred to the 242.11Minnesota Organization on Fetal Alcohol 242.12Syndrome (MOFAS). MOFAS must use 242.13the funds for grants. Grant recipients must 242.14be selected from communities that are 242.15not currently served by federal Substance 242.16Abuse Prevention and Treatment Block 242.17Grant funds. Grant money must be used to 242.18reduce the rates of fetal alcohol syndrome 242.19and fetal alcohol effects, and the number of 242.20drug-exposed infants. Grant money may be 242.21used for prevention and intervention services 242.22and programs, including, but not limited to, 242.23community grants, professional eduction, 242.24public awareness, and diagnosis.242.25Fetal Alcohol Syndrome Grant. $180,000 242.26each year from the general fund is for a 242.27grant to the Minnesota Organization on Fetal 242.28Alcohol Syndrome (MOFAS) to support 242.29nonprofit Fetal Alcohol Spectrum Disorders 242.30(FASD) outreach prevention programs 242.31in Olmsted County. This is a onetime 242.32appropriation.242.33Base Adjustment. The general fund base is 242.34decreased by $480,000 in fiscal year 2016 242.35and $480,000 in fiscal year 2017.243.1EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.243.2    Sec. 9. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

243.3243.4Subdivision 1.Total Appropriation$169,326,000 169,026,000$165,531,000 165,231,000

243.5Appropriations by Fund243.620142015243.7General79,476,00074,256,000243.8243.9State Government 
                  		Special Revenue48,094,00050,119,000243.10Health Care Access29,743,00029,143,000243.11Federal TANF11,713,00011,713,000243.12Special Revenue300,000300,000

243.13The amounts that may be spent for each 243.14purpose are specified in the following 243.15subdivisions.243.16    Sec. 10. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

243.17Subd. 4.Health Protection

243.18Appropriations by Fund243.19General9,201,0009,201,000243.20243.21State Government 
                  		Special Revenue32,633,00032,636,000243.22Special Revenue300,000300,000

243.23Infectious Disease Laboratory. Of the 243.24general fund appropriation, $200,000 in 243.25fiscal year 2014 and $200,000 in fiscal year 243.262015 are to monitor infectious disease trends 243.27and investigate infectious disease outbreaks.243.28Surveillance for Elevated Blood Lead 243.29Levels. Of the general fund appropriation, 243.30$100,000 in fiscal year 2014 and $100,000 243.31in fiscal year 2015 are for the blood lead 243.32surveillance system under Minnesota 243.33Statutes, section 
         144.9502.243.34Base Level Adjustment. The state 243.35government special revenue base is increased 244.1by $6,000 in fiscal year 2016 and by $13,000 244.2in fiscal year 2017.244.3    Sec. 11. Laws 2013, chapter 108, article 14, section 4, subdivision 8, is amended to read:

244.4244.5Subd. 8.Board of Nursing Home Administrators3,742,0002,252,000

244.6Administrative Services Unit - Operating 244.7Costs. Of this appropriation, $676,000 244.8in fiscal year 2014 and $626,000 in 244.9fiscal year 2015 are for operating costs 244.10of the administrative services unit. The 244.11administrative services unit may receive 244.12and expend reimbursements for services 244.13performed by other agencies.244.14Administrative Services Unit - Volunteer 244.15Health Care Provider Program. Of this 244.16appropriation, $150,000 in fiscal year 2014 244.17and $150,000 in fiscal year 2015 are to pay 244.18for medical professional liability coverage 244.19required under Minnesota Statutes, section 244.20214.40
         .244.21Administrative Services Unit - Contested 244.22Cases and Other Legal Proceedings. Of 244.23this appropriation, $200,000 in fiscal year 244.242014 and $200,000 in fiscal year 2015 are 244.25for costs of contested case hearings and other 244.26unanticipated costs of legal proceedings 244.27involving health-related boards funded 244.28under this section. Upon certification of a 244.29health-related board to the administrative 244.30services unit that the costs will be incurred 244.31and that there is insufficient money available 244.32to pay for the costs out of money currently 244.33available to that board, the administrative 244.34services unit is authorized to transfer money 244.35from this appropriation to the board for 245.1payment of those costs with the approval 245.2of the commissioner of management and 245.3budget. This appropriation does not cancel 245.4and is available until expended.245.5This appropriation includes $44,000 in 245.6fiscal year 2014 for rulemaking. This is 245.7a onetime appropriation. $1,441,000 in 245.8fiscal year 2014 and $420,000 in fiscal year 245.92015 are for the development of a shared 245.10disciplinary, regulatory, licensing, and 245.11information management system. $391,000 245.12in fiscal year 2014 is a onetime appropriation 245.13for retirement costs in the health-related 245.14boards. This funding may be transferred to 245.15the health boards incurring retirement costs. 245.16These funds are available either year of the 245.17biennium.245.18This appropriation includes $16,000 in fiscal 245.19years 2014 and 2015 for evening security, 245.20$2,000 in fiscal years 2014 and 2015 for a 245.21state vehicle lease, and $18,000 in fiscal 245.22years 2014 and 2015 for shared office space 245.23and administrative support. $205,000 in 245.24fiscal year 2014 and $221,000 in fiscal year 245.252015 are for shared information technology 245.26services, equipment, and maintenance.245.27The remaining balance of the state 245.28government special revenue fund 245.29appropriation in Laws 2011, First Special 245.30Session chapter 9, article 10, section 8, 245.31subdivision 8, for Board of Nursing Home 245.32Administrators rulemaking, estimated to 245.33be $44,000, is canceled, and the remaining 245.34balance of the state government special 245.35revenue fund appropriation in Laws 2011, 246.1First Special Session chapter 9, article 10, 246.2section 8, subdivision 8, for electronic 246.3licensing system adaptors, estimated to be 246.4$761,000, and for the development and 246.5implementation of a disciplinary, regulatory, 246.6licensing, and information management 246.7system, estimated to be $1,100,000, are 246.8canceled. This paragraph is effective the day 246.9following final enactment.246.10Base Adjustment. The base is decreased by 246.11$370,000 in fiscal years 2016 and 2017.246.12EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.246.13    Sec. 12. Laws 2013, chapter 108, article 14, section 12, is amended to read:246.14    Sec. 12. APPROPRIATION ADJUSTMENTS.246.15(a) The general fund appropriation in section 2, subdivision 5, paragraph (g), 246.16includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015; 246.17$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical 246.18assistance eligibility and administration changes related to:246.19(1) eligibility for children age two to 18 with income up to 275 percent of the federal 246.20poverty guidelines;246.21(2) eligibility for pregnant women with income up to 275 percent of the federal 246.22poverty guidelines;246.23(3) Affordable Care Act enrollment and renewal processes, including elimination 246.24of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes 246.25in verification requirements, and other changes in the eligibility determination and 246.26enrollment and renewal process;246.27(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;246.28(5) eligibility related to spousal impoverishment provisions for waiver recipients; and246.29(6) presumptive eligibility determinations by hospitals.246.30(b) the commissioner of human services shall determine the difference between the 246.31actual or forecasted estimated  costs to the medical assistance program attributable to 246.32the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a), 246.33clauses (1) to (6), that were estimated during the 2013 legislative session based on data 247.1from the 2013 February forecast. The costs in this paragraph must be calculated between 247.2January 1, 2014, and June 30, 2017.247.3(c) For each fiscal year from 2014 to 2017, the commissioner of human services 247.4shall certify the actual or forecasted estimated  cost differences to the medical assistance 247.5program determined under paragraph (b), and report the difference in costs to the 247.6commissioner of management and budget at least four weeks prior to a forecast under 247.7Minnesota Statutes, section 
         16A.103. No later than three weeks before the release of 247.8the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section 247.916A.103
         , prepared by the commissioner of management and budget shall reduce include 247.10actual or estimated adjustments to  the health care access fund appropriation in section 247.112, subdivision 5, paragraph (g), by the cumulative difference in costs determined in247.12according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost 247.13differences determined under paragraph (b) is positive, no adjustment shall be made to the 247.14health care access fund appropriation. If for any fiscal year, the amount of the cumulative 247.15cost differences determined under paragraph (b) is less than the original appropriation, the 247.16appropriation for that fiscal year is zero.247.17(d) For each fiscal year from 2014 to 2017, the commissioner of management and 247.18budget must adjust the health care access fund appropriation by the cumulative difference 247.19in costs reported by the commissioner of human services under paragraph (b). If, for any 247.20fiscal year, the amount of the cumulative difference in costs determined under paragraph 247.21(b) is positive, no adjustment shall be made to the health care access fund appropriation.247.22(e) This section expires on January 1, 2018.247.23EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.247.24    Sec. 13. DEDICATED FUNDS REPORT.247.25By October 1, 2014, and with each February forecast thereafter, the commissioner of 247.26human services must provide to the chairs and ranking minority members of the house of 247.27representatives and senate committees with jurisdiction over health and human services 247.28finance a report of all dedicated funds and accounts. The report must include the name 247.29of the dedicated fund or account; a description of its purpose, and the legal citation for 247.30its creation; the beginning balance, projected receipts, and expenditures; and the ending 247.31balance for each fund and account.247.32    Sec. 14. EXPIRATION OF UNCODIFIED LANGUAGE.247.33All uncodified language in this article expires on June 30, 2015, unless a different 247.34expiration date is specified.248.1ARTICLE 15248.2CHEMICAL AND MENTAL HEALTH248.3    Section 1. Minnesota Statutes 2012, section 245.466, is amended by adding a 248.4subdivision to read:248.5    Subd. 3a.Transition plan related to termination of contract.Counties must 248.6prepare a transition plan that provides for continuity of care in the event of contract 248.7termination with a community mental health center under section 245.715, or a community 248.8support services program under section 245.462, subdivision 6. The county shall provide 248.9at least 90 days' notice of the termination to the contracted agency and the commissioner 248.10of human services. The transition plan must provide information to clients on how to 248.11access medical records and how to transfer to other providers.248.12    Sec. 2. Minnesota Statutes 2012, section 245A.04, is amended by adding a subdivision 248.13to read:248.14    Subd. 15a.Plan for transfer of clients and records upon closure.(a) Except for 248.15child care providers, an applicant for initial or continuing licensure must submit a written 248.16plan indicating how the agency will provide for the transfer of clients and records for both 248.17open and closed cases if the agency closes. The plan must provide for managing private 248.18and confidential information concerning agency clients. The plan must also provide 248.19for notifying affected clients of the closure at least 25 days prior to closure, including 248.20information on how to access their medical records. A controlling individual of the agency 248.21must annually review and sign the plan.248.22(b) Plans for the transfer of open cases and case records must specify arrangements 248.23the agency will make to transfer clients to another agency or county agency for 248.24continuation of services and to transfer the case record with the client.248.25(c) Plans for the transfer of closed case records must be accompanied by a signed 248.26agreement or other documentation indicating that a county or a similarly licensed agency 248.27has agreed to accept and maintain the agency's closed case records and to provide 248.28follow-up services as necessary to affected clients.248.29    Sec. 3. Minnesota Statutes 2012, section 253B.066, subdivision 1, is amended to read:248.30    Subdivision 1. Treatment alternatives. If the court orders early intervention 248.31under section 
         253B.065, subdivision 5, the court may include in its order a variety of 248.32treatment alternatives including, but not limited to, day treatment, medication compliance 249.1monitoring, assertive community treatment, crisis assessment and stabilization, partial 249.2hospitalization, and short-term hospitalization not to exceed 21 days.249.3If the court orders short-term hospitalization and the proposed patient will not go 249.4voluntarily, the court may direct a health officer, peace officer, or other person to take the 249.5person into custody and transport the person to the hospital.249.6    Sec. 4. Minnesota Statutes 2012, section 254B.12, is amended to read:249.7254B.12 RATE METHODOLOGY.249.8    Subdivision 1.CCDTF rate methodology established. The commissioner shall 249.9establish a new rate methodology for the consolidated chemical dependency treatment 249.10fund. The new methodology must replace county-negotiated rates with a uniform 249.11statewide methodology that must include a graduated reimbursement scale based on the 249.12patients' level of acuity and complexity. At least biennially, the commissioner shall review 249.13the financial information provided by vendors to determine the need for rate adjustments.249.14    Subd. 2.Payment methodology for state-operated vendors.(a) Notwithstanding 249.15subdivision 1, the commissioner shall seek federal authority to develop a separate 249.16payment methodology for chemical dependency treatment services provided under the 249.17consolidated chemical dependency treatment fund by a state-operated vendor. This 249.18payment methodology is effective for services provided on or after October 1, 2015, or on 249.19or after the receipt of federal approval, whichever is later.249.20(b) Before implementing an approved payment methodology under paragraph 249.21(a), the commissioner must also receive any necessary legislative approval of required 249.22changes to state law or funding.249.23    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.06, subdivision 4, is 249.24amended to read:249.25    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited 249.26to citizens of the United States, qualified noncitizens as defined in this subdivision, and 249.27other persons residing lawfully in the United States. Citizens or nationals of the United 249.28States must cooperate in obtaining satisfactory documentary evidence of citizenship or 249.29nationality according to the requirements of the federal Deficit Reduction Act of 2005, 249.30Public Law 109-171.249.31(b) "Qualified noncitizen" means a person who meets one of the following 249.32immigration criteria:249.33(1) admitted for lawful permanent residence according to United States Code, title 8;250.1(2) admitted to the United States as a refugee according to United States Code, 250.2title 8, section 1157;250.3(3) granted asylum according to United States Code, title 8, section 1158;250.4(4) granted withholding of deportation according to United States Code, title 8, 250.5section 1253(h);250.6(5) paroled for a period of at least one year according to United States Code, title 8, 250.7section 1182(d)(5);250.8(6) granted conditional entrant status according to United States Code, title 8, 250.9section 1153(a)(7);250.10(7) determined to be a battered noncitizen by the United States Attorney General 250.11according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 250.12title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;250.13(8) is a child of a noncitizen determined to be a battered noncitizen by the United 250.14States Attorney General according to the Illegal Immigration Reform and Immigrant 250.15Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 250.16Public Law 104-200; or250.17(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 250.18Law 96-422, the Refugee Education Assistance Act of 1980.250.19(c) All qualified noncitizens who were residing in the United States before August 250.2022, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 250.21medical assistance with federal financial participation.250.22(d) Beginning December 1, 1996, qualified noncitizens who entered the United 250.23States on or after August 22, 1996, and who otherwise meet the eligibility requirements 250.24of this chapter are eligible for medical assistance with federal participation for five years 250.25if they meet one of the following criteria:250.26(1) refugees admitted to the United States according to United States Code, title 8, 250.27section 1157;250.28(2) persons granted asylum according to United States Code, title 8, section 1158;250.29(3) persons granted withholding of deportation according to United States Code, 250.30title 8, section 1253(h);250.31(4) veterans of the United States armed forces with an honorable discharge for 250.32a reason other than noncitizen status, their spouses and unmarried minor dependent 250.33children; or250.34(5) persons on active duty in the United States armed forces, other than for training, 250.35their spouses and unmarried minor dependent children.251.1 Beginning July 1, 2010, children and pregnant women who are noncitizens 251.2described in paragraph (b) or who are lawfully present in the United States as defined 251.3in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet 251.4eligibility requirements of this chapter, are eligible for medical assistance with federal 251.5financial participation as provided by the federal Children's Health Insurance Program 251.6Reauthorization Act of 2009, Public Law 111-3.251.7(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 251.8are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this 251.9subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 251.10Code, title 8, section 1101(a)(15).251.11(f) Payment shall also be made for care and services that are furnished to noncitizens, 251.12regardless of immigration status, who otherwise meet the eligibility requirements of 251.13this chapter, if such care and services are necessary for the treatment of an emergency 251.14medical condition.251.15(g) For purposes of this subdivision, the term "emergency medical condition" means 251.16a medical condition that meets the requirements of United States Code, title 42, section 251.171396b(v).251.18(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment 251.19of an emergency medical condition are limited to the following:251.20(i) services delivered in an emergency room or by an ambulance service licensed 251.21under chapter 144E that are directly related to the treatment of an emergency medical 251.22condition;251.23(ii) services delivered in an inpatient hospital setting following admission from an 251.24emergency room or clinic for an acute emergency condition; and251.25(iii) follow-up services that are directly related to the original service provided 251.26to treat the emergency medical condition and are covered by the global payment made 251.27to the provider.251.28    (2) Services for the treatment of emergency medical conditions do not include:251.29(i) services delivered in an emergency room or inpatient setting to treat a 251.30nonemergency condition;251.31(ii) organ transplants, stem cell transplants, and related care;251.32(iii) services for routine prenatal care;251.33(iv) continuing care, including long-term care, nursing facility services, home health 251.34care, adult day care, day training, or supportive living services;251.35(v) elective surgery;252.1(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as 252.2part of an emergency room visit;252.3(vii) preventative health care and family planning services;252.4(viii) rehabilitation services;252.5(ix) physical, occupational, or speech therapy;252.6(x) transportation services;252.7(xi) case management;252.8(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;252.9(xiii) dental services;252.10(xiv) hospice care;252.11(xv) audiology services and hearing aids;252.12(xvi) podiatry services;252.13(xvii) chiropractic services;252.14(xviii) immunizations;252.15(xix) vision services and eyeglasses;252.16(xx) waiver services;252.17(xxi) individualized education programs; or252.18(xxii) chemical dependency treatment.252.19(i) Pregnant noncitizens who are ineligible for federally funded medical assistance 252.20because of immigration status, are not covered by a group health plan or health insurance 252.21coverage according to Code of Federal Regulations, title 42, section 457.310, and who 252.22otherwise meet the eligibility requirements of this chapter, are eligible for medical 252.23assistance through the period of pregnancy, including labor and delivery, and 60 days 252.24postpartum, to the extent federal funds are available under title XXI of the Social Security 252.25Act, and the state children's health insurance program.252.26(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation 252.27services from a nonprofit center established to serve victims of torture and are otherwise 252.28ineligible for medical assistance under this chapter are eligible for medical assistance 252.29without federal financial participation. These individuals are eligible only for the period 252.30during which they are receiving services from the center. Individuals eligible under this 252.31paragraph shall not be required to participate in prepaid medical assistance. Beginning 252.32July 1, 2014, the commissioner shall pay claims in full and subsequently bill counties 252.33for the nonfederal share of costs associated with adult mental health targeted case 252.34management services provided under this paragraph.253.1(k) Notwithstanding paragraph (h), clause (2), the following services are covered as 253.2emergency medical conditions under paragraph (f) except where coverage is prohibited 253.3under federal law:253.4(1) dialysis services provided in a hospital or freestanding dialysis facility; and253.5(2) surgery and the administration of chemotherapy, radiation, and related services 253.6necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission 253.7and requires surgery, chemotherapy, or radiation treatment.253.8(l) Effective July 1, 2013, recipients of emergency medical assistance under this 253.9subdivision are eligible for coverage of the elderly waiver services provided under section 253.10256B.0915
         , and coverage of rehabilitative services provided in a nursing facility. The 253.11age limit for elderly waiver services does not apply. In order to qualify for coverage, a 253.12recipient of emergency medical assistance is subject to the assessment and reassessment 253.13requirements of section 
         256B.0911. Initial and continued enrollment under this paragraph 253.14is subject to the limits of available funding.253.15    Sec. 6. Minnesota Statutes 2012, section 256B.0615, subdivision 3, is amended to read:253.16    Subd. 3. Eligibility. Peer support services may be made available to consumers of 253.17(1) the intensive rehabilitative mental health services under section 
         256B.0622; (2) adult 253.18rehabilitative mental health services under section 
         256B.0623; and (3) crisis stabilization 253.19and mental health mobile crisis intervention services under section 
         256B.0624.253.20    Sec. 7. Minnesota Statutes 2012, section 256B.0624, subdivision 2, is amended to read:253.21    Subd. 2. Definitions. For purposes of this section, the following terms have the 253.22meanings given them.253.23(a) "Mental health crisis" is an adult behavioral, emotional, or psychiatric situation 253.24which, but for the provision of crisis response services, would likely result in significantly 253.25reduced levels of functioning in primary activities of daily living, or in an emergency 253.26situation, or in the placement of the recipient in a more restrictive setting, including, but 253.27not limited to, inpatient hospitalization.253.28(b) "Mental health emergency" is an adult behavioral, emotional, or psychiatric 253.29situation which causes an immediate need for mental health services and is consistent 253.30with section 
         62Q.55.253.31A mental health crisis or emergency is determined for medical assistance service 253.32reimbursement by a physician, a mental health professional, or crisis mental health 253.33practitioner with input from the recipient whenever possible.254.1(c) "Mental health crisis assessment" means an immediate face-to-face assessment 254.2by a physician, a mental health professional, or mental health practitioner under the 254.3clinical supervision of a mental health professional, following a screening that suggests 254.4that the adult may be experiencing a mental health crisis or mental health emergency 254.5situation. It includes, when feasible, assessing whether the person might be willing to 254.6voluntarily accept treatment, determining whether the person has an advance directive, 254.7and obtaining information and history from involved family members or caretakers.254.8(d) "Mental health mobile crisis intervention services" means face-to-face, 254.9short-term intensive mental health services initiated during a mental health crisis or mental 254.10health emergency to help the recipient cope with immediate stressors, identify and utilize 254.11available resources and strengths, engage in voluntary treatment, and begin to return to the 254.12recipient's baseline level of functioning.254.13(1) This service is provided on site by a mobile crisis intervention team outside of 254.14an inpatient hospital setting. Mental health mobile crisis intervention services must be 254.15available 24 hours a day, seven days a week.254.16(2) The initial screening must consider other available services to determine which 254.17service intervention would best address the recipient's needs and circumstances.254.18(3) The mobile crisis intervention team must be available to meet promptly 254.19face-to-face with a person in mental health crisis or emergency in a community setting or 254.20hospital emergency room.254.21(4) The intervention must consist of a mental health crisis assessment and a crisis 254.22treatment plan.254.23(5) The team must be available to individuals who are experiencing a co-occurring 254.24substance use disorder, who do not need the level of care provided in a detoxification 254.25facility.254.26(5) (6) The treatment plan must include recommendations for any needed crisis 254.27stabilization services for the recipient, including engagement in treatment planning and 254.28family psychoeducation.254.29(e) "Mental health crisis stabilization services" means individualized mental 254.30health services provided to a recipient following crisis intervention services which are 254.31designed to restore the recipient to the recipient's prior functional level. Mental health 254.32crisis stabilization services may be provided in the recipient's home, the home of a family 254.33member or friend of the recipient, another community setting, or a short-term supervised, 254.34licensed residential program. Mental health crisis stabilization does not include partial 254.35hospitalization or day treatment. Mental health crisis stabilization services includes 254.36family psychoeducation.255.1    Sec. 8. Minnesota Statutes 2012, section 256B.0624, subdivision 5, is amended to read:255.2    Subd. 5. Mobile crisis intervention staff qualifications. For provision of adult 255.3mental health mobile crisis intervention services, a mobile crisis intervention team is 255.4comprised of at least two mental health professionals as defined in section 
         245.462, 255.5subdivision 18
         , clauses (1) to (6), or a combination of at least one mental health 255.6professional and one mental health practitioner as defined in section 
         245.462, subdivision 255.717
         , with the required mental health crisis training and under the clinical supervision of 255.8a mental health professional on the team. The team must have at least two people with 255.9at least one member providing on-site crisis intervention services when needed. Team 255.10members must be experienced in mental health assessment, crisis intervention techniques, 255.11treatment engagement strategies, working with families, and clinical decision-making 255.12under emergency conditions and have knowledge of local services and resources. 255.13The team must recommend and coordinate the team's services with appropriate local 255.14resources such as the county social services agency, mental health services, and local 255.15law enforcement when necessary.255.16    Sec. 9. Minnesota Statutes 2012, section 256B.0624, subdivision 6, is amended to read:255.17    Subd. 6. Crisis assessment and mobile intervention treatment planning. (a) 255.18Prior to initiating mobile crisis intervention services, a screening of the potential crisis 255.19situation must be conducted. The screening may use the resources of crisis assistance 255.20and emergency services as defined in sections 
         245.462, subdivision 6, and 
         245.469, 255.21subdivisions 1 and 2. The screening must gather information, determine whether a crisis 255.22situation exists, identify parties involved, and determine an appropriate response.255.23(b) If a crisis exists, a crisis assessment must be completed. A crisis assessment 255.24evaluates any immediate needs for which emergency services are needed and, as time 255.25permits, the recipient's current life situation, sources of stress, mental health problems 255.26and symptoms, strengths, cultural considerations, support network, vulnerabilities, current 255.27functioning, and the recipient's preferences as communicated directly by the recipient, 255.28or as communicated in a health care directive as described in chapters 145C and 253B, 255.29the treatment plan described under paragraph (d), a crisis prevention plan, or a wellness 255.30recovery action plan.255.31(c) If the crisis assessment determines mobile crisis intervention services are needed, 255.32the intervention services must be provided promptly. As opportunity presents during the 255.33intervention, at least two members of the mobile crisis intervention team must confer 255.34directly or by telephone about the assessment, treatment plan, and actions taken and 255.35needed. At least one of the team members must be on site providing crisis intervention 256.1services. If providing on-site crisis intervention services, a mental health practitioner must 256.2seek clinical supervision as required in subdivision 9.256.3(d) The mobile crisis intervention team must develop an initial, brief crisis treatment 256.4plan as soon as appropriate but no later than 24 hours after the initial face-to-face 256.5intervention. The plan must address the needs and problems noted in the crisis assessment 256.6and include measurable short-term goals, cultural considerations, and frequency and type 256.7of services to be provided to achieve the goals and reduce or eliminate the crisis. The 256.8treatment plan must be updated as needed to reflect current goals and services.256.9(e) The team must document which short-term goals have been met and when no 256.10further crisis intervention services are required.256.11(f) If the recipient's crisis is stabilized, but the recipient needs a referral to other 256.12services, the team must provide referrals to these services. If the recipient has a case 256.13manager, planning for other services must be coordinated with the case manager. If the 256.14recipient is unable to follow up on the referral, the team must link the recipient to the 256.15service and follow up to ensure the recipient is receiving the service.256.16(g) If the recipient's crisis is stabilized and the recipient does not have an advance 256.17directive, the case manager or crisis team shall offer to work with the recipient to develop 256.18one.256.19    Sec. 10. Minnesota Statutes 2012, section 256B.0624, subdivision 10, is amended to 256.20read:256.21    Subd. 10. Recipient file. Providers of mobile crisis intervention or crisis stabilization 256.22services must maintain a file for each recipient containing the following information:256.23(1) individual crisis treatment plans signed by the recipient, mental health 256.24professional, and mental health practitioner who developed the crisis treatment plan, or 256.25if the recipient refused to sign the plan, the date and reason stated by the recipient as to 256.26why the recipient would not sign the plan;256.27(2) signed release forms;256.28(3) recipient health information and current medications;256.29(4) emergency contacts for the recipient;256.30(5) case records which document the date of service, place of service delivery, 256.31signature of the person providing the service, and the nature, extent, and units of service. 256.32Direct or telephone contact with the recipient's family or others should be documented;256.33(6) required clinical supervision by mental health professionals;256.34(7) summary of the recipient's case reviews by staff; and256.35(8) any written information by the recipient that the recipient wants in the file; and257.1(9) an advance directive, if there is one available.257.2Documentation in the file must comply with all requirements of the commissioner.257.3    Sec. 11. Minnesota Statutes 2012, section 256B.0625, is amended by adding a 257.4subdivision to read:257.5    Subd. 64.Medical assistance.Medical assistance, subject to federal approval, 257.6covers mental health intensive community rehabilitation services. This subdivision is 257.7effective no later than 120 days after federal approval.257.8    Sec. 12. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:257.9    Subd. 2. Monthly rates; exemptions.The maximum group residential housing rate 257.10does not apply This subdivision applies to a residence that on August 1, 1984, was licensed 257.11by the commissioner of health only as a boarding care home, certified by the commissioner 257.12of health as an intermediate care facility, and licensed by the commissioner of human 257.13services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the 257.14provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision 257.15shall be determined under section 
         256B.431, or under section 
         256B.434 if the facility is 257.16accepted by the commissioner for participation in the alternative payment demonstration 257.17project. The rate paid to this facility shall also include adjustments to the group residential 257.18housing rate according to subdivision 1, and any adjustments applicable to supplemental 257.19service rates statewide.257.20    Sec. 13. DETOXIFICATION SERVICES PLAN.257.21The commissioner shall develop a plan to include detoxification services as a 257.22covered medical assistance benefit and present the plan to the members of the legislative 257.23committees having jurisdiction over health and human services provisions and funding 257.24by December 15, 2014.257.25    Sec. 14. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO 257.26ARREST; WORKING GROUP.257.27    Subdivision 1.Working group established; study and draft legislation required.257.28The commissioner of human services may convene a working group to address issues 257.29related to offenders with mental illness who are arrested or subject to arrest. The working 257.30group shall consider the special needs of these offenders and determine how best to 257.31provide for these needs. Specifically, the group shall consider the efficacy of a facility 257.32that would serve as a central point for accepting, assessing, and addressing the needs of 258.1offenders with mental illness brought in by law enforcement as an alternative to arrest or 258.2following arrest. The facility would consolidate and coordinate existing resources as well 258.3as offer new resources that would provide a continuum of care addressing the immediate, 258.4short-term, and long-term needs of these offenders. The facility would do the following for 258.5these offenders: perform timely, credible, and useful mental health assessments; identify 258.6community placement opportunities; coordinate community care; make recommendations 258.7concerning pretrial release when appropriate; and, in some cases, provide direct services 258.8to offenders at the facility or in nearby jails. The working group shall establish criteria 258.9to determine which offenders may be admitted to the facility. The facility would be 258.10located in the metropolitan region and serve the needs of nearby counties. The facility 258.11would represent a partnership between the state, local units of government, and the private 258.12sector. In addition, the working group may consider how similar facilities could function 258.13in outstate areas. When studying this issue, the working group shall examine what other 258.14states have done in this area to determine what programs have been successful and use 258.15those programs as models in developing the program in Minnesota. The working group 258.16may also study and make recommendations on other ways to improve the process for 258.17addressing and assisting these offenders. The commissioner shall enter into an agreement 258.18with NAMI Minnesota to carry out the work of the working group.258.19    Subd. 2.Membership.The commissioner shall ensure that the working group 258.20has expertise and a broad range of interests represented, including, but not limited to: 258.21prosecutors; law enforcement, including jail staff; correctional officials; community 258.22corrections staff; probation officials; criminal defense attorneys; judges; county and city 258.23officials; mental health advocates; mental health professionals; and hospital and health 258.24care officials.258.25    Subd. 3.Administrative issues.(a) The commissioner shall convene the first 258.26meeting of the working group by September 1, 2014. NAMI Minnesota shall provide 258.27meeting space and administrative support to the working group. The working group shall 258.28select a chair from among its members.258.29(b) The commissioner may solicit in-kind support from work group member 258.30agencies to accomplish its assigned duties.258.31    Subd. 4.Report required.By January 1, 2015, the working group shall submit a 258.32report to the chairs and ranking minority members of the senate and house of representatives 258.33committees and divisions having jurisdiction over human services and public safety. The 258.34report must summarize the working group's activities and include its recommendations 258.35and draft legislation. The recommendations must be specific and include estimates of the 258.36costs involved in implementing the recommendations, including the funding sources that 259.1might be used to pay for it. The working group shall explore potential funding sources 259.2at the federal, local, and private levels, and provide this information in the report. In 259.3addition, the report must include draft legislation to implement the recommendations.259.4EFFECTIVE DATE.This section is effective the day following final enactment.259.5    Sec. 15. REPORT ON RATE SETTING METHODOLOGY FOR MENTAL 259.6HEALTH SERVICES.259.7The commissioner of human services shall provide a report to the chairs of the 259.8Health and Human Services Finance Division by February 1, 2015, that assesses the 259.9current rate setting methodology for intensive residential treatment services (IRTS), adult 259.10crisis, and assertive community treatment (ACT). The report will include an assessment 259.11of alternative payment structures consistent with the intent and direction of the federal 259.12centers for Medicare and Medicaid services which could provide adequate reimbursement 259.13to sustain community-based mental health services regardless of geographic location. 259.14Stakeholders will be included in the development of the report and the report will also 259.15include concerns regarding payment rates for other mental health services that may 259.16require further analysis in the future.259.17ARTICLE 16259.18CHILDREN, FAMILIES, AND NORTHSTAR CARE259.19    Section 1. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:259.20    Subd. 5. Fingerprints. (a) Except as provided in paragraph (c), for any background 259.21study completed under this chapter, when the commissioner has reasonable cause to 259.22believe that further pertinent information may exist on the subject of the background 259.23study, the subject shall provide the commissioner with a set of classifiable fingerprints 259.24obtained from an authorized agency.259.25    (b) For purposes of requiring fingerprints, the commissioner has reasonable cause 259.26when, but not limited to, the:259.27    (1) information from the Bureau of Criminal Apprehension indicates that the subject 259.28is a multistate offender;259.29    (2) information from the Bureau of Criminal Apprehension indicates that multistate 259.30offender status is undetermined; or259.31    (3) commissioner has received a report from the subject or a third party indicating 259.32that the subject has a criminal history in a jurisdiction other than Minnesota.260.1    (c) Except as specified under section 
         245C.04, subdivision 1, paragraph (d), for 260.2background studies conducted by the commissioner for child foster care or, adoptions, or a 260.3transfer of permanent legal and physical custody of a child, the subject of the background 260.4study, who is 18 years of age or older, shall provide the commissioner with a set of 260.5classifiable fingerprints obtained from an authorized agency.260.6    Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is 260.7amended to read:260.8    Subdivision 1. Background studies conducted by Department of Human 260.9Services. (a) For a background study conducted by the Department of Human Services, 260.10the commissioner shall review:260.11    (1) information related to names of substantiated perpetrators of maltreatment of 260.12vulnerable adults that has been received by the commissioner as required under section 260.13626.557, subdivision 9c
         , paragraph (j);260.14    (2) the commissioner's records relating to the maltreatment of minors in licensed 260.15programs, and from findings of maltreatment of minors as indicated through the social 260.16service information system;260.17    (3) information from juvenile courts as required in subdivision 4 for individuals 260.18listed in section 
         245C.03, subdivision 1, paragraph (a), when there is reasonable cause;260.19    (4) information from the Bureau of Criminal Apprehension, including information 260.20regarding a background study subject's registration in Minnesota as a predatory offender 260.21under section 
         243.166;260.22    (5) except as provided in clause (6), information from the national crime information 260.23system when the commissioner has reasonable cause as defined under section 
         245C.05, 260.24subdivision 5; and260.25    (6) for a background study related to a child foster care application for licensure, a 260.26transfer of permanent legal and physical custody of a child under sections 260C.503 to 260.27260C.515, or adoptions, the commissioner shall also review:260.28    (i) information from the child abuse and neglect registry for any state in which the 260.29background study subject has resided for the past five years; and260.30    (ii) information from national crime information databases, when the background 260.31study subject is 18 years of age or older.260.32    (b) Notwithstanding expungement by a court, the commissioner may consider 260.33information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 260.34received notice of the petition for expungement and the court order for expungement is 260.35directed specifically to the commissioner.261.1    (c) The commissioner shall also review criminal case information received according 261.2to section 
         245C.04, subdivision 4a, from the Minnesota court information system that 261.3relates to individuals who have already been studied under this chapter and who remain 261.4affiliated with the agency that initiated the background study.261.5    Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:261.6    Subdivision 1. Adoption and transfer of permanent legal and physical custody;261.7 Background studies conducted by commissionerstudy requirements.(a) Before 261.8placement of a child for purposes of adoption, the commissioner shall conduct a 261.9background study on individuals listed in section sections259.41, subdivision 3, and 261.10260C.611, for county agencies and private agencies licensed to place children for adoption.261.11 When a prospective adoptive parent is seeking to adopt a child who is currently placed in 261.12the prospective adoptive parent's home and is under the guardianship of the commissioner 261.13according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive 261.14parent holds a child foster care license, a new background study is not required when:261.15(1) a background study was completed on persons required to be studied under section 261.16245C.03 in connection with the application for child foster care licensure after July 1, 2007;261.17(2) the background study included a review of the information in section 245C.08, 261.18subdivisions 1, 3, and 4; and261.19(3) as a result of the background study, the individual was either not disqualified 261.20or, if disqualified, the disqualification was set aside under section 245C.22, or a variance 261.21was issued under section 245C.30.261.22(b) Before the kinship placement agreement is signed for the purpose of transferring 261.23permanent legal and physical custody to a relative under sections 260C.503 to 260C.515, 261.24the commissioner shall conduct a background study on each person age 13 or older living 261.25in the home. When a prospective relative custodian has a child foster care license, a new 261.26background study is not required when:261.27(1) a background study was completed on persons required to be studied under section 261.28245C.03 in connection with the application for child foster care licensure after July 1, 2007;261.29(2) the background study included a review of the information in section 245C.08, 261.30subdivisions 1, 3, and 4; and261.31(3) as a result of the background study, the individual was either not disqualified or, 261.32if disqualified, the disqualification was set aside under section 245C.22, or a variance was 261.33issued under section 245C.30. The commissioner and the county agency shall expedite any 261.34request for a set aside or variance for a background study required under chapter 256N.262.1    Sec. 4. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:262.2    Subd. 4. Information commissioner reviews. (a) The commissioner shall review 262.3the following information regarding the background study subject:262.4    (1) the information under section 
         245C.08, subdivisions 1, 3, and 4;262.5    (2) information from the child abuse and neglect registry for any state in which the 262.6subject has resided for the past five years; and262.7    (3) information from national crime information databases, when required under 262.8section 
         245C.08.262.9    (b) The commissioner shall provide any information collected under this subdivision 262.10to the county or private agency that initiated the background study. The commissioner 262.11shall also provide the agency:262.12(1) notice whether the information collected shows that the subject of the background 262.13study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and262.14(2) for background studies conducted under subdivision 1, paragraph (a), the date of 262.15all adoption-related background studies completed on the subject by the commissioner 262.16after June 30, 2007, and the name of the county or private agency that initiated the 262.17adoption-related background study.262.18    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is 262.19amended to read:262.20    Subdivision 1. Children eligible for subsidized adoption assistance. Medical 262.21assistance may be paid for a child eligible for or receiving adoption assistance payments 262.22under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 262.23676, and to any child who is not title IV-E eligible but who was determined eligible for 262.24adoption assistance under chapter 256N or section 
         259A.10, subdivision 2, and has a 262.25special need for medical or rehabilitative care.262.26    Sec. 6. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:262.27    Subd. 13. Work activity. (a) "Work activity" means any activity in a participant's 262.28approved employment plan that leads to employment. For purposes of the MFIP program, 262.29this includes activities that meet the definition of work activity under the participation 262.30requirements of TANF. Work activity includes:262.31    (1) unsubsidized employment, including work study and paid apprenticeships or 262.32internships;263.1    (2) subsidized private sector or public sector employment, including grant diversion 263.2as specified in section 
         256J.69, on-the-job training as specified in section 
         256J.66, paid 263.3work experience, and supported work when a wage subsidy is provided;263.4    (3) unpaid work experience, including community service, volunteer work, 263.5the community work experience program as specified in section 
         256J.67, unpaid 263.6apprenticeships or internships, and supported work when a wage subsidy is not provided. 263.7Unpaid work experience is only an option if the participant has been unable to obtain or 263.8maintain paid employment in the competitive labor market, and no paid work experience 263.9programs are available to the participant. Prior to placing a participant in unpaid work, 263.10the county must inform the participant that the participant will be notified if a paid work 263.11experience or supported work position becomes available. Unless a participant consents in 263.12writing to participate in unpaid work experience, the participant's employment plan may 263.13only include unpaid work experience if including the unpaid work experience in the plan 263.14will meet the following criteria:263.15    (i) the unpaid work experience will provide the participant specific skills or 263.16experience that cannot be obtained through other work activity options where the 263.17participant resides or is willing to reside; and263.18    (ii) the skills or experience gained through the unpaid work experience will result 263.19in higher wages for the participant than the participant could earn without the unpaid 263.20work experience;263.21    (4) job search including job readiness assistance, job clubs, job placement, 263.22job-related counseling, and job retention services;263.23    (5) job readiness education, including English as a second language (ESL) or 263.24functional work literacy classes as limited by the provisions of section 256J.531, 263.25subdivision 2, general educational development (GED) or adult high school diploma 263.26course work, high school completion, and adult basic education as limited by the 263.27provisions of section 256J.531, subdivision 1;263.28    (6) job skills training directly related to employment, including postsecondary 263.29education and training that can reasonably be expected to lead to employment, as limited 263.30by the provisions of section 256J.53;263.31    (7) providing child care services to a participant who is working in a community 263.32service program;263.33    (8) activities included in the employment plan that is developed under section 263.34256J.521, subdivision 3
         ; and264.1    (9) preemployment activities including chemical and mental health assessments, 264.2treatment, and services; learning disabilities services; child protective services; family 264.3stabilization services; or other programs designed to enhance employability.264.4(b) "Work activity" does not include activities done for political purposes as defined 264.5in section 
         211B.01, subdivision 6.264.6    Sec. 7. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:264.7    Subdivision 1. Length of program.(a) In order for a postsecondary education 264.8or training program to be an approved work activity as defined in section 
         256J.49, 264.9subdivision 13
         , clause (6), it must be a program lasting 24 monthsfour years or less, and 264.10the participant must meet the requirements of subdivisions 2, 3, and 5.264.11(b) Participants with a high school diploma, general educational development 264.12(GED) credential, or an adult high school diploma must be informed of the opportunity 264.13to participate in postsecondary education or training while in the Minnesota family 264.14investment program.264.15    Sec. 8. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:264.16    Subd. 2. Approval of Postsecondary education or training. (a) In order for a 264.17postsecondary education or training program to be an approved activity in an employment 264.18plan, the plan must include additional work activities if the education and training 264.19activities do not meet the minimum hours required to meet the federal work participation 264.20rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.264.21    (b) Participants seeking approval of a postsecondary education or training plan 264.22must provide documentation that:264.23    (1) the employment goal can only be met with the additional education or training;264.24 Participants who are interested in participating in postsecondary education or training as 264.25part of their employment plan must discuss their education plans with their job counselor. 264.26Job counselors will work with participants to evaluate the options by:264.27    (2)(1) advising whether there are suitable employment opportunities that require 264.28the specific education or training in the area in which the participant resides or is willing 264.29to reside;264.30    (3) the education or training will result in significantly higher wages for the 264.31participant than the participant could earn without the education or training;264.32    (4)(2) assisting the participant in exploring whether the participant can meet the 264.33requirements for admission into the program; and265.1    (5) there is a reasonable expectation that the participant will complete the training 265.2program based on such factors as(3) discussing the participant's strengths and challenges 265.3based on the participant's MFIP assessment, previous education, training, and work 265.4history; current motivation; and changes in previous circumstances.265.5(b) The requirements of this subdivision do not apply to participants who are in:265.6(1) a recognized career pathway program that leads to stackable credentials;265.7(2) a training program lasting 12 weeks or fewer; or265.8(3) the final year of a multiyear postsecondary education or training program.265.9    Sec. 9. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:265.10    Subd. 5. Requirements after postsecondary education or training. Upon 265.11completion of an approved education or training program, a participant who does not meet 265.12the participation requirements in section 
         256J.55, subdivision 1, through unsubsidized 265.13employment must participate in job search. If, after six12 weeks of job search, the 265.14participant does not find a full-time job consistent with the employment goal, the 265.15participant must accept any offer of full-time suitable employment, or meet with the job 265.16counselor to revise the employment plan to include additional work activities necessary to 265.17meet hourly requirements.265.18    Sec. 10. Minnesota Statutes 2012, section 256J.531, is amended to read:265.19256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.265.20    Subdivision 1. Approval of adult basic education.With the exception of classes 265.21related to obtaining a general educational development credential (GED), a participant 265.22must have reading or mathematics proficiency below a ninth grade level in order for 265.23adult basic education classes to be anA participant who lacks a high school diploma, 265.24general educational development (GED) credential, or an adult high school diploma 265.25must be allowed to pursue these credentials as an approved work activity, provided 265.26that the participant is making satisfactory progress. Participants eligible to pursue 265.27a general educational development (GED) credential or adult high school diploma 265.28under this subdivision must be informed of the opportunity to participate while in the 265.29Minnesota family investment program. The employment plan must also specify that 265.30the participant fulfill no more than one-half of the participation requirements in section 265.31256J.55, subdivision 1, through attending adult basic education or general educational 265.32development classes.265.33    Subd. 2. Approval of English as a second language. In order for English as a 265.34second language (ESL) classes to be an approved work activity in an employment plan, a 266.1participant must be below a spoken language proficiency level of SPL6 or its equivalent, 266.2as measured by a nationally recognized test. In approving ESL as a work activity, the job 266.3counselor must give preference to enrollment in a functional work literacy program, 266.4if one is available, over a regular ESL program. A participant may not be approved 266.5for more than a combined total of 24 months of ESL classes while participating in the 266.6diversionary work program and the employment and training services component of 266.7MFIP. The employment plan must also specify that the participant fulfill no more than 266.8one-half of the participation requirements in section 256J.55, subdivision 1, through 266.9attending ESL classes. For participants enrolled in functional work literacy classes, no 266.10more than two-thirds of the participation requirements in section 256J.55, subdivision 1, 266.11may be met through attending functional work literacy classes.266.12    Sec. 11. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding 266.13a subdivision to read:266.14    Subd. 14a.Licensed child foster parent."Licensed child foster parent" means a 266.15person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to 266.162960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.266.17    Sec. 12. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is 266.18amended to read:266.19    Subd. 2. Placement in foster care. To be eligible for foster care benefits under this 266.20section, the child must be in placement away from the child's legal parent or, guardian, or 266.21Indian custodian as defined in section 260.755, subdivision 10, and all of the following 266.22criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):266.23(1) the legally responsible agency must have placement authority and care 266.24responsibility, including for a child 18 years old or older and under age 21, who maintains 266.25eligibility for foster care consistent with section 260C.451;266.26(2) (1) the legally responsible agency must have placement authority to place the 266.27child with: (i) a voluntary placement agreement or a court order, consistent with sections 266.28260B.198
         , 
         260C.001, and260D.01, or continued eligibility consistent with section 266.29260C.451
          for a child 18 years old or older and under age 21 who maintains eligibility for 266.30foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe 266.31that is consistent with United States Code, title 42, section 672(a)(2); and266.32(3) (2) the child must be is placed in an emergency relative placement under section 266.33245A.035, with  a licensed foster family setting, foster residence setting, or treatment 266.34foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a 267.1family foster home licensed or approved by a tribal agency or, for a child 18 years old or 267.2older and under age 21, child foster parent; or267.3(3) the child is placed in one of the following unlicensed child foster care settings:267.4(i) an emergency relative placement under tribal licensing regulations or section 267.5245A.035, with the legally responsible agency ensuring the relative completes the required 267.6child foster care application process;267.7(ii) a licensed adult foster home with an approved age variance under section 267.8245A.16 for no more than six months;267.9(iii) for a child 18 years old or older and under age 21 who is eligible for extended 267.10foster care under section 260C.451,  an unlicensed supervised independent living setting 267.11approved by the agency responsible for the youth's child's care.; or267.12(iv) a preadoptive placement in a home specified in section 245A.03, subdivision 267.132, paragraph (a), clause (9), with an approved adoption home study and signed adoption 267.14placement agreement.267.15    Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.21, is amended by adding 267.16a subdivision to read:267.17    Subd. 7.Background study.(a) A county or private agency conducting a 267.18background study for purposes of child foster care licensing or approval must conduct 267.19the study in accordance with chapter 245C and must meet the requirements in United 267.20States Code, title 42, section 671(a)(20).267.21(b) A Minnesota tribe conducting a background study for purposes of child foster 267.22care licensing or approval must conduct the study in accordance with the requirements in 267.23United States Code, title 42, section 671(a)(20), when applicable.267.24    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is 267.25amended to read:267.26    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship 267.27assistance under this section, there must be a judicial determination under section 267.28260C.515, subdivision 4
         , that a transfer of permanent legal and physical custody to a 267.29relative is in the child's best interest. For a child under jurisdiction of a tribal court, a 267.30judicial determination under a similar provision in tribal code indicating that a relative 267.31will assume the duty and authority to provide care, control, and protection of a child who 267.32is residing in foster care, and to make decisions regarding the child's education, health 267.33care, and general welfare until adulthood, and that this is in the child's best interest is 267.34considered equivalent. Additionally, a child must:268.1(1) have been removed from the child's home pursuant to a voluntary placement 268.2agreement or court order;268.3(2)(i) have resided in with the prospective relative custodian who has been a 268.4licensed child foster care parent for at least six consecutive months in the home of the 268.5prospective relative custodian; or268.6(ii) have received from the commissioner an exemption from the requirement in item 268.7(i) from the court that the prospective relative custodian has been a licensed child foster 268.8parent for at least six consecutive months, based on a determination that:268.9(A) an expedited move to permanency is in the child's best interest;268.10(B) expedited permanency cannot be completed without provision of guardianship 268.11assistance; and268.12(C) the prospective relative custodian is uniquely qualified to meet the child's needs, 268.13as defined in section 260C.212, subdivision 2, on a permanent basis;268.14(D) the child and prospective relative custodian meet the eligibility requirements 268.15of this section; and268.16(E) efforts were made by the legally responsible agency to place the child with the 268.17prospective relative custodian as a licensed child foster parent for six consecutive months 268.18before permanency, or an explanation why these efforts were not in the child's best interests;268.19(3) meet the agency determinations regarding permanency requirements in 268.20subdivision 2;268.21(4) meet the applicable citizenship and immigration requirements in subdivision 3;268.22(5) have been consulted regarding the proposed transfer of permanent legal and 268.23physical custody to a relative, if the child is at least 14 years of age or is expected to attain 268.2414 years of age prior to the transfer of permanent legal and physical custody; and268.25(6) have a written, binding agreement under section 
         256N.25 among the caregiver or 268.26caregivers, the financially responsible agency, and the commissioner established prior to 268.27transfer of permanent legal and physical custody.268.28(b) In addition to the requirements in paragraph (a), the child's prospective relative 268.29custodian or custodians must meet the applicable background study requirements in 268.30subdivision 4.268.31(c) To be eligible for title IV-E guardianship assistance, a child must also meet any 268.32additional criteria in section 473(d) of the Social Security Act. The sibling of a child 268.33who meets the criteria for title IV-E guardianship assistance in section 473(d) of the 268.34Social Security Act is eligible for title IV-E guardianship assistance if the child and 268.35sibling are placed with the same prospective relative custodian or custodians, and the 268.36legally responsible agency, relatives, and commissioner agree on the appropriateness of 269.1the arrangement for the sibling. A child who meets all eligibility criteria except those 269.2specific to title IV-E guardianship assistance is entitled to guardianship assistance paid 269.3through funds other than title IV-E.269.4    Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is 269.5amended to read:269.6    Subd. 2. Agency determinations regarding permanency. (a) To be eligible for 269.7guardianship assistance, the legally responsible agency must complete the following 269.8determinations regarding permanency for the child prior to the transfer of permanent 269.9legal and physical custody:269.10(1) a determination that reunification and adoption are not appropriate permanency 269.11options for the child; and269.12(2) a determination that the child demonstrates a strong attachment to the prospective 269.13relative custodian and the prospective relative custodian has a strong commitment to 269.14caring permanently for the child.269.15(b) The legally responsible agency shall document the determinations in paragraph 269.16(a) and the eligibility requirements in this section that comply with United States Code, 269.17title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a 269.18kinship placement agreement, which must be in the format prescribed by the commissioner 269.19and must be signed by the prospective relative custodian and the legally responsible 269.20agency. In the case of a Minnesota tribe, the determinations and eligibility requirements 269.21in this section may be provided in an alternative format approved by the commissioner.269.22 Supporting information for completing each determination must be documented in the 269.23legally responsible agency's case file and make them available for review as requested 269.24by the financially responsible agency and the commissioner during the guardianship 269.25assistance eligibility determination process.269.26    Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is 269.27amended to read:269.28    Subd. 4. Background study. (a) A background study under section 245C.33 must be 269.29completed on each prospective relative custodian and any other adult residing in the home 269.30of the prospective relative custodian. The background study must meet the requirements of 269.31United States Code, title 42, section 671(a)(20). A study completed under section 245C.33 269.32meets this requirement. A background study on the prospective relative custodian or adult 269.33residing in the household previously completed under section 245C.04 chapter 245C for the 269.34purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota 270.1tribe, shall be used for the purposes of this section, provided that the background study is 270.2current meets the requirements of this subdivision and the prospective relative custodian is 270.3a licensed child foster parent at the time of the application for guardianship assistance.270.4(b) If the background study reveals:270.5(1) a felony conviction at any time for:270.6(i) child abuse or neglect;270.7(ii) spousal abuse;270.8(iii) a crime against a child, including child pornography; or270.9(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 270.10including other physical assault or battery; or270.11(2) a felony conviction within the past five years for:270.12(i) physical assault;270.13(ii) battery; or270.14(iii) a drug-related offense;270.15the prospective relative custodian is prohibited from receiving guardianship assistance 270.16on behalf of an otherwise eligible child.270.17    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 6, is 270.18amended to read:270.19    Subd. 6. Exclusions. (a) A child with a guardianship assistance agreement under 270.20Northstar Care for Children is not eligible for the Minnesota family investment program 270.21child-only grant under chapter 256J.270.22(b) The commissioner shall not enter into a guardianship assistance agreement with:270.23(1) a child's biological parent or stepparent;270.24(2) an individual assuming permanent legal and physical custody of a child or the 270.25equivalent under tribal code without involvement of the child welfare system; or270.26(3) an individual assuming permanent legal and physical custody of a child who was 270.27placed in Minnesota by another state or a tribe outside of Minnesota.270.28    Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 1, is 270.29amended to read:270.30    Subdivision 1. General eligibility requirements. (a) To be eligible for Northstar 270.31adoption assistance under this section, a child must:270.32(1) be determined to be a child with special needs under subdivision 2;270.33(2) meet the applicable citizenship and immigration requirements in subdivision 3;270.34(3)(i) meet the criteria in section 473 of the Social Security Act; or271.1(ii) have had foster care payments paid on the child's behalf while in out-of-home 271.2placement through the county social service agency or tribe and be either under the271.3 tribal social service agency prior to the issuance of a court order transferring the child's271.4 guardianship of to the commissioner or under the jurisdiction of a Minnesota tribe and 271.5adoption, according to tribal law, is in the child's documented permanency plan making 271.6the child a ward of the tribe; and271.7(4) have a written, binding agreement under section 
         256N.25 among the adoptive 271.8parent, the financially responsible agency, or, if there is no financially responsible agency, 271.9the agency designated by the commissioner, and the commissioner established prior to 271.10finalization of the adoption.271.11(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent 271.12or parents must meet the applicable background study requirements in subdivision 4.271.13(c) A child who meets all eligibility criteria except those specific to title IV-E adoption 271.14assistance shall receive adoption assistance paid through funds other than title IV-E.271.15(d) A child receiving Northstar kinship assistance payments under section 256N.22 271.16is eligible for Northstar adoption assistance when the criteria in paragraph (a) are met and 271.17the child's legal custodian is adopting the child.271.18    Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is 271.19amended to read:271.20    Subd. 4. Background study.(a) A background study under section 259.41 must be 271.21completed on each prospective adoptive parent. and all other adults residing in the home. 271.22A background study must meet the requirements of United States Code, title 42, section 271.23671(a)(20). A study completed under section 245C.33 meets this requirement. If the 271.24prospective adoptive parent is a licensed child foster parent licensed under chapter 245A 271.25or by a Minnesota tribe, the background study previously completed for the purposes of 271.26child foster care licensure shall be used for the purpose of this section, provided that the 271.27background study meets all other requirements of this subdivision and the prospective 271.28adoptive parent is a licensed child foster parent at the time of the application for adoption 271.29assistance.271.30(b) If the background study reveals:271.31(1) a felony conviction at any time for:271.32(i) child abuse or neglect;271.33(ii) spousal abuse;271.34(iii) a crime against a child, including child pornography; or272.1(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 272.2including other physical assault or battery; or272.3(2) a felony conviction within the past five years for:272.4(i) physical assault;272.5(ii) battery; or272.6(iii) a drug-related offense;272.7the adoptive parent is prohibited from receiving adoption assistance on behalf of an 272.8otherwise eligible child.272.9    Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 9, is 272.10amended to read:272.11    Subd. 9. Timing of and requests for reassessments. Reassessments for an eligible 272.12child must be completed within 30 days of any of the following events:272.13(1) for a child in continuous foster care, when six months have elapsed since 272.14completion of the last assessment the initial assessment, and annually thereafter;272.15(2) for a child in continuous foster care, change of placement location;272.16(3) for a child in foster care, at the request of the financially responsible agency or 272.17legally responsible agency;272.18(4) at the request of the commissioner; or272.19(5) at the request of the caregiver under subdivision 9 10.272.20    Sec. 21. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 10, 272.21is amended to read:272.22    Subd. 10. Caregiver requests for reassessments. (a) A caregiver may initiate 272.23a reassessment request for an eligible child in writing to the financially responsible 272.24agency or, if there is no financially responsible agency, the agency designated by the 272.25commissioner. The written request must include the reason for the request and the 272.26name, address, and contact information of the caregivers. For an eligible child with a 272.27guardianship assistance or adoption assistance agreement, The caregiver may request a 272.28reassessment if at least six months have elapsed since any previously requested review272.29 previous assessment or reassessment. For an eligible foster child, a foster parent may 272.30request reassessment in less than six months with written documentation that there have 272.31been significant changes in the child's needs that necessitate an earlier reassessment.272.32(b) A caregiver may request a reassessment of an at-risk child for whom a 272.33guardianship assistance or an adoption assistance agreement has been executed if the 272.34caregiver has satisfied the commissioner with written documentation from a qualified 273.1expert that the potential disability upon which eligibility for the agreement was based has 273.2manifested itself, consistent with section 
         256N.25, subdivision 3, paragraph (b).273.3(c) If the reassessment cannot be completed within 30 days of the caregiver's request, 273.4the agency responsible for reassessment must notify the caregiver of the reason for the 273.5delay and a reasonable estimate of when the reassessment can be completed.273.6(d) Notwithstanding any provision to the contrary in paragraph (a) or subdivision 9, 273.7when a Northstar kinship assistance agreement or adoption assistance agreement under 273.8section 256N.25 has been signed by all parties, no reassessment may be requested or 273.9conducted until the court finalizes the transfer of permanent legal and physical custody or 273.10finalizes the adoption, or the assistance agreement expires according to section 256N.25, 273.11subdivision 1.273.12    Sec. 22. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is 273.13amended to read:273.14    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible 273.15for guardianship assistance or adoption assistance, the financially responsible agency, or, 273.16if there is no financially responsible agency, the agency designated by the commissioner, 273.17must negotiate with the caregiver to develop an agreement under subdivision 1. If and when 273.18the caregiver and agency reach concurrence as to the terms of the agreement, both parties 273.19shall sign the agreement. The agency must submit the agreement, along with the eligibility 273.20determination outlined in sections 
         256N.22, subdivision 7, and 
         256N.23, subdivision 7, to 273.21the commissioner for final review, approval, and signature according to subdivision 1.273.22(b) A monthly payment is provided as part of the adoption assistance or guardianship 273.23assistance agreement to support the care of children unless the child is eligible for adoption 273.24assistance and determined to be an at-risk child, in which case the special at-risk monthly 273.25payment under section 256N.26, subdivision 7, must no payment will be made unless and 273.26until the caregiver obtains written documentation from a qualified expert that the potential 273.27disability upon which eligibility for the agreement was based has manifested itself.273.28(1) The amount of the payment made on behalf of a child eligible for guardianship 273.29assistance or adoption assistance is determined through agreement between the prospective 273.30relative custodian or the adoptive parent and the financially responsible agency, or, if there 273.31is no financially responsible agency, the agency designated by the commissioner, using 273.32the assessment tool established by the commissioner in section 
         256N.24, subdivision 2, 273.33and the associated benefit and payments outlined in section 
         256N.26. Except as provided 273.34under section 
         256N.24, subdivision 1, paragraph (c), the assessment tool establishes 273.35the monthly benefit level for a child under foster care. The monthly payment under a 274.1guardianship assistance agreement or adoption assistance agreement may be negotiated up 274.2to the monthly benefit level under foster care. In no case may the amount of the payment 274.3under a guardianship assistance agreement or adoption assistance agreement exceed the 274.4foster care maintenance payment which would have been paid during the month if the 274.5child with respect to whom the guardianship assistance or adoption assistance payment is 274.6made had been in a foster family home in the state.274.7(2) The rate schedule for the agreement is determined based on the age of the 274.8child on the date that the prospective adoptive parent or parents or relative custodian or 274.9custodians sign the agreement.274.10(3) The income of the relative custodian or custodians or adoptive parent or parents 274.11must not be taken into consideration when determining eligibility for guardianship 274.12assistance or adoption assistance or the amount of the payments under section 
         256N.26.274.13(4) With the concurrence of the relative custodian or adoptive parent, the amount of 274.14the payment may be adjusted periodically using the assessment tool established by the 274.15commissioner in section 
         256N.24, subdivision 2, and the agreement renegotiated under 274.16subdivision 3 when there is a change in the child's needs or the family's circumstances.274.17(5) The guardianship assistance or adoption assistance agreement of a child who is 274.18identified as at-risk receives the special at-risk monthly payment under section 256N.26, 274.19subdivision 7, unless and until the potential disability manifests itself, as documented by 274.20an appropriate professional, and the commissioner authorizes commencement of payment 274.21by modifying the agreement accordingly. A relative custodian or An adoptive parent 274.22of an at-risk child with a guardianship assistance or an adoption assistance agreement 274.23may request a reassessment of the child under section 256N.24, subdivision 9 10, and 274.24renegotiation of the guardianship assistance or adoption assistance agreement under 274.25subdivision 3 to include a monthly payment, if the caregiver has written documentation 274.26from a qualified expert that the potential disability upon which eligibility for the agreement 274.27was based has manifested itself. Documentation of the disability must be limited to 274.28evidence deemed appropriate by the commissioner.274.29(c) For guardianship assistance agreements:274.30(1) the initial amount of the monthly guardianship assistance payment must be 274.31equivalent to the foster care rate in effect at the time that the agreement is signed less any 274.32offsets under section 
         256N.26, subdivision 11, or a lesser negotiated amount if agreed to 274.33by the prospective relative custodian and specified in that agreement, unless the child is 274.34identified as at-risk or the guardianship assistance agreement is entered into when a child 274.35is under the age of six; and275.1(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 275.2receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 275.3and until the potential disability manifests itself, as documented by a qualified expert, and 275.4the commissioner authorizes commencement of payment by modifying the agreement 275.5accordingly; and275.6(3) (2) the amount of the monthly payment for a guardianship assistance agreement 275.7for a child, other than an at-risk child, who is under the age of six must be as specified in 275.8section 
         256N.26, subdivision 5.275.9(d) For adoption assistance agreements:275.10(1) for a child in foster care with the prospective adoptive parent immediately prior 275.11to adoptive placement, the initial amount of the monthly adoption assistance payment 275.12must be equivalent to the foster care rate in effect at the time that the agreement is signed 275.13less any offsets in section 
         256N.26, subdivision 11, or a lesser negotiated amount if agreed 275.14to by the prospective adoptive parents and specified in that agreement, unless the child is 275.15identified as at-risk or the adoption assistance agreement is entered into when a child is 275.16under the age of six;275.17(2) for an at-risk child who must be assigned level A as outlined in section 275.18256N.26
         and receive the special at-risk monthly payment under section 256N.26, 275.19subdivision 7, no payment will be made  unless and until the potential disability manifests 275.20itself, as documented by an appropriate professional, and the commissioner authorizes 275.21commencement of payment by modifying the agreement accordingly;275.22(3) the amount of the monthly payment for an adoption assistance agreement for 275.23a child under the age of six, other than an at-risk child, must be as specified in section 275.24256N.26, subdivision 5
         ;275.25(4) for a child who is in the guardianship assistance program immediately prior 275.26to adoptive placement, the initial amount of the adoption assistance payment must be 275.27equivalent to the guardianship assistance payment in effect at the time that the adoption 275.28assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive 275.29parent and specified in that agreement, unless the child is identified as an at-risk child; and275.30(5) for a child who is not in foster care placement or the guardianship assistance 275.31program immediately prior to adoptive placement or negotiation of the adoption assistance 275.32agreement, the initial amount of the adoption assistance agreement must be determined 275.33using the assessment tool and process in this section and the corresponding payment 275.34amount outlined in section 
         256N.26.276.1    Sec. 23. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is 276.2amended to read:276.3    Subd. 3. Renegotiation of agreement. (a) A relative custodian or adoptive 276.4parent of a child with a guardianship assistance or adoption assistance agreement may 276.5request renegotiation of the agreement when there is a change in the needs of the child 276.6or in the family's circumstances. When a relative custodian or adoptive parent requests 276.7renegotiation of the agreement, a reassessment of the child must be completed consistent 276.8with section 
         256N.24, subdivisions 9 and 10. If the reassessment indicates that the 276.9child's level has changed, the financially responsible agency or, if there is no financially 276.10responsible agency, the agency designated by the commissioner or the commissioner's 276.11designee, and the caregiver must renegotiate the agreement to include a payment with 276.12the level determined through the reassessment process. The agreement must not be 276.13renegotiated unless the commissioner, the financially responsible agency, and the caregiver 276.14mutually agree to the changes. The effective date of any renegotiated agreement must be 276.15determined by the commissioner.276.16(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship 276.17assistance or an adoption assistance agreement may request renegotiation of the agreement 276.18to include a monthly payment higher than the special at-risk monthly payment under 276.19section 
         256N.26, subdivision 7, if the caregiver has written documentation from a 276.20qualified expert that the potential disability upon which eligibility for the agreement 276.21was based has manifested itself. Documentation of the disability must be limited to 276.22evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a 276.23reassessment of the child must be conducted as outlined in section 
         256N.24, subdivision 276.249
         . The reassessment must be used to renegotiate the agreement to include an appropriate 276.25monthly payment. The agreement must not be renegotiated unless the commissioner, the 276.26financially responsible agency, and the caregiver mutually agree to the changes. The 276.27effective date of any renegotiated agreement must be determined by the commissioner.276.28(c) Renegotiation of a guardianship assistance or adoption assistance agreement is 276.29required when one of the circumstances outlined in section 
         256N.26, subdivision 13, 276.30occurs.276.31    Sec. 24. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is 276.32amended to read:276.33    Subdivision 1. Benefits. (a) There are three benefits under Northstar Care for 276.34Children: medical assistance, basic payment, and supplemental difficulty of care payment.276.35(b) A child is eligible for medical assistance under subdivision 2.277.1(c) A child is eligible for the basic payment under subdivision 3, except for a child 277.2assigned level A under section 
         256N.24, subdivision 1, because the child is determined to 277.3be an at-risk child receiving guardianship assistance or adoption assistance.277.4(d) A child, including a foster child age 18 to 21, is eligible for an additional 277.5supplemental difficulty of care payment under subdivision 4, as determined by the 277.6assessment under section 
         256N.24.277.7(e) An eligible child entering guardianship assistance or adoption assistance under 277.8the age of six receives a basic payment and supplemental difficulty of care payment as 277.9specified in subdivision 5.277.10(f) A child transitioning in from a pre-Northstar Care for Children program under 277.11section 
         256N.28, subdivision 7, shall receive basic and difficulty of care supplemental 277.12payments according to those provisions.277.13    Sec. 25. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is 277.14amended to read:277.15    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share 277.16of the maintenance payments, reduced by federal reimbursements under title IV-E of the 277.17Social Security Act, to be paid by the state and to be paid by the financially responsible 277.18agency.277.19(b) These state and local shares must initially be calculated based on the ratio of the 277.20average appropriate expenditures made by the state and all financially responsible agencies 277.21during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation, 277.22appropriate expenditures for the financially responsible agencies must include basic and 277.23difficulty of care payments for foster care reduced by federal reimbursements, but not 277.24including any initial clothing allowance, administrative payments to child care agencies 277.25specified in section 
         317A.907, child care, or other support or ancillary expenditures. For 277.26purposes of this calculation, appropriate expenditures for the state shall include adoption 277.27assistance and relative custody assistance, reduced by federal reimbursements.277.28(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017, 277.292018, and 2019, the commissioner shall adjust this initial percentage of state and local 277.30shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and 277.312014, taking into account appropriations for Northstar Care for Children and the turnover 277.32rates of the components. In making these adjustments, the commissioner's goal shall be to 277.33make these state and local expenditures other than the appropriations for Northstar Care 277.34for Children to be the same as they would have been had Northstar Care for Children not 277.35been implemented, or if that is not possible, proportionally higher or lower, as appropriate. 278.1Except for adjustments so that the costs of the phase-in are borne by the state, the state and 278.2local share percentages for fiscal year 2019 must be used for all subsequent years.278.3    Sec. 26. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:278.4    Subd. 11. Financial considerations. (a) Payment of relative custody assistance 278.5under a relative custody assistance agreement is subject to the availability of state funds 278.6and payments may be reduced or suspended on order of the commissioner if insufficient 278.7funds are available.278.8(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner 278.9shall reimburse the local agency in an amount equal to 100 percent of the relative custody 278.10assistance payments provided to relative custodians. The A local agency may not seek and 278.11the commissioner shall not provide reimbursement for the administrative costs associated 278.12with performing the duties described in subdivision 4.278.13(c) For the purposes of determining eligibility or payment amounts under MFIP, 278.14relative custody assistance payments shall be excluded in determining the family's 278.15available income.278.16(d) For expenditures made on or before December 31, 2014, upon receipt from a 278.17local agency of a claim for reimbursement, the commissioner shall reimburse the local 278.18agency in an amount equal to 100 percent of the relative custody assistance payments 278.19provided to relative custodians.278.20(e) For expenditures made on or after January 1, 2015, upon receipt from a local 278.21agency of a claim for reimbursement, the commissioner shall reimburse the local agency as 278.22part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.278.23    Sec. 27. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:278.24    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan 278.25shall be prepared within 30 days after any child is placed in foster care by court order or a 278.26voluntary placement agreement between the responsible social services agency and the 278.27child's parent pursuant to section 
         260C.227 or chapter 260D.278.28    (b) An out-of-home placement plan means a written document which is prepared 278.29by the responsible social services agency jointly with the parent or parents or guardian 278.30of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 278.31child is an Indian child, the child's foster parent or representative of the foster care facility, 278.32and, where appropriate, the child. For a child in voluntary foster care for treatment under 278.33chapter 260D, preparation of the out-of-home placement plan shall additionally include 278.34the child's mental health treatment provider. As appropriate, the plan shall be:279.1    (1) submitted to the court for approval under section 
         260C.178, subdivision 7;279.2    (2) ordered by the court, either as presented or modified after hearing, under section 279.3260C.178
         , subdivision 7, or 
         260C.201, subdivision 6; and279.4    (3) signed by the parent or parents or guardian of the child, the child's guardian ad 279.5litem, a representative of the child's tribe, the responsible social services agency, and, if 279.6possible, the child.279.7    (c) The out-of-home placement plan shall be explained to all persons involved in its 279.8implementation, including the child who has signed the plan, and shall set forth:279.9    (1) a description of the foster care home or facility selected, including how the 279.10out-of-home placement plan is designed to achieve a safe placement for the child in the 279.11least restrictive, most family-like, setting available which is in close proximity to the home 279.12of the parent or parents or guardian of the child when the case plan goal is reunification, 279.13and how the placement is consistent with the best interests and special needs of the child 279.14according to the factors under subdivision 2, paragraph (b);279.15    (2) the specific reasons for the placement of the child in foster care, and when 279.16reunification is the plan, a description of the problems or conditions in the home of the 279.17parent or parents which necessitated removal of the child from home and the changes the 279.18parent or parents must make in order for the child to safely return home;279.19    (3) a description of the services offered and provided to prevent removal of the child 279.20from the home and to reunify the family including:279.21    (i) the specific actions to be taken by the parent or parents of the child to eliminate 279.22or correct the problems or conditions identified in clause (2), and the time period during 279.23which the actions are to be taken; and279.24    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 279.25to achieve a safe and stable home for the child including social and other supportive 279.26services to be provided or offered to the parent or parents or guardian of the child, the 279.27child, and the residential facility during the period the child is in the residential facility;279.28    (4) a description of any services or resources that were requested by the child or the 279.29child's parent, guardian, foster parent, or custodian since the date of the child's placement 279.30in the residential facility, and whether those services or resources were provided and if 279.31not, the basis for the denial of the services or resources;279.32    (5) the visitation plan for the parent or parents or guardian, other relatives as defined 279.33in section 
         260C.007, subdivision 27, and siblings of the child if the siblings are not placed 279.34together in foster care, and whether visitation is consistent with the best interest of the 279.35child, during the period the child is in foster care;280.1    (6) when a child cannot return to or be in the care of either parent, documentation of 280.2steps to finalize the permanency plan for the child, including:280.3    (i) reasonable efforts to place the child for adoption or legal guardianship of the child 280.4if the court has issued an order terminating the rights of both parents of the child or of the 280.5only known, living parent of the child. At a minimum, the documentation must include 280.6consideration of whether adoption is in the best interests of the child, child-specific 280.7recruitment efforts such as relative search and the use of state, regional, and national 280.8adoption exchanges to facilitate orderly and timely placements in and outside of the state. 280.9A copy of this documentation shall be provided to the court in the review required under 280.10section 
         260C.317, subdivision 3, paragraph (b); and280.11    (ii) documentation necessary to support the requirements of the kinship placement 280.12agreement under section 256N.22 when adoption is determined not to be in the child's 280.13best interest;280.14    (7) efforts to ensure the child's educational stability while in foster care, including:280.15(i) efforts to ensure that the child remains in the same school in which the child was 280.16enrolled prior to placement or upon the child's move from one placement to another, 280.17including efforts to work with the local education authorities to ensure the child's 280.18educational stability; or280.19(ii) if it is not in the child's best interest to remain in the same school that the child 280.20was enrolled in prior to placement or move from one placement to another, efforts to 280.21ensure immediate and appropriate enrollment for the child in a new school;280.22(8) the educational records of the child including the most recent information 280.23available regarding:280.24    (i) the names and addresses of the child's educational providers;280.25    (ii) the child's grade level performance;280.26    (iii) the child's school record;280.27    (iv) a statement about how the child's placement in foster care takes into account 280.28proximity to the school in which the child is enrolled at the time of placement; and280.29(v) any other relevant educational information;280.30    (9) the efforts by the local agency to ensure the oversight and continuity of health 280.31care services for the foster child, including:280.32(i) the plan to schedule the child's initial health screens;280.33(ii) how the child's known medical problems and identified needs from the screens, 280.34including any known communicable diseases, as defined in section 
         144.4172, subdivision 280.352, will be monitored and treated while the child is in foster care;281.1(iii) how the child's medical information will be updated and shared, including 281.2the child's immunizations;281.3(iv) who is responsible to coordinate and respond to the child's health care needs, 281.4including the role of the parent, the agency, and the foster parent;281.5(v) who is responsible for oversight of the child's prescription medications;281.6(vi) how physicians or other appropriate medical and nonmedical professionals 281.7will be consulted and involved in assessing the health and well-being of the child and 281.8determine the appropriate medical treatment for the child; and281.9(vii) the responsibility to ensure that the child has access to medical care through 281.10either medical insurance or medical assistance;281.11(10) the health records of the child including information available regarding:281.12(i) the names and addresses of the child's health care and dental care providers;281.13(ii) a record of the child's immunizations;281.14(iii) the child's known medical problems, including any known communicable 281.15diseases as defined in section 
         144.4172, subdivision 2;281.16(iv) the child's medications; and281.17(v) any other relevant health care information such as the child's eligibility for 281.18medical insurance or medical assistance;281.19(11) an independent living plan for a child age 16 or older. The plan should include, 281.20but not be limited to, the following objectives:281.21    (i) educational, vocational, or employment planning;281.22    (ii) health care planning and medical coverage;281.23    (iii) transportation including, where appropriate, assisting the child in obtaining a 281.24driver's license;281.25    (iv) money management, including the responsibility of the agency to ensure that 281.26the youth annually receives, at no cost to the youth, a consumer report as defined under 281.27section 
         13C.001 and assistance in interpreting and resolving any inaccuracies in the report;281.28    (v) planning for housing;281.29    (vi) social and recreational skills; and281.30    (vii) establishing and maintaining connections with the child's family and 281.31community; and281.32    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 281.33and assessment information, specific services relating to meeting the mental health care 281.34needs of the child, and treatment outcomes.281.35    (d) The parent or parents or guardian and the child each shall have the right to legal 281.36counsel in the preparation of the case plan and shall be informed of the right at the time 282.1of placement of the child. The child shall also have the right to a guardian ad litem. 282.2If unable to employ counsel from their own resources, the court shall appoint counsel 282.3upon the request of the parent or parents or the child or the child's legal guardian. The 282.4parent or parents may also receive assistance from any person or social services agency 282.5in preparation of the case plan.282.6    After the plan has been agreed upon by the parties involved or approved or ordered 282.7by the court, the foster parents shall be fully informed of the provisions of the case plan 282.8and shall be provided a copy of the plan.282.9    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 282.10physical custodian, as appropriate, and the child, if appropriate, must be provided with 282.11a current copy of the child's health and education record.282.12    Sec. 28. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:282.13    Subd. 4. Custody to relative. The court may order permanent legal and physical 282.14custody to a fit and willing relative in the best interests of the child according to the 282.15following conditions requirements:282.16(1) an order for transfer of permanent legal and physical custody to a relative shall 282.17only be made after the court has reviewed the suitability of the prospective legal and 282.18physical custodian;282.19(2) in transferring permanent legal and physical custody to a relative, the juvenile 282.20court shall follow the standards applicable under this chapter and chapter 260, and the 282.21procedures in the Minnesota Rules of Juvenile Protection Procedure;282.22(3) a transfer of legal and physical custody includes responsibility for the protection, 282.23education, care, and control of the child and decision making on behalf of the child;282.24(4) a permanent legal and physical custodian may not return a child to the permanent 282.25care of a parent from whom the court removed custody without the court's approval and 282.26without notice to the responsible social services agency;282.27(5) the social services agency may file a petition naming a fit and willing relative as 282.28a proposed permanent legal and physical custodian. A petition for transfer of permanent 282.29legal and physical custody to a relative who is not a parent shall be accompanied by a 282.30kinship placement agreement under section 256N.22, subdivision 2, between the agency 282.31and proposed permanent legal and physical custodian;282.32(6) another party to the permanency proceeding regarding the child may file a 282.33petition to transfer permanent legal and physical custody to a relative, but the. The petition 282.34must include facts upon which the court can make the determination required under clause 282.35(7) and must be filed not later than the date for the required admit-deny hearing under 283.1section 
         260C.507; or if the agency's petition is filed under section 
         260C.503, subdivision 283.22
         , the petition must be filed not later than 30 days prior to the trial required under section 283.3260C.509
         ; and283.4(7) where a petition is for transfer of permanent legal and physical custody to a 283.5relative who is not a parent, the court must find that:283.6(i) transfer of permanent legal and physical custody and receipt of Northstar kinship 283.7assistance under chapter 256N, when requested and the child is eligible, is in the child's 283.8best interests;283.9(ii) adoption is not in the child's best interests based on the determinations in the 283.10kinship placement agreement required under section 256N.22, subdivision 2;283.11(iii) the agency made efforts to discuss adoption with the child's parent or parents, 283.12or the agency did not make efforts to discuss adoption and the reasons why efforts were 283.13not made; and283.14(iv) there are reasons to separate siblings during placement, if applicable;283.15(8) the court may finalize a permanent transfer of physical legal custody to a relative 283.16regardless of eligibility for Northstar kinship assistance under chapter 256N;283.17(9) the court may defer finalization of an order transferring permanent legal and 283.18physical custody to a relative when deferring finalization is necessary to determine 283.19eligibility for Northstar kinship assistance under chapter 256N; and283.20(7) (10) the juvenile court may maintain jurisdiction over the responsible social 283.21services agency, the parents or guardian of the child, the child, and the permanent legal 283.22and physical custodian for purposes of ensuring appropriate services are delivered to the 283.23child and permanent legal custodian for the purpose of ensuring conditions ordered by the 283.24court related to the care and custody of the child are met.283.25    Sec. 29. Minnesota Statutes 2012, section 260C.611, is amended to read:283.26260C.611 ADOPTION STUDY REQUIRED.283.27(a) An adoption study under section 
