1.1 	A bill for an act
1.2 	relating to state government; making adjustments to health and human services 
1.3 	appropriations; making changes to provisions related to health care, the 
1.4 	Department of Health, children and family services, continuing care, background 
1.5 	studies, chemical dependency, and child support; requiring reporting of potential 
1.6 	welfare fraud; providing for data sharing; requiring eligibility determinations; 
1.7 	providing rulemaking authority; providing penalties; encouraging the University 
1.8 	of Minnesota to request funding for rural primary care training; requiring studies 
1.9 	and reports; providing appointments; appropriating money;amending Minnesota 
1.10 	Statutes 2010, sections 62A.047; 62J.496, subdivision 2; 62Q.80; 72A.201, 
1.11 	subdivision 8; 144.292, subdivision 6; 144.298, subdivision 2; 144.5509; 
1.12 	144A.073, by adding a subdivision; 144A.351; 144D.04, subdivision 2; 145.906; 
1.13 	245.697, subdivision 1; 245A.03, by adding a subdivision; 245A.11, subdivisions 
1.14 	2a, 7, 7a; 245B.07, subdivision 1; 245C.04, subdivision 6; 245C.05, subdivision 
1.15 	7; 252.27, subdivision 2a; 254A.19, by adding a subdivision; 256.01, by adding 
1.16 	subdivisions; 256.975, subdivision 7; 256.9831, subdivision 2; 256B.056, 
1.17 	subdivision 1a; 256B.0625, subdivision 28a, by adding subdivisions; 256B.0659, 
1.18 	by adding a subdivision; 256B.0751, by adding a subdivision; 256B.0911, by 
1.19 	adding subdivisions; 256B.092, subdivisions 1b, 7; 256B.0943, subdivision 9; 
1.20 	256B.431, subdivision 17e, by adding a subdivision; 256B.434, subdivision 
1.21 	10; 256B.441, by adding a subdivision; 256B.48, by adding a subdivision; 
1.22 	256B.69, subdivision 9, by adding subdivisions; 256D.06, subdivision 1b; 
1.23 	256D.44, subdivision 5; 256E.37, subdivision 1; 256I.05, subdivision 1e; 
1.24 	256J.26, subdivision 1, by adding a subdivision; 256J.575, subdivisions 1, 2, 5, 
1.25 	6, 8; 256L.07, subdivision 3; 518A.40, subdivision 4; 626.556, by adding a 
1.26 	subdivision; Minnesota Statutes 2011 Supplement, sections 62E.14, subdivision 
1.27 	4g; 119B.13, subdivision 7; 144.1222, subdivision 5; 245A.03, subdivision 7; 
1.28 	256.987, subdivisions 1, 2, by adding subdivisions; 256B.056, subdivision 3; 
1.29 	256B.057, subdivision 9; 256B.0625, subdivision 38; 256B.0631, subdivision 
1.30 	1; 256B.0659, subdivision 11; 256B.0911, subdivisions 3a, 3c; 256B.0915, 
1.31 	subdivisions 3e, 3h; 256B.097, subdivision 3; 256B.49, subdivisions 14, 15, 23; 
1.32 	256B.5012, subdivision 13; 256B.69, subdivision 5a; 256B.76, subdivision 4; 
1.33 	256E.35, subdivisions 5, 6; 256I.05, subdivision 1a; 256L.03, subdivision 5; 
1.34 	256L.031, subdivisions 2, 3, 6; 256L.12, subdivision 9; Laws 2010, chapter 374, 
1.35 	section 1; Laws 2011, First Special Session chapter 9, article 7, sections 52; 54; 
1.36 	article 10, sections 3, subdivisions 1, 3, 4; 8, subdivision 8; proposing coding 
1.37 	for new law in Minnesota Statutes, chapters 144; 145; 256B; 626; repealing 
1.38 	Minnesota Statutes 2010, sections 62M.09, subdivision 9; 62Q.64; 144A.073, 
2.1 	subdivision 9; 256B.48, subdivision 6; Minnesota Rules, parts 4640.0800, 
2.2 	subpart 4; 4685.2000.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	ARTICLE 1
2.5 	HEALTH CARE

2.6 	Section 1. Minnesota Statutes 2011 Supplement, section 62E.14, subdivision 4g, is 
2.7 	amended to read:
2.8 		Subd. 4g.Waiver of preexisting conditions for persons covered by healthy 
2.9 	Minnesota contribution program. A person may enroll in the comprehensive plan with 
2.10 	a waiver of the preexisting condition limitation in subdivision 3 if the person is eligible for 
2.11 	the healthy Minnesota contribution program, and has been denied coverage as described 
2.12 	under section 256L.031, subdivision 6. The six-month durational residency requirement 
2.13 	specified in section 62E.02, subdivision 13, does not apply to individuals enrolled in the 
2.14 	healthy Minnesota contribution program.

2.15 	Sec. 2. Minnesota Statutes 2010, section 72A.201, subdivision 8, is amended to read:
2.16 		Subd. 8.Standards for claim denial. The following acts by an insurer, adjuster, or 
2.17 	self-insured, or self-insurance administrator constitute unfair settlement practices:
2.18 	(1) denying a claim or any element of a claim on the grounds of a specific policy 
2.19 	provision, condition, or exclusion, without informing the insured of the policy provision, 
2.20 	condition, or exclusion on which the denial is based;
2.21 	(2) denying a claim without having made a reasonable investigation of the claim;
2.22 	(3) denying a liability claim because the insured has requested that the claim be 
2.23 	denied;
2.24 	(4) denying a liability claim because the insured has failed or refused to report the 
2.25 	claim, unless an independent evaluation of available information indicates there is no 
2.26 	liability;
2.27 	(5) denying a claim without including the following information:
2.28 	(i) the basis for the denial;
2.29 	(ii) the name, address, and telephone number of the insurer's claim service office 
2.30 	or the claim representative of the insurer to whom the insured or claimant may take any 
2.31 	questions or complaints about the denial;
2.32 	(iii) the claim number and the policy number of the insured; and
3.1 	(iv) if the denied claim is a fire claim, the insured's right to file with the Department 
3.2 	of Commerce a complaint regarding the denial, and the address and telephone number 
3.3 	of the Department of Commerce;
3.4 	(6) denying a claim because the insured or claimant failed to exhibit the damaged 
3.5 	property unless:
3.6 	(i) the insurer, within a reasonable time period, made a written demand upon the 
3.7 	insured or claimant to exhibit the property; and
3.8 	(ii) the demand was reasonable under the circumstances in which it was made;
3.9 	(7) denying a claim by an insured or claimant based on the evaluation of a chemical 
3.10 	dependency claim reviewer selected by the insurer unless the reviewer meets the 
3.11 	qualifications specified under subdivision 8a. An insurer that selects chemical dependency 
3.12 	reviewers to conduct claim evaluations must annually file with the commissioner of 
3.13 	commerce a report containing the specific evaluation standards and criteria used in these 
3.14 	evaluations. The report must be filed at the same time its annual statement is submitted 
3.15 	under section 60A.13. The report must also include the number of evaluations performed 
3.16 	on behalf of the insurer during the reporting period, the types of evaluations performed, 
3.17 	the results, the number of appeals of denials based on these evaluations, the results of 
3.18 	these appeals, and the number of complaints filed in a court of competent jurisdiction.

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

3.20 	Sec. 3. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
3.21 	subdivision to read:
3.22 		Subd. 18c.Nonemergency Medical Transportation Advisory Committee.
 3.23 	(a) The Nonemergency Medical Transportation Advisory Committee shall advise the 
3.24 	commissioner on the administration of nonemergency medical transportation covered 
3.25 	under medical assistance. The advisory committee shall meet at least quarterly and may 
3.26 	meet more frequently as required by the commissioner. The advisory committee shall 
3.27 	annually elect a chair from among its members, who shall work with the commissioner or 
3.28 	the commissioner's designee to establish the agenda for each meeting. The commissioner, 
3.29 	or the commissioner's designee, shall attend all advisory committee meetings.
3.30 	(b) The Nonemergency Medical Transportation Advisory Committee shall advise 
3.31 	and make recommendations to the commissioner on:
3.32 	(1) the development of, and periodic updates to, a policy manual for nonemergency 
3.33 	medical transportation services;
3.34 	(2) policies and a funding source for reimbursing no-load miles;
4.1 	(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the 
4.2 	nonemergency medical transportation system;
4.3 	(4) other issues identified in the 2011 evaluation report by the Office of the 
4.4 	Legislative Auditor on medical nonemergency transportation; and
4.5 	(5) other aspects of the nonemergency medical transportation system, as requested 
4.6 	by the commissioner.
4.7 	(c) The Nonemergency Medical Transportation Advisory Committee shall 
4.8 	coordinate its activities with the Minnesota Council on Transportation Access established 
4.9 	under section 174.285. The chair of the advisory committee, or the chair's designee, shall 
4.10 	attend all meetings of the Minnesota Council on Transportation Access.
4.11 	(d) The Nonemergency Medical Transportation Advisory Committee shall expire 
4.12 	December 1, 2014.

4.13 	Sec. 4. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
4.14 	subdivision to read:
4.15 		Subd. 18d.Advisory committee members. (a) The Nonemergency Medical 
4.16 	Transportation Advisory Committee consists of:
4.17 	(1) two voting members who represent counties, at least one of whom must represent 
4.18 	a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 
4.19 	Ramsey, Scott, Sherburne, Washington, and Wright;
4.20 	(2) four voting members who represent medical assistance recipients, including 
4.21 	persons with physical and developmental disabilities, persons with mental illness, seniors, 
4.22 	children, and low-income individuals;
4.23 	(3) four voting members who represent providers that deliver nonemergency medical 
4.24 	transportation services to medical assistance enrollees;
4.25 	(4) two voting members of the house of representatives, one from the majority 
4.26 	party and one from the minority party, appointed by the speaker of the house, and two 
4.27 	voting members from the senate, one from the majority party and one from the minority 
4.28 	party, appointed by the Subcommittee on Committees of the Committee on Rules and 
4.29 	Administration;
4.30 	(5) one voting member who represents demonstration providers as defined in section 
4.31 	256B.69, subdivision 2;
4.32 	(6) one voting member who represents an organization that contracts with state or 
4.33 	local governments to coordinate transportation services for medical assistance enrollees; 
4.34 	and
5.1 	(7) the commissioner of transportation or the commissioner's designee, who shall 
5.2 	serve as a voting member.
5.3 	(b) Members of the advisory committee shall not be employed by the Department of 
5.4 	Human Services. Members of the advisory committee shall receive no compensation.

5.5 	Sec. 5. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
5.6 	subdivision to read:
5.7 		Subd. 18e.Single administrative structure and delivery system. (a) The 
5.8 	commissioner shall implement a single administrative structure and delivery system for 
5.9 	nonemergency medical transportation, beginning July 1, 2013. The single administrative 
5.10 	structure and delivery system must:
5.11 	(1) eliminate the distinction between access transportation services and special 
5.12 	transportation services;
5.13 	(2) enable all medical assistance recipients to follow the same process to obtain 
5.14 	nonemergency medical transportation, regardless of their level of need;
5.15 	(3) provide a single oversight framework for all providers of nonemergency medical 
5.16 	transportation; and
5.17 	(4) provide flexibility in service delivery, recognizing that clients fall along a 
5.18 	continuum of needs and resources.
5.19 	(b) The commissioner shall present to the legislature, by January 15, 2013, any draft 
5.20 	legislation necessary to implement the single administrative structure and delivery system 
5.21 	for nonemergency medical transportation.
5.22 	(c) In developing the single administrative structure and delivery system and 
5.23 	the draft legislation, the commissioner shall consult with the Nonemergency Medical 
5.24 	Transportation Advisory Committee.

5.25 	Sec. 6. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
5.26 	subdivision to read:
5.27 		Subd. 18f.Enrollee assessment process. (a) The commissioner, in consultation 
5.28 	with the Nonemergency Medical Transportation Advisory Committee, shall develop and 
5.29 	implement, by July 1, 2013, a comprehensive, statewide, standard assessment process 
5.30 	for medical assistance enrollees seeking nonemergency medical transportation services. 
5.31 	The assessment process must identify a client's level of needs, abilities, and resources, 
5.32 	and match the client with the mode of transportation in the client's service area that best 
5.33 	meets those needs.
5.34 	(b) The assessment process must:
6.1 	(1) address mental health diagnoses when determining the most appropriate mode of 
6.2 	transportation;
6.3 	(2) base decisions on clearly defined criteria that are available to clients, providers, 
6.4 	and counties;
6.5 	(3) be standardized across the state and be aligned with other similar existing 
6.6 	processes;
6.7 	(4) allow for extended periods of eligibility for certain types of nonemergency 
6.8 	transportation, when a client's condition is unlikely to change; and
6.9 	(5) increase the use of public transportation when appropriate and cost-effective, 
6.10 	including offering monthly bus passes to clients.

6.11 	Sec. 7. Minnesota Statutes 2010, section 256B.0625, is amended by adding a 
6.12 	subdivision to read:
6.13 		Subd. 18g.Use of standardized measures. The commissioner, in consultation 
6.14 	with the Nonemergency Medical Transportation Advisory Committee, shall establish 
6.15 	performance measures to assess the cost-effectiveness and quality of nonemergency 
6.16 	medical transportation. At a minimum, performance measures should include the number 
6.17 	of unique participants served by type of transportation provider, number of trips provided 
6.18 	by type of transportation provider, and cost per trip by type of transportation provider. The 
6.19 	commissioner must also consider the measures identified in the January 2012 Department 
6.20 	of Human Services report to the legislature on nonemergency medical transportation. 
6.21 	Beginning in calendar year 2013, the commissioner shall collect, audit, and analyze 
6.22 	performance data on nonemergency medical transportation annually and report this 
6.23 	information on the agency's Web site. The commissioner shall periodically supplement 
6.24 	this information with the results of consumer surveys of the quality of services, and shall 
6.25 	make these survey findings available to the public on the agency Web site.

6.26 	Sec. 8. Minnesota Statutes 2010, section 256B.0625, subdivision 28a, is amended to 
6.27 	read:
6.28 		Subd. 28a.Licensed physician assistant services. (a) Medical assistance covers 
6.29 	services performed by a licensed physician assistant if the service is otherwise covered 
6.30 	under this chapter as a physician service and if the service is within the scope of practice 
6.31 	of a licensed physician assistant as defined in section 147A.09.
6.32 	(b) Licensed physician assistants, who are supervised by a physician certified by 
6.33 	the American Board of Psychiatry and Neurology or eligible for board certification in 
6.34 	psychiatry, may bill for medication management and evaluation and management services 
7.1 	provided to medical assistance enrollees in inpatient hospital settings, consistent with 
7.2 	their authorized scope of practice, as defined in section 147A.09, with the exception of 
7.3 	performing psychotherapy, diagnostic assessments, or providing clinical supervision.

7.4 	Sec. 9. Minnesota Statutes 2011 Supplement, section 256B.0625, subdivision 38, 
7.5 	is amended to read:
7.6 		Subd. 38. Payments for mental health services. Payments for mental 
7.7 	health services covered under the medical assistance program that are provided by 
7.8 	masters-prepared mental health professionals shall be 80 percent of the rate paid to 
7.9 	doctoral-prepared professionals. Payments for mental health services covered under 
7.10 	the medical assistance program that are provided by masters-prepared mental health 
7.11 	professionals employed by community mental health centers shall be 100 percent of the 
7.12 	rate paid to doctoral-prepared professionals. Payments for mental health services covered 
7.13 	under the medical assistance program that are provided by physician assistants shall be 
7.14 	80.4 percent of the base rate paid to psychiatrists.

7.15 	Sec. 10. Minnesota Statutes 2011 Supplement, section 256B.0631, subdivision 1, 
7.16 	is amended to read:
7.17 		Subdivision 1.Cost-sharing. (a) Except as provided in subdivision 2, the medical 
7.18 	assistance benefit plan shall include the following cost-sharing for all recipients, effective 
7.19 	for services provided on or after September 1, 2011:
7.20 	(1) $3 per nonpreventive visit, except as provided in paragraph (b). For purposes 
7.21 	of this subdivision, a visit means an episode of service which is required because of 
7.22 	a recipient's symptoms, diagnosis, or established illness, and which is delivered in an 
7.23 	ambulatory setting by a physician or physician ancillary, chiropractor, podiatrist, nurse 
7.24 	midwife, advanced practice nurse, audiologist, optician, or optometrist;
7.25 	(2) $3 for eyeglasses;
7.26 	(3) $3.50 for nonemergency visits to a hospital-based emergency room, except that 
7.27 	this co-payment shall be increased to $20 upon federal approval;
7.28 	(4) $3 per brand-name drug prescription and $1 per generic drug prescription, 
7.29 	subject to a $12 per month maximum for prescription drug co-payments. No co-payments 
7.30 	shall apply to antipsychotic drugs when used for the treatment of mental illness;
7.31 	(5) effective January 1, 2012, a family deductible equal to the maximum amount 
7.32 	allowed under Code of Federal Regulations, title 42, part 447.54; and
7.33 	(6) for individuals identified by the commissioner with income at or below 100 
7.34 	percent of the federal poverty guidelines, total monthly cost-sharing must not exceed five 
8.1 	percent of family income. For purposes of this paragraph, family income is the total 
8.2 	earned and unearned income of the individual and the individual's spouse, if the spouse is 
8.3 	enrolled in medical assistance and also subject to the five percent limit on cost-sharing.
8.4 	(b) Recipients of medical assistance are responsible for all co-payments and 
8.5 	deductibles in this subdivision.
8.6 	(c) Notwithstanding paragraph (b), the commissioner, through the contracting 
8.7 	process under sections 256B.69 and 256B.692, may allow managed care plans and 
8.8 	county-based purchasing plans to waive the family deductible under paragraph (a), 
8.9 	clause (5). The value of the family deductible shall not be included in the capitation 
8.10 	payment to managed care plans and county-based purchasing plans. Managed care plans 
8.11 	and county-based purchasing plans shall certify annually to the commissioner the dollar 
8.12 	value of the family deductible.
8.13 	(d) Notwithstanding paragraph (b), the commissioner may waive the collection of 
8.14 	the family deductible described under paragraph (a), clause (5), from individuals and 
8.15 	allow long-term care and waivered service providers to assume responsibility for payment.