         259.41 approving placement of the child in the 283.28home of the prospective adoptive parent shall be completed before placing any child under 283.29the guardianship of the commissioner in a home for adoption. If a prospective adoptive 283.30parent has a current child foster care license under chapter 245A and is seeking to adopt 283.31a foster child who is placed in the prospective adoptive parent's home and is under the 283.32guardianship of the commissioner according to section 260C.325, subdivision 1, the child 283.33foster care home study meets the requirements of this section for an approved adoption 283.34home study if:284.1(1) the written home study on which the foster care license was based is completed 284.2in the commissioner's designated format, consistent with the requirements in sections 284.3260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules, 284.4part 2960.3060, subpart 4;284.5(2) the background studies on each prospective adoptive parent and all required 284.6household members were completed according to section 245C.33;284.7(3) the commissioner has not issued, within the last three years, a sanction on the 284.8license under section 245A.07 or an order of a conditional license under section 245A.06; 284.9and284.10(4) the legally responsible agency determines that the individual needs of the child 284.11are being met by the prospective adoptive parent through an assessment under section 284.12256N.24, subdivision 2, or a documented placement decision consistent with section 284.13260C.212, subdivision 2.284.14(b) If a prospective adoptive parent has previously held a foster care license or 284.15adoptive home study, any update necessary to the foster care license, or updated or new 284.16adoptive home study, if not completed by the licensing authority responsible for the 284.17previous license or home study, shall include collateral information from the previous 284.18licensing or approving agency, if available.284.19    Sec. 30. PARENT AWARE QUALITY RATING AND IMPROVEMENT 284.20SYSTEM ACCESSIBILITY REPORT.284.21    Subdivision 1.Recommendations.The commissioner of human services, in 284.22consultation with representatives from the child care and early childhood advocacy 284.23community, child care provider organizations, child care providers, organizations 284.24administering Parent Aware, the Departments of Education and Health, counties, and 284.25parents, shall make recommendations to the members of the legislative committees having 284.26jurisdiction over health and human services provisions and funding on increasing statewide 284.27accessibility for child care providers to the Parent Aware quality rating and improvement 284.28system and for increasing access to Parent Aware-rated programs for families with 284.29children. The recommendations must address the following factors impacting accessibility:284.30(1) availability of rated and nonrated programs by child care provider type, within 284.31rural and underserved areas, and for different cultural and non-English-speaking groups;284.32(2) time and resources necessary for child care providers to participate in Parent 284.33Aware at various rating levels, including cultural and linguistic considerations;284.34(3) federal child care development fund regulations; and284.35(4) other factors as determined by the commissioner.285.1    Subd. 2.Report.By February 15, 2015, the commissioner of human services 285.2shall report to the legislative committees with jurisdiction over the child care 285.3assistance programs and the Parent Aware quality rating and improvement system with 285.4recommendations to increase access for families and child care providers to Parent Aware, 285.5including benchmarks for achieving the maximum participation in Parent Aware-rated 285.6child care programs by families receiving child care assistance. 285.7EFFECTIVE DATE.This section is effective the day following final enactment.285.8    Sec. 31. REVISOR'S INSTRUCTION.285.9The revisor of statutes shall change the term "guardianship assistance" to "Northstar 285.10kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to 285.11refer to the program components related to Northstar Care for Children under Minnesota 285.12Statutes, chapter 256N.285.13    Sec. 32.  REPEALER.285.14Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.285.15ARTICLE 17285.16COMMUNITY FIRST SERVICES AND SUPPORTS285.17    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a 285.18subdivision to read:285.19    Subd. 8.Community first services and supports organizations.The 285.20commissioner shall conduct background studies on any individual required under section 285.21256B.85 to have a background study completed under this chapter.285.22    Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision 285.23to read:285.24    Subd. 7.Community first services and supports organizations.(a) The 285.25commissioner shall conduct a background study of an individual required to be studied 285.26under section 245C.03, subdivision 8, at least upon application for initial enrollment 285.27under section 256B.85.285.28(b) Before an individual described in section 245C.03, subdivision 8, begins a 285.29position allowing direct contact with a person served by an organization required to initiate 285.30a background study under section 256B.85, the organization must receive a notice from 285.31the commissioner that the support worker is:286.1(1) not disqualified under section 245C.14; or286.2(2) disqualified, but the individual has received a set-aside of the disqualification 286.3under section 245C.22.286.4    Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision 286.5to read:286.6    Subd. 10.Community first services and supports organizations.The 286.7commissioner shall recover the cost of background studies initiated by an agency-provider 286.8delivering services under section 256B.85, subdivision 11, or a financial management 286.9services contractor providing service functions under section 256B.85, subdivision 13, 286.10through a fee of no more than $20 per study, charged to the organization responsible for 286.11submitting the background study form. The fees collected under this subdivision are 286.12appropriated to the commissioner for the purpose of conducting background studies.286.13    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is 286.14amended to read:286.15    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in 286.16this subdivision have the meanings given.286.17(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming, 286.18dressing, bathing, mobility, positioning, and transferring.286.19(c) "Agency-provider model" means a method of CFSS under which a qualified 286.20agency provides services and supports through the agency's own employees and policies. 286.21The agency must allow the participant to have a significant role in the selection and 286.22dismissal of support workers of their choice for the delivery of their specific services 286.23and supports.286.24(d) "Behavior" means a description of a need for services and supports used to 286.25determine the home care rating and additional service units. The presence of Level I 286.26behavior is used to determine the home care rating. "Level I behavior" means physical 286.27aggression towards self or others or destruction of property that requires the immediate 286.28response of another person. If qualified for a home care rating as described in subdivision 286.298, additional service units can be added as described in subdivision 8, paragraph (f), for 286.30the following behaviors:286.31(1) Level I behavior;286.32(2) increased vulnerability due to cognitive deficits or socially inappropriate 286.33behavior; or287.1(3) increased need for assistance for recipients participants who are verbally 287.2aggressive or resistive to care so that time needed to perform activities of daily living is 287.3increased.287.4(e) "Budget model" means a service delivery method of CFSS that allows the use of 287.5a service budget and assistance from a financial management services (FMS) contractor 287.6for a participant to directly employ support workers and purchase supports and goods.287.7(e) (f) "Complex health-related needs" means an intervention listed in clauses (1) 287.8to (8) that has been ordered by a physician, and is specified in a community support 287.9plan, including:287.10(1) tube feedings requiring:287.11(i) a gastrojejunostomy tube; or287.12(ii) continuous tube feeding lasting longer than 12 hours per day;287.13(2) wounds described as:287.14(i) stage III or stage IV;287.15(ii) multiple wounds;287.16(iii) requiring sterile or clean dressing changes or a wound vac; or287.17(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require 287.18specialized care;287.19(3) parenteral therapy described as:287.20(i) IV therapy more than two times per week lasting longer than four hours for 287.21each treatment; or287.22(ii) total parenteral nutrition (TPN) daily;287.23(4) respiratory interventions, including:287.24(i) oxygen required more than eight hours per day;287.25(ii) respiratory vest more than one time per day;287.26(iii) bronchial drainage treatments more than two times per day;287.27(iv) sterile or clean suctioning more than six times per day;287.28(v) dependence on another to apply respiratory ventilation augmentation devices 287.29such as BiPAP and CPAP; and287.30(vi) ventilator dependence under section 
         256B.0652;287.31(5) insertion and maintenance of catheter, including:287.32(i) sterile catheter changes more than one time per month;287.33(ii) clean intermittent catheterization, and including self-catheterization more than 287.34six times per day; or287.35(iii) bladder irrigations;288.1(6) bowel program more than two times per week requiring more than 30 minutes to 288.2perform each time;288.3(7) neurological intervention, including:288.4(i) seizures more than two times per week and requiring significant physical 288.5assistance to maintain safety; or288.6(ii) swallowing disorders diagnosed by a physician and requiring specialized 288.7assistance from another on a daily basis; and288.8(8) other congenital or acquired diseases creating a need for significantly increased 288.9direct hands-on assistance and interventions in six to eight activities of daily living.288.10(f) (g) "Community first services and supports" or "CFSS" means the assistance and 288.11supports program under this section needed for accomplishing activities of daily living, 288.12instrumental activities of daily living, and health-related tasks through hands-on assistance 288.13to accomplish the task or constant supervision and cueing to accomplish the task, or the 288.14purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace 288.15the need for human assistance.288.16(g) (h) "Community first services and supports service delivery plan" or "service 288.17delivery plan" means a written summary of document detailing the services and supports 288.18chosen by the participant to meet assessed needs that is are within the approved CFSS 288.19service authorization amount. Services and supports are based on the community support 288.20plan identified in section 
         256B.0911 and coordinated services and support plan and budget 288.21identified in section 
         256B.0915, subdivision 6, if applicable, that is determined by the 288.22participant to meet the assessed needs, using a person-centered planning process.288.23(i) "Consultation services" means a Minnesota health care program enrolled provider 288.24organization that is under contract with the department and has the knowledge, skills, 288.25and ability to assist CFSS participants in using either the agency-provider model under 288.26subdivision 11 or the budget model under subdivision 13.288.27(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and 288.28toileting.288.29(i) (k) "Dependency" in activities of daily living means a person requires hands-on 288.30assistance or constant supervision and cueing to accomplish one or more of the activities 288.31of daily living every day or on the days during the week that the activity is performed; 288.32however, a child may not be found to be dependent in an activity of daily living if, 288.33because of the child's age, an adult would either perform the activity for the child or assist 288.34the child with the activity and the assistance needed is the assistance appropriate for 288.35a typical child of the same age.289.1(j) (l) "Extended CFSS" means CFSS services and supports under the289.2agency-provider model included in a service plan through one of the home and 289.3community-based services waivers and as approved and authorized under sections 289.4256B.0915
         ; 
         256B.092, subdivision 5; and 
         256B.49, which exceed the amount, duration, 289.5and frequency of the state plan CFSS services for participants.289.6(k) (m) "Financial management services contractor or vendor" or "FMS contractor"289.7 means a qualified organization having required for participants using the budget model 289.8under subdivision 13 that has a written contract with the department to provide vendor 289.9fiscal/employer agent financial management services necessary to use the budget model 289.10under subdivision 13 that (FMS). Services include but are not limited to: participant 289.11education and technical assistance; CFSS service delivery planning and budgeting;289.12filing and payment of federal and state payroll taxes on behalf of the participant; 289.13initiating criminal background checks; billing, making payments, and for approved CFSS 289.14services with authorized funds; monitoring of spending expenditures; accounting for 289.15and disbursing CFSS funds; providing assistance in obtaining and filing for liability, 289.16workers' compensation, and unemployment coverage; and assisting providing participant 289.17instruction and technical assistance to the participant in fulfilling employer-related 289.18requirements in accordance with Section 3504 of the Internal Revenue Code and the 289.19Internal Revenue Service Revenue Procedure 70-6 related regulations and interpretations, 289.20including Code of Federal Regulations, title 26, section 31.3504-1.289.21(l) "Budget model" means a service delivery method of CFSS that allows the use of 289.22an individualized CFSS service delivery plan and service budget and provides assistance 289.23from the financial management services contractor to facilitate participant employment of 289.24support workers and the acquisition of supports and goods.289.25(m) (n) "Health-related procedures and tasks" means procedures and tasks related 289.26to the specific needs of an individual that can be delegated taught or assigned by a 289.27state-licensed healthcare or mental health professional and performed by a support worker.289.28(n) (o) "Instrumental activities of daily living" means activities related to 289.29living independently in the community, including but not limited to: meal planning, 289.30preparation, and cooking; shopping for food, clothing, or other essential items; laundry; 289.31housecleaning; assistance with medications; managing finances; communicating needs 289.32and preferences during activities; arranging supports; and assistance with traveling around 289.33and participating in the community.289.34(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian, 289.35or another representative with legal authority to make decisions about services and 289.36supports for the participant. Other representatives with legal authority to make decisions 290.1include but are not limited to a health care agent or an attorney-in-fact authorized through 290.2a health care directive or power of attorney.290.3(p) (q) "Medication assistance" means providing verbal or visual reminders to take 290.4regularly scheduled medication, and includes any of the following supports listed in clauses 290.5(1) to (3) and other types of assistance, except that a support worker may not determine 290.6medication dose or time for medication or inject medications into veins, muscles, or skin:290.7(1) under the direction of the participant or the participant's representative, bringing 290.8medications to the participant including medications given through a nebulizer, opening a 290.9container of previously set-up medications, emptying the container into the participant's 290.10hand, opening and giving the medication in the original container to the participant, or 290.11bringing to the participant liquids or food to accompany the medication;290.12(2) organizing medications as directed by the participant or the participant's 290.13representative; and290.14(3) providing verbal or visual reminders to perform regularly scheduled medications.290.15(q) (r) "Participant's representative" means a parent, family member, advocate, 290.16or other adult authorized by the participant to serve as a representative in connection 290.17with the provision of CFSS. This authorization must be in writing or by another method 290.18that clearly indicates the participant's free choice. The participant's representative must 290.19have no financial interest in the provision of any services included in the participant's 290.20service delivery plan and must be capable of providing the support necessary to assist 290.21the participant in the use of CFSS. If through the assessment process described in 290.22subdivision 5 a participant is determined to be in need of a participant's representative, one 290.23must be selected. If the participant is unable to assist in the selection of a participant's 290.24representative, the legal representative shall appoint one. Two persons may be designated 290.25as a participant's representative for reasons such as divided households and court-ordered 290.26custodies. Duties of a participant's representatives may include:290.27(1) being available while care is services are provided in a method agreed upon by 290.28the participant or the participant's legal representative and documented in the participant's 290.29CFSS service delivery plan;290.30(2) monitoring CFSS services to ensure the participant's CFSS service delivery 290.31plan is being followed; and290.32(3) reviewing and signing CFSS time sheets after services are provided to provide 290.33verification of the CFSS services.290.34(r) (s) "Person-centered planning process" means a process that is directed by the 290.35participant to plan for services and supports. The person-centered planning process must:290.36(1) include people chosen by the participant;291.1(2) provide necessary information and support to ensure that the participant directs 291.2the process to the maximum extent possible, and is enabled to make informed choices 291.3and decisions;291.4(3) be timely and occur at time and locations of convenience to the participant;291.5(4) reflect cultural considerations of the participant;291.6(5) include strategies for solving conflict or disagreement within the process, 291.7including clear conflict-of-interest guidelines for all planning;291.8(6) provide the participant choices of the services and supports they receive and the 291.9staff providing those services and supports;291.10(7) include a method for the participant to request updates to the plan; and291.11(8) record the alternative home and community-based settings that were considered 291.12by the participant.291.13(s) (t) "Shared services" means the provision of CFSS services by the same CFSS 291.14support worker to two or three participants who voluntarily enter into an agreement to 291.15receive services at the same time and in the same setting by the same provider employer.291.16(t) "Support specialist" means a professional with the skills and ability to assist the 291.17participant using either the agency-provider model under subdivision 11 or the flexible 291.18spending model under subdivision 13, in services including but not limited to assistance 291.19regarding:291.20(1) the development, implementation, and evaluation of the CFSS service delivery 291.21plan under subdivision 6;291.22(2) recruitment, training, or supervision, including supervision of health-related tasks 291.23or behavioral supports appropriately delegated or assigned by a health care professional, 291.24and evaluation of support workers; and291.25(3) facilitating the use of informal and community supports, goods, or resources.291.26(u) "Support worker" means an a qualified and trained employee of the agency 291.27provider agency-provider or of the participant employer under the budget model who 291.28has direct contact with the participant and provides services as specified within the 291.29participant's service delivery plan.291.30(v) "Wages and benefits" means the hourly wages and salaries, the employer's 291.31share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' 291.32compensation, mileage reimbursement, health and dental insurance, life insurance, 291.33disability insurance, long-term care insurance, uniform allowance, contributions to 291.34employee retirement accounts, or other forms of employee compensation and benefits.291.35(w) "Worker training and development" means services for developing workers' 291.36skills as required by the participant's individual CFSS delivery plan that are arranged for 292.1or provided by the agency-provider or purchased by the participant employer. These 292.2services include training, education, direct observation and supervision, and evaluation 292.3and coaching of job skills and tasks, including supervision of health-related tasks or 292.4behavioral supports.292.5    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is 292.6amended to read:292.7    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the 292.8following:292.9(1) is a recipient an enrollee of medical assistance as determined under section 292.10256B.055
         , 
         256B.056, or 
         256B.057, subdivisions 5 and 9;292.11(2) is a recipient of participant in the alternative care program under section 292.12256B.0913
         ;292.13(3) is a waiver recipient participant as defined under section 
         256B.0915, 
         256B.092, 292.14256B.093
         , or 
         256B.49; or292.15(4) has medical services identified in a participant's individualized education 292.16program and is eligible for services as determined in section 
         256B.0625, subdivision 26.292.17(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also 292.18meet all of the following:292.19(1) require assistance and be determined dependent in one activity of daily living or 292.20Level I behavior based on assessment under section 
         256B.0911; and292.21(2) is not a recipient of participant under a family support grant under section 
         252.32;.292.22(3) lives in the person's own apartment or home including a family foster care setting 292.23licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a 292.24noncertified boarding care home or a boarding and lodging establishment under chapter 292.25157.292.26    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is 292.27amended to read:292.28    Subd. 5. Assessment requirements. (a) The assessment of functional need must:292.29(1) be conducted by a certified assessor according to the criteria established in 292.30section 
         256B.0911, subdivision 3a;292.31(2) be conducted face-to-face, initially and at least annually thereafter, or when there 292.32is a significant change in the participant's condition or a change in the need for services 292.33and supports, or at the request of the participant when the participant experiences a change 292.34in condition or needs a change in the services or supports; and293.1(3) be completed using the format established by the commissioner.293.2(b) A participant who is residing in a facility may be assessed and choose CFSS for 293.3the purpose of using CFSS to return to the community as described in subdivisions 3 293.4and 7, paragraph (a), clause (5).293.5(c) (b) The results of the assessment and any recommendations and authorizations 293.6for CFSS must be determined and communicated in writing by the lead agency's certified 293.7assessor as defined in section 
         256B.0911 to the participant and the agency-provider or 293.8financial management services provider FMS contractor chosen by the participant within 293.940 calendar days and must include the participant's right to appeal under section 
         256.045, 293.10subdivision 3
         .293.11(d) (c) The lead agency assessor may request authorize a temporary authorization 293.12for CFSS services to be provided under the agency-provider model. Authorization for 293.13a temporary level of CFSS services under the agency-provider model is limited to the 293.14time specified by the commissioner, but shall not exceed 45 days. The level of services 293.15authorized under this provision paragraph shall have no bearing on a future authorization.293.16 Upon expiration of the temporary authorization, the participant shall access the 293.17consultation service to complete their initial orientation and selection of a service model.293.18    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is 293.19amended to read:293.20    Subd. 6. Community first services and support service delivery plan. (a) The 293.21CFSS service delivery plan must be developed, implemented, and evaluated through a 293.22person-centered planning process by the participant, or the participant's representative 293.23or legal representative who may be assisted by a support specialist consultation services 293.24provider. The CFSS service delivery plan must reflect the services and supports that 293.25are important to the participant and for the participant to meet the needs assessed 293.26by the certified assessor and identified in the community support plan under section 293.27256B.0911, subdivision 3
         , or the coordinated services and support plan identified in 293.28section 
         256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be 293.29reviewed by the participant, the consultation services provider, and the agency-provider 293.30or financial management services FMS contractor prior to starting services and at least 293.31annually upon reassessment, or when there is a significant change in the participant's 293.32condition, or a change in the need for services and supports.293.33(b) The commissioner shall establish the format and criteria for the CFSS service 293.34delivery plan.293.35(c) The CFSS service delivery plan must be person-centered and:294.1(1) specify the consultation services provider, agency-provider, or financial 294.2management services FMS contractor selected by the participant;294.3(2) reflect the setting in which the participant resides that is chosen by the participant;294.4(3) reflect the participant's strengths and preferences;294.5(4) include the means to address the clinical and support needs as identified through 294.6an assessment of functional needs;294.7(5) include individually identified goals and desired outcomes;294.8(6) reflect the services and supports, paid and unpaid, that will assist the participant 294.9to achieve identified goals, including the costs of the services and supports, and the 294.10providers of those services and supports, including natural supports;294.11(7) identify the amount and frequency of face-to-face supports and amount and 294.12frequency of remote supports and technology that will be used;294.13(8) identify risk factors and measures in place to minimize them, including 294.14individualized backup plans;294.15(9) be understandable to the participant and the individuals providing support;294.16(10) identify the individual or entity responsible for monitoring the plan;294.17(11) be finalized and agreed to in writing by the participant and signed by all 294.18individuals and providers responsible for its implementation;294.19(12) be distributed to the participant and other people involved in the plan; and294.20(13) prevent the provision of unnecessary or inappropriate care.;294.21(14) include a detailed budget for expenditures for budget model participants or 294.22participants under the agency-provider model if purchasing goods; and294.23(15) include a plan for worker training and development detailing what service 294.24components will be used, when the service components will be used, how they will be 294.25provided, and how these service components relate to the participant's individual needs 294.26and CFSS support worker services.294.27(d) The total units of agency-provider services or the service budget allocation294.28 amount for the budget model include both annual totals and a monthly average amount 294.29that cover the number of months of the service authorization. The amount used each 294.30month may vary, but additional funds must not be provided above the annual service 294.31authorization amount unless a change in condition is assessed and authorized by the 294.32certified assessor and documented in the community support plan, coordinated services 294.33and supports plan, and CFSS service delivery plan.294.34(e) In assisting with the development or modification of the plan during the 294.35authorization time period, the consultation services provider shall:294.36(1) consult with the FMS contractor on the spending budget when applicable; and295.1(2) consult with the participant or participant's representative, agency-provider, and 295.2case manager/care coordinator.295.3(f) The service plan must be approved by the consultation services provider for 295.4participants without a case manager/care coordinator. A case manager/care coordinator 295.5must approve the plan for a waiver or alternative care program participant.295.6    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is 295.7amended to read:295.8    Subd. 7. Community first services and supports; covered services. Within the 295.9service unit authorization or service budget allocation amount, services and supports 295.10covered under CFSS include:295.11(1) assistance to accomplish activities of daily living (ADLs), instrumental activities 295.12of daily living (IADLs), and health-related procedures and tasks through hands-on 295.13assistance to accomplish the task or constant supervision and cueing to accomplish the task;295.14(2) assistance to acquire, maintain, or enhance the skills necessary for the participant 295.15to accomplish activities of daily living, instrumental activities of daily living, or 295.16health-related tasks;295.17(3) expenditures for items, services, supports, environmental modifications, or 295.18goods, including assistive technology. These expenditures must:295.19(i) relate to a need identified in a participant's CFSS service delivery plan;295.20(ii) increase independence or substitute for human assistance to the extent that 295.21expenditures would otherwise be made for human assistance for the participant's assessed 295.22needs;295.23(4) observation and redirection for behavior or symptoms where there is a need for 295.24assistance. An assessment of behaviors must meet the criteria in this clause. A recipient295.25 participant qualifies as having a need for assistance due to behaviors if the recipient's295.26 participant's behavior requires assistance at least four times per week and shows one or 295.27more of the following behaviors:295.28(i) physical aggression towards self or others, or destruction of property that requires 295.29the immediate response of another person;295.30(ii) increased vulnerability due to cognitive deficits or socially inappropriate 295.31behavior; or295.32(iii) increased need for assistance for recipients participants who are verbally 295.33aggressive or resistive to care so that time needed to perform activities of daily living is 295.34increased;296.1(5) back-up systems or mechanisms, such as the use of pagers or other electronic 296.2devices, to ensure continuity of the participant's services and supports;296.3(6) transition costs, including:296.4(i) deposits for rent and utilities;296.5(ii) first month's rent and utilities;296.6(iii) bedding;296.7(iv) basic kitchen supplies;296.8(v) other necessities, to the extent that these necessities are not otherwise covered 296.9under any other funding that the participant is eligible to receive; and296.10(vi) other required necessities for an individual to make the transition from a nursing 296.11facility, institution for mental diseases, or intermediate care facility for persons with 296.12developmental disabilities to a community-based home setting where the participant 296.13resides; and296.14(7) (6) services provided by a support specialist consultation services provider under 296.15contract with the department and enrolled as a Minnesota health care program provider as296.16 defined under subdivision 2 that are chosen by the participant. 17;296.17(7) services provided by an FMS contractor under contract with the department 296.18as defined under subdivision 13;296.19(8) CFSS services provided by a qualified support worker who is a parent, stepparent, 296.20or legal guardian of a participant under age 18, or who is the participant's spouse. These 296.21support workers shall not provide any medical assistance home and community-based 296.22services in excess of 40 hours per seven-day period regardless of the number of parents, 296.23combination of parents and spouses, or number of children who receive medical assistance 296.24services; and296.25(9) worker training and development services as defined in subdivision 2, paragraph 296.26(w), and described in subdivision 18a.296.27    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is 296.28amended to read:296.29    Subd. 8. Determination of CFSS service methodology. (a) All community first 296.30services and supports must be authorized by the commissioner or the commissioner's 296.31designee before services begin, except for the assessments established in section 296.32256B.0911
         . The authorization for CFSS must be completed as soon as possible following 296.33an assessment but no later than 40 calendar days from the date of the assessment.297.1(b) The amount of CFSS authorized must be based on the recipient's participant's297.2 home care rating described in paragraphs (d) and (e) and any additional service units for 297.3which the person participant qualifies as described in paragraph (f).297.4(c) The home care rating shall be determined by the commissioner or the 297.5commissioner's designee based on information submitted to the commissioner identifying 297.6the following for a recipient participant:297.7(1) the total number of dependencies of activities of daily living as defined in 297.8subdivision 2, paragraph (b);297.9(2) the presence of complex health-related needs as defined in subdivision 2, 297.10paragraph (e); and297.11(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d), 297.12clause (1).297.13(d) The methodology to determine the total service units for CFSS for each home 297.14care rating is based on the median paid units per day for each home care rating from 297.15fiscal year 2007 data for the PCA program.297.16(e) Each home care rating is designated by the letters P through Z and EN and has 297.17the following base number of service units assigned:297.18(1) P home care rating requires Level I behavior or one to three dependencies in 297.19ADLs and qualifies one for five service units;297.20(2) Q home care rating requires Level I behavior and one to three dependencies in 297.21ADLs and qualifies one for six service units;297.22(3) R home care rating requires a complex health-related need and one to three 297.23dependencies in ADLs and qualifies one for seven service units;297.24(4) S home care rating requires four to six dependencies in ADLs and qualifies 297.25one for ten service units;297.26(5) T home care rating requires four to six dependencies in ADLs and Level I 297.27behavior and qualifies one for 11 service units;297.28(6) U home care rating requires four to six dependencies in ADLs and a complex 297.29health-related need and qualifies one for 14 service units;297.30(7) V home care rating requires seven to eight dependencies in ADLs and qualifies 297.31one for 17 service units;297.32(8) W home care rating requires seven to eight dependencies in ADLs and Level I 297.33behavior and qualifies one for 20 service units;297.34(9) Z home care rating requires seven to eight dependencies in ADLs and a complex 297.35health-related need and qualifies one for 30 service units; and298.1(10) EN home care rating includes ventilator dependency as defined in section 298.2256B.0651, subdivision 1
         , paragraph (g). Recipients Participants who meet the definition 298.3of ventilator-dependent and the EN home care rating and utilize a combination of CFSS 298.4and other home care home-care  services are limited to a total of 96 service units per day 298.5for those services in combination. Additional units may be authorized when a recipient's298.6 participant's assessment indicates a need for two staff to perform activities. Additional 298.7time is limited to 16 service units per day.298.8(f) Additional service units are provided through the assessment and identification of 298.9the following:298.10(1) 30 additional minutes per day for a dependency in each critical activity of daily 298.11living as defined in subdivision 2, paragraph (h) (j);298.12(2) 30 additional minutes per day for each complex health-related function as 298.13defined in subdivision 2, paragraph (e) (f); and298.14(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2, 298.15paragraph (d).298.16(g) The service budget for budget model participants shall be based on:298.17(1) assessed units as determined by the home care rating; and298.18(2) an adjustment needed for administrative expenses.298.19    Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is 298.20amended to read:298.21    Subd. 9. Noncovered services. (a) Services or supports that are not eligible for 298.22payment under this section include those that:298.23(1) are not authorized by the certified assessor or included in the written service 298.24delivery plan;298.25(2) are provided prior to the authorization of services and the approval of the written 298.26CFSS service delivery plan;298.27(3) are duplicative of other paid services in the written service delivery plan;298.28(4) supplant natural unpaid supports that appropriately meet a need in the service 298.29plan, are provided voluntarily to the participant, and are selected by the participant in lieu 298.30of other services and supports;298.31(5) are not effective means to meet the participant's needs; and298.32(6) are available through other funding sources, including, but not limited to, funding 298.33through title IV-E of the Social Security Act.298.34(b) Additional services, goods, or supports that are not covered include:299.1(1) those that are not for the direct benefit of the participant, except that services for 299.2caregivers such as training to improve the ability to provide CFSS are considered to directly 299.3benefit the participant if chosen by the participant and approved in the support plan;299.4(2) any fees incurred by the participant, such as Minnesota health care programs fees 299.5and co-pays, legal fees, or costs related to advocate agencies;299.6(3) insurance, except for insurance costs related to employee coverage;299.7(4) room and board costs for the participant with the exception of allowable 299.8transition costs in subdivision 7, clause (6);299.9(5) services, supports, or goods that are not related to the assessed needs;299.10(6) special education and related services provided under the Individuals with 299.11Disabilities Education Act and vocational rehabilitation services provided under the 299.12Rehabilitation Act of 1973;299.13(7) assistive technology devices and assistive technology services other than those 299.14for back-up systems or mechanisms to ensure continuity of service and supports listed in 299.15subdivision 7;299.16(8) medical supplies and equipment  covered under medical assistance;299.17(9) environmental modifications, except as specified in subdivision 7;299.18(10) expenses for travel, lodging, or meals related to training the participant, or the 299.19participant's representative,or legal representative, or paid or unpaid caregivers that 299.20exceed $500 in a 12-month period;299.21(11) experimental treatments;299.22(12) any service or good covered by other medical assistance state plan services, 299.23including prescription and over-the-counter medications, compounds, and solutions and 299.24related fees, including premiums and co-payments;299.25(13) membership dues or costs, except when the service is necessary and appropriate 299.26to treat a physical health condition or to improve or maintain the participant's physical299.27 health condition. The condition must be identified in the participant's CFSS plan and 299.28monitored by a physician enrolled in a Minnesota health care program Minnesota health 299.29care program enrolled physician;299.30(14) vacation expenses other than the cost of direct services;299.31(15) vehicle maintenance or modifications not related to the disability, health 299.32condition, or physical need; and299.33(16) tickets and related costs to attend sporting or other recreational or entertainment 299.34events.;299.35(17) services provided and billed by a provider who is not an enrolled CFSS provider;299.36(18) CFSS provided by a participant's representative or paid legal guardian;300.1(19) services that are used solely as a child care or babysitting service;300.2(20) services that are the responsibility or in the daily rate of a residential or program 300.3license holder under the terms of a service agreement and administrative rules;300.4(21) sterile procedures;300.5(22) giving of injections into veins, muscles, or skin;300.6(23) homemaker services that are not an integral part of the assessed CFSS service;300.7(24) home maintenance or chore services;300.8(25) home-care services, including hospice services if elected by the participant 300.9covered by Medicare or any other insurance held by the participant;300.10(26) services to other members of the participant's household;300.11(27) services not specified as covered under medical assistance as CFSS;300.12(28) application of restraints or implementation of deprivation procedures;300.13(29) assessments by CFSS provider organizations or by independently enrolled 300.14registered nurses;300.15(30) services provided in lieu of legally required staffing in a residential or child 300.16care setting; and300.17(31) services provided by the residential or program license holder in a residence for 300.18more than four persons.300.19    Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10, 300.20is amended to read:300.21    Subd. 10. Provider Agency-provider and FMS contractor qualifications and,300.22 general requirements, and duties.(a) Agency-providers delivering services under the 300.23agency-provider model under subdivision 11 or financial management service (FMS)300.24 FMS contractors under subdivision 13 shall:300.25(1) enroll as a medical assistance Minnesota health care programs provider and meet 300.26all applicable provider standards and requirements;300.27(2) comply with medical assistance provider enrollment requirements;300.28(3) (2) demonstrate compliance with law federal and state laws and policies of for300.29 CFSS as determined by the commissioner;300.30(4) (3) comply with background study requirements under chapter 245C and 300.31maintain documentation of background study requests and results;300.32(5) (4) verify and maintain records of all services and expenditures by the participant, 300.33including hours worked by support workers and support specialists;301.1(6) (5) not engage in any agency-initiated direct contact or marketing in person, by 301.2telephone, or other electronic means to potential participants, guardians, family members, 301.3or participants' representatives;301.4(6) directly provide services and not use a subcontractor or reporting agent;301.5(7) meet the financial requirements established by the commissioner for financial 301.6solvency;301.7(8) have never had a lead agency contract or provider agreement discontinued due to 301.8fraud, or have never had an owner, board member, or manager fail a state or FBI-based 301.9criminal background check while enrolled or seeking enrollment as a Minnesota health 301.10care programs provider;301.11(9) have established business practices that include written policies and procedures, 301.12internal controls, and a system that demonstrates the provider's ability to deliver quality 301.13CFSS; and301.14(10) have an office located in Minnesota.301.15(b) In conducting general duties, agency-providers and FMS contractors shall:301.16(7) (1) pay support workers and support specialists based upon actual hours of 301.17services provided;301.18(2) pay for worker training and development services based upon actual hours of 301.19services provided or the unit cost of the training session purchased;301.20(8) (3) withhold and pay all applicable federal and state payroll taxes;301.21(9) (4) make arrangements and pay unemployment insurance, taxes, workers' 301.22compensation, liability insurance, and other benefits, if any;301.23(10) (5) enter into a written agreement with the participant, participant's 301.24representative, or legal representative that assigns roles and responsibilities to be 301.25performed before services, supports, or goods are provided using a format established by 301.26the commissioner;301.27(11) (6) report maltreatment as required under sections 
         626.556 and 
         626.557; and301.28(12) (7) provide the participant with a copy of the service-related rights under 301.29subdivision 20 at the start of services and supports.; and301.30(8) comply with any data requests from the department consistent with the 301.31Minnesota Government Data Practices Act.301.32    Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11, 301.33is amended to read:301.34    Subd. 11. Agency-provider model. (a) The agency-provider model is limited to 301.35the includes services provided by support workers and support specialists staff providing 302.1worker training and development services who are employed by an agency-provider 302.2that is licensed according to chapter 245A or meets other criteria established by the 302.3commissioner, including required training.302.4(b) The agency-provider shall allow the participant to have a significant role in the 302.5selection and dismissal of the support workers for the delivery of the services and supports 302.6specified in the participant's service delivery plan.302.7(c) A participant may use authorized units of CFSS services as needed within a 302.8service authorization that is not greater than 12 months. Using authorized units in a 302.9flexible manner in either the agency-provider model or the budget model does not increase 302.10the total amount of services and supports authorized for a participant or included in the 302.11participant's service delivery plan.302.12(d) A participant may share CFSS services. Two or three CFSS participants may 302.13share services at the same time provided by the same support worker.302.14(e) The agency-provider must use a minimum of 72.5 percent of the revenue 302.15generated by the medical assistance payment for CFSS for support worker wages and 302.16benefits. The agency-provider must document how this requirement is being met. The 302.17revenue generated by the support specialist worker training and development services302.18 and the reasonable costs associated with the support specialist worker training and 302.19development services must not be used in making this calculation.302.20(f) The agency-provider model must be used by individuals who have been restricted 302.21by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 302.22to 9505.2245.302.23(g) Participants purchasing goods under this model, along with support worker 302.24services, must:302.25(1) specify the goods in the service delivery plan and detailed budget for 302.26expenditures that must be approved by the consultation services provider or the case 302.27manager/care coordinator; and302.28(2) use the FMS contractor for the billing and payment of such goods.302.29    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12, 302.30is amended to read:302.31    Subd. 12. Requirements for enrollment of CFSS provider agency-provider302.32 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of 302.33enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in 302.34a format determined by the commissioner, information and documentation that includes, 302.35but is not limited to, the following:303.1(1) the CFSS provider agency's agency-provider's current contact information 303.2including address, telephone number, and e-mail address;303.3(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's303.4 agency-provider's Medicaid revenue in the previous calendar year is less than or equal 303.5to $300,000, the provider agency agency-provider must purchase a performance bond of 303.6$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous 303.7calendar year is greater than $300,000, the provider agency agency-provider must 303.8purchase a performance bond of $100,000. The performance bond must be in a form 303.9approved by the commissioner, must be renewed annually, and must allow for recovery of 303.10costs and fees in pursuing a claim on the bond;303.11(3) proof of fidelity bond coverage in the amount of $20,000;303.12(4) proof of workers' compensation insurance coverage;303.13(5) proof of liability insurance;303.14(6) a description of the CFSS provider agency's agency-provider's organization 303.15identifying the names of all owners, managing employees, staff, board of directors, and 303.16the affiliations of the directors, and owners, or staff to other service providers;303.17(7) a copy of the CFSS provider agency's agency-provider's written policies and 303.18procedures including: hiring of employees; training requirements; service delivery; 303.19and employee and consumer safety including process for notification and resolution 303.20of consumer grievances, identification and prevention of communicable diseases, and 303.21employee misconduct;303.22(8) copies of all other forms the CFSS provider agency agency-provider uses in the 303.23course of daily business including, but not limited to:303.24(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time 303.25sheet varies from the standard time sheet for CFSS services approved by the commissioner, 303.26and a letter requesting approval of the CFSS provider agency's agency-provider's303.27 nonstandard time sheet; and303.28(ii) the a copy of the participant's individual CFSS provider agency's template for the 303.29CFSS care service delivery plan;303.30(9) a list of all training and classes that the CFSS provider agency agency-provider303.31 requires of its staff providing CFSS services;303.32(10) documentation that the CFSS provider agency agency-provider and staff have 303.33successfully completed all the training required by this section;303.34(11) documentation of the agency's agency-provider's marketing practices;303.35(12) disclosure of ownership, leasing, or management of all residential properties 303.36that are used or could be used for providing home care home-care  services;304.1(13) documentation that the agency agency-provider will use at least the following 304.2percentages of revenue generated from the medical assistance rate paid for CFSS services 304.3for employee personal care assistant CFSS support worker wages and benefits: 72.5 304.4percent of revenue from CFSS providers. The revenue generated by the support specialist304.5 worker training and development services and the reasonable costs associated with the 304.6support specialist worker training and development services shall not be used in making 304.7this calculation; and304.8(14) documentation that the agency agency-provider does not burden recipients'304.9 participants' free exercise of their right to choose service providers by requiring personal 304.10care assistants CFSS support workers to sign an agreement not to work with any particular 304.11CFSS recipient participant or for another CFSS provider agency agency-provider after 304.12leaving the agency and that the agency is not taking action on any such agreements or 304.13requirements regardless of the date signed.304.14(b) CFSS provider agencies agency-providers shall provide to the commissioner 304.15the information specified in paragraph (a).304.16(c) All CFSS provider agencies agency-providers shall require all employees in 304.17management and supervisory positions and owners of the agency who are active in the 304.18day-to-day management and operations of the agency to complete mandatory training as 304.19determined by the commissioner. Employees in management and supervisory positions 304.20and owners who are active in the day-to-day operations of an agency who have completed 304.21the required training as an employee with a CFSS provider agency agency-provider do 304.22not need to repeat the required training if they are hired by another agency, if they have 304.23completed the training within the past three years. CFSS provider agency agency-provider304.24 billing staff shall complete training about CFSS program financial management. Any new 304.25owners or employees in management and supervisory positions involved in the day-to-day 304.26operations are required to complete mandatory training as a requisite of working for the 304.27agency. CFSS provider agencies certified for participation in Medicare as home health 304.28agencies are exempt from the training required in this subdivision.304.29(d) The commissioner shall send annual renewal notifications to agency-providers 304.3030 days prior to renewal. The notification must:304.31(1) list the materials and information the agency-provider is required to submit;304.32(2) provide instructions on submitting information to the commissioner; and304.33(3) provide a due date by which the commissioner must receive the requested 304.34information.305.1Agency-providers shall submit the required documentation for annual review within 305.230 days of notification from the commissioner. If no documentation is submitted, the 305.3agency-provider enrollment number must be terminated or suspended.305.4    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13, 305.5is amended to read:305.6    Subd. 13. Budget model. (a) Under the budget model participants can may exercise 305.7more responsibility and control over the services and supports described and budgeted 305.8within the CFSS service delivery plan. Participants must use services provided by an FMS 305.9contractor as defined in subdivision 2, paragraph (m). Under this model, participants may 305.10use their approved service budget allocation to:305.11(1) directly employ support workers, and pay wages, federal and state payroll taxes, 305.12and premiums for workers' compensation, liability, and health insurance coverage; and305.13(2) obtain supports and goods as defined in subdivision 7; and.305.14(3) choose a range of support assistance services from the financial management 305.15services (FMS) contractor related to:305.16(i) assistance in managing the budget to meet the service delivery plan needs, 305.17consistent with federal and state laws and regulations;305.18(ii) the employment, training, supervision, and evaluation of workers by the 305.19participant;305.20(iii) acquisition and payment for supports and goods; and305.21(iv) evaluation of individual service outcomes as needed for the scope of the 305.22participant's degree of control and responsibility.305.23(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) 305.24may authorize a legal representative or participant's representative to do so on their behalf.305.25(c) The commissioner shall disenroll or exclude participants from the budget model 305.26and transfer them to the agency-provider model under, but not limited to, the following 305.27circumstances:305.28(1) when a participant has been restricted by the Minnesota restricted recipient 305.29program, in which case the participant may be excluded for a specified time period under 305.30Minnesota Rules, parts 9505.2160 to 9505.2245;305.31(2) when a participant exits the budget model during the participant's service plan 305.32year. Upon transfer, the participant shall not access the budget model for the remainder of 305.33that service plan year; or305.34(3) when the department determines that the participant or participant's representative 305.35or legal representative cannot manage participant responsibilities under the budget model. 306.1The commissioner must develop policies for determining if a participant is unable to 306.2manage responsibilities under the budget model.306.3(d) A participant may appeal in writing to the department under section 256.045, 306.4subdivision 3, to contest the department's decision under paragraph (c), clause (3), to 306.5disenroll or exclude the participant from the budget model.306.6(c) (e) The FMS contractor shall not provide CFSS services and supports under the 306.7agency-provider service model. 306.8(f) The FMS contractor shall provide service functions as determined by the 306.9commissioner for budget model participants that include but are not limited to:306.10(1) information and consultation about CFSS;306.11(2) (1) assistance with the development of the detailed budget for expenditures 306.12portion of the service delivery plan and budget model as requested by the consultation 306.13services provider or participant;306.14(3) (2) billing and making payments for budget model expenditures;306.15(4) (3) assisting participants in fulfilling employer-related requirements according to 306.16Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax 306.17Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related 306.18regulations and interpretations, including Code of Federal Regulations, title 26, section 306.1931.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining 306.20worker compensation coverage;306.21(5) (4) data recording and reporting of participant spending; and306.22(6) (5) other duties established in the contract with the department, including with 306.23respect to providing assistance to the participant, participant's representative, or legal 306.24representative in performing their employer responsibilities regarding support workers. 306.25The support worker shall not be considered the employee of the financial management 306.26services FMS contractor.; and306.27(6) billing, payment, and accounting of approved expenditures for goods for 306.28agency-provider participants.306.29(d) A participant who requests to purchase goods and supports along with support 306.30worker services under the agency-provider model must use the budget model with 306.31a service delivery plan that specifies the amount of services to be authorized to the 306.32agency-provider and the expenditures to be paid by the FMS contractor.306.33(e) (g) The FMS contractor shall:306.34(1) not limit or restrict the participant's choice of service or support providers or 306.35service delivery models consistent with any applicable state and federal requirements;307.1(2) provide the participant, consultation services provider, and the targeted case 307.2manager, if applicable, with a monthly written summary of the spending for services and 307.3supports that were billed against the spending budget;307.4(3) be knowledgeable of state and federal employment regulations, including those 307.5under the Fair Labor Standards Act of 1938, and comply with the requirements under the 307.6Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the 307.7Internal Revenue Code and related regulations and interpretations, including Code of 307.8Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability 307.9for vendor or fiscal employer agent, and any requirements necessary to process employer 307.10and employee deductions, provide appropriate and timely submission of employer tax 307.11liabilities, and maintain documentation to support medical assistance claims;307.12(4) have current and adequate liability insurance and bonding and sufficient cash 307.13flow as determined by the commissioner and have on staff or under contract a certified 307.14public accountant or an individual with a baccalaureate degree in accounting;307.15(5) assume fiscal accountability for state funds designated for the program and be 307.16held liable for any overpayments or violations of applicable statutes or rules, including but 307.17not limited to the Minnesota False Claims Act, chapter 15C; and307.18(6) maintain documentation of receipts, invoices, and bills to track all services and 307.19supports expenditures for any goods purchased and maintain time records of support 307.20workers. The documentation and time records must be maintained for a minimum of 307.21five years from the claim date and be available for audit or review upon request by the 307.22commissioner. Claims submitted by the FMS contractor to the commissioner for payment 307.23must correspond with services, amounts, and time periods as authorized in the participant's 307.24spending service budget and service plan and must contain specific identifying information 307.25as determined by the commissioner.307.26(f) (h) The commissioner of human services shall:307.27(1) establish rates and payment methodology for the FMS contractor;307.28(2) identify a process to ensure quality and performance standards for the FMS 307.29contractor and ensure statewide access to FMS contractors; and307.30(3) establish a uniform protocol for delivering and administering CFSS services 307.31to be used by eligible FMS contractors.307.32(g) The commissioner of human services shall disenroll or exclude participants from 307.33the budget model and transfer them to the agency-provider model under the following 307.34circumstances that include but are not limited to:308.1(1) when a participant has been restricted by the Minnesota restricted recipient 308.2program, the participant may be excluded for a specified time period under Minnesota 308.3Rules, parts 9505.2160 to 9505.2245;308.4(2) when a participant exits the budget model during the participant's service plan 308.5year. Upon transfer, the participant shall not access the budget model for the remainder of 308.6that service plan year; or308.7(3) when the department determines that the participant or participant's representative 308.8or legal representative cannot manage participant responsibilities under the budget model. 308.9The commissioner must develop policies for determining if a participant is unable to 308.10manage responsibilities under a budget model.308.11(h) A participant may appeal under section 256.045, subdivision 3, in writing to the 308.12department to contest the department's decision under paragraph (c), clause (3), to remove 308.13or exclude the participant from the budget model.308.14    Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15, 308.15is amended to read:308.16    Subd. 15. Documentation of support services provided. (a) Support services 308.17provided to a participant by a support worker employed by either an agency-provider 308.18or the participant acting as the employer must be documented daily by each support 308.19worker, on a time sheet form approved by the commissioner. All documentation may be 308.20Web-based, electronic, or paper documentation. The completed form must be submitted 308.21on a monthly regular basis to the provider or the participant and the FMS contractor 308.22selected by the participant to provide assistance with meeting the participant's employer 308.23obligations and kept in the recipient's health participant's record.308.24(b) The activity documentation must correspond to the written service delivery plan 308.25and be reviewed by the agency-provider or the participant and the FMS contractor when 308.26the participant is acting as the employer of the support worker.308.27(c) The time sheet must be on a form approved by the commissioner documenting 308.28time the support worker provides services in the home to the participant. The following 308.29criteria must be included in the time sheet:308.30(1) full name of the support worker and individual provider number;308.31(2) provider agency-provider name and telephone numbers, if an agency-provider is308.32 responsible for delivery services under the written service plan;308.33(3) full name of the participant;308.34(4) consecutive dates, including month, day, and year, and arrival and departure 308.35times with a.m. or p.m. notations;309.1(5) signatures of the participant or the participant's representative;309.2(6) personal signature of the support worker;309.3(7) any shared care provided, if applicable;309.4(8) a statement that it is a federal crime to provide false information on CFSS 309.5billings for medical assistance payments; and309.6(9) dates and location of recipient participant stays in a hospital, care facility, or 309.7incarceration.309.8    Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16, 309.9is amended to read:309.10    Subd. 16. Support workers requirements. (a) Support workers shall:309.11(1) enroll with the department as a support worker after a background study under 309.12chapter 245C has been completed and the support worker has received a notice from the 309.13commissioner that:309.14(i) the support worker is not disqualified under section 
         245C.14; or309.15(ii) is disqualified, but the support worker has received a set-aside of the 309.16disqualification under section 
         245C.22;309.17(2) have the ability to effectively communicate with the participant or the 309.18participant's representative;309.19(3) have the skills and ability to provide the services and supports according to 309.20the person's participant's CFSS service delivery plan and respond appropriately to the 309.21participant's needs;309.22(4) not be a participant of CFSS, unless the support services provided by the support 309.23worker differ from those provided to the support worker;309.24(5) complete the basic standardized training as determined by the commissioner 309.25before completing enrollment. The training must be available in languages other than 309.26English and to those who need accommodations due to disabilities. Support worker 309.27training must include successful completion of the following training components: basic 309.28first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles 309.29and responsibilities of support workers including information about basic body mechanics, 309.30emergency preparedness, orientation to positive behavioral practices, orientation to 309.31responding to a mental health crisis, fraud issues, time cards and documentation, and an 309.32overview of person-centered planning and self-direction. Upon completion of the training 309.33components, the support worker must pass the certification test to provide assistance 309.34to participants;309.35(6) complete training and orientation on the participant's individual needs; and310.1(7) maintain the privacy and confidentiality of the participant, and not independently 310.2determine the medication dose or time for medications for the participant.310.3(b) The commissioner may deny or terminate a support worker's provider enrollment 310.4and provider number if the support worker:310.5(1) lacks the skills, knowledge, or ability to adequately or safely perform the 310.6required work;310.7(2) fails to provide the authorized services required by the participant employer;310.8(3) has been intoxicated by alcohol or drugs while providing authorized services to 310.9the participant or while in the participant's home;310.10(4) has manufactured or distributed drugs while providing authorized services to the 310.11participant or while in the participant's home; or310.12(5) has been excluded as a provider by the commissioner of human services, or the 310.13United States Department of Health and Human Services, Office of Inspector General, 310.14from participation in Medicaid, Medicare, or any other federal health care program.310.15(c) A support worker may appeal in writing to the commissioner to contest the 310.16decision to terminate the support worker's provider enrollment and provider number.310.17(d) A support worker must not provide or be paid for more than 275 hours of 310.18CFSS per month, regardless of the number of participants the support worker serves or 310.19the number of agency-providers or participant employers by which the support worker 310.20is employed. The department shall not disallow the number of hours per day a support 310.21worker works unless it violates other law.310.22    Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 310.23a subdivision to read:310.24    Subd. 16a.Exception to support worker requirements for continuity of services.310.25The support worker for a participant may be allowed to enroll with a different CFSS 310.26agency-provider or FMS contractor upon initiation, rather than completion of a new 310.27background study according to chapter 245C, if the following conditions are met:310.28(1) the commissioner determines that the support worker's change in enrollment or 310.29affiliation is needed to ensure continuity of services and protect the health and safety 310.30of the participant;310.31(2) the chosen agency-provider or FMS contractor has been continuously enrolled as 310.32a CFSS agency-provider or FMS contractor for at least two years or since the inception of 310.33the CFSS program, whichever is shorter;310.34(3) the participant served by the support worker chooses to transfer to the CFSS 310.35agency-provider or the FMS contractor to which the support worker is transferring;311.1(4) the support worker has been continuously enrolled with the former CFSS 311.2agency-provider or FMS contractor since the support worker's last background study 311.3was completed; and311.4(5) the support worker continues to meet requirements of subdivision 16, excluding 311.5paragraph (a), clause (1). 311.6    Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17, 311.7is amended to read:311.8    Subd. 17. Support specialist requirements and payments Consultation services 311.9description and duties.The commissioner shall develop qualifications, scope of 311.10functions, and payment rates and service limits for a support specialist that may provide 311.11additional or specialized assistance necessary to plan, implement, arrange, augment, or 311.12evaluate services and supports.311.13(a) Consultation services means providing assistance to the participant in making 311.14informed choices regarding CFSS services in general, and self-directed tasks in particular, 311.15and in developing a person-centered service delivery plan to achieve quality service 311.16outcomes.311.17(b) Consultation services is a required service that may include but is not limited to:311.18(1) an initial and annual orientation to CFSS information and policies, including 311.19selecting a service model;311.20(2) assistance with the development, implementation, management, and evaluation 311.21of the person-centered service delivery plan;311.22(3) consultation on recruiting, selecting, training, managing, directing, evaluating, 311.23and supervising support workers;311.24(4) reviewing the use of and access to informal and community supports, goods, or 311.25resources;311.26(5) assistance with fulfilling responsibilities and requirements of CFSS, including 311.27modifying service delivery plans and changing service models; and311.28(6) assistance with accessing FMS contractors or agency-providers.311.29(c) Duties of a consultation services provider shall include but are not limited to:311.30(1) review and finalization of the CFSS service delivery plan by the consultation 311.31services provider organization;311.32(2) distribution of copies of the final service delivery plan to the participant and 311.33to the agency-provider or FMS contractor, case manager/care coordinator, and other 311.34designated parties;312.1(3) an evaluation of services upon receiving information from an FMS contractor 312.2indicating spending or participant employer concerns;312.3(4) a semiannual review of services if the participant does not have a case 312.4manager/care coordinator and when the support worker is a paid parent of a minor 312.5participant or the participant's spouse;312.6(5) collection and reporting of data as required by the department; and312.7(6) providing the participant with a copy of the service-related rights under 312.8subdivision 20 at the start of consultation services.312.9    Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 312.10a subdivision to read:312.11    Subd. 17a.Consultation service provider qualifications and requirements.312.12The commissioner shall develop the qualifications and requirements for providers of 312.13consultation services under subdivision 17. These providers must satisfy at least the 312.14following qualifications and requirements:312.15(1) are under contract with the department;312.16(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the 312.17CFSS or home and community-based services waiver agency-provider or vendor to the 312.18participant, or a lead agency;312.19(3) meet the service standards as established by the commissioner;312.20(4) employ lead professional staff with a minimum of three years of experience 312.21in providing support planning, support broker, or consultation services and consumer 312.22education to participants using a self-directed program using FMS under medical 312.23assistance;312.24(5) are knowledgeable about CFSS roles and responsibilities including those of the 312.25certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;312.26(6) comply with medical assistance provider requirements;312.27(7) understand the CFSS program and its policies;312.28(8) are knowledgeable about self-directed principles and the application of the 312.29person-centered planning process;312.30(9) have general knowledge of the FMS contractor duties and participant 312.31employment model, including all applicable federal, state, and local laws and regulations 312.32regarding tax, labor, employment, and liability and workers' compensation coverage for 312.33household workers; and312.34(10) have all employees, including lead professional staff, staff in management 312.35and supervisory positions, and owners of the agency who are active in the day-to-day 313.1management and operations of the agency, complete training as specified in the contract 313.2with the department.313.3    Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18, 313.4is amended to read:313.5    Subd. 18. Service unit and budget allocation requirements and limits. (a) For the 313.6agency-provider model, services will be authorized in units of service. The total service 313.7unit amount must be established based upon the assessed need for CFSS services, and must 313.8not exceed the maximum number of units available as determined under subdivision 8.313.9(b) For the budget model, the service budget allocation allowed for services and 313.10supports is established by multiplying the number of units authorized under subdivision 8 313.11by the payment rate established by the commissioner defined in subdivision 8, paragraph 313.12(g).313.13    Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 313.14a subdivision to read:313.15    Subd. 18a.Worker training and development services.(a) The commissioner 313.16shall develop the scope of tasks and functions, service standards, and service limits for 313.17worker training and development services.313.18(b) Worker training and development services are in addition to the participant's 313.19assessed service units or service budget. Services provided according to this subdivision 313.20must:313.21(1) help support workers obtain and expand the skills and knowledge necessary to 313.22ensure competency in providing quality services as needed and defined in the participant's 313.23service delivery plan;313.24(2) be provided or arranged for by the agency-provider under subdivision 11 or 313.25purchased by the participant employer under the budget model under subdivision 13; and313.26(3) be described in the participant's CFSS service delivery plan and documented in 313.27the participant's file.313.28(c) Services covered under worker training and development shall include:313.29(1) support worker training on the participant's individual assessed needs, condition, 313.30or both, provided individually or in a group setting by a skilled and knowledgeable trainer 313.31beyond any training the participant or participant's representative provides;313.32(2) tuition for professional classes and workshops for the participant's support 313.33workers that relate to the participant's assessed needs, condition, or both;314.1(3) direct observation, monitoring, coaching, and documentation of support worker 314.2job skills and tasks, beyond any training the participant or participant's representative 314.3provides, including supervision of health-related tasks or behavioral supports that is 314.4conducted by an appropriate professional based on the participant's assessed needs. 314.5These services must be provided within 14 days of the start of services or the start of a 314.6new support worker except as provided in paragraph (d) and must be specified in the 314.7participant's service delivery plan; and314.8(4) reporting service and support concerns to the appropriate provider.314.9(d) The services in paragraph (c), clause (3), are not required to be provided for a 314.10new support worker providing services for a participant due to staffing failures, unless the 314.11support worker is expected to provide ongoing backup staffing coverage.314.12(e) Worker training and development services shall not include:314.13(1) general agency training, worker orientation, or training on CFSS self-directed 314.14models;314.15(2) payment for preparation or development time for the trainer or presenter;314.16(3) payment of the support worker's salary or compensation during the training;314.17(4) training or supervision provided by the participant, the participant's support 314.18worker, or the participant's informal supports, including the participant's representative; or314.19(5) services in excess of 96 units per annual service authorization, unless approved 314.20by the department.314.21    Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23, 314.22is amended to read:314.23    Subd. 23. Commissioner's access. When the commissioner is investigating a 314.24possible overpayment of Medicaid funds, the commissioner must be given immediate 314.25access without prior notice to the agency provider agency-provider or FMS contractor's 314.26office during regular business hours and to documentation and records related to services 314.27provided and submission of claims for services provided. Denying the commissioner 314.28access to records is cause for immediate suspension of payment and terminating the agency 314.29provider's enrollment according to section 
         256B.064 or terminating the FMS contract.314.30    Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24, 314.31is amended to read:314.32    Subd. 24. CFSS agency-providers; background studies. CFSS agency-providers 314.33enrolled to provide personal care assistance CFSS services under the medical assistance 314.34program shall comply with the following:315.1(1) owners who have a five percent interest or more and all managing employees 315.2are subject to a background study as provided in chapter 245C. This applies to currently 315.3enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS 315.4agency-provider. "Managing employee" has the same meaning as Code of Federal 315.5Regulations, title 42, section 455. An organization is barred from enrollment if:315.6(i) the organization has not initiated background studies on owners managing 315.7employees; or315.8(ii) the organization has initiated background studies on owners and managing 315.9employees, but the commissioner has sent the organization a notice that an owner or 315.10managing employee of the organization has been disqualified under section 
         245C.14, and 315.11the owner or managing employee has not received a set-aside of the disqualification 315.12under section 
         245C.22;315.13(2) a background study must be initiated and completed for all support specialists315.14 staff who will have direct contact with the participant to provide worker training and 315.15development; and315.16(3) a background study must be initiated and completed for all support workers.315.17    Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to 315.18read:315.19EFFECTIVE DATE.This section is effective upon federal approval but no earlier 315.20than April 1, 2014. The service will begin 90 days after federal approval or April 1, 315.212014, whichever is later. The commissioner of human services shall notify the revisor of 315.22statutes when this occurs.315.23ARTICLE 18315.24CONTINUING CARE315.25    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:315.26    Subd. 4. Licensing data. (a) As used in this subdivision:315.27    (1) "licensing data" are all data collected, maintained, used, or disseminated by the 315.28welfare system pertaining to persons licensed or registered or who apply for licensure 315.29or registration or who formerly were licensed or registered under the authority of the 315.30commissioner of human services;315.31    (2) "client" means a person who is receiving services from a licensee or from an 315.32applicant for licensure; and316.1    (3) "personal and personal financial data" are Social Security numbers, identity 316.2of and letters of reference, insurance information, reports from the Bureau of Criminal 316.3Apprehension, health examination reports, and social/home studies.316.4    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants, 316.5license holders, and former licensees are public: name, address, telephone number of 316.6licensees, date of receipt of a completed application, dates of licensure, licensed capacity, 316.7type of client preferred, variances granted, record of training and education in child care 316.8and child development, type of dwelling, name and relationship of other family members, 316.9previous license history, class of license, the existence and status of complaints, and the 316.10number of serious injuries to or deaths of individuals in the licensed program as reported 316.11to the commissioner of human services, the local social services agency, or any other 316.12county welfare agency. For purposes of this clause, a serious injury is one that is treated 316.13by a physician.316.14(ii) When a correction order, an order to forfeit a fine, an order of license suspension, 316.15an order of temporary immediate suspension, an order of license revocation, an order 316.16of license denial, or an order of conditional license has been issued, or a complaint is 316.17resolved, the following data on current and former licensees and applicants are public: the 316.18substance and investigative findings of the licensing or maltreatment complaint, licensing 316.19violation, or substantiated maltreatment; the record of informal resolution of a licensing 316.20violation; orders of hearing; findings of fact; conclusions of law; specifications of the final 316.21correction order, fine, suspension, temporary immediate suspension, revocation, denial, or 316.22conditional license contained in the record of licensing action; whether a fine has been 316.23paid; and the status of any appeal of these actions.316.24(iii) When a license denial under section 
         245A.05 or a sanction under section 316.25245A.07
          is based on a determination that the license holder or applicant is responsible for 316.26maltreatment under section 
         626.556 or 
         626.557, the identity of the applicant or license 316.27holder as the individual responsible for maltreatment is public data at the time of the 316.28issuance of the license denial or sanction.316.29(iv) When a license denial under section 
         245A.05 or a sanction under section 316.30245A.07
          is based on a determination that the license holder or applicant is disqualified 316.31under chapter 245C, the identity of the license holder or applicant as the disqualified 316.32individual and the reason for the disqualification are public data at the time of the 316.33issuance of the licensing sanction or denial. If the applicant or license holder requests 316.34reconsideration of the disqualification and the disqualification is affirmed, the reason for 316.35the disqualification and the reason to not set aside the disqualification are public data.317.1    (2) Notwithstanding sections 
         626.556, subdivision 11, and 
         626.557, subdivision 12b, 317.2when any person subject to disqualification under section 
         245C.14 in connection with a 317.3license to provide family day care for children, child care center services, foster care for 317.4children in the provider's home, or foster care or day care services for adults in the provider's 317.5home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is 317.6a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment 317.7is public data. For purposes of this clause, a person is a substantiated perpetrator if the 317.8maltreatment determination has been upheld under section 
         256.045; 
         626.556, subdivision 317.910i
         ; 
         626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely 317.10exercised appeal rights under these sections, except as provided under clause (1).317.11    (3) For applicants who withdraw their application prior to licensure or denial of a 317.12license, the following data are public: the name of the applicant, the city and county in 317.13which the applicant was seeking licensure, the dates of the commissioner's receipt of the 317.14initial application and completed application, the type of license sought, and the date 317.15of withdrawal of the application.317.16    (4) For applicants who are denied a license, the following data are public: the name 317.17and address of the applicant, the city and county in which the applicant was seeking 317.18licensure, the dates of the commissioner's receipt of the initial application and completed 317.19application, the type of license sought, the date of denial of the application, the nature of 317.20the basis for the denial, the record of informal resolution of a denial, orders of hearings, 317.21findings of fact, conclusions of law, specifications of the final order of denial, and the 317.22status of any appeal of the denial.317.23    (5) The following data on persons subject to disqualification under section 
         245C.14 in 317.24connection with a license to provide family day care for children, child care center services, 317.25foster care for children in the provider's home, or foster care or day care services for adults 317.26in the provider's home, are public: the nature of any disqualification set aside under section 317.27245C.22
         , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the 317.28nature of any disqualification for which a variance was granted under sections 
         245A.04, 317.29subdivision 9
         ; and 
         245C.30, and the reasons for granting any variance under section 317.30245A.04, subdivision 9
         ; and, if applicable, the disclosure that any person subject to 317.31a background study under section 
         245C.03, subdivision 1, has successfully passed a 317.32background study. If a licensing sanction under section 
         245A.07, or a license denial under 317.33section 
         245A.05, is based on a determination that an individual subject to disqualification 317.34under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction 317.35or denial is public data. As specified in clause (1), item (iv), if the disqualified individual 317.36is the license holder or applicant, the identity of the license holder or applicant and the 318.1reason for the disqualification are public data; and, if the license holder or applicant 318.2requested reconsideration of the disqualification and the disqualification is affirmed, the 318.3reason for the disqualification and the reason to not set aside the disqualification are 318.4public data. If the disqualified individual is an individual other than the license holder or 318.5applicant, the identity of the disqualified individual shall remain private data.318.6    (6) When maltreatment is substantiated under section 
         626.556 or 
         626.557 and the 318.7victim and the substantiated perpetrator are affiliated with a program licensed under 318.8chapter 245A, the commissioner of human services, local social services agency, or 318.9county welfare agency may inform the license holder where the maltreatment occurred of 318.10the identity of the substantiated perpetrator and the victim.318.11    (7) Notwithstanding clause (1), for child foster care, only the name of the license 318.12holder and the status of the license are public if the county attorney has requested that data 318.13otherwise classified as public data under clause (1) be considered private data based on the 318.14best interests of a child in placement in a licensed program.318.15    (c) The following are private data on individuals under section 
         13.02, subdivision 318.1612
         , or nonpublic data under section 
         13.02, subdivision 9: personal and personal financial 318.17data on family day care program and family foster care program applicants and licensees 318.18and their family members who provide services under the license.318.19    (d) The following are private data on individuals: the identity of persons who have 318.20made reports concerning licensees or applicants that appear in inactive investigative data, 318.21and the records of clients or employees of the licensee or applicant for licensure whose 318.22records are received by the licensing agency for purposes of review or in anticipation of a 318.23contested matter. The names of reporters of complaints or alleged violations of licensing 318.24standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged 318.25maltreatment under sections 
         626.556 and 
         626.557, are confidential data and may be 318.26disclosed only as provided in section 
         626.556, subdivision 11, or 
         626.557, subdivision 12b.318.27    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under 318.28this subdivision become public data if submitted to a court or administrative law judge as 318.29part of a disciplinary proceeding in which there is a public hearing concerning a license 318.30which has been suspended, immediately suspended, revoked, or denied.318.31    (f) Data generated in the course of licensing investigations that relate to an alleged 318.32violation of law are investigative data under subdivision 3.318.33    (g) Data that are not public data collected, maintained, used, or disseminated under 318.34this subdivision that relate to or are derived from a report as defined in section 
         626.556, 318.35subdivision 2
         , or 
         626.5572, subdivision 18, are subject to the destruction provisions of 318.36sections 
         626.556, subdivision 11c, and 
         626.557, subdivision 12b.319.1    (h) Upon request, not public data collected, maintained, used, or disseminated under 319.2this subdivision that relate to or are derived from a report of substantiated maltreatment as 319.3defined in section 
         626.556 or 
         626.557 may be exchanged with the Department of Health 319.4for purposes of completing background studies pursuant to section 
         144.057 and with 319.5the Department of Corrections for purposes of completing background studies pursuant 319.6to section 
         241.021.319.7    (i) Data on individuals collected according to licensing activities under chapters 319.8245A and 245C, data on individuals collected by the commissioner of human services 319.9according to investigations under chapters 245A, 245B, and 245C, and 245D, and 319.10sections 
         626.556 and 
         626.557 may be shared with the Department of Human Rights, the 319.11Department of Health, the Department of Corrections, the ombudsman for mental health 319.12and developmental disabilities, and the individual's professional regulatory board when 319.13there is reason to believe that laws or standards under the jurisdiction of those agencies may 319.14have been violated or the information may otherwise be relevant to the board's regulatory 319.15jurisdiction. Background study data on an individual who is the subject of a background 319.16study under chapter 245C for a licensed service for which the commissioner of human 319.17services is the license holder may be shared with the commissioner and the commissioner's 319.18delegate by the licensing division. Unless otherwise specified in this chapter, the identity 319.19of a reporter of alleged maltreatment or licensing violations may not be disclosed.319.20    (j) In addition to the notice of determinations required under section 
         626.556, 319.21subdivision 10f
         , if the commissioner or the local social services agency has determined 319.22that an individual is a substantiated perpetrator of maltreatment of a child based on sexual 319.23abuse, as defined in section 
         626.556, subdivision 2, and the commissioner or local social 319.24services agency knows that the individual is a person responsible for a child's care in 319.25another facility, the commissioner or local social services agency shall notify the head 319.26of that facility of this determination. The notification must include an explanation of the 319.27individual's available appeal rights and the status of any appeal. If a notice is given under 319.28this paragraph, the government entity making the notification shall provide a copy of the 319.29notice to the individual who is the subject of the notice.319.30    (k) All not public data collected, maintained, used, or disseminated under this 319.31subdivision and subdivision 3 may be exchanged between the Department of Human 319.32Services, Licensing Division, and the Department of Corrections for purposes of 319.33regulating services for which the Department of Human Services and the Department 319.34of Corrections have regulatory authority.320.1    Sec. 2. Minnesota Statutes 2012, section 144A.073, is amended by adding a 320.2subdivision to read:320.3    Subd. 14.Moratorium exception funding.In fiscal year 2015, the commissioner 320.4of health may approve moratorium exception projects under this section for which the full 320.5annualized state share of medical assistance costs does not exceed $1,000,000.320.6    Sec. 3. Minnesota Statutes 2012, section 144A.33, subdivision 2, is amended to read:320.7    Subd. 2. Providing educational services. The Minnesota Board on Aging shall 320.8provide a grant-in-aid to a statewide, independent, nonprofit, consumer-sponsored agency 320.9to provide educational services to councils.320.10    Sec. 4. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:320.11245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY 320.12MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.320.13    Subdivision 1. Rules governing the use of positive support strategies and 320.14restricting or prohibiting restrictive interventions. The commissioner of human 320.15services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt rules 320.16governing the use of positive support strategies, safety interventions, and emergency use 320.17of manual restraint, and restricting or prohibiting the use of restrictive interventions,  in 320.18all facilities and services licensed under chapter 245D. , and in all licensed facilities and 320.19licensed services serving persons with a developmental disability or related condition. 320.20For the purposes of this section, "developmental disability or related condition" has the 320.21meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.320.22    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input, 320.23develop identify data collection elements specific to incidents of emergency use of 320.24manual restraint and positive support transition plans for persons receiving services from 320.25providers governed licensed facilities and licensed services  under chapter 245D and in 320.26licensed facilities and licensed services serving persons with a developmental disability 320.27or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective 320.28January 1, 2014. Providers Licensed facilities and licensed services shall report the data in 320.29a format and at a frequency determined by the commissioner of human services. Providers 320.30shall submit the data to the commissioner and the Office of the Ombudsman for Mental 320.31Health and Developmental Disabilities.320.32(b) Beginning July 1, 2013, providers licensed facilities and licensed services320.33 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data 320.34regarding the use of all controlled procedures identified in Minnesota Rules, part 321.19525.2740, in a format and at a frequency determined by the commissioner. Providers 321.2shall submit the data to the commissioner and the Office of the Ombudsman for Mental 321.3Health and Developmental Disabilities.321.4    Subd. 3.External program review committee.Rules adopted according to this 321.5section shall establish requirements for an external program review committee appointed by 321.6the commissioner to monitor the implementation of the rules and make recommendations 321.7to the commissioner about any needed policy changes after adoption of the rules.321.8    Subd. 4.Interim review panel.(a) The commissioner shall establish an interim 321.9review panel by August 15, 2014, for the purpose of reviewing requests for emergency 321.10use of procedures that have been part of an approved positive support transition plan 321.11when necessary to protect a person from imminent risk of serious injury as defined in 321.12section 245.91, subdivision 6, due to self-injurious behavior. The panel must make 321.13recommendations to the commissioner to approve or deny these requests based on criteria 321.14to be established by the interim review panel. The interim review panel shall operate until 321.15the external program review committee is established as required under subdivision 3.321.16(b) Members of the interim review panel shall be selected based on their expertise 321.17and knowledge related to the use of positive support strategies as alternatives to the use 321.18of restrictive interventions. The commissioner shall seek input and recommendations in 321.19establishing the interim review panel. Members of the interim review panel shall include 321.20the following representatives:321.21(1) an expert in positive supports;321.22(2) a mental health professional, as defined in section 245.462;321.23(3) a licensed health professional as defined in section 245D.02, subdivision 14; and321.24(4) a representative of the Department of Health.321.25    Sec. 5. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is 321.26amended to read:321.27    Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial 321.28license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, 321.29or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under 321.30this chapter for a physical location that will not be the primary residence of the license 321.31holder for the entire period of licensure. If a license is issued during this moratorium, and 321.32the license holder changes the license holder's primary residence away from the physical 321.33location of the foster care license, the commissioner shall revoke the license according 321.34to section 
         245A.07. The commissioner shall not issue an initial license for a community 321.35residential setting licensed under chapter 245D. Exceptions to the moratorium include:322.1(1) foster care settings that are required to be registered under chapter 144D;322.2(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 322.3community residential setting licenses replacing adult foster care licenses in existence on 322.4December 31, 2013, and determined to be needed by the commissioner under paragraph (b);322.5(3) new foster care licenses or community residential setting licenses determined to 322.6be needed by the commissioner under paragraph (b) for the closure of a nursing facility, 322.7ICF/DD, or regional treatment center; restructuring of state-operated services that limits 322.8the capacity of state-operated facilities; or allowing movement to the community for 322.9people who no longer require the level of care provided in state-operated facilities as 322.10provided under section 
         256B.092, subdivision 13, or 
         256B.49, subdivision 24;322.11(4) new foster care licenses or community residential setting licenses determined 322.12to be needed by the commissioner under paragraph (b) for persons requiring hospital 322.13level care; or322.14(5) new foster care licenses or community residential setting licenses determined to 322.15be needed by the commissioner for the transition of people from personal care assistance 322.16to the home and community-based services.322.17(b) The commissioner shall determine the need for newly licensed foster care 322.18homes or community residential settings as defined under this subdivision. As part of the 322.19determination, the commissioner shall consider the availability of foster care capacity in 322.20the area in which the licensee seeks to operate, and the recommendation of the local 322.21county board. The determination by the commissioner must be final. A determination of 322.22need is not required for a change in ownership at the same address.322.23(c) When an adult resident served by the program moves out of a foster home that is 322.24not the primary residence of the license holder according to section 
         256B.49, subdivision 322.2515
         , paragraph (f), or the adult community residential setting, the county shall immediately 322.26inform the Department of Human Services Licensing Division. The department shall 322.27decrease the statewide licensed capacity for adult foster care settings where the physical 322.28location is not the primary residence of the license holder, or for adult community 322.29residential settings, if the voluntary changes described in paragraph (e) are not sufficient to 322.30meet the savings required by reductions in licensed bed capacity under Laws 2011, First 322.31Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), and maintain statewide 322.32long-term care residential services capacity within budgetary limits. Implementation of 322.33the statewide licensed capacity reduction shall begin on July 1, 2013. The commissioner 322.34shall delicense up to 128 beds by June 30, 2014, using the needs determination process. 322.35Prior to any involuntary reduction of licensed capacity, the commissioner shall consult 322.36with lead agencies and license holders to determine which adult foster care settings, where 323.1the physical location is not the primary residence of the license holder, or community 323.2residential settings, are licensed for up to five beds, but have operated at less than full 323.3capacity for 12 or more months as of March 1, 2014. The settings that meet these criteria 323.4must be the first to be considered for an involuntary decrease in statewide licensed capacity, 323.5up to a maximum of 35 beds. If more than 35 beds are identified that meet these criteria, the 323.6commissioner shall prioritize the selection of those beds to be closed based on the length 323.7of time the beds have been vacant. The longer a bed has been vacant, the higher priority 323.8it must be given for closure. Under this paragraph, the commissioner has the authority 323.9to reduce unused licensed capacity of a current foster care program, or the community 323.10residential settings, to accomplish the consolidation or closure of settings. Under this 323.11paragraph, the commissioner has the authority to manage statewide capacity, including 323.12adjusting the capacity available to each county and adjusting statewide available capacity, 323.13to meet the statewide needs identified through the process in paragraph (e). A decreased 323.14licensed capacity according to this paragraph is not subject to appeal under this chapter.323.15(d) Residential settings that would otherwise be subject to the decreased license 323.16capacity established in paragraph (c) shall be exempt under the following circumstances:323.17(1) until August 1, 2013, the license holder's beds occupied by residents whose 323.18primary diagnosis is mental illness and the license holder is:323.19(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental 323.20health services (ARMHS) as defined in section 
         256B.0623;323.21(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to 323.229520.0870;323.23(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to 323.249520.0870; or323.25(iv) a provider of intensive residential treatment services (IRTS) licensed under 323.26Minnesota Rules, parts 9520.0500 to 9520.0670; or323.27(2) the license holder's beds occupied by residents whose primary diagnosis is 323.28mental illness and the license holder is certified under the requirements in subdivision 6a 323.29or section 
         245D.33.323.30(e) A resource need determination process, managed at the state level, using the 323.31available reports required by section 
         144A.351, and other data and information shall 323.32be used to determine where the reduced capacity required under paragraph (c) will be 323.33implemented. The commissioner shall consult with the stakeholders described in section 323.34144A.351
         , and employ a variety of methods to improve the state's capacity to meet 323.35long-term care service needs within budgetary limits, including seeking proposals from 323.36service providers or lead agencies to change service type, capacity, or location to improve 324.1services, increase the independence of residents, and better meet needs identified by the 324.2long-term care services reports and statewide data and information. By February 1, 2013, 324.3and August 1, 2014, and each following year, the commissioner shall provide information 324.4and data on the overall capacity of licensed long-term care services, actions taken under 324.5this subdivision to manage statewide long-term care services and supports resources, and 324.6any recommendations for change to the legislative committees with jurisdiction over 324.7health and human services budget.324.8    (f) At the time of application and reapplication for licensure, the applicant and the 324.9license holder that are subject to the moratorium or an exclusion established in paragraph 324.10(a) are required to inform the commissioner whether the physical location where the foster 324.11care will be provided is or will be the primary residence of the license holder for the entire 324.12period of licensure. If the primary residence of the applicant or license holder changes, the 324.13applicant or license holder must notify the commissioner immediately. The commissioner 324.14shall print on the foster care license certificate whether or not the physical location is the 324.15primary residence of the license holder.324.16    (g) License holders of foster care homes identified under paragraph (f) that are not 324.17the primary residence of the license holder and that also provide services in the foster care 324.18home that are covered by a federally approved home and community-based services 324.19waiver, as authorized under section 
         256B.0915, 
         256B.092, or 
         256B.49, must inform the 324.20human services licensing division that the license holder provides or intends to provide 324.21these waiver-funded services.324.22    Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is 324.23amended to read:324.24    Subd. 3. Implementation. (a) The commissioner shall implement the 324.25responsibilities of this chapter according to the timelines in paragraphs (b) and (c) 324.26only within the limits of available appropriations or other administrative cost recovery 324.27methodology.324.28(b) The licensure of home and community-based services according to this section 324.29shall be implemented January 1, 2014. License applications shall be received and 324.30processed on a phased-in schedule as determined by the commissioner beginning July 324.311, 2013. Licenses will be issued thereafter upon the commissioner's determination that 324.32the application is complete according to section 
         245A.04.324.33(c) Within the limits of available appropriations or other administrative cost recovery 324.34methodology, implementation of compliance monitoring must be phased in after January 324.351, 2014.325.1(1) Applicants who do not currently hold a license issued under chapter 245B must 325.2receive an initial compliance monitoring visit after 12 months of the effective date of the 325.3initial license for the purpose of providing technical assistance on how to achieve and 325.4maintain compliance with the applicable law or rules governing the provision of home and 325.5community-based services under chapter 245D. If during the review the commissioner 325.6finds that the license holder has failed to achieve compliance with an applicable law or 325.7rule and this failure does not imminently endanger the health, safety, or rights of the 325.8persons served by the program, the commissioner may issue a licensing review report with 325.9recommendations for achieving and maintaining compliance.325.10(2) Applicants who do currently hold a license issued under this chapter must receive 325.11a compliance monitoring visit after 24 months of the effective date of the initial license.325.12(d) Nothing in this subdivision shall be construed to limit the commissioner's 325.13authority to suspend or revoke a license or issue a fine at any time under section 
         245A.07, 325.14or issue correction orders and make a license conditional for failure to comply with 325.15applicable laws or rules under section 
         245A.06, based on the nature, chronicity, or severity 325.16of the violation of law or rule and the effect of the violation on the health, safety, or 325.17rights of persons served by the program.325.18(e) License holders governed under chapter 245D must ensure compliance with the 325.19following requirements within the stated timelines:325.20(1) service initiation and service planning requirements must be met at the next 325.21annual meeting of the person's support team or by January 1, 2015, whichever is later, 325.22for the following:325.23    (i) provision of a written notice that identifies the service recipient rights and an 325.24explanation of those rights as required under section 245D.04, subdivision 1;325.25(ii) service planning for basic support services as required under section 245D.07, 325.26subdivision 2; and325.27(iii) service planning for intensive support services under section 245D.071, 325.28subdivisions 3 and 4;325.29(2) staff orientation to program requirements as required under section 245D.09, 325.30subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015. 325.31The license holder may otherwise provide documentation verifying these requirements 325.32were met before January 1, 2014;325.33(3) development of policy and procedures as required under section 245D.11, must 325.34be completed no later than August 31, 2014;325.35(4) written or electronic notice and copies of policies and procedures must be 325.36provided to all persons or their legal representatives and case managers as required under 326.1section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 326.230 days of development of the required policies and procedures, whichever is earlier; and326.3(5) all employees must be informed of the revisions and training must be provided on 326.4implementation of the revised policies and procedures as required under section 245D.10, 326.5subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of 326.6the required policies and procedures, whichever is earlier.326.7    Sec. 7. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is 326.8amended to read:326.9    Subdivision 1. Delegation of authority to agencies. (a) County agencies and 326.10private agencies that have been designated or licensed by the commissioner to perform 326.11licensing functions and activities under section 
         245A.04 and background studies for family 326.12child care under chapter 245C; to recommend denial of applicants under section 
         245A.05; 326.13to issue correction orders, to issue variances, and recommend a conditional license under 326.14section 
         245A.06, or to recommend suspending or revoking a license or issuing a fine under 326.15section 
         245A.07, shall comply with rules and directives of the commissioner governing 326.16those functions and with this section. The following variances are excluded from the 326.17delegation of variance authority and may be issued only by the commissioner:326.18    (1) dual licensure of family child care and child foster care, dual licensure of child 326.19and adult foster care, and adult foster care and family child care;326.20    (2) adult foster care maximum capacity;326.21    (3) adult foster care minimum age requirement;326.22    (4) child foster care maximum age requirement;326.23    (5) variances regarding disqualified individuals except that county agencies may 326.24issue variances under section 
         245C.30 regarding disqualified individuals when the county 326.25is responsible for conducting a consolidated reconsideration according to sections 
         245C.25 326.26and 
         245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 326.27and a disqualification based on serious or recurring maltreatment;326.28    (6) the required presence of a caregiver in the adult foster care residence during 326.29normal sleeping hours; and326.30    (7) variances for community residential setting licenses under chapter 245D.326.31Except as provided in section 
         245A.14, subdivision 4, paragraph (e), a county agency 326.32must not grant a license holder a variance to exceed the maximum allowable family child 326.33care license capacity of 14 children.326.34    (b) County agencies must report information about disqualification reconsiderations 326.35under sections 
         245C.25 and 
         245C.27, subdivision 2, paragraphs (a) and (b), and variances 327.1granted under paragraph (a), clause (5), to the commissioner at least monthly in a format 327.2prescribed by the commissioner.327.3    (c) For family day care programs, the commissioner may authorize licensing reviews 327.4every two years after a licensee has had at least one annual review.327.5    (d) For family adult day services programs, the commissioner may authorize 327.6licensing reviews every two years after a licensee has had at least one annual review.327.7    (e) A license issued under this section may be issued for up to two years.327.8(f) During implementation of chapter 245D, the commissioner shall consider:327.9(1) the role of counties in quality assurance;327.10(2) the duties of county licensing staff; and327.11(3) the possible use of joint powers agreements, according to section 
         471.59, with 327.12counties through which some licensing duties under chapter 245D may be delegated by 327.13the commissioner to the counties.327.14Any consideration related to this paragraph must meet all of the requirements of the 327.15corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.327.16(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 327.17successor provisions; and section 245D.061 or successor provisions, for family child 327.18foster care programs providing out-of-home respite, as identified in section 245D.03, 327.19subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority 327.20to county and private agencies.327.21    Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is 327.22amended to read:327.23    Subd. 3. Case manager. "Case manager" means the individual designated 327.24to provide waiver case management services, care coordination, or long-term care 327.25consultation, as specified in sections 
         256B.0913, 
         256B.0915, 
         256B.092, and 
         256B.49, 327.26or successor provisions. For purposes of this chapter, "case manager" includes case 327.27management services as defined in Minnesota Rules, part 9520.0902, subpart 3.327.28    Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is 327.29amended to read:327.30    Subd. 4b. Coordinated service and support plan. "Coordinated service and 327.31support plan" has the meaning given in sections 
         256B.0913, subdivision 8; 
         256B.0915, 327.32subdivision 
         6; 
         256B.092, subdivision 1b; and 
         256B.49, subdivision 15, or successor 327.33provisions. For purposes of this chapter, "coordinated service and support plan" includes 328.1the individual program plan or individual treatment plan as defined in Minnesota Rules, 328.2part 9520.0510, subpart 12.328.3    Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, 328.4is amended to read:328.5    Subd. 8b. Expanded support team. "Expanded support team" means the members 328.6of the support team defined in subdivision 46 34 and a licensed health or mental health 328.7professional or other licensed, certified, or qualified professionals or consultants working 328.8with the person and included in the team at the request of the person or the person's legal 328.9representative.328.10    Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11, 328.11is amended to read:328.12    Subd. 11. Incident. "Incident" means an occurrence which involves a person and 328.13requires the program to make a response that is not a part of the program's ordinary 328.14provision of services to that person, and includes:328.15(1) serious injury of a person as determined by section 
         245.91, subdivision 6;328.16(2) a person's death;328.17(3) any medical emergency, unexpected serious illness, or significant unexpected 328.18change in an illness or medical condition of a person that requires the program to call 328.19911, physician treatment, or hospitalization;328.20(4) any mental health crisis that requires the program to call 911 or, a mental 328.21health crisis intervention team, or a similar mental health response team or service when 328.22available and appropriate;328.23(5) an act or situation involving a person that requires the program to call 911, 328.24law enforcement, or the fire department;328.25(6) a person's unauthorized or unexplained absence from a program;328.26(7) conduct by a person receiving services against another person receiving services 328.27that:328.28(i) is so severe, pervasive, or objectively offensive that it substantially interferes with 328.29a person's opportunities to participate in or receive service or support;328.30(ii) places the person in actual and reasonable fear of harm;328.31(iii) places the person in actual and reasonable fear of damage to property of the 328.32person; or328.33(iv) substantially disrupts the orderly operation of the program;329.1(8) any sexual activity between persons receiving services involving force or 329.2coercion as defined under section 
         609.341, subdivisions 3 and 14;329.3(9) any emergency use of manual restraint as identified in section 
         245D.061or 329.4successor provisions; or329.5(10) a report of alleged or suspected child or vulnerable adult maltreatment under 329.6section 
         626.556 or 
         626.557.329.7    Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b, 329.8is amended to read:329.9    Subd. 15b. Mechanical restraint.(a) Except for devices worn by the person that 329.10trigger electronic alarms to warn staff that a person is leaving a room or area, which 329.11do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids 329.12or equipment or orthotic devices ordered by a health care professional used to treat or 329.13manage a medical condition, "Mechanical restraint" means the use of devices, materials, 329.14or equipment attached or adjacent to the person's body, or the use of practices that are 329.15intended to restrict freedom of movement or normal access to one's body or body parts, 329.16or limits a person's voluntary movement or holds a person immobile as an intervention 329.17precipitated by a person's behavior. The term applies to the use of mechanical restraint 329.18used to prevent injury with persons who engage in self-injurious behaviors, such as 329.19head-banging, gouging, or other actions resulting in tissue damage that have caused or 329.20could cause medical problems resulting from the self-injury.329.21(b) Mechanical restraint does not include the following:329.22(1) devices worn by the person that trigger electronic alarms to warn staff that a 329.23person is leaving a room or area, which do not, in and of themselves, restrict freedom of 329.24movement; or329.25(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care 329.26professional used to treat or manage a medical condition.329.27    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29, 329.28is amended to read:329.29    Subd. 29. Seclusion. "Seclusion" means the placement of a person alone in: (1) 329.30removing a person involuntarily to a room from which exit is prohibited by a staff person 329.31or a mechanism such as a lock, a device, or an object positioned to hold the door closed 329.32or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily 329.33removing or separating a person from an area, activity, situation, or social contact with 329.34others and blocking or preventing the person's return.330.1    Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34, 330.2is amended to read:330.3    Subd. 34. Support team. "Support team" means the service planning team 330.4identified in section 
         256B.49, subdivision 15, or; the interdisciplinary team identified in 330.5Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in 330.6Minnesota Rules, part 9520.0902, subpart 6.330.7    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a, 330.8is amended to read:330.9    Subd. 34a. Time out. "Time out" means removing a person involuntarily from an 330.10ongoing activity to a room, either locked or unlocked, or otherwise separating a person 330.11from others in a way that prevents social contact and prevents the person from leaving the 330.12situation if the person chooses the involuntary removal of a person for a period of time to 330.13a designated area from which the person is not prevented from leaving. For the purpose of 330.14this chapter, "time out" does not mean voluntary removal or self-removal for the purpose 330.15of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15 330.16minutes. "Time out" does not include a person voluntarily moving from an ongoing activity 330.17to an unlocked room or otherwise separating from a situation or social contact with others 330.18if the person chooses. For the purposes of this definition, "voluntarily" means without 330.19being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from 330.20an activity for the purpose of providing the person an opportunity to regain self-control.330.21    Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding 330.22a subdivision to read:330.23    Subd. 35b.Unlicensed staff."Unlicensed staff" means individuals not otherwise 330.24licensed or certified by a governmental health board or agency.330.25    Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is 330.26amended to read:330.27    Subdivision 1. Applicability.  (a) The commissioner shall regulate the provision of 330.28home and community-based services to persons with disabilities and persons age 65 and 330.29older pursuant to this chapter. The licensing standards in this chapter govern the provision 330.30of basic support services and intensive support services.330.31(b) Basic support services provide the level of assistance, supervision, and care that 330.32is necessary to ensure the health and safety of the person and do not include services that 331.1are specifically directed toward the training, treatment, habilitation, or rehabilitation of 331.2the person. Basic support services include:331.3(1) in-home and out-of-home respite care services as defined in section 
         245A.02, 331.4subdivision 15, and under the brain injury, community alternative care, community 331.5alternatives for disabled individuals, developmental disability, and elderly waiver plans, 331.6excluding out-of-home respite care provided to children in a family child foster care home 331.7licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care 331.8license holder complies with the requirements under section 245D.06, subdivisions 5, 6, 331.97, and 8, or successor provisions; and section 245D.061 or successor provisions, which 331.10must be stipulated in the statement of intended use required under Minnesota Rules, 331.11part 2960.3000, subpart 4;331.12(2) adult companion services as defined under the brain injury, community 331.13alternatives for disabled individuals, and elderly waiver plans, excluding adult companion 331.14services provided under the Corporation for National and Community Services Senior 331.15Companion Program established under the Domestic Volunteer Service Act of 1973, 331.16Public Law 98-288;331.17(3) personal support as defined under the developmental disability waiver plan;331.18(4) 24-hour emergency assistance, personal emergency response as defined under the 331.19community alternatives for disabled individuals and developmental disability waiver plans;331.20(5) night supervision services as defined under the brain injury waiver plan; and331.21(6) homemaker services as defined under the community alternatives for disabled 331.22individuals, brain injury, community alternative care, developmental disability, and elderly 331.23waiver plans, excluding providers licensed by the Department of Health under chapter 331.24144A and those providers providing cleaning services only.331.25(c) Intensive support services provide assistance, supervision, and care that is 331.26necessary to ensure the health and safety of the person and services specifically directed 331.27toward the training, habilitation, or rehabilitation of the person. Intensive support services 331.28include:331.29(1) intervention services, including:331.30(i) behavioral support services as defined under the brain injury and community 331.31alternatives for disabled individuals waiver plans;331.32(ii) in-home or out-of-home crisis respite services as defined under the developmental 331.33disability waiver plan; and331.34(iii) specialist services as defined under the current developmental disability waiver 331.35plan;331.36(2) in-home support services, including:332.1(i) in-home family support and supported living services as defined under the 332.2developmental disability waiver plan;332.3(ii) independent living services training as defined under the brain injury and 332.4community alternatives for disabled individuals waiver plans; and332.5(iii) semi-independent living services;332.6(3) residential supports and services, including:332.7(i) supported living services as defined under the developmental disability waiver 332.8plan provided in a family or corporate child foster care residence, a family adult foster 332.9care residence, a community residential setting, or a supervised living facility;332.10(ii) foster care services as defined in the brain injury, community alternative care, 332.11and community alternatives for disabled individuals waiver plans provided in a family or 332.12corporate child foster care residence, a family adult foster care residence, or a community 332.13residential setting; and332.14(iii) residential services provided to more than four persons with developmental 332.15disabilities in a supervised living facility that is certified by the Department of Health as 332.16an ICF/DD, including ICFs/DD;332.17(4) day services, including:332.18(i) structured day services as defined under the brain injury waiver plan;332.19(ii) day training and habilitation services under sections 
         252.40 to 
         252.46, and as 332.20defined under the developmental disability waiver plan; and332.21(iii) prevocational services as defined under the brain injury and community 332.22alternatives for disabled individuals waiver plans; and332.23(5) supported employment as defined under the brain injury, developmental 332.24disability, and community alternatives for disabled individuals waiver plans.332.25    Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding 332.26a subdivision to read:332.27    Subd. 1a.Effect.The home and community-based services standards establish 332.28health, safety, welfare, and rights protections for persons receiving services governed by 332.29this chapter. The standards recognize the diversity of persons receiving these services and 332.30require that these services are provided in a manner that meets each person's individual 332.31needs and ensures continuity in service planning, care, and coordination between the 332.32license holder and members of each person's support team or expanded support team.332.33    Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is 332.34amended to read:333.1    Subd. 2. Relationship to other standards governing home and community-based 333.2services. (a) A license holder governed by this chapter is also subject to the licensure 333.3requirements under chapter 245A.333.4(b) A corporate or family child foster care site controlled by a license holder and 333.5providing services governed by this chapter is exempt from compliance with section 333.6245D.04. This exemption applies to foster care homes where at least one resident is 333.7receiving residential supports and services licensed according to this chapter. This chapter 333.8does not apply to corporate or family child foster care homes that do not provide services 333.9licensed under this chapter.333.10(c) A family adult foster care site controlled by a license holder and providing 333.11services governed by this chapter is exempt from compliance with Minnesota Rules, 333.12parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These 333.13exemptions apply to family adult foster care homes where at least one resident is receiving 333.14residential supports and services licensed according to this chapter. This chapter does 333.15not apply to family adult foster care homes that do not provide services licensed under 333.16this chapter.333.17(d) A license holder providing services licensed according to this chapter in a 333.18supervised living facility is exempt from compliance with sectionssection 245D.04; 333.19245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).333.20(e) A license holder providing residential services to persons in an ICF/DD is exempt 333.21from compliance with sections 
         245D.04; 
         245D.05, subdivision 1b; 
         245D.06, subdivision 333.222
         , clauses (4) and (5); 
         245D.071, subdivisions 4 and 5; 
         245D.081, subdivision 2; 
         245D.09, 333.23subdivision 7; 
         245D.095, subdivision 2; and 
         245D.11, subdivision 3.333.24(f) A license holder providing homemaker services licensed according to this chapter 333.25and registered according to chapter 144A is exempt from compliance with section 
         245D.04.333.26(g) Nothing in this chapter prohibits a license holder from concurrently serving 333.27persons without disabilities or people who are or are not age 65 and older, provided this 333.28chapter's standards are met as well as other relevant standards.333.29(h) The documentation required under sections 
         245D.07 and 
         245D.071 must meet 333.30the individual program plan requirements identified in section 
         256B.092 or successor 333.31provisions.333.32    Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is 333.33amended to read:333.34    Subd. 3. Variance. If the conditions in section 
         245A.04, subdivision 9, are met, 333.35the commissioner may grant a variance to any of the requirements in this chapter, except 334.1sections 
         245D.04; 
         245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor 334.2provisions; and 
         245D.061, subdivision 3, or provisions governing data practices and 334.3information rights of persons.334.4    Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is 334.5amended to read:334.6    Subd. 3. Protection-related rights. (a) A person's protection-related rights include 334.7the right to:334.8(1) have personal, financial, service, health, and medical information kept private, 334.9and be advised of disclosure of this information by the license holder;334.10(2) access records and recorded information about the person in accordance with 334.11applicable state and federal law, regulation, or rule;334.12(3) be free from maltreatment;334.13(4) be free from restraint, time out, or seclusion, restrictive intervention, or other 334.14prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions334.15 except for: (i) emergency use of manual restraint to protect the person from imminent 334.16danger to self or others according to the requirements in section 
         245D.06; 245D.061 or 334.17successor provisions; or (ii) the use of safety interventions as part of a positive support 334.18transition plan under section 245D.06, subdivision 8, or successor provisions;334.19(5) receive services in a clean and safe environment when the license holder is the 334.20owner, lessor, or tenant of the service site;334.21(6) be treated with courtesy and respect and receive respectful treatment of the 334.22person's property;334.23(7) reasonable observance of cultural and ethnic practice and religion;334.24(8) be free from bias and harassment regarding race, gender, age, disability, 334.25spirituality, and sexual orientation;334.26(9) be informed of and use the license holder's grievance policy and procedures, 334.27including knowing how to contact persons responsible for addressing problems and to 334.28appeal under section 
         256.045;334.29(10) know the name, telephone number, and the Web site, e-mail, and street 334.30addresses of protection and advocacy services, including the appropriate state-appointed 334.31ombudsman, and a brief description of how to file a complaint with these offices;334.32(11) assert these rights personally, or have them asserted by the person's family, 334.33authorized representative, or legal representative, without retaliation;334.34(12) give or withhold written informed consent to participate in any research or 334.35experimental treatment;335.1(13) associate with other persons of the person's choice;335.2(14) personal privacy; and335.3(15) engage in chosen activities.335.4(b) For a person residing in a residential site licensed according to chapter 245A, 335.5or where the license holder is the owner, lessor, or tenant of the residential service site, 335.6protection-related rights also include the right to:335.7(1) have daily, private access to and use of a non-coin-operated telephone for local 335.8calls and long-distance calls made collect or paid for by the person;335.9(2) receive and send, without interference, uncensored, unopened mail or electronic 335.10correspondence or communication;335.11(3) have use of and free access to common areas in the residence; and335.12(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious 335.13advisor, or others, in accordance with section 
         363A.09 of the Human Rights Act, including 335.14privacy in the person's bedroom.335.15(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a), 335.16clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure 335.17the health, safety, and well-being of the person. Any restriction of those rights must be 335.18documented in the person's coordinated service and support plan or coordinated service 335.19and support plan addendum. The restriction must be implemented in the least restrictive 335.20alternative manner necessary to protect the person and provide support to reduce or 335.21eliminate the need for the restriction in the most integrated setting and inclusive manner. 335.22The documentation must include the following information:335.23(1) the justification for the restriction based on an assessment of the person's 335.24vulnerability related to exercising the right without restriction;335.25(2) the objective measures set as conditions for ending the restriction;335.26(3) a schedule for reviewing the need for the restriction based on the conditions 335.27for ending the restriction to occur semiannually from the date of initial approval, at a 335.28minimum, or more frequently if requested by the person, the person's legal representative, 335.29if any, and case manager; and335.30(4) signed and dated approval for the restriction from the person, or the person's 335.31legal representative, if any. A restriction may be implemented only when the required 335.32approval has been obtained. Approval may be withdrawn at any time. If approval is 335.33withdrawn, the right must be immediately and fully restored.335.34    Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is 335.35amended to read:336.1    Subdivision 1. Health needs. (a) The license holder is responsible for meeting 336.2health service needs assigned in the coordinated service and support plan or the 336.3coordinated service and support plan addendum, consistent with the person's health needs. 336.4The license holder is responsible for promptly notifying the person's legal representative, 336.5if any, and the case manager of changes in a person's physical and mental health needs 336.6affecting health service needs assigned to the license holder in the coordinated service and 336.7support plan or the coordinated service and support plan addendum, when discovered by 336.8the license holder, unless the license holder has reason to know the change has already 336.9been reported. The license holder must document when the notice is provided.336.10(b) If responsibility for meeting the person's health service needs has been assigned 336.11to the license holder in the coordinated service and support plan or the coordinated service 336.12and support plan addendum, the license holder must maintain documentation on how the 336.13person's health needs will be met, including a description of the procedures the license 336.14holder will follow in order to:336.15(1) provide medication setup, assistance, or medication administration according 336.16to this chapter. Unlicensed staff responsible for medication setup or medication 336.17administration under this section must complete training according to section 245D.09, 336.18subdivision 4a, paragraph (d);336.19(2) monitor health conditions according to written instructions from a licensed 336.20health professional;336.21(3) assist with or coordinate medical, dental, and other health service appointments; or336.22(4) use medical equipment, devices, or adaptive aides or technology safely and 336.23correctly according to written instructions from a licensed health professional.336.24    Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a, 336.25is amended to read:336.26    Subd. 1a. Medication setup.(a) For the purposes of this subdivision, "medication 336.27setup" means the arranging of medications according to instructions from the pharmacy, 336.28the prescriber, or a licensed nurse, for later administration when the license holder 336.29is assigned responsibility for medication assistance or medication administration in 336.30the coordinated service and support plan or the coordinated service and support plan 336.31addendum. A prescription label or the prescriber's written or electronically recorded order 336.32for the prescription is sufficient to constitute written instructions from the prescriber.336.33(b) If responsibility for medication setup is assigned to the license holder in 336.34the coordinated service and support plan or the coordinated service and support plan 336.35addendum, or if the license holder provides it as part of medication assistance or 337.1medication administration, the license holder must document in the person's medication 337.2administration record: dates of setup, name of medication, quantity of dose, times to be 337.3administered, and route of administration at time of setup; and, when the person will be 337.4away from home, to whom the medications were given.337.5    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b, 337.6is amended to read:337.7    Subd. 1b. Medication assistance.(a) For purposes of this subdivision, "medication 337.8assistance" means any of the following:337.9(1) bringing to the person and opening a container of previously set up medications, 337.10emptying the container into the person's hand, or opening and giving the medications in 337.11the original container to the person under the direction of the person;337.12(2) bringing to the person liquids or food to accompany the medication; or337.13(3) providing reminders to take regularly scheduled medication or perform regularly 337.14scheduled treatments and exercises.337.15(b) If responsibility for medication assistance is assigned to the license holder 337.16in the coordinated service and support plan or the coordinated service and support 337.17plan addendum, the license holder must ensure that the requirements of subdivision 2, 337.18paragraph (b), have been met when staff provides medication assistance to enableis 337.19provided in a manner that enables a person to self-administer medication or treatment 337.20when the person is capable of directing the person's own care, or when the person's legal 337.21representative is present and able to direct care for the person. For the purposes of this 337.22subdivision, "medication assistance" means any of the following:337.23(1) bringing to the person and opening a container of previously set up medications, 337.24emptying the container into the person's hand, or opening and giving the medications in 337.25the original container to the person;337.26(2) bringing to the person liquids or food to accompany the medication; or337.27(3) providing reminders to take regularly scheduled medication or perform regularly 337.28scheduled treatments and exercises.337.29    Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is 337.30amended to read:337.31    Subd. 2. Medication administration. (a) If responsibility for medication 337.32administration is assigned to the license holder in the coordinated service and support 337.33plan or the coordinated service and support plan addendum, the license holder must 337.34implement the following medication administration procedures to ensure a person takes 338.1medications and treatments as prescribed For purposes of this subdivision, "medication 338.2administration" means:338.3(1) checking the person's medication record;338.4(2) preparing the medication as necessary;338.5(3) administering the medication or treatment to the person;338.6(4) documenting the administration of the medication or treatment or the reason for 338.7not administering the medication or treatment; and338.8(5) reporting to the prescriber or a nurse any concerns about the medication or 338.9treatment, including side effects, effectiveness, or a pattern of the person refusing to 338.10take the medication or treatment as prescribed. Adverse reactions must be immediately 338.11reported to the prescriber or a nurse.338.12(b)(1) If responsibility for medication administration is assigned to the license holder 338.13in the coordinated service and support plan or the coordinated service and support plan 338.14addendum, the license holder must implement medication administration procedures 338.15to ensure a person takes medications and treatments as prescribed. The license holder 338.16must ensure that the requirements in clauses (2) to (4) and (3) have been met before 338.17administering medication or treatment.338.18(2) The license holder must obtain written authorization from the person or the 338.19person's legal representative to administer medication or treatment and must obtain 338.20reauthorization annually as needed. This authorization shall remain in effect unless it is 338.21withdrawn in writing and may be withdrawn at any time. If the person or the person's 338.22legal representative refuses to authorize the license holder to administer medication, the 338.23medication must not be administered. The refusal to authorize medication administration 338.24must be reported to the prescriber as expediently as possible.338.25(3) The staff person responsible for administering the medication or treatment must 338.26complete medication administration training according to section 245D.09, subdivision338.27 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).338.28(4) (3) For a license holder providing intensive support services, the medication or 338.29treatment must be administered according to the license holder's medication administration 338.30policy and procedures as required under section 
         245D.11, subdivision 2, clause (3).338.31(c) The license holder must ensure the following information is documented in the 338.32person's medication administration record:338.33(1) the information on the current prescription label or the prescriber's current 338.34written or electronically recorded order or prescription that includes the person's name, 338.35description of the medication or treatment to be provided, and the frequency and other 339.1information needed to safely and correctly administer the medication or treatment to 339.2ensure effectiveness;339.3(2) information on any risks or other side effects that are reasonable to expect, and 339.4any contraindications to its use. This information must be readily available to all staff 339.5administering the medication;339.6(3) the possible consequences if the medication or treatment is not taken or 339.7administered as directed;339.8(4) instruction on when and to whom to report the following:339.9(i) if a dose of medication is not administered or treatment is not performed as 339.10prescribed, whether by error by the staff or the person or by refusal by the person; and339.11(ii) the occurrence of possible adverse reactions to the medication or treatment;339.12(5) notation of any occurrence of a dose of medication not being administered or 339.13treatment not performed as prescribed, whether by error by the staff or the person or by 339.14refusal by the person, or of adverse reactions, and when and to whom the report was 339.15made; and339.16(6) notation of when a medication or treatment is started, administered, changed, or 339.17discontinued.339.18    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is 339.19amended to read:339.20    Subd. 4. Reviewing and reporting medication and treatment issues. (a) When 339.21assigned responsibility for medication administration, the license holder must ensure 339.22that the information maintained in the medication administration record is current and 339.23is regularly reviewed to identify medication administration errors. At a minimum, the 339.24review must be conducted every three months, or more frequently as directed in the 339.25coordinated service and support plan or coordinated service and support plan addendum 339.26or as requested by the person or the person's legal representative. Based on the review, 339.27the license holder must develop and implement a plan to correct patterns of medication 339.28administration errors when identified.339.29(b) If assigned responsibility for medication assistance or medication administration, 339.30the license holder must report the following to the person's legal representative and case 339.31manager as they occur or as otherwise directed in the coordinated service and support plan 339.32or the coordinated service and support plan addendum:339.33(1) any reports made to the person's physician or prescriber required under 339.34subdivision 2, paragraph (c), clause (4);340.1(2) a person's refusal or failure to take or receive medication or treatment as 340.2prescribed; or340.3(3) concerns about a person's self-administration of medication or treatment.340.4    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is 340.5amended to read:340.6    Subd. 5. Injectable medications. Injectable medications may be administered 340.7according to a prescriber's order and written instructions when one of the following 340.8conditions has been met:340.9(1) a registered nurse or licensed practical nurse will administer the subcutaneous or 340.10intramuscular injection;340.11(2) a supervising registered nurse with a physician's order has delegated the 340.12administration of subcutaneous injectable medication to an unlicensed staff member 340.13and has provided the necessary training; or340.14(3) there is an agreement signed by the license holder, the prescriber, and the 340.15person or the person's legal representative specifying what subcutaneous injections may 340.16be given, when, how, and that the prescriber must retain responsibility for the license 340.17holder's giving the injections. A copy of the agreement must be placed in the person's 340.18service recipient record.340.19Only licensed health professionals are allowed to administer psychotropic 340.20medications by injection.340.21    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:340.22245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.340.23    Subdivision 1. Conditions for psychotropic medication administration. (a) 340.24When a person is prescribed a psychotropic medication and the license holder is assigned 340.25responsibility for administration of the medication in the person's coordinated service 340.26and support plan or the coordinated service and support plan addendum, the license 340.27holder must ensure that the requirements in paragraphs (b) to (d) and section 
         245D.05, 340.28subdivision 2, are met.340.29(b) Use of the medication must be included in the person's coordinated service and 340.30support plan or in the coordinated service and support plan addendum and based on a 340.31prescriber's current written or electronically recorded prescription.340.32(c) (b) The license holder must develop, implement, and maintain the following 340.33documentation in the person's coordinated service and support plan addendum according 340.34to the requirements in sections 
         245D.07 and 
         245D.071:341.1(1) a description of the target symptoms that the psychotropic medication is to 341.2alleviate; and341.3(2) documentation methods the license holder will use to monitor and measure 341.4changes in the target symptoms that are to be alleviated by the psychotropic medication if 341.5required by the prescriber. The license holder must collect and report on medication and 341.6symptom-related data as instructed by the prescriber. The license holder must provide 341.7the monitoring data to the expanded support team for review every three months, or as 341.8otherwise requested by the person or the person's legal representative.341.9For the purposes of this section, "target symptom" refers to any perceptible 341.10diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic 341.11and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or 341.12successive editions, that has been identified for alleviation.341.13    Subd. 2. Refusal to authorize psychotropic medication. If the person or the 341.14person's legal representative refuses to authorize the administration of a psychotropic 341.15medication as ordered by the prescriber, the license holder must follow the requirement in 341.16section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication. 341.17The refusal to authorize medication administration must be reported to the prescriber as 341.18expediently as possible. After reporting the refusal to the prescriber, the license holder 341.19must follow any directives or orders given by the prescriber. A court order must be 341.20obtained to override the refusal.A refusal may not be overridden without a court order. 341.21Refusal to authorize administration of a specific psychotropic medication is not grounds 341.22for service termination and does not constitute an emergency. A decision to terminate 341.23services must be reached in compliance with section 
         245D.10, subdivision 3.341.24    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is 341.25amended to read:341.26    Subdivision 1. Incident response and reporting.  (a) The license holder must 341.27respond to incidents under section 
         245D.02, subdivision 11, that occur while providing 341.28services to protect the health and safety of and minimize risk of harm to the person.341.29(b) The license holder must maintain information about and report incidents to the 341.30person's legal representative or designated emergency contact and case manager within 341.3124 hours of an incident occurring while services are being provided, within 24 hours of 341.32discovery or receipt of information that an incident occurred, unless the license holder 341.33has reason to know that the incident has already been reported, or as otherwise directed 341.34in a person's coordinated service and support plan or coordinated service and support 341.35plan addendum. An incident of suspected or alleged maltreatment must be reported as 342.1required under paragraph (d), and an incident of serious injury or death must be reported 342.2as required under paragraph (e).342.3(c) When the incident involves more than one person, the license holder must not 342.4disclose personally identifiable information about any other person when making the report 342.5to each person and case manager unless the license holder has the consent of the person.342.6(d) Within 24 hours of reporting maltreatment as required under section 
         626.556 342.7or 
         626.557, the license holder must inform the case manager of the report unless there is 342.8reason to believe that the case manager is involved in the suspected maltreatment. The 342.9license holder must disclose the nature of the activity or occurrence reported and the 342.10agency that received the report.342.11(e) The license holder must report the death or serious injury of the person as 342.12required in paragraph (b) and to the Department of Human Services Licensing Division, 342.13and the Office of Ombudsman for Mental Health and Developmental Disabilities as 342.14required under section 
         245.94, subdivision 2a, within 24 hours of the death, or receipt of 342.15information that the death occurred, unless the license holder has reason to know that the 342.16death has already been reported.342.17(f) When a death or serious injury occurs in a facility certified as an intermediate 342.18care facility for persons with developmental disabilities, the death or serious injury must 342.19be reported to the Department of Health, Office of Health Facility Complaints, and the 342.20Office of Ombudsman for Mental Health and Developmental Disabilities, as required 342.21under sections 
         245.91 and 
         245.94, subdivision 2a, unless the license holder has reason to 342.22know that the death has already been reported.342.23(g) The license holder must conduct an internal review of incident reports of deaths 342.24and serious injuries that occurred while services were being provided and that were not 342.25reported by the program as alleged or suspected maltreatment, for identification of incident 342.26patterns, and implementation of corrective action as necessary to reduce occurrences. 342.27The review must include an evaluation of whether related policies and procedures were 342.28followed, whether the policies and procedures were adequate, whether there is a need for 342.29additional staff training, whether the reported event is similar to past events with the 342.30persons or the services involved, and whether there is a need for corrective action by the 342.31license holder to protect the health and safety of persons receiving services. Based on 342.32the results of this review, the license holder must develop, document, and implement a 342.33corrective action plan designed to correct current lapses and prevent future lapses in 342.34performance by staff or the license holder, if any.342.35(h) The license holder must verbally report the emergency use of manual restraint 342.36of a person as required in paragraph (b) within 24 hours of the occurrence. The license 343.1holder must ensure the written report and internal review of all incident reports of the 343.2emergency use of manual restraints are completed according to the requirements in section 343.3245D.061 or successor provisions.343.4    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is 343.5amended to read:343.6    Subd. 2. Environment and safety. The license holder must:343.7(1) ensure the following when the license holder is the owner, lessor, or tenant 343.8of the service site:343.9(i) the service site is a safe and hazard-free environment;343.10(ii) that toxic substances or dangerous items are inaccessible to persons served by 343.11the program only to protect the safety of a person receiving services when a known safety 343.12threat exists and not as a substitute for staff supervision or interactions with a person who 343.13is receiving services. If toxic substances or dangerous items are made inaccessible, the 343.14license holder must document an assessment of the physical plant, its environment, and its 343.15population identifying the risk factors which require toxic substances or dangerous items 343.16to be inaccessible and a statement of specific measures to be taken to minimize the safety 343.17risk to persons receiving services and to restore accessibility to all persons receiving 343.18services at the service site;343.19(iii) doors are locked from the inside to prevent a person from exiting only when 343.20necessary to protect the safety of a person receiving services and not as a substitute for 343.21staff supervision or interactions with the person. If doors are locked from the inside, the 343.22license holder must document an assessment of the physical plant, the environment and 343.23the population served, identifying the risk factors which require the use of locked doors, 343.24and a statement of specific measures to be taken to minimize the safety risk to persons 343.25receiving services at the service site; and343.26(iv) a staff person is available at the service site who is trained in basic first aid and, 343.27when required in a person's coordinated service and support plan or coordinated service 343.28and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are 343.29present and staff are required to be at the site to provide direct support service. The CPR 343.30training must include in-person instruction, hands-on practice, and an observed skills 343.31assessment under the direct supervision of a CPR instructor;343.32(2) maintain equipment, vehicles, supplies, and materials owned or leased by the 343.33license holder in good condition when used to provide services;344.1(3) follow procedures to ensure safe transportation, handling, and transfers of the 344.2person and any equipment used by the person, when the license holder is responsible for 344.3transportation of a person or a person's equipment;344.4(4) be prepared for emergencies and follow emergency response procedures to 344.5ensure the person's safety in an emergency; and344.6(5) follow universal precautions and sanitary practices, including hand washing, for 344.7infection prevention and control, and to prevent communicable diseases.344.8    Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is 344.9amended to read:344.10    Subd. 4. Funds and property; legal representative restrictions. (a) Whenever the 344.11license holder assists a person with the safekeeping of funds or other property according 344.12to section 
         245A.04, subdivision 13, the license holder must obtain written authorization 344.13to do so from the person or the person's legal representative and the case manager. 344.14Authorization must be obtained within five working days of service initiation and renewed 344.15annually thereafter. At the time initial authorization is obtained, the license holder must 344.16survey, document, and implement the preferences of the person or the person's legal 344.17representative and the case manager for frequency of receiving a statement that itemizes 344.18receipts and disbursements of funds or other property. The license holder must document 344.19changes to these preferences when they are requested.344.20(b) A license holder or staff person may not accept powers-of-attorney from a person 344.21receiving services from the license holder for any purpose. This does not apply to license 344.22holders that are Minnesota counties or other units of government or to staff persons 344.23employed by license holders who were acting as attorney-in-fact for specific individuals 344.24prior to implementation of this chapter. The license holder must maintain documentation 344.25of the power-of-attorney in the service recipient record.344.26(c) A license holder or staff person is restricted from accepting an appointment 344.27as a guardian as follows:344.28(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency 344.29that provides residence, custodial care, medical care, employment training, or other care 344.30or services for which the individual or agency receives a fee may not be appointed as 344.31guardian unless related to the respondent by blood, marriage, or adoption; and344.32(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related 344.33individual as defined under section 245A.02, subdivision 13, is excluded from licensure. 344.34Services provided by a license holder to a person under the license holder's guardianship 344.35are not licensed services.345.1(c) (d) Upon the transfer or death of a person, any funds or other property of the 345.2person must be surrendered to the person or the person's legal representative, or given to 345.3the executor or administrator of the estate in exchange for an itemized receipt.345.4    Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is 345.5amended to read:345.6    Subd. 6. Restricted procedures.(a) The following procedures are allowed when 345.7the procedures are implemented in compliance with the standards governing their use as 345.8identified in clauses (1) to (3). Allowed but restricted procedures include:345.9(1) permitted actions and procedures subject to the requirements in subdivision 7;345.10(2) procedures identified in a positive support transition plan subject to the 345.11requirements in subdivision 8; or345.12(3) emergency use of manual restraint subject to the requirements in section 345.13245D.061
         .345.14For purposes of this chapter, this section supersedes the requirements identified in 345.15Minnesota Rules, part 9525.2740.345.16    (b) A restricted procedure identified in paragraph (a) must not:345.17    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect, 345.18physical abuse, or mental injury, as defined in section 626.556, subdivision 2;345.19(2) be implemented with an adult in a manner that constitutes abuse or neglect as 345.20defined in section 626.5572, subdivision 2 or 17;345.21(3) be implemented in a manner that violates a person's rights identified in section 345.22245D.04;345.23(4) restrict a person's normal access to a nutritious diet, drinking water, adequate 345.24ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping 345.25conditions, necessary clothing, or any protection required by state licensing standards or 345.26federal regulations governing the program;345.27(5) deny the person visitation or ordinary contact with legal counsel, a legal 345.28representative, or next of kin;345.29(6) be used for the convenience of staff, as punishment, as a substitute for adequate 345.30staffing, or as a consequence if the person refuses to participate in the treatment or services 345.31provided by the program;345.32(7) use prone restraint. For purposes of this section, "prone restraint" means use 345.33of manual restraint that places a person in a face-down position. Prone restraint does 345.34not include brief physical holding of a person who, during an emergency use of manual 346.1restraint, rolls into a prone position, if the person is restored to a standing, sitting, or 346.2side-lying position as quickly as possible;346.3(8) apply back or chest pressure while a person is in a prone position as identified in 346.4clause (7), supine position, or side-lying position; or346.5(9) be implemented in a manner that is contraindicated for any of the person's known 346.6medical or psychological limitations.346.7    Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is 346.8amended to read:346.9    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques 346.10and intervention procedures as identified in paragraphs (b) and (c) is permitted when used 346.11on an intermittent or continuous basis. When used on a continuous basis, it must be 346.12addressed in a person's coordinated service and support plan addendum as identified in 346.13sections 
         245D.07 and 
         245D.071. For purposes of this chapter, the requirements of this 346.14subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.346.15(b) Physical contact or instructional techniques must use the least restrictive 346.16alternative possible to meet the needs of the person and may be used:346.17(1) to calm or comfort a person by holding that person with no resistance from 346.18that person;346.19(2) to protect a person known to be at risk or of  injury due to frequent falls as a result 346.20of a medical condition;346.21(3) to facilitate the person's completion of a task or response when the person does 346.22not resist or the person's resistance is minimal in intensity and duration; or346.23(4) to briefly block or redirect a person's limbs or body without holding the person or 346.24limiting the person's movement to interrupt the person's behavior that may result in injury 346.25to self or others. with less than 60 seconds of physical contact by staff; or346.26(5) to redirect a person's behavior when the behavior does not pose a serious threat 346.27to the person or others and the behavior is effectively redirected with less than 60 seconds 346.28of physical contact by staff.346.29(c) Restraint may be used as an intervention procedure to:346.30(1) allow a licensed health care professional to safely conduct a medical examination 346.31or to provide medical treatment ordered by a licensed health care professional to a person 346.32necessary to promote healing or recovery from an acute, meaning short-term, medical 346.33condition;346.34(2) assist in the safe evacuation or redirection of a person in the event of an 346.35emergency and the person is at imminent risk of harm.; or347.1Any use of manual restraint as allowed in this paragraph must comply with the restrictions 347.2identified in section 245D.061, subdivision 3; or347.3(3) position a person with physical disabilities in a manner specified in the person's 347.4coordinated service and support plan addendum.347.5Any use of manual restraint as allowed in this paragraph must comply with the restrictions 347.6identified in subdivision 6, paragraph (b).347.7(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment 347.8ordered by a licensed health professional to treat a diagnosed medical condition do not in 347.9and of themselves constitute the use of mechanical restraint.347.10(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when 347.11being transported in a vehicle in accordance with seat belt use requirements in section 347.12169.686 does not constitute the use of mechanical restraint.347.13    Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is 347.14amended to read:347.15    Subd. 8. Positive support transition plan.(a) License holders must develop 347.16a positive support transition plan on the forms and in the manner prescribed by the 347.17commissioner for a person who requires intervention in order to maintain safety when 347.18it is known that the person's behavior poses an immediate risk of physical harm to self 347.19or others. The positive support transition plan forms and instructions will supersede the 347.20requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The 347.21positive support transition plan must phase out any existing plans for the emergency 347.22or programmatic use of aversive or deprivation procedures restrictive interventions347.23 prohibited under this chapter within the following timelines:347.24(1) for persons receiving services from the license holder before January 1, 2014, 347.25the plan must be developed and implemented by February 1, 2014, and phased out no 347.26later than December 31, 2014; and347.27(2) for persons admitted to the program on or after January 1, 2014, the plan must be 347.28developed and implemented within 30 calendar days of service initiation and phased out 347.29no later than 11 months from the date of plan implementation.347.30(b) The commissioner has limited authority to grant approval for the emergency use 347.31of procedures identified in subdivision 6 that had been part of an approved positive support 347.32transition plan when a person is at imminent risk of serious injury as defined in section 347.33245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:347.34(1) the person's expanded support team approves the emergency use of the 347.35procedures; and348.1(2) the interim review panel established in section 245.8251, subdivision 4, 348.2recommends commissioner approval of the emergency use of the procedures.348.3(c) Written requests for the emergency use of the procedures must be developed 348.4and submitted to the commissioner by the designated coordinator with input from the 348.5person's expanded support team in accordance with the requirements set by the interim 348.6review panel, in addition to the following:348.7(1) a copy of the person's current positive support transition plan and copies of 348.8each positive support transition plan review containing data on the progress of the plan 348.9from the previous year;348.10(2) documentation of a good faith effort to eliminate the use of the procedures that 348.11had been part of an approved positive support transition plan;348.12(3) justification for the continued use of the procedures that identifies the imminent 348.13risk of serious injury due to the person's self-injurious behavior if the procedures were 348.14eliminated;348.15(4) documentation of the clinicians consulted in creating and maintaining the 348.16positive support transition plan; and348.17(5) documentation of the expanded support team's approval and the recommendation 348.18from the interim panel required under paragraph (b).348.19(d) A copy of the written request, supporting documentation, and the commissioner's 348.20final determination on the request must be maintained in the person's service recipient 348.21record.348.22    Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3, 348.23is amended to read:348.24    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service 348.25initiation the license holder must complete a preliminary coordinated service and support 348.26plan addendum based on the coordinated service and support plan.348.27(b) Within 45 days of service initiation the license holder must meet with the person, 348.28the person's legal representative, the case manager, and other members of the support team 348.29or expanded support team to assess and determine the following based on the person's 348.30coordinated service and support plan and the requirements in subdivision 4 and section 348.31245D.07, subdivision 1a:348.32(1) the scope of the services to be provided to support the person's daily needs 348.33and activities;348.34(2) the person's desired outcomes and the supports necessary to accomplish the 348.35person's desired outcomes;349.1(3) the person's preferences for how services and supports are provided;349.2(4) whether the current service setting is the most integrated setting available and 349.3appropriate for the person; and349.4(5) how services must be coordinated across other providers licensed under this 349.5chapter serving the same person to ensure continuity of care for the person.349.6(c) Within the scope of services, the license holder must, at a minimum, assess 349.7the following areas:349.8(1) the person's ability to self-manage health and medical needs to maintain or 349.9improve physical, mental, and emotional well-being, including, when applicable, allergies, 349.10seizures, choking, special dietary needs, chronic medical conditions, self-administration 349.11of medication or treatment orders, preventative screening, and medical and dental 349.12appointments;349.13(2) the person's ability to self-manage personal safety to avoid injury or accident in 349.14the service setting, including, when applicable, risk of falling, mobility, regulating water 349.15temperature, community survival skills, water safety skills, and sensory disabilities; and349.16(3) the person's ability to self-manage symptoms or behavior that may otherwise 349.17result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to 349.18(7), suspension or termination of services by the license holder, or other symptoms 349.19or behaviors that may jeopardize the health and safety of the person or others. The 349.20assessments must produce information about the person that is descriptive of the person's 349.21overall strengths, functional skills and abilities, and behaviors or symptoms.349.22(b) Within the scope of services, the license holder must, at a minimum, complete 349.23assessments in the following areas before the 45-day planning meeting:349.24(1) the person's ability to self-manage health and medical needs to maintain or 349.25improve physical, mental, and emotional well-being, including, when applicable, allergies, 349.26seizures, choking, special dietary needs, chronic medical conditions, self-administration 349.27of medication or treatment orders, preventative screening, and medical and dental 349.28appointments;349.29(2) the person's ability to self-manage personal safety to avoid injury or accident in 349.30the service setting, including, when applicable, risk of falling, mobility, regulating water 349.31temperature, community survival skills, water safety skills, and sensory disabilities; and349.32(3) the person's ability to self-manage symptoms or behavior that may otherwise 349.33result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7), 349.34suspension or termination of services by the license holder, or other symptoms or 349.35behaviors that may jeopardize the health and safety of the person or others.350.1Assessments must produce information about the person that describes the person's overall 350.2strengths, functional skills and abilities, and behaviors or symptoms. Assessments must 350.3be based on the person's status within the last 12 months at the time of service initiation. 350.4Assessments based on older information must be documented and justified. Assessments 350.5must be conducted annually at a minimum or within 30 days of a written request from the 350.6person or the person's legal representative or case manager. The results must be reviewed 350.7by the support team or expanded support team as part of a service plan review.350.8(c) Within 45 days of service initiation, the license holder must meet with the 350.9person, the person's legal representative, the case manager, and other members of the 350.10support team or expanded support team to determine the following based on information 350.11obtained from the assessments identified in paragraph (b), the person's identified needs 350.12in the coordinated service and support plan, and the requirements in subdivision 4 and 350.13section 245D.07, subdivision 1a:350.14(1) the scope of the services to be provided to support the person's daily needs 350.15and activities;350.16(2) the person's desired outcomes and the supports necessary to accomplish the 350.17person's desired outcomes;350.18(3) the person's preferences for how services and supports are provided;350.19(4) whether the current service setting is the most integrated setting available and 350.20appropriate for the person; and350.21(5) how services must be coordinated across other providers licensed under this 350.22chapter serving the person and members of the support team or expanded support team to 350.23ensure continuity of care and coordination of services for the person.350.24    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4, 350.25is amended to read:350.26    Subd. 4. Service outcomes and supports. (a) Within ten working days of the 350.2745-day planning meeting, the license holder must develop and document a service plan that 350.28documents the service outcomes and supports based on the assessments completed under 350.29subdivision 3 and the requirements in section 
         245D.07, subdivision 1a. The outcomes and 350.30supports must be included in the coordinated service and support plan addendum.350.31(b) The license holder must document the supports and methods to be implemented 350.32to support the accomplishment of person and accomplish outcomes related to acquiring, 350.33retaining, or improving skills and physical, mental, and emotional health and well-being. 350.34The documentation must include:351.1(1) the methods or actions that will be used to support the person and to accomplish 351.2the service outcomes, including information about:351.3(i) any changes or modifications to the physical and social environments necessary 351.4when the service supports are provided;351.5(ii) any equipment and materials required; and351.6(iii) techniques that are consistent with the person's communication mode and 351.7learning style;351.8(2) the measurable and observable criteria for identifying when the desired outcome 351.9has been achieved and how data will be collected;351.10(3) the projected starting date for implementing the supports and methods and 351.11the date by which progress towards accomplishing the outcomes will be reviewed and 351.12evaluated; and351.13(4) the names of the staff or position responsible for implementing the supports 351.14and methods.351.15(c) Within 20 working days of the 45-day meeting, the license holder must obtain 351.16dated signatures from the person or the person's legal representative and case manager 351.17to document completion and approval of the assessment and coordinated service and 351.18support plan addendum.351.19    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5, 351.20is amended to read:351.21    Subd. 5. Progress reviews Service plan review and evaluation. (a) The license 351.22holder must give the person or the person's legal representative and case manager an 351.23opportunity to participate in the ongoing review and development of the service plan 351.24and the methods used to support the person and accomplish outcomes identified in 351.25subdivisions 3 and 4. The license holder, in coordination with the person's support team 351.26or expanded support team, must meet with the person, the person's legal representative, 351.27and the case manager, and participate in progress service plan review meetings following 351.28stated timelines established in the person's coordinated service and support plan or 351.29coordinated service and support plan addendum or within 30 days of a written request 351.30by the person, the person's legal representative, or the case manager, at a minimum of 351.31once per year. The purpose of the service plan review is to determine whether changes 351.32are needed to the service plan based on the assessment information, the license holder's 351.33evaluation of progress towards accomplishing outcomes, or other information provided by 351.34the support team or expanded support team.352.1(b) The license holder must summarize the person's status and progress toward 352.2achieving the identified outcomes and make recommendations and identify the rationale 352.3for changing, continuing, or discontinuing implementation of supports and methods 352.4identified in subdivision 4 in a written report sent to the person or the person's legal 352.5representative and case manager five working days prior to the review meeting, unless 352.6the person, the person's legal representative, or the case manager requests to receive the 352.7report at the time of the meeting.352.8(c) Within ten working days of the progress review meeting, the license holder 352.9must obtain dated signatures from the person or the person's legal representative and 352.10the case manager to document approval of any changes to the coordinated service and 352.11support plan addendum.352.12    Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2, 352.13is amended to read:352.14    Subd. 2. Coordination and evaluation of individual service delivery. (a) Delivery 352.15and evaluation of services provided by the license holder must be coordinated by a 352.16designated staff person. The designated coordinator must provide supervision, support, 352.17and evaluation of activities that include:352.18(1) oversight of the license holder's responsibilities assigned in the person's 352.19coordinated service and support plan and the coordinated service and support plan 352.20addendum;352.21(2) taking the action necessary to facilitate the accomplishment of the outcomes 352.22according to the requirements in section 
         245D.07;352.23(3) instruction and assistance to direct support staff implementing the coordinated 352.24service and support plan and the service outcomes, including direct observation of service 352.25delivery sufficient to assess staff competency; and352.26(4) evaluation of the effectiveness of service delivery, methodologies, and progress on 352.27the person's outcomes based on the measurable and observable criteria for identifying when 352.28the desired outcome has been achieved according to the requirements in section 
         245D.07.352.29(b) The license holder must ensure that the designated coordinator is competent to 352.30perform the required duties identified in paragraph (a) through education and, training 352.31in human services and disability-related fields, and work experience in providing direct 352.32care services and supports to persons with disabilities relevant to the needs of the general 352.33population of persons served by the license holder and the individual persons for whom 352.34the designated coordinator is responsible. The designated coordinator must have the 352.35skills and ability necessary to develop effective plans and to design and use data systems 353.1to measure effectiveness of services and supports. The license holder must verify and 353.2document competence according to the requirements in section 
         245D.09, subdivision 3. 353.3The designated coordinator must minimally have:353.4(1) a baccalaureate degree in a field related to human services, and one year of 353.5full-time work experience providing direct care services to persons with disabilities or 353.6persons age 65 and older;353.7(2) an associate degree in a field related to human services, and two years of 353.8full-time work experience providing direct care services to persons with disabilities or 353.9persons age 65 and older;353.10(3) a diploma in a field related to human services from an accredited postsecondary 353.11institution and three years of full-time work experience providing direct care services to 353.12persons with disabilities or persons age 65 and older; or353.13(4) a minimum of 50 hours of education and training related to human services 353.14and disabilities; and353.15(5) four years of full-time work experience providing direct care services to persons 353.16with disabilities or persons age 65 and older under the supervision of a staff person who 353.17meets the qualifications identified in clauses (1) to (3).353.18    Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is 353.19amended to read:353.20    Subd. 3. Staff qualifications. (a) The license holder must ensure that staff providing 353.21direct support, or staff who have responsibilities related to supervising or managing the 353.22provision of direct support service, are competent as demonstrated through skills and 353.23knowledge training, experience, and education to meet the person's needs and additional 353.24requirements as written in the coordinated service and support plan or coordinated 353.25service and support plan addendum, or when otherwise required by the case manager or 353.26the federal waiver plan. The license holder must verify and maintain evidence of staff 353.27competency, including documentation of:353.28(1) education and experience qualifications relevant to the job responsibilities 353.29assigned to the staff and to the needs of the general population of persons served by the 353.30program, including a valid degree and transcript, or a current license, registration, or 353.31certification, when a degree or licensure, registration, or certification is required by this 353.32chapter or in the coordinated service and support plan or coordinated service and support 353.33plan addendum;353.34(2) demonstrated competency in the orientation and training areas required under 353.35this chapter, and when applicable, completion of continuing education required to 354.1maintain professional licensure, registration, or certification requirements. Competency in 354.2these areas is determined by the license holder through knowledge testing and or observed 354.3skill assessment conducted by the trainer or instructor; and354.4(3) except for a license holder who is the sole direct support staff, periodic 354.5performance evaluations completed by the license holder of the direct support staff 354.6person's ability to perform the job functions based on direct observation.354.7(b) Staff under 18 years of age may not perform overnight duties or administer 354.8medication.354.9    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a, 354.10is amended to read:354.11    Subd. 4a. Orientation to individual service recipient needs. (a) Before having 354.12unsupervised direct contact with a person served by the program, or for whom the staff 354.13person has not previously provided direct support, or any time the plans or procedures 354.14identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive 354.15instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff 354.16person's job functions for that person.354.17(b) Training and competency evaluations must include the following:354.18(1) appropriate and safe techniques in personal hygiene and grooming, including 354.19hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of 354.20daily living (ADLs) as defined under section 
         256B.0659, subdivision 1;354.21(2) an understanding of what constitutes a healthy diet according to data from the 354.22Centers for Disease Control and Prevention and the skills necessary to prepare that diet;354.23(3) skills necessary to provide appropriate support in instrumental activities of daily 354.24living (IADLs) as defined under section 
         256B.0659, subdivision 1; and354.25(4) demonstrated competence in providing first aid.354.26(c) The staff person must review and receive instruction on the person's coordinated 354.27service and support plan or coordinated service and support plan addendum as it relates 354.28to the responsibilities assigned to the license holder, and when applicable, the person's 354.29individual abuse prevention plan, to achieve and demonstrate an understanding of the 354.30person as a unique individual, and how to implement those plans.354.31(d) The staff person must review and receive instruction on medication setup, 354.32assistance, or administration procedures established for the person when medication 354.33administration is assigned to the license holder according to section 
         245D.05, subdivision 354.341
         , paragraph (b). Unlicensed staff may administer medications perform medication setup 354.35or medication administration only after successful completion of a medication setup or 355.1medication administration training, from a training curriculum developed by a registered 355.2nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse 355.3practitioner, physician's assistant, or physician or appropriate licensed health professional. 355.4The training curriculum must incorporate an observed skill assessment conducted by the 355.5trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow 355.6medication procedures.355.7Medication administration must be taught by a registered nurse, clinical nurse 355.8specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of 355.9service initiation or any time thereafter, the person has or develops a health care condition 355.10that affects the service options available to the person because the condition requires:355.11(1) specialized or intensive medical or nursing supervision; and355.12(2) nonmedical service providers to adapt their services to accommodate the health 355.13and safety needs of the person.355.14(e) The staff person must review and receive instruction on the safe and correct 355.15operation of medical equipment used by the person to sustain life, including but not 355.16limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided 355.17by a licensed health care professional or a manufacturer's representative and incorporate 355.18an observed skill assessment to ensure staff demonstrate the ability to safely and correctly 355.19operate the equipment according to the treatment orders and the manufacturer's instructions.355.20(f) The staff person must review and receive instruction on what constitutes use of 355.21restraints, time out, and seclusion, including chemical restraint, and staff responsibilities 355.22related to the prohibitions of their use according to the requirements in section 
         245D.06, 355.23subdivision 5, or successor provisions why such procedures are not effective for reducing 355.24or eliminating symptoms or undesired behavior and why they are not safe, and the safe 355.25and correct use of manual restraint on an emergency basis according to the requirements 355.26in section 
         245D.061 or successor provisions.355.27(g) The staff person must review and receive instruction on mental health crisis 355.28response, de-escalation techniques, and suicide intervention when providing direct support 355.29to a person with a serious mental illness.355.30(g)(h) In the event of an emergency service initiation, the license holder must ensure 355.31the training required in this subdivision occurs within 72 hours of the direct support staff 355.32person first having unsupervised contact with the person receiving services. The license 355.33holder must document the reason for the unplanned or emergency service initiation and 355.34maintain the documentation in the person's service recipient record.355.35(h)(i) License holders who provide direct support services themselves must 355.36complete the orientation required in subdivision 4, clauses (3) to (7).356.1    Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2, 356.2is amended to read:356.3    Subd. 2. Behavior professional qualifications. A behavior professional providing 356.4behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 356.5clause (1), item (i), as defined in the brain injury and community alternatives for disabled 356.6individuals waiver plans or successor plans, must have competencies in the following 356.7areas related to as required under the brain injury and community alternatives for disabled 356.8individuals waiver plans or successor plans:356.9(1) ethical considerations;356.10(2) functional assessment;356.11(3) functional analysis;356.12(4) measurement of behavior and interpretation of data;356.13(5) selecting intervention outcomes and strategies;356.14(6) behavior reduction and elimination strategies that promote least restrictive 356.15approved alternatives;356.16(7) data collection;356.17(8) staff and caregiver training;356.18(9) support plan monitoring;356.19(10) co-occurring mental disorders or neurocognitive disorder;356.20(11) demonstrated expertise with populations being served; and356.21(12) must be a:356.22(i) psychologist licensed under sections 
         148.88 to 
         148.98, who has stated to the 356.23Board of Psychology competencies in the above identified areas;356.24(ii) clinical social worker licensed as an independent clinical social worker under 356.25chapter 148D, or a person with a master's degree in social work from an accredited college 356.26or university, with at least 4,000 hours of post-master's supervised experience in the 356.27delivery of clinical services in the areas identified in clauses (1) to (11);356.28(iii) physician licensed under chapter 147 and certified by the American Board 356.29of Psychiatry and Neurology or eligible for board certification in psychiatry with 356.30competencies in the areas identified in clauses (1) to (11);356.31(iv) licensed professional clinical counselor licensed under sections 
         148B.29 to 356.32148B.39
          with at least 4,000 hours of post-master's supervised experience in the delivery 356.33of clinical services who has demonstrated competencies in the areas identified in clauses 356.34(1) to (11);356.35(v) person with a master's degree from an accredited college or university in one 356.36of the behavioral sciences or related fields, with at least 4,000 hours of post-master's 357.1supervised experience in the delivery of clinical services with demonstrated competencies 357.2in the areas identified in clauses (1) to (11); or357.3(vi) registered nurse who is licensed under sections 
         148.171 to 
         148.285, and who is 357.4certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 357.5mental health nursing by a national nurse certification organization, or who has a master's 357.6degree in nursing or one of the behavioral sciences or related fields from an accredited 357.7college or university or its equivalent, with at least 4,000 hours of post-master's supervised 357.8experience in the delivery of clinical services.357.9    Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3, 357.10is amended to read:357.11    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing 357.12behavioral support services as identified in section 245D.03, subdivision 1, paragraph 357.13(c), clause (1), item (i), as defined in the brain injury and community alternatives for 357.14disabled individuals waiver plans or successor plans, must have competencies in the 357.15following areas as required under the brain injury and community alternatives for disabled 357.16individuals waiver plans or successor plans:357.17(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services 357.18discipline; or357.19(2) meet the qualifications of a mental health practitioner as defined in section 357.20245.462, subdivision 17
         .357.21(b) In addition, a behavior analyst must:357.22(1) have four years of supervised experience working with individuals who exhibit 357.23challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;357.24(2) have received ten hours of instruction in functional assessment and functional 357.25analysis;357.26(3) have received 20 hours of instruction in the understanding of the function of 357.27behavior;357.28(4) have received ten hours of instruction on design of positive practices behavior 357.29support strategies;357.30(5) have received 20 hours of instruction on the use of behavior reduction approved 357.31strategies used only in combination with behavior positive practices strategies;357.32(6) be determined by a behavior professional to have the training and prerequisite 357.33skills required to provide positive practice strategies as well as behavior reduction 357.34approved and permitted intervention to the person who receives behavioral support; and357.35(7) be under the direct supervision of a behavior professional.358.1    Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4, 358.2is amended to read:358.3    Subd. 4. Behavior specialist qualifications. (a) A behavior specialist providing 358.4behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 358.5clause (1), item (i), as defined in the brain injury and community alternatives for disabled 358.6individuals waiver plans or successor plans, must meet the following qualifications have 358.7competencies in the following areas as required under the brain injury and community 358.8alternatives for disabled individuals waiver plans or successor plans:358.9(1) have an associate's degree in a social services discipline; or358.10(2) have two years of supervised experience working with individuals who exhibit 358.11challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.358.12(b) In addition, a behavior specialist must:358.13(1) have received a minimum of four hours of training in functional assessment;358.14(2) have received 20 hours of instruction in the understanding of the function of 358.15behavior;358.16(3) have received ten hours of instruction on design of positive practices behavioral 358.17support strategies;358.18(4) be determined by a behavior professional to have the training and prerequisite 358.19skills required to provide positive practices strategies as well as behavior reduction 358.20approved intervention to the person who receives behavioral support; and358.21(5) be under the direct supervision of a behavior professional.358.22    Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is 358.23amended to read:358.24    Subd. 3. Service suspension and service termination. (a) The license holder must 358.25establish policies and procedures for temporary service suspension and service termination 358.26that promote continuity of care and service coordination with the person and the case 358.27manager and with other licensed caregivers, if any, who also provide support to the person.358.28(b) The policy must include the following requirements:358.29(1) the license holder must notify the person or the person's legal representative and 358.30case manager in writing of the intended termination or temporary service suspension, and 358.31the person's right to seek a temporary order staying the termination of service according to 358.32the procedures in section 
         256.045, subdivision 4a, or 6, paragraph (c);358.33(2) notice of the proposed termination of services, including those situations that 358.34began with a temporary service suspension, must be given at least 60 days before the 358.35proposed termination is to become effective when a license holder is providing intensive 359.1supports and services identified in section 
         245D.03, subdivision 1, paragraph (c), and 30 359.2days prior to termination for all other services licensed under this chapter. This notice 359.3may be given in conjunction with a notice of temporary service suspension;359.4(3) notice of temporary service suspension must be given on the first day of the 359.5service suspension;359.6(3) (4) the license holder must provide information requested by the person or case 359.7manager when services are temporarily suspended or upon notice of termination;359.8(4) (5) prior to giving notice of service termination or temporary service suspension, 359.9the license holder must document actions taken to minimize or eliminate the need for 359.10service suspension or termination;359.11(5) (6) during the temporary service suspension or service termination notice period, 359.12the license holder will must work with the appropriate county agency support team or 359.13expanded support team to develop reasonable alternatives to protect the person and others;359.14(6) (7) the license holder must maintain information about the service suspension or 359.15termination, including the written termination notice, in the service recipient record; and359.16(7) (8) the license holder must restrict temporary service suspension to situations in 359.17which the person's conduct poses an imminent risk of physical harm to self or others and 359.18less restrictive or positive support strategies would not achieve and maintain safety.359.19    Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is 359.20amended to read:359.21    Subd. 4. Availability of current written policies and procedures. (a) The license 359.22holder must review and update, as needed, the written policies and procedures required 359.23under this chapter.359.24(b) (1) The license holder must inform the person and case manager of the policies 359.25and procedures affecting a person's rights under section 
         245D.04, and provide copies of 359.26those policies and procedures, within five working days of service initiation.359.27(2) If a license holder only provides basic services and supports, this includes the:359.28(i) grievance policy and procedure required under subdivision 2; and359.29(ii) service suspension and termination policy and procedure required under 359.30subdivision 3.359.31(3) For all other license holders this includes the:359.32(i) policies and procedures in clause (2);359.33(ii) emergency use of manual restraints policy and procedure required under section 359.34245D.061, subdivision 10, or successor provisions; and359.35(iii) data privacy requirements under section 
         245D.11, subdivision 3.360.1(c) The license holder must provide a written notice to all persons or their legal 360.2representatives and case managers at least 30 days before implementing any procedural 360.3revisions to policies affecting a person's service-related or protection-related rights under 360.4section 
         245D.04 and maltreatment reporting policies and procedures. The notice must 360.5explain the revision that was made and include a copy of the revised policy and procedure. 360.6The license holder must document the reasonable cause for not providing the notice at 360.7least 30 days before implementing the revisions.360.8(d) Before implementing revisions to required policies and procedures, the license 360.9holder must inform all employees of the revisions and provide training on implementation 360.10of the revised policies and procedures.360.11(e) The license holder must annually notify all persons, or their legal representatives, 360.12and case managers of any procedural revisions to policies required under this chapter, 360.13other than those in paragraph (c). Upon request, the license holder must provide the 360.14person, or the person's legal representative, and case manager with copies of the revised 360.15policies and procedures.360.16    Sec. 46. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is 360.17amended to read:360.18    Subd. 2. Health and safety. The license holder must establish policies and 360.19procedures that promote health and safety by ensuring:360.20(1) use of universal precautions and sanitary practices in compliance with section 360.21245D.06, subdivision 2
         , clause (5);360.22(2) if the license holder operates a residential program, health service coordination 360.23and care according to the requirements in section 
         245D.05, subdivision 1;360.24(3) safe medication assistance and administration according to the requirements 360.25in sections 
         245D.05, subdivisions 1a, 2, and 5, and 
         245D.051, that are established in 360.26consultation with a registered nurse, nurse practitioner, physician's assistant, or medical 360.27doctor and require completion of medication administration training according to the 360.28requirements in section 
         245D.09, subdivision 4a, paragraph (d). Medication assistance 360.29and administration includes, but is not limited to:360.30(i) providing medication-related services for a person;360.31(ii) medication setup;360.32(iii) medication administration;360.33(iv) medication storage and security;360.34(v) medication documentation and charting;361.1(vi) verification and monitoring of effectiveness of systems to ensure safe medication 361.2handling and administration;361.3(vii) coordination of medication refills;361.4(viii) handling changes to prescriptions and implementation of those changes;361.5(ix) communicating with the pharmacy; and361.6(x) coordination and communication with prescriber;361.7(4) safe transportation, when the license holder is responsible for transportation of 361.8persons, with provisions for handling emergency situations according to the requirements 361.9in section 
         245D.06, subdivision 2, clauses (2) to (4);361.10(5) a plan for ensuring the safety of persons served by the program in emergencies as 361.11defined in section 
         245D.02, subdivision 8, and procedures for staff to report emergencies 361.12to the license holder. A license holder with a community residential setting or a day service 361.13facility license must ensure the policy and procedures comply with the requirements in 361.14section 
         245D.22, subdivision 4;361.15(6) a plan for responding to all incidents as defined in section 
         245D.02, subdivision 361.1611; and reporting all incidents required to be reported according to section 
         245D.06, 361.17subdivision 1. The plan must:361.18(i) provide the contact information of a source of emergency medical care and 361.19transportation; and361.20(ii) require staff to first call 911 when the staff believes a medical emergency may 361.21be life threatening, or to call the mental health crisis intervention team or similar mental 361.22health response team or service when such a team is available and appropriate when the 361.23person is experiencing a mental health crisis; and361.24(7) a procedure for the review of incidents and emergencies to identify trends or 361.25patterns, and corrective action if needed. The license holder must establish and maintain 361.26a record-keeping system for the incident and emergency reports. Each incident and 361.27emergency report file must contain a written summary of the incident. The license holder 361.28must conduct a review of incident reports for identification of incident patterns, and 361.29implementation of corrective action as necessary to reduce occurrences. Each incident 361.30report must include:361.31(i) the name of the person or persons involved in the incident. It is not necessary 361.32to identify all persons affected by or involved in an emergency unless the emergency 361.33resulted in an incident;361.34(ii) the date, time, and location of the incident or emergency;361.35(iii) a description of the incident or emergency;362.1(iv) a description of the response to the incident or emergency and whether a person's 362.2coordinated service and support plan addendum or program policies and procedures were 362.3implemented as applicable;362.4(v) the name of the staff person or persons who responded to the incident or 362.5emergency; and362.6(vi) the determination of whether corrective action is necessary based on the results 362.7of the review.362.8    Sec. 47. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:362.9    Subd. 2. Vendor participation and reimbursement. Notwithstanding requirements 362.10in chapter chapters 245A and 245D, and sections 
         252.28, 
         252.40 to 
         252.46, and 
         256B.501, 362.11vendors of day training and habilitation services may enter into written agreements with 362.12qualified businesses to provide additional training and supervision needed by individuals 362.13to maintain their employment.362.14    Sec. 48. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:362.15    Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies 362.16on aging the state and federal funds which are received for the senior nutrition programs 362.17of congregate dining and home-delivered meals in a manner consistent with federal 362.18requirements.362.19    Sec. 49. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 17, 362.20is amended to read:362.21    Subd. 17. Transportation costs.(a) "Nonemergency medical transportation 362.22service" means motor vehicle transportation provided by a public or private person 362.23that serves Minnesota health care program beneficiaries who do not require emergency 362.24ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered 362.25medical services. Nonemergency medical transportation service includes, but is not 362.26limited to, special transportation service, defined in section 174.29, subdivision 1.362.27(a)(b) Medical assistance covers medical transportation costs incurred solely for 362.28obtaining emergency medical care or transportation costs incurred by eligible persons in 362.29obtaining emergency or nonemergency medical care when paid directly to an ambulance 362.30company, common carrier, or other recognized providers of transportation services. 362.31Medical transportation must be provided by:362.32(1) an ambulance nonemergency medical transportation providers who meet the 362.33requirements of this subdivision;363.1(2) ambulances, as defined in section 