8.16 	EFFECTIVE DATE. Paragraph (c) is effective January 1, 2012. Paragraph (d) 
8.17 	is effective July 1, 2012.

8.18 	Sec. 11. Minnesota Statutes 2010, section 256B.0751, is amended by adding a 
8.19 	subdivision to read:
8.20 		Subd. 9.Pediatric care coordination. The commissioner shall implement a 
8.21 	pediatric care coordination service for children with high-cost medical or high-cost 
8.22 	psychiatric conditions who are at risk of recurrent hospitalization or emergency room use 
8.23 	for acute, chronic, or psychiatric illness, who receive medical assistance services. Care 
8.24 	coordination services must be targeted to children not already receiving care coordination 
8.25 	through another service and may include but are not limited to the provision of health 
8.26 	care home services to children admitted to hospitals that do not currently provide care 
8.27 	coordination. Care coordination services must be provided by care coordinators who 
8.28 	are directly linked to provider teams in the care delivery setting, but who may be part 
8.29 	of a community care team shared by multiple primary care providers or practices. For 
8.30 	purposes of this subdivision, the commissioner shall, to the extent possible, use the 
8.31 	existing health care home certification and payment structure established under this 
8.32 	section and section 256B.0753.

8.33 	Sec. 12. Minnesota Statutes 2011 Supplement, section 256B.69, subdivision 5a, 
8.34 	is amended to read:
9.1 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section 
9.2 	and section 256L.12 shall be entered into or renewed on a calendar year basis beginning 
9.3 	January 1, 1996. Managed care contracts which were in effect on June 30, 1995, and set to 
9.4 	renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 
9.5 	31, 1995 at the same terms that were in effect on June 30, 1995. The commissioner may 
9.6 	issue separate contracts with requirements specific to services to medical assistance 
9.7 	recipients age 65 and older.
9.8 	(b) A prepaid health plan providing covered health services for eligible persons 
9.9 	pursuant to chapters 256B and 256L is responsible for complying with the terms of its 
9.10 	contract with the commissioner. Requirements applicable to managed care programs 
9.11 	under chapters 256B and 256L established after the effective date of a contract with the 
9.12 	commissioner take effect when the contract is next issued or renewed.
9.13 	(c) Effective for services rendered on or after January 1, 2003, the commissioner 
9.14 	shall withhold five percent of managed care plan payments under this section and 
9.15 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
9.16 	assistance program pending completion of performance targets. Each performance target 
9.17 	must be quantifiable, objective, measurable, and reasonably attainable, except in the case 
9.18 	of a performance target based on a federal or state law or rule. Criteria for assessment 
9.19 	of each performance target must be outlined in writing prior to the contract effective 
9.20 	date. Clinical or utilization performance targets and their related criteria must consider 
9.21 	evidence-based research and reasonable interventions when available or applicable to the 
9.22 	populations served, and must be developed with input from external clinical experts 
9.23 	and stakeholders, including managed care plans, county-based purchasing plans, and 
9.24 	providers. The managed care or county-based purchasing plan must demonstrate, 
9.25 	to the commissioner's satisfaction, that the data submitted regarding attainment of 
9.26 	the performance target is accurate. The commissioner shall periodically change the 
9.27 	administrative measures used as performance targets in order to improve plan performance 
9.28 	across a broader range of administrative services. The performance targets must include 
9.29 	measurement of plan efforts to contain spending on health care services and administrative 
9.30 	activities. The commissioner may adopt plan-specific performance targets that take into 
9.31 	account factors affecting only one plan, including characteristics of the plan's enrollee 
9.32 	population. The withheld funds must be returned no sooner than July of the following 
9.33 	year if performance targets in the contract are achieved. The commissioner may exclude 
9.34 	special demonstration projects under subdivision 23.
9.35 	(d) Effective for services rendered on or after January 1, 2009, through December 
9.36 	31, 2009, the commissioner shall withhold three percent of managed care plan payments 
10.1 	under this section and county-based purchasing plan payments under section 256B.692 
10.2 	for the prepaid medical assistance program. The withheld funds must be returned no 
10.3 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
10.4 	exclude special demonstration projects under subdivision 23.
10.5 	(e) Effective for services provided on or after January 1, 2010, the commissioner 
10.6 	shall require that managed care plans use the assessment and authorization processes, 
10.7 	forms, timelines, standards, documentation, and data reporting requirements, protocols, 
10.8 	billing processes, and policies consistent with medical assistance fee-for-service or the 
10.9 	Department of Human Services contract requirements consistent with medical assistance 
10.10 	fee-for-service or the Department of Human Services contract requirements for all 
10.11 	personal care assistance services under section 256B.0659.
10.12 	(f) Effective for services rendered on or after January 1, 2010, through December 
10.13 	31, 2010, the commissioner shall withhold 4.5 percent of managed care plan payments 
10.14 	under this section and county-based purchasing plan payments under section 256B.692 
10.15 	for the prepaid medical assistance program. The withheld funds must be returned no 
10.16 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
10.17 	exclude special demonstration projects under subdivision 23.
10.18 	(g) Effective for services rendered on or after January 1, 2011, through December 
10.19 	31, 2011, the commissioner shall include as part of the performance targets described 
10.20 	in paragraph (c) a reduction in the health plan's emergency room utilization rate for 
10.21 	state health care program enrollees by a measurable rate of five percent from the plan's 
10.22 	utilization rate for state health care program enrollees for the previous calendar year. 
10.23 	Effective for services rendered on or after January 1, 2012, the commissioner shall include 
10.24 	as part of the performance targets described in paragraph (c) a reduction in the health 
10.25 	plan's emergency department utilization rate for medical assistance and MinnesotaCare 
10.26 	enrollees, as determined by the commissioner. For 2012, the reduction shall be based on 
10.27 	the health plan's utilization in 2009. To earn the return of the withhold each subsequent 
10.28 	year, the managed care plan or county-based purchasing plan must achieve a qualifying 
10.29 	reduction of no less than ten percent of the plan's emergency department utilization 
10.30 	rate for medical assistance and MinnesotaCare enrollees, excluding Medicare enrollees
10.31 	in programs described in subdivisions 23 and 28, compared to the previous calendar
10.32 	measurement year until the final performance target is reached. When measuring 
10.33 	performance, the commissioner must consider the difference in health risk in a managed 
10.34 	care or county-based purchasing plan's membership in the baseline year compared to the 
10.35 	measurement year, and work with the managed care or county-based purchasing plan to 
10.36 	account for differences that they agree are significant.
11.1 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
11.2 	of the following calendar year if the managed care plan or county-based purchasing plan 
11.3 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
11.4 	was achieved. The commissioner shall structure the withhold so that the commissioner 
11.5 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
11.6 	in utilization less than the target amount.
11.7 	The withhold described in this paragraph shall continue for each consecutive 
11.8 	contract period until the plan's emergency room utilization rate for state health care 
11.9 	program enrollees is reduced by 25 percent of the plan's emergency room utilization 
11.10 	rate for medical assistance and MinnesotaCare enrollees for calendar year 2011 2009. 
11.11 	Hospitals shall cooperate with the health plans in meeting this performance target and 
11.12 	shall accept payment withholds that may be returned to the hospitals if the performance 
11.13 	target is achieved.
11.14 	(h) Effective for services rendered on or after January 1, 2012, the commissioner 
11.15 	shall include as part of the performance targets described in paragraph (c) a reduction in the 
11.16 	plan's hospitalization admission rate for medical assistance and MinnesotaCare enrollees, 
11.17 	as determined by the commissioner. To earn the return of the withhold each year, the 
11.18 	managed care plan or county-based purchasing plan must achieve a qualifying reduction 
11.19 	of no less than five percent of the plan's hospital admission rate for medical assistance 
11.20 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
11.21 	subdivisions 23 and 28, compared to the previous calendar year until the final performance 
11.22 	target is reached. When measuring performance, the commissioner must consider the 
11.23 	difference in health risk in a managed care or county-based purchasing plan's membership 
11.24 	in the baseline year compared to the measurement year, and work with the managed care 
11.25 	or county-based purchasing plan to account for differences that they agree are significant.
11.26 	The withheld funds must be returned no sooner than July 1 and no later than July 
11.27 	31 of the following calendar year if the managed care plan or county-based purchasing 
11.28 	plan demonstrates to the satisfaction of the commissioner that this reduction in the 
11.29 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
11.30 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
11.31 	achieved reductions in utilization less than the targeted amount.
11.32 	The withhold described in this paragraph shall continue until there is a 25 percent 
11.33 	reduction in the hospital admission rate compared to the hospital admission rates in 
11.34 	calendar year 2011, as determined by the commissioner. The hospital admissions in this 
11.35 	performance target do not include the admissions applicable to the subsequent hospital 
11.36 	admission performance target under paragraph (i). Hospitals shall cooperate with the 
12.1 	plans in meeting this performance target and shall accept payment withholds that may be 
12.2 	returned to the hospitals if the performance target is achieved.
12.3 	(i) Effective for services rendered on or after January 1, 2012, the commissioner 
12.4 	shall include as part of the performance targets described in paragraph (c) a reduction in 
12.5 	the plan's hospitalization admission rates for subsequent hospitalizations within 30 days 
12.6 	of a previous hospitalization of a patient regardless of the reason, for medical assistance 
12.7 	and MinnesotaCare enrollees, as determined by the commissioner. To earn the return of 
12.8 	the withhold each year, the managed care plan or county-based purchasing plan must 
12.9 	achieve a qualifying reduction of the subsequent hospitalization rate for medical assistance 
12.10 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
12.11 	subdivisions 23 and 28, of no less than five percent compared to the previous calendar 
12.12 	year until the final performance target is reached.
12.13 	The withheld funds must be returned no sooner than July 1 and no later than July 
12.14 	31 of the following calendar year if the managed care plan or county-based purchasing 
12.15 	plan demonstrates to the satisfaction of the commissioner that a qualifying reduction in 
12.16 	the subsequent hospitalization rate was achieved. The commissioner shall structure the 
12.17 	withhold so that the commissioner returns a portion of the withheld funds in amounts 
12.18 	commensurate with achieved reductions in utilization less that the targeted amount.
12.19 	The withhold described in this paragraph must continue for each consecutive 
12.20 	contract period until the plan's subsequent hospitalization rate for medical assistance 
12.21 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
12.22 	subdivisions 23 and 28, is reduced by 25 percent of the plan's subsequent hospitalization 
12.23 	rate for calendar year 2011. Hospitals shall cooperate with the plans in meeting this 
12.24 	performance target and shall accept payment withholds that must be returned to the 
12.25 	hospitals if the performance target is achieved.
12.26 	(j) Effective for services rendered on or after January 1, 2011, through December 31, 
12.27 	2011, the commissioner shall withhold 4.5 percent of managed care plan payments under 
12.28 	this section and county-based purchasing plan payments under section 256B.692 for the 
12.29 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
12.30 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
12.31 	special demonstration projects under subdivision 23.
12.32 	(k) Effective for services rendered on or after January 1, 2012, through December 
12.33 	31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments 
12.34 	under this section and county-based purchasing plan payments under section 256B.692 
12.35 	for the prepaid medical assistance program. The withheld funds must be returned no 
13.1 	sooner than July 1 and no later than July 31 of the following year. The commissioner may 
13.2 	exclude special demonstration projects under subdivision 23.
13.3 	(l) Effective for services rendered on or after January 1, 2013, through December 31, 
13.4 	2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
13.5 	this section and county-based purchasing plan payments under section 256B.692 for the 
13.6 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
13.7 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
13.8 	special demonstration projects under subdivision 23.
13.9 	(m) Effective for services rendered on or after January 1, 2014, the commissioner 
13.10 	shall withhold three percent of managed care plan payments under this section and 
13.11 	county-based purchasing plan payments under section 256B.692 for the prepaid medical 
13.12 	assistance program. The withheld funds must be returned no sooner than July 1 and 
13.13 	no later than July 31 of the following year. The commissioner may exclude special 
13.14 	demonstration projects under subdivision 23.
13.15 	(n) A managed care plan or a county-based purchasing plan under section 256B.692 
13.16 	may include as admitted assets under section 62D.044 any amount withheld under this 
13.17 	section that is reasonably expected to be returned.
13.18 	(o) Contracts between the commissioner and a prepaid health plan are exempt from 
13.19 	the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph 
13.20 	(a), and 7.
13.21 	(p) The return of the withhold under paragraphs (d), (f), and (j) to (m) is not subject 
13.22 	to the requirements of paragraph (c).

13.23 	Sec. 13. Minnesota Statutes 2010, section 256B.69, subdivision 9, is amended to read:
13.24 		Subd. 9.Reporting. (a) Each demonstration provider shall submit information as 
13.25 	required by the commissioner, including data required for assessing client satisfaction, 
13.26 	quality of care, cost, and utilization of services for purposes of project evaluation. The 
13.27 	commissioner shall also develop methods of data reporting and collection in order to 
13.28 	provide aggregate enrollee information on encounters and outcomes to determine access 
13.29 	and quality assurance. Required information shall be specified before the commissioner 
13.30 	contracts with a demonstration provider.
13.31 	(b) Aggregate nonpersonally identifiable health plan encounter data, aggregate 
13.32 	spending data for major categories of service as reported to the commissioners of 
13.33 	health and commerce under section 62D.08, subdivision 3, clause (a), and criteria for 
13.34 	service authorization and service use are public data that the commissioner shall make 
14.1 	available and use in public reports. The commissioner shall require each health plan and 
14.2 	county-based purchasing plan to provide:
14.3 	(1) encounter data for each service provided, using standard codes and unit of 
14.4 	service definitions set by the commissioner, in a form that the commissioner can report by 
14.5 	age, eligibility groups, and health plan; and
14.6 	(2) criteria, written policies, and procedures required to be disclosed under section 
14.7 	62M.10, subdivision 7, and Code of Federal Regulations, title 42, part 438.210(b)(1), used 
14.8 	for each type of service for which authorization is required.
14.9 	(c) Each demonstration provider shall report to the commissioner on the extent to 
14.10 	which providers employed by or under contract with the demonstration provider use 
14.11 	patient-centered decision-making tools or procedures designed to engage patients early 
14.12 	in the decision-making process and the steps taken by the demonstration provider to 
14.13 	encourage their use.

14.14 	Sec. 14. Minnesota Statutes 2010, section 256B.69, is amended by adding a 
14.15 	subdivision to read:
14.16 		Subd. 9d.Financial audit. (a) The legislative auditor shall contract with an audit 
14.17 	firm to conduct a biennial independent third-party financial audit of the information 
14.18 	required to be provided by managed care plans and county-based purchasing plans under 
14.19 	subdivision 9c, paragraph (b). The audit shall be conducted in accordance with generally 
14.20 	accepted government auditing standards issued by the United States Government 
14.21 	Accountability Office. The contract with the audit firm shall be designed and administered 
14.22 	so as to render the independent third-party audit eligible for a federal subsidy, if available. 
14.23 	The contract shall require the audit to include a determination of compliance with 
14.24 	the federal Medicaid rate certification process. The contract shall require the audit to 
14.25 	determine if the administrative expenses and investment income reported by the managed 
14.26 	care plans and county-based purchasing plans are compliant with state and federal law.
14.27 	(b) For purposes of this subdivision, "independent third-party" means an audit firm 
14.28 	that is independent in accordance with government auditing standards issued by the United 
14.29 	States Government Accountability Office and licensed in accordance with chapter 326A. 
14.30 	An audit firm under contract to provide services in accordance with this subdivision must 
14.31 	not have provided services to a managed care plan or county-based purchasing plan during 
14.32 	the period for which the audit is being conducted.
14.33 	(c) The commissioner shall require in the request for bids and resulting contracts 
14.34 	with managed care plans and county-based purchasing plans under this section and section 
14.35 	256B.692, that each managed care plan and county-based purchasing plan submit to 
15.1 	and fully cooperate with the independent third-party financial audit of the information 
15.2 	required under subdivision 9c, paragraph (b). Each contract with a managed care plan 
15.3 	or county-based purchasing plan under this section or section 256B.692, must provide 
15.4 	the commissioner and the audit firm contracting with the legislative auditor access to all 
15.5 	data required to complete the audit. For purposes of this subdivision, the contracting 
15.6 	audit firm shall have the same investigative power as the legislative auditor under section 
15.7 	3.978, subdivision 2.
15.8 	(d) Each managed care plan and county-based purchasing plan providing services 
15.9 	under this section shall provide to the commissioner biweekly encounter data and claims 
15.10 	data for state public health care programs and shall participate in a quality assurance 
15.11 	program that verifies the timeliness, completeness, accuracy, and consistency of the data 
15.12 	provided. The commissioner shall develop written protocols for the quality assurance 
15.13 	program and shall make the protocols publicly available. The commissioner shall contract 
15.14 	for an independent third-party audit to evaluate the quality assurance protocols as to 
15.15 	the capacity of the protocols to ensure complete and accurate data and to evaluate the 
15.16 	commissioner's implementation of the protocols. The audit firm under contract to provide 
15.17 	this evaluation must meet the requirements in paragraph (b).
15.18 	(e) Upon completion of the audit under paragraph (a) and receipt by the legislative 
15.19 	auditor, the legislative auditor shall provide copies of the audit report to the commissioner, 
15.20 	the state auditor, the attorney general, and the chairs and ranking minority members of the 
15.21 	health and human services finance committees of the legislature. Upon completion of the 
15.22 	evaluation under paragraph (d), the commissioner shall provide copies of the report to 
15.23 	the legislative auditor and the chairs and ranking minority members of the health finance 
15.24 	committees of the legislature.
15.25 	(f) Any actuary under contract with the commissioner to provide actuarial services 
15.26 	must meet the independence requirements under the professional code for fellows in the 
15.27 	Society of Actuaries and must not have provided actuarial services to a managed care plan 
15.28 	or county-based purchasing plan that is under contract with the commissioner pursuant to 
15.29 	this section and section 256B.692 during the period in which the actuarial services are 
15.30 	being provided. An actuary or actuarial firm meeting the requirements of this paragraph 
15.31 	must certify and attest to the rates paid to the managed care plans and county-based 
15.32 	purchasing plans under this section and section 256B.692, and the certification and 
15.33 	attestation must be auditable.
15.34 	(g) Nothing in this subdivision shall allow the release of information that is 
15.35 	nonpublic data pursuant to section 13.02.

16.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
16.2 	and applies to the managed care and county-based purchasing plan contracts that are 
16.3 	effective January 1, 2014, and biennially thereafter.