         144E.001, subdivision 2;363.2(2) special transportation; or363.3(3) common carrier including, but not limited to, bus, taxicab, other commercial 363.4carrier, or private automobile taxicabs and public transit, as defined in section 174.22, 363.5subdivision 7; or363.6(4) not-for-hire vehicles, including volunteer drivers.363.7(b)(c) Medical assistance covers special transportation, as defined in Minnesota 363.8Rules, part 9505.0315, subpart 1, item F, if the recipient has a physical or mental 363.9impairment that would prohibit the recipient from safely accessing and using a bus, 363.10taxi, other commercial transportation, or private automobile. nonemergency medical 363.11transportation provided by nonemergency medical transportation providers enrolled in 363.12the Minnesota health care programs.  All nonemergency medical transportation providers 363.13must comply with the operating standards for special transportation service as defined in 363.14sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and in consultation with 363.15the Minnesota Department of Transportation. All nonemergency medical transportation 363.16providers shall bill for nonemergency medical transportation services in accordance with 363.17Minnesota health care programs criteria.  Publicly operated transit systems, volunteers, 363.18and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.363.19(d) The administrative agency of nonemergency medical transportation must:363.20(1) adhere to the policies defined by the commissioner in consultation with the 363.21Nonemergency Medical Transportation Advisory Committee;363.22(2) pay nonemergency medical transportation providers for services provided to 363.23Minnesota health care programs beneficiaries to obtain covered medical services;363.24(3) provide data monthly to the commissioner on appeals, complaints, no-shows, 363.25canceled trips, and number of trips by mode; and363.26(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single 363.27administrative structure assessment tool that meets the technical requirements established 363.28by the commissioner, reconciles trip information with claims being submitted by 363.29providers, and ensures prompt payment for nonemergency medical transportation services.363.30    (e) Until the commissioner implements the single administrative structure and 363.31delivery system under subdivision 18e, clients shall obtain their level-of-service certificate 363.32from the commissioner or an entity approved by the commissioner that does not dispatch 363.33rides for clients using modes under paragraph (h), clauses (4), (5), (6), and (7).363.34    (f) The commissioner may use an order by the recipient's attending physician363.35 or a medical or mental health professional to certify that the recipient requires 363.36special transportation services nonemergency medical transportation services. Special364.1Nonemergency medical transportation providers shall perform driver-assisted services for 364.2eligible individuals, when appropriate. Driver-assisted service includes passenger pickup 364.3at and return to the individual's residence or place of business, assistance with admittance of 364.4the individual to the medical facility, and assistance in passenger securement or in securing 364.5of wheelchairs or stretchers in the vehicle. SpecialNonemergency medical transportation 364.6providers must obtain written documentation from the health care service provider who 364.7is serving the recipient being transported, identifying the time that the recipient arrived. 364.8Specialhave trip logs, which include pickup and drop-off times, signed by the medical 364.9provider or client attesting mileage traveled to obtain covered medical services, whichever 364.10is deemed most appropriate. Nonemergency medical transportation providers may not bill 364.11for separate base rates for the continuation of a trip beyond the original destination. Special364.12Nonemergency medical transportation providers must take recipientsclients to the health 364.13care provider, using the most direct route, and must not exceed 30 miles for a trip to a 364.14primary care provider or 60 miles for a trip to a specialty care provider, unless the recipient364.15client receives authorization from the local agency. The minimum medical assistance 364.16reimbursement rates for special transportation nonemergency medical  services are:364.17(1)(i) $17 for the base rate and $1.35 per mile for special transportation364.18 nonemergency medical  services to eligible persons who need a wheelchair-accessible van;364.19(ii) $11.50 for the base rate and $1.30 per mile for special nonemergency medical 364.20transportation services to eligible persons who do not need a wheelchair-accessible van; and364.21(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip, 364.22for special nonemergency medical  transportation services to eligible persons who need a 364.23stretcher-accessible vehicle;364.24(2) clients requesting client mileage reimbursement must sign the trip log attesting 364.25mileage traveled to obtain covered medical services.364.26(g) By July 1, 2015, the commissioner shall determine reimbursement for the modes 364.27under this paragraph and paragraphs (h) and (i), using existing rates in paragraph (f). The 364.28rates must be budget neutral, ensuring that the total aggregate payments are equal to the 364.29total aggregate payments for the same number and types of services in the base year 364.302013. The covered modes of nonemergency medical transportation include transportation 364.31provided directly by clients or family members of clients with their own transportation, 364.32volunteers using their own vehicles, taxicabs, and public transit, or provided to a client 364.33who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle, a vehicle that is not 364.34stretcher-accessible or lift/ramp equipped designed to transport seven or fewer persons, 364.35and a protected vehicle that is not an ambulance or police car and has safety locks, a 365.1video recorder, and a transparent thermoplastic partition between the passenger and the 365.2vehicle driver.365.3(h) The administrative agency shall use the level of service process established 365.4by the commissioner in consultation with the Nonemergency Medical Transportation 365.5Advisory Committee to determine the client's most appropriate mode of transportation.  365.6If public transit or a certified transportation provider is not available to provide the 365.7appropriate service mode for the client, the client may receive a onetime service upgrade. 365.8Clients can be found eligible for the most appropriate of the following modes:365.9(1) client reimbursement, which includes client mileage reimbursement provided 365.10to clients who have their own transportation or family who provides transportation to 365.11the client;365.12(2) volunteer transport, which includes transportation by volunteers using their 365.13own vehicle;365.14(3) unassisted transport, which includes transportation provided to a client by a 365.15taxicab or public transit. If a taxicab or publicly operated transit system is not available, 365.16the client can receive transportation from another nonemergency medical transportation 365.17provider;365.18(4) assisted transport, which includes transport provided to clients who require 365.19assistance by a nonemergency medical transportation provider;365.20(5) lift-equipped/ramp transport, which includes transport provided to a client who 365.21is dependent on a device and requires a nonemergency medical transportation provider 365.22with a vehicle containing a lift or ramp;365.23(6) protected transport, which includes transport to a client who has received a 365.24prescreening that has deemed other forms of transportation inappropriate and who requires 365.25a provider certified as a protected transport provider; and365.26(7) stretcher transport, which includes transport for a client in a prone or supine 365.27position and requires a nonemergency medical transportation provider with a vehicle that 365.28can transport a client in a prone or supine position.365.29(i) By July 1, 2015, local agencies shall administer and reimburse for modes within 365.30existing appropriations defined in paragraph (h), clauses (1) to (3). The commissioner 365.31shall administer and reimburse for modes within existing appropriations defined in 365.32paragraph (h), clauses (4) to (7). In accordance with subdivision 18e, by July 1, 2016, the 365.33local agency shall be the single administrative agency and shall administer and reimburse 365.34for modes defined in paragraph (h).365.35(j) The commissioner shall:366.1(1) in consultation with the Nonemergency Medical Transportation Advisory 366.2Committee, verify that the mode and use of nonemergency medical transportation is 366.3appropriate;366.4(2) verify that the client is going to an approved medical appointment; and366.5(3) investigate all complaints and appeals.366.6(k) The administrative agency shall pay for the services provided in this subdivision 366.7and seek reimbursement from the commissioner if appropriate.  As vendors of medical care, 366.8local agencies are subject to the provisions in section 256B.041, the sanctions and monetary 366.9recovery actions in section 256B.064, and Minnesota Rules parts 9505.2160 to 9505.2245.366.10(l) The base rates for specialnonemergency medical transportation services in areas 366.11defined under RUCA to be super rural shall be equal to the reimbursement rate established 366.12in paragraph (f), clause (1),  plus 11.3 percent;,  and366.13(3) for specialnonemergency medical transportation services in areas defined under 366.14RUCA to be rural or super rural areas:366.15(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125 366.16percent of the respective mileage rate in paragraph (f), clause (1); and366.17(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to 366.18112.5 percent of the respective mileage rate in paragraph (f), clause (1).366.19(c)(m) For purposes of reimbursement rates for specialnonemergency medical 366.20transportation services under paragraph (b), the zip code of the recipient's place of residence 366.21shall determine whether the urban, rural, or super rural reimbursement rate applies.366.22(d)(n) For purposes of this subdivision, "rural urban commuting area" or "RUCA" 366.23means a census-tract based classification system under which a geographical area is 366.24determined to be urban, rural, or super rural.366.25(e)(o) Effective for services provided on or after September 1, 2011, nonemergency 366.26transportation rates, including special nonemergency medical  transportation, taxi, and 366.27other commercial carriers, are reduced 4.5 percent. Payments made to managed care plans 366.28and county-based purchasing plans must be reduced for services provided on or after 366.29January 1, 2012, to reflect this reduction.366.30(p) Until July 1, 2016, clients using assisted transportation must continue with 366.31their current administrative agency. For clients newly assessed as needing assisted 366.32transportation, the local agency must continue to administer assisted transport when 366.33assistance requires door-to-door, and the commissioner shall administer assisted transport 366.34when assistance requires door-through-door.367.1    Sec. 50. Minnesota Statutes 2012, section 256B.0625, subdivision 18b, is amended to 367.2read:367.3    Subd. 18b. Broker dispatching prohibition. The commissioner shall not use a 367.4broker or coordinator for any purpose related to nonemergency medical transportation 367.5services under subdivision 18.367.6    Sec. 51. Minnesota Statutes 2012, section 256B.0625, subdivision 18c, is amended to 367.7read:367.8    Subd. 18c. Nonemergency Medical Transportation Advisory Committee.367.9(a) The Nonemergency Medical Transportation Advisory Committee shall advise the 367.10commissioner on the administration of nonemergency medical transportation covered 367.11under medical assistance. The advisory committee shall meet at least quarterly the first 367.12year following January 1, 2015, and at least biannually thereafter and may meet more 367.13frequently as required by the commissioner. The advisory committee shall annually 367.14elect a chair from among its members, who shall work with the commissioner or the 367.15commissioner's designee to establish the agenda for each meeting. The commissioner, or 367.16the commissioner's designee, shall attend all advisory committee meetings.367.17(b) The Nonemergency Medical Transportation Advisory Committee shall advise 367.18and make recommendations to the commissioner on:367.19(1) the development of, and periodic updates to, athe nonemergency medical 367.20transportation policy manual for nonemergency medical transportation services;367.21(2) policies and a funding source for reimbursing no-load miles;367.22(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the 367.23nonemergency medical transportation system;367.24(4) other issues identified in the 2011 evaluation report by the Office of the 367.25Legislative Auditor on medical nonemergency transportation; and367.26(5)(2) other aspects of the nonemergency medical transportation system, as 367.27requested by the commissioner.; and367.28(3) other aspects of the nonemergency medical transportation system, as requested by:367.29(i) a committee member, who may request an item to be placed on the agenda for 367.30a future meeting. The request may be considered by the committee and voted upon. 367.31If the motion carries, the meeting agenda item may be developed for presentation to 367.32the committee; and367.33(ii) a member of the public, who may approach the committee by letter or e-mail 367.34requesting that an item be placed on a future meeting agenda. The request may be 368.1considered by the committee and voted upon. If the motion carries, the agenda item may 368.2be developed for presentation to the committee.368.3(c) The Nonemergency Medical Transportation Advisory Committee shall 368.4coordinate its activities with the Minnesota Council on Transportation Access established 368.5under section 
         174.285. The chair of the advisory committee, or the chair's designee, shall 368.6attend all meetings of the Minnesota Council on Transportation Access.368.7(d) The Nonemergency Medical Transportation Advisory Committee shall expire 368.8December 1, 2014 2019.368.9    Sec. 52. Minnesota Statutes 2012, section 256B.0625, subdivision 18d, is amended to 368.10read:368.11    Subd. 18d. Advisory committee members. (a) The Nonemergency Medical 368.12Transportation Advisory Committee consists of:368.13(1) two voting members who represent counties, at least one of whom must represent 368.14a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 368.15Ramsey, Scott, Sherburne, Washington, and Wright four voting members who represent 368.16counties, utilizing the rural urban commuting area classification system. As defined in 368.17subdivision 17, these members shall be designated as follows:368.18(i) two counties within the 11-county metropolitan area;368.19(ii) one county representing the rural area of the state; and368.20(iii) one county representing the super rural area of the state.368.21The Association of Minnesota Counties shall appoint one county within the 11-county 368.22metropolitan area and one county representing the super rural area of the state. The 368.23Minnesota Inter-County Association shall appoint one county within the 11-county 368.24metropolitan area and one county representing the rural area of the state;368.25(2) fourthree voting members who represent medical assistance recipients, including 368.26persons with physical and developmental disabilities, persons with mental illness, seniors, 368.27children, and low-income individuals;368.28(3) four voting members who represent providers that deliver nonemergency medical 368.29transportation services to medical assistance enrollees;368.30(4) two voting members of the house of representatives, one from the majority 368.31party and one from the minority party, appointed by the speaker of the house, and two 368.32voting members from the senate, one from the majority party and one from the minority 368.33party, appointed by the Subcommittee on Committees of the Committee on Rules and 368.34Administration;369.1(5) one voting member who represents demonstration providers as defined in section 369.2256B.69, subdivision 2
         ;369.3(6) one voting member who represents an organization that contracts with state or 369.4local governments to coordinate transportation services for medical assistance enrollees; 369.5and369.6(7) one voting member who represents the Minnesota State Council on Disability;369.7(8) the commissioner of transportation or the commissioner's designee, who shall 369.8serve as a voting member;369.9(9) one voting member appointed by the Minnesota Ambulance Association; and369.10(10) one voting member appointed by the Minnesota Hospital Association.369.11(b) Members of the advisory committee shall not be employed by the Department of 369.12Human Services. Members of the advisory committee shall receive no compensation.369.13    Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18e, 369.14is amended to read:369.15    Subd. 18e. Single administrative structure and delivery system.(a) The 369.16commissioner shall implement a single administrative structure and delivery system 369.17for nonemergency medical transportation, beginning the latter of the date the single 369.18administrative assessment tool required in this paragraph is available for use, as 369.19determined by the commissioner or by July 1, 2014 2016. The single administrative 369.20structure and delivery system must:369.21(1) eliminate the distinction between access transportation services and special 369.22transportation services;369.23(2) enable all medical assistance recipients to follow the same process to obtain 369.24nonemergency medical transportation, regardless of their level of need;369.25(3) provide a single oversight framework for all providers of nonemergency medical 369.26transportation; and369.27(4) provide flexibility in service delivery, recognizing that clients fall along a 369.28continuum of needs and resources.369.29(b) The commissioner shall present to the legislature, by January 15, 2014, 369.30legislation necessary to implement the single administrative structure and delivery system 369.31for nonemergency medical transportation.369.32(c) In developing the single administrative structure and delivery system and the draft 369.33legislation, the commissioner shall consult with the Nonemergency Medical Transportation 369.34Advisory Committee. In coordination with the Department of Transportation, the 369.35commissioner shall develop and authorize a Web-based single administrative structure 370.1and assessment tool, which must operate 24 hours a day, seven days a week, to facilitate 370.2the enrollee assessment process for nonemergency medical transportation services.  370.3The Web-based tool shall facilitate the transportation eligibility determination process 370.4initiated by clients and client advocates; shall include an accessible automated intake 370.5and assessment process and real-time identification of level of service eligibility; and 370.6shall authorize an appropriate and auditable mode of transportation authorization.  The 370.7tool shall provide a single framework for reconciling trip information with claiming and 370.8collecting complaints regarding inappropriate level of need determinations, inappropriate 370.9transportation modes utilized, and interference with accessing nonemergency medical 370.10transportation.  The Web-based single administrative structure shall operate on a trial 370.11basis for one year from implementation and, if approved by the commissioner, shall be 370.12permanent thereafter. The commissioner shall seek input from the Nonemergency Medical 370.13Transportation Advisory Committee to ensure the software is effective and user-friendly 370.14and make recommendations regarding funding of the single administrative system.370.15    Sec. 54. Minnesota Statutes 2012, section 256B.0625, subdivision 18g, is amended to 370.16read:370.17    Subd. 18g. Use of standardized measures.The commissioner, in consultation 370.18with the Nonemergency Medical Transportation Advisory Committee, shall establish 370.19performance measures to assess the cost-effectiveness and quality of nonemergency 370.20medical transportation. At a minimum, performance measures should include the number 370.21of unique participants served by type of transportation provider, number of trips provided 370.22by type of transportation provider, and cost per trip by type of transportation provider. The 370.23commissioner must also consider the measures identified in the January 2012 Department 370.24of Human Services report to the legislature on nonemergency medical transportation.370.25 Beginning in calendar year 2013 2015, the commissioner shall collect, audit, and analyze 370.26performance data on nonemergency medical transportation annually and report this 370.27information on the agency's Web site. The commissioner shall periodically supplement 370.28this information with the results of consumer surveys of the quality of services, and shall 370.29make these survey findings available to the public on the agency Web site.370.30    Sec. 55. Minnesota Statutes 2012, section 256B.0625, is amended by adding a 370.31subdivision to read:370.32    Subd. 18h.Managed care.The following subdivisions do not apply to managed 370.33care plans and county-based purchasing plans:370.34    (1) subdivision 17, paragraphs (d) to (k);371.1    (2) subdivision 18e; and371.2    (3) subdivision 18g.371.3    Sec. 56. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:371.4    Subdivision 1. Personal needs allowance. (a) Notwithstanding any law to the 371.5contrary, welfare allowances for clothing and personal needs for individuals receiving 371.6medical assistance while residing in any skilled nursing home, intermediate care facility, 371.7or medical institution including recipients of Supplemental Security Income, in this state 371.8shall not be less than $45 per month from all sources. When benefit amounts for Social 371.9Security or Supplemental Security Income recipients are increased pursuant to United 371.10States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the 371.11month in which the increase takes effect, increase by the same percentage to the nearest 371.12whole dollar the clothing and personal needs allowance for individuals receiving medical 371.13assistance while residing in any skilled nursing home, medical institution, or intermediate 371.14care facility. The commissioner shall provide timely notice to local agencies, providers, 371.15and recipients of increases under this provision.371.16(b) The personal needs allowance may be paid as part of the Minnesota supplemental 371.17aid program, and payments to recipients of Minnesota supplemental aid may be made once 371.18each three months covering liabilities that accrued during the preceding three months.371.19(c) The personal needs allowance shall be increased to include income garnished 371.20for child support under a court order, up to a maximum of $250 per month but only to 371.21the extent that the amount garnished is not deducted as a monthly allowance for children 371.22under section 
         256B.0575, paragraph (a), clause (5).371.23(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause 371.24(1), the personal needs allowance shall be increased to include income garnished for 371.25spousal maintenance under a judgment and decree for dissolution of marriage, and any 371.26administrative fees garnished for collection efforts.371.27    Sec. 57. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1, 371.28is amended to read:371.29    Subdivision 1. Development and implementation of quality profiles. (a) The 371.30commissioner of human services, in cooperation with the commissioner of health, shall 371.31develop and implement quality profiles for nursing facilities and, beginning not later than 371.32July 1, 2014, for home and community-based services providers, except when the quality 371.33profile system would duplicate requirements under section 
         256B.5011, 
         256B.5012, or 371.34256B.5013
         . For purposes of this section, home and community-based services providers 372.1are defined as providers of home and community-based services under sections 
         256B.0625, 372.2subdivisions 6a, 7, and 19a; 256B.0913
         ,;256B.0915,;256B.092, and;256B.49,; and 372.3256B.85, and intermediate care facilities for persons with developmental disabilities 372.4providers under section 
         256B.5013. To the extent possible, quality profiles must be 372.5developed for providers of services to older adults and people with disabilities, regardless 372.6of payor source, for the purposes of providing information to consumers. The quality 372.7profiles must be developed using existing data sets maintained by the commissioners of 372.8health and human services to the extent possible. The profiles must incorporate or be 372.9coordinated with information on quality maintained by area agencies on aging, long-term 372.10care trade associations, the ombudsman offices, counties, tribes, health plans, and other 372.11entities and the long-term care database maintained under section 
         256.975, subdivision 7. 372.12The profiles must be designed to provide information on quality to:372.13(1) consumers and their families to facilitate informed choices of service providers;372.14(2) providers to enable them to measure the results of their quality improvement 372.15efforts and compare quality achievements with other service providers; and372.16(3) public and private purchasers of long-term care services to enable them to 372.17purchase high-quality care.372.18(b) The profiles must be developed in consultation with the long-term care task 372.19force, area agencies on aging, and representatives of consumers, providers, and labor 372.20unions. Within the limits of available appropriations, the commissioners may employ 372.21consultants to assist with this project.372.22EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.372.23    Sec. 58. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7, 372.24is amended to read:372.25    Subd. 7. Calculation of home and community-based services quality add-on. 372.26Effective On July 1, 2015, the commissioner shall determine the quality add-on rate 372.27change and adjust payment rates for participating all home and community-based services 372.28providers for services rendered on or after that date. The adjustment to a provider payment 372.29rate determined under this subdivision shall become part of the ongoing rate paid to that 372.30provider. The payment rate for the quality add-on shall be a variable amount based on 372.31each provider's quality score as determined in subdivisions 1 and 2a. All home and 372.32community-based services providers shall receive a minimum rate increase under this 372.33subdivision. In addition to a minimum rate increase, a home and community-based 372.34services provider shall receive a quality add-on payment. The commissioner shall limit 372.35the types of home and community-based services providers that may receive the quality 373.1add-on and based on availability of quality measures and outcome data. The commissioner 373.2shall limit the amount of the minimum rate increase and quality add-on payments to 373.3operate the quality add-on within funds appropriated for this purpose and based on the 373.4availability of the quality measures the equivalent of a one percent rate increase for all 373.5home and community-based services providers.373.6    Sec. 59. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53, 373.7is amended to read:373.8    Subd. 53. Calculation of payment rate for external fixed costs. The commissioner 373.9shall calculate a payment rate for external fixed costs.373.10    (a) For a facility licensed as a nursing home, the portion related to section 
         256.9657 373.11shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care 373.12home, the portion related to section 
         256.9657 shall be equal to $8.86 multiplied by the 373.13result of its number of nursing home beds divided by its total number of licensed beds.373.14    (b) The portion related to the licensure fee under section 
         144.122, paragraph (d), 373.15shall be the amount of the fee divided by actual resident days.373.16    (c) The portion related to scholarships shall be determined under section 
         256B.431, 373.17subdivision 36.373.18    (d) Until September 30, 2013, the portion related to long-term care consultation shall 373.19be determined according to section 
         256B.0911, subdivision 6.373.20    (e) The portion related to development and education of resident and family advisory 373.21councils under section 
         144A.33 shall be $5 divided by 365.373.22    (f) The portion related to planned closure rate adjustments shall be as determined 373.23under section 
         256B.437, subdivision 6, and Minnesota Statutes 2010, section 
         256B.436. 373.24Planned closure rate adjustments that take effect before October 1, 2014, shall no longer 373.25be included in the payment rate for external fixed costs beginning October 1, 2016. 373.26Planned closure rate adjustments that take effect on or after October 1, 2014, shall no 373.27longer be included in the payment rate for external fixed costs beginning on October 1 of 373.28the first year not less than two years after their effective date.373.29    (g) The portions related to property insurance, real estate taxes, special assessments, 373.30and payments made in lieu of real estate taxes directly identified or allocated to the nursing 373.31facility shall be the actual amounts divided by actual resident days.373.32    (h) The portion related to the Public Employees Retirement Association shall be 373.33actual costs divided by resident days.373.34    (i) The single bed room incentives shall be as determined under section 
         256B.431, 373.35subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall 374.1no longer be included in the payment rate for external fixed costs beginning October 1, 374.22016. Single bed room incentives that take effect on or after October 1, 2014, shall no 374.3longer be included in the payment rate for external fixed costs beginning on October 1 of 374.4the first year not less than two years after their effective date.374.5    (j)  The portion related to the rate adjustment as provided in section 77, subdivision 3.374.6    (k) The payment rate for external fixed costs shall be the sum of the amounts in 374.7paragraphs (a) to (i) (j).374.8    Sec. 60. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 63, 374.9is amended to read:374.10    Subd. 63. Critical access nursing facilities. (a) The commissioner, in consultation 374.11with the commissioner of health, may designate certain nursing facilities as critical access 374.12nursing facilities. The designation shall be granted on a competitive basis, within the 374.13limits of funds appropriated for this purpose.374.14(b) The commissioner shall request proposals from nursing facilities every 374.15two years. Proposals must be submitted in the form and according to the timelines 374.16established by the commissioner. In selecting applicants to designate, the commissioner, 374.17in consultation with the commissioner of health, and with input from stakeholders, shall 374.18develop criteria designed to preserve access to nursing facility services in isolated areas, 374.19rebalance long-term care, and improve quality. Beginning in fiscal year 2015, to the 374.20extent practicable, the commissioner shall ensure an even distribution of designations 374.21across the state.374.22(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing 374.23facilities designated as critical access nursing facilities:374.24(1) partial rebasing, with the commissioner allowing a designated facility operating 374.25payment rates being the sum of  up to 60 percent of the operating payment rate determined 374.26in accordance with subdivision 54 and at least 40 percent, with the sum of the two portions 374.27being equal to 100 percent, of the operating payment rate that would have been allowed 374.28had the facility not been designated. The commissioner may adjust these percentages by 374.29up to 20 percent and may approve a request for less than the amount allowed;374.30(2) enhanced payments for leave days. Notwithstanding section 
         256B.431, 374.31subdivision 2r, upon designation as a critical access nursing facility, the commissioner 374.32shall limit payment for leave days to 60 percent of that nursing facility's total payment rate 374.33for the involved resident, and shall allow this payment only when the occupancy of the 374.34nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;375.1(3) two designated critical access nursing facilities, with up to 100 beds in active 375.2service, may jointly apply to the commissioner of health for a waiver of Minnesota 375.3Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The 375.4commissioner of health will consider each waiver request independently based on the 375.5criteria under Minnesota Rules, part 4658.0040;375.6(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e), 375.7shall be 40 percent of the amount that would otherwise apply; and375.8(5) notwithstanding subdivision 58, beginning October 1, 2014, the quality-based 375.9rate limits under subdivision 50 shall apply to designated critical access nursing facilities.375.10(d) Designation of a critical access nursing facility shall be for a period of two 375.11years, after which the benefits allowed under paragraph (c) shall be removed. Designated 375.12facilities may apply for continued designation.375.13    Sec. 61. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1, 375.14is amended to read:375.15    Subdivision 1. Provider qualifications. (a) For the home and community-based 375.16waivers providing services to seniors and individuals with disabilities under sections 375.17256B.0913
         , 
         256B.0915, 
         256B.092, and 
         256B.49, the commissioner shall establish:375.18(1) agreements with enrolled waiver service providers to ensure providers meet 375.19Minnesota health care program requirements;375.20(2) regular reviews of provider qualifications, and including requests of proof of 375.21documentation; and375.22(3) processes to gather the necessary information to determine provider qualifications.375.23    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section 375.24245C.02, subdivision 11
         , for services specified in the federally approved waiver plans 375.25must meet the requirements of chapter 245C prior to providing waiver services and as 375.26part of ongoing enrollment. Upon federal approval, this requirement must also apply to 375.27consumer-directed community supports.375.28    (c) Beginning January 1, 2014, service owners and managerial officials overseeing 375.29the management or policies of services that provide direct contact as specified in the 375.30federally approved waiver plans must meet the requirements of chapter 245C prior to 375.31reenrollment or revalidation or, for new providers, prior to initial enrollment if they have 375.32not already done so as a part of service licensure requirements.375.33    Sec. 62. Minnesota Statutes 2013 Supplement, section 256B.4913, subdivision 4a, 375.34is amended to read:376.1    Subd. 4a. Rate stabilization adjustment. (a) For purposes of this subdivision, 376.2"implementation period" shall mean means the period beginning January 1, 2014, and 376.3ending on the last day of the month in which the rate management system is populated 376.4with the data necessary to calculate rates for substantially all individuals receiving home 376.5and community-based waiver services under sections 256B.092 and 256B.49. "Banding 376.6period" means the time period beginning on January 1, 2014, and ending upon the 376.7expiration of the 12-month period defined in paragraph (c), clause (5).376.8(b) For purposes of this subdivision, the banding value historical rate for all service 376.9recipients shall mean means the individual reimbursement rate for a recipient in effect on 376.10December 1, 2013, except that:376.11(1)(i) for day training and habilitation pilot program service recipients, the banding 376.12value shall be the authorized rate for the provider in the county of service effective 376.13December 1, 2013, if thefor a day service recipient:who was not authorized to receive 376.14these waiver services prior to January 1, 2014; added a new service or services on or after 376.15January 1, 2014; or changed providers on or after January 1, 2014, the historical rate 376.16must be the authorized rate for the provider in the county of service, effective December 376.171, 2013; and or376.18(ii) for all other unit or day service recipients, the banding value shall be the 376.19weighted average authorized rate for each provider number in the county of service 376.20effective December 1, 2013, if the(2) for a unit-based service with programming or 376.21a unit-based service without programming recipient:who was not authorized to receive 376.22these waiver services prior to January 1, 2014; added a new service or services on or after 376.23January 1, 2014; or changed providers on or after January 1, 2014, the historical rate 376.24must be the weighted average authorized rate for each provider number in the county of 376.25service, effective December 1, 2013; and or376.26(2) (3) for residential service recipients who change providers on or after January 376.271, 2014, the banding value shall historical rate must be set by each lead agency within 376.28their county aggregate budget using their respective methodology for residential services 376.29effective December 1, 2013, for determining the provider rate for a similarly situated 376.30recipient being served by that provider.376.31(c) The commissioner shall adjust individual reimbursement rates determined under 376.32this section so that the unit rate is no higher or lower than:376.33(1) 0.5 percent from the banding value historical rate for the implementation period;376.34(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period 376.35immediately following the time period of clause (1);377.1(3) 1.0 percent from the rate in effect in clause (2), for the 12-month period 377.2immediately following the time period of clause (2);377.3(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period 377.4immediately following the time period of clause (3); and377.5(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period 377.6immediately following the time period of clause (4).377.7(d) The commissioner shall review all changes to rates that were in effect on 377.8December 1, 2013, to verify that  the rates in effect produce the equivalent level of spending 377.9and service unit utilization on an annual basis as those in effect on October 31, 2013.377.10(e) By December 31, 2014, the commissioner shall complete the review in paragraph 377.11(d), adjust rates to provide equivalent annual spending and make appropriate adjustments. 377.12(f) During the banding period, the Medicaid Management Information System 377.13(MMIS) service agreement rate must be adjusted to account for change in an individual's 377.14need. The commissioner shall adjust the Medicaid Management Information System 377.15(MMIS) service agreement rate by:377.16(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for 377.17the individual with variables reflecting the level of service in effect on December 1, 2013;377.18(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 377.199, for the individual with variables reflecting the updated level of service at the time 377.20of application; and377.21(3) adding to or subtracting from the Medicaid Management Information System 377.22(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).377.23(g) This subdivision shall must not apply to rates for recipients served by providers 377.24new to a given county after January 1, 2014. Providers of personal supports services who 377.25also acted as fiscal support entities must be treated as new providers as of January 1, 2014.377.26    Sec. 63. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 2, 377.27is amended to read:377.28    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the 377.29meanings given them, unless the context clearly indicates otherwise.377.30(b) "Commissioner" means the commissioner of human services.377.31(c) "Component value" means underlying factors that are part of the cost of providing 377.32services that are built into the waiver rates methodology to calculate service rates.377.33(d) "Customized living tool" means a methodology for setting service rates that 377.34delineates and documents the amount of each component service included in a recipient's 377.35customized living service plan.378.1(e) "Disability waiver rates system" means a statewide system that establishes rates 378.2that are based on uniform processes and captures the individualized nature of waiver 378.3services and recipient needs.378.4(f) "Individual staffing" means the time spent as a one-to-one interaction specific to 378.5an individual recipient by staff brought in solely to provide direct support and assistance 378.6with activities of daily living, instrumental activities of daily living, and training to 378.7participants, and is based on the requirements in each individual's coordinated service and 378.8support plan under section 245D.02, subdivision 4b; any coordinated service and support 378.9plan addendum under section 245D.02, subdivision 4c; an assessment tool; and provider 378.10observation of an individual's needs.378.11(g) "Lead agency" means a county, partnership of counties, or tribal agency charged 378.12with administering waivered services under sections 
         256B.092 and 
         256B.49.378.13(g) (h) "Median" means the amount that divides distribution into two equal groups, 378.14one-half above the median and one-half below the median.378.15(h) (i) "Payment or rate" means reimbursement to an eligible provider for services 378.16provided to a qualified individual based on an approved service authorization.378.17(i) (j) "Rates management system" means a Web-based software application that 378.18uses a framework and component values, as determined by the commissioner, to establish 378.19service rates.378.20(j) (k) "Recipient" means a person receiving home and community-based services 378.21funded under any of the disability waivers.378.22(l) "Shared staffing" means time spent by employees, not defined under paragraph 378.23(f), providing or available to provide more than one individual with direct support and 378.24assistance with activities of daily living as defined under section 256B.0659, subdivision 1, 378.25paragraph (b); instrumental activities of daily living as defined under section 256B.0659, 378.26subdivision 1, paragraph (i); ancillary activities needed to support individual services; and 378.27training to participants, and is based on the requirements in each individual's coordinated 378.28service and support plan under section 245D.02, subdivision 4b; any coordinated service 378.29and support plan addendum under section 245D.02, subdivision 4c; an assessment tool; 378.30and provider observation of an individual's service need. Total shared staffing hours are 378.31divided by the average number of individuals who receive the shared service provisions. 378.32(m) "Staffing ratio" means the number of recipients a service provider employee 378.33supports during a unit of service based on a uniform assessment tool, provider observation, 378.34case history, and the recipient's services of choice, and not based on the staffing ratios 378.35under section 245D.31.378.36    (n) "Unit of service" means the following:379.1    (1) for residential support services under subdivision 6, a unit of service is a day. 379.2Any portion of any calendar day, within allowable Medicaid rules, where an individual 379.3spends time in a residential setting is billable as a day;379.4    (2) for day services under subdivision 7:379.5    (i) for day training and habilitation services, a unit of service is either:379.6    (A) a day unit of service is defined as six or more hours of time spent providing 379.7direct services and transportation; or379.8    (B) a partial day unit of service is defined as fewer than six hours of time spent 379.9providing direct services and transportation; and379.10    (C) for new day service recipients after January 1, 2014, 15 minute units of 379.11service must be used for fewer than six hours of time spent providing direct services 379.12and transportation;379.13    (ii) for adult day and structured day services, a unit of service is a day or 15 minutes. 379.14A day unit of service is six or more hours of time spent providing direct services;379.15    (iii) for prevocational services, a unit of service is a day or an hour. A day unit of 379.16service is six or more hours of time spent providing direct service;379.17    (3) for unit-based services with programming under subdivision 8:379.18    (i) for supported living services, a unit of service is a day or 15 minutes. When a 379.19day rate is authorized, any portion of a calendar day where an individual receives services 379.20is billable as a day; and379.21    (ii) for all other services, a unit of service is 15 minutes; and379.22    (4) for unit-based services without programming under subdivision 9:379.23    (i) for respite services, a unit of service is a day or 15 minutes. When a day rate is 379.24authorized, any portion of a calendar day when an individual receives services is billable 379.25as a day; and379.26    (ii) for all other services, a unit of service is 15 minutes.379.27    Sec. 64. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 4, 379.28is amended to read:379.29    Subd. 4. Data collection for rate determination. (a) Rates for applicable home 379.30and community-based waivered services, including rate exceptions under subdivision 12, 379.31are set by the rates management system.379.32(b) Data for services under section 
         256B.4913, subdivision 4a, shall be collected in a 379.33manner prescribed by the commissioner.379.34(c) Data and information in the rates management system may be used to calculate 379.35an individual's rate.380.1(d) Service providers, with information from the community support plan and 380.2oversight by lead agencies, shall provide values and information needed to calculate an 380.3individual's rate into the rates management system. TheseThe determination of service 380.4levels must be part of a discussion with members of the support team as defined in section 380.5245D.02, subdivision 34.This discussion must occur prior to the final establishment of 380.6each individual's rate. The values and information include:380.7(1) shared staffing hours;380.8(2) individual staffing hours;380.9(3) direct RN registered nurse hours;380.10(4) direct LPN licensed practical nurse hours;380.11(5) staffing ratios;380.12(6) information to document variable levels of service qualification for variable 380.13levels of reimbursement in each framework;380.14(7) shared or individualized arrangements for unit-based services, including the 380.15staffing ratio;380.16(8) number of trips and miles for transportation services; and380.17(9) service hours provided through monitoring technology.380.18(e) Updates to individual data shall must include:380.19(1) data for each individual that is updated annually when renewing service plans; and380.20(2) requests by individuals or lead agencies to update a rate whenever there is a 380.21change in an individual's service needs, with accompanying documentation.380.22(f) Lead agencies shall review and approve all services reflecting each individual's 380.23needs, and the values to calculate the final payment rate for services with variables under 380.24subdivisions 6, 7, 8, and 9 for each individual. Lead agencies must notify the individual 380.25and the service provider of the final agreed-upon values and rate, and provide information 380.26that is identical to what was entered into the rates management system. If a value used 380.27was mistakenly or erroneously entered and used to calculate a rate, a provider may 380.28petition lead agencies to correct it. Lead agencies must respond to these requests. When 380.29responding to the request, the lead agency must consider:380.30(1) meeting the health and welfare needs of the individual or individuals receiving 380.31services by service site, identified in their coordinated service and support plan under 380.32section 245D.02, subdivision 4b, and any addendum under section 245D.02, subdivision 380.334c;380.34(2) meeting the requirements for staffing under subdivision 2, paragraphs (f), (i), 380.35and (m); and meeting or exceeding the licensing standards for staffing required under 380.36section 245D.09, subdivision 1; and381.1(3) meeting the staffing ratio requirements under subdivision 2, paragraph (n), and 381.2meeting or exceeding the licensing standards for staffing required under section 245D.31.381.3    Sec. 65. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 5, 381.4is amended to read:381.5    Subd. 5. Base wage index and standard component values. (a) The base wage 381.6index is established to determine staffing costs associated with providing services to 381.7individuals receiving home and community-based services. For purposes of developing 381.8and calculating the proposed base wage, Minnesota-specific wages taken from job 381.9descriptions and standard occupational classification (SOC) codes from the Bureau of 381.10Labor Statistics as defined in the most recent edition of the Occupational Handbook shall381.11 must be used. The base wage index shall must be calculated as follows:381.12(1) for residential direct care staff, the sum of:381.13(i) 15 percent of the subtotal of 50 percent of the median wage for personal and 381.14home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide 381.15(SOC code 31-1012); and 20 percent of the median wage for social and human services 381.16aide (SOC code 21-1093); and381.17(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide 381.18(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 381.19(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012); 381.2020 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20 381.21percent of the median wage for social and human services aide (SOC code 21-1093);381.22(2) for day services, 20 percent of the median wage for nursing aide (SOC code 381.2331-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053); 381.24and 60 percent of the median wage for social and human services aide (SOC code 21-1093);381.25(3) for residential asleep-overnight staff, the wage will be $7.66 per hour, except in 381.26a family foster care setting, the wage is $2.80 per hour;381.27(4) for behavior program analyst staff, 100 percent of the median wage for mental 381.28health counselors (SOC code 21-1014);381.29(5) for behavior program professional staff, 100 percent of the median wage for 381.30clinical counseling and school psychologist (SOC code 19-3031);381.31(6) for behavior program specialist staff, 100 percent of the median wage for 381.32psychiatric technicians (SOC code 29-2053);381.33(7) for supportive living services staff, 20 percent of the median wage for nursing 381.34aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC 382.1code 29-2053); and 60 percent of the median wage for social and human services aide 382.2(SOC code 21-1093);382.3(8) for housing access coordination staff, 50 percent of the median wage for 382.4community and social services specialist (SOC code 21-1099); and 50 percent of the 382.5median wage for social and human services aide (SOC code 21-1093);382.6(9) for in-home family support staff, 20 percent of the median wage for nursing 382.7aide (SOC code 31-1012); 30 percent of the median wage for community social service 382.8specialist (SOC code 21-1099); 40 percent of the median wage for social and human 382.9services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric 382.10technician (SOC code 29-2053);382.11(10) for independent living skills staff, 40 percent of the median wage for community 382.12social service specialist (SOC code 21-1099); 50 percent of the median wage for social 382.13and human services aide (SOC code 21-1093); and ten percent of the median wage for 382.14psychiatric technician (SOC code 29-2053);382.15(11) for supported employment staff, 20 percent of the median wage for nursing aide 382.16(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC 382.17code 29-2053); and 60 percent of the median wage for social and human services aide 382.18(SOC code 21-1093);382.19(12) for adult companion staff, 50 percent of the median wage for personal and home 382.20care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides, 382.21orderlies, and attendants (SOC code 31-1012);382.22(13) for night supervision staff, 20 percent of the median wage for home health aide 382.23(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 382.24(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012); 382.2520 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20 382.26percent of the median wage for social and human services aide (SOC code 21-1093);382.27(14) for respite staff, 50 percent of the median wage for personal and home care aide 382.28(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and 382.29attendants (SOC code 31-1012);382.30(15) for personal support staff, 50 percent of the median wage for personal and home 382.31care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides, 382.32orderlies, and attendants (SOC code 31-1012);382.33(16) for supervisory staff, the basic wage is $17.43 per hour with exception of 382.34the supervisor of behavior analyst and behavior specialists, which shall must be $30.75 382.35per hour;382.36(17) for RN registered nurse, the basic wage is $30.82 per hour; and383.1(18) for LPN licensed practical nurse, the basic wage is $18.64 per hour.383.2(b) Component values for residential support services are:383.3(1) supervisory span of control ratio: 11 percent;383.4(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.5(3) employee-related cost ratio: 23.6 percent;383.6(4) general administrative support ratio: 13.25 percent;383.7(5) program-related expense ratio: 1.3 percent; and383.8(6) absence and utilization factor ratio: 3.9 percent.383.9(c) Component values for family foster care are:383.10(1) supervisory span of control ratio: 11 percent;383.11(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.12(3) employee-related cost ratio: 23.6 percent;383.13(4) general administrative support ratio: 3.3 percent;383.14(5) program-related expense ratio: 1.3 percent; and383.15(6) absence factor: 1.7 percent.383.16(d) Component values for day services for all services are:383.17(1) supervisory span of control ratio: 11 percent;383.18(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.19(3) employee-related cost ratio: 23.6 percent;383.20(4) program plan support ratio: 5.6 percent;383.21(5) client programming and support ratio: ten percent;383.22(6) general administrative support ratio: 13.25 percent;383.23(7) program-related expense ratio: 1.8 percent; and383.24(8) absence and utilization factor ratio: 3.9 percent.383.25(e) Component values for unit-based services with programming are:383.26(1) supervisory span of control ratio: 11 percent;383.27(2) employee vacation, sick, and training allowance ratio: 8.71 percent;383.28(3) employee-related cost ratio: 23.6 percent;383.29(4) program plan supports ratio: 3.1 percent;383.30(5) client programming and supports ratio: 8.6 percent;383.31(6) general administrative support ratio: 13.25 percent;383.32(7) program-related expense ratio: 6.1 percent; and383.33(8) absence and utilization factor ratio: 3.9 percent.383.34(f) Component values for unit-based services without programming except respite 383.35are:383.36(1) supervisory span of control ratio: 11 percent;384.1(2) employee vacation, sick, and training allowance ratio: 8.71 percent;384.2(3) employee-related cost ratio: 23.6 percent;384.3(4) program plan support ratio: 3.1 percent;384.4(5) client programming and support ratio: 8.6 percent;384.5(6) general administrative support ratio: 13.25 percent;384.6(7) program-related expense ratio: 6.1 percent; and384.7(8) absence and utilization factor ratio: 3.9 percent.384.8(g) Component values for unit-based services without programming for respite are:384.9(1) supervisory span of control ratio: 11 percent;384.10(2) employee vacation, sick, and training allowance ratio: 8.71 percent;384.11(3) employee-related cost ratio: 23.6 percent;384.12(4) general administrative support ratio: 13.25 percent;384.13(5) program-related expense ratio: 6.1 percent; and384.14(6) absence and utilization factor ratio: 3.9 percent.384.15(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph 384.16(b) (a) based on the wage data by standard occupational code (SOC) from the Bureau of 384.17Labor Statistics available on December 31, 2016. The commissioner shall publish these 384.18updated values and load them into the rate management system. This adjustment occurs 384.19every five years. For adjustments in 2021 and beyond, the commissioner shall use the data 384.20available on December 31 of the calendar year five years prior.384.21(i) On July 1, 2017, the commissioner shall update the framework components in 384.22paragraph (c) paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision 384.237, clauses (16) and (17), for changes in the Consumer Price Index. The commissioner 384.24will adjust these values higher or lower by the percentage change in the Consumer Price 384.25Index-All Items, United States city average (CPI-U) from January 1, 2014, to January 1, 384.262017. The commissioner shall publish these updated values and load them into the rate 384.27management system. This adjustment occurs every five years. For adjustments in 2021 384.28and beyond, the commissioner shall use the data available on January 1 of the calendar 384.29year four years prior and January 1 of the current calendar year.384.30    Sec. 66. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 6, 384.31is amended to read:384.32    Subd. 6. Payments for residential support services. (a) Payments for residential 384.33support services, as defined in sections 
         256B.092, subdivision 11, and 
         256B.49, 384.34subdivision 22, must be calculated as follows:385.1(1) determine the number of shared staffing and individual direct staff hours to meet 385.2a recipient's needs provided on-site or through monitoring technology;385.3(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics 385.4Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 385.55. This is defined as the direct-care rate;385.6(3) for a recipient requiring customization for deaf and hard-of-hearing language 385.7accessibility under subdivision 12, add the customization rate provided in subdivision 12 385.8to the result of clause (2). This is defined as the customized direct-care rate;385.9(4) multiply the number of shared and individual direct staff hours provided on-site 385.10or through monitoring technology and direct nursing hours by the appropriate staff wages 385.11in subdivision 5, paragraph (a), or the customized direct-care rate;385.12(5) multiply the number of shared and individual direct staff hours provided 385.13on-site or through monitoring technology and direct nursing hours by the product of 385.14the supervision span of control ratio in subdivision 5, paragraph (b), clause (1), and the 385.15appropriate supervision wage in subdivision 5, paragraph (a), clause (16);385.16(6) combine the results of clauses (4) and (5), excluding any shared and individual 385.17direct staff hours provided through monitoring technology, and multiply the result by one 385.18plus the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph 385.19(b), clause (2). This is defined as the direct staffing cost;385.20(7) for employee-related expenses, multiply the direct staffing cost, excluding any 385.21shared and individual direct staff hours provided through monitoring technology, by one 385.22plus the employee-related cost ratio in subdivision 5, paragraph (b), clause (3);385.23(8) for client programming and supports, the commissioner shall add $2,179; and385.24(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000 385.25if customized for adapted transport, per year based on the resident with the highest 385.26assessed need.385.27(b) The total rate shall must be calculated using the following steps:385.28(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any 385.29shared and individual direct staff hours provided through monitoring technology that 385.30was excluded in clause (7);385.31(2) sum the standard general and administrative rate, the program-related expense 385.32ratio, and the absence and utilization ratio;385.33(3) divide the result of clause (1) by one minus the result of clause (2). This is 385.34the total payment amount; and385.35(4) adjust the result of clause (3) by a factor to be determined by the commissioner 385.36to adjust for regional differences in the cost of providing services.386.1(c) The payment methodology for customized living, 24-hour customized living, 386.2and residential care services shall must be the customized living tool. Revisions to the 386.3customized living tool shall must be made to reflect the services and activities unique to 386.4disability-related recipient needs.386.5(d) The commissioner shall establish a Monitoring Technology Review Panel to 386.6annually review and approve the plans, safeguards, and rates that include residential 386.7direct care provided remotely through monitoring technology. Lead agencies shall submit 386.8individual service plans that include supervision using monitoring technology to the 386.9Monitoring Technology Review Panel for approval. Individual service plans that include 386.10supervision using monitoring technology as of December 31, 2013, shall be submitted to 386.11the Monitoring Technology Review Panel, but the plans are not subject to approval.386.12(e) For individuals enrolled prior to January 1, 2014, the days of service authorized 386.13must meet or exceed the days of service used to convert service agreements in effect on 386.14December 1, 2013, and must not result in a reduction in spending or service utilization due 386.15to conversion during the implementation period under section 256B.4913, subdivision 4a. 386.16If during the implementation period, an individual's historical rate, including adjustments 386.17required under section 256B.4913, subdivision 4a, paragraph (c), is equal to or greater 386.18than the rate determined in this subdivision, the number of days authorized for the 386.19individual is 365.386.20(f) The number of days authorized for all individuals enrolling after January 1, 2014, 386.21in residential services must include every day that services start and end.386.22    Sec. 67. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 7, 386.23is amended to read:386.24    Subd. 7. Payments for day programs. Payments for services with day programs 386.25including adult day care, day treatment and habilitation, prevocational services, and 386.26structured day services must be calculated as follows:386.27(1) determine the number of units of service and staffing ratio to meet a recipient's 386.28needs:386.29(i) the staffing ratios for the units of service provided to a recipient in a typical week 386.30must be averaged to determine an individual's staffing ratio; and386.31(ii) the commissioner, in consultation with service providers, shall develop a uniform 386.32staffing ratio worksheet to be used to determine staffing ratios under this subdivision;386.33(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 386.34Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 5;387.1(3) for a recipient requiring customization for deaf and hard-of-hearing language 387.2accessibility under subdivision 12, add the customization rate provided in subdivision 12 387.3to the result of clause (2). This is defined as the customized direct-care rate;387.4(4) multiply the number of day program direct staff hours and direct nursing hours 387.5by the appropriate staff wage in subdivision 5, paragraph (a), or the customized direct-care 387.6rate;387.7(5) multiply the number of day direct staff hours by the product of the supervision 387.8span of control ratio in subdivision 5, paragraph (d), clause (1), and the appropriate 387.9supervision wage in subdivision 5, paragraph (a), clause (16);387.10(6) combine the results of clauses (4) and (5), and multiply the result by one plus 387.11the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (d), 387.12clause (2). This is defined as the direct staffing rate;387.13(7) for program plan support, multiply the result of clause (6) by one plus the 387.14program plan support ratio in subdivision 5, paragraph (d), clause (4);387.15(8) for employee-related expenses, multiply the result of clause (7) by one plus the 387.16employee-related cost ratio in subdivision 5, paragraph (d), clause (3);387.17(9) for client programming and supports, multiply the result of clause (8) by one plus 387.18the client programming and support ratio in subdivision 5, paragraph (d), clause (5);387.19(10) for program facility costs, add $19.30 per week with consideration of staffing 387.20ratios to meet individual needs;387.21(11) for adult day bath services, add $7.01 per 15 minute unit;387.22(12) this is the subtotal rate;387.23(13) sum the standard general and administrative rate, the program-related expense 387.24ratio, and the absence and utilization factor ratio;387.25(14) divide the result of clause (12) by one minus the result of clause (13). This is 387.26the total payment amount;387.27(15) adjust the result of clause (14) by a factor to be determined by the commissioner 387.28to adjust for regional differences in the cost of providing services;387.29(16) for transportation provided as part of day training and habilitation for an 387.30individual who does not require a lift, add:387.31(i) $10.50 for a trip between zero and ten miles for a nonshared ride in a vehicle 387.32without a lift, $8.83 for a shared ride in a vehicle without a lift, and $9.25 for a shared 387.33ride in a vehicle with a lift;387.34(ii) $15.75 for a trip between 11 and 20 miles for a nonshared ride in a vehicle 387.35without a lift, $10.58 for a shared ride in a vehicle without a lift, and $11.88 for a shared 387.36ride in a vehicle with a lift;388.1(iii) $25.75 for a trip between 21 and 50 miles for a nonshared ride in a vehicle 388.2without a lift, $13.92 for a shared ride in a vehicle without a lift, and $16.88 for a shared 388.3ride in a vehicle with a lift; or388.4(iv) $33.50 for a trip of 51 miles or more for a nonshared ride in a vehicle without a 388.5lift, $16.50 for a shared ride in a vehicle without a lift, and $20.75 for a shared ride in a 388.6vehicle with a lift;388.7(17) for transportation provided as part of day training and habilitation for an 388.8individual who does require a lift, add:388.9(i) $19.05 for a trip between zero and ten miles for a nonshared ride in a vehicle with 388.10a lift, and $15.05 for a shared ride in a vehicle with a lift;388.11(ii) $32.16 for a trip between 11 and 20 miles for a nonshared ride in a vehicle with a 388.12lift, and $28.16 for a shared ride in a vehicle with a lift;388.13(iii) $58.76 for a trip between 21 and 50 miles for a nonshared ride in a vehicle with 388.14a lift, and $58.76 for a shared ride in a vehicle with a lift; or388.15(iv) $80.93 for a trip of 51 miles or more for a nonshared ride in a vehicle with a 388.16lift, and $80.93 for a shared ride in a vehicle with a lift.388.17    Sec. 68. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 9, 388.18is amended to read:388.19    Subd. 9. Payments for unit-based services without programming. Payments 388.20for unit-based without program services, including night supervision, personal support, 388.21respite, and companion care provided to an individual outside of any day or residential 388.22service plan must be calculated as follows unless the services are authorized separately 388.23under subdivision 6 or 7:388.24(1) for all services except respite, determine the number of units of service to meet 388.25a recipient's needs;388.26(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 388.27Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;388.28(3) for a recipient requiring customization for deaf and hard-of-hearing language 388.29accessibility under subdivision 12, add the customization rate provided in subdivision 12 388.30to the result of clause (2). This is defined as the customized direct care rate;388.31(4) multiply the number of direct staff hours by the appropriate staff wage in 388.32subdivision 5 or the customized direct care rate;388.33(5) multiply the number of direct staff hours by the product of the supervision span 388.34of control ratio in subdivision 5, paragraph (f), clause (1), and the appropriate supervision 388.35wage in subdivision 5, paragraph (a), clause (16);389.1(6) combine the results of clauses (4) and (5), and multiply the result by one plus 389.2the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (f), 389.3clause (2). This is defined as the direct staffing rate;389.4(7) for program plan support, multiply the result of clause (6) by one plus the 389.5program plan support ratio in subdivision 5, paragraph (f), clause (4);389.6(8) for employee-related expenses, multiply the result of clause (7) by one plus the 389.7employee-related cost ratio in subdivision 5, paragraph (f), clause (3);389.8(9) for client programming and supports, multiply the result of clause (8) by one plus 389.9the client programming and support ratio in subdivision 5, paragraph (f), clause (5);389.10(10) this is the subtotal rate;389.11(11) sum the standard general and administrative rate, the program-related expense 389.12ratio, and the absence and utilization factor ratio;389.13(12) divide the result of clause (10) by one minus the result of clause (11). This is 389.14the total payment amount;389.15(13) for respite services, determine the number of daily day  units of service to meet 389.16an individual's needs;389.17(14) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 389.18Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;389.19(15) for a recipient requiring deaf and hard-of-hearing customization under 389.20subdivision 12, add the customization rate provided in subdivision 12 to the result of 389.21clause (14). This is defined as the customized direct care rate;389.22(16) multiply the number of direct staff hours by the appropriate staff wage in 389.23subdivision 5, paragraph (a);389.24(17) multiply the number of direct staff hours by the product of the supervisory span 389.25of control ratio in subdivision 5, paragraph (g), clause (1), and the appropriate supervision 389.26wage in subdivision 5, paragraph (a), clause (16);389.27(18) combine the results of clauses (16) and (17), and multiply the result by one plus 389.28the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (g), 389.29clause (2). This is defined as the direct staffing rate;389.30(19) for employee-related expenses, multiply the result of clause (18) by one plus 389.31the employee-related cost ratio in subdivision 5, paragraph (g), clause (3);389.32(20) this is the subtotal rate;389.33(21) sum the standard general and administrative rate, the program-related expense 389.34ratio, and the absence and utilization factor ratio;389.35(22) divide the result of clause (20) by one minus the result of clause (21). This is 389.36the total payment amount; and390.1(23) adjust the result of clauses (12) and (22) by a factor to be determined by the 390.2commissioner to adjust for regional differences in the cost of providing services.390.3    Sec. 69. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 10, 390.4is amended to read:390.5    Subd. 10. Updating payment values and additional information. (a) From 390.6January 1, 2014, through December 31, 2017, the commissioner shall develop and 390.7implement uniform procedures to refine terms and adjust values used to calculate payment 390.8rates in this section.390.9(b) No later than July 1, 2014, the commissioner shall, within available resources, 390.10begin to conduct research and gather data and information from existing state systems or 390.11other outside sources on the following items:390.12(1) differences in the underlying cost to provide services and care across the state; and390.13(2) mileage and utilization, vehicle type, lift requirements, incidents of individual 390.14and shared rides, and units of transportation for all day and unit-based services, which 390.15must be collected from providers using the rate management worksheet and entered into 390.16the rates management system; and390.17(3) the distinct underlying costs for services provided by a license holder certified 390.18under section 245D.33.390.19(c) Using a statistically valid set of rates management system data, the commissioner, 390.20in consultation with stakeholders, shall analyze for each service the average difference 390.21in the rate on December 31, 2013, and the framework rate at the individual, provider, 390.22lead agency, and state levels. The commissioner shall issue semiannual reports to the 390.23stakeholders on the difference in rates by service and by county during the banding period 390.24under section 256B.4913, subdivision 4a. The commissioner shall issue the first report 390.25by October 1, 2014.390.26(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders, 390.27shall begin the review and evaluate evaluation of the following values already in 390.28subdivisions 6 to 9, or issues that impact all services, including, but not limited to:390.29(1) values for transportation rates for day services;390.30(2) values for transportation rates in residential services;390.31(3) values for services where monitoring technology replaces staff time;390.32(4) values for indirect services;390.33(5) values for nursing;390.34(6) component values for independent living skills;390.35(7) component values for family foster care that reflect licensing requirements;391.1(8) adjustments to other components to replace the budget neutrality factor;391.2(9) remote monitoring technology for nonresidential services;391.3(10) values for basic and intensive services in residential services;391.4(11) values for the facility use rate in day services;391.5(12) values for workers' compensation as part of employee-related expenses;391.6(13) values for unemployment insurance as part of employee-related expenses;391.7(14) a component value to reflect costs for individuals with rates previously adjusted 391.8for the inclusion of group residential housing rate 3 costs, only for any individual enrolled 391.9as of December 31, 2013; and391.10(15) any changes in state or federal law with an impact on the underlying cost of 391.11providing home and community-based services.391.12(e) The commissioner shall report to the chairs and the ranking minority members of 391.13the legislative committees and divisions with jurisdiction over health and human services 391.14policy and finance with the information and data gathered under paragraphs (b) to (d) 391.15on the following dates:391.16(1) January 15, 2015, with preliminary results and data;391.17(2) January 15, 2016, with a status implementation update, and additional data 391.18and summary information;391.19(3) January 15, 2017, with the full report; and391.20(4) January 15, 2019, with another full report, and a full report once every four 391.21years thereafter.391.22(f) Based on the commissioner's evaluation of the information and data collected 391.23in paragraphs (b) to (d), the commissioner may shall make recommendations to 391.24the legislature to address any potential issues by January 15, 2015, to address any 391.25issues identified during the first year of implementation. After January 15, 2015, the 391.26commissioner may make recommendations to the legislature to address potential issues.391.27(g) The commissioner shall implement a regional adjustment factor to all rate 391.28calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to 391.29implementation, the commissioner shall consult with stakeholders on the methodology to 391.30calculate the adjustment.391.31(h) The commissioner shall provide a public notice via LISTSERV in October of 391.32each year beginning October 1, 2014, containing information detailing legislatively 391.33approved changes in:391.34(1) calculation values including derived wage rates and related employee and 391.35administrative factors;391.36(2) service utilization;392.1(3) county and tribal allocation changes; and392.2(4) information on adjustments made to calculation values and the timing of those 392.3adjustments.392.4The information in this notice shall must be effective January 1 of the following year.392.5    Sec. 70. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 15, 392.6is amended to read:392.7    Subd. 15. County or tribal allocations. (a) Upon implementation of the disability 392.8waiver rates management system on January 1, 2014, the commissioner shall establish 392.9a method of tracking and reporting the fiscal impact of the disability waiver rates 392.10management system on individual lead agencies.392.11(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to 392.12lead agencies' home and community-based waivered service budget allocations to adjust 392.13for rate differences and the resulting impact on county allocations upon implementation of 392.14the disability waiver rates system.392.15(c) During the first two years of implementation under section 256B.4913, lead 392.16agencies exceeding their allocations under sections 256B.092 and 256B.49 shall only be 392.17held liable for spending in excess of their allocations after a reallocation of resources by 392.18the commissioner under paragraph (b). The commissioner shall reallocate resources under 392.19sections 256B.092, subdivision 12, and 256B.49, subdivision 11a. The commissioner 392.20shall notify lead agencies of this process by July 1, 2014.392.21    Sec. 71. Minnesota Statutes 2013 Supplement, section 256B.492, is amended to read:392.22256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE 392.23WITH DISABILITIES.392.24(a) Individuals receiving services under a home and community-based waiver under 392.25section 
         256B.092 or 
         256B.49 may receive services in the following settings:392.26(1) an individual's own home or family home;392.27(2) a licensed adult foster care or child foster care setting of up to five people; and392.28(3) community living settings as defined in section 
         256B.49, subdivision 23, where 392.29individuals with disabilities may reside in all of the units in a building of four or fewer units, 392.30and  who receive services under a home and community-based waiver occupy no more 392.31than the greater of four or 25 percent of the units in a multifamily building of more than 392.32four units, unless required by the Housing Opportunities for Persons with AIDS Program.392.33(b) The settings in paragraph (a) must not:393.1(1) be located in a building that is a publicly or privately operated facility that 393.2provides institutional treatment or custodial care;393.3(2) be located in a building on the grounds of or adjacent to a public or private 393.4institution;393.5(3) be a housing complex designed expressly around an individual's diagnosis or 393.6disability, unless required by the Housing Opportunities for Persons with AIDS Program;393.7(4) be segregated based on a disability, either physically or because of setting 393.8characteristics, from the larger community; and393.9(5) have the qualities of an institution which include, but are not limited to: 393.10regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions 393.11agreed to and documented in the person's individual service plan shall not result in a 393.12residence having the qualities of an institution as long as the restrictions for the person are 393.13not imposed upon others in the same residence and are the least restrictive alternative, 393.14imposed for the shortest possible time to meet the person's needs.393.15(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which 393.16individuals receive services under a home and community-based waiver as of July 1, 393.172012, and the setting does not meet the criteria of this section.393.18(d) Notwithstanding paragraph (c), a program in Hennepin County established as 393.19part of a Hennepin County demonstration project is qualified for the exception allowed 393.20under paragraph (c).393.21(e)  Notwithstanding paragraphs (a) and (b), a program in Hennepin County, located 393.22in the city of Golden Valley, within the city of Golden Valley's Highway 55 West 393.23redevelopment area, that is not a provider-owned or controlled home and community-based 393.24setting, and is scheduled to open by July 1, 2016, is exempt from the restrictions in 393.25paragraphs (a) and (b). If the program fails to comply with the Centers for Medicare and 393.26Medicaid Services rules for home and community-based settings, the exemption is void.393.27(f) The commissioner shall submit an amendment to the waiver plan no later than 393.28December 31, 2012.393.29    Sec. 72. Minnesota Statutes 2012, section 256B.5012, is amended by adding a 393.30subdivision to read:393.31    Subd. 16.ICF/DD rate increases effective July 1, 2014. (a) For the rate period 393.32beginning July 1, 2014, the commissioner shall increase operating payments for each 393.33facility reimbursed under this section equal to five percent of the operating payment 393.34rates in effect on June 30, 2014.394.1(b) For each facility, the commissioner shall apply the rate increase based on 394.2occupied beds, using the percentage specified in this subdivision multiplied by the total 394.3payment rate, including the variable rate but excluding the property-related payment rate 394.4in effect on June 30, 2014. The total rate increase shall include the adjustment provided in 394.5section 256B.501, subdivision 12.394.6(c) Facilities that receive a rate increase under this subdivision shall use 80 percent 394.7of the additional revenue to increase compensation-related costs for employees directly 394.8employed by the facility on or after July 1, 2014, except:394.9(1) persons employed in the central office of a corporation or entity that has an 394.10ownership interest in the facility or exercises control over the facility; and394.11(2) persons paid by the facility under a management contract.394.12(d) Compensation-related costs include:394.13(1) wages and salaries;394.14(2) the employer's share of FICA taxes, Medicare taxes, state and federal 394.15unemployment taxes, workers' compensation, and mileage reimbursement;394.16(3) the employer's share of health and dental insurance, life insurance, disability 394.17insurance, long-term care insurance, uniform allowance, pensions, and contributions to 394.18employee retirement accounts; and394.19(4) other benefits provided and workforce needs, including the recruiting and 394.20training of employees as specified in the distribution plan required under paragraph (f).394.21(e) For public employees under a collective bargaining agreement, the increase for 394.22wages and benefits is available and pay rates must be increased only to the extent that the 394.23increases comply with laws governing public employees' collective bargaining. Money 394.24received by a facility under paragraph (c) for pay increases for public employees must be 394.25used only for pay increases implemented between July 1, 2014, and August 1, 2014.394.26(f) For a facility that has employees that are represented by an exclusive bargaining 394.27representative, the provider shall obtain a letter of acceptance of the distribution plan 394.28required under paragraph (g), in regard to the members of the bargaining unit, signed by 394.29the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall 394.30be deemed to have met all the requirements of this subdivision in regard to the members 394.31of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for 394.32the commissioner.394.33(g) A facility that receives a rate adjustment under paragraph (a) that is subject to 394.34paragraph (c) shall prepare, and upon request submit to the commissioner, a distribution 394.35plan that specifies the amount of money the facility expects to receive that is subject to the 395.1requirements of paragraph (c), including how that money will be distributed to increase 395.2compensation for employees.395.3(h) Using forms prescribed by the commissioner, facilities must submit to the 395.4commissioner verification that they have complied with paragraph (c).395.5(i) By January 1, 2015, the facility shall post the distribution plan required under 395.6paragraph (g) for a period of at least six weeks in an area of the facility's operation to 395.7which all eligible employees have access and shall provide instructions for employees 395.8who do not believe they have received the wage and other compensation-related increases 395.9specified in the distribution plan. The instructions must include a mailing address, e-mail 395.10address, and telephone number that an employee may use to contact the commissioner or 395.11the commissioner's representative.395.12    Sec. 73. Laws 2012, chapter 247, article 4, section 47, is amended to read:395.13    Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION 395.14TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET 395.15METHODOLOGY.395.16By July 1, 2012 2014, if necessary, the commissioner shall request an amendment to 395.17the home and community-based services waivers authorized under Minnesota Statutes, 395.18sections 
         256B.092 and 
         256B.49, to establish an exception to the consumer-directed 395.19community supports budget methodology to provide up to 20 percent more funds for those 395.20participants who have their 21st birthday and graduate from high school during between 395.21 2013 to 2015 and are authorized for more services under consumer-directed community 395.22supports prior to graduation than what the amount  they are eligible to receive under the 395.23current consumer-directed community supports budget methodology. The exception is 395.24limited to those who can demonstrate that they will have to leave consumer-directed 395.25community supports and use other waiver services because their need for day or 395.26employment supports cannot be met within the consumer-directed community supports 395.27budget limits. The commissioner shall consult with the stakeholder group authorized 395.28under Minnesota Statutes, section 
         256B.0657, subdivision 11, to implement this provision. 395.29The exception process shall be effective upon federal approval for persons eligible during 395.302013 and 2014 through June 30, 2017.395.31    Sec. 74. HOME AND COMMUNITY-BASED SETTINGS TRANSITION PLAN.395.32The commissioner of human services shall develop a transition plan to comply 395.33with the Centers for Medicare and Medicaid Services final rule defining home and 395.34community-based settings published on January 16, 2014, Code of Federal Regulations, 396.1title 42, section 441.301(c)(4)-(5).  In developing the plan, the commissioner shall consult 396.2with individuals with disabilities, seniors, and other stakeholders, including, but not 396.3limited to advocates, providers, lead agencies, other state agencies, and the Olmstead 396.4subcabinet.  The commissioner shall submit the plan to the Centers for Medicare and 396.5Medicaid Services by December 31, 2014. 396.6By January 15, 2015, the commissioner shall provide a report with the plan 396.7submitted to the Centers for Medicare and Medicaid Services, as well as any changes as 396.8a result of negotiations that have occurred with the Centers for Medicare and Medicaid 396.9Services, to the chairs and ranking minority members of the house of representatives and 396.10senate policy and finance committees with jurisdiction over health and human services.  396.11This report must contain any recommended legislation and funding requests necessary 396.12to implement the transition plan.396.13    Sec. 75. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.396.14The commissioner of human services, in consultation with interested stakeholders, 396.15shall review medical assistance spenddown requirements and processes, including those 396.16used in other states, for individuals with disabilities and seniors age 65 years of age or 396.17older. Based on this review, the commissioner shall recommend alternative medical 396.18assistance spenddown payment requirements and processes that:396.19(1) are practical for current and potential medical assistance recipients, providers, 396.20and the Department of Human Services;396.21(2) improves the medical assistance payment process for providers; and396.22(3) allows current and potential medical assistance recipients to obtain consistent 396.23and affordable medical coverage.396.24The commissioner shall report these recommendations, along with the projected cost, 396.25to the chairs and ranking minority members of the legislative committees and divisions 396.26with jurisdiction over health and human services policy and finance by February 15, 2015.396.27    Sec. 76.  PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 396.281, 2014.396.29(a) The commissioner of human services shall increase reimbursement rates, grants, 396.30allocations, individual limits, and rate limits, as applicable, by five percent for the rate 396.31period beginning July 1, 2014, for services rendered on or after July 1, 2014. County or 396.32tribal contracts for services, grants, and programs under paragraph (b) must be amended to 396.33pass through these rate increases by September 1, 2014.396.34(b) The rate changes described in this section must be provided to:397.1(1) home and community-based waivered services for persons with developmental 397.2disabilities, including consumer-directed community supports, under Minnesota Statutes, 397.3section 256B.501;397.4(2) waivered services under community alternatives for disabled individuals, 397.5including consumer-directed community supports, under Minnesota Statutes, section 397.6256B.49;397.7(3) community alternative care waivered services, including consumer-directed 397.8community supports, under Minnesota Statutes, section 256B.49;397.9(4) brain injury waivered services, including consumer-directed community 397.10supports, under Minnesota Statutes, section 256B.49;397.11(5) home and community-based waivered services for the elderly under Minnesota 397.12Statutes, section 256B.0915;397.13(6) nursing services and home health services under Minnesota Statutes, section 397.14256B.0625, subdivision 6a;397.15(7) personal care services and qualified professional supervision of personal care 397.16services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;397.17(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 397.18subdivision 7;397.19(9) day training and habilitation services for adults with developmental disabilities 397.20under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to 397.21counties of the rate adjustments on day training and habilitation services, provided as a 397.22social service;397.23(10) alternative care services under Minnesota Statutes, section 256B.0913;397.24(11) living skills training programs for persons with intractable epilepsy who need 397.25assistance in the transition to independent living under Laws 1988, chapter 689;397.26(12) semi-independent living services (SILS) under Minnesota Statutes, section 397.27252.275, including SILS funding under county social services grants formerly funded 397.28under Minnesota Statutes, chapter 256M;397.29(13) consumer support grants under Minnesota Statutes, section 256.476;397.30(14) family support grants under Minnesota Statutes, section 252.32;397.31(15) housing access grants under Minnesota Statutes, section 256B.0658;397.32(16) self-advocacy grants under Laws 2009, chapter 101; and397.33(17) technology grants under Laws 2009, chapter 79.397.34(c) For individual service rates determined under Minnesota Statutes, section 397.35256B.4914, the commissioner shall adjust the calculations in subdivisions 6, 7, 8, and 398.19, after any adjustments under Minnesota Statutes, section 256B.4914, subdivision 16, 398.2to reflect a five percent increase.398.3(d) The commissioner shall increase the banding values for all service recipients as 398.4defined in Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b), by five 398.5percent, effective July 1, 2014.398.6(e) A managed care plan or county-based purchasing plan receiving state payments 398.7for the services grants and programs in paragraph (b) must include these increases in their 398.8payments to providers. To implement the rate increase in paragraph (a), capitation rates 398.9paid by the commissioner to managed care plans and county-based purchasing plans under 398.10Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the services 398.11and programs specified in paragraph (b) for the period beginning July 1, 2014.398.12(f) Counties shall increase the budget for each recipient of consumer-directed 398.13community supports by the amount in paragraph (a) on July 1, 2014.398.14(g) Providers that receive a rate increase under paragraph (a) shall use 80 percent 398.15of the additional revenue to increase compensation-related costs for employees directly 398.16employed by the program on or after July 1, 2014, except:398.17(1) persons employed in the central office of a corporation or entity that has an 398.18ownership interest in the provider or exercises control over the provider; and398.19(2) persons paid by the provider under a management contract.398.20(h) Compensation-related costs include:398.21(1) wages and salaries;398.22(2) the employer's share of FICA taxes, Medicare taxes, state and federal 398.23unemployment taxes, workers' compensation, and mileage reimbursement;398.24(3) the employer's share of health and dental insurance, life insurance, disability 398.25insurance, long-term care insurance, uniform allowance, pensions, and contributions to 398.26employee retirement accounts; and398.27(4) other benefits provided and workforce needs, including the recruiting and 398.28training of employees as specified in the distribution plan required under paragraph (l).398.29(i) For public employees under a collective bargaining agreement, the increase for 398.30wages and benefits is available and pay rates must be increased only to the extent that the 398.31increases comply with laws governing public employees' collective bargaining. Money 398.32received by a provider for pay increases for public employees under paragraph (g) must be 398.33used only for pay increases implemented between July 1, 2014, and August 1, 2014.398.34(j) For a provider that has employees that are represented by an exclusive bargaining 398.35representative, the provider shall obtain a letter of acceptance of the distribution plan 398.36required under paragraph (m), in regard to the members of the bargaining unit, signed by 399.1the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall 399.2be deemed to have met all the requirements of this section in regard to the members of 399.3the bargaining unit. Upon request, the provider shall produce the letter of acceptance for 399.4the commissioner.399.5(k) The commissioner shall amend state grant contracts that include direct 399.6personnel-related grant expenditures to include the allocation for the portion of the 399.7contract related to employee compensation. Grant contracts for compensation-related 399.8services must be amended to pass through these adjustments by September 1, 2014, and 399.9must be retroactive to July 1, 2014.399.10(l) The Board on Aging and its area agencies on aging shall amend their grants that 399.11include direct personnel-related grant expenditures to include the rate adjustment for the 399.12portion of the grant related to employee compensation. Grants for compensation-related 399.13services must be amended to pass through these adjustments by September 1, 2014, and 399.14must be retroactive to July 1, 2014.399.15(m) A provider that receives a rate adjustment under paragraph (a) that is subject to 399.16paragraph (g) shall prepare, and upon request submit to the commissioner, a distribution 399.17plan that specifies the amount of money the provider expects to receive that is subject 399.18to the requirements of paragraph (g), including how that money will be distributed to 399.19increase compensation for employees.399.20(n) Using forms prescribed by the commissioner, providers must submit to the 399.21commissioner verification that they have complied with paragraph (g).399.22(o) By January 1, 2015, the provider shall post the distribution plan required under 399.23paragraph (l) for a period of at least six weeks in an area of the provider's operation to 399.24which all eligible employees have access and shall provide instructions for employees 399.25who do not believe they have received the wage and other compensation-related increases 399.26specified in the distribution plan. The instructions must include a mailing address, e-mail 399.27address, and telephone number that the employee may use to contact the commissioner or 399.28the commissioner's representative.399.29(p) For providers with rates established under Minnesota Statutes, section 399.30256B.4914, and with a banding value established under Minnesota Statutes, section 399.31256B.4913, subdivision 4a, paragraph (b), that is greater than the rate established under 399.32Minnesota Statutes, section 256B.4914, the requirements in paragraph (g) must only apply 399.33to the portion of the rate increase that exceeds the difference between the rate established 399.34under Minnesota Statutes, section 256B.4914, and the banding value established under 399.35Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b).400.1    Sec. 77. NURSING FACILITY RATE ADJUSTMENT.400.2    Subdivision 1.Application for rate adjustment.(a) To receive a rate adjustment, 400.3nursing facilities must submit an application to the commissioner in a form and manner 400.4determined by the commissioner. The application shall include data for a period beginning 400.5with the first pay period after January 1, 2014, and including at least three months of 400.6employee compensated hours by wage rate, and a spending plan that describes how the 400.7funds from the rate adjustment will be allocated for compensation to employees paid 400.8less than $14 per hour. The application must be submitted by December 31, 2014. The 400.9commissioner may request any additional information needed to determine the rate 400.10adjustment within three weeks of receiving a complete application. The nursing facility 400.11must provide any additional information requested by the commissioner by March 31, 400.122015. The commissioner may waive the deadlines in this subdivision under extraordinary 400.13circumstances.400.14(b) For nursing facilities in which employees are represented by an exclusive 400.15bargaining representative, the commissioner shall approve the application submitted under 400.16this subdivision only upon receipt of a letter of acceptance of the spending plan in regard 400.17to members of the bargaining unit, signed by the exclusive bargaining agent and dated 400.18after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall 400.19deem all requirements of this subdivision as having been met in regard to the members of 400.20the bargaining unit.400.21    Subd. 2.Rate adjustment calculation.Based on the application in subdivision 400.221, the commissioner shall calculate the annualized compensation costs by adding the 400.23totals of clauses (1), (2), and (3). The result must be divided by the resident days from 400.24the most recently available cost report to determine a per diem amount, which must be 400.25included in the external fixed cost portion of the total payment rate under Minnesota 400.26Statutes, section 256B.441, subdivision 53: 400.27(1) the sum of the difference between $9.50 and any hourly wage rate of less than 400.28$9.50, multiplied by the number of compensated hours at that wage rate;400.29(2) the sum of items (i) to (viii):400.30(i) for all compensated hours from $8 to $8.49 per hour, the number of compensated 400.31hours is multiplied by $0.13;400.32(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of 400.33compensated hours is multiplied by $0.25;400.34(iii) for all compensated hours from $9 to $9.49 per hour, the number of compensated 400.35hours is multiplied by $0.38;401.1(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of 401.2compensated hours is multiplied by $0.50;401.3(v) for all compensated hours from $10.50 to $10.99 per hour, the number of 401.4compensated hours is multiplied by $0.40;401.5(vi) for all compensated hours from $11 to $11.49 per hour, the number of 401.6compensated hours is multiplied by $0.30;401.7(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of 401.8compensated hours is multiplied by $0.20; and401.9(viii) for all compensated hours from $12 to $13.00 per hour, the number of 401.10compensated hours is multiplied by $0.10; and401.11(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal 401.12unemployment taxes, workers' compensation, pensions, and contributions to employee 401.13retirement accounts attributable to the amounts in clauses (1) and (2).401.14    Subd. 3.Rate adjustment.For the rate year beginning October 1, 2014, nursing 401.15facilities that receive approval of the application in subdivision 1 must receive a rate 401.16adjustment according to subdivision 2. The rate adjustment must be used to pay 401.17compensation costs for nursing facility employees paid less than $14 per hour. The rate 401.18adjustment must continue to be included in the total payment rate in subsequent years.401.19    Sec. 78. DISABILITY WAIVER REIMBURSEMENT RATE ADJUSTMENTS.401.20    Subdivision 1.Historical rate.The commissioner of human services shall adjust 401.21the historical rates calculated in Minnesota Statutes, section 256B.4913, subdivision 4a, 401.22paragraph (b), in effect during the banding period under Minnesota Statutes, section 401.23256B.4913, subdivision 4a, paragraph (a), for the reimbursement rate increases effective 401.24April 1, 2014, and any rate modification enacted during the 2014 legislative session.401.25    Subd. 2.Residential support services.The commissioner of human services 401.26shall adjust the rates calculated in Minnesota Statutes, section 256B.4914, subdivision 6, 401.27paragraphs (b), clause (4), and (c), for the reimbursement rate increases effective April 1, 401.282014, and any rate modification enacted during the 2014 legislative session.401.29    Subd. 3.Day programs.The commissioner of human services shall adjust the rates 401.30calculated in Minnesota Statutes, section 256B.4914, subdivision 7, paragraph (a), clauses 401.31(15) to (17), for the reimbursement rate increases effective April 1, 2014, and any rate 401.32modification enacted during the 2014 legislative session.401.33    Subd. 4.Unit-based services with programming.The commissioner of human 401.34services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, 402.1subdivision 8, paragraph (a), clause (14), for the reimbursement rate increases effective 402.2April 1, 2014, and any rate modification enacted during the 2014 legislative session.402.3    Subd. 5.Unit-based services without programming.The commissioner of 402.4human services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, 402.5subdivision 9, paragraph (a), clause (23), for the reimbursement rate increases effective 402.6April 1, 2014, and any rate modification enacted during the 2014 legislative session.402.7    Sec. 79. WAIVER APPLICATIONS FOR NONEMERGENCY MEDICAL 402.8TRANSPORTATION SERVICE PROVIDERS.402.9    Subdivision 1.Definitions.For purposes of this section, the following definitions 402.10apply:402.11(1) "new provider" is a nonemergency medical transportation service provider that 402.12was not required to comply with special transportation service operating standards before 402.13the effective date of this act; and402.14(2) "commissioner" is the commissioner of human services.402.15    Subd. 2.Application for and terms of variance.A new provider may apply to the 402.16commissioner, on a form supplied by the commissioner for this purpose, for a variance 402.17from special transportation service operating standards. The commissioner may grant or 402.18deny the variance application. Variances expire on the earlier of, February 1, 2016, or the 402.19date that the commissioner of transportation begins certifying new providers under the 402.20terms of this act and successor legislation.402.21    Subd. 3.Information concerning variances.The commissioner shall periodically 402.22transmit to the Department of Transportation the number of variance applications received 402.23and the number granted.402.24    Subd. 4.Report by commissioner of transportation.On or before February 402.251, 2015, the commissioner of transportation shall report to the chairs and ranking 402.26minority members of the senate and house of representatives committees and divisions 402.27with jurisdiction over transportation and human services concerning implementing the 402.28nonemergency medical transportation services provisions. The report must contain 402.29recommendations of the commissioner of transportation concerning statutes, session 402.30laws, and rules that must be amended, repealed, enacted, or adopted to implement the 402.31nonemergency medical transportation services provisions. The recommendations must 402.32include, without limitation, the amount of the fee that would be required to cover the costs 402.33of Department of Transportation supervision of inspection and certification, as well as 402.34any needed statutory rulemaking or other authority to be granted to the commissioner of 402.35transportation.403.1    Sec. 80. REVISOR'S INSTRUCTION.403.2(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to 403.3in column A, the revisor of statutes shall delete the word or phrase in column B and 403.4insert the phrase in column C. The revisor shall also make related grammatical changes 403.5and changes in headnotes.

403.6Column AColumn BColumn C403.7403.8section 158.13defective personspersons with developmental disabilities403.9403.10section 158.14defective personspersons with developmental disabilities403.11403.12section 158.17defective personspersons with developmental disabilities403.13403.14section 158.18persons not defectivepersons without developmental disabilities403.15403.16defective personperson with developmental disabilities403.17403.18defective personspersons with developmental disabilities403.19403.20section 158.19defectiveperson with developmental disabilities403.21403.22section 256.94defectivechildren with developmental disabilities and403.23403.24section 257.175defectivechildren with developmental disabilities and403.25part 2911.1350retardationdevelopmental disability

403.26(b) The revisor of statutes shall change the term "health and safety" to "health and 403.27welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061, 403.28245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.403.29    Sec. 81.  REPEALER.403.30Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18f, is 403.31repealed.403.32ARTICLE 19403.33HEALTH CARE403.34    Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a 403.35subdivision to read:403.36    Subd. 38.Contract to match recipient third-party liability information.The 403.37commissioner may enter into a contract with a national organization to match recipient 404.1third-party liability information and provide coverage and insurance primacy information 404.2to the department at no charge to providers and the clearinghouses.404.3    Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:404.4    Subdivision 1. Authority. (a) The commissioner shall establish procedures for 404.5determining medical assistance and general assistance medical care payment rates under 404.6a prospective payment system for inpatient hospital services in hospitals that qualify as 404.7vendors of medical assistance. The commissioner shall establish, by rule, procedures for 404.8implementing this section and sections 
         256.9686, 
         256.969, and 
         256.9695. Services must 404.9meet the requirements of section 
         256B.04, subdivision 15, or 256D.03, subdivision 7, 404.10paragraph (b), to be eligible for payment.404.11(b) The commissioner may reduce the types of inpatient hospital admissions that 404.12are required to be certified as medically necessary after notice in the State Register and a 404.1330-day comment period.404.14    Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:404.15    Subd. 1a. Administrative reconsideration. Notwithstanding sections section404.16256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish 404.17an administrative reconsideration process for appeals of inpatient hospital services 404.18determined to be medically unnecessary. A physician or hospital may request a 404.19reconsideration of the decision that inpatient hospital services are not medically necessary 404.20by submitting a written request for review to the commissioner within 30 days after 404.21receiving notice of the decision. The reconsideration process shall take place prior to the 404.22procedures of subdivision 1b and shall be conducted by physicians that are independent 404.23of the case under reconsideration. A majority decision by the physicians is necessary to 404.24make a determination that the services were not medically necessary.404.25    Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:404.26    Subd. 2. Base year. "Base year" means a hospital's fiscal year or years that 404.27is recognized by the Medicare program or a hospital's fiscal year specified by the 404.28commissioner if a hospital is not required to file information by the Medicare program 404.29from which cost and statistical data are used to establish medical assistance and general 404.30assistance medical care payment rates.404.31    Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:405.1    Subdivision 1. Hospital cost index. (a) The hospital cost index shall be the change 405.2in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted 405.3by Data Resources, Inc. The commissioner shall use the indices as forecasted in the 405.4third quarter of the calendar year prior to the rate year. The hospital cost index may be 405.5used to adjust the base year operating payment rate through the rate year on an annually 405.6compounded basis.405.7(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human 405.8services shall not provide automatic annual inflation adjustments for hospital payment 405.9rates under medical assistance, nor under general assistance medical care, except that 405.10the inflation adjustments under paragraph (a) for medical assistance, excluding general 405.11assistance medical care, shall apply through calendar year 2001. The index for calendar 405.12year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index 405.13from 1994 to 1996. The commissioner of management and budget shall include as a 405.14budget change request in each biennial detailed expenditure budget submitted to the 405.15legislature under section 
         16A.11 annual adjustments in hospital payment rates under 405.16medical assistance and general assistance medical care, based upon the hospital cost index.405.17    Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:405.18    Subd. 2. Diagnostic categories. The commissioner shall use to the extent possible 405.19existing diagnostic classification systems, including such as the system used by the 405.20Medicare program all patient-refined diagnosis-related groups (APR-DRGs) or other 405.21similar classification programs  to determine the relative values of inpatient services 405.22and case mix indices. The commissioner may combine diagnostic classifications into 405.23diagnostic categories and may establish separate categories and numbers of categories 405.24based on program eligibility or hospital peer group. Relative values shall be recalculated405.25 recalibrated when the base year is changed. Relative value determinations shall include 405.26paid claims for admissions during each hospital's base year. The commissioner may 405.27extend the time period forward to obtain sufficiently valid information to establish relative 405.28values supplement the diagnostic classification systems data with national averages. 405.29Relative value determinations shall not include property cost data, Medicare crossover 405.30data, and data on admissions that are paid a per day transfer rate under subdivision 14. The 405.31computation of the base year cost per admission must include identified outlier cases and 405.32their weighted costs up to the point that they become outlier cases, but must exclude costs 405.33recognized in outlier payments beyond that point. The commissioner may recategorize the 405.34diagnostic classifications and recalculate recalibrate relative values and case mix indices 405.35to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce 406.1variances within the diagnostic categories after notice in the State Register and a 30-day 406.2comment period. The commissioner shall recategorize the diagnostic classifications and 406.3recalculate relative values and case mix indices based on the two-year schedule in effect 406.4prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur 406.5January 1, 2013, and shall occur every two years after. When rates are not rebased under 406.6subdivision 2b, the commissioner may establish relative values and case mix indices based 406.7on charge data and may update the base year to the most recent data available.406.8    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:406.9    Subd. 2b. Operating Hospital payment rates.In determining operating payment 406.10rates for admissions occurring on or after the rate year beginning January 1, 1991, 406.11and every two years after, or more frequently as determined by the commissioner, 406.12the commissioner shall obtain operating data from an updated base year and establish 406.13operating payment rates per admission for each hospital based on the cost-finding methods 406.14and allowable costs of the Medicare program in effect during the base year. Rates under 406.15the general assistance medical care, medical assistance, and MinnesotaCare programs 406.16shall not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 406.1724 months of the rebased period beginning January 1, 2009 (a) For discharges occurring 406.18on and after October 1, 2014, hospital inpatient services for hospitals located in Minnesota 406.19shall be paid according to the following:406.20(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 406.21methodology;406.22(2) long-term care hospitals as defined by Medicare shall be paid on a per diem 406.23methodology under subdivision 25;406.24(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 406.25distinct parts as defined by Medicare shall be paid according to the methodology under 406.26subdivision 12; and406.27(4) all other hospitals shall be paid on a diagnostic-related group (DRG) methodology.406.28     (b) For the rebased period beginning January 1, 2011, to September 30, 2014, rates 406.29shall not be rebased, except that a Minnesota long-term hospital shall be rebased effective 406.30January 1, 2011, based on its most recent Medicare cost report ending on or before 406.31September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates 406.32in effect on December 31, 2010. For subsequent rate setting periods after October 1, 406.332014, in which the base years are updated, a Minnesota long-term hospital's base year 406.34shall remain within the same period as other hospitals. Effective January 1, 2013, and 406.35after, rates shall not be rebased.407.1(c) Effective for discharges occurring on and after October 1, 2014, payment rates 407.2for hospital inpatient services provided by hospitals located in Minnesota or the local trade 407.3area, except for the hospitals paid under the methodologies described in paragraph (a), 407.4clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in 407.5a manner similar to Medicare. The base year for the rates effective October 1, 2014, 407.6shall be state fiscal year 2012. The rebasing must be budget neutral, ensuring that 407.7the total aggregate payments under the rebased system are equal to the total aggregate 407.8payments made for the same number and types of services in the base year. Separate 407.9budget neutrality calculations must be determined for payments made to critical access 407.10hospitals and payments made to hospitals paid under the DRG system. Any rate increases 407.11or decreases under subdivision 3a that applied to the hospitals being rebased during the 407.12base period must be incorporated into the budget neutrality calculation. Any rate increases 407.13or decreases that did not apply to the base period shall not be considered in the budget 407.14neutrality calculation. The estimated expenditures in fiscal years 2015, 2016, and 2017, 407.15after the rebasing is complete, must equal the estimated expenditures for inpatient hospital 407.16services in the February 2014 forecast.407.17(d) For discharges occurring October 1, 2014, through and including June 30, 2016, 407.18the rebased rates must include necessary adjustments to the projected rates that result in 407.19no greater than a five percent increase or decrease from the base year payments for any 407.20hospital. In addition to these adjustments, the commissioner may make adjustments to 407.21rates and must consider the impact of changes on at least the following when evaluating 407.22whether additional adjustments should be made:407.23(1) pediatric services;407.24(2) behavioral health services;407.25(3) trauma services as defined by the National Uniform Billing Committee;407.26(4) transplant services;407.27(5) obstetric services, newborn services, and behavioral health services provided 407.28by hospitals outside the seven-county metropolitan area;407.29(6) outlier admissions;407.30(7) low-volume providers; and407.31(8) services provided by small rural hospitals that are not critical access hospitals.407.32(e) Hospital payment rates established under paragraph (c) must incorporate the 407.33following:407.34    (1) for hospitals paid under the DRG methodology, the base year operating payment 407.35rate per admission is standardized by the case mix index and adjusted by the hospital cost 408.1index, relative values, and disproportionate population adjustment. applicable Medicare 408.2wage index and adjusted by the hospital's disproportionate population adjustment;408.3    (2) for critical access hospitals, interim per diem payment rate must be based on 408.4the ratio of cost and charges reported on the base year Medicare cost report or reports 408.5and applied to medical assistance utilization data. Final settlement payments for a state 408.6fiscal year must be determined based on a review of the Medicaid cost report for the 408.7applicable state fiscal year;408.8    (3)  the cost and charge data used to establish operating hospital payment  rates shall408.9 must only reflect inpatient services covered by medical assistance and shall not include 408.10property cost information and costs recognized in outlier payments; and408.11    (4) in determining hospital payment rates for discharges occurring on or after the 408.12rate year beginning January 1, 2011, to December 31, 2012, the hospital payment rate per 408.13discharge must be based on the cost-finding methods and allowable costs of the Medicare 408.14program in effect during the base year or years.408.15    Sec. 8. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 408.16to read:408.17    Subd. 2d.Budget neutrality factor.For the rebased period effective October 1, 408.182014, when rebasing rates under subdivision 2b, paragraph (c), the commissioner shall 408.19apply a budget neutrality factor (BNF), if applicable, to all hospitals' rebased rates to 408.20ensure that total DRG and critical access hospital payments to hospitals do not exceed 408.21total DRG and critical access hospital payments that would have been made to hospitals 408.22for the same number and types of services if the relative rates and weights had not been 408.23recalibrated and cost-based payments for critical access hospitals had not been established. 408.24For the purposes of this subdivision, BNF equals the percentage change from total 408.25aggregate payments calculated under a new payment system to total aggregate payments 408.26calculated under the old system for the same number and types of services.408.27    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 408.28to read:408.29    Subd. 2e.Interim payments.Notwithstanding subdivision 2b, for discharges 408.30occurring on or after October 1, 2014, and no later than June 30, 2015, the commissioner 408.31may implement an interim payment process to pay hospitals, including payments based on 408.32each hospital's average payments per claim for state fiscal years 2011 and 2012. These 408.33interim payments may be used to pay hospitals if the new payment system and rebasing 408.34under subdivision 2b is not complete by October 1, 2014. Claims paid at interim payment 409.1rates shall be reprocessed and paid at the rates established under the new system upon 409.2implementation of the new system.409.3    Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 409.4to read:409.5    Subd. 2f.Report required.(a) The commissioner shall report to the legislature by 409.6March 1, 2015, and by March 1, 2016, on the financial impacts by hospital and policy 409.7ramifications, if any, resulting from payment methodology changes implemented after 409.8September 30, 2014, and before December 15, 2015.409.9(b) The commissioner shall report, at a minimum, the following information:409.10(1) case-mix adjusted calculations of net payment impacts for each hospital resulting 409.11from the difference between the payments each hospital would have received under the 409.12payment methodology for discharges before September 30, 2014, and the payments each 409.13hospital has or is expected to receive for the same number and types of services under the 409.14payment methodology implemented effective October 1, 2014;409.15(2) any adjustments that the commissioner madeand the impacts of those adjustments 409.16for each hospital; and409.17(3) recommendations for further refinement or improvement of the hospital inpatient 409.18payment system or methodologies.409.19    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:409.20    Subd. 3a. Payments. (a) Acute care hospital billings under the medical 409.21assistance program must not be submitted until the recipient is discharged. However, 409.22the commissioner shall establish monthly interim payments for inpatient hospitals that 409.23have individual patient lengths of stay over 30 days regardless of diagnostic category. 409.24Except as provided in section 
         256.9693, medical assistance reimbursement for treatment 409.25of mental illness shall be reimbursed based on diagnostic classifications. Individual 409.26hospital payments established under this section and sections 
         256.9685, 
         256.9686, and 409.27256.9695
         , in addition to third-party and recipient liability, for discharges occurring during 409.28the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 409.29inpatient services paid for the same period of time to the hospital. This payment limitation 409.30shall be calculated separately for medical assistance and general assistance medical 409.31care services. The limitation on general assistance medical care shall be effective for 409.32admissions occurring on or after July 1, 1991. Services that have rates established under 409.33subdivision 11 or 12, must be limited separately from other services. After consulting with 409.34the affected hospitals, the commissioner may consider related hospitals one entity and may 410.1merge the payment rates while maintaining separate provider numbers. The operating and 410.2property base rates per admission or per day shall be derived from the best Medicare and 410.3claims data available when rates are established. The commissioner shall determine the 410.4best Medicare and claims data, taking into consideration variables of recency of the data, 410.5audit disposition, settlement status, and the ability to set rates in a timely manner. The 410.6commissioner shall notify hospitals of payment rates by December 1 of the year preceding 410.7the rate year 30 days prior to implementation. The rate setting data must reflect the 410.8admissions data used to establish relative values. Base year changes from 1981 to the base 410.9year established for the rate year beginning January 1, 1991, and for subsequent rate years, 410.10shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase 410.11under subdivision 1. The commissioner may adjust base year cost, relative value, and case 410.12mix index data to exclude the costs of services that have been discontinued by the October 410.131 of the year preceding the rate year or that are paid separately from inpatient services. 410.14Inpatient stays that encompass portions of two or more rate years shall have payments 410.15established based on payment rates in effect at the time of admission unless the date of 410.16admission preceded the rate year in effect by six months or more. In this case, operating 410.17payment rates for services rendered during the rate year in effect and established based on 410.18the date of admission shall be adjusted to the rate year in effect by the hospital cost index.410.19    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total 410.20payment, before third-party liability and spenddown, made to hospitals for inpatient 410.21services is reduced by .5 percent from the current statutory rates.410.22    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 410.23admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before 410.24third-party liability and spenddown, is reduced five percent from the current statutory 410.25rates. Mental health services within diagnosis related groups 424 to 432 or corresponding 410.26APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.410.27    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for 410.28fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 410.29inpatient services before third-party liability and spenddown, is reduced 6.0 percent from 410.30the current statutory rates. Mental health services within diagnosis related groups 424 410.31to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are 410.32excluded from this paragraph. Notwithstanding section 256.9686, subdivision 7, for 410.33purposes of this paragraph, medical assistance does not include general assistance medical 410.34care. Payments made to managed care plans shall be reduced for services provided on or 410.35after January 1, 2006, to reflect this reduction.411.1    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 411.2fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 411.3to hospitals for inpatient services before third-party liability and spenddown, is reduced 411.43.46 percent from the current statutory rates. Mental health services with diagnosis 411.5related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under 411.6subdivision 16 are excluded from this paragraph. Payments made to managed care plans 411.7shall be reduced for services provided on or after January 1, 2009, through June 30, 2009, 411.8to reflect this reduction.411.9    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 411.10for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, 411.11made to hospitals for inpatient services before third-party liability and spenddown, is 411.12reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis 411.13related groups 424 to 432 or corresponding APR-DRGs,  and facilities defined under 411.14subdivision 16 are excluded from this paragraph. Payments made to managed care plans 411.15shall be reduced for services provided on or after July 1, 2009, through June 30, 2011, 411.16to reflect this reduction.411.17    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 411.18for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for 411.19inpatient services before third-party liability and spenddown, is reduced 1.79 percent from 411.20the current statutory rates. Mental health services with diagnosis related groups 424 to 432411.21 or corresponding APR-DRGs,  and facilities defined under subdivision 16 are excluded 411.22from this paragraph. Payments made to managed care plans shall be reduced for services 411.23provided on or after July 1, 2011, to reflect this reduction.411.24(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 411.25payment for fee-for-service admissions occurring on or after July 1, 2009, made to 411.26hospitals for inpatient services before third-party liability and spenddown, is reduced 411.27one percent from the current statutory rates. Facilities defined under subdivision 16 are 411.28excluded from this paragraph. Payments made to managed care plans shall be reduced for 411.29services provided on or after October 1, 2009, to reflect this reduction.411.30(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total 411.31payment for fee-for-service admissions occurring on or after July 1, 2011, made to 411.32hospitals for inpatient services before third-party liability and spenddown, is reduced 411.331.96 percent from the current statutory rates. Facilities defined under subdivision 16 are 411.34excluded from this paragraph. Payments made to managed care plans shall be reduced for 411.35services provided on or after January 1, 2011, to reflect this reduction.412.1(j) Effective for discharges on and after October 1, 2014, from hospitals paid under 412.2subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision 412.3must be incorporated into the rebased rates established under subdivision 2b, paragraph 412.4(c), and must not be applied to each claim.412.5    Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:412.6    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain 412.7treatments. (a) The commissioner must not make medical assistance payments to a 412.8hospital for any costs of care that result from a condition listed identified in paragraph 412.9(c), if the condition was hospital acquired.412.10    (b) For purposes of this subdivision, a condition is hospital acquired if it is not 412.11identified by the hospital as present on admission. For purposes of this subdivision, 412.12medical assistance includes general assistance medical care and MinnesotaCare.412.13(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired 412.14condition listed in this paragraph that is represented by an ICD-9-CM  or ICD-10-CM 412.15diagnosis code and is designated as a complicating condition or a major complicating 412.16condition:412.17(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);412.18(2) air embolism (ICD-9-CM code 999.1);412.19(3) blood incompatibility (ICD-9-CM code 999.6);412.20(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);412.21(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing 412.22injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating 412.23condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929; 412.24940-949; and 991-994);412.25(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);412.26(7) vascular catheter-associated infection (ICD-9-CM code 999.31);412.27(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11; 412.28249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and 412.29251.0);412.30(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain 412.31orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07; 412.3281.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and 412.3381.85);413.1(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery 413.2(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity 413.3(ICD-9-CM code 278.01);413.4(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary 413.5artery bypass graft (procedure codes 36.10 to 36.19); and413.6(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary 413.7embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement 413.8(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 to 413.981.52). The list of conditions shall be the hospital-acquired conditions (HAC) list defined 413.10by the Centers for Medicare and Medicaid Services on an annual basis.413.11(d) The prohibition in paragraph (a) applies to any additional payments that result 413.12from a hospital-acquired condition listed identified in paragraph (c), including, but not 413.13limited to, additional treatment or procedures, readmission to the facility after discharge, 413.14increased length of stay, change to a higher diagnostic category, or transfer to another 413.15hospital. In the event of a transfer to another hospital, the hospital where the condition 413.16listed identified under paragraph (c) was acquired is responsible for any costs incurred at 413.17the hospital to which the patient is transferred.413.18(e) A hospital shall not bill a recipient of services for any payment disallowed under 413.19this subdivision.413.20    Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 3c, is amended to read:413.21    Subd. 3c. Rateable reduction and readmissions reduction. (a) The total payment 413.22for fee for service admissions occurring on or after September 1, 2011, through June 30, 413.232015 to October 31, 2014, made to hospitals for inpatient services before third-party 413.24liability and spenddown, is reduced ten percent from the current statutory rates. Facilities 413.25defined under subdivision 16, long-term hospitals as determined under the Medicare 413.26program, children's hospitals whose inpatients are predominantly under 18 years of age, 413.27and payments under managed care are excluded from this paragraph.413.28(b) Effective for admissions occurring during calendar year 2010 and each year 413.29after, the commissioner shall calculate a regional readmission rate for admissions to all 413.30hospitals occurring within 30 days of a previous discharge. The commissioner may 413.31adjust the readmission rate taking into account factors such as the medical relationship, 413.32complicating conditions, and sequencing of treatment between the initial admission and 413.33subsequent readmissions.413.34(c) Effective for payments to all hospitals on or after July 1, 2013, through June 30, 413.352015 October 31, 2014, the reduction in paragraph (a) is reduced one percentage point for 414.1every percentage point reduction in the overall readmissions rate between the two previous 414.2calendar years to a maximum of five percent.414.3(d) The exclusion from the rate reduction in paragraph (a) also applies to admissions 414.4of patients under 18 years of age to a hospital located in Hennepin County with a licensed 414.5capacity of 1,700 beds as of September 1, 2011.414.6EFFECTIVE DATE.Paragraph (d) is effective retroactively from September 1, 414.72011, and applies to admissions on or after that date.414.8    Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 414.9to read:414.10    Subd. 4b.Medical assistance cost reports for services.(a) A hospital that meets 414.11one of the following criteria must annually file medical assistance cost reports within six 414.12months of the end of the hospital's fiscal year:414.13(1) a hospital designated as a critical access hospital that receives medical assistance 414.14payments; or414.15(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local 414.16trade area that receives a disproportionate population adjustment under subdivision 9.414.17For purposes of this subdivision, local trade area has the meaning given in 414.18subdivision 17.414.19(b) The commissioner shall suspend payments to any hospital that fails to file a 414.20report required under this subdivision. Payments must remain suspended until the report 414.21has been filed with and accepted by the Department of Human Services inpatient rates unit.414.22    Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:414.23    Subd. 6a. Special considerations. In determining the payment rates, the 414.24commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.414.25    Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:414.26    Subd. 8. Unusual length of stay experience.(a) The commissioner shall establish 414.27day outlier thresholds for each diagnostic category established under subdivision 2 at two 414.28standard deviations beyond the mean length of stay. Payment for the days beyond the outlier 414.29threshold shall be in addition to the operating and property payment rates per admission 414.30established under subdivisions 2, 2b, and 2c. Payment for outliers shall be at 70 percent of 414.31the allowable operating cost, after adjustment by the case mix index, hospital cost index, 414.32relative values and the disproportionate population adjustment. The outlier threshold for 414.33neonatal and burn diagnostic categories shall be established at one standard deviation 415.1beyond the mean length of stay, and payment shall be at 90 percent of allowable operating 415.2cost calculated in the same manner as other outliers. A hospital may choose an alternative 415.3to the 70 percent outlier payment that is at a minimum of 60 percent and a maximum of 80 415.4percent if the commissioner is notified in writing of the request by October 1 of the year 415.5preceding the rate year. The chosen percentage applies to all diagnostic categories except 415.6burns and neonates. The percentage of allowable cost that is unrecognized by the outlier 415.7payment shall be added back to the base year operating payment rate per admission.415.8(b) Effective for transfers occurring on and after October 1, 2014, the commissioner 415.9shall establish payment rates for acute transfers that are based on Medicare methodologies.415.10    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:415.11    Subd. 8a. Short length of stay Neonatal admissions.Except as provided in 415.12subdivision 13, for admissions occurring on or after July 1, 1995, payment shall be 415.13determined as follows and shall be included in the base year for rate setting purposes:415.14(1) for an admission that is categorized to a neonatal diagnostic related group 415.15in which the length of stay is less than 50 percent of the average length of stay for the 415.16category in the base year and the patient at admission is equal to or greater than the age of 415.17one, payments shall be established according to the methods of subdivision 14;415.18(2) For an admission that is categorized to a diagnostic category that includes 415.19neonatal respiratory distress syndrome, the hospital must have a level II or level III 415.20nursery and the patient must receive treatment in that unit or payment will be made 415.21without regard to the syndrome condition.415.22EFFECTIVE DATE.This section is effective October 1, 2014.415.23    Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 415.24to read:415.25    Subd. 8c.Hospital residents.For discharges on or after October 1, 2014, payments 415.26for hospital residents shall be made as follows:415.27(1) payments for the first 180 days of inpatient care shall be the APR-DRG system 415.28plus any appropriate outliers; and415.29(2) payment for all medically necessary patient care subsequent to 180 days shall 415.30be reimbursed at a rate computed by multiplying the statewide average cost-to-charge 415.31ratio by the usual and customary charges.415.32    Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:416.1    Subd. 9. Disproportionate numbers of low-income patients served. (a) For 416.2admissions occurring on or after October 1, 1992, through December 31, 1992, the 416.3medical assistance disproportionate population adjustment shall comply with federal law 416.4and shall be paid to a hospital, excluding regional treatment centers and facilities of the 416.5federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 416.6of the arithmetic mean. The adjustment must be determined as follows:416.7    (1) for a hospital with a medical assistance inpatient utilization rate above the 416.8arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 416.9federal Indian Health Service but less than or equal to one standard deviation above the 416.10mean, the adjustment must be determined by multiplying the total of the operating and 416.11property payment rates by the difference between the hospital's actual medical assistance 416.12inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 416.13treatment centers and facilities of the federal Indian Health Service; and416.14    (2) for a hospital with a medical assistance inpatient utilization rate above one 416.15standard deviation above the mean, the adjustment must be determined by multiplying 416.16the adjustment that would be determined under clause (1) for that hospital by 1.1. If 416.17federal matching funds are not available for all adjustments under this subdivision, the 416.18commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 416.19federal match. The commissioner may establish a separate disproportionate population 416.20operating payment rate adjustment under the general assistance medical care program. 416.21For purposes of this subdivision medical assistance does not include general assistance 416.22medical care. The commissioner shall report annually on the number of hospitals likely to 416.23receive the adjustment authorized by this paragraph. The commissioner shall specifically 416.24report on the adjustments received by public hospitals and public hospital corporations 416.25located in cities of the first class.416.26    (b) For admissions occurring on or after July 1, 1993, the medical assistance 416.27disproportionate population adjustment shall comply with federal law and shall be paid to 416.28a hospital, excluding regional treatment centers and facilities of the federal Indian Health 416.29Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 416.30mean. The adjustment must be determined as follows:416.31    (1) for a hospital with a medical assistance inpatient utilization rate above the 416.32arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 416.33federal Indian Health Service but less than or equal to one standard deviation above the 416.34mean, the adjustment must be determined by multiplying the total of the operating and 416.35property payment rates by the difference between the hospital's actual medical assistance 417.1inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 417.2treatment centers and facilities of the federal Indian Health Service; and417.3    (2) for a hospital with a medical assistance inpatient utilization rate above one 417.4standard deviation above the mean, the adjustment must be determined by multiplying 417.5the adjustment that would be determined under clause (1) for that hospital by 1.1. The 417.6commissioner may establish a separate disproportionate population operating payment 417.7rate adjustment under the general assistance medical care program. For purposes of 417.8this subdivision, medical assistance does not include general assistance medical care417.9 for critical access hospitals. The commissioner shall report annually on the number of 417.10hospitals likely to receive the adjustment authorized by this paragraph. The commissioner 417.11shall specifically report on the adjustments received by public hospitals and public hospital 417.12corporations located in cities of the first class;.417.13    (3) for a hospital that had medical assistance fee-for-service payment volume during 417.14calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 417.15payment volume, a medical assistance disproportionate population adjustment shall be 417.16paid in addition to any other disproportionate payment due under this subdivision as 417.17follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 417.18For a hospital that had medical assistance fee-for-service payment volume during calendar 417.19year 1991 in excess of eight percent of total medical assistance fee-for-service payment 417.20volume and was the primary hospital affiliated with the University of Minnesota, a 417.21medical assistance disproportionate population adjustment shall be paid in addition to any 417.22other disproportionate payment due under this subdivision as follows: $505,000 due on 417.23the 15th of each month after noon, beginning July 15, 1995; and417.24    (4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 417.25reduced to zero.417.26    (c) The commissioner shall adjust rates paid to a health maintenance organization 417.27under contract with the commissioner to reflect rate increases provided in paragraph (b), 417.28clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 417.29rates to reflect payments provided in clause (3).417.30    (d) If federal matching funds are not available for all adjustments under paragraph 417.31(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 417.32pro rata basis so that all adjustments under paragraph (b) qualify for federal match.417.33    (e) For purposes of this subdivision, medical assistance does not include general 417.34assistance medical care.417.35    (f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:418.1    (1) general assistance medical care expenditures for fee-for-service inpatient and 418.2outpatient hospital payments made by the department shall be considered Medicaid 418.3disproportionate share hospital payments, except as limited below:418.4     (i) only the portion of Minnesota's disproportionate share hospital allotment under 418.5section 1923(f) of the Social Security Act that is not spent on the disproportionate 418.6population adjustments in paragraph (b), clauses (1) and (2), may be used for general 418.7assistance medical care expenditures;418.8     (ii) only those general assistance medical care expenditures made to hospitals that 418.9qualify for disproportionate share payments under section 1923 of the Social Security Act 418.10and the Medicaid state plan may be considered disproportionate share hospital payments;418.11     (iii) only those general assistance medical care expenditures made to an individual 418.12hospital that would not cause the hospital to exceed its individual hospital limits under 418.13section 1923 of the Social Security Act may be considered; and418.14     (iv) general assistance medical care expenditures may be considered only to the 418.15extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.418.16All hospitals and prepaid health plans participating in general assistance medical care 418.17must provide any necessary expenditure, cost, and revenue information required by the 418.18commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 418.19general assistance medical care expenditures; and418.20    (2) (c) Certified public expenditures made by Hennepin County Medical Center shall 418.21be considered Medicaid disproportionate share hospital payments. Hennepin County 418.22and Hennepin County Medical Center shall report by June 15, 2007, on payments made 418.23beginning July 1, 2005, or another date specified by the commissioner, that may qualify 418.24for reimbursement under federal law. Based on these reports, the commissioner shall 418.25apply for federal matching funds.418.26    (g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)418.27 is effective retroactively from July 1, 2005, or the earliest effective date approved by the 418.28Centers for Medicare and Medicaid Services.418.29    Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:418.30    Subd. 10. Separate billing by certified registered nurse anesthetists. Hospitals 418.31may must exclude certified registered nurse anesthetist costs from the operating payment 418.32rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must 418.33notify the commissioner in writing by October 1 of even-numbered years to exclude 418.34certified registered nurse anesthetist costs. The hospital must agree that all hospital 418.35claims for the cost and charges of certified registered nurse anesthetist services will not 419.1be included as part of the rates for inpatient services provided during the rate year. In 419.2this case, the operating payment rate shall be adjusted to exclude the cost of certified 419.3registered nurse anesthetist services.419.4For admissions occurring on or after July 1, 1991, and until the expiration date of 419.5section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided 419.6on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when 419.7the hospital's base year did not include the cost of these services. To be eligible, a hospital 419.8must notify the commissioner in writing by July 1, 1991, of the request and must comply 419.9with all other requirements of this subdivision.419.10    Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:419.11    Subd. 12. Rehabilitation hospitals and distinct parts.(a) Units of hospitals that 419.12are recognized as rehabilitation distinct parts by the Medicare program shall have separate 419.13provider numbers under the medical assistance program for rate establishment and billing 419.14purposes only. These units shall also have operating and property payment rates and the 419.15disproportionate population adjustment, if allowed by federal law, established separately 419.16from other inpatient hospital services. 419.17(b) The commissioner may shall establish separate relative values under subdivision 419.182 for rehabilitation hospitals and distinct parts as defined by the Medicare program. 419.19Effective for discharges on and after October 1, 2014, the commissioner, to the extent 419.20possible, shall replicate the existing payment rate methodology under the new diagnostic 419.21classification system. The result must be budget neutral, ensuring that the total aggregate 419.22payments under the new system are equal to the total aggregate payments made for the 419.23same number and types of services in the base year state fiscal year 2012.419.24(c) For individual hospitals that did not have separate medical assistance 419.25rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals 419.26shall provide the information needed to separate rehabilitation distinct part cost and claims 419.27data from other inpatient service data.419.28    Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:419.29    Subd. 14. Transfers.Except as provided in subdivisions 11 and 13,(a) Operating 419.30and property payment rates for admissions that result in transfers and transfers shall be 419.31established on a per day payment system. The per day payment rate shall be the sum of 419.32the adjusted operating and property payment rates determined under this subdivision and 419.33subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length 419.34of stay for the diagnostic category. Each admission that results in a transfer and each 420.1transfer is considered a separate admission to each hospital, and the total of the admission 420.2and transfer payments to each hospital must not exceed the total per admission payment 420.3that would otherwise be made to each hospital under this subdivision and subdivisions 420.42, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.420.5(b) Effective for transfers occurring on and after October 1, 2014, the commissioner 420.6shall establish payment rates for acute transfers that are based on Medicare methodologies.420.7    Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:420.8    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that 420.9are located within a Minnesota local trade area and that have more than 20 admissions in 420.10the base year or years shall have rates established using the same procedures and methods 420.11that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area 420.12means a county contiguous to Minnesota and located in a metropolitan statistical area as 420.13determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals 420.14that are not required by law to file information in a format necessary to establish rates shall 420.15have rates established based on the commissioner's estimates of the information. Relative 420.16values of the diagnostic categories shall not be redetermined under this subdivision until 420.17required by rule statute. Hospitals affected by this subdivision shall then be included in 420.18determining relative values. However, hospitals that have rates established based upon 420.19the commissioner's estimates of information shall not be included in determining relative 420.20values. This subdivision is effective for hospital fiscal years beginning on or after July 420.211, 1988. A hospital shall provide the information necessary to establish rates under this 420.22subdivision at least 90 days before the start of the hospital's fiscal year.420.23    Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:420.24    Subd. 18. Out-of-state hospitals outside local trade areas. Hospitals that are 420.25not located within Minnesota or a Minnesota local trade area shall have operating and 420.26property inpatient hospital rates established at the average of statewide and local trade area 420.27rates or, at the commissioner's discretion, at an amount negotiated by the commissioner. 420.28Relative values shall not include data from hospitals that have rates established under this 420.29subdivision. Payments, including third-party and recipient liability, established under this 420.30subdivision may not exceed the charges on a claim specific basis for inpatient services that 420.31are covered by medical assistance.420.32    Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:421.1    Subd. 25. Long-term hospital rates.(a) Long-term hospitals shall be paid a per 421.2diem rate established by the commissioner.421.3(b) For admissions occurring on or after April 1, 1995, a long-term hospital as 421.4designated by Medicare that does not have admissions in the base year shall have 421.5inpatient rates established at the average of other hospitals with the same designation. For 421.6subsequent rate-setting periods in which base years are updated, the hospital's base year 421.7shall be the first Medicare cost report filed with the long-term hospital designation and 421.8shall remain in effect until it falls within the same period as other hospitals.421.9    Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:421.10    Subd. 30. Payment rates for births. (a) For admissions occurring on or after 421.11October 1, 2009 October 1, 2014, the total operating and property payment rate, excluding 421.12disproportionate population adjustment, for the following diagnosis-related groups, as 421.13they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section without 421.14complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372 vaginal 421.15delivery with complicating diagnosis; and (3) 373 vaginal delivery without complicating 421.16diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater than $3,528.421.17(b) The rates described in this subdivision do not include newborn care.421.18(c) Payments to managed care and county-based purchasing plans under section 421.19256B.69
         , 
         256B.692, or 
         256L.12 shall be reduced for services provided on or after October 421.201, 2009, to reflect the adjustments in paragraph (a).421.21(d) Prior authorization shall not be required before reimbursement is paid for a 421.22cesarean section delivery.421.23    Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a 421.24subdivision to read:421.25    Subd. 24.Medicaid waiver requests and state plan amendments.Prior to 421.26submitting any Medicaid waiver request or Medicaid state plan amendment to the federal 421.27government for approval, the commissioner shall publish the text of the waiver request 421.28or state plan amendment, or a Web link to the text, in the State Register, and provide a 421.2930-day public comment period. The commissioner shall consider public comments when 421.30preparing the final waiver request or state plan amendment that is to be submitted to 421.31the federal government for approval. The commissioner shall also publish in the State 421.32Register notice of any federal decision related to the state request for approval, within 30 421.33days of the decision. This notice must describe any modifications to the state request that 421.34have been agreed to by the commissioner as a condition of receiving federal approval.422.1    Sec. 28. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to 422.2read:422.3    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic 422.4services, federally qualified health center services, nonprofit community health clinic 422.5services, and public health clinic services. Rural health clinic services and federally 422.6qualified health center services mean services defined in United States Code, title 42, 422.7section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 422.8health center services shall be made according to applicable federal law and regulation.422.9(b) A federally qualified health center that is beginning initial operation shall submit 422.10an estimate of budgeted costs and visits for the initial reporting period in the form and 422.11detail required by the commissioner. A federally qualified health center that is already in 422.12operation shall submit an initial report using actual costs and visits for the initial reporting 422.13period. Within 90 days of the end of its reporting period, a federally qualified health 422.14center shall submit, in the form and detail required by the commissioner, a report of 422.15its operations, including allowable costs actually incurred for the period and the actual 422.16number of visits for services furnished during the period, and other information required 422.17by the commissioner. Federally qualified health centers that file Medicare cost reports 422.18shall provide the commissioner with a copy of the most recent Medicare cost report filed 422.19with the Medicare program intermediary for the reporting year which support the costs 422.20claimed on their cost report to the state.422.21(c) In order to continue cost-based payment under the medical assistance program 422.22according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 422.23must apply for designation as an essential community provider within six months of final 422.24adoption of rules by the Department of Health according to section 
         62Q.19, subdivision 422.257
         . For those federally qualified health centers and rural health clinics that have applied 422.26for essential community provider status within the six-month time prescribed, medical 422.27assistance payments will continue to be made according to paragraphs (a) and (b) for the 422.28first three years after application. For federally qualified health centers and rural health 422.29clinics that either do not apply within the time specified above or who have had essential 422.30community provider status for three years, medical assistance payments for health services 422.31provided by these entities shall be according to the same rates and conditions applicable 422.32to the same service provided by health care providers that are not federally qualified 422.33health centers or rural health clinics.422.34(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 422.35qualified health center or a rural health clinic to make application for an essential 423.1community provider designation in order to have cost-based payments made according 423.2to paragraphs (a) and (b) no longer apply.423.3(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 423.4shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.423.5(f) Effective January 1, 2001, each federally qualified health center and rural health 423.6clinic may elect to be paid either under the prospective payment system established 423.7in United States Code, title 42, section 1396a(aa), or under an alternative payment 423.8methodology consistent with the requirements of United States Code, title 42, section 423.91396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 423.10alternative payment methodology shall be 100 percent of cost as determined according to 423.11Medicare cost principles.423.12(g) For purposes of this section, "nonprofit community clinic" is a clinic that:423.13(1) has nonprofit status as specified in chapter 317A;423.14(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);423.15(3) is established to provide health services to low-income population groups, 423.16uninsured, high-risk and special needs populations, underserved and other special needs 423.17populations;423.18(4) employs professional staff at least one-half of which are familiar with the 423.19cultural background of their clients;423.20(5) charges for services on a sliding fee scale designed to provide assistance to 423.21low-income clients based on current poverty income guidelines and family size; and423.22(6) does not restrict access or services because of a client's financial limitations or 423.23public assistance status and provides no-cost care as needed.423.24(h) Effective for services provided on and after January 1, 2015, all claims for 423.25payment of clinic services provided by federally qualified health centers and rural health 423.26clinics shall be submitted to both the commissioner and the managed care or county-based 423.27purchasing plan and shall be paid by the commissioner. The commissioner shall provide 423.28claims payment information to managed care plans and county-based purchasing plans 423.29on a regular basis.423.30(i) For clinic services provided prior to January 1, 2015, the commissioner shall 423.31require managed care and county-based purchasing plans to provide all necessary claims 423.32information to the commissioner and the commissioner shall calculate and pay monthly 423.33the proposed managed care supplemental payments to clinics, and clinics shall conduct a 423.34timely review of the payment calculation data in order to finalize all supplemental payments 423.35in accordance with federal law. Any issues arising from a clinic's review must be reported 423.36to the commissioner by January 1, 2017. Upon final agreement between the commissioner 424.1and a clinic on issues identified under this subdivision, and in accordance with United 424.2States Code, title 42, section 1396a(bb), no supplemental payments for managed care 424.3claims for services provided prior to January 1, 2015, shall be made after June 30, 2017. 424.4If the commissioner and clinics are unable to resolve issues under this subdivision, the 424.5parties shall submit the dispute to the arbitration process under section 14.57.424.6    Sec. 29. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 11, 424.7is amended to read:424.8    Subd. 11. Federal approval of the autism benefit.(a) The provisions of 424.9subdivision 9 this section shall apply to state plan services under title XIX of the Social 424.10Security Act when federal approval is granted under a 1915(i) waiver or other authority 424.11which allows children eligible for medical assistance through the TEFRA option under 424.12section 
         256B.055, subdivision 12, to qualify and includes children eligible for medical 424.13assistance in families over 150 percent of the federal poverty guidelines.424.14(b) The commissioner may use the federal authority for a Medicaid state plan 424.15amendment under Early Periodic Diagnosis Screening and Treatment (EPSDT), United 424.16States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any aspect or 424.17type of treatment covered in this section if new federal guidance is helpful in achieving 424.18one or more of the purposes of this section in a cost-effective manner. Notwithstanding 424.19subdivisions 2 and 3, any treatment services submitted for federal approval under EPSDT 424.20shall include appropriate medical criteria to qualify for the service and shall cover children 424.21through age 20.424.22    Sec. 30. Minnesota Statutes 2012, section 256B.199, is amended to read:424.23256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.424.24    (a) Effective July 1, 2007, The commissioner shall apply for federal matching 424.25funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the 424.26commissioner shall apply for matching funds for expenditures in paragraph (e).424.27    (b) The commissioner shall apply for federal matching funds for certified public 424.28expenditures as follows:424.29    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, and 424.30Regions Hospital, the University of Minnesota, and Fairview-University Medical Center424.31 shall report quarterly to the commissioner beginning June 1, 2007, payments made during 424.32the second previous quarter that may qualify for reimbursement under federal law;425.1     (2) based on these reports, the commissioner shall apply for federal matching 425.2funds. These funds are appropriated to the commissioner for the payments under section 425.3256.969, subdivision 27
         ; and425.4     (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 425.5the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 425.6hospital payment money expected to be available in the current federal fiscal year.425.7    (c) The commissioner shall apply for federal matching funds for general assistance 425.8medical care expenditures as follows:425.9    (1) for hospital services occurring on or after July 1, 2007, general assistance medical 425.10care expenditures for fee-for-service inpatient and outpatient hospital payments made by 425.11the department shall be used to apply for federal matching funds, except as limited below:425.12    (i) only those general assistance medical care expenditures made to an individual 425.13hospital that would not cause the hospital to exceed its individual hospital limits under 425.14section 1923 of the Social Security Act may be considered; and425.15    (ii) general assistance medical care expenditures may be considered only to the extent 425.16of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and425.17    (2) all hospitals must provide any necessary expenditure, cost, and revenue 425.18information required by the commissioner as necessary for purposes of obtaining federal 425.19Medicaid matching funds for general assistance medical care expenditures.425.20(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner 425.21shall apply for additional federal matching funds available as disproportionate share 425.22hospital payments under the American Recovery and Reinvestment Act of 2009. These 425.23funds shall be made available as the state share of payments under section 
         256.969, 425.24subdivision 28
         . The entities required to report certified public expenditures under 425.25paragraph (b), clause (1), shall report additional certified public expenditures as necessary 425.26under this paragraph.425.27(e) (d) For services provided on or after September 1, 2011, the commissioner shall 425.28apply for additional federal matching funds available as disproportionate share hospital 425.29payments under the MinnesotaCare program according to the requirements and conditions 425.30of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate 425.31share hospital for purposes of this paragraph, if the hospital does not qualify for a payment 425.32under section 
         256.969, subdivision 9, paragraph (b).425.33    Sec. 31. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34, 425.34is amended to read:426.1    Subd. 34. Supplemental recovery program. The commissioner shall conduct a 426.2supplemental recovery program for third-party liabilities identified through coordination 426.3of benefits not recovered by managed care plans and county-based purchasing plans for 426.4state public health programs. Any third-party liability identified through coordination of 426.5benefits and recovered by the commissioner more than six eight months after the date 426.6a managed care plan or county-based purchasing plan receives adjudicates a health 426.7care claim shall be retained by the commissioner and deposited in the general fund. 426.8The commissioner shall establish a mechanism, including a reconciliation process, for 426.9managed care plans and county-based purchasing plans to coordinate third-party liability 426.10collections efforts resulting from coordination of benefits under this subdivision with the 426.11commissioner to ensure there is no duplication of efforts. The coordination mechanism 426.12must be consistent with the reporting requirements in subdivision 9c. The commissioner 426.13shall share accurate and timely third-party liability data with managed care plans and 426.14county-based purchasing plans.426.15    Sec. 32. [256L.30] LOW-INCOME UNINSURED CHILDREN'S HEALTH 426.16PROGRAM.426.17    Subdivision 1.General.(a) Effective January 1, 2016, the commissioner shall 426.18establish a program that provides coverage to low-income uninsured children who are not 426.19eligible for medical assistance or MinnesotaCare.426.20(b) A child is eligible for the program under this section if the child is under the age 426.21of 21, and meets all other MinnesotaCare eligibility requirements under this chapter, 426.22except as otherwise specified in this section, and:426.23(1) has been determined eligible for the emergency medical assistance program 426.24under section 256B.06, subdivision 4, paragraph (e) or (f); or 426.25(2) the child's treating health care provider certifies that the child has an emergency 426.26medical condition as defined in United States Code, title 42, section 1396b(v), that is 426.27likely to lead to the child being admitted to a hospital or emergency department unless 426.28intervening outpatient health care treatment is provided.426.29(c) Eligibility continues under this section for as long as the child continues to have 426.30the underlying medical condition that gave rise to the initial emergency medical condition.426.31(d) Children eligible for the program under this subdivision are exempt from the 426.32income eligibility limits under section 256L.04 and section 256L.07, and remain eligible 426.33for the program so long as their family income is equal to or less than 275 percent of federal 426.34poverty guidelines, and the citizenship requirements under section 256L.04, subdivision 10.427.1(e) Children who are eligible for medical assistance under chapter 256B, or 427.2MinnesotaCare under this chapter, are not eligible for the program under this section.427.3(f) All application, navigation services, eligibility determination, enrollment, 427.4disenrollment, and premium requirements and procedures of the MinnesotaCare program 427.5apply to this program, except as otherwise specified in this section.427.6    Subd. 2.Covered services.(a) The program covers the services described under 427.7section 256L.03, except as otherwise specified in this subdivision.427.8(b) The program does not cover services for an emergency medical condition that are 427.9covered by the emergency medical assistance program under section 256B.06, subdivision 427.104, paragraphs (e) to (h). The commissioner shall coordinate the program with the federally 427.11subsidized emergency medical assistance program with the goal of making transitions 427.12between the programs seamless and invisible to the enrollee to the extent possible.427.13(c) For children who are eligible under subdivision 1, the program covers nursing 427.14facility services described under section 144.0724, subdivision 11, and home and 427.15community-based services described in paragraph (d), if the child's family income is equal 427.16to or less than the medical assistance income eligibility standards described in section 427.17256B.056, subdivision 4, or meets the excess income standards described in section 427.18256B.056, subdivisions 5 and 5c. All requirements of the medical assistance program 427.19under chapter 256B relating to these services apply to the program under this section.427.20(d) For purposes of this section, home and community-based services include:427.21(1) home and community-based waivered services for persons with developmental 427.22disabilities, including consumer-directed community supports under section 256B.092;427.23(2) waivered services under community alternatives for disabled individuals, 427.24including consumer-directed community supports under section 256B.49;427.25(3) community alternative care waivered services, including consumer-directed 427.26community supports under section 256B.49;427.27(4) brain injury waivered services, including consumer-directed community supports 427.28under section 256B.49;427.29(5) home and community-based waivered services for the elderly under section 427.30256B.0915;427.31(6) nursing services and home health services under section 256B.0625, subdivision 427.326a;427.33(7) personal care services and qualified professional supervision of personal care 427.34services under section 256B.0625, subdivisions 6a and 19a;427.35(8) private duty nursing services under section 256B.0625, subdivision 7; and427.36(9) community first services and supports under section 256B.85.428.1    Subd. 3.Premiums and cost-sharing.For children who are eligible under 428.2subdivision 1, the premium and cost-sharing provisions of the MinnesotaCare program 428.3apply.428.4    Subd. 4.Service delivery.(a) The commissioner may contract with managed care 428.5plans, county-based purchasing plans, provider networks, nonprofit coverage programs, 428.6counties, or health care delivery systems established under section 256B.0755 or 428.7256B.0756 to administer the program authorized under this section in order to control the 428.8costs of the program through care coordination, limited provider networks, fee discounts, 428.9and other methods. The commissioner may delegate to a contractor the responsibility 428.10to perform case reviews and authorize payment. The commissioner may contract on 428.11a capitated or fixed budget basis under which the contractor shall be responsible for 428.12providing the covered services to eligible children within the limits of the capitation 428.13or budgeted amount. The commissioner may also contract using gain-sharing and 428.14risk-sharing methods authorized for demonstration projects established under sections 428.15256B.0755 and 256B.0756. If the commissioner contracts with a contractor under 428.16this subdivision, the commissioner may separate nursing facility services, home and 428.17community-based services, and pharmacy services from other covered services and may 428.18provide payment for these services under the commissioner's fee-for-service payment 428.19system instead of payment to the contracted entity.428.20(b) If no qualified contractors are available and willing to contract on alternative 428.21payment terms in a geographic area of the state, the commissioner shall administer the 428.22program as a fee-for-service program in that area, but may establish additional utilization 428.23review and care management programs and requirements in order to control the costs 428.24of the program.428.25(c) The commissioner shall ensure that an eligible child is provided the opportunity 428.26to receive covered services from any essential community provider, as defined in section 428.2762Q.19, and that the terms of participation of the essential community provider are in 428.28conformance with the requirements of section 62Q.19.428.29    Sec. 33. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to 428.30read:428.31EFFECTIVE DATE.This section is effective January July  1, 2014.428.32    Sec. 34. FEDERAL AUTHORITY; EMERGENCY MEDICAL ASSISTANCE 428.33PROGRAM.429.1The commissioner shall seek federal authority to make changes to the emergency 429.2medical assistance program established under Minnesota Statutes, section 256B.06, 429.3subdivision 4, paragraphs (e) to (h), to allow coverage and payment for cost-effective 429.4community-based and outpatient services as an alternative to hospital inpatient and 429.5emergency department services in order to reduce the total cost of care.429.6EFFECTIVE DATE.This section is effective the day following final enactment.429.7    Sec. 35. ORAL HEALTH DELIVERY AND REIMBURSEMENT SYSTEM.429.8(a) The commissioner of human services, in consultation with the commissioner of 429.9health, shall convene a work group to develop a new delivery and reimbursement system 429.10for oral health and dental services that are provided to enrollees of the state public health 429.11care programs. The new system must ensure cost-effective delivery and an increase in 429.12access to services.429.13(b) The commissioner shall consult with dental providers enrolled in the state public 429.14health programs, including providers who serve substantial numbers of low-income 429.15and uninsured patients and are currently receiving critical access dental payments; 429.16private practicing dentists; nonprofit community clinics; managed care and county-based 429.17purchasing plans; and health plan companies that provide either directly or through 429.18contracts with providers dental services to enrollees of state public health care programs.429.19(c) The commissioner shall submit a report containing the proposed delivery and 429.20reimbursement system, including draft legislation to the chairs and ranking minority 429.21members of the legislative committees and divisions with jurisdiction over health and 429.22human services policy and finance by January 15, 2015.429.23    Sec. 36.  REPEALER.429.24Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 429.2521, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed effective October 429.261, 2014.429.27ARTICLE 20429.28HEALTH DEPARTMENT429.29    Section 1. Minnesota Statutes 2012, section 144.1501, subdivision 1, is amended to read:429.30    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions 429.31apply.429.32(b) "Dentist" means an individual who is licensed to practice dentistry.430.1(c) "Designated rural area" means an area defined as a small rural area or 430.2isolated rural area according to the four category classifications of the Rural Urban 430.3Commuting Area system developed for the United States Health Resources and Services 430.4Administration a city or township that is:430.5(1) outside the seven-county metropolitan area as defined in section 473.121, 430.6subdivision 2; and430.7(2) has a population under 15,000.430.8(d) "Emergency circumstances" means those conditions that make it impossible for 430.9the participant to fulfill the service commitment, including death, total and permanent 430.10disability, or temporary disability lasting more than two years.430.11(e) "Medical resident" means an individual participating in a medical residency in 430.12family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.430.13(f) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse 430.14anesthetist, advanced clinical nurse specialist, or physician assistant.430.15(g) "Nurse" means an individual who has completed training and received all 430.16licensing or certification necessary to perform duties as a licensed practical nurse or 430.17registered nurse.430.18(h) "Nurse-midwife" means a registered nurse who has graduated from a program of 430.19study designed to prepare registered nurses for advanced practice as nurse-midwives.430.20(i) "Nurse practitioner" means a registered nurse who has graduated from a program 430.21of study designed to prepare registered nurses for advanced practice as nurse practitioners.430.22(j) "Pharmacist" means an individual with a valid license issued under chapter 151.430.23(k) "Physician" means an individual who is licensed to practice medicine in the areas 430.24of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.430.25(l) "Physician assistant" means a person licensed under chapter 147A.430.26(m) "Qualified educational loan" means a government, commercial, or foundation 430.27loan for actual costs paid for tuition, reasonable education expenses, and reasonable living 430.28expenses related to the graduate or undergraduate education of a health care professional.430.29(n) "Underserved urban community" means a Minnesota urban area or population 430.30included in the list of designated primary medical care health professional shortage areas 430.31(HPSAs), medically underserved areas (MUAs), or medically underserved populations 430.32(MUPs) maintained and updated by the United States Department of Health and Human 430.33Services.430.34    Sec. 2. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:431.1    Subdivision 1. Restricted construction or modification. (a) The following 431.2construction or modification may not be commenced:431.3(1) any erection, building, alteration, reconstruction, modernization, improvement, 431.4extension, lease, or other acquisition by or on behalf of a hospital that increases the bed 431.5capacity of a hospital, relocates hospital beds from one physical facility, complex, or site 431.6to another, or otherwise results in an increase or redistribution of hospital beds within 431.7the state; and431.8(2) the establishment of a new hospital.431.9(b) This section does not apply to:431.10(1) construction or relocation within a county by a hospital, clinic, or other health 431.11care facility that is a national referral center engaged in substantial programs of patient 431.12care, medical research, and medical education meeting state and national needs that 431.13receives more than 40 percent of its patients from outside the state of Minnesota;431.14(2) a project for construction or modification for which a health care facility held 431.15an approved certificate of need on May 1, 1984, regardless of the date of expiration of 431.16the certificate;431.17(3) a project for which a certificate of need was denied before July 1, 1990, if a 431.18timely appeal results in an order reversing the denial;431.19(4) a project exempted from certificate of need requirements by Laws 1981, chapter 431.20200, section 2;431.21(5) a project involving consolidation of pediatric specialty hospital services within 431.22the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the 431.23number of pediatric specialty hospital beds among the hospitals being consolidated;431.24(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds 431.25to an existing licensed hospital that will allow for the reconstruction of a new philanthropic, 431.26pediatric-orthopedic hospital on an existing site and that will not result in a net increase in 431.27the number of hospital beds. Upon completion of the reconstruction, the licenses of both 431.28hospitals must be reinstated at the capacity that existed on each site before the relocation;431.29(7) the relocation or redistribution of hospital beds within a hospital building or 431.30identifiable complex of buildings provided the relocation or redistribution does not result 431.31in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds 431.32from one physical site or complex to another; or (iii) redistribution of hospital beds within 431.33the state or a region of the state;431.34(8) relocation or redistribution of hospital beds within a hospital corporate system 431.35that involves the transfer of beds from a closed facility site or complex to an existing site 431.36or complex provided that: (i) no more than 50 percent of the capacity of the closed facility 432.1is transferred; (ii) the capacity of the site or complex to which the beds are transferred 432.2does not increase by more than 50 percent; (iii) the beds are not transferred outside of a 432.3federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or 432.4redistribution does not involve the construction of a new hospital building;432.5(9) a construction project involving up to 35 new beds in a psychiatric hospital in 432.6Rice County that primarily serves adolescents and that receives more than 70 percent of its 432.7patients from outside the state of Minnesota;432.8(10) a project to replace a hospital or hospitals with a combined licensed capacity 432.9of 130 beds or less if: (i) the new hospital site is located within five miles of the current 432.10site; and (ii) the total licensed capacity of the replacement hospital, either at the time of 432.11construction of the initial building or as the result of future expansion, will not exceed 70 432.12licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;432.13(11) the relocation of licensed hospital beds from an existing state facility operated 432.14by the commissioner of human services to a new or existing facility, building, or complex 432.15operated by the commissioner of human services; from one regional treatment center 432.16site to another; or from one building or site to a new or existing building or site on the 432.17same campus;432.18(12) the construction or relocation of hospital beds operated by a hospital having a 432.19statutory obligation to provide hospital and medical services for the indigent that does not 432.20result in a net increase in the number of hospital beds, notwithstanding section 
         144.552, 27 432.21beds, of which 12 serve mental health needs, may be transferred from Hennepin County 432.22Medical Center to Regions Hospital under this clause;432.23(13) a construction project involving the addition of up to 31 new beds in an existing 432.24nonfederal hospital in Beltrami County;432.25(14) a construction project involving the addition of up to eight new beds in an 432.26existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;432.27(15) a construction project involving the addition of 20 new hospital beds 432.28used for rehabilitation services in an existing hospital in Carver County serving the 432.29southwest suburban metropolitan area. Beds constructed under this clause shall not be 432.30eligible for reimbursement under medical assistance, general assistance medical care, 432.31or MinnesotaCare;432.32(16) a project for the construction or relocation of up to 20 hospital beds for the 432.33operation of up to two psychiatric facilities or units for children provided that the operation 432.34of the facilities or units have received the approval of the commissioner of human services;432.35(17) a project involving the addition of 14 new hospital beds to be used for 432.36rehabilitation services in an existing hospital in Itasca County;433.1(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin 433.2County that closed 20 rehabilitation beds in 2002, provided that the beds are used only 433.3for rehabilitation in the hospital's current rehabilitation building. If the beds are used for 433.4another purpose or moved to another location, the hospital's licensed capacity is reduced 433.5by 20 beds;433.6(19) a critical access hospital established under section 
         144.1483, clause (9), and 433.7section 1820 of the federal Social Security Act, United States Code, title 42, section 433.81395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public 433.9Law 105-33, to the extent that the critical access hospital does not seek to exceed the 433.10maximum number of beds permitted such hospital under federal law;433.11(20) notwithstanding section 
         144.552, a project for the construction of a new hospital 433.12in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:433.13(i) the project, including each hospital or health system that will own or control the 433.14entity that will hold the new hospital license, is approved by a resolution of the Maple 433.15Grove City Council as of March 1, 2006;433.16(ii) the entity that will hold the new hospital license will be owned or controlled by 433.17one or more not-for-profit hospitals or health systems that have previously submitted a 433.18plan or plans for a project in Maple Grove as required under section 
         144.552, and the 433.19plan or plans have been found to be in the public interest by the commissioner of health 433.20as of April 1, 2005;433.21(iii) the new hospital's initial inpatient services must include, but are not limited 433.22to, medical and surgical services, obstetrical and gynecological services, intensive 433.23care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics, 433.24behavioral health services, and emergency room services;433.25(iv) the new hospital:433.26(A) will have the ability to provide and staff sufficient new beds to meet the growing 433.27needs of the Maple Grove service area and the surrounding communities currently being 433.28served by the hospital or health system that will own or control the entity that will hold 433.29the new hospital license;433.30(B) will provide uncompensated care;433.31(C) will provide mental health services, including inpatient beds;433.32(D) will be a site for workforce development for a broad spectrum of 433.33health-care-related occupations and have a commitment to providing clinical training 433.34programs for physicians and other health care providers;433.35(E) will demonstrate a commitment to quality care and patient safety;433.36(F) will have an electronic medical records system, including physician order entry;434.1(G) will provide a broad range of senior services;434.2(H) will provide emergency medical services that will coordinate care with regional 434.3providers of trauma services and licensed emergency ambulance services in order to 434.4enhance the continuity of care for emergency medical patients; and434.5(I) will be completed by December 31, 2009, unless delayed by circumstances 434.6beyond the control of the entity holding the new hospital license; and434.7(v) as of 30 days following submission of a written plan, the commissioner of health 434.8has not determined that the hospitals or health systems that will own or control the entity 434.9that will hold the new hospital license are unable to meet the criteria of this clause;434.10(21) a project approved under section 
         144.553;434.11(22) a project for the construction of a hospital with up to 25 beds in Cass County 434.12within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's 434.13license holder is approved by the Cass County Board;434.14(23) a project for an acute care hospital in Fergus Falls that will increase the bed 434.15capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16 434.16and closing a separately licensed 13-bed skilled nursing facility; or434.17(24) notwithstanding section 
         144.552, a project for the construction and expansion 434.18of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for 434.19patients who are under 21 years of age on the date of admission. The commissioner 434.20conducted a public interest review of the mental health needs of Minnesota and the Twin 434.21Cities metropolitan area in 2008. No further public interest review shall be conducted for 434.22the construction or expansion project under this clause; or434.23(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if 434.24the commissioner finds the project is in the public interest after the public interest review 434.25conducted under section 144.552 is complete.434.26EFFECTIVE DATE.This section is effective the day following final enactment.434.27    Sec. 3. [144.9513] HEALTHY HOUSING GRANTS.434.28    Subdivision 1.Definitions.For purposes of this section and sections 144.9501 to 434.29144.9512, the following terms have the meanings given.434.30(a) "Housing" means a room or group of rooms located within a dwelling forming 434.31a single habitable unit with facilities used or intended to be used for living, sleeping, 434.32cooking, and eating.434.33(b) "Healthy housing" means housing that is sited, designed, built, renovated, and 434.34maintained in ways that supports the health of residents.435.1(c) "Housing-based health threat" means a chemical, biologic, or physical agent in 435.2the immediate housing environment which constitutes a potential or actual hazard to 435.3human health at acute or chronic exposure levels.435.4(d) "Primary prevention" means preventing exposure to housing-based health threats 435.5before seeing clinical symptoms or a diagnosis.435.6(e) "Secondary prevention" means intervention to mitigate health effects on people 435.7with housing-based health threats.435.8    Subd. 2.Grants; administration.Grant applicants shall submit applications to 435.9the commissioner as directed by a request for proposals. Grants must be competitively 435.10awarded and recipients of a grant under this section must prepare and submit a quarterly 435.11progress report to the commissioner beginning three months after receipt of the grant. The 435.12commissioner shall provide technical assistance and program support as needed to ensure 435.13that housing-based health threats are effectively identified, mitigated, and evaluated by 435.14grantees.435.15    Subd. 3.Education and training grant; eligible activities.(a) Within the limits of 435.16available appropriations, the commissioner shall make grants to nonprofit organizations, 435.17community health boards, and community action agencies under section 256E.31 with 435.18expertise in providing outreach, education, and training on healthy homes subjects and in 435.19providing comprehensive healthy homes assessments and interventions to provide healthy 435.20housing education, training, and technical assistance services for persons engaged in 435.21addressing housing-based health threats and other individuals impacted by housing-based 435.22health threats. 435.23(b) The grantee may conduct the following activities: 435.24(1) implement and maintain primary prevention programs to reduce housing-based 435.25health threats that include the following:435.26(i) providing education materials to the general public and to property owners, 435.27contractors, code officials, health care providers, public health professionals, health 435.28educators, nonprofit organizations, and other persons and organizations engaged in 435.29housing and health issues; 435.30(ii) promoting awareness of community, legal, and housing resources; and 435.31(iii) promoting the use of hazard reduction measures in new housing construction 435.32and housing rehabilitation programs;435.33(2) provide training on identifying and addressing housing-based health threats;  435.34(3) provide technical assistance on the implementation of mitigation measures;435.35(4) promote adoption of evidence-based best practices for mitigation of 435.36housing-based health threats; or 436.1(5) develop work practices for addressing specific housing-based health threats.436.2    Subd. 4.Healthy homes implementation grant; eligible activities.Within the 436.3limits of available appropriations, the commissioner shall make grants to nonprofit 436.4organizations, community health boards, and community action agencies under section 436.5256E.31 to support implementation of healthy housing programs in local jurisdictions for 436.6any of the following activities:436.7(1) identify, characterize, and mitigate hazards in housing that contribute to adverse 436.8health outcomes;436.9(2) ensure screening services and other secondary prevention measures are provided 436.10to populations at high risk for housing-based health threats;436.11(3) promote compliance with Department of Health guidelines and other best 436.12practices, as identified by the commissioner, for preventing or reducing housing-based 436.13health threats;436.14(4) establish local or regional collaborative groups to ensure that  resources for 436.15addressing housing-based health threats are coordinated; or 436.16(5) develop model programs for addressing housing-based health threats.436.17    Sec. 4. [144A.484] INTEGRATED LICENSURE; HOME AND 436.18COMMUNITY-BASED SERVICES DESIGNATION.436.19    Subdivision 1.Integrated licensing established.(a) From January 1, 2014, to 436.20June 30, 2015, the commissioner of health shall enforce the home and community-based 436.21services standards under chapter 245D for those providers who also have a home care 436.22license pursuant to this chapter as required under Laws 2013, chapter 108, article 8, section 436.2360, and article 11, section 31. During this period, the commissioner shall provide technical 436.24assistance to achieve and maintain compliance with applicable law or rules governing the 436.25provision of home and community-based services, including complying with the service 436.26recipient rights notice in subdivision 4, clause (4). If during the survey, the commissioner 436.27finds that the licensee has failed to achieve compliance with an applicable law or rule 436.28under chapter 245D and this failure does not imminently endanger the health, safety, or 436.29rights of the persons served by the program, the commissioner may issue a licensing 436.30survey report with recommendations for achieving and maintaining compliance.436.31(b) Beginning July 1, 2015, a home care provider applicant or license holder may 436.32apply to the commissioner of health for a home and community-based services designation 436.33for the provision of basic support services identified under section 245D.03, subdivision 1, 436.34paragraph (b). The designation allows the license holder to provide basic support services 437.1that would otherwise require licensure under chapter 245D, under the license holder's 437.2home care license governed by sections 144A.43 to 144A.481.437.3    Subd. 2.Application for home and community-based services designation.An 437.4application for a home and community-based services designation must be made on the 437.5forms and in the manner prescribed by the commissioner. The commissioner shall provide 437.6the applicant with instruction for completing the application and provide information 437.7about the requirements of other state agencies that affect the applicant. Application for 437.8the home and community-based services designation is subject to the requirements under 437.9section 144A.473.437.10    Subd. 3.Home and community-based services designation fees.A home care 437.11provider applicant or licensee applying for the home and community-based services 437.12designation or renewal of a home and community-based services designation must submit 437.13a fee in the amount specified in subdivision 8.437.14    Subd. 4.Applicability of home and community-based services requirements.A 437.15home care provider with a home and community-based services designation must comply 437.16with the requirements for home care services governed by this chapter. For the provision 437.17of basic support services, the home care provider must also comply with the following 437.18home and community-based services licensing requirements:437.19(1) service planning and delivery requirements in section 245D.07;437.20(2) protection standards in section 245D.06;437.21(3) emergency use of manual restraints in section 245D.061; and437.22(4) protection-related rights in section 245D.04, subdivision 3, paragraph (a), clauses 437.23(5), (7), (8), (12), and (13), and paragraph (b).437.24A home care provider with the integrated license-home and community-based services 437.25designation may utilize a bill of rights which incorporates the service recipient rights in 437.26section 245D.04, subdivision 3, paragraph (a), clauses (5), (7), (8), (12), and (13), and 437.27paragraph (b) with the home care bill of rights in section 144A.44.437.28    Subd. 5.Monitoring and enforcement.(a) The commissioner shall monitor for 437.29compliance with the home and community-based services requirements identified in 437.30subdivision 4, in accordance with this section and any agreements by the commissioners 437.31of health and human services.437.32(b) The commissioner shall enforce compliance with applicable home and 437.33community-based services licensing requirements as follows:437.34(1) the commissioner may deny a home and community-based services designation 437.35in accordance with section 144A.473 or 144A.475; and438.1(2) if the commissioner finds that the applicant or license holder has failed to comply 438.2with the applicable home and community-based services designation requirements, the 438.3commissioner may issue:438.4(i) a correction order in accordance with section 144A.474;438.5(ii) an order of conditional license in accordance with section 144A.475;438.6(iii) a sanction in accordance with section 144A.475; or438.7(iv) any combination of clauses (i) to (iii).438.8    Subd. 6.Appeals.A home care provider applicant that has been denied a temporary 438.9license will also be denied their application for the home and community-based services 438.10designation. The applicant may request reconsideration in accordance with section 438.11144A.473, subdivision 3. A licensed home care provider whose application for a home 438.12and community-based services designation has been denied or whose designation has been 438.13suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a 438.14home and community-based services designation in accordance with section 144A.475. 438.15A license holder may request reconsideration of a correction order in accordance with 438.16section 144A.474, subdivision 12.438.17    Subd. 7.Agreements.The commissioners of health and human services shall enter 438.18into any agreements necessary to implement this section.438.19    Subd. 8.Fees; home and community-based services designation.(a) The 438.20initial fee for a home and community-based services designation is $155. A home care 438.21provider renewing the home and community-based services designation must pay an 438.22annual nonrefundable fee, in addition to the annual home care license fee, according to the 438.23following schedule and based on revenues from the home and community-based services 438.24that require licensure under chapter 245D during the calendar year immediately preceding 438.25the year in which the license fee is paid:

438.26438.27Provider Annual Revenue from HCBSHCBS Designation438.28greater than $1,500,000$320438.29greater than $1,275,000 and no more than $1,500,000$300438.30greater than $1,100,000 and no more than $1,275,000$280438.31greater than $950,000 and no more than $1,100,000$260438.32greater than $850,000 and no more than $950,000$240438.33greater than $750,000 and no more than $850,000$220438.34greater than $650,000 and no more than $750,000$200438.35greater than $550,000 and no more than $650,000$180438.36greater than $450,000 and no more than $550,000$160438.37greater than $350,000 and no more than $450,000$140438.38greater than $250,000 and no more than $350,000$120439.1greater than $100,000 and no more than $250,000$100439.2greater than $50,000 and no more than $100,000$80439.3greater than $25,000 and no more than $50,000$60439.4no more than $25,000$40

439.5(b) Fees and penalties collected under this section shall be deposited in the state 439.6treasury and credited to the state government special revenue fund.439.7EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8, 439.8are effective July 1, 2015.439.9    Sec. 5. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is 439.10amended to read:439.11    Subd. 2. Duties of director. The director of child sex trafficking prevention is 439.12responsible for the following:439.13    (1) developing and providing comprehensive training on sexual exploitation of 439.14youth for social service professionals, medical professionals, public health workers, and 439.15criminal justice professionals;439.16    (2) collecting, organizing, maintaining, and disseminating information on sexual 439.17exploitation and services across the state, including maintaining a list of resources on the 439.18Department of Health Web site;439.19    (3) monitoring and applying for federal funding for antitrafficking efforts that may 439.20benefit victims in the state;439.21    (4) managing grant programs established under sections 
         145.4716 to 
         145.4718;439.22    (5) managing the request for proposals for grants for comprehensive services, 439.23including trauma-informed, culturally specific services;439.24    (6) identifying best practices in serving sexually exploited youth, as defined in 439.25section 
         260C.007, subdivision 31;439.26    (6)(7) providing oversight of and technical support to regional navigators pursuant 439.27to section 
         145.4717;439.28    (7)(8) conducting a comprehensive evaluation of the statewide program for safe 439.29harbor of sexually exploited youth; and439.30    (8)(9) developing a policy consistent with the requirements of chapter 13 for sharing 439.31data related to sexually exploited youth, as defined in section 
         260C.007, subdivision 31, 439.32among regional navigators and community-based advocates.439.33    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is 439.34amended to read:440.1    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for 440.2Medicare and Medicaid Services determines that a provider is designated "high-risk," the 440.3commissioner may withhold payment from providers within that category upon initial 440.4enrollment for a 90-day period. The withholding for each provider must begin on the date 440.5of the first submission of a claim.440.6(b) An enrolled provider that is also licensed by the commissioner under chapter 440.7245A, or is also licensed as a home-care provider by the Department of Health under 440.8chapter 144A and has a home and community-based services designation on the home care 440.9license under section 144A.484,  must designate an individual as the entity's compliance 440.10officer. The compliance officer must:440.11(1) develop policies and procedures to assure adherence to medical assistance laws 440.12and regulations and to prevent inappropriate claims submissions;440.13(2) train the employees of the provider entity, and any agents or subcontractors of 440.14the provider entity including billers, on the policies and procedures under clause (1);440.15(3) respond to allegations of improper conduct related to the provision or billing of 440.16medical assistance services, and implement action to remediate any resulting problems;440.17(4) use evaluation techniques to monitor compliance with medical assistance laws 440.18and regulations;440.19(5) promptly report to the commissioner any identified violations of medical 440.20assistance laws or regulations; and440.21    (6) within 60 days of discovery by the provider of a medical assistance 440.22reimbursement overpayment, report the overpayment to the commissioner and make 440.23arrangements with the commissioner for the commissioner's recovery of the overpayment.440.24The commissioner may require, as a condition of enrollment in medical assistance, that a 440.25provider within a particular industry sector or category establish a compliance program that 440.26contains the core elements established by the Centers for Medicare and Medicaid Services.440.27(c) The commissioner may revoke the enrollment of an ordering or rendering 440.28provider for a period of not more than one year, if the provider fails to maintain and, upon 440.29request from the commissioner, provide access to documentation relating to written orders 440.30or requests for payment for durable medical equipment, certifications for home health 440.31services, or referrals for other items or services written or ordered by such provider, when 440.32the commissioner has identified a pattern of a lack of documentation. A pattern means a 440.33failure to maintain documentation or provide access to documentation on more than one 440.34occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a 440.35provider under the provisions of section 
         256B.064.441.1(d) The commissioner shall terminate or deny the enrollment of any individual or 441.2entity if the individual or entity has been terminated from participation in Medicare or 441.3under the Medicaid program or Children's Health Insurance Program of any other state.441.4(e) As a condition of enrollment in medical assistance, the commissioner shall 441.5require that a provider designated "moderate" or "high-risk" by the Centers for Medicare 441.6and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 441.7Services, its agents, or its designated contractors and the state agency, its agents, or its 441.8designated contractors to conduct unannounced on-site inspections of any provider location. 441.9The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 441.10list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 441.11and standards used to designate Medicare providers in Code of Federal Regulations, title 441.1242, section 
         424.518. The list and criteria are not subject to the requirements of chapter 14. 441.13The commissioner's designations are not subject to administrative appeal.441.14(f) As a condition of enrollment in medical assistance, the commissioner shall 441.15require that a high-risk provider, or a person with a direct or indirect ownership interest in 441.16the provider of five percent or higher, consent to criminal background checks, including 441.17fingerprinting, when required to do so under state law or by a determination by the 441.18commissioner or the Centers for Medicare and Medicaid Services that a provider is 441.19designated high-risk for fraud, waste, or abuse.441.20(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical 441.21equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in 441.22Minnesota and receiving Medicaid funds must purchase a surety bond that is annually 441.23renewed and designates the Minnesota Department of Human Services as the obligee, and 441.24must be submitted in a form approved by the commissioner.441.25(2) At the time of initial enrollment or reenrollment, the provider agency must 441.26purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 441.27in the previous calendar year is up to and including $300,000, the provider agency must 441.28purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 441.29in the previous calendar year is over $300,000, the provider agency must purchase a 441.30performance bond of $100,000. The performance bond must allow for recovery of costs 441.31and fees in pursuing a claim on the bond.441.32(h) The Department of Human Services may require a provider to purchase a 441.33performance surety bond as a condition of initial enrollment, reenrollment, reinstatement, 441.34or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the 441.35department determines there is significant evidence of or potential for fraud and abuse by 441.36the provider, or (3) the provider or category of providers is designated high-risk pursuant 442.1to paragraph (a) and as per Code of Federal Regulations, title 42, section 
         455.450. The 442.2performance bond must be in an amount of $100,000 or ten percent of the provider's 442.3payments from Medicaid during the immediately preceding 12 months, whichever is 442.4greater. The performance bond must name the Department of Human Services as an 442.5obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.442.6    Sec. 7. HEALTH CARE GRANTS FOR THE UNINSURED.442.7    Subdivision 1.Dental providers.(a) A dental provider is eligible for a grant under 442.8this section if the provider is:442.9(1) a nonprofit organization not affiliated with a hospital or medical group that 442.10offers free or reduced-cost oral health care to low-income patients with incomes below 442.11200 percent of the federal poverty guideline who do not have insurance coverage for 442.12oral health care services;442.13(2) eligible for critical access dental provider payments under Minnesota Statutes, 442.14section 256B.76, subdivision 4; and442.15(3) more than 80 percent of dental provider's patient encounters per year are with 442.16patients who are uninsured or covered by medical assistance or MinnesotaCare.442.17(b) Grants shall be distributed by the commissioner of health to each eligible 442.18provider based on the proportion of that provider's number of low-income uninsured 442.19patients served in the reporting year to the total number of low-income uninsured patients 442.20served by all eligible providers, except that no single eligible provider shall receive less 442.21than two percent or more than 30 percent of the total appropriation provided under this 442.22subdivision. If the number of eligible providers is such that the minimum of two percent 442.23cannot be provided to each eligible provider, the commissioner shall limit eligibility for 442.24the subsidy to the top 20 eligible oral health providers.442.25    Subd. 2.Community mental health programs.A community mental health 442.26program is eligible for a grant under this section if it is a community mental health center 442.27established under Minnesota Statutes, section 245.62, or a nonprofit community mental 442.28health clinic that is designated as an essential community provider under Minnesota 442.29Statutes, section 62Q.19, and the center or clinic offers free or reduced-cost mental health 442.30care to low-income patients with incomes below 200 percent of the federal poverty 442.31guideline who do not have health insurance coverage. The grants shall be distributed by 442.32the commissioner of health to each eligible mental health center or clinic based on the 442.33proportion of that mental health center's or clinic's number of low-income uninsured 442.34patients served in the reporting year to the total number of low-income uninsured patients 442.35served by all mental health centers and clinics eligible for a grant under this subdivision, 443.1except that no single eligible provider shall receive less than two percent or more than 30 443.2percent of the total appropriation provided under this subdivision.443.3    Subd. 3.Emergency medical assistance outlier grant program.(a) The 443.4commissioner of health shall establish a grant program for hospitals for the purposes of 443.5defraying underpayments associated with the emergency medical assistance program. 443.6Grants shall be made for the services provided between July 1, 2014, and June 30, 2015, 443.7to an individual who is enrolled in emergency medical assistance, and when emergency 443.8medical assistance reimbursement is in excess of $50,000.443.9(b) Hospitals seeking a grant from this program must submit an application that 443.10includes the number and dollar amount of hospital claims for emergency medical 443.11assistance in excess of $150,000 to the commissioner in a form prescribed by the 443.12commissioner. Grant payments shall be in proportion to the total hospital emergency 443.13medical assistance claims submitted by all applicant hospitals. Claims for inpatient 443.14hospital, outpatient services, and hospital emergency department services shall be 443.15considered when determining the value of the grants.443.16    Subd. 4.Grant process.The commissioner of health may use data submitted 443.17by organizations seeking a grant under this section, without further verification, for 443.18purposes of determining eligibility for a grant and allocating grant money among eligible 443.19organizations. The chief executive or chief financial officer must certify that the data 443.20submitted is accurate and that no changes were made in the organization's accounting and 443.21record-keeping practices or policies for providing free or reduced cost care to uninsured 443.22patients for the purpose of creating eligibility or increasing the organization's allocation. 443.23The commissioner may audit or verify the data submitted. Grant funds must be used to 443.24defray the organization's costs of providing care and services to uninsured patients with 443.25incomes below 200 percent of the federal poverty guidelines. An organization must not 443.26receive more than one grant under subdivisions 1, 2, or 3, even though the organization is 443.27potentially eligible for a grant under two or more subdivisions. Organizations eligible for 443.28a grant under this section may join together to submit a combined application provided the 443.29data submitted is certified by each individual organization.443.30    Sec. 8. QUALITY TRANSPARENCY.443.31(a) The commissioner of health shall develop an implementation plan for stratifying 443.32measures based on disability, race, ethnicity, language, and other sociodemographic factors 443.33that are correlated with health disparities and impact performance on quality measures.  443.34The plan must be designed so that quality measures can be stratified beginning January 1, 443.352017, in order to advance work aimed at identifying and eliminating health disparities.  444.1By January 15, 2015, the commissioner shall submit a report to the chairs and ranking 444.2minority members of the senate and house of representatives committees and divisions 444.3with jurisdiction on health and human services and finance with the plan, including an 444.4estimated budget, timeline, and processes to be used for implementation.444.5(b) The commissioner of health shall assess the risk adjustment methodology 444.6established under Minnesota Statutes, section 62U.02, subdivision 3, for the potential 444.7for harm and unintended consequences for patient populations who experience health 444.8disparities, and the providers who serve them, and identify changes that may be needed 444.9to alleviate harm and unintended consequences. By January 15, 2016, the commissioner 444.10shall submit a report to the chairs and ranking minority members of the senate and house 444.11of representatives committees and divisions with jurisdiction on health and human 444.12services and finance with  the result of the assessment of the risk-adjustment methodology 444.13and  any recommended changes.444.14(c) The commissioner shall develop the plan described in paragraph (a), in 444.15consultation with consumer, community and advocacy organizations representing diverse 444.16communities; health plan companies; providers; quality measurement organizations; and 444.17safety net providers that primarily serve communities and patient populations with health 444.18disparities.  The commissioner shall use culturally appropriate methods of consultation and 444.19engagement with consumer and advocacy organizations led by and representing diverse 444.20communities by race, ethnicity, language, and sociodemographic factors.444.21    Sec. 9. STUDY AND REPORT ABOUT CLIENT BILLS OF RIGHTS.444.22The commissioner of health shall consult with Aging Services of Minnesota, Care 444.23Providers of Minnesota, Minnesota Home Care Association, the commissioner of human 444.24services, the Office of the Ombudsman for Long-Term Care, and other stakeholders to 444.25evaluate and determine how to streamline the requirements related to the clients' rights in 444.26Minnesota Statutes, sections 144A.44, 144A.441, and 245D.04, for applicable providers, 444.27while assuring and maintaining the health and safety of clients. The evaluation must 444.28consider the federal client bill of rights requirements for Medicare-certified home care 444.29providers. The evaluation must determine if there are duplications or conflicts of client 444.30rights, evaluate how to reduce the complexity of the requirements related to clients' rights 444.31for providers and consumers, determine which rights must be included in a consolidated 444.32client bill of rights document, and develop options to inform consumers of their rights. 444.33The commissioner shall report to the chairs and ranking minority members of the health 444.34and human services committees of the legislature no later than February 15, 2015, and 444.35include any recommendations for legislative changes.445.1ARTICLE 21445.2PUBLIC ASSISTANCE SIMPLIFICATION445.3    Section 1. Minnesota Statutes 2012, section 254B.04, subdivision 3, is amended to read:445.4    Subd. 3. Amount of contribution. The commissioner shall adopt a sliding fee scale 445.5to determine the amount of contribution to be required from persons under this section. 445.6The commissioner may adopt rules to amend existing fee scales. The commissioner 445.7may establish a separate fee scale for recipients of chemical dependency transitional and 445.8extended care rehabilitation services that provides for the collection of fees for board and 445.9lodging expenses. The fee schedule shall ensure that employed persons are allowed the 445.10income disregards and savings accounts that are allowed residents of community mental 445.11illness facilities under section 256D.06, subdivisions subdivision 1 and 1b. The fee scale 445.12must not provide assistance to persons whose income is more than 115 percent of the 445.13state median income. Payments of liabilities under this section are medical expenses for 445.14purposes of determining spenddown under sections 
         256B.055, 
         256B.056, 
         256B.06, and 445.15256D.01
          to 
         256D.21. The required amount of contribution established by the fee scale in 445.16this subdivision is also the cost of care responsibility subject to collection under section 445.17254B.06, subdivision 1
         .445.18EFFECTIVE DATE.This section is effective October 1, 2015.445.19    Sec. 2. Minnesota Statutes 2012, section 256D.02, subdivision 8, is amended to read:445.20    Subd. 8. Income. "Income" means any form of income, including remuneration 445.21for services performed as an employee and net earnings earned income from rental 445.22income and self-employment earnings, reduced by the amount attributable to employment 445.23expenses as defined by the commissioner. The amount attributable to employment 445.24expenses shall include amounts paid or withheld for federal and state personal income 445.25taxes and federal Social Security taxes as described under section 256P.05.445.26Income includes any payments received as an annuity, retirement, or disability 445.27benefit, including veteran's or workers' compensation; old age, survivors, and disability 445.28insurance; railroad retirement benefits; unemployment benefits; and benefits under any 445.29federally aided categorical assistance program, supplementary security income, or other 445.30assistance program; rents, dividends, interest and royalties; and support and maintenance 445.31payments. Such payments may not be considered as available to meet the needs of any 445.32person other than the person for whose benefit they are received, unless that person is 445.33a family member or a spouse and the income is not excluded under section 
         256D.01, 445.34subdivision 1a
         . Goods and services provided in lieu of cash payment shall be excluded 446.1from the definition of income, except that payments made for room, board, tuition or 446.2fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary 446.3institution, and payments made on behalf of an applicant or recipient participant which 446.4the applicant or recipient participant could legally demand to receive personally in cash, 446.5must be included as income. Benefits of an applicant or recipient participant, such as those 446.6administered by the Social Security Administration, that are paid to a representative 446.7payee, and are spent on behalf of the applicant or recipient participant, are considered 446.8available income of the applicant or recipient participant.446.9EFFECTIVE DATE.This section is effective February 1, 2015.446.10    Sec. 3. Minnesota Statutes 2012, section 256D.02, subdivision 12, is amended to read:446.11    Subd. 12. County Agency."County agency" means the agency designated by the 446.12county board of commissioners, human services boards, local social services agencies 446.13in the several counties of the state or multicounty local social services agencies or 446.14departments where those have been established in accordance with law "Agency" has the 446.15meaning given in section 256P.01, subdivision 2.446.16    Sec. 4. Minnesota Statutes 2012, section 256D.05, subdivision 5, is amended to read:446.17    Subd. 5. Transfers of property. The equity value of real and personal property 446.18transferred without reasonable compensation within 12 months preceding the date of 446.19application for general assistance must be included in determining the resources of an 446.20assistance unit in the same manner as in the Minnesota family investment program under 446.21chapter 256J as described in section 256P.02, subdivision 1, paragraph (c).446.22EFFECTIVE DATE.This section is effective January 1, 2016.446.23    Sec. 5. Minnesota Statutes 2012, section 256D.06, subdivision 1, is amended to read:446.24    Subdivision 1. Eligibility; amount of assistance. General assistance shall be 446.25granted in an amount that when added to the nonexempt income actually available to the 446.26assistance unit, the total amount equals the applicable standard of assistance for general 446.27assistance. In determining eligibility for and the amount of assistance for an individual or 446.28married couple, the county agency shall apply the earned income disregard the first $50 of 446.29earned income per month as determined in section 256P.03.446.30EFFECTIVE DATE.This section is effective October 1, 2015.446.31    Sec. 6. Minnesota Statutes 2012, section 256D.08, subdivision 1, is amended to read:447.1    Subdivision 1. Eligibility; excluded resources.In determining eligibility of an 447.2assistance unit, the following resources shall be excluded:447.3(1) real or personal property or liquid assets which do not exceed $1,000; and447.4(2) other property which has been determined, according to limitations contained in 447.5rules promulgated by the commissioner, to be essential to the assistance unit as a means of 447.6self-support or self-care or which is producing income that is being used for the support 447.7of the assistance unit. The commissioner shall further provide by rule the conditions for 447.8those situations in which property not excluded under this subdivision may be retained by 447.9the assistance unit where there is a reasonable probability that in the foreseeable future the 447.10property will be used for the self-support of the assistance unit; and447.11(3) payments, made according to litigation and subsequent appropriation by the 447.12United States Congress, of funds to compensate members of Indian tribes for the taking of 447.13tribal land by the federal government. To establish eligibility for general assistance under 447.14this chapter, an agency must use the procedures established in section 256P.02.447.15EFFECTIVE DATE.This section is effective January 1, 2016.447.16    Sec. 7. Minnesota Statutes 2012, section 256D.08, is amended by adding a subdivision 447.17to read:447.18    Subd. 3.Verification. To verify eligibility for general assistance under this chapter, 447.19an agency must use the procedures established in section 256P.04.447.20EFFECTIVE DATE.This section is effective February 1, 2015.447.21    Sec. 8. Minnesota Statutes 2012, section 256D.10, is amended to read:447.22256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION.447.23No grant of general assistance except one made pursuant to section 
         256D.06, 447.24subdivision 2
         ; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended 447.25unless the recipient receives notice and is afforded an opportunity to be heard prior to 447.26any action by the county agency.447.27Nothing herein shall deprive a recipient of the right to full administrative and judicial 447.28review of an order or determination of a county agency as provided for in section 
         256.045447.29subsequent to any action taken by a county agency after a prior hearing.447.30EFFECTIVE DATE.This section is effective January 1, 2016.447.31    Sec. 9. Minnesota Statutes 2012, section 256D.405, subdivision 1, is amended to read:448.1    Subdivision 1. Verification of information.The county agency shall request, and 448.2applicants and recipients shall provide and verify, all information necessary to determine 448.3initial and continuing eligibility and assistance payment amounts. If necessary, the county 448.4agency shall assist the applicant or recipient in obtaining verifications. If the applicant or 448.5recipient refuses or fails without good cause to provide the information or verification, the 448.6county agency shall deny or terminate assistance An agency must apply section 256P.04 448.7when documenting, verifying, and recertifying eligibility under this chapter. An agency 448.8must only require verification of information necessary to determine eligibility under this 448.9chapter and the amount of the assistance payment.448.10EFFECTIVE DATE.This section is effective February 1, 2015.448.11    Sec. 10. Minnesota Statutes 2012, section 256D.405, subdivision 3, is amended to read:448.12    Subd. 3. Reports.Recipients Participants must report changes in circumstances that 448.13affect eligibility or assistance payment amounts within ten days of the change. Recipients448.14 Participants who do not receive SSI because of excess income must complete a monthly 448.15report form if they have earned income, if they have income deemed to them from a 448.16financially responsible relative with whom the recipient participant resides, or if they have 448.17income deemed to them by a sponsor. If the report form is not received before the end of 448.18the month in which it is due, the county agency must terminate assistance. The termination 448.19shall be effective on the first day of the month following the month in which the report 448.20was due. If a complete report is received within the month the assistance was terminated, 448.21the assistance unit is considered to have continued its application for assistance, effective 448.22the first day of the month the assistance was terminated.448.23EFFECTIVE DATE.This section is effective February 1, 2015.448.24    Sec. 11. Minnesota Statutes 2012, section 256D.425, subdivision 2, is amended to read:448.25    Subd. 2. Resource standards.(a) For persons receiving supplemental security 448.26income benefits, the resource standards and restrictions for supplemental aid under 448.27this section shall be those used to determine eligibility for disabled individuals in the 448.28supplemental security income program.448.29(b) For persons not receiving supplemental security income benefits due to excess 448.30income or resources, but whose income and resources are within the limits of the Minnesota 448.31supplemental aid program, the resource standards shall be those in section 256P.02.448.32EFFECTIVE DATE.This section is effective January 1, 2016.449.1    Sec. 12. Minnesota Statutes 2012, section 256I.03, is amended by adding a subdivision 449.2to read:449.3    Subd. 1a.Agency."Agency" has the meaning given in section 256P.01, subdivision 449.42.449.5    Sec. 13. Minnesota Statutes 2012, section 256I.04, subdivision 1, is amended to read:449.6    Subdivision 1. Individual eligibility requirements. An individual is eligible for 449.7and entitled to a group residential housing payment to be made on the individual's behalf 449.8if the county agency has approved the individual's residence in a group residential housing 449.9setting and the individual meets the requirements in paragraph (a) or (b).449.10(a) The individual is aged, blind, or is over 18 years of age and disabled as 449.11determined under the criteria used by the title II program of the Social Security Act, and 449.12meets the resource restrictions and standards of the supplemental security income program449.13 section 256P.02, and the individual's countable income after deducting the (1) exclusions 449.14and disregards of the SSI program, (2) the medical assistance personal needs allowance 449.15under section 
         256B.35, and (3) an amount equal to the income actually made available to 449.16a community spouse by an elderly waiver recipient participant under the provisions of 449.17sections 
         256B.0575, paragraph (a), clause (4), and 
         256B.058, subdivision 2, is less than 449.18the monthly rate specified in the county agency's agreement with the provider of group 449.19residential housing in which the individual resides.449.20(b) The individual meets a category of eligibility under section 
         256D.05, subdivision 449.211
         , paragraph (a), and the individual's resources are less than the standards specified by 449.22section 
         256D.08 256P.02, and the individual's countable income as determined under 449.23sections 
         256D.01 to 
         256D.21, less the medical assistance personal needs allowance under 449.24section 
         256B.35 is less than the monthly rate specified in the county agency's agreement 449.25with the provider of group residential housing in which the individual resides.449.26EFFECTIVE DATE.This section is effective January 1, 2016.449.27    Sec. 14. Minnesota Statutes 2012, section 256J.08, is amended by adding a subdivision 449.28to read:449.29    Subd. 2a.Agency."Agency" has the meaning given in section 256P.01, subdivision 449.302.449.31    Sec. 15. Minnesota Statutes 2012, section 256J.08, subdivision 47, is amended to read:450.1    Subd. 47. Income. "Income" means cash or in-kind benefit, whether earned or 450.2unearned, received by or available to an applicant or participant that is not an asset450.3 property under section 
         256J.20 256P.02.450.4EFFECTIVE DATE.This section is effective January 1, 2016.450.5    Sec. 16. Minnesota Statutes 2012, section 256J.08, subdivision 57, is amended to read:450.6    Subd. 57. Minnesota family investment program or MFIP. "Minnesota family 450.7investment program" or "MFIP" means the assistance program authorized in this chapter 450.8and chapter 256K.450.9    Sec. 17. Minnesota Statutes 2012, section 256J.08, subdivision 83, is amended to read:450.10    Subd. 83. Significant change. "Significant change" means a decline in gross 450.11income of the amount of the disregard as defined in subdivision 24 section 256P.03 or 450.12more from the income used to determine the grant for the current month.450.13EFFECTIVE DATE.This section is effective January 1, 2015.450.14    Sec. 18. Minnesota Statutes 2012, section 256J.10, is amended to read:450.15256J.10 MFIP ELIGIBILITY REQUIREMENTS.450.16To be eligible for MFIP, applicants must meet the general eligibility requirements 450.17in sections 
         256J.11 to 
         256J.15, the property limitations in section 
         256J.20 256P.02, and 450.18the income limitations in section 
         256J.21.450.19EFFECTIVE DATE.This section is effective January 1, 2016.450.20    Sec. 19. Minnesota Statutes 2013 Supplement, section 256J.21, subdivision 3, is 450.21amended to read:450.22    Subd. 3. Initial income test. The county agency shall determine initial eligibility 450.23by considering all earned and unearned income that is not excluded under subdivision 2. 450.24To be eligible for MFIP, the assistance unit's countable income minus the earned income 450.25disregards in paragraphs paragraph (a) and (b) section 256P.03 must be below the family 450.26wage level according to section 
         256J.24 for that size assistance unit.450.27(a) The initial eligibility determination must disregard the following items:450.28(1) the employment earned income disregard is 18 percent of the gross earned 450.29income whether or not the member is working full time or part time as determined in 450.30section 256P.03;451.1(2) dependent care costs must be deducted from gross earned income for the actual 451.2amount paid for dependent care up to a maximum of $200 per month for each child less 451.3than two years of age, and $175 per month for each child two years of age and older under 451.4this chapter and chapter 119B;451.5(3) all payments made according to a court order for spousal support or the support 451.6of children not living in the assistance unit's household shall be disregarded from the 451.7income of the person with the legal obligation to pay support, provided that, if there has 451.8been a change in the financial circumstances of the person with the legal obligation to pay 451.9support since the support order was entered, the person with the legal obligation to pay 451.10support has petitioned for a modification of the support order; and451.11(4) an allocation for the unmet need of an ineligible spouse or an ineligible child 451.12under the age of 21 for whom the caregiver is financially responsible and who lives with 451.13the caregiver according to section 
         256J.36.451.14(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant 451.15units when at least one member has received MFIP in this state within four months of 451.16the most recent application for MFIP, apply the disregard as defined in section 256J.08, 451.17subdivision 24, for all unit members.451.18After initial eligibility is established, the assistance payment calculation is based on 451.19the monthly income test.451.20EFFECTIVE DATE.This section is effective October 1, 2015.451.21    Sec. 20. Minnesota Statutes 2012, section 256J.21, subdivision 4, is amended to read:451.22    Subd. 4. Monthly income test and determination of assistance payment.451.23The county agency shall determine ongoing eligibility and the assistance payment 451.24amount according to the monthly income test. To be eligible for MFIP, the result of the 451.25computations in paragraphs (a) to (e) must be at least $1.451.26(a) Apply an income disregard as defined in section 
         256J.08, subdivision 24 256P.03, 451.27to gross earnings and subtract this amount from the family wage level. If the difference is 451.28equal to or greater than the MFIP transitional standard of need, the assistance payment is 451.29equal to the MFIP transitional standard of need. If the difference is less than the MFIP 451.30transitional standard of need, the assistance payment is equal to the difference. The 451.31employment earned income disregard in this paragraph must be deducted every month 451.32there is earned income.451.33(b) All payments made according to a court order for spousal support or the support 451.34of children not living in the assistance unit's household must be disregarded from the 451.35income of the person with the legal obligation to pay support, provided that, if there has 452.1been a change in the financial circumstances of the person with the legal obligation to pay 452.2support since the support order was entered, the person with the legal obligation to pay 452.3support has petitioned for a modification of the court order.452.4(c) An allocation for the unmet need of an ineligible spouse or an ineligible child 452.5under the age of 21 for whom the caregiver is financially responsible and who lives with 452.6the caregiver must be made according to section 
         256J.36.452.7(d) Subtract unearned income dollar for dollar from the MFIP transitional standard 452.8of need to determine the assistance payment amount.452.9(e) When income is both earned and unearned, the amount of the assistance payment 452.10must be determined by first treating gross earned income as specified in paragraph (a). 452.11After determining the amount of the assistance payment under paragraph (a), unearned 452.12income must be subtracted from that amount dollar for dollar to determine the assistance 452.13payment amount.452.14(f) When the monthly income is greater than the MFIP transitional standard of need452.15 after deductions and the income will only exceed the standard for one month, the county 452.16agency must suspend the assistance payment for the payment month.452.17EFFECTIVE DATE.This section is effective October 1, 2015.452.18    Sec. 21. Minnesota Statutes 2012, section 256J.30, subdivision 4, is amended to read:452.19    Subd. 4. Participant's completion of recertification of eligibility form. A 452.20participant must complete forms prescribed by the commissioner which are required 452.21for recertification of eligibility according to section 
         256J.32, subdivision 6 256P.04, 452.22subdivisions 8 and 9.452.23EFFECTIVE DATE.This section is effective February 1, 2015.452.24    Sec. 22. Minnesota Statutes 2013 Supplement, section 256J.30, subdivision 9, is 452.25amended to read:452.26    Subd. 9. Changes that must be reported. A caregiver must report the changes 452.27or anticipated changes specified in clauses (1) to (16) (15) within ten days of the date 452.28they occur, at the time of the periodic recertification of eligibility under section 
         256J.32, 452.29subdivision 6 256P.04, subdivisions 8 and 9, or within eight calendar days of a reporting 452.30period as in subdivision 5, whichever occurs first. A caregiver must report other changes 452.31at the time of the periodic recertification of eligibility under section 
         256J.32, subdivision 452.326 256P.04, subdivisions 8 and 9, or at the end of a reporting period under subdivision 452.335, as applicable. A caregiver must make these reports in writing to the county agency. 453.1When a county an agency could have reduced or terminated assistance for one or more 453.2payment months if a delay in reporting a change specified under clauses (1) to (15) (14)453.3 had not occurred, the county agency must determine whether a timely notice under section 453.4256J.31, subdivision 4
         , could have been issued on the day that the change occurred. When 453.5a timely notice could have been issued, each month's overpayment subsequent to that 453.6notice must be considered a client error overpayment under section 
         256J.38. Calculation 453.7of overpayments for late reporting under clause (16) (15) is specified in section 
         256J.09, 453.8subdivision 9
         . Changes in circumstances which must be reported within ten days must 453.9also be reported on the MFIP household report form for the reporting period in which 453.10those changes occurred. Within ten days, a caregiver must report:453.11(1) a change in initial employment;453.12(2) a change in initial receipt of unearned income;453.13(3) a recurring change in unearned income;453.14(4) a nonrecurring change of unearned income that exceeds $30;453.15(5) the receipt of a lump sum;453.16(6) an increase in assets that may cause the assistance unit to exceed asset limits;453.17(7) a change in the physical or mental status of an incapacitated member of the 453.18assistance unit if the physical or mental status is the basis for reducing the hourly 453.19participation requirements under section 
         256J.55, subdivision 1, or the type of activities 453.20included in an employment plan under section 
         256J.521, subdivision 2;453.21(8) a change in employment status;453.22(9) information affecting an exception under section 256J.24, subdivision 9;453.23(10) (9) the marriage or divorce of an assistance unit member;453.24(11) (10) the death of a parent, minor child, or financially responsible person;453.25(12) (11) a change in address or living quarters of the assistance unit;453.26(13) (12) the sale, purchase, or other transfer of property;453.27(14) (13) a change in school attendance of a caregiver under age 20 or an employed 453.28child;453.29(15) (14) filing a lawsuit, a workers' compensation claim, or a monetary claim 453.30against a third party; and453.31(16) (15) a change in household composition, including births, returns to and 453.32departures from the home of assistance unit members and financially responsible persons, 453.33or a change in the custody of a minor child.453.34EFFECTIVE DATE.This section is effective January 1, 2015.453.35    Sec. 23. Minnesota Statutes 2012, section 256J.32, subdivision 1, is amended to read:454.1    Subdivision 1. Verification of information.A county An agency must apply section 454.2256P.04 when documenting, verifying, and recertifying MFIP eligibility. An agency must 454.3only require verification of information necessary to determine MFIP eligibility and the 454.4amount of the assistance payment.454.5EFFECTIVE DATE.This section is effective February 1, 2015.454.6    Sec. 24. Minnesota Statutes 2012, section 256J.33, subdivision 2, is amended to read:454.7    Subd. 2. Prospective eligibility.A county An agency must determine whether the 454.8eligibility requirements that pertain to an assistance unit, including those in sections 454.9256J.11
          to 
         256J.15 and 
         256J.20 256P.02, will be met prospectively for the payment 454.10month. Except for the provisions in section 
         256J.34, subdivision 1, the income test will be 454.11applied retrospectively.454.12EFFECTIVE DATE.This section is effective January 1, 2016.454.13    Sec. 25. Minnesota Statutes 2012, section 256J.37, as amended by Laws 2013, chapter 454.14107, article 4, section 15, is amended to read:454.15256J.37 TREATMENT OF INCOME AND LUMP SUMS.454.16    Subdivision 1. Deemed income from ineligible household assistance unit454.17 members.Unless otherwise provided under subdivision 1a or 1b, The income of ineligible 454.18household assistance unit members must be deemed after allowing the following disregards:454.19(1) the first 18 percent of the ineligible family member's gross an earned income454.20 disregard as determined under section 256P.03;454.21(2) amounts the ineligible person actually paid to individuals not living in the 454.22same household but whom the ineligible person claims or could claim as dependents for 454.23determining federal personal income tax liability;454.24(3) (2) all payments made by the ineligible person according to a court order for 454.25spousal support or the support of children not living in the assistance unit's household, 454.26provided that, if there has been a change in the financial circumstances of the ineligible 454.27person since the support order was entered, the ineligible person has petitioned for a 454.28modification of the support order; and454.29(4) (3) an amount for the unmet needs of the ineligible person and other persons 454.30who live in the household but are not included in the assistance unit and are or could be 454.31claimed by an ineligible person as dependents for determining federal personal income 454.32tax liability who, if eligible, would be assistance unit members under section 256J.24, 454.33subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the 455.1MFIP transitional standard of need when the ineligible person is persons are included in 455.2the assistance unit and the MFIP transitional standard of need when the ineligible person 455.3is persons are not included in the assistance unit.455.4    Subd. 1a. Deemed income from disqualified assistance unit members. The 455.5income of disqualified members must be deemed after allowing the following disregards:455.6(1) the first 18 percent of the disqualified member's gross an earned income disregard 455.7as determined under section 256P.03;455.8(2) amounts the disqualified member actually paid to individuals not living in the 455.9same household but whom the disqualified member claims or could claim as dependents 455.10for determining federal personal income tax liability;455.11(3) (2) all payments made by the disqualified member according to a court order for 455.12spousal support or the support of children not living in the assistance unit's household, 455.13provided that, if there has been a change in the financial circumstances of the disqualified 455.14member's legal obligation to pay support since the support order was entered, the 455.15disqualified member has petitioned for a modification of the support order; and455.16(4) (3) an amount for the unmet needs of other ineligible persons who live in the 455.17household but are not included in the assistance unit and are or could be claimed by the 455.18disqualified member as dependents for determining federal personal income tax liability455.19 who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or 455.204, paragraph (b). This amount is equal to the difference between the MFIP transitional 455.21standard of need when the ineligible person is persons are included in the assistance unit 455.22and the MFIP transitional standard of need when the ineligible person is persons are455.23 not included in the assistance unit. An amount shall not be allowed for the needs of a455.24 disqualified member members.455.25    Subd. 1b. Deemed income from parents of minor caregivers. In households 455.26where minor caregivers live with a parent or parents who do not receive MFIP for 455.27themselves or their minor children, the income of the parents must be deemed after 455.28allowing the following disregards:455.29(1) income of the parents equal to 200 percent of the federal poverty guideline for a 455.30family size not including the minor parent and the minor parent's child in the household 455.31according to section 
         256J.21, subdivision 2, clause (43); and455.32(2) 18 percent of the parents' gross earned income;455.33(3) amounts the parents actually paid to individuals not living in the same household 455.34but whom the parents claim or could claim as dependents for determining federal personal 455.35income tax liability; and456.1(4) (2) all payments made by parents according to a court order for spousal support 456.2or the support of children not living in the parent's household, provided that, if there has 456.3been a change in the financial circumstances of the parent's legal obligation to pay support 456.4since the support order was entered, the parents have petitioned for a modification of 456.5the support order.456.6    Subd. 2. Deemed income and assets of sponsor of noncitizens. (a) If a noncitizen 456.7applies for or receives MFIP, the county agency must deem the income and assets of the 456.8noncitizen's sponsor and the sponsor's spouse as provided in this paragraph and paragraph 456.9(b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor's 456.10spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor 456.11and the sponsor's spouse are considered available assets of the noncitizen.456.12(b) The income and assets of a sponsor who signed an affidavit of support under title 456.13IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and 456.14Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor's 456.15spouse, must be deemed to the noncitizen to the extent required by those sections of 456.16Public Law 104-193.456.17(c) The income and assets of a sponsor and the sponsor's spouse to whom the 456.18provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full 456.19extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget 456.20Act of 1997.456.21    Subd. 3. Earned income of wage, salary, and contractual employees. The county456.22 agency must include gross earned income less any disregards in the initial and monthly 456.23income test. Gross earned income received by persons employed on a contractual basis 456.24must be prorated over the period covered by the contract even when payments are received 456.25over a lesser period of time.456.26    Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the 456.27county agency shall count $50 of the value of public and assisted rental subsidies provided 456.28through the Department of Housing and Urban Development (HUD) as unearned income 456.29to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 456.30unearned income when the subsidy is less than $50. The income from this subsidy shall 456.31be budgeted according to section 
         256J.34.456.32(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 456.33which includes a participant who is:456.34(1) age 60 or older;456.35(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 456.36certified by a qualified professional when the illness, injury, or incapacity is expected 457.1to continue for more than 30 days and severely limits the person's ability to obtain or 457.2maintain suitable employment; or457.3(3) a caregiver whose presence in the home is required due to the illness or 457.4incapacity of another member in the assistance unit, a relative in the household, or a foster 457.5child in the household when the illness or incapacity and the need for the participant's 457.6presence in the home has been certified by a qualified professional and is expected to 457.7continue for more than 30 days.457.8(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 457.9where the parental caregiver is an SSI recipient participant.457.10    Subd. 4. Self-employment.Self-employed individuals are those who are 457.11responsible for their own work schedule and do not have coverage under an employer's 457.12liability insurance or workers' compensation. Self-employed individuals generally work 457.13for themselves rather than an employer. However, individuals employed in some types of 457.14services may be self-employed even if they have an employer or work out of another's 457.15business location. For example, real estate sales people, individuals who work for 457.16commission sales, manufacturer's representatives, and independent contractors may be 457.17self-employed. Self-employed individuals may or may not have FICA deducted from the 457.18check issued to them by an employer or another party.457.19Self-employed individuals may own a business singularly or in partnership. 457.20Individuals operating more than one self-employment business may use the loss from 457.21one business to offset self-employment income from another business. A loss from a 457.22self-employment business may not offset income earned under subdivision 3.457.23Self-employment has the meaning given in section 256P.01, subdivision 7.457.24    Subd. 5. Self-employment earnings. The county agency must determine 457.25self-employment income according to the following: section 256P.05, subdivision 2.457.26(a) Subtract allowable business expenses from total gross receipts. Allowable 457.27business expenses include:457.28(1) interest on mortgages and loans;457.29(2) employee wages, except for persons who are part of the assistance unit or whose 457.30income is deemed to the participant;457.31(3) FICA funds paid on employees' wages, payment of employee workers' 457.32compensation, and unemployment benefits;457.33(4) livestock and veterinary or breeding fees;457.34(5) raw material;457.35(6) seed and fertilizer;457.36(7) maintenance and repairs that are not capital expenditures;458.1(8) tax return preparation fees;458.2(9) license fees, professional fees, franchise fees, and professional dues;458.3(10) tools and supplies that are not capital expenditures;458.4(11) fuel and transportation expenses other than fuel costs covered by the flat rate 458.5transportation deduction;458.6(12) advertising costs;458.7(13) meals eaten when required to be away from the local work site;458.8(14) property expenses such as rent, insurance, taxes, and utilities;458.9(15) postage;458.10(16) purchase cost of inventory at time of sale;458.11(17) loss from another self-employment business;458.12(18) attorney fees allowed by the Internal Revenue Service; and458.13(19) tuition for classes necessary to maintain or improve job skills or required by 458.14law to maintain job status or salary as allowed by the Internal Revenue Service.458.15(b) The county agency shall not allow a deduction for the following expenses:458.16(1) purchases of capital assets;458.17(2) payments on the principals of loans for capital assets;458.18(3) depreciation;458.19(4) amortization;458.20(5) the wholesale costs of items purchased, processed, or manufactured which are 458.21unsold inventory;458.22(6) transportation costs that exceed the maximum standard mileage rate allowed for 458.23use of a personal car in the Internal Revenue Code;458.24(7) costs, in any amount, for mileage between an applicant's or participant's home 458.25and place of employment;458.26(8) salaries and other employment deductions made for members of an assistance 458.27unit or persons who live in the household for whom an employer is legally responsible;458.28(9) monthly expenses in excess of $71 for each roomer;458.29(10) monthly expenses in excess of the Thrifty Food Plan amount for one person for 458.30each boarder. For purposes of this clause and clause (11), "Thrifty Food Plan" has the 458.31meaning given it in Code of Federal Regulations;458.32(11) monthly expenses in excess of the roomer rate plus the Thrifty Food Plan 458.33amount for one person for each roomer-boarder. If there is more than one boarder or 458.34roomer-boarder, use the total number of boarders as the unit size to determine the Thrifty 458.35Food Plan amount;459.1(12) an amount greater than actual expenses or two percent of the estimated market 459.2value on a county tax assessment form, whichever is greater, as a deduction for upkeep 459.3and repair against rental income;459.4(13) expenses not allowed by the Internal Revenue Code;459.5(14) expenses in excess of 60 percent of gross receipts for in-home child care unless 459.6a higher amount can be documented; and459.7(15) expenses that are reimbursed under the child and adult care food program as 459.8authorized under the National School Lunch Act, United States Code, title 42.459.9    Subd. 6. Self-employment budget period.The self-employment budget period 459.10begins in the month of application or in the first month of self-employment. Gross receipts 459.11must be budgeted in the month received. Expenses must be budgeted against gross 459.12receipts in the month the expenses are paid, except for paragraphs (a) to (c).459.13(a) The purchase cost of inventory items, including materials which are processed 459.14or manufactured, must be deducted as an expense at the time payment is received for 459.15the sale of the inventory items.459.16(b) A 12-month rolling average based on clauses (1) to (3) must be used to budget 459.17monthly income.459.18(1) For a business in operation for at least 12 months, the county agency shall use 459.19the average monthly self-employment income from the most current income tax report for 459.20the 12 months before the month of application. The county agency shall determine a new 459.21monthly average by adding in the actual self-employment income and expenses from the 459.22previous month and dropping the first month from the averaging period.459.23(2) For a business in operation for less than 12 months, the county agency shall 459.24compute the average for the number of months the business has been in operation to 459.25determine a monthly average. When data are available for 12 or more months, average 459.26monthly self-employment income is determined under clause (1).459.27(3) If the business undergoes a major change, the county agency shall compute a new 459.28rolling average beginning with the first month of the major change. For the purpose of this 459.29clause, major change means a change that affects the nature and scale of the business and 459.30is not merely the result of normal business fluctuations.459.31(c) For seasonal self-employment, the caregiver may choose whether to use actual 459.32income in the month of receipt and expenses in the month incurred or the rolling average 459.33method of computation. The choice must be made once per year at the time of application 459.34or recertification. For the purpose of this paragraph, seasonal means working six or less 459.35months per year.460.1The agency must budget self-employment earned income according to section 460.2256P.05, subdivision 3.460.3    Subd. 7. Farm income.Farm income is the difference between gross receipts 460.4and operating expenses. The county agency must not allow a deduction for expenses 460.5listed in subdivision 5, paragraph (b). Gross receipts include sales, rents, subsidies, 460.6soil conservation payments, production derived from livestock, and income from 460.7home-produced food Farm income shall be treated as self-employment income under 460.8section 256P.05, subdivision 2. The agency must budget farm income as self-employment 460.9earned income according to section 256P.05, subdivision 3.460.10    Subd. 8. Rental income.The county agency must treat income from rental property 460.11as earned or unearned income. Income from rental property is unearned income unless the 460.12assistance unit spends an average of ten hours per week on maintenance or management 460.13of the property. When the owner spends more than ten hours per week on maintenance 460.14or repairs, the earnings are considered self-employment earnings. An amount must be 460.15deducted for upkeep and repairs, as specified in subdivision 5, paragraph (b), clause 460.16(12), real estate taxes, insurance, utilities, and interest on principal payments. When the 460.17applicant or participant lives on the rental property, expenses for upkeep, taxes, insurance, 460.18utilities, and interest must be divided by the number of rooms to determine expense per 460.19room and expenses deducted must be deducted only for the number of rooms rented460.20 Rental income is subject to the requirements of section 256P.05.460.21    Subd. 9. Unearned income. (a) The county agency must apply unearned income 460.22to the MFIP transitional standard of need. When determining the amount of unearned 460.23income, the county agency must deduct the costs necessary to secure payments of 460.24unearned income. These costs include legal fees, medical fees, and mandatory deductions 460.25such as federal and state income taxes.460.26(b) The county agency must convert unearned income received on a periodic basis to 460.27monthly amounts by prorating the income over the number of months represented by the 460.28frequency of the payments. The county agency must begin counting the monthly amount 460.29in the month the periodic payment is received and budget it according to the assistance 460.30unit's budget cycle.460.31    Subd. 10. Treatment of lump sums. (a) The county agency must treat lump-sum 460.32payments as earned or unearned income. If the lump-sum payment is included in the 460.33category of income identified in subdivision 9, it must be treated as unearned income. A 460.34lump sum is counted as income in the month received and budgeted either prospectively or 460.35retrospectively depending on the budget cycle at the time of receipt. When an individual 460.36receives a lump-sum payment, that lump sum must be combined with all other earned and 461.1unearned income received in the same budget month, and it must be applied according to 461.2paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any 461.3funds that remain in the third month after the month of receipt are counted in the asset limit.461.4(b) For a lump sum received by an applicant during the first two months, prospective 461.5budgeting is used to determine the payment and the lump sum must be combined with 461.6other earned or unearned income received and budgeted in that prospective month.461.7(c) For a lump sum received by a participant after the first two months of MFIP 461.8eligibility, the lump sum must be combined with other income received in that budget 461.9month, and the combined amount must be applied retrospectively against the applicable 461.10payment month.461.11(d) When a lump sum, combined with other income under paragraphs (b) and (c), is 461.12less than the MFIP transitional standard of need for the appropriate payment month, the 461.13assistance payment must be reduced according to the amount of the countable income. 461.14When the countable income is greater than the MFIP standard or family wage level, the 461.15assistance payment must be suspended for the payment month.461.16EFFECTIVE DATE.The amendments to subdivisions 1, 1a, 1b, and 2 are effective 461.17October 1, 2015. The amendments to subdivisions 4, 5, 6, 7, and 8 are effective February 461.181, 2015. The amendments to subdivisions 9 and 10 are effective January 1, 2015.461.19    Sec. 26. Minnesota Statutes 2012, section 256J.425, subdivision 1, is amended to read:461.20    Subdivision 1. Eligibility. (a) To be eligible for a hardship extension, a participant 461.21in an assistance unit subject to the time limit under section 
         256J.42, subdivision 1, must 461.22be in compliance in the participant's 60th counted month. For purposes of determining 461.23eligibility for a hardship extension, a participant is in compliance in any month that the 461.24participant has not been sanctioned. In order to maintain eligibility for any of the hardship 461.25extension categories a participant shall develop and comply with either an employment 461.26plan or a family stabilization services plan, whichever is appropriate.461.27    (b) If one participant in a two-parent assistance unit is determined to be ineligible for 461.28a hardship extension, the county shall give the assistance unit the option of disqualifying 461.29the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 461.30one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using 461.31the shared household standard under section 256J.08, subdivision 82a.461.32    (c) Prior to denying an extension, the county must review the sanction status and 461.33determine whether the sanction is appropriate or if good cause exists under section 
         256J.57. 461.34If the sanction was inappropriately applied or the participant is granted a good cause 461.35exception before the end of month 60, the participant shall be considered for an extension.462.1EFFECTIVE DATE.This section is effective January 1, 2015.462.2    Sec. 27. Minnesota Statutes 2012, section 256J.425, subdivision 7, is amended to read:462.3    Subd. 7. Status of disqualified participants. (a) An assistance unit that is 462.4disqualified under subdivision 6, paragraph (a), may be approved for MFIP if the 462.5participant complies with MFIP program requirements and demonstrates compliance for 462.6up to one month. No assistance shall be paid during this period.462.7(b) An assistance unit that is disqualified under subdivision 6, paragraph (a), and that 462.8reapplies under paragraph (a) is subject to sanction under section 
         256J.46, subdivision 462.91
         , paragraph (c), clause (1), for a first occurrence of noncompliance. A subsequent 462.10occurrence of noncompliance results in a permanent disqualification.462.11(c) If one participant in a two-parent assistance unit receiving assistance under a 462.12hardship extension under subdivision 3 or 4 is determined to be out of compliance with 462.13the employment and training services requirements under sections 
         256J.521 to 
         256J.57, 462.14the county shall give the assistance unit the option of disqualifying the noncompliant 462.15participant from MFIP. In that case, the assistance unit shall be treated as a one-parent 462.16assistance unit for the purposes of meeting the work requirements under subdivision 462.174 and the assistance unit's MFIP grant shall be calculated using the shared household 462.18standard under section 256J.08, subdivision 82a. An applicant who is disqualified 462.19from receiving assistance under this paragraph may reapply under paragraph (a). If a 462.20participant is disqualified from MFIP under this subdivision a second time, the participant 462.21is permanently disqualified from MFIP.462.22(d) Prior to a disqualification under this subdivision, a county agency must review 462.23the participant's case to determine if the employment plan is still appropriate and attempt 462.24to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the 462.25county agency must send the participant a notice of adverse action as provided in section 462.26256J.31
         . During the face-to-face meeting, the county agency must:462.27(1) determine whether the continued noncompliance can be explained and mitigated 462.28by providing a needed preemployment activity, as defined in section 
         256J.49, subdivision 462.2913
         , clause (9);462.30(2) determine whether the participant qualifies for a good cause exception under 462.31section 
         256J.57;462.32(3) inform the participant of the family violence waiver criteria and make appropriate 462.33referrals if the waiver is requested;462.34(4) inform the participant of the participant's sanction status and explain the 462.35consequences of continuing noncompliance;463.1(5) identify other resources that may be available to the participant to meet the 463.2needs of the family; and463.3(6) inform the participant of the right to appeal under section 
         256J.40.463.4EFFECTIVE DATE.This section is effective January 1, 2015.463.5    Sec. 28. Minnesota Statutes 2012, section 256J.95, subdivision 8, is amended to read:463.6    Subd. 8. Verification requirements. (a) A county agency must only require 463.7verification of information necessary to determine DWP eligibility and the amount of 463.8the payment. The applicant or participant must document the information required or 463.9authorize the county agency to verify the information. The applicant or participant has the 463.10burden of providing documentary evidence to verify eligibility. The county agency shall 463.11assist the applicant or participant in obtaining required documents when the applicant 463.12or participant is unable to do so.463.13(b) A county agency must not request information about an applicant or participant 463.14that is not a matter of public record from a source other than county agencies, the 463.15Department of Human Services, or the United States Department of Health and Human 463.16Services without the person's prior written consent. An applicant's signature on an 463.17application form constitutes consent for contact with the sources specified on the 463.18application. A county agency may use a single consent form to contact a group of similar 463.19sources, but the sources to be contacted must be identified by the county agency prior to 463.20requesting an applicant's consent.463.21(c) Factors to be verified shall follow section 256J.32, subdivision 256P.04, 463.22subdivisions 4 and 5. Except for personal needs, family maintenance needs must be 463.23verified before the expense can be allowed in the calculation of the DWP grant.463.24EFFECTIVE DATE.This section is effective February 1, 2015.463.25    Sec. 29. Minnesota Statutes 2012, section 256J.95, subdivision 9, is amended to read:463.26    Subd. 9. Property and income limitations. The asset limits and exclusions in 463.27section 
         256J.20 256P.02 apply to applicants and recipients participants of DWP. All 463.28payments, unless excluded in section 
         256J.21, must be counted as income to determine 463.29eligibility for the diversionary work program. The county agency shall treat income as 463.30outlined in section 
         256J.37, except for subdivision 3a. The initial income test and the 463.31disregards in section 
         256J.21, subdivision 3, shall be followed for determining eligibility 463.32for the diversionary work program.463.33EFFECTIVE DATE.This section is effective January 1, 2016.464.1    Sec. 30. Minnesota Statutes 2012, section 256J.95, subdivision 10, is amended to read:464.2    Subd. 10. Diversionary work program grant. (a) The amount of cash benefits that 464.3a family unit is eligible for under the diversionary work program is based on the number 464.4of persons in the family unit, the family maintenance needs, personal needs allowance, 464.5and countable income. The county agency shall evaluate the income of the family unit 464.6that is requesting payments under the diversionary work program. Countable income 464.7means gross earned and unearned income not excluded or disregarded under MFIP. 464.8The same disregards for earned income that are allowed under MFIP are allowed for 464.9the diversionary work program.464.10(b) The DWP grant is based on the family maintenance needs for which the DWP 464.11family unit is responsible plus a personal needs allowance. Housing and utilities, except 464.12for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual 464.13housing and utility expenses shall be used when determining the amount of the DWP grant.464.14(c) The maximum monthly benefit amount available under the diversionary work 464.15program is the difference between the family unit's needs under paragraph (b) and the 464.16family unit's countable income not to exceed the cash portion of the MFIP transitional 464.17standard of need as defined in section sections256J.08, subdivision 55a 85, and 256J.24, 464.18subdivision 5, for the family unit's size.464.19(d) Once the county has determined a grant amount, the DWP grant amount will 464.20not be decreased if the determination is based on the best information available at the 464.21time of approval and shall not be decreased because of any additional income to the 464.22family unit. The grant must be increased if a participant later verifies an increase in family 464.23maintenance needs or family unit size. The minimum cash benefit amount, if income and 464.24asset tests are met, is $10. Benefits of $10 shall not be vendor paid.464.25(e) When all criteria are met, including the development of an employment plan as 464.26described in subdivision 14 and eligibility exists for the month of application, the amount 464.27of benefits for the diversionary work program retroactive to the date of application is as 464.28specified in section 
         256J.35, paragraph (a).464.29(f) Any month during the four-month DWP period that a person receives a DWP 464.30benefit directly or through a vendor payment made on the person's behalf, that person is 464.31ineligible for MFIP or any other TANF cash assistance program except for benefits defined 464.32in section 
         256J.626, subdivision 2, clause (1).464.33If during the four-month period a family unit that receives DWP benefits moves to 464.34a county that has not established a diversionary work program, the family unit may be 464.35eligible for MFIP the month following the last month of the issuance of the DWP benefit.464.36EFFECTIVE DATE.This section is effective January 1, 2015.465.1    Sec. 31. [256P.001] APPLICABILITY.465.2General assistance and Minnesota supplemental aid under chapter 256D and 465.3programs governed by chapter 256I or 256J are subject to the requirements of this chapter, 465.4unless otherwise specified or exempted.465.5    Sec. 32. [256P.01] DEFINITIONS.465.6    Subdivision 1.Scope.For purposes of this chapter, the terms defined in this section 465.7have the meanings given them.465.8    Subd. 2.Agency."Agency" means any county, federally recognized Indian tribe, or 465.9multicounty social services collaboratives.465.10    Subd. 3.Earned income."Earned income" means cash or in-kind income earned 465.11through the receipt of wages, salary, commissions, profit from employment activities, net 465.12profit from self-employment activities, payments made by an employer for regularly 465.13accrued vacation or sick leave, and any other profit from activity earned through effort or 465.14labor. The income must be in return for, or as a result of, legal activity.465.15    Subd. 4.Earned income disregard."Earned income disregard" means earned 465.16income that is not counted according to section 256P.03 when determining eligibility and 465.17calculating the amount of the assistance payment.465.18    Subd. 5.Equity value."Equity value" means the amount of equity in personal 465.19property owned by a person and is determined by subtracting any outstanding 465.20encumbrances from the fair market value of the personal property.465.21    Subd. 6.Personal property."Personal property" means an item of value that 465.22is not real property.465.23    Subd. 7.Self-employment."Self-employment" means employment by an 465.24individual who:465.25(1) incurs costs in producing income and deducts these costs in order to equate the 465.26individual's income with income from sources where there are no production costs; and465.27(2) controls the individual's work by working either independently of an employer or 465.28freelance, or by running the business; or465.29(3) pays self-employment taxes.465.30    Sec. 33. [256P.02] PERSONAL PROPERTY LIMITATIONS.465.31    Subdivision 1.Property ownership.(a) The agency must apply paragraphs (b) to 465.32(e) to determine the value of personal property. The agency must use the equity value 465.33of legally available personal property to determine whether an applicant or participant 465.34is eligible for assistance.466.1(b) When personal property is jointly owned by two or more persons, the agency 466.2shall assume that each person owns an equal share, except that either person owns 466.3the entire sum of a joint personal checking or savings account. When an applicant or 466.4participant documents greater or lesser ownership, the agency must use that greater or 466.5lesser share to determine the equity value held by the applicant or participant. Other types 466.6of ownership must be evaluated according to law.466.7(c) Personal property owned by the applicant or participant must be presumed legally 466.8available to the applicant or participant unless the applicant or participant documents 466.9that the property is not legally available to the applicant or participant. When personal 466.10property is not legally available, its equity value must not be applied against the limits of 466.11subdivision 2.466.12(d) An applicant must disclose whether the applicant has transferred personal 466.13property valued in excess of the property limits in subdivision 2 for which reasonable 466.14compensation was not received within one year prior to application. A participant must 466.15disclose all transfers of property valued in excess of these limits, according to the reporting 466.16requirements in section 256J.30, subdivision 9. When a transfer of personal property 466.17without reasonable compensation has occurred:466.18(1) the person who transferred the property must provide the property's description, 466.19information needed to determine the property's equity value, the names of the persons who 466.20received the property, and the circumstances of and reasons for the transfer; and466.21(2) when the transferred property can be reasonably reacquired, or when reasonable 466.22compensation can be secured, the property is presumed legally available to the applicant 466.23or participant.466.24(e) A participant may build the equity value of personal property to the limits in 466.25subdivision 2.466.26    Subd. 2.Personal property limitations.(a) The equity value of an assistance unit's 466.27personal property listed in clauses (1) to (4) must not exceed $10,000 for applicants and 466.28participants. For purposes of this subdivision, personal property is limited to:466.29(1) cash;466.30(2) bank accounts;466.31(3) liquid stocks and bonds that can be readily accessed without a financial penalty; 466.32and466.33(4) vehicles not excluded under subdivision 3.466.34    Subd. 3.Vehicle exception.One vehicle per assistance unit member age 16 or older 466.35shall be excluded when determining the equity value of personal property. If the assistance 466.36unit owns more than one vehicle per assistance unit member age 16 or older, the agency 467.1shall determine the trade-in values of all additional vehicles and apply the values to the 467.2personal property limitations in subdivision 2. To establish the trade-in values of vehicles, 467.3an agency must use the National Automobile Dealers Association online car values and 467.4car prices guide. When a vehicle is not listed in the online guide, or when the applicant or 467.5participant disputes the trade-in value listed in the online guide as unreasonable given the 467.6condition of the particular vehicle, the agency may require the applicant or participant to 467.7document the trade-in value by securing a written statement from a motor vehicle dealer 467.8licensed under section 168.27, stating the amount that the dealer would pay to purchase 467.9the vehicle. The agency shall reimburse the applicant or participant for the cost of a 467.10written statement that documents a lower loan value.467.11EFFECTIVE DATE.This section is effective January 1, 2016.467.12    Sec. 34. [256P.03] EARNED INCOME DISREGARD.467.13    Subdivision 1.Exempted programs.Participants who qualify for Minnesota 467.14supplemental aid under chapter 256D and for group residential housing under chapter 256I 467.15on the basis of eligibility for Supplemental Security Income are exempt from this section.467.16    Subd. 2.Earned income disregard.The agency shall disregard the first $65 of 467.17earned income plus one-half of the remaining earned income per month.467.18EFFECTIVE DATE.This section is effective October 1, 2015.467.19    Sec. 35. [256P.04] DOCUMENTING, VERIFYING, AND RECERTIFYING 467.20ELIGIBILITY.467.21    Subdivision 1.Exemption.Participants who receive Minnesota supplemental aid 467.22and who maintain Supplemental Security Income eligibility under chapters 256D and 467.23256I are exempt from the reporting requirements of this section, except that the policies 467.24and procedures for transfers of assets are those used by the medical assistance program 467.25under section 256B.0595.467.26    Subd. 2.Verification of information.An agency must only require verification of 467.27information necessary to determine eligibility and the amount of the assistance payment. 467.28If necessary, the agency shall assist the applicant or participant in obtaining verifications 467.29and required documents when the applicant or participant is unable to do so.467.30    Subd. 3.Documentation.The applicant or participant must document the 467.31information required under subdivisions 4 to 7 or authorize the agency to verify the 467.32information. The applicant or participant has the burden of providing documentary 467.33evidence to verify eligibility. The agency must accept a signed personal statement from 468.1the applicant or participant when determining personal property values under section 468.2256P.02. The signed personal statement must include general penalty warnings and a 468.3disclaimer that any false or misrepresented information is subject to prosecution for fraud 468.4under sections 609.52 and 609.821 and perjury under section 609.48.468.5    Subd. 4.Factors to be verified.(a) The agency shall verify the following at 468.6application:468.7(1) identity of adults;468.8(2) age, if necessary to determine eligibility;468.9(3) immigration status;468.10(4) income;468.11(5) spousal support and child support payments made to persons outside the 468.12household;468.13(6) vehicles;468.14(7) checking and savings accounts;468.15(8) inconsistent information, if related to eligibility;468.16(9) residence; and468.17(10) Social Security number.468.18(b) Applicants who are qualified noncitizens and victims of domestic violence as 468.19defined under section 256J.08, subdivision 73, clause (7), are not required to verify the 468.20information in paragraph (a), clause (10). When a Social Security number is not provided 468.21to the agency for verification, this requirement is satisfied when each member of the 468.22assistance unit cooperates with the procedures for verification of Social Security numbers, 468.23issuance of duplicate cards, and issuance of new numbers which have been established 468.24jointly between the Social Security Administration and the commissioner.468.25    Subd. 5.MFIP-only verifications.In addition to subdivision 4, the agency shall 468.26verify the following for programs under chapter 256J:468.27(1) the presence of the minor child in the home, if questionable;468.28(2) the relationship of a minor child to caregivers in the assistance unit;468.29(3) pregnancy, if related to eligibility;468.30(4) school attendance, if related to eligibility;468.31(5) a claim of family violence, if used as a basis to qualify for the family violence 468.32waiver under chapter 256J; and468.33(6) disability, if used as the basis for reducing the hourly participation requirements 468.34under section 256J.55, subdivision 1, or for the type of activity included in an employment 468.35plan under section 256J.521, subdivision 2.469.1    Subd. 6.Personal property inconsistent information.If there is inconsistent 469.2information known to the agency when reporting personal property under section 256P.02, 469.3an agency must require the applicant or participant to document the information required 469.4under section 256P.02 or authorize the county agency to verify the information. The 469.5applicant or participant has the burden of providing documentary evidence to verify 469.6eligibility. The agency shall assist the applicant or participant in obtaining required 469.7documents when the applicant or participant is unable to do so.469.8    Subd. 7.Documenting and verifying inconsistent information.When the 469.9agency verifies inconsistent information under subdivision 4, paragraph (a), clause (8); 469.10subdivision 6; or subdivision 8, clause (3), the reason for verifying the information must 469.11be documented in the financial case record.469.12    Subd. 8.Recertification.The agency shall recertify eligibility in an annual 469.13interview with the participant. The interview may be conducted by telephone, by Internet 469.14telepresence, or face-to-face in the county office or in another location mutually agreed 469.15upon. A participant must be given the option of a telephone interview or Internet 469.16telepresence to recertify eligibility. During the interview, the agency shall verify the 469.17following:469.18(1) income, unless excluded, including self-employment earnings;469.19(2) assets when the value is within $200 of the asset limit; and469.20(3) inconsistent information, if related to eligibility.469.21    Subd. 9.MFIP-only recertification.In addition to subdivision 8, the agency shall 469.22verify the following for programs under chapter 256J:469.23(1) the presence of the minor child in the home, if questionable; and469.24(2) whether a single-caregiver household meets the requirements in section 469.25256J.575, subdivision 3.469.26    Subd. 10.Participant's completion of form for recertification of eligibility.A 469.27participant must complete forms prescribed by the commissioner which are required 469.28for recertification of eligibility according to subdivisions 8 and 9. An agency must end 469.29benefits when the participant fails to submit the recertification form and verifications 469.30before the end of the certification period. If the participant submits the recertification 469.31form within 30 days of the termination of benefits, benefits must be reinstated and made 469.32available retroactively for the full benefit month.469.33    Subd. 11.Participant's completion of household report form.(a) When a 469.34participant is required to complete a household report form, the following paragraphs apply.470.1(b) If the agency receives an incomplete household report form, the agency must 470.2immediately return the incomplete form and clearly state what the participant must do for 470.3the form to be complete.470.4(c) The automated eligibility system must send a notice of proposed termination of 470.5assistance to the participant if a complete household report form is not received by the 470.6agency. The automated notice must be mailed to the participant by approximately the 16th 470.7of the month. When a participant submits an incomplete form on or after the date a notice 470.8of proposed termination has been sent, the termination is valid unless the participant 470.9submits a complete form before the end of the month.470.10(d) The submission of a household report form is considered to have continued the 470.11participant's application for assistance if a complete household report form is received 470.12within a calendar month after the month in which the form was due. Assistance shall be 470.13paid for the period beginning with the first day of that calendar month.470.14(e) An agency must allow good cause exemptions for a participant required to 470.15complete a household report form when any of the following factors cause a participant to 470.16fail to submit a completed household report form before the end of the month in which 470.17the form is due:470.18(1) an employer delays completion of employment verification;470.19(2) the agency does not help a participant complete the household report form when 470.20the participant asks for help;470.21(3) a participant does not receive a household report form due to a mistake on the 470.22part of the department or the agency or a reported change in address;470.23(4) a participant is ill or physically or mentally incapacitated; or470.24(5) some other circumstance occurs that a participant could not avoid with reasonable 470.25care which prevents the participant from providing a completed household report form 470.26before the end of the month in which the form is due.470.27    Subd. 12.Contacting third parties.An agency must not request information 470.28about an applicant or participant that is not of public record from a source other than 470.29agencies, the department, or the United States Department of Health and Human Services 470.30without the applicant's or participant's prior written consent. An applicant's signature 470.31on an application form constitutes consent for contact with the sources specified on the 470.32application. An agency may use a single consent form to contact a group of similar 470.33sources, such as banks or insurance agencies, but the sources to be contacted must be 470.34identified by the agency prior to requesting an applicant's consent.470.35    Subd. 13.Notice to undocumented persons; release of private data.Agencies, 470.36in consultation with the commissioner of human services, shall provide notification 471.1to undocumented persons regarding the release of personal data to the United States 471.2Citizenship and Immigration Services and develop protocols regarding the release or 471.3sharing of data about undocumented persons with the United States Citizenship and 471.4Immigration Services as required under sections 404, 411A, and 434 of the Personal 471.5Responsibility and Work Opportunity Reconciliation Act of 1996.471.6    Subd. 14.Requirement to report to United States Citizenship and Immigration 471.7Services.The commissioner shall comply with the reporting requirements under United 471.8States Code, title 42, section 611a, and any federal regulation or guidance adopted under 471.9that law.471.10    Subd. 15.Personal statement.The agency may accept a signed personal statement 471.11from the applicant or participant explaining the reasons that the documentation requested 471.12in subdivision 3 is unavailable as sufficient documentation at the time of application, 471.13recertification, or change related to eligibility only for the following factors:471.14(1) a claim of family violence, if used as a basis to qualify for the family violence 471.15waiver;471.16(2) relationship of a minor child to caregivers in the assistance unit;471.17(3) citizenship status from a noncitizen who reports to be, or is identified as, a victim 471.18of severe forms of trafficking in persons, if the noncitizen reports that the noncitizen's 471.19immigration documents are being held by an individual or group of individuals against the 471.20noncitizen's will. The noncitizen must follow up with the Office of Refugee Resettlement 471.21(ORR) to pursue certification. If verification that certification is being pursued is 471.22not received within 30 days, the case must be closed and the agency shall pursue 471.23overpayments. The ORR documents certifying the noncitizen's status as a victim of severe 471.24forms of trafficking in persons, or the reason for the delay in processing, must be received 471.25within 90 days, or the case must be closed and the agency shall pursue overpayments; and471.26(4) other documentation unavailable for reasons beyond the control of the applicant 471.27or participant. The applicant or participant must have made reasonable attempts to obtain 471.28the documents requested under subdivision 3.471.29    Subd. 16.Excluded resources.Payments of funds made according to litigation and 471.30subsequent appropriation by the United States Congress to compensate members of Indian 471.31tribes for the taking of tribal lands by the federal government are excluded.471.32EFFECTIVE DATE.This section is effective February 1, 2015.471.33    Sec. 36. [256P.05] SELF-EMPLOYMENT EARNINGS.472.1    Subdivision 1.Exempted programs.Participants who qualify for Minnesota 472.2supplemental aid under chapter 256D and for group residential housing under chapter 256I 472.3on the basis of eligibility for Supplemental Security Income are exempt from this section.472.4    Subd. 2.Self-employment income determinations.An agency must determine 472.5self-employment income, which is either:472.6(1) one-half of gross earnings from self-employment; or472.7(2) taxable income as determined from an Internal Revenue Service tax form that 472.8has been filed with the Internal Revenue Service within the last year. A 12-month average 472.9using net taxable income shall be used to budget monthly income.472.10    Subd. 3.Self-employment budgeting.(a) The self-employment budget period 472.11begins in the month of application or in the first month of self-employment. Applicants 472.12and participants must choose one of the methods described in subdivision 2 for 472.13determining self-employment earned income.472.14(b) Applicants and participants who elect to use taxable income as described in 472.15subdivision 2, clause (2), to determine self-employment income must continue to use this 472.16method until recertification, unless there is an unforeseen significant change in gross 472.17income equaling a decline in gross income of the amount equal to or greater than the 472.18earned income disregard as defined in section 256P.03 from the income used to determine 472.19the benefit for the current month.472.20(c) For applicants and participants who elect to use one-half of gross earnings as 472.21described in subdivision 2, clause (1), to determine self-employment income, earnings 472.22must be counted as income in the month received.472.23EFFECTIVE DATE.This section is effective February 1, 2015.472.24    Sec. 37.  REPEALER.472.25(a) Minnesota Statutes 2012, sections 256J.08, subdivisions 55a and 82a; and 472.26256J.24, subdivision 9, are repealed effective January 1, 2015.472.27(b) Minnesota Statutes 2012, sections 256D.405, subdivisions 1a and 2; 256J.08, 472.28subdivision 42; and 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, and 8, are repealed effective 472.29February 1, 2015.472.30(c) Minnesota Statutes 2012, section 256D.06, subdivision 1b, is repealed effective 472.31October 1, 2015.472.32(d) Minnesota Statutes 2013 Supplement, section 256J.08, subdivision 24, is 472.33repealed effective October 1, 2015.472.34(e) Minnesota Statutes 2012, sections 256D.08, subdivision 2; and 256J.20, are 472.35repealed effective January 1, 2016.473.1ARTICLE 22473.2HUMAN SERVICES FORECAST ADJUSTMENTS