16.4 	Sec. 15. Minnesota Statutes 2010, section 256B.69, is amended by adding a 
16.5 	subdivision to read:
16.6 		Subd. 32.Initiatives to reduce incidence of low birth weight. The commissioner 
16.7 	shall require managed care and county-based purchasing plans, as a condition of contract, 
16.8 	to implement strategies to reduce the incidence of low birth weight in geographic areas 
16.9 	identified by the commissioner as having a higher than average incidence of low birth 
16.10 	weight. The strategies must coordinate health care with social services and the local 
16.11 	public health system. Each plan shall develop and report to the commissioner outcome 
16.12 	measures related to reducing the incidence of low birth weight. The commissioner shall 
16.13 	consider the outcomes reported when considering plan participation in the competitive 
16.14 	bidding program established under subdivision 33.

16.15 	Sec. 16. Minnesota Statutes 2010, section 256B.69, is amended by adding a 
16.16 	subdivision to read:
16.17 		Subd. 33.Competitive bidding. (a) For managed care contracts effective on or 
16.18 	after January 1, 2014, the commissioner may utilize a competitive price bidding program 
16.19 	for nonelderly, nondisabled adults and children in medical assistance and MinnesotaCare 
16.20 	in the seven-county metropolitan area. The program must allow a minimum of two 
16.21 	managed care plans to serve the metropolitan area.
16.22 	(b) In designing the competitive bid program, the commissioner shall consider, and 
16.23 	incorporate where appropriate, the procedures and criteria used in the competitive bidding 
16.24 	pilot authorized under Laws 2011, First Special Session chapter 9, article 6, section 96. 
16.25 	The pilot program operating in Hennepin County under the authority of section 256B.0756 
16.26 	shall continue to be exempt from competitive bid.
16.27 	(c) The commissioner shall use past performance data as a factor in selecting vendors 
16.28 	and shall consider this information, along with competitive bid and other information, in 
16.29 	determining whether to contract with a managed care plan under this subdivision. Where 
16.30 	possible, the assessment of past performance in serving persons on public programs shall 
16.31 	be based on encounter data submitted to the commissioner. The commissioner shall 
16.32 	evaluate past performance based on both the health outcomes of care and success rates 
16.33 	in securing participation in recommended preventive and early diagnostic care. Data 
16.34 	provided by managed care plans must be provided in a uniform manner as specified by 
17.1 	the commissioner and must include only data on medical assistance and MinnesotaCare 
17.2 	enrollees. The data submitted must include health outcome measures on reducing the 
17.3 	incidence of low birth weight established by the managed care plan under subdivision 32.

17.4 	Sec. 17. Minnesota Statutes 2011 Supplement, section 256B.76, subdivision 4, is 
17.5 	amended to read:
17.6 		Subd. 4.Critical access dental providers.  (a) Effective for dental services 
17.7 	rendered on or after January 1, 2002, the commissioner shall increase reimbursements 
17.8 	to dentists and dental clinics deemed by the commissioner to be critical access dental 
17.9 	providers. For dental services rendered on or after July 1, 2007, the commissioner shall 
17.10 	increase reimbursement by 30 percent above the reimbursement rate that would otherwise 
17.11 	be paid to the critical access dental provider. The commissioner shall pay the managed 
17.12 	care plans and county-based purchasing plans in amounts sufficient to reflect increased 
17.13 	reimbursements to critical access dental providers as approved by the commissioner.
17.14 	(b) The commissioner shall designate the following dentists and dental clinics as 
17.15 	critical access dental providers:
17.16 	(1) nonprofit community clinics that:
17.17 	(i) have nonprofit status in accordance with chapter 317A;
17.18 	(ii) have tax exempt status in accordance with the Internal Revenue Code, section 
17.19 	501(c)(3);
17.20 	(iii) are established to provide oral health services to patients who are low income, 
17.21 	uninsured, have special needs, and are underserved;
17.22 	(iv) have professional staff familiar with the cultural background of the clinic's 
17.23 	patients;
17.24 	(v) charge for services on a sliding fee scale designed to provide assistance to 
17.25 	low-income patients based on current poverty income guidelines and family size;
17.26 	(vi) do not restrict access or services because of a patient's financial limitations 
17.27 	or public assistance status; and
17.28 	(vii) have free care available as needed;
17.29 	(2) federally qualified health centers, rural health clinics, and public health clinics;
17.30 	(3) county owned and operated hospital-based dental clinics;
17.31 	(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 
17.32 	accordance with chapter 317A with more than 10,000 patient encounters per year with 
17.33 	patients who are uninsured or covered by medical assistance, general assistance medical 
17.34 	care, or MinnesotaCare; and
18.1 	(5) a dental clinic owned and operated by the University of Minnesota or the 
18.2 	Minnesota State Colleges and Universities system.
18.3 	 (c) The commissioner may designate a dentist or dental clinic as a critical access 
18.4 	dental provider if the dentist or dental clinic is willing to provide care to patients covered 
18.5 	by medical assistance, general assistance medical care, or MinnesotaCare at a level which 
18.6 	significantly increases access to dental care in the service area.
18.7 	(d) Notwithstanding paragraph (a), critical access payments must not be made for 
18.8 	dental services provided from April 1, 2010, through June 30, 2010. A designated critical 
18.9 	access clinic shall receive the reimbursement rate specified in paragraph (a) for dental 
18.10 	services provided off-site at a private dental office if the following requirements are met:
18.11 	(1) the designated critical access dental clinic is located within a health professional 
18.12 	shortage area as defined under the Code of Federal Regulations, title 42, part 5, and 
18.13 	the United States Code, title 42, section 254E, and is located outside the seven-county 
18.14 	metropolitan area;
18.15 	(2) the designated critical access dental clinic is not able to provide the service 
18.16 	and refers the patient to the off-site dentist;
18.17 	(3) the service, if provided at the critical access dental clinic, would be reimbursed 
18.18 	at the critical access reimbursement rate;
18.19 	(4) the dentist and allied dental professionals providing the services off-site are 
18.20 	licensed and in good standing under chapter 150A;
18.21 	(5) the dentist providing the services is enrolled as a medical assistance provider;
18.22 	(6) the critical access dental clinic submits the claim for services provided off-site 
18.23 	and receives the payment for the services; and
18.24 	(7) the critical access dental clinic maintains dental records for each claim submitted 
18.25 	under this paragraph, including the name of the dentist, the off-site location, and the 
18.26 	license number of the dentist and allied dental professionals providing the services.

18.27 	EFFECTIVE DATE. This section is effective July 1, 2012, or upon federal 
18.28 	approval, whichever is later.

18.29 	Sec. 18. Minnesota Statutes 2011 Supplement, section 256L.03, subdivision 5, is 
18.30 	amended to read:
18.31 		Subd. 5.Cost-sharing. (a) Except as provided in paragraphs (b) and (c), the 
18.32 	MinnesotaCare benefit plan shall include the following cost-sharing requirements for all 
18.33 	enrollees:
18.34 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
18.35 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;
19.1 	(2) $3 per prescription for adult enrollees;
19.2 	(3) $25 for eyeglasses for adult enrollees;
19.3 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
19.4 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
19.5 	established illness, and which is delivered in an ambulatory setting by a physician or 
19.6 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
19.7 	audiologist, optician, or optometrist;
19.8 	(5) $6 for nonemergency visits to a hospital-based emergency room for services 
19.9 	provided through December 31, 2010, and $3.50 effective January 1, 2011; and
19.10 	(6) a family deductible equal to the maximum amount allowed under Code of 
19.11 	Federal Regulations, title 42, part 447.54.
19.12 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
19.13 	children under the age of 21.
19.14 	(c) Paragraph (a) does not apply to pregnant women and children under the age of 21.
19.15 	(d) Paragraph (a), clause (4), does not apply to mental health services.
19.16 	(e) Adult enrollees with family gross income that exceeds 200 percent of the federal 
19.17 	poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009, 
19.18 	and who are not pregnant shall be financially responsible for the coinsurance amount, if 
19.19 	applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.
19.20 	(f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
19.21 	or changes from one prepaid health plan to another during a calendar year, any charges 
19.22 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
19.23 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
19.24 	prior to enrollment, or prior to the change in health plans, shall be disregarded.
19.25 	(g) MinnesotaCare reimbursements to fee-for-service providers and payments to 
19.26 	managed care plans or county-based purchasing plans shall not be increased as a result of 
19.27 	the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011.
19.28 	(h) The commissioner, through the contracting process under section 256L.12, 
19.29 	may allow managed care plans and county-based purchasing plans to waive the family 
19.30 	deductible under paragraph (a), clause (6). The value of the family deductible shall not be 
19.31 	included in the capitation payment to managed care plans and county-based purchasing 
19.32 	plans. Managed care plans and county-based purchasing plans shall certify annually to the 
19.33 	commissioner the dollar value of the family deductible.

19.34 	EFFECTIVE DATE. This section is effective January 1, 2012.

20.1 	Sec. 19. Minnesota Statutes 2011 Supplement, section 256L.031, subdivision 2, 
20.2 	is amended to read:
20.3 		Subd. 2.Use of defined contribution; health plan requirements. (a) An enrollee 
20.4 	may use up to the monthly defined contribution to pay premiums for coverage under 
20.5 	a health plan as defined in section 62A.011, subdivision 3, or as provided in section 
20.6 	256L.031, subdivision 6.
20.7 	(b) An enrollee must select a health plan within three four calendar months of 
20.8 	approval of MinnesotaCare eligibility. If a health plan is not selected and purchased 
20.9 	within this time period, the enrollee must reapply and must meet all eligibility criteria.
20.10 	The commissioner may determine criteria under which an enrollee has more than four 
20.11 	calendar months to select a health plan.
20.12 	(c) A health plan Coverage purchased under this section must:
20.13 	(1) provide coverage for include mental health and chemical dependency treatment 
20.14 	services; and
20.15 	(2) comply with the coverage limitations specified in section 256L.03, subdivision 
20.16 	1, the second paragraph.

20.17 	Sec. 20. Minnesota Statutes 2011 Supplement, section 256L.031, subdivision 3, 
20.18 	is amended to read:
20.19 		Subd. 3.Determination of defined contribution amount. (a) The commissioner 
20.20 	shall determine the defined contribution sliding scale using the base contribution specified 
20.21 	in paragraph (b) this paragraph for the specified age ranges. The commissioner shall use a 
20.22 	sliding scale for defined contributions that provides:
20.23 	(1) persons with household incomes equal to 200 percent of the federal poverty 
20.24 	guidelines with a defined contribution of 93 percent of the base contribution;
20.25 	(2) persons with household incomes equal to 250 percent of the federal poverty 
20.26 	guidelines with a defined contribution of 80 percent of the base contribution; and
20.27 	(3) persons with household incomes in evenly spaced increments between the 
20.28 	percentages of the federal poverty guideline or income level specified in clauses (1) and 
20.29 	(2) with a base contribution that is a percentage interpolated from the defined contribution 
20.30 	percentages specified in clauses (1) and (2).

20.31		19-29
	$125
	
20.32		30-34
	$135
	
20.33		35-39
	$140
	
20.34		40-44
	$175
	
20.35		45-49
	$215
	
20.36		50-54
	$295
	
21.1		55-59
	$345
	
21.2		60+
	$360
	
21.3 	(b) The commissioner shall multiply the defined contribution amounts developed 
21.4 	under paragraph (a) by 1.20 for enrollees who are denied coverage under an individual 
21.5 	health plan by a health plan company and who purchase coverage through the Minnesota 
21.6 	Comprehensive Health Association.

21.7 	Sec. 21. Minnesota Statutes 2011 Supplement, section 256L.031, subdivision 6, 
21.8 	is amended to read:
21.9 		Subd. 6.Minnesota Comprehensive Health Association (MCHA). Beginning 
21.10 	July 1, 2012, MinnesotaCare enrollees who are denied coverage in the individual 
21.11 	health market by a health plan company in accordance with section 62A.65 are eligible 
21.12 	for coverage through a health plan offered by the Minnesota Comprehensive Health 
21.13 	Association and may enroll in MCHA in accordance with section 62E.14. Any difference 
21.14 	between the revenue and actual covered losses to MCHA related to the implementation of 
21.15 	this section are appropriated annually to the commissioner of human services from the 
21.16 	health care access fund and shall be paid to MCHA.

21.17 	Sec. 22. Minnesota Statutes 2010, section 256L.07, subdivision 3, is amended to read:
21.18 		Subd. 3.Other health coverage. (a) Families and individuals enrolled in the 
21.19 	MinnesotaCare program must have no health coverage while enrolled or for at least four 
21.20 	months prior to application and renewal. Children enrolled in the original children's health 
21.21 	plan and children in families with income equal to or less than 150 percent of the federal 
21.22 	poverty guidelines, who have other health insurance, are eligible if the coverage:
21.23 	(1) lacks two or more of the following:
21.24 	(i) basic hospital insurance;
21.25 	(ii) medical-surgical insurance;
21.26 	(iii) prescription drug coverage;
21.27 	(iv) dental coverage; or
21.28 	(v) vision coverage;
21.29 	(2) requires a deductible of $100 or more per person per year; or
21.30 	(3) lacks coverage because the child has exceeded the maximum coverage for a 
21.31 	particular diagnosis or the policy excludes a particular diagnosis.
21.32 	The commissioner may change this eligibility criterion for sliding scale premiums 
21.33 	in order to remain within the limits of available appropriations. The requirement of no 
21.34 	health coverage does not apply to newborns.
22.1 	(b) Coverage purchased as provided under section 256L.031, subdivision 2, medical 
22.2 	assistance, general assistance medical care, and the Civilian Health and Medical Program 
22.3 	of the Uniformed Service, CHAMPUS, or other coverage provided under United States 
22.4 	Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or health 
22.5 	coverage for purposes of the four-month requirement described in this subdivision.
22.6 	(c) For purposes of this subdivision, an applicant or enrollee who is entitled to 
22.7 	Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social 
22.8 	Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to 
22.9 	have health coverage. An applicant or enrollee who is entitled to premium-free Medicare 
22.10 	Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility 
22.11 	for MinnesotaCare.
22.12 	(d) Applicants who were recipients of medical assistance or general assistance 
22.13 	medical care within one month of application must meet the provisions of this subdivision 
22.14 	and subdivision 2.
22.15 	(e) Cost-effective health insurance that was paid for by medical assistance is not 
22.16 	considered health coverage for purposes of the four-month requirement under this 
22.17 	section, except if the insurance continued after medical assistance no longer considered it 
22.18 	cost-effective or after medical assistance closed.

22.19 	Sec. 23. Minnesota Statutes 2011 Supplement, section 256L.12, subdivision 9, is 
22.20 	amended to read:
22.21 		Subd. 9.Rate setting; performance withholds. (a) Rates will be prospective, 
22.22 	per capita, where possible. The commissioner may allow health plans to arrange for 
22.23 	inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with 
22.24 	an independent actuary to determine appropriate rates.
22.25 	(b) For services rendered on or after January 1, 2004, the commissioner shall 
22.26 	withhold five percent of managed care plan payments and county-based purchasing 
22.27 	plan payments under this section pending completion of performance targets. Each 
22.28 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
22.29 	except in the case of a performance target based on a federal or state law or rule. Criteria 
22.30 	for assessment of each performance target must be outlined in writing prior to the contract 
22.31 	effective date. Clinical or utilization performance targets and their related criteria must 
22.32 	consider evidence-based research and reasonable interventions, when available or 
22.33 	applicable to the populations served, and must be developed with input from external 
22.34 	clinical experts and stakeholders, including managed care plans, county-based purchasing 
22.35 	plans, and providers. The managed care plan must demonstrate, to the commissioner's 
23.1 	satisfaction, that the data submitted regarding attainment of the performance target is 
23.2 	accurate. The commissioner shall periodically change the administrative measures used 
23.3 	as performance targets in order to improve plan performance across a broader range of 
23.4 	administrative services. The performance targets must include measurement of plan 
23.5 	efforts to contain spending on health care services and administrative activities. The 
23.6 	commissioner may adopt plan-specific performance targets that take into account factors 
23.7 	affecting only one plan, such as characteristics of the plan's enrollee population. The 
23.8 	withheld funds must be returned no sooner than July 1 and no later than July 31 of the 
23.9 	following calendar year if performance targets in the contract are achieved.
23.10 	(c) For services rendered on or after January 1, 2011, the commissioner shall 
23.11 	withhold an additional three percent of managed care plan or county-based purchasing 
23.12 	plan payments under this section. The withheld funds must be returned no sooner than 
23.13 	July 1 and no later than July 31 of the following calendar year. The return of the withhold 
23.14 	under this paragraph is not subject to the requirements of paragraph (b).
23.15 	(d) Effective for services rendered on or after January 1, 2011, through December 
23.16 	31, 2011, the commissioner shall include as part of the performance targets described in 
23.17 	paragraph (b) a reduction in the plan's emergency room utilization rate for state health care 
23.18 	program enrollees by a measurable rate of five percent from the plan's utilization rate for 
23.19 	the previous calendar year. Effective for services rendered on or after January 1, 2012, 
23.20 	the commissioner shall include as part of the performance targets described in paragraph 
23.21 	(b) a reduction in the health plan's emergency department utilization rate for medical 
23.22 	assistance and MinnesotaCare enrollees, as determined by the commissioner. For 2012, 
23.23 	the reductions shall be based on the health plan's utilization in 2009. To earn the return of 
23.24 	the withhold each subsequent year, the managed care plan or county-based purchasing 
23.25 	plan must achieve a qualifying reduction of no less than ten percent of the plan's utilization 
23.26 	rate for medical assistance and MinnesotaCare enrollees, excluding Medicare enrollees in 
23.27 	programs described in section 256B.69, subdivisions 23 and 28, compared to the previous 
23.28 	calendar measurement year, until the final performance target is reached. When measuring 
23.29 	performance, the commissioner must consider the difference in health risk in a managed 
23.30 	care or county-based purchasing plan's membership in the baseline year compared to the 
23.31 	measurement year, and work with the managed care or county-based purchasing plan to 
23.32 	account for differences that they agree are significant.
23.33 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
23.34 	of the following calendar year if the managed care plan or county-based purchasing plan 
23.35 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
23.36 	was achieved. The commissioner shall structure the withhold so that the commissioner 
24.1 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
24.2 	in utilization less than the targeted amount.
24.3 	The withhold described in this paragraph shall continue for each consecutive 
24.4 	contract period until the plan's emergency room utilization rate for state health care 
24.5 	program enrollees is reduced by 25 percent of the plan's emergency room utilization 
24.6 	rate for medical assistance and MinnesotaCare enrollees for calendar year 2011 2009. 
24.7 	Hospitals shall cooperate with the health plans in meeting this performance target and 
24.8 	shall accept payment withholds that may be returned to the hospitals if the performance 
24.9 	target is achieved.
24.10 	(e) Effective for services rendered on or after January 1, 2012, the commissioner 
24.11 	shall include as part of the performance targets described in paragraph (b) a reduction 
24.12 	in the plan's hospitalization admission rate for medical assistance and MinnesotaCare 
24.13 	enrollees, as determined by the commissioner. To earn the return of the withhold 
24.14 	each year, the managed care plan or county-based purchasing plan must achieve a 
24.15 	qualifying reduction of no less than five percent of the plan's hospital admission rate 
24.16 	for medical assistance and MinnesotaCare enrollees, excluding Medicare enrollees
24.17 	in programs described in section 256B.69, subdivisions 23 and 28, compared to the 
24.18 	previous calendar year, until the final performance target is reached. When measuring 
24.19 	performance, the commissioner must consider the difference in health risk in a managed 
24.20 	care or county-based purchasing plan's membership in the baseline year compared to the 
24.21 	measurement year, and work with the managed care or county-based purchasing plan to 
24.22 	account for differences that they agree are significant.
24.23 	The withheld funds must be returned no sooner than July 1 and no later than July 
24.24 	31 of the following calendar year if the managed care plan or county-based purchasing 
24.25 	plan demonstrates to the satisfaction of the commissioner that this reduction in the 
24.26 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
24.27 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
24.28 	achieved reductions in utilization less than the targeted amount.
24.29 	The withhold described in this paragraph shall continue until there is a 25 percent 
24.30 	reduction in the hospitals admission rate compared to the hospital admission rate for 
24.31 	calendar year 2011 as determined by the commissioner. Hospitals shall cooperate with the 
24.32 	plans in meeting this performance target and shall accept payment withholds that may be 
24.33 	returned to the hospitals if the performance target is achieved. The hospital admissions 
24.34 	in this performance target do not include the admissions applicable to the subsequent 
24.35 	hospital admission performance target under paragraph (f).
25.1 	(f) Effective for services provided on or after January 1, 2012, the commissioner 
25.2 	shall include as part of the performance targets described in paragraph (b) a reduction 
25.3 	in the plan's hospitalization rate for a subsequent hospitalization within 30 days of a 
25.4 	previous hospitalization of a patient regardless of the reason, for medical assistance and 
25.5 	MinnesotaCare enrollees, as determined by the commissioner. To earn the return of the 
25.6 	withhold each year, the managed care plan or county-based purchasing plan must achieve 
25.7 	a qualifying reduction of the subsequent hospital admissions rate for medical assistance 
25.8 	and MinnesotaCare enrollees, excluding Medicare enrollees in programs described in 
25.9 	section 256B.69, subdivisions 23 and 28, of no less than five percent compared to the 
25.10 	previous calendar year until the final performance target is reached.
25.11 	The withheld funds must be returned no sooner than July 1 and no later than July 31 
25.12 	of the following calendar year if the managed care plan or county-based purchasing plan 
25.13 	demonstrates to the satisfaction of the commissioner that a reduction in the subsequent 
25.14 	hospitalization rate was achieved. The commissioner shall structure the withhold so that 
25.15 	the commissioner returns a portion of the withheld funds in amounts commensurate with 
25.16 	achieved reductions in utilization less than the targeted amount.
25.17 	The withhold described in this paragraph must continue for each consecutive 
25.18 	contract period until the plan's subsequent hospitalization rate for medical assistance and 
25.19 	MinnesotaCare enrollees is reduced by 25 percent of the plan's subsequent hospitalization 
25.20 	rate for calendar year 2011. Hospitals shall cooperate with the plans in meeting this 
25.21 	performance target and shall accept payment withholds that must be returned to the 
25.22 	hospitals if the performance target is achieved.
25.23 	(g) A managed care plan or a county-based purchasing plan under section 256B.692 
25.24 	may include as admitted assets under section 62D.044 any amount withheld under this 
25.25 	section that is reasonably expected to be returned.

25.26 	Sec. 24. NONEMERGENCY MEDICAL TRANSPORTATION SERVICES 
25.27 	REQUEST FOR INFORMATION.
 25.28 	(a) The commissioner of human services shall issue a request for information 
25.29 	from vendors about potential solutions for the management of nonemergency medical 
25.30 	transportation (NEMT) services provided to recipients of Minnesota health care programs. 
25.31 	The request for information must require vendors to submit responses by November 1, 
25.32 	2012. The request for information shall seek information from vendors, including but not 
25.33 	limited to, the following aspects:
25.34 	(1) administration of the NEMT program within a single administrative structure, 
25.35 	that may include a statewide or regionalized solution;
26.1 	(2) oversight of transportation services;
26.2 	(3) a process for assessing an individual's level of need;
26.3 	(4) methods that promote the appropriate use of public transportation; and
26.4 	(5) an electronic system that assists providers in managing services to clients and is 
26.5 	consistent with the recommendations in the 2011 evaluation report by the Office of the 
26.6 	Legislative Auditor on NEMT, related to the use of data to inform decision-making and 
26.7 	reduce waste and fraud.
26.8 	(b) The commissioner shall provide the information obtained from the request for 
26.9 	information to the chairs and ranking minority members of the legislative committees with 
26.10 	jurisdiction over health and human services policy and financing by November 15, 2012.

26.11 	Sec. 25. PHYSICIAN ASSISTANTS AND OUTPATIENT MENTAL HEALTH.
 26.12 	The commissioner of human services shall convene a group of interested 
26.13 	stakeholders to assist the commissioner in developing recommendations on how to 
26.14 	improve access to, and the quality of, outpatient mental health services for medical 
26.15 	assistance enrollees through the use of physician assistants. The commissioner shall report 
26.16 	these recommendations to the chairs and ranking minority members of the legislative 
26.17 	committees with jurisdiction over health care policy and financing by January 15, 2013.

26.18 	Sec. 26. HEALTH SERVICES ADVISORY COUNCIL.
 26.19 	The Health Services Advisory Council shall review currently available literature 
26.20 	regarding the efficacy of various treatments for autism spectrum disorder, including 
26.21 	an evaluation of age-based variation in the appropriateness of existing medical and 
26.22 	behavioral interventions. The council shall recommend to the commissioner of human 
26.23 	services authorization criteria for services based on existing evidence. The council may 
26.24 	recommend coverage with ongoing collection of outcomes evidence in circumstances 
26.25 	where evidence is currently unavailable, or where the strength of the evidence is low. The 
26.26 	council shall make this recommendation by December 31, 2012.

26.27 	Sec. 27. REPORTING REQUIREMENTS.
 26.28 		Subdivision 1.Evidence-based childbirth program. The commissioner of human 
26.29 	services may discontinue the evidence-based childbirth program and shall discontinue all 
26.30 	affiliated reporting requirements established under Minnesota Statutes, section 256B.0625, 
26.31 	subdivision 3g, once the commissioner determines that hospitals representing at least 90 
26.32 	percent of births covered by medical assistance or MinnesotaCare have approved policies 
26.33 	and processes in place that prohibit elective inductions prior to 39 weeks' gestation.
27.1 		Subd. 2.Provider networks. The commissioner of health, the commissioner of 
27.2 	commerce, and the commissioner of human services shall merge reporting requirements 
27.3 	for health maintenance organizations and county-based purchasing plans related to 
27.4 	Minnesota Department of Health oversight of network adequacy under Minnesota 
27.5 	Statutes, section 62D.124, and the provider network list reported to the Department of 
27.6 	Human Services under Minnesota Rules, part 4685.2100. The commissioners shall work 
27.7 	with health maintenance organizations and county-based purchasing plans to ensure that 
27.8 	the report merger is done in a manner that simplifies health maintenance organization and 
27.9 	county-based purchasing plan reporting processes.

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

27.11 	Sec. 28. EMERGENCY MEDICAL ASSISTANCE STUDY.
 27.12 	(a) The commissioner of human services shall develop a plan to provide coordinated 
27.13 	and cost-effective health care and coverage for individuals who meet eligibility standards 
27.14 	for emergency medical assistance and who are ineligible for other state public programs. 
27.15 	The commissioner shall consult with relevant stakeholders in the development of the plan. 
27.16 	The commissioner shall consider the following elements:
27.17 	(1) strategies to provide individuals with the most appropriate care in the appropriate 
27.18 	setting, utilizing higher quality and lower cost providers;
27.19 	(2) payment mechanisms to encourage providers to manage the care of these 
27.20 	populations, and to produce lower cost of care and better patient outcomes;
27.21 	(3) ensure coverage and payment options that address the unique needs of those 
27.22 	needing episodic care, chronic care, and long-term care services;
27.23 	(4) strategies for coordinating health care and nonhealth care services, and 
27.24 	integrating with existing coverage; and
27.25 	(5) other issues and strategies to ensure cost-effective and coordinated delivery 
27.26 	of coverage and services.
27.27 	(b) The commissioner shall submit the plan to the chairs and ranking minority 
27.28 	members of the legislative committees with jurisdiction over health and human services 
27.29 	policy and financing by January 15, 2013.

27.30 	Sec. 29. EMERGENCY MEDICAL CONDITION COVERAGE EXCEPTIONS.
 27.31 	(a) Notwithstanding Minnesota Statutes, section 256B.06, subdivision 4, paragraph 
27.32 	(h), clause (2), the following services are covered as emergency medical conditions under 
27.33 	Minnesota Statutes, section 256B.06, subdivision 4, paragraph (f):
27.34 	(1) dialysis services provided in a hospital or free-standing dialysis facility; and
28.1 	(2) surgery and the administration of chemotherapy, radiation, and related services 
28.2 	necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission 
28.3 	and requires surgery, chemotherapy, or radiation treatment.
28.4 	(b) Coverage under paragraph (a) is effective May 1, 2012, until June 30, 2013.

28.5 	Sec. 30. COST-SHARING REQUIREMENTS STUDY.
 28.6 	The commissioner of human services, in consultation with managed care 
28.7 	plans, county-based purchasing plans, and other relevant stakeholders, shall develop 
28.8 	recommendations to implement a revised cost-sharing structure for state public health 
28.9 	care programs that ensures application of meaningful cost-sharing requirements within 
28.10 	the limits of title 42, Code of Federal Regulations, section 447.54, for enrollees in these 
28.11 	programs. The commissioner shall report to the chairs and ranking minority members of 
28.12 	the legislative committees with jurisdiction over these issues by January 15, 2013, with 
28.13 	draft legislation to implement these recommendations effective January 1, 2014.

28.14 	Sec. 31. STUDY OF MANAGED CARE.
 28.15 	(a) The commissioner of human services must contract with an independent 
28.16 	vendor with demonstrated expertise in evaluating Medicaid managed care programs to 
28.17 	evaluate the value of managed care for state public health care programs provided under 
28.18 	Minnesota Statutes, sections 256B.69, 256B.692, and 256L.12. Determination of the 
28.19 	value of managed care must include consideration of the following, as compared to a 
28.20 	fee-for-service program:
28.21 	(1) the satisfaction of state public health care program recipients and providers;
28.22 	(2) the ability to measure and improve health outcomes of recipients;
28.23 	(3) the access to health services for recipients;
28.24 	(4) the availability of additional services such as care coordination, case 
28.25 	management, disease management, transportation, and after-hours nurse lines;
28.26 	(5) actual and potential cost savings to the state;
28.27 	(6) the level of alignment with state and federal health reform policies, including a 
28.28 	health benefit exchange for individuals not enrolled in state public health care programs; 
28.29 	and
28.30 	(7) the ability to use different provider payment models that provide incentives for 
28.31 	cost-effective health care.
28.32 	(b) The evaluation described in paragraph (a) must also consider the need to continue 
28.33 	the requirement for health maintenance organizations to participate in the medical 
28.34 	assistance and MinnesotaCare programs as a condition of licensure under Minnesota 
29.1 	Statutes, section 62D.04, subdivision 5, and under Minnesota Statutes, section 256B.0644, 
29.2 	in terms of continued stability and access to services for enrollees of these programs.
29.3 	(c) A preliminary report of the evaluation must be submitted to the chairs and 
29.4 	ranking minority members of the health and human services legislative committees by 
29.5 	February 15, 2013, and the final report must be submitted by July 1, 2013.

29.6 	Sec. 32. REPEALER.
 29.7 		Subdivision 1.Summary of complaints and grievances. (a) Minnesota Rules, part 
29.8 	4685.2000, is repealed effective the day following final enactment.
29.9 		Subd. 2.Medical necessity denials and appeals. Minnesota Statutes 2010, section 
29.10 	62M.09, subdivision 9, is repealed effective the day following final enactment.
29.11 		Subd. 3.Salary reports. Minnesota Statutes 2010, section 62Q.64, is repealed 
29.12 	effective the day following final enactment.

29.13 	ARTICLE 2
29.14 	DEPARTMENT OF HEALTH

29.15 	Section 1. Minnesota Statutes 2010, section 62Q.80, is amended to read:
29.16 	62Q.80 COMMUNITY-BASED HEALTH CARE COVERAGE PROGRAM.
29.17 		Subdivision 1.Scope. (a) Any community-based health care initiative may develop 
29.18 	and operate community-based health care coverage programs that offer to eligible 
29.19 	individuals and their dependents the option of purchasing through their employer health 
29.20 	care coverage on a fixed prepaid basis without meeting the requirements of chapter 60A, 
29.21 	62A, 62C, 62D, 62M, 62N, 62Q, 62T, or 62U, or any other law or rule that applies to 
29.22 	entities licensed under these chapters.
29.23 	(b) Each initiative shall establish health outcomes to be achieved through the 
29.24 	programs and performance measurements in order to determine whether these outcomes 
29.25 	have been met. The outcomes must include, but are not limited to:
29.26 	(1) a reduction in uncompensated care provided by providers participating in the 
29.27 	community-based health network;
29.28 	(2) an increase in the delivery of preventive health care services; and
29.29 	(3) health improvement for enrollees with chronic health conditions through the 
29.30 	management of these conditions.
29.31 	In establishing performance measurements, the initiative shall use measures that are 
29.32 	consistent with measures published by nonprofit Minnesota or national organizations that 
29.33 	produce and disseminate health care quality measures.
30.1 	(c) Any program established under this section shall not constitute a financial 
30.2 	liability for the state, in that any financial risk involved in the operation or termination 
30.3 	of the program shall be borne by the community-based initiative and the participating 
30.4 	health care providers.
30.5 		Subd. 1a.Demonstration project. The commissioner of health and the 
30.6 	commissioner of human services shall award demonstration project grants to 
30.7 	community-based health care initiatives to develop and operate community-based health 
30.8 	care coverage programs in Minnesota. The demonstration projects shall extend for five 
30.9 	years and must comply with the requirements of this section.
30.10 		Subd. 2.Definitions.  For purposes of this section, the following definitions apply:
30.11 	(a) "Community-based" means located in or primarily relating to the community, 
30.12 	as determined by the board of a community-based health initiative that is served by the 
30.13 	community-based health care coverage program.
30.14 	(b) "Community-based health care coverage program" or "program" means a 
30.15 	program administered by a community-based health initiative that provides health care 
30.16 	services through provider members of a community-based health network or combination 
30.17 	of networks to eligible individuals and their dependents who are enrolled in the program.
30.18 	(c) "Community-based health initiative" or "initiative" means a nonprofit corporation 
30.19 	that is governed by a board that has at least 80 percent of its members residing in the 
30.20 	community and includes representatives of the participating network providers and 
30.21 	employers, or a county-based purchasing organization as defined in section 256B.692.
30.22 	(d) "Community-based health network" means a contract-based network of health 
30.23 	care providers organized by the community-based health initiative to provide or support 
30.24 	the delivery of health care services to enrollees of the community-based health care 
30.25 	coverage program on a risk-sharing or nonrisk-sharing basis.
30.26 	(e) "Dependent" means an eligible employee's spouse or unmarried child who is 
30.27 	under the age of 19 years.
30.28 		Subd. 3.Approval.  (a) Prior to the operation of a community-based health 
30.29 	care coverage program, a community-based health initiative, defined in subdivision 
30.30 	2, paragraph (c), and receiving funds from the Department of Health, shall submit to 
30.31 	the commissioner of health for approval the community-based health care coverage 
30.32 	program developed by the initiative. Each community-based health initiative as defined 
30.33 	in subdivision 2, paragraph (c), and receiving State Health Access Program (SHAP) 
30.34 	grant funding shall submit to the commissioner of human services for approval prior 
30.35 	to its operation the community-based health care coverage programs developed by the 
30.36 	initiatives. The commissioners commissioner shall ensure that each program meets 
31.1 	the federal grant requirements and any requirements described in this section and is 
31.2 	actuarially sound based on a review of appropriate records and methods utilized by the 
31.3 	community-based health initiative in establishing premium rates for the community-based 
31.4 	health care coverage programs.
31.5 	(b) Prior to approval, the commissioner shall also ensure that:
31.6 	(1) the benefits offered comply with subdivision 8 and that there are adequate 
31.7 	numbers of health care providers participating in the community-based health network to 
31.8 	deliver the benefits offered under the program;
31.9 	(2) the activities of the program are limited to activities that are exempt under this 
31.10 	section or otherwise from regulation by the commissioner of commerce;
31.11 	(3) the complaint resolution process meets the requirements of subdivision 10; and
31.12 	(4) the data privacy policies and procedures comply with state and federal law.
31.13 		Subd. 4.Establishment.  The initiative shall establish and operate upon approval 
31.14 	by the commissioners commissioner of health and human services community-based 
31.15 	health care coverage programs. The operational structure established by the initiative 
31.16 	shall include, but is not limited to:
31.17 	(1) establishing a process for enrolling eligible individuals and their dependents;
31.18 	(2) collecting and coordinating premiums from enrollees and employers of enrollees;
31.19 	(3) providing payment to participating providers;
31.20 	(4) establishing a benefit set according to subdivision 8 and establishing premium 
31.21 	rates and cost-sharing requirements;
31.22 	(5) creating incentives to encourage primary care and wellness services; and
31.23 	(6) initiating disease management services, as appropriate.
31.24 		Subd. 5.Qualifying employees.  To be eligible for the community-based health 
31.25 	care coverage program, an individual must:
31.26 	(1) reside in or work within the designated community-based geographic area 
31.27 	served by the program;
31.28 	(2) be employed by a qualifying employer, be an employee's dependent, or be 
31.29 	self-employed on a full-time basis;
31.30 	(3) not be enrolled in or have currently available health coverage, except for 
31.31 	catastrophic health care coverage; and
31.32 	(4) not be eligible for or enrolled in medical assistance or general assistance medical 
31.33 	care, and not be enrolled in MinnesotaCare or Medicare.
31.34 		Subd. 6.Qualifying employers.  (a) To qualify for participation in the 
31.35 	community-based health care coverage program, an employer must:
32.1 	(1) employ at least one but no more than 50 employees at the time of initial 
32.2 	enrollment in the program;
32.3 	(2) pay its employees a median wage that equals 350 percent of the federal poverty 
32.4 	guidelines or less for an individual; and
32.5 	(3) not have offered employer-subsidized health coverage to its employees for 
32.6 	at least 12 months prior to the initial enrollment in the program. For purposes of this 
32.7 	section, "employer-subsidized health coverage" means health care coverage for which the 
32.8 	employer pays at least 50 percent of the cost of coverage for the employee.
32.9 	(b) To participate in the program, a qualifying employer agrees to:
32.10 	(1) offer health care coverage through the program to all eligible employees and 
32.11 	their dependents regardless of health status;
32.12 	(2) participate in the program for an initial term of at least one year;
32.13 	(3) pay a percentage of the premium established by the initiative for the employee; 
32.14 	and
32.15 	(4) provide the initiative with any employee information deemed necessary by the 
32.16 	initiative to determine eligibility and premium payments.
32.17 		Subd. 7.Participating providers. Any health care provider participating in the 
32.18 	community-based health network must accept as payment in full the payment rate 
32.19 	established by the initiatives and may not charge to or collect from an enrollee any amount 
32.20 	in access of this amount for any service covered under the program.
32.21 		Subd. 8.Coverage.  (a) The initiatives shall establish the health care benefits offered 
32.22 	through the community-based health care coverage programs. The benefits established 
32.23 	shall include, at a minimum:
32.24 	(1) child health supervision services up to age 18, as defined under section 62A.047; 
32.25 	and
32.26 	(2) preventive services, including:
32.27 	(i) health education and wellness services;
32.28 	(ii) health supervision, evaluation, and follow-up;
32.29 	(iii) immunizations; and
32.30 	(iv) early disease detection.
32.31 	(b) Coverage of health care services offered by the program may be limited to 
32.32 	participating health care providers or health networks. All services covered under the 
32.33 	programs must be services that are offered within the scope of practice of the participating 
32.34 	health care providers.
33.1 	(c) The initiatives may establish cost-sharing requirements. Any co-payment or 
33.2 	deductible provisions established may not discriminate on the basis of age, sex, race, 
33.3 	disability, economic status, or length of enrollment in the programs.
33.4 	(d) If any of the initiatives amends or alters the benefits offered through the program 
33.5 	from the initial offering, that initiative must notify the commissioners commissioner of 
33.6 	health and human services and all enrollees of the benefit change.
33.7 		Subd. 9.Enrollee information. (a) The initiatives must provide an individual or 
33.8 	family who enrolls in the program a clear and concise written statement that includes 
33.9 	the following information:
33.10 	(1) health care services that are covered under the program;
33.11 	(2) any exclusions or limitations on the health care services covered, including any 
33.12 	cost-sharing arrangements or prior authorization requirements;
33.13 	(3) a list of where the health care services can be obtained and that all health 
33.14 	care services must be provided by or through a participating health care provider or 
33.15 	community-based health network;
33.16 	(4) a description of the program's complaint resolution process, including how to 
33.17 	submit a complaint; how to file a complaint with the commissioner of health; and how to 
33.18 	obtain an external review of any adverse decisions as provided under subdivision 10;
33.19 	(5) the conditions under which the program or coverage under the program may 
33.20 	be canceled or terminated; and
33.21 	(6) a precise statement specifying that this program is not an insurance product and, 
33.22 	as such, is exempt from state regulation of insurance products.
33.23 	(b) The commissioners commissioner of health and human services must approve a 
33.24 	copy of the written statement prior to the operation of the program.
33.25 		Subd. 10.Complaint resolution process. (a) The initiatives must establish 
33.26 	a complaint resolution process. The process must make reasonable efforts to resolve 
33.27 	complaints and to inform complainants in writing of the initiative's decision within 60 
33.28 	days of receiving the complaint. Any decision that is adverse to the enrollee shall include 
33.29 	a description of the right to an external review as provided in paragraph (c) and how to 
33.30 	exercise this right.
33.31 	(b) The initiatives must report any complaint that is not resolved within 60 days to 
33.32 	the commissioner of health.
33.33 	(c) The initiatives must include in the complaint resolution process the ability of an 
33.34 	enrollee to pursue the external review process provided under section 62Q.73 with any 
33.35 	decision rendered under this external review process binding on the initiatives.
34.1 		Subd. 11.Data privacy. The initiatives shall establish data privacy policies and 
34.2 	procedures for the program that comply with state and federal data privacy laws.
34.3 		Subd. 12.Limitations on enrollment. (a) The initiatives may limit enrollment in 
34.4 	the program. If enrollment is limited, a waiting list must be established.
34.5 	(b) The initiatives shall not restrict or deny enrollment in the program except for 
34.6 	nonpayment of premiums, fraud or misrepresentation, or as otherwise permitted under 
34.7 	this section.
34.8 	(c) The initiatives may require a certain percentage of participation from eligible 
34.9 	employees of a qualifying employer before coverage can be offered through the program.
34.10 		Subd. 13.Report.  Each initiative shall submit quarterlyan annual status reports
34.11 	report to the commissioner of health on January 15, April 15, July 15, and October 15 of 
34.12 	each year, with the first report due January 15, 2008. Each initiative receiving funding 
34.13 	from the Department of Human Services shall submit status reports to the commissioner 
34.14 	of human services as defined in the terms of the contract with the Department of Human 
34.15 	Services. Each status report shall include:
34.16 	(1) the financial status of the program, including the premium rates, cost per member 
34.17 	per month, claims paid out, premiums received, and administrative expenses;
34.18 	(2) a description of the health care benefits offered and the services utilized;
34.19 	(3) the number of employers participating, the number of employees and dependents 
34.20 	covered under the program, and the number of health care providers participating;
34.21 	(4) a description of the health outcomes to be achieved by the program and a status 
34.22 	report on the performance measurements to be used and collected; and
34.23 	(5) any other information requested by the commissioners commissioner of health, 
34.24 	human services, or commerce or the legislature.
34.25 		Subd. 14.Sunset. This section expires August 31, 2014.

34.26 	Sec. 2. Minnesota Statutes 2011 Supplement, section 144.1222, subdivision 5, is 
34.27 	amended to read:
34.28 		Subd. 5.Swimming pond exemption Exemptions. (a) A public swimming pond 
34.29 	in existence before January 1, 2008, is not a public pool for purposes of this section and 
34.30 	section 157.16, and is exempt from the requirements for public swimming pools under 
34.31 	Minnesota Rules, chapter 4717.
34.32 	(b) A naturally treated swimming pool located in the city of Minneapolis is not 
34.33 	a public pool for purposes of this section and section 157.16, and is exempt from the 
34.34 	requirements for public swimming pools under Minnesota Rules, chapter 4717.
35.1 	(b) (c) Notwithstanding paragraph paragraphs (a) and (b), a public swimming pond 
35.2 	and a naturally treated swimming pool must meet the requirements for public pools 
35.3 	described in subdivisions 1c and 1d.
35.4 	(c) (d) For purposes of this subdivision, a "public swimming pond" means an 
35.5 	artificial body of water contained within a lined, sand-bottom basin, intended for public 
35.6 	swimming, relaxation, or recreational use that includes a water circulation system for 
35.7 	maintaining water quality and does not include any portion of a naturally occurring lake 
35.8 	or stream.
35.9 	(e) For purposes of this subdivision, a "naturally treated swimming pool" means an 
35.10 	artificial body of water contained in a basin, intended for public swimming, relaxation, or 
35.11 	recreational use that uses a chemical free filtration system for maintaining water quality 
35.12 	through natural processes, including the use of plants, beneficial bacteria, and microbes.

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

35.14 	Sec. 3. [144.1225] ADVANCED DIAGNOSTIC IMAGING SERVICES.
35.15 		Subdivision 1.Definition. For purposes of this section, "advanced diagnostic 
35.16 	imaging services" has the meaning given in United States Code, title 42, section 1395M, 
35.17 	except that it does not include x-ray, ultrasound, or fluoroscopy.
35.18 		Subd. 2.Accreditation required. (a)(1) Except as otherwise provided in paragraph 
35.19 	(b), advanced diagnostic imaging services eligible for reimbursement from any source, 
35.20 	including, but not limited to, the individual receiving such services and any individual 
35.21 	or group insurance contract, plan, or policy delivered in this state, including, but not 
35.22 	limited to, private health insurance plans, workers' compensation insurance, motor vehicle 
35.23 	insurance, the State Employee Group Insurance Program (SEGIP), and other state health 
35.24 	care programs, shall be reimbursed only if the facility at which the service has been 
35.25 	conducted and processed is accredited by one of the following entities:
35.26 	(i) American College of Radiology (ACR);
35.27 	(ii) Intersocietal Accreditation Commission (IAC);
35.28 	(iii) the Joint Commission; or
35.29 	(iv) other relevant accreditation organization designated by the secretary of the 
35.30 	United States Department of Health and Human Services pursuant to United States Code, 
35.31 	title 42, section 1395M.
35.32 	(2) All accreditation standards recognized under this section must include, but are 
35.33 	not limited to:
35.34 	(i) provisions establishing qualifications of the physician;
36.1 	(ii) standards for quality control and routine performance monitoring by a medical 
36.2 	physicist;
36.3 	(iii) qualifications of the technologist, including minimum standards of supervised 
36.4 	clinical experience;
36.5 	(iv) guidelines for personnel and patient safety; and
36.6 	(v) standards for initial and ongoing quality control using clinical image review 
36.7 	and quantitative testing.
36.8 	(b) Any facility that performs advanced diagnostic imaging services and is eligible 
36.9 	to receive reimbursement for such services from any source in paragraph (a)(1) must 
36.10 	obtain accreditation by August 1, 2013. Thereafter, all facilities that provide advanced 
36.11 	diagnostic imaging services in the state must obtain accreditation prior to commencing 
36.12 	operations and must, at all times, maintain accreditation with an accrediting organization 
36.13 	as provided in paragraph (a).
36.14 		Subd. 3.Reporting. (a) Advanced diagnostic imaging facilities and providers 
36.15 	of advanced diagnostic imaging services must annually report to the commissioner 
36.16 	demonstration of accreditation as required under this section.
36.17 	(b) The commissioner may promulgate any rules necessary to administer the 
36.18 	reporting required under paragraph (a).

36.19 	Sec. 4. Minnesota Statutes 2010, section 144.292, subdivision 6, is amended to read:
36.20 		Subd. 6.Cost. (a) When a patient requests a copy of the patient's record for 
36.21 	purposes of reviewing current medical care, the provider must not charge a fee.
36.22 	(b) When a provider or its representative makes copies of patient records upon a 
36.23 	patient's request under this section, the provider or its representative may charge the 
36.24 	patient or the patient's representative no more than 75 cents per page, plus $10 for time 
36.25 	spent retrieving and copying the records, unless other law or a rule or contract provide for 
36.26 	a lower maximum charge. This limitation does not apply to x-rays. The provider may 
36.27 	charge a patient no more than the actual cost of reproducing x-rays, plus no more than 
36.28 	$10 for the time spent retrieving and copying the x-rays.
36.29 	(c) The respective maximum charges of 75 cents per page and $10 for time provided 
36.30 	in this subdivision are in effect for calendar year 1992 and may be adjusted annually each 
36.31 	calendar year as provided in this subdivision. The permissible maximum charges shall 
36.32 	change each year by an amount that reflects the change, as compared to the previous year, 
36.33 	in the Consumer Price Index for all Urban Consumers, Minneapolis-St. Paul (CPI-U), 
36.34 	published by the Department of Labor.
37.1 	(d) A provider or its representative may charge the $10 retrieval fee, but must not 
37.2 	charge a per page fee to provide copies of records requested by a patient or the patient's 
37.3 	authorized representative if the request for copies of records is for purposes of appealing 
37.4 	a denial of Social Security disability income or Social Security disability benefits under 
37.5 	title II or title XVI of the Social Security Act; except that no fee shall be charged to a 
37.6 	person who is receiving public assistance, who is represented by an attorney on behalf of 
37.7 	a civil legal services program or a volunteer attorney program based on indigency. For 
37.8 	the purpose of further appeals, a patient may receive no more than two medical record 
37.9 	updates without charge, but only for medical record information previously not provided. 
37.10 	For purposes of this paragraph, a patient's authorized representative does not include units 
37.11 	of state government engaged in the adjudication of Social Security disability claims.

37.12 	Sec. 5. Minnesota Statutes 2010, section 144.298, subdivision 2, is amended to read:
37.13 		Subd. 2.Liability of provider or other person. A person who does any of the 
37.14 	following is liable to the patient for compensatory damages caused by an unauthorized 
37.15 	release or an intentional, unauthorized access, plus costs and reasonable attorney fees:
37.16 	(1) negligently or intentionally requests or releases a health record in violation 
37.17 	of sections 144.291 to 144.297;
37.18 	(2) forges a signature on a consent form or materially alters the consent form of 
37.19 	another person without the person's consent; or
37.20 	(3) obtains a consent form or the health records of another person under false 
37.21 	pretenses; or
37.22 	(4) intentionally violates sections 144.291 to 144.297 by intentionally accessing a 
37.23 	record locator service without authorization.

37.24 	Sec. 6. Minnesota Statutes 2010, section 144.5509, is amended to read:
37.25 	144.5509 RADIATION THERAPY FACILITY CONSTRUCTION.
37.26 	(a) A radiation therapy facility may be constructed only by an entity owned, 
37.27 	operated, or controlled by a hospital licensed according to sections 144.50 to 144.56 either 
37.28 	alone or in cooperation with another entity.
37.29 	(b) Notwithstanding paragraph (a), there shall be a moratorium on the construction 
37.30 	of any radiation therapy facility located in the following counties: Hennepin, Ramsey, 
37.31 	Dakota, Washington, Anoka, Carver, Scott, St. Louis, Sherburne, Benton, Stearns, 
37.32 	Chisago, Isanti, and Wright. This paragraph does not apply to the relocation or 
37.33 	reconstruction of an existing facility owned by a hospital if the relocation or reconstruction 
37.34 	is within one mile of the existing facility. This paragraph does not apply to a radiation 
38.1 	therapy facility that is being built attached to a community hospital in Wright County and 
38.2 	meets the following conditions prior to August 1, 2007: the capital expenditure report 
38.3 	required under Minnesota Statutes, section 62J.17, has been filed with the commissioner 
38.4 	of health; a timely construction schedule is developed, stipulating dates for beginning, 
38.5 	achieving various stages, and completing construction; and all zoning and building permits 
38.6 	applied for. Beginning January 1, 2013, this paragraph does not apply to any construction 
38.7 	necessary to relocate a radiation therapy machine from a community hospital-owned 
38.8 	radiation therapy facility located in the city of Maplewood to a community hospital 
38.9 	campus in the city of Woodbury within the same health system. This paragraph expires 
38.10 	August 1, 2014.
38.11 	(c) Notwithstanding paragraph (a), after August 1, 2014, the construction of a 
38.12 	radiation therapy facility located in any of the following counties: Hennepin, Ramsey, 
38.13 	Dakota, Washington, Anoka, Carver, Scott, St. Louis, Sherburne, Benton, Stearns, 
38.14 	Chisago, Isanti, and Wright, may occur only if the following requirements are met:
38.15 	(1) the entity constructing the radiation therapy facility is controlled by or is under 
38.16 	common control with a hospital licensed under sections 144.50 to 144.56; and
38.17 	(2) the new radiation therapy facility is located at least seven miles from an existing 
38.18 	radiation therapy facility.
38.19 	(d) Any referring physician located within a county identified in paragraph (c) must 
38.20 	provide each patient who is in need of radiation therapy services with a list of all radiation 
38.21 	therapy facilities located within the counties identified in paragraph (c). Physicians 
38.22 	with a financial interest in any radiation therapy facility must disclose to the patient the 
38.23 	existence of the interest.
38.24 	(e) For purposes of this section, "controlled by" or "under common control with" 
38.25 	means the possession, direct or indirect, of the power to direct or cause the direction of the 
38.26 	policies, operations, or activities of an entity, through the ownership of, or right to vote 
38.27 	or to direct the disposition of shares, membership interests, or ownership interests of 
38.28 	the entity.
38.29 	(f) For purposes of this section, "financial interest in any radiation therapy facility" 
38.30 	means a direct or indirect ownership or investment interest in a radiation therapy facility 
38.31 	or a compensation arrangement with a radiation therapy facility.
38.32 	(g) This section does not apply to the relocation or reconstruction of an existing 
38.33 	radiation therapy facility if:
38.34 	(1) the relocation or reconstruction of the facility remains owned by the same entity;
38.35 	(2) the relocation or reconstruction is located within one mile of the existing facility; 
38.36 	and
39.1 	(3) the period in which the existing facility is closed and the relocated or 
39.2 	reconstructed facility begins providing services does not exceed 12 months.

39.3 	Sec. 7. [145.8811] MATERNAL AND CHILD HEALTH ADVISORY TASK 
39.4 	FORCE.
39.5 		Subdivision 1.Composition of task force. The commissioner shall establish and 
39.6 	appoint a Maternal and Child Health Advisory Task Force consisting of 15 members 
39.7 	who will provide equal representation from:
39.8 	(1) professionals with expertise in maternal and child health services;
39.9 	(2) representatives of community health boards as defined in section 145A.02, 
39.10 	subdivision 5; and
39.11 	(3) consumer representatives interested in the health of mothers and children.
39.12 	No members shall be employees of the Minnesota Department of Health. Section 
39.13 	15.059 governs the Maternal and Child Health Advisory Task Force. Notwithstanding 
39.14 	section 15.059, the Maternal and Child Health Advisory Task Force expires June 30, 2015.
39.15 		Subd. 2.Duties. The advisory task force shall meet on a regular basis to perform 
39.16 	the following duties:
39.17 	(1) review and report on the health care needs of mothers and children throughout 
39.18 	the state of Minnesota;
39.19 	(2) review and report on the type, frequency, and impact of maternal and child health 
39.20 	care services provided to mothers and children under existing maternal and child health 
39.21 	care programs, including programs administered by the commissioner of health;
39.22 	(3) establish, review, and report to the commissioner a list of program guidelines 
39.23 	and criteria which the advisory task force considers essential to providing an effective 
39.24 	maternal and child health care program to low-income populations and high-risk persons 
39.25 	and fulfilling the purposes defined in section 145.88;
39.26 	(4) make recommendations to the commissioner for the use of other federal and state 
39.27 	funds available to meet maternal and child health needs;
39.28 	(5) make recommendations to the commissioner of health on priorities for funding 
39.29 	the following maternal and child health services:
39.30 	(i) prenatal, delivery, and postpartum care;
39.31 	(ii) comprehensive health care for children, especially from birth through five 
39.32 	years of age;
39.33 	(iii) adolescent health services;
39.34 	(iv) family planning services;
39.35 	(v) preventive dental care;
40.1 	(vi) special services for chronically ill and disabled children; and
40.2 	(vii) any other services that promote the health of mothers and children; and
40.3 	(6) establish, in consultation with the commissioner and the State Community Health 
40.4 	Advisory Committee established under section 145A.10, subdivision 10, paragraph (a), 
40.5 	statewide outcomes that will improve the health status of mothers and children as required 
40.6 	in section 145A.12, subdivision 7.

40.7 	Sec. 8. Minnesota Statutes 2010, section 145.906, is amended to read:
40.8 	145.906 POSTPARTUM DEPRESSION EDUCATION AND INFORMATION.
40.9 	(a) The commissioner of health shall work with health care facilities, licensed health 
40.10 	and mental health care professionals, the women, infants, and children (WIC) program, 
40.11 	mental health advocates, consumers, and families in the state to develop materials and 
40.12 	information about postpartum depression, including treatment resources, and develop 
40.13 	policies and procedures to comply with this section.
40.14 	(b) Physicians, traditional midwives, and other licensed health care professionals 
40.15 	providing prenatal care to women must have available to women and their families 
40.16 	information about postpartum depression.
40.17 	(c) Hospitals and other health care facilities in the state must provide departing new 
40.18 	mothers and fathers and other family members, as appropriate, with written information 
40.19 	about postpartum depression, including its symptoms, methods of coping with the illness, 
40.20 	and treatment resources.
40.21 	(d) Information about postpartum depression, including its symptoms, potential 
40.22 	impact on families, and treatment resources, must be available at WIC sites.

40.23 	Sec. 9. EVALUATION OF HEALTH AND HUMAN SERVICES REGULATORY 
40.24 	RESPONSIBILITIES.
 40.25 	Relating to the evaluations and legislative report completed pursuant to Laws 
40.26 	2011, First Special Session chapter 9, article 2, section 26, the following activities must 
40.27 	be completed:
40.28 	(1) the commissioners of health and human services must update, revise, and 
40.29 	link the contents of their Web sites related to supervised living facilities, intermediate 
40.30 	care facilities for the developmentally disabled, nursing facilities, board and lodging 
40.31 	establishments, and human services licensed programs so that consumers and providers 
40.32 	can access consistent clear information about the regulations affecting these facilities; and
40.33 	(2) the commissioner of management and budget, in consultation with the 
40.34 	commissioners of health and human services, must evaluate and recommend options 
41.1 	for administering health and human services regulations. The evaluation and 
41.2 	recommendations must be submitted in a report to the chairs and ranking minority 
41.3 	members of the health and human services legislative committees no later than August 1, 
41.4 	2013, and shall at a minimum: (i) identify and evaluate the regulatory responsibilities of 
41.5 	the Departments of Health and Human Services to determine whether to reorganize these 
41.6 	regulatory responsibilities to improve how the state administers health and human services 
41.7 	regulatory functions, or whether there are ways to improve these regulatory activities 
41.8 	without reorganizing; (ii) describe and evaluate the multiple roles of the Department of 
41.9 	Human Services as a direct provider of care services, a regulator, and a payor for state 
41.10 	program services; and (iii) for long-term care regulated in both departments, evaluate and 
41.11 	make recommendations for reasonable client risk assessments, planning for client risk 
41.12 	reductions, and determining reasonable assumptions of client risks in relation to directing 
41.13 	health care, client health care rights, provider liabilities, and provider responsibilities to 
41.14 	provide minimum standards of care.

41.15 	Sec. 10. HEALTH RECORD ACCESS STUDY.
 41.16 	The commissioner of health, in consultation with the Minnesota e-Health Advisory 
41.17 	Committee, shall study the following:
41.18 	(1) the extent to which providers have audit procedures in place to monitor use of 
41.19 	representation of consent and unauthorized access to a patient's health records in violation 
41.20 	of Minnesota Statutes, sections 144.291 to 144.297;
41.21 	(2) the feasibility of informing patients if an intentional, unauthorized access of 
41.22 	their health records occurs; and
41.23 	(3) the feasibility of providing patients with a copy of a provider's audit log showing 
41.24 	who has accessed their health records.
41.25 	The commissioner shall report study findings and any relevant patient privacy and 
41.26 	other recommendations to the legislature by February 15, 2013.

41.27 	Sec. 11. REPORTING PREVALENCE OF SEXUAL VIOLENCE.
 41.28 	The commissioner of health must routinely report to the public and to the legislature 
41.29 	data on the prevalence and incidence of sexual violence in Minnesota, to the extent 
41.30 	federal funding is available for this purpose. The commissioner must use existing data 
41.31 	provided by the Centers for Disease Control and Prevention, or other source as identified 
41.32 	by commissioner.

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

42.1 	Sec. 12. LICENSED HOME CARE PROVIDERS.
 42.2 	By February 1, 2013, the commissioner of health must report recommendations to 
42.3 	the legislature as to development of a comprehensive home care plan to increase inspection 
42.4 	and oversight of licensed home care providers under Minnesota Statutes, chapter 144A.

42.5 	Sec. 13. EVALUATION OF HEALTH AND COMMERCE REGULATORY 
42.6 	RESPONSIBILITIES.
 42.7 	The commissioner of health, in consultation with the commissioner of commerce, 
42.8 	shall report to the legislature by February 15, 2013, on recommendations to maximize 
42.9 	administrative efficiency in the regulation of health maintenance organizations, 
42.10 	county-based purchasers, insurance carriers, and related entities while maintaining quality 
42.11 	health outcomes, regulatory stability, and price stability.

42.12 	Sec. 14. STUDY OF RADIATION THERAPY FACILITIES CAPACITY.
 42.13 	(a) To the extent of available appropriations, the commissioner of health shall 
42.14 	conduct a study of the following: (1) current treatment capacity of the existing radiation 
42.15 	therapy facilities within the state; (2) the present need for radiation therapy services based 
42.16 	on population demographics and new cancer cases; and (3) the projected need in the next 
42.17 	ten years for radiation therapy services and whether the current facilities can sustain 
42.18 	this projected need.
42.19 	(b) The commissioner may contract with a qualified entity to conduct the study. The 
42.20 	study shall be completed by March 15, 2013, and the results shall be submitted to the 
42.21 	chairs and ranking minority members of the health and human services committees of 
42.22 	the legislature.

42.23 	Sec. 15. MERC DISTRIBUTION.
 42.24 	(a) For the distribution of funds for fiscal year 2013, as required under Minnesota 
42.25 	Statutes, section 62J.692, subdivision 4, the commissioner of health shall distribute 
42.26 	$300,000 to Gillette Children's Specialty Healthcare before following the distribution 
42.27 	described under Minnesota Statutes, section 62J.692, subdivision 4, paragraph (a).
42.28 	(b) This section is effective upon federal approval.

42.29 	ARTICLE 3
42.30 	CHILDREN AND FAMILY SERVICES

42.31 	Section 1. Minnesota Statutes 2011 Supplement, section 119B.13, subdivision 7, is 
42.32 	amended to read:
43.1 		Subd. 7.Absent days. (a) Licensed child care providers and license-exempt centers 
43.2 	must not be reimbursed for more than ten full-day absent days per child, excluding 
43.3 	holidays, in a fiscal year. Legal nonlicensed family child care providers must not be 
43.4 	reimbursed for absent days. If a child attends for part of the time authorized to be in care in 
43.5 	a day, but is absent for part of the time authorized to be in care in that same day, the absent 
43.6 	time must be reimbursed but the time must not count toward the ten absent day limit. 
43.7 	Child care providers must only be reimbursed for absent days if the provider has a written 
43.8 	policy for child absences and charges all other families in care for similar absences.
43.9 	(b) Notwithstanding paragraph (a), children in families may exceed the ten absent 
43.10 	days limit if at least one parent is: (1) under the age of 21; (2) does not have a high school 
43.11 	or general equivalency diploma; and (3) is a student in a school district or another similar 
43.12 	program that provides or arranges for child care, parenting support, social services, career 
43.13 	and employment supports, and academic support to achieve high school graduation, upon 
43.14 	request of the program and approval of the county. If a child attends part of an authorized 
43.15 	day, payment to the provider must be for the full amount of care authorized for that day.
43.16 	(b)(c) Child care providers must be reimbursed for up to ten federal or state 
43.17 	holidays or designated holidays per year when the provider charges all families for these 
43.18 	days and the holiday or designated holiday falls on a day when the child is authorized to 
43.19 	be in attendance. Parents may substitute other cultural or religious holidays for the ten 
43.20 	recognized state and federal holidays. Holidays do not count toward the ten absent day 
43.21 	limit.
43.22 	(c)(d) A family or child care provider must not be assessed an overpayment for an 
43.23 	absent day payment unless (1) there was an error in the amount of care authorized for the 
43.24 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
43.25 	the family or provider did not timely report a change as required under law.
43.26 	(d)(e) The provider and family shall receive notification of the number of absent 
43.27 	days used upon initial provider authorization for a family and ongoing notification of the 
43.28 	number of absent days used as of the date of the notification.

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

43.30 	Sec. 2. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
43.31 	to read:
43.32 		Subd. 18c.Drug convictions. (a) The state court administrator shall provide a 
43.33 	report every six months by electronic means to the commissioner of human services, 
43.34 	including the name, address, date of birth, and, if available, driver's license or state 
43.35 	identification card number, date of sentence, effective date of the sentence, and county in 
44.1 	which the conviction occurred of each person convicted of a felony under chapter 152 
44.2 	during the previous six months.
44.3 	(b) The commissioner shall determine whether the individuals who are the subject of 
44.4 	the data reported under paragraph (a) are receiving public assistance under chapter 256D 
44.5 	or 256J, and if the individual is receiving assistance under chapter 256D or 256J, the 
44.6 	commissioner shall instruct the county to proceed under section 256D.024 or 256J.26, 
44.7 	whichever is applicable, for this individual.
44.8 	(c) The commissioner shall not retain any data received under paragraph (a) or (d) 
44.9 	that does not relate to an individual receiving publicly funded assistance under chapter 
44.10 	256D or 256J.
44.11 	(d) In addition to the routine data transfer under paragraph (a), the state court 
44.12 	administrator shall provide a onetime report of the data fields under paragraph (a) for 
44.13 	individuals with a felony drug conviction under chapter 152 dated from July 1, 1997, until 
44.14 	the date of the data transfer. The commissioner shall perform the tasks identified under 
44.15 	paragraph (b) related to this data and shall retain the data according to paragraph (c).

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

44.17 	Sec. 3. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
44.18 	to read:
44.19 		Subd. 18d.Data sharing with the Department of Human Services; multiple 
44.20 	identification cards. (a) The commissioner of public safety shall, on a monthly basis, 
44.21 	provide the commissioner of human services with the first, middle, and last name, 
44.22 	the address, date of birth, and driver's license or state identification card number of all 
44.23 	applicants and holders whose drivers' licenses and state identification cards have been 
44.24 	canceled under section 171.14, paragraph (a), clauses (2) or (3), by the commissioner of 
44.25 	public safety. After the initial data report has been provided by the commissioner of 
44.26 	public safety to the commissioner of human services under this paragraph, subsequent 
44.27 	reports shall only include cancellations that occurred after the end date of the cancellations 
44.28 	represented in the previous data report.
44.29 	(b) The commissioner of human services shall compare the information provided 
44.30 	under paragraph (a) with the commissioner's data regarding recipients of all public 
44.31 	assistance programs managed by the Department of Human Services to determine whether 
44.32 	any individual with multiple identification cards issued by the Department of Public 
44.33 	Safety has illegally or improperly enrolled in any public assistance program managed by 
44.34 	the Department of Human Services.
45.1 	(c) If the commissioner of human services determines that an applicant or recipient 
45.2 	has illegally or improperly enrolled in any public assistance program, the commissioner 
45.3 	shall provide all due process protections to the individual before terminating the individual 
45.4 	from the program according to applicable statute and notifying the county attorney.

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

45.6 	Sec. 4. Minnesota Statutes 2010, section 256.01, is amended by adding a subdivision 
45.7 	to read:
45.8 		Subd. 18e.Data sharing with the Department of Human Services; legal 
45.9 	presence date. (a) The commissioner of public safety shall, on a monthly basis, provide 
45.10 	the commissioner of human services with the first, middle, and last name, address, date of 
45.11 	birth, and driver's license or state identification number of all applicants and holders of 
45.12 	drivers' licenses and state identification cards whose temporary legal presence date has 
45.13 	expired and as a result the driver's license or identification card has been accordingly 
45.14 	canceled under section 171.14 by the commissioner of public safety.
45.15 	(b) The commissioner of human services shall use the information provided under 
45.16 	paragraph (a) to determine whether the eligibility of any recipients of public assistance 
45.17 	programs managed by the Department of Human Services has changed as a result of the 
45.18 	status change in the Department of Public Safety data.
45.19 	(c) If the commissioner of human services determines that a recipient has illegally or 
45.20 	improperly received benefits from any public assistance program, the commissioner shall 
45.21 	provide all due process protections to the individual before terminating the individual from 
45.22 	the program according to applicable statute and notifying the county attorney.

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

45.24 	Sec. 5. Minnesota Statutes 2010, section 256.9831, subdivision 2, is amended to read:
45.25 		Subd. 2.Financial transaction cards. The commissioner shall take all actions 
45.26 	necessary to ensure that no person may obtain benefits under chapter 256 or, 256D, or 256J
45.27 	through the use of a financial transaction card, as defined in section 609.821, subdivision 
45.28 	1, paragraph (a), at a terminal located in or attached to a gambling establishment, liquor 
45.29 	store, tobacco store, or tattoo parlor.

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

46.10 	Sec. 7. Minnesota Statutes 2011 Supplement, section 256.987, subdivision 2, is 
46.11 	amended to read:
46.12 		Subd. 2.Prohibited purchases. An individual with an EBT debit cardholders in
46.13 	card issued for one of the programs listed under subdivision 1 are is prohibited from using 
46.14 	the EBT debit card to purchase tobacco products and alcoholic beverages, as defined in 
46.15 	section 340A.101, subdivision 2. It is unlawful for an EBT cardholder to purchase or 
46.16 	attempt to purchase tobacco products or alcoholic beverages with the cardholder's EBT 
46.17 	card. Any unlawful use prohibited purchases made under this subdivision shall constitute 
46.18 	fraud unlawful use and result in disqualification of the cardholder from the program under 
46.19 	section 256.98, subdivision 8 as provided in subdivision 4.

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

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

46.27 	Sec. 9. Minnesota Statutes 2011 Supplement, section 256.987, is amended by adding a 
46.28 	subdivision to read:
46.29 		Subd. 4.Disqualification. (a) Any person found to be guilty of purchasing tobacco 
46.30 	products or alcoholic beverages with their EBT debit card by a federal or state court or 
46.31 	by an administrative hearing determination, or waiver thereof, through a disqualification 
46.32 	consent agreement, or as part of any approved diversion plan under section 401.065, or 
46.33 	any court-ordered stay which carries with it any probationary or other conditions, in 
47.1 	the: (1) Minnesota family investment program and any affiliated program to include the 
47.2 	diversionary work program and the work participation cash benefit program under chapter 
47.3 	256J; (2) general assistance program under chapter 256D; or (3) Minnesota supplemental 
47.4 	aid program under chapter 256D, shall be disqualified from all of the listed programs.
47.5 	(b) The needs of the disqualified individual shall not be taken into consideration 
47.6 	in determining the grant level for that assistance unit: (1) for one year after the first 
47.7 	offense; (2) for two years after the second offense; and (3) permanently after the third or 
47.8 	subsequent offense.
47.9 	(c) The period of program disqualification shall begin on the date stipulated on the 
47.10 	advance notice of disqualification without possibility for postponement for administrative 
47.11 	stay or administrative hearing and shall continue through completion unless and until the 
47.12 	findings upon which the sanctions were imposed are reversed by a court of competent 
47.13 	jurisdiction. The period for which sanctions are imposed is not subject to review.

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

47.15 	Sec. 10. Minnesota Statutes 2010, section 256D.06, subdivision 1b, is amended to read:
47.16 		Subd. 1b.Earned income savings account. In addition to the $50 disregard 
47.17 	required under subdivision 1, the county agency shall disregard an additional earned 
47.18 	income up to a maximum of $150 $500 per month for: (1) persons residing in facilities 
47.19 	licensed under Minnesota Rules, parts 9520.0500 to 9520.0690 and 9530.2500 to 
47.20 	9530.4000, and for whom discharge and work are part of a treatment plan; (2) persons 
47.21 	living in supervised apartments with services funded under Minnesota Rules, parts 
47.22 	9535.0100 to 9535.1600, and for whom discharge and work are part of a treatment plan; 
47.23 	and (3) persons residing in group residential housing, as that term is defined in section 
47.24 	256I.03, subdivision 3, for whom the county agency has approved a discharge plan 
47.25 	which includes work. The additional amount disregarded must be placed in a separate 
47.26 	savings account by the eligible individual, to be used upon discharge from the residential 
47.27 	facility into the community. For individuals residing in a chemical dependency program 
47.28 	licensed under Minnesota Rules, part 9530.4100, subpart 22, item D, withdrawals from 
47.29 	the savings account require the signature of the individual and for those individuals with 
47.30 	an authorized representative payee, the signature of the payee. A maximum of $1,000
47.31 	$2,000, including interest, of the money in the savings account must be excluded from 
47.32 	the resource limits established by section 256D.08, subdivision 1, clause (1). Amounts in 
47.33 	that account in excess of $1,000 $2,000 must be applied to the resident's cost of care. If 
47.34 	excluded money is removed from the savings account by the eligible individual at any 
47.35 	time before the individual is discharged from the facility into the community, the money is 
48.1 	income to the individual in the month of receipt and a resource in subsequent months. If 
48.2 	an eligible individual moves from a community facility to an inpatient hospital setting, 
48.3 	the separate savings account is an excluded asset for up to 18 months. During that time, 
48.4 	amounts that accumulate in excess of the $1,000 $2,000 savings limit must be applied to 
48.5 	the patient's cost of care. If the patient continues to be hospitalized at the conclusion of the 
48.6 	18-month period, the entire account must be applied to the patient's cost of care.

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

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

48.20 	Sec. 12. Minnesota Statutes 2011 Supplement, section 256E.35, subdivision 6, is 
48.21 	amended to read:
48.22 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
48.23 	participating household must transfer funds withdrawn from a family asset account to its 
48.24 	matching fund custodial account held by the fiscal agent, according to the family asset 
48.25 	agreement. The fiscal agent must determine if the match request is for a permissible use 
48.26 	consistent with the household's family asset agreement.
48.27 	The fiscal agent must ensure the household's custodial account contains the 
48.28 	applicable matching funds to match the balance in the household's account, including 
48.29 	interest, on at least a quarterly basis and at the time of an approved withdrawal. Matches 
48.30 	must be provided as follows:
48.31 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every 
48.32 	$1 of funds withdrawn from the family asset account equal to the lesser of $720 per 
48.33 	year or a $3,000 lifetime limit; and
49.1 	(2) from nonstate funds, a matching contribution of no less than $1.50 for every $1 
49.2 	of funds withdrawn from the family asset account equal to the lesser of $720 per year or 
49.3 	a $3,000 lifetime limit.
49.4 	(b) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
49.5 	direct payment to the vendor of the goods or services for the permissible use.

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

49.21 	Sec. 14. Minnesota Statutes 2011 Supplement, section 256I.05, subdivision 1a, is 
49.22 	amended to read:
49.23 		Subd. 1a.Supplementary service rates. (a) Subject to the provisions of section 
49.24 	256I.04, subdivision 3, the county agency may negotiate a payment not to exceed $426.37 
49.25 	for other services necessary to provide room and board provided by the group residence 
49.26 	if the residence is licensed by or registered by the Department of Health, or licensed by 
49.27 	the Department of Human Services to provide services in addition to room and board, 
49.28 	and if the provider of services is not also concurrently receiving funding for services for 
49.29 	a recipient under a home and community-based waiver under title XIX of the Social 
49.30 	Security Act; or funding from the medical assistance program under section 256B.0659, 
49.31 	for personal care services for residents in the setting; or residing in a setting which 
49.32 	receives funding under Minnesota Rules, parts 9535.2000 to 9535.3000. If funding is 
49.33 	available for other necessary services through a home and community-based waiver, or 
49.34 	personal care services under section 256B.0659, then the GRH rate is limited to the rate 
50.1 	set in subdivision 1. Unless otherwise provided in law, in no case may the supplementary 
50.2 	service rate exceed $426.37. The registration and licensure requirement does not apply to 
50.3 	establishments which are exempt from state licensure because they are located on Indian 
50.4 	reservations and for which the tribe has prescribed health and safety requirements. Service 
50.5 	payments under this section may be prohibited under rules to prevent the supplanting of 
50.6 	federal funds with state funds. The commissioner shall pursue the feasibility of obtaining 
50.7 	the approval of the Secretary of Health and Human Services to provide home and 
50.8 	community-based waiver services under title XIX of the Social Security Act for residents 
50.9 	who are not eligible for an existing home and community-based waiver due to a primary 
50.10 	diagnosis of mental illness or chemical dependency and shall apply for a waiver if it is 
50.11 	determined to be cost-effective.
50.12 	(b) The commissioner is authorized to make cost-neutral transfers from the GRH 
50.13 	fund for beds under this section to other funding programs administered by the department 
50.14 	after consultation with the county or counties in which the affected beds are located. 
50.15 	The commissioner may also make cost-neutral transfers from the GRH fund to county 
50.16 	human service agencies for beds permanently removed from the GRH census under a plan 
50.17 	submitted by the county agency and approved by the commissioner. The commissioner 
50.18 	shall report the amount of any transfers under this provision annually to the legislature.
50.19 	(c) The provisions of paragraph (b) do not apply to a facility that has its 
50.20 	reimbursement rate established under section 256B.431, subdivision 4, paragraph (c).
50.21 	(d) Counties must not negotiate supplementary service rates with providers of group 
50.22 	residential housing that are licensed as board and lodging with special services and that 
50.23 	do not encourage a policy of sobriety on their premises and make referrals to available 
50.24 	community services for volunteer and employment opportunities for residents.

50.25 	Sec. 15. Minnesota Statutes 2010, section 256I.05, subdivision 1e, is amended to read:
50.26 		Subd. 1e.Supplementary rate for certain facilities. (a) Notwithstanding the 
50.27 	provisions of subdivisions 1a and 1c, beginning July 1, 2005, a county agency shall 
50.28 	negotiate a supplementary rate in addition to the rate specified in subdivision 1, not to 
50.29 	exceed $700 per month, including any legislatively authorized inflationary adjustments, 
50.30 	for a group residential housing provider that:
50.31 	(1) is located in Hennepin County and has had a group residential housing contract 
50.32 	with the county since June 1996;
50.33 	(2) operates in three separate locations a 75-bed facility, a 50-bed facility, and a 
50.34 	26-bed facility; and
51.1 	(3) serves a chemically dependent clientele, providing 24 hours per day supervision 
51.2 	and limiting a resident's maximum length of stay to 13 months out of a consecutive 
51.3 	24-month period.
51.4 	(b) Notwithstanding subdivisions 1a and 1c, a county agency shall negotiate a 
51.5 	supplementary rate in addition to the rate specified in subdivision 1, not to exceed $700 
51.6 	per month, including any legislatively authorized inflationary adjustments, of a group 
51.7 	residential provider that:
51.8 	(1) is located in St. Louis County and has had a group residential housing contract 
51.9 	with the county since 2006;
51.10 	(2) operates a 62-bed facility; and
51.11 	(3) serves a chemically dependent adult male clientele, providing 24 hours per 
51.12 	day supervision and limiting a resident's maximum length of stay to 13 months out of 
51.13 	a consecutive 24-month period.
51.14 	(c) Notwithstanding subdivisions 1a and 1c, beginning July 1, 2013, a county agency 
51.15 	shall negotiate a supplementary rate in addition to the rate specified in subdivision 1, not 
51.16 	to exceed $700 per month, including any legislatively authorized inflationary adjustments, 
51.17 	for the group residential provider described under paragraphs (a) and (b), not to exceed 
51.18 	an additional 115 beds.

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

51.20 	Sec. 16. Minnesota Statutes 2010, section 256J.26, subdivision 1, is amended to read:
51.21 		Subdivision 1.Person convicted of drug offenses. (a) Applicants or participants
51.22 	An individual who have has been convicted of a felony level drug offense committed after 
51.23 	July 1, 1997, may, if otherwise eligible, receive MFIP benefits subject to the following 
51.24 	conditions: during the previous ten years from the date of application or recertification is 
51.25 	subject to the following:
51.26 	(1) Benefits for the entire assistance unit must be paid in vendor form for shelter and 
51.27 	utilities during any time the applicant is part of the assistance unit.
51.28 	(2) The convicted applicant or participant shall be subject to random drug testing as 
51.29 	a condition of continued eligibility and following any positive test for an illegal controlled 
51.30 	substance is subject to the following sanctions:
51.31 	(i) for failing a drug test the first time, the residual amount of the participant's grant 
51.32 	after making vendor payments for shelter and utility costs, if any, must be reduced by an 
51.33 	amount equal to 30 percent of the MFIP standard of need for an assistance unit of the same 
51.34 	size. When a sanction under this subdivision is in effect, the job counselor must attempt 
51.35 	to meet with the person face-to-face. During the face-to-face meeting, the job counselor 
52.1 	must explain the consequences of a subsequent drug test failure and inform the participant 
52.2 	of the right to appeal the sanction under section 256J.40. If a face-to-face meeting is 
52.3 	not possible, the county agency must send the participant a notice of adverse action as 
52.4 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
52.5 	required in the face-to-face meeting; or
52.6 	(ii) for failing a drug test two times, the participant is permanently disqualified from 
52.7 	receiving MFIP assistance, both the cash and food portions. The assistance unit's MFIP 
52.8 	grant must be reduced by the amount which would have otherwise been made available to 
52.9 	the disqualified participant. Disqualification under this item does not make a participant 
52.10 	ineligible for food stamps or food support. Before a disqualification under this provision is 
52.11 	imposed, the job counselor must attempt to meet with the participant face-to-face. During 
52.12 	the face-to-face meeting, the job counselor must identify other resources that may be 
52.13 	available to the participant to meet the needs of the family and inform the participant of 
52.14 	the right to appeal the disqualification under section 256J.40. If a face-to-face meeting is 
52.15 	not possible, the county agency must send the participant a notice of adverse action as 
52.16 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
52.17 	required in the face-to-face meeting.
52.18 	(3) A participant who fails a drug test the first time and is under a sanction due to 
52.19 	other MFIP program requirements is considered to have more than one occurrence of 
52.20 	noncompliance and is subject to the applicable level of sanction as specified under section 
52.21 	256J.46, subdivision 1, paragraph (d).
52.22 	(b) Applicants requesting only food stamps or food support or participants receiving 
52.23 	only food stamps or food support, who have been convicted of a drug offense that 
52.24 	occurred after July 1, 1997, may, if otherwise eligible, receive food stamps or food support 
52.25 	if the convicted applicant or participant is subject to random drug testing as a condition 
52.26 	of continued eligibility. Following a positive test for an illegal controlled substance, the 
52.27 	applicant is subject to the following sanctions:
52.28 	(1) for failing a drug test the first time, food stamps or food support shall be reduced 
52.29 	by an amount equal to 30 percent of the applicable food stamp or food support allotment. 
52.30 	When a sanction under this clause is in effect, a job counselor must attempt to meet with 
52.31 	the person face-to-face. During the face-to-face meeting, a job counselor must explain 
52.32 	the consequences of a subsequent drug test failure and inform the participant of the right 
52.33 	to appeal the sanction under section 256J.40. If a face-to-face meeting is not possible, 
52.34 	a county agency must send the participant a notice of adverse action as provided in 
52.35 	section 256J.31, subdivisions 4 and 5, and must include the information required in the 
52.36 	face-to-face meeting; and
53.1 	(2) for failing a drug test two times, the participant is permanently disqualified from 
53.2 	receiving food stamps or food support. Before a disqualification under this provision is 
53.3 	imposed, a job counselor must attempt to meet with the participant face-to-face. During 
53.4 	the face-to-face meeting, the job counselor must identify other resources that may be 
53.5 	available to the participant to meet the needs of the family and inform the participant of 
53.6 	the right to appeal the disqualification under section 256J.40. If a face-to-face meeting 
53.7 	is not possible, a county agency must send the participant a notice of adverse action as 
53.8 	provided in section 256J.31, subdivisions 4 and 5, and must include the information 
53.9 	required in the face-to-face meeting.
53.10 	(c) (b) For the purposes of this subdivision, "drug offense" means an offense that 
53.11 	occurred after July 1, 1997, during the previous ten years from the date of application 
53.12 	or recertification of sections 152.021 to 152.025, 152.0261, 152.0262, or152.096, or 
53.13 	152.137. Drug offense also means a conviction in another jurisdiction of the possession, 
53.14 	use, or distribution of a controlled substance, or conspiracy to commit any of these 
53.15 	offenses, if the offense occurred after July 1, 1997, during the previous ten years from 
53.16 	the date of application or recertification and the conviction is a felony offense in that 
53.17 	jurisdiction, or in the case of New Jersey, a high misdemeanor.

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

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

53.31 	Sec. 18. Minnesota Statutes 2010, section 256J.575, subdivision 1, is amended to read:
53.32 		Subdivision 1.Purpose. (a) The Family stabilization services serve families who 
53.33 	are not making significant progress within the regular employment and training services 
54.1 	track of the Minnesota family investment program (MFIP) due to a variety of barriers to 
54.2 	employment.
54.3 	(b) The goal of the services is to stabilize and improve the lives of families at risk 
54.4 	of long-term welfare dependency or family instability due to employment barriers such 
54.5 	as physical disability, mental disability, age, or providing care for a disabled household 
54.6 	member. These services promote and support families to achieve the greatest possible 
54.7 	degree of self-sufficiency.

54.8 	Sec. 19. Minnesota Statutes 2010, section 256J.575, subdivision 2, is amended to read:
54.9 		Subd. 2.Definitions. The terms used in this section have the meanings given them 
54.10 	in paragraphs (a) to (d) and (b).
54.11 	(a) "Case manager" means the county-designated staff person or employment 
54.12 	services counselor.
54.13 	(b) "Case management" "Family stabilization services" means the services
54.14 	programs, activities, and services provided by or through the county agency or through the 
54.15 	employment services agency to participating families, including. Services include, but 
54.16 	are not limited to, assessment as defined in section 256J.521, subdivision 1, information,
54.17 	referrals, and assistance in the preparation and implementation of a family stabilization 
54.18 	plan under subdivision 5.
54.19 	(c) (b) "Family stabilization plan" means a plan developed by a case manager 
54.20 	and with the participant, which identifies the participant's most appropriate path to 
54.21 	unsubsidized employment, family stability, and barrier reduction, taking into account the 
54.22 	family's circumstances.
54.23 	(d) "Family stabilization services" means programs, activities, and services in this 
54.24 	section that provide participants and their family members with assistance regarding, 
54.25 	but not limited to:
54.26 	(1) obtaining and retaining unsubsidized employment;
54.27 	(2) family stability;
54.28 	(3) economic stability; and
54.29 	(4) barrier reduction.
54.30 	The goal of the services is to achieve the greatest degree of economic self-sufficiency 
54.31 	and family well-being possible for the family under the circumstances.

54.32 	Sec. 20. Minnesota Statutes 2010, section 256J.575, subdivision 5, is amended to read:
54.33 		Subd. 5.Case management; Family stabilization plans; coordinated services.
 54.34 	(a) The county agency or employment services provider shall provide family stabilization 
55.1 	services to families through a case management model. A case manager shall be assigned 
55.2 	to each participating family within 30 days after the family is determined to be eligible 
55.3 	for family stabilization services. The case manager, with the full involvement of the 
55.4 	participant, shall recommend, and the county agency shall establish and modify as 
55.5 	necessary, a family stabilization plan for each participating family. Once a participant 
55.6 	has been determined eligible for family stabilization services, the county agency or 
55.7 	employment services provider must attempt to meet with the participant to develop a 
55.8 	plan within 30 days.
55.9 	(b) If a participant is already assigned to a county case manager or a 
55.10 	county-designated case manager in social services, disability services, or housing services 
55.11 	that case manager already assigned may be the case manager for purposes of these services.
55.12 	(b) The family stabilization plan must include:
55.13 	(1) each participant's plan for long-term self-sufficiency, including an employment 
55.14 	goal where applicable;
55.15 	(2) an assessment of each participant's strengths and barriers, and any special 
55.16 	circumstances of the participant's family that impact, or are likely to impact, the 
55.17 	participant's progress towards the goals in the plan; and
55.18 	(3) an identification of the services, supports, education, training, and 
55.19 	accommodations needed to reduce or overcome any barriers to enable the family to 
55.20 	achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
55.21 	(c) The case manager and the participant shall meet within 30 days of the family's 
55.22 	referral to the case manager. The initial family stabilization plan must be completed within 
55.23 	30 days of the first meeting with the case manager. The case manager shall establish a 
55.24 	schedule for periodic review of the family stabilization plan that includes personal contact 
55.25 	with the participant at least once per month. In addition, the case manager shall review 
55.26 	and, if necessary, modify the plan under the following circumstances:
55.27 	(1) there is a lack of satisfactory progress in achieving the goals of the plan;
55.28 	(2) the participant has lost unsubsidized or subsidized employment;
55.29 	(3) a family member has failed or is unable to comply with a family stabilization 
55.30 	plan requirement;
55.31 	(4) services, supports, or other activities required by the plan are unavailable;
55.32 	(5) changes to the plan are needed to promote the well-being of the children; or
55.33 	(6) the participant and case manager determine that the plan is no longer appropriate 
55.34 	for any other reason.
56.1 	(c) Participants determined eligible for family stabilization services must have 
56.2 	access to employment and training services under sections 256J.515 to 256J.575, to the 
56.3 	extent these services are available to other MFIP participants.

56.4 	Sec. 21. Minnesota Statutes 2010, section 256J.575, subdivision 6, is amended to read:
56.5 		Subd. 6.Cooperation with services requirements. (a) A participant who is eligible 
56.6 	for family stabilization services under this section shall comply with paragraphs (b) to (d).
56.7 	(b) Participants shall engage in family stabilization plan services for the appropriate 
56.8 	number of hours per week that the activities are scheduled and available, based on the 
56.9 	needs of the participant and the participant's family, unless good cause exists for not 
56.10 	doing so, as defined in section 256J.57, subdivision 1. The appropriate number of hours 
56.11 	must be based on the participant's plan.
56.12 	(c) The case manager county agency or employment services agency shall review 
56.13 	the participant's progress toward the goals in the family stabilization plan every six 
56.14 	months to determine whether conditions have changed, including whether revisions to 
56.15 	the plan are needed.
56.16 	(d) A participant's requirement to comply with any or all family stabilization plan 
56.17 	requirements under this subdivision is excused when the case management services, 
56.18 	training and educational services, or family support services identified in the participant's 
56.19 	family stabilization plan are unavailable for reasons beyond the control of the participant, 
56.20 	including when money appropriated is not sufficient to provide the services.

56.21 	Sec. 22. Minnesota Statutes 2010, section 256J.575, subdivision 8, is amended to read:
56.22 		Subd. 8.Funding. (a) The commissioner of human services shall treat MFIP 
56.23 	expenditures made to or on behalf of any minor child under this section, who is part of a 
56.24 	household that meets criteria in subdivision 3, as expenditures under a separately funded 
56.25 	state program. These expenditures shall not count toward the state's maintenance of effort 
56.26 	requirements under the federal TANF program.
56.27 	(b) A family is no longer part of a separately funded program under this section if 
56.28 	the caregiver no longer meets the criteria for family stabilization services in subdivision 
56.29 	3, or if it is determined at recertification that a caregiver with a child under the age of six 
56.30 	is working at least 87 hours per month in paid or unpaid employment, or a caregiver 
56.31 	without a child under the age of six is working at least 130 hours per month in paid or 
56.32 	unpaid employment, whichever occurs sooner.

56.33 	Sec. 23. [626.5533] REPORTING POTENTIAL WELFARE FRAUD.
57.1 		Subdivision 1.Reports required. A peace officer must report to the head of the 
57.2 	officer's department every arrest where the person arrested possesses more than one 
57.3 	welfare electronic benefit transfer card. Each report must include all of the following:
57.4 	(1) the name of the suspect;
57.5 	(2) the suspect's drivers license or state identification card number, where available;
57.6 	(3) the suspect's home address;
57.7 	(4) the number on each card;
57.8 	(5) the name on each electronic benefit card in the possession of the suspect, in cases 
57.9 	where the card has a name printed on it;
57.10 	(6) the date of the alleged offense;
57.11 	(7) the location of the alleged offense;
57.12 	(8) the alleged offense; and
57.13 	(9) any other information the commissioner of human services deems necessary.
57.14 		Subd. 2.Use of information collected. The head of a local law enforcement agency 
57.15 	or state law enforcement department that employs peace officers licensed under section 
57.16 	626.843 must forward the report required under subdivision 1 to the commissioner of 
57.17 	human services within 30 days of receiving the report. The commissioner of human 
57.18 	services shall use the report to determine whether the suspect is authorized to possess any 
57.19 	of the electronic benefit cards found in the suspect's possession.
57.20 		Subd. 3.Reporting forms. The commissioner of human services, in consultation 
57.21 	with the superintendent of the Bureau of Criminal Apprehension, shall adopt reporting 
57.22 	forms to be used by law enforcement agencies in making the reports required under this 
57.23 	section.

57.24 	Sec. 24. Minnesota Statutes 2010, section 626.556, is amended by adding a subdivision 
57.25 	to read:
57.26 		Subd. 10n.Required referral to early intervention services. A child under 
57.27 	age three who is involved in a substantiated case of maltreatment shall be referred for 
57.28 	screening under the Individuals with Disabilities Education Act, part C. Parents must be 
57.29 	informed that the evaluation and acceptance of services are voluntary. The commissioner 
57.30 	of human services shall monitor referral rates by county and annually report the 
57.31 	information to the legislature beginning March 15, 2014. Refusal to have a child screened 
57.32 	is not a basis for a child in need of protection or services petition under chapter 260C.

57.33 	Sec. 25. Laws 2010, chapter 374, section 1, is amended to read:
58.1 	Section 1. LADDER OUT OF POVERTY ASSET DEVELOPMENT AND 
58.2 	FINANCIAL LITERACY TASK FORCE.
 58.3 		Subdivision 1.Creation. (a) The task force consists of the following members:
58.4 	(1) four senators, including two members of the majority party and two members of 
58.5 	the minority party, appointed by the Subcommittee on Committees of the Committee on 
58.6 	Rules and Administration of the senate;
58.7 	(2) four members of the house of representatives, including two members of the 
58.8 	majority party, appointed by the speaker of the house, and two members of the minority 
58.9 	party, appointed by the minority leader; and
58.10 	(3) the commissioner of the Minnesota Department of Commerce or the 
58.11 	commissioner's designee; and.
58.12 	(4) the attorney general or the attorney general's designee.
58.13 	(b) The task force shall ensure that representatives of the following have the 
58.14 	opportunity to meet with and present views to the task force: the attorney general; credit 
58.15 	unions; independent community banks; state and federal financial institutions; community 
58.16 	action agencies; faith-based financial counseling agencies; faith-based social justice 
58.17 	organizations; legal services organizations representing low-income persons; nonprofit 
58.18 	organizations providing free tax preparation services as part of the volunteer income tax 
58.19 	assistance program; relevant state and local agencies; University of Minnesota faculty 
58.20 	involved in personal and family financial education; philanthropic organizations that have 
58.21 	as one of their missions combating predatory lending; organizations representing older 
58.22 	Minnesotans; and organizations representing the interests of women, Latinos and Latinas, 
58.23 	African-Americans, Asian-Americans, American Indians, and immigrants.
58.24 		Subd. 2.Duties. (a) At a minimum, the task force must identify specific policies, 
58.25 	strategies, and actions to: reduce asset poverty and increase household financial security 
58.26 	by improving opportunities for households to earn, learn, save, invest, and protect 
58.27 	assets through expansion of such asset building opportunities as the Family Assets for 
58.28 	Independence in Minnesota (FAIM) program and Earned Income Tax Credit (EITC) 
58.29 	program.
58.30 	(1) increase opportunities for poor and near-poor families and individuals to acquire 
58.31 	assets and create and build wealth;
58.32 	(2) expand the utilization of Family Assets for Independence in Minnesota (FAIM) 
58.33 	or other culturally specific individual development account programs;
58.34 	(3) reduce or eliminate predatory financial practices in Minnesota through regulatory 
58.35 	actions, legislative enactments, and the development and deployment of alternative, 
58.36 	nonpredatory financial products;
59.1 	(4) provide incentives or assistance to private sector financial institutions to 
59.2 	offer additional programs and services that provide alternatives to and education about 
59.3 	predatory financial products;
59.4 	(5) provide financial literacy information to low-income families and individuals at 
59.5 	the time the recipient has the ability, opportunity, and motivation to receive, understand, 
59.6 	and act on the information provided; and
59.7 	(6) identify incentives and mechanisms to increase community engagement in 
59.8 	combating poverty and helping poor and near-poor families and individuals to acquire 
59.9 	assets and create and build wealth.
59.10 	For purposes of this section, "asset poverty" means an individual's or family's 
59.11 	inability to meet fixed financial obligations and other financial requirements of daily living 
59.12 	with existing assets for a three-month period in the event of a disruption in income or 
59.13 	extraordinary economic emergency.
59.14 	(b) By June 1, 2012 During the 2013 and 2014 legislative sessions, the task force 
59.15 	must provide the legislature with written recommendations and any draft legislation
59.16 	necessary to implement the recommendations to the chairs and ranking minority members 
59.17 	of the legislative committees and divisions with jurisdiction over commerce and consumer 
59.18 	protection fulfill the duties enumerated in paragraph (a). The recommendations may 
59.19 	include draft legislation.
59.20 		Subd. 3.Administrative provisions. (a) The director of the Legislative 
59.21 	Coordinating Commission, or a designee of the director, must convene the initial meeting 
59.22 	of the task force by September 15, 2010. The members of the task force must elect a chair 
59.23 	or cochairs from the legislative members at the initial meeting.
59.24 	(b) Members of the task force serve without compensation or payment of expenses 
59.25 	except as provided in this paragraph. To the extent possible, meetings of the task force 
59.26 	shall be scheduled on dates when legislative members of the task force are able to 
59.27 	attend legislative meetings that would make them eligible to receive legislative per diem 
59.28 	payments.
59.29 	(c) The task force expires June 1, 2012, or upon the submission of the report required 
59.30 	under subdivision 3, whichever is earlier 2014.
59.31 	(d) The task force may accept gifts and grants, which are accepted on behalf of the 
59.32 	state and constitute donations to the state. The funds must be deposited in an account in 
59.33 	the special revenue fund and are appropriated to the Legislative Coordinating Commission 
59.34 	for purposes of the task force.
59.35 	(e) The Legislative Coordinating Commission shall provide fiscal services to the 
59.36 	task force as needed under this subdivision.
60.1 		Subd. 4.Deadline for appointments and designations. The appointments and 
60.2 	designations authorized under this section must be completed no later than August 15, 
60.3 	2010 2012.

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

60.5 	Sec. 26. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
60.6 	1, is amended to read:

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

60.8	Appropriations by Fund
	
60.9		2012
	2013
	
60.10	General
	5,657,737,000
	5,584,471,000
	
60.11
60.12	State Government 
Special Revenue
	3,565,000
	3,565,000
	
60.13	Health Care Access
	330,435,000
	353,283,000
	
60.14	Federal TANF
	265,378,000
	268,101,000
	
60.15	Lottery Prize
	1,665,000
	1,665,000
	
60.16	Special Revenue
	500,000
	1,000,000
	
60.17 	Receipts for Systems Projects. 
60.18 	Appropriations and federal receipts for 
60.19 	information systems projects for MAXIS, 
60.20 	PRISM, MMIS, and SSIS must be deposited 
60.21 	in the state systems account authorized in 
60.22 	Minnesota Statutes, section 256.014. Money 
60.23 	appropriated for computer projects approved 
60.24 	by the Minnesota Office of Enterprise 
60.25 	Technology, funded by the legislature, 
60.26 	and approved by the commissioner 
60.27 	of management and budget, may be 
60.28 	transferred from one project to another 
60.29 	and from development to operations as the 
60.30 	commissioner of human services considers 
60.31 	necessary. Any unexpended balance in 
60.32 	the appropriation for these projects does 
60.33 	not cancel but is available for ongoing 
60.34 	development and operations.
61.1 	Nonfederal Share Transfers. The 
61.2 	nonfederal share of activities for which 
61.3 	federal administrative reimbursement is 
61.4 	appropriated to the commissioner may be 
61.5 	transferred to the special revenue fund.
61.6 	TANF Maintenance of Effort.
61.7 	(a) In order to meet the basic maintenance 
61.8 	of effort (MOE) requirements of the TANF 
61.9 	block grant specified under Code of Federal 
61.10 	Regulations, title 45, section 263.1, the 
61.11 	commissioner may only report nonfederal 
61.12 	money expended for allowable activities 
61.13 	listed in the following clauses as TANF/MOE 
61.14 	expenditures:
61.15 	(1) MFIP cash, diversionary work program, 
61.16 	and food assistance benefits under Minnesota 
61.17 	Statutes, chapter 256J;
61.18 	(2) the child care assistance programs 
61.19 	under Minnesota Statutes, sections 119B.03
61.20 	and 119B.05, and county child care 
61.21 	administrative costs under Minnesota 
61.22 	Statutes, section 119B.15;
61.23 	(3) state and county MFIP administrative 
61.24 	costs under Minnesota Statutes, chapters 
61.25 	256J and 256K;
61.26 	(4) state, county, and tribal MFIP 
61.27 	employment services under Minnesota 
61.28 	Statutes, chapters 256J and 256K;
61.29 	(5) expenditures made on behalf of legal 
61.30 	noncitizen MFIP recipients who qualify for 
61.31 	the MinnesotaCare program under Minnesota 
61.32 	Statutes, chapter 256L;
62.1 	(6) qualifying working family credit 
62.2 	expenditures under Minnesota Statutes, 
62.3 	section 290.0671; and
62.4 	(7) qualifying Minnesota education credit 
62.5 	expenditures under Minnesota Statutes, 
62.6 	section 290.0674.
62.7 	(b) The commissioner shall ensure that 
62.8 	sufficient qualified nonfederal expenditures 
62.9 	are made each year to meet the state's 
62.10 	TANF/MOE requirements. For the activities 
62.11 	listed in paragraph (a), clauses (2) to 
62.12 	(7), the commissioner may only report 
62.13 	expenditures that are excluded from the 
62.14 	definition of assistance under Code of 
62.15 	Federal Regulations, title 45, section 260.31.
62.16 	(c) For fiscal years beginning with state fiscal 
62.17 	year 2003, the commissioner shall assure 
62.18 	that the maintenance of effort used by the 
62.19 	commissioner of management and budget 
62.20 	for the February and November forecasts 
62.21 	required under Minnesota Statutes, section 
62.22 	16A.103, contains expenditures under 
62.23 	paragraph (a), clause (1), equal to at least 16 
62.24 	percent of the total required under Code of 
62.25 	Federal Regulations, title 45, section 263.1.
62.26 	(d) Minnesota Statutes, section 256.011, 
62.27 	subdivision 3, which requires that federal 
62.28 	grants or aids secured or obtained under that 
62.29 	subdivision be used to reduce any direct 
62.30 	appropriations provided by law, do not apply 
62.31 	if the grants or aids are federal TANF funds.
62.32 	(e) For the federal fiscal years beginning on 
62.33 	or after October 1, 2007, the commissioner 
62.34 	may not claim an amount of TANF/MOE in 
62.35 	excess of the 75 percent standard in Code 
63.1 	of Federal Regulations, title 45, section 
63.2 	263.1(a)(2), except:
63.3 	(1) to the extent necessary to meet the 80 
63.4 	percent standard under Code of Federal 
63.5 	Regulations, title 45, section 263.1(a)(1), 
63.6 	if it is determined by the commissioner 
63.7 	that the state will not meet the TANF work 
63.8 	participation target rate for the current year;
63.9 	(2) to provide any additional amounts 
63.10 	under Code of Federal Regulations, title 45, 
63.11 	section 264.5, that relate to replacement of 
63.12 	TANF funds due to the operation of TANF 
63.13 	penalties; and
63.14 	(3) to provide any additional amounts that 
63.15 	may contribute to avoiding or reducing 
63.16 	TANF work participation penalties through 
63.17 	the operation of the excess MOE provisions 
63.18 	of Code of Federal Regulations, title 45, 
63.19 	section 261.43 (a)(2).
63.20 	For the purposes of clauses (1) to (3), 
63.21 	the commissioner may supplement the 
63.22 	MOE claim with working family credit 
63.23 	expenditures or other qualified expenditures 
63.24 	to the extent such expenditures are otherwise 
63.25 	available after considering the expenditures 
63.26 	allowed in this subdivision.
63.27 	(f) Notwithstanding any contrary provision 
63.28 	in this article, paragraphs (a) to (e) expire 
63.29 	June 30, 2015.
63.30 	Working Family Credit Expenditures 
63.31 	as TANF/MOE. The commissioner may 
63.32 	claim as TANF maintenance of effort up to 
63.33 	$6,707,000 per year of working family credit 
63.34 	expenditures for fiscal years 2012 and 2013.
64.1 	Working Family Credit Expenditures 
64.2 	to be Claimed for TANF/MOE. The 
64.3 	commissioner may count the following 
64.4 	amounts of working family credit 
64.5 	expenditures as TANF/MOE:
64.6 	(1) fiscal year 2012, $23,692,000;
64.7 	(2) fiscal year 2013, $44,969,000
64.8 	$51,978,000;
64.9 	(3) fiscal year 2014, $32,579,000
64.10 	$43,576,000; and
64.11 	(4) fiscal year 2015, $32,476,000
64.12 	$43,548,000.
64.13 	Notwithstanding any contrary provision in 
64.14 	this article, this rider expires June 30, 2015.
64.15 	TANF Transfer to Federal Child Care 
64.16 	and Development Fund. (a) The following 
64.17 	TANF fund amounts are appropriated 
64.18 	to the commissioner for purposes of 
64.19 	MFIP/Transition Year Child Care Assistance 
64.20 	under Minnesota Statutes, section 119B.05:
64.21 	(1) fiscal year 2012, $10,020,000;
64.22 	(2) fiscal year 2013, $28,020,000
64.23 	$28,022,000;
64.24 	(3) fiscal year 2014, $14,020,000
64.25 	$14,030,000; and
64.26 	(4) fiscal year 2015, $14,020,000
64.27 	$14,030,000.
64.28 	(b) The commissioner shall authorize the 
64.29 	transfer of sufficient TANF funds to the 
64.30 	federal child care and development fund to 
64.31 	meet this appropriation and shall ensure that 
64.32 	all transferred funds are expended according 
65.1 	to federal child care and development fund 
65.2 	regulations.
65.3 	Food Stamps Employment and Training 
65.4 	Funds. (a) Notwithstanding Minnesota 
65.5 	Statutes, sections 256D.051, subdivisions 1a, 
65.6 	6b, and 6c, and 256J.626, federal food stamps 
65.7 	employment and training funds received 
65.8 	as reimbursement for child care assistance 
65.9 	program expenditures must be deposited in 
65.10 	the general fund. The amount of funds must 
65.11 	be limited to $500,000 per year in fiscal 
65.12 	years 2012 through 2015, contingent upon 
65.13 	approval by the federal Food and Nutrition 
65.14 	Service.
65.15 	(b) Consistent with the receipt of these 
65.16 	federal funds, the commissioner may 
65.17 	adjust the level of working family credit 
65.18 	expenditures claimed as TANF maintenance 
65.19 	of effort. Notwithstanding any contrary 
65.20 	provision in this article, this rider expires 
65.21 	June 30, 2015.
65.22 	ARRA Food Support Benefit Increases. 
65.23 	The funds provided for food support benefit 
65.24 	increases under the Supplemental Nutrition 
65.25 	Assistance Program provisions of the 
65.26 	American Recovery and Reinvestment Act 
65.27 	(ARRA) of 2009 must be used for benefit 
65.28 	increases beginning July 1, 2009.
65.29 	Supplemental Security Interim Assistance 
65.30 	Reimbursement Funds. $2,800,000 of 
65.31 	uncommitted revenue available to the 
65.32 	commissioner of human services for SSI 
65.33 	advocacy and outreach services must be 
65.34 	transferred to and deposited into the general 
65.35 	fund by October 1, 2011.

66.1 	Sec. 27. MINNESOTA VISIBLE CHILD WORK GROUP.
 66.2 		Subdivision 1.Purpose. The Minnesota visible child work group is established to 
66.3 	identify and recommend issues that should be addressed in a statewide, comprehensive 
66.4 	plan to improve the well-being of children who are homeless or have experienced 
66.5 	homelessness.
66.6 		Subd. 2.Membership. The members of the Minnesota visible child work group 
66.7 	include: (1) two members of the Minnesota house of representatives appointed by 
66.8 	the speaker of the house, one member from the majority party and one member from 
66.9 	the minority party; (2) two members of the Minnesota senate appointed by the senate 
66.10 	Subcommittee on Committees of the Committee on Rules and Administration, one 
66.11 	member from the majority party and one member from the minority party; (3) three 
66.12 	representatives from family shelter, transitional housing, and supportive housing providers 
66.13 	appointed by the governor; (4) two individuals appointed by the governor who have 
66.14 	experienced homelessness; (5) three housing and child advocates appointed by the 
66.15 	governor; (6) three representatives from the business or philanthropic community; and (7) 
66.16 	children's cabinet members, or their designees. Work group membership