473.3Section 1. HUMAN SERVICES APPROPRIATION.

473.4The sums shown in the columns marked "Appropriations" are added to or, if shown 473.5in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article 473.614, from the general fund or any fund named to the Department of Human Services for 473.7the purposes specified in this article, to be available for the fiscal year indicated for each 473.8purpose. The figures "2014" and "2015" used in this article mean that the appropriations 473.9listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015, 473.10respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. 473.11"The biennium" is fiscal years 2014 and 2015.

473.12APPROPRIATIONS473.13Available for the Year473.14Ending June 30473.1520142015

473.16473.17Sec. 2. COMMISSIONER OF HUMAN SERVICES

473.18Subdivision 1.Total Appropriation$(196,927,000)$64,288,000

473.19Appropriations by Fund473.20General Fund(153,497,000)(25,282,000)473.21473.22Health Care Access Fund(36,533,000) 91,294,000473.23Federal TANF(6,897,000)(1,724,000)

473.24Subd. 2.Forecasted Programs

473.25(a) MFIP/DWP

473.26Appropriations by Fund473.27General Fund 3,571,000173,000473.28Federal TANF(6,475,000)(1,298,000)

473.29(b) MFIP Child Care Assistance(684,000)11,114,000

473.30(c) General Assistance(2,569,000)(1,940,000)

473.31(d) Minnesota Supplemental Aid(690,000)(614,000)

473.32(e) Group Residential Housing 250,000(1,740,000)

473.33(f) MinnesotaCare(34,838,000) 96,340,000

474.1These appropriations are from the health care 474.2access fund.

474.3(g) Medical Assistance

474.4Appropriations by Fund474.5General Fund(149,494,000)(27,075,000)474.6474.7Health Care Access Fund(1,695,000)(5,046,000)

474.8(h) Alternative Care Program(6,936,000)(13,260,000)

474.9(i) CCDTF Entitlements 3,707,000 8,060,000

474.10Subd. 3.Technical Activities(422,000)(426,000)

474.11These appropriations are from the federal 474.12TANF fund.474.13    Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

474.14474.15Subdivision 1.Total Appropriation$6,438,485,000 6,437,815,000$6,457,117,000 6,456,311,000

474.16Appropriations by Fund474.1720142015474.18474.19General5,654,765,000 5,654,095,0005,677,458,000 5,676,652,000474.20474.21State Government 
                  		Special Revenue4,099,0004,510,000474.22Health Care Access519,816,000518,446,000474.23Federal TANF257,915,000254,813,000474.24Lottery Prize Fund1,890,0001,890,000

474.25Receipts for Systems Projects. 474.26Appropriations and federal receipts for 474.27information systems projects for MAXIS, 474.28PRISM, MMIS, and SSIS must be deposited 474.29in the state system account authorized 474.30in Minnesota Statutes, section 
         256.014. 474.31Money appropriated for computer projects 474.32approved by the commissioner of Minnesota 474.33information technology services, funded 474.34by the legislature, and approved by the 474.35commissioner of management and budget, 475.1may be transferred from one project to 475.2another and from development to operations 475.3as the commissioner of human services 475.4considers necessary. Any unexpended 475.5balance in the appropriation for these 475.6projects does not cancel but is available for 475.7ongoing development and operations.475.8Nonfederal Share Transfers. The 475.9nonfederal share of activities for which 475.10federal administrative reimbursement is 475.11appropriated to the commissioner may be 475.12transferred to the special revenue fund.475.13ARRA Supplemental Nutrition Assistance 475.14Benefit Increases. The funds provided for 475.15food support benefit increases under the 475.16Supplemental Nutrition Assistance Program 475.17provisions of the American Recovery and 475.18Reinvestment Act (ARRA) of 2009 must be 475.19used for benefit increases beginning July 1, 475.202009.475.21Supplemental Nutrition Assistance 475.22Program Employment and Training. 475.23(1) Notwithstanding Minnesota Statutes, 475.24sections 
         256D.051, subdivisions 1a, 6b, 475.25and 6c, and 
         256J.626, federal Supplemental 475.26Nutrition Assistance employment and 475.27training funds received as reimbursement of 475.28MFIP consolidated fund grant expenditures 475.29for diversionary work program participants 475.30and child care assistance program 475.31expenditures must be deposited in the general 475.32fund. The amount of funds must be limited to 475.33$4,900,000 per year in fiscal years 2014 and 475.342015, and to $4,400,000 per year in fiscal 476.1years 2016 and 2017, contingent on approval 476.2by the federal Food and Nutrition Service.476.3(2) Consistent with the receipt of the federal 476.4funds, the commissioner may adjust the 476.5level of working family credit expenditures 476.6claimed as TANF maintenance of effort. 476.7Notwithstanding any contrary provision in 476.8this article, this rider expires June 30, 2017.476.9TANF Maintenance of Effort. (a) In order 476.10to meet the basic maintenance of effort 476.11(MOE) requirements of the TANF block grant 476.12specified under Code of Federal Regulations, 476.13title 45, section 263.1, the commissioner may 476.14only report nonfederal money expended for 476.15allowable activities listed in the following 476.16clauses as TANF/MOE expenditures:476.17(1) MFIP cash, diversionary work program, 476.18and food assistance benefits under Minnesota 476.19Statutes, chapter 256J;476.20(2) the child care assistance programs 476.21under Minnesota Statutes, sections 
         119B.03476.22and 
         119B.05, and county child care 476.23administrative costs under Minnesota 476.24Statutes, section 
         119B.15;476.25(3) state and county MFIP administrative 476.26costs under Minnesota Statutes, chapters 476.27256J and 256K;476.28(4) state, county, and tribal MFIP 476.29employment services under Minnesota 476.30Statutes, chapters 256J and 256K;476.31(5) expenditures made on behalf of legal 476.32noncitizen MFIP recipients who qualify for 476.33the MinnesotaCare program under Minnesota 476.34Statutes, chapter 256L;477.1(6) qualifying working family credit 477.2expenditures under Minnesota Statutes, 477.3section 
         290.0671;477.4(7) qualifying Minnesota education credit 477.5expenditures under Minnesota Statutes, 477.6section 
         290.0674; and477.7(8) qualifying Head Start expenditures under 477.8Minnesota Statutes, section 
         119A.50.477.9(b) The commissioner shall ensure that 477.10sufficient qualified nonfederal expenditures 477.11are made each year to meet the state's 477.12TANF/MOE requirements. For the activities 477.13listed in paragraph (a), clauses (2) to 477.14(8), the commissioner may only report 477.15expenditures that are excluded from the 477.16definition of assistance under Code of 477.17Federal Regulations, title 45, section 
         260.31.477.18(c) For fiscal years beginning with state fiscal 477.19year 2003, the commissioner shall ensure 477.20that the maintenance of effort used by the 477.21commissioner of management and budget 477.22for the February and November forecasts 477.23required under Minnesota Statutes, section 477.2416A.103
         , contains expenditures under 477.25paragraph (a), clause (1), equal to at least 16 477.26percent of the total required under Code of 477.27Federal Regulations, title 45, section 263.1.477.28(d) The requirement in Minnesota Statutes, 477.29section 
         256.011, subdivision 3, that federal 477.30grants or aids secured or obtained under that 477.31subdivision be used to reduce any direct 477.32appropriations provided by law, do not apply 477.33if the grants or aids are federal TANF funds.477.34(e) For the federal fiscal years beginning on 477.35or after October 1, 2007, the commissioner 478.1may not claim an amount of TANF/MOE in 478.2excess of the 75 percent standard in Code 478.3of Federal Regulations, title 45, section 478.4263.1(a)(2), except:478.5(1) to the extent necessary to meet the 80 478.6percent standard under Code of Federal 478.7Regulations, title 45, section 263.1(a)(1), 478.8if it is determined by the commissioner 478.9that the state will not meet the TANF work 478.10participation target rate for the current year;478.11(2) to provide any additional amounts 478.12under Code of Federal Regulations, title 45, 478.13section 264.5, that relate to replacement of 478.14TANF funds due to the operation of TANF 478.15penalties; and478.16(3) to provide any additional amounts that 478.17may contribute to avoiding or reducing 478.18TANF work participation penalties through 478.19the operation of the excess MOE provisions 478.20of Code of Federal Regulations, title 45, 478.21section 
         261.43 (a)(2).478.22For the purposes of clauses (1) to (3), 478.23the commissioner may supplement the 478.24MOE claim with working family credit 478.25expenditures or other qualified expenditures 478.26to the extent such expenditures are otherwise 478.27available after considering the expenditures 478.28allowed in this subdivision and subdivisions 478.292 and 3.478.30(f) Notwithstanding any contrary provision 478.31in this article, paragraphs (a) to (e) expire 478.32June 30, 2017.478.33Working Family Credit Expenditures 478.34as TANF/MOE. The commissioner may 478.35claim as TANF maintenance of effort up to 479.1$6,707,000 per year of working family credit 479.2expenditures in each fiscal year.479.3EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.479.4    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by 479.5Laws 2013, chapter 144, section 24, is amended to read:

479.6Subd. 4.Central Office

479.7The amounts that may be spent from this 479.8appropriation for each purpose are as follows:

479.9(a) Operations

479.10Appropriations by Fund479.11General101,979,00096,858,000479.12479.13State Government 
                  		Special Revenue3,974,0004,385,000479.14Health Care Access13,177,00013,004,000479.15Federal TANF100,000100,000

479.16DHS Receipt Center Accounting. The 479.17commissioner is authorized to transfer 479.18appropriations to, and account for DHS 479.19receipt center operations in, the special 479.20revenue fund.479.21Administrative Recovery; Set-Aside. The 479.22commissioner may invoice local entities 479.23through the SWIFT accounting system as an 479.24alternative means to recover the actual cost 479.25of administering the following provisions:479.26(1) Minnesota Statutes, section 
         125A.744, 479.27subdivision 3
         ;479.28(2) Minnesota Statutes, section 
         245.495, 479.29paragraph (b);479.30(3) Minnesota Statutes, section 
         256B.0625, 479.31subdivision 20
         , paragraph (k);479.32(4) Minnesota Statutes, section 
         256B.0924, 479.33subdivision 6
         , paragraph (g);480.1(5) Minnesota Statutes, section 
         256B.0945, 480.2subdivision 4
         , paragraph (d); and480.3(6) Minnesota Statutes, section 
         256F.10, 480.4subdivision 6
         , paragraph (b).480.5Systems Modernization. The following 480.6amounts are appropriated for transfer to 480.7the state systems account authorized in 480.8Minnesota Statutes, section 
         256.014:480.9(1) $1,825,000 in fiscal year 2014 and 480.10$2,502,000 in fiscal year 2015 is for the 480.11state share of Medicaid-allocated costs of 480.12the health insurance exchange information 480.13technology and operational structure. The 480.14funding base is $3,222,000 in fiscal year 2016 480.15and $3,037,000 in fiscal year 2017 but shall 480.16not be included in the base thereafter; and480.17(2) $9,344,000 in fiscal year 2014 and 480.18$3,660,000 in fiscal year 2015 are for the 480.19modernization and streamlining of agency 480.20eligibility and child support systems. The 480.21funding base is $5,921,000 in fiscal year 480.222016 and $1,792,000 in fiscal year 2017 but 480.23shall not be included in the base thereafter.480.24The unexpended balance of the $9,344,000 480.25appropriation in fiscal year 2014 and the 480.26$3,660,000 appropriation in fiscal year 2015 480.27must be transferred from the Department of 480.28Human Services state systems account to 480.29the Office of Enterprise Technology when 480.30the Office of Enterprise Technology has 480.31negotiated a federally approved internal 480.32service fund rates and billing process with 480.33sufficient internal accounting controls to 480.34properly maximize federal reimbursement 480.35to Minnesota for human services system 481.1modernization projects, but not later than 481.2June 30, 2015.481.3If contingent funding is fully or partially 481.4disbursed under article 15, section 3, and 481.5transferred to the state systems account, the 481.6unexpended balance of that appropriation 481.7must be transferred to the Office of Enterprise 481.8Technology in accordance with this clause. 481.9Contingent funding must not exceed 481.10$11,598,000 for the biennium.481.11Base Adjustment. The general fund base 481.12is increased by $2,868,000 in fiscal year 481.132016 and decreased by $1,206,000 in fiscal 481.14year 2017. The health access fund base is 481.15decreased by $551,000 in fiscal years 2016 481.16and 2017. The state government special 481.17revenue fund base is increased by $4,000 in 481.18fiscal year 2016 and decreased by $236,000 481.19in fiscal year 2017.

481.20(b) Children and Families

481.21Appropriations by Fund481.22General8,023,0008,015,000481.23Federal TANF2,282,0002,282,000

481.24Financial Institution Data Match and 481.25Payment of Fees. The commissioner is 481.26authorized to allocate up to $310,000 each 481.27year in fiscal years 2014 and 2015 from the 481.28PRISM special revenue account to make 481.29payments to financial institutions in exchange 481.30for performing data matches between account 481.31information held by financial institutions 481.32and the public authority's database of child 481.33support obligors as authorized by Minnesota 481.34Statutes, section 
         13B.06, subdivision 7.482.1Base Adjustment. The general fund base is 482.2decreased by $300,000 in fiscal years 2016 482.3and 2017. The TANF fund base is increased 482.4by $300,000 in fiscal years 2016 and 2017.

482.5(c) Health Care

482.6Appropriations by Fund482.7General14,028,00013,826,000482.8Health Care Access28,442,00031,137,000

482.9Base Adjustment. The general fund base 482.10is decreased by $86,000 in fiscal year 2016 482.11and by $86,000 in fiscal year 2017. The 482.12health care access fund base is increased 482.13by $6,954,000 in fiscal year 2016 and by 482.14$5,489,000 in fiscal year 2017.

482.15(d) Continuing Care

482.16Appropriations by Fund482.17General20,993,00022,359,000482.18482.19State Government 
                  		Special Revenue125,000125,000

482.20Base Adjustment. The general fund base is 482.21increased by $1,690,000 in fiscal year 2016 482.22and by $798,000 in fiscal year 2017.

482.23(e) Chemical and Mental Health

482.24Appropriations by Fund482.25482.26General4,639,000 4,571,0004,490,000 4,431,000482.27Lottery Prize Fund157,000157,000

482.28Of the general fund appropriation, $68,000 482.29in fiscal year 2014 and $59,000 in fiscal year 482.302015 are for compulsive gambling treatment 482.31under Minnesota Statutes, section 297E.02, 482.32subdivision 3, paragraph (c).482.33EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.483.1    Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 483.2Laws 2013, chapter 144, section 25, is amended to read:

483.3Subd. 6.Grant Programs

483.4The amounts that may be spent from this 483.5appropriation for each purpose are as follows:

483.6(a) Support Services Grants

483.7Appropriations by Fund483.8General8,915,00013,333,000483.9Federal TANF94,611,00094,611,000

483.10Paid Work Experience. $2,168,000 483.11each year in fiscal years 2015 and 2016 483.12is from the general fund for paid work 483.13experience for long-term MFIP recipients. 483.14Paid work includes full and partial wage 483.15subsidies and other related services such as 483.16job development, marketing, preworksite 483.17training, job coaching, and postplacement 483.18services. These are onetime appropriations. 483.19Unexpended funds for fiscal year 2015 do not 483.20cancel, but are available to the commissioner 483.21for this purpose in fiscal year 2016.483.22Work Study Funding for MFIP 483.23Participants. $250,000 each year in fiscal 483.24years 2015 and 2016 is from the general fund 483.25to pilot work study jobs for MFIP recipients 483.26in approved postsecondary education 483.27programs. This is a onetime appropriation. 483.28Unexpended funds for fiscal year 2015 do 483.29not cancel, but are available for this purpose 483.30in fiscal year 2016.483.31Local Strategies to Reduce Disparities.483.32$2,000,000 each year in fiscal years 2015 483.33and 2016 is from the general fund for 483.34local projects that focus on services for 483.35subgroups within the MFIP caseload 484.1who are experiencing poor employment 484.2outcomes. These are onetime appropriations. 484.3Unexpended funds for fiscal year 2015 do not 484.4cancel, but are available to the commissioner 484.5for this purpose in fiscal year 2016.484.6Home Visiting Collaborations for MFIP 484.7Teen Parents. $200,000 per year in fiscal 484.8years 2014 and 2015 is from the general fund 484.9and $200,000 in fiscal year 2016 is from the 484.10federal TANF fund for technical assistance 484.11and training to support local collaborations 484.12that provide home visiting services for 484.13MFIP teen parents. The general fund 484.14appropriation is onetime. The federal TANF 484.15fund appropriation is added to the base.484.16Performance Bonus Funds for Counties.484.17The TANF fund base is increased by 484.18$1,500,000 each year in fiscal years 2016 484.19and 2017. The commissioner must allocate 484.20this amount each year to counties that exceed 484.21their expected range of performance on the 484.22annualized three-year self-support index 484.23as defined in Minnesota Statutes, section 484.24256J.751, subdivision 2
         , clause (6). This is a 484.25permanent base adjustment. Notwithstanding 484.26any contrary provisions in this article, this 484.27provision expires June 30, 2016.484.28Base Adjustment. The general fund base is 484.29decreased by $200,000 in fiscal year 2016 484.30and $4,618,000 in fiscal year 2017. The 484.31TANF fund base is increased by $1,700,000 484.32in fiscal years 2016 and 2017.

484.33484.34(b) Basic Sliding Fee Child Care Assistance Grants36,836,00042,318,000

485.1Base Adjustment. The general fund base is 485.2increased by $3,778,000 in fiscal year 2016 485.3and by $3,849,000 in fiscal year 2017.

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

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

485.6Federal Child Support Demonstration 485.7Grants. Federal administrative 485.8reimbursement resulting from the federal 485.9child support grant expenditures authorized 485.10under United States Code, title 42, section 485.111315, is appropriated to the commissioner 485.12for this activity.

485.13(e) Children's Services Grants

485.14Appropriations by Fund485.15General49,760,00052,961,000485.16Federal TANF140,000140,000

485.17Adoption Assistance and Relative Custody 485.18Assistance. $37,453,000 in fiscal year 2014 485.19and $37,453,000 in fiscal year 2015 is for 485.20the adoption assistance and relative custody 485.21assistance programs. The commissioner 485.22shall determine with the commissioner of 485.23Minnesota Management and Budget the 485.24appropriation for Northstar Care for Children 485.25effective January 1, 2015. The commissioner 485.26may transfer appropriations for adoption 485.27assistance, relative custody assistance, and 485.28Northstar Care for Children between fiscal 485.29years and among programs to adjust for 485.30transfers across the programs.485.31Title IV-E Adoption Assistance. Additional 485.32federal reimbursements to the state as a result 485.33of the Fostering Connections to Success 485.34and Increasing Adoptions Act's expanded 485.35eligibility for Title IV-E adoption assistance 486.1are appropriated for postadoption services, 486.2including a parent-to-parent support network.486.3Privatized Adoption Grants. Federal 486.4reimbursement for privatized adoption grant 486.5and foster care recruitment grant expenditures 486.6is appropriated to the commissioner for 486.7adoption grants and foster care and adoption 486.8administrative purposes.486.9Adoption Assistance Incentive Grants.486.10Federal funds available during fiscal years 486.112014 and 2015 for adoption incentive grants 486.12are appropriated for postadoption services, 486.13including a parent-to-parent support network.486.14Base Adjustment. The general fund base is 486.15increased by $5,913,000 in fiscal year 2016 486.16and by $10,297,000 in fiscal year 2017.

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

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

486.19Minnesota Food Assistance Program. 486.20Unexpended funds for the Minnesota food 486.21assistance program for fiscal year 2014 do 486.22not cancel but are available for this purpose 486.23in fiscal year 2015.486.24Transitional Housing. $250,000 each year 486.25is for the transitional housing programs under 486.26Minnesota Statutes, section 
         256E.33.486.27Emergency Services. $250,000 each year 486.28is for emergency services grants under 486.29Minnesota Statutes, section 
         256E.36.486.30Family Assets for Independence. $250,000 486.31each year is for the Family Assets for 486.32Independence Minnesota program. This 486.33appropriation is available in either year of the 487.1biennium and may be transferred between 487.2fiscal years.487.3Food Shelf Programs. $375,000 in fiscal 487.4year 2014 and $375,000 in fiscal year 487.52015 are for food shelf programs under 487.6Minnesota Statutes, section 
         256E.34. If the 487.7appropriation for either year is insufficient, 487.8the appropriation for the other year is 487.9available for it. Notwithstanding Minnesota 487.10Statutes, section 
         256E.34, subdivision 4, no 487.11portion of this appropriation may be used 487.12by Hunger Solutions for its administrative 487.13expenses, including but not limited to rent 487.14and salaries.487.15Homeless Youth Act. $2,000,000 in fiscal 487.16year 2014 and $2,000,000 in fiscal year 2015 487.17is for purposes of Minnesota Statutes, section 487.18256K.45
         .487.19Safe Harbor Shelter and Housing. 487.20$500,000 in fiscal year 2014 and $500,000 in 487.21fiscal year 2015 is for a safe harbor shelter 487.22and housing fund for housing and supportive 487.23services for youth who are sexually exploited. 

487.24(h) Health Care Grants

487.25Appropriations by Fund487.26General190,000190,000487.27Health Care Access190,000190,000

487.28Emergency Medical Assistance Referral 487.29and Assistance Grants. (a) The 487.30commissioner of human services shall 487.31award grants to nonprofit programs that 487.32provide immigration legal services based 487.33on indigency to provide legal services for 487.34immigration assistance to individuals with 487.35emergency medical conditions or complex 488.1and chronic health conditions who are not 488.2currently eligible for medical assistance 488.3or other public health care programs, but 488.4who may meet eligibility requirements with 488.5immigration assistance.488.6(b) The grantees, in collaboration with 488.7hospitals and safety net providers, shall 488.8provide referral assistance to connect 488.9individuals identified in paragraph (a) with 488.10alternative resources and services to assist in 488.11meeting their health care needs. $100,000 488.12is appropriated in fiscal year 2014 and 488.13$100,000 in fiscal year 2015. This is a 488.14onetime appropriation.488.15Base Adjustment. The general fund is 488.16decreased by $100,000 in fiscal year 2016 488.17and $100,000 in fiscal year 2017.

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

488.19Base Adjustment. The general fund is 488.20increased by $1,150,000 in fiscal year 2016 488.21and $1,151,000 in fiscal year 2017.488.22Community Service Development 488.23Grants and Community Services Grants.488.24Community service development grants and 488.25community services grants are reduced by 488.26$1,150,000 each year. This is a onetime 488.27reduction.

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

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

488.30Advocating Change Together. $310,000 in 488.31fiscal year 2014 is for a grant to Advocating 488.32Change Together (ACT) to maintain and 488.33promote services for persons with intellectual 488.34and developmental disabilities throughout 489.1the state. This appropriation is onetime. Of 489.2this appropriation:489.3(1) $120,000 is for direct costs associated 489.4with the delivery and evaluation of 489.5peer-to-peer training programs administered 489.6throughout the state, focusing on education, 489.7employment, housing, transportation, and 489.8voting;489.9(2) $100,000 is for delivery of statewide 489.10conferences focusing on leadership and 489.11skill development within the disability 489.12community; and489.13(3) $90,000 is for administrative and general 489.14operating costs associated with managing 489.15or maintaining facilities, program delivery, 489.16staff, and technology.489.17Base Adjustment. The general fund base 489.18is increased by $535,000 in fiscal year 2016 489.19and by $709,000 in fiscal year 2017.

489.20(l) Adult Mental Health Grants

489.21Appropriations by Fund489.22489.23General71,199,000 70,597,00069,530,000 68,783,000489.24Health Care Access750,000750,000489.25Lottery Prize1,733,0001,733,000

489.26Compulsive Gambling Treatment. Of the 489.27general fund appropriation, $602,000 in 489.28fiscal year 2014 and $747,000 in fiscal year 489.292015 are for compulsive gambling treatment 489.30under Minnesota Statutes, section 297E.02, 489.31subdivision 3, paragraph (c).489.32Problem Gambling. $225,000 in fiscal year 489.332014 and $225,000 in fiscal year 2015 is 489.34appropriated from the lottery prize fund for a 489.35grant to the state affiliate recognized by the 490.1National Council on Problem Gambling. The 490.2affiliate must provide services to increase 490.3public awareness of problem gambling, 490.4education and training for individuals and 490.5organizations providing effective treatment 490.6services to problem gamblers and their 490.7families, and research relating to problem 490.8gambling. 490.9Funding Usage. Up to 75 percent of a fiscal 490.10year's appropriations for adult mental health 490.11grants may be used to fund allocations in that 490.12portion of the fiscal year ending December 490.1331.490.14Base Adjustment. The general fund base is 490.15decreased by $4,427,000 $4,441,000  in fiscal 490.16years 2016 and 2017.490.17Mental Health Pilot Project. $230,000 490.18each year is for a grant to the Zumbro 490.19Valley Mental Health Center. The grant 490.20shall be used to implement a pilot project 490.21to test an integrated behavioral health care 490.22coordination model. The grant recipient must 490.23report measurable outcomes and savings 490.24to the commissioner of human services 490.25by January 15, 2016. This is a onetime 490.26appropriation.490.27High-risk adults. $200,000 in fiscal 490.28year 2014 is for a grant to the nonprofit 490.29organization selected to administer the 490.30demonstration project for high-risk adults 490.31under Laws 2007, chapter 54, article 1, 490.32section 19, in order to complete the project. 490.33This is a onetime appropriation.

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

491.1Text Message Suicide Prevention 491.2Program. $625,000 in fiscal year 2014 and 491.3$625,000 in fiscal year 2015 is for a grant 491.4to a nonprofit organization to establish and 491.5implement a statewide text message suicide 491.6prevention program. The program shall 491.7implement a suicide prevention counseling 491.8text line designed to use text messaging to 491.9connect with crisis counselors and to obtain 491.10emergency information and referrals to 491.11local resources in the local community. The 491.12program shall include training within schools 491.13and communities to encourage the use of the 491.14program.491.15Mental Health First Aid Training. $22,000 491.16in fiscal year 2014 and $23,000 in fiscal 491.17year 2015 is to train teachers, social service 491.18personnel, law enforcement, and others who 491.19come into contact with children with mental 491.20illnesses, in children and adolescents mental 491.21health first aid training.491.22Funding Usage. Up to 75 percent of a fiscal 491.23year's appropriation for child mental health 491.24grants may be used to fund allocations in that 491.25portion of the fiscal year ending December 491.2631.

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

491.28SBIRT Training. (1) $300,000 each year is 491.29for grants to train primary care clinicians to 491.30provide substance abuse brief intervention 491.31and referral to treatment (SBIRT). This is a 491.32onetime appropriation. The commissioner of 491.33human services shall apply to SAMHSA for 491.34an SBIRT professional training grant.492.1(2) If the commissioner of human services 492.2receives a grant under clause (1) funds 492.3appropriated under this clause, equal to 492.4the grant amount, up to the available 492.5appropriation, shall be transferred to the 492.6Minnesota Organization on Fetal Alcohol 492.7Syndrome (MOFAS). MOFAS must use 492.8the funds for grants. Grant recipients must 492.9be selected from communities that are 492.10not currently served by federal Substance 492.11Abuse Prevention and Treatment Block 492.12Grant funds. Grant money must be used to 492.13reduce the rates of fetal alcohol syndrome 492.14and fetal alcohol effects, and the number of 492.15drug-exposed infants. Grant money may be 492.16used for prevention and intervention services 492.17and programs, including, but not limited to, 492.18community grants, professional eduction, 492.19public awareness, and diagnosis.492.20Fetal Alcohol Syndrome Grant. $180,000 492.21each year from the general fund is for a 492.22grant to the Minnesota Organization on Fetal 492.23Alcohol Syndrome (MOFAS) to support 492.24nonprofit Fetal Alcohol Spectrum Disorders 492.25(FASD) outreach prevention programs 492.26in Olmsted County. This is a onetime 492.27appropriation.492.28Base Adjustment. The general fund base is 492.29decreased by $480,000 in fiscal year 2016 492.30and $480,000 in fiscal year 2017.492.31EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.492.32    Sec. 6. EFFECTIVE DATE.492.33Sections 1 and 2 are effective the day following final enactment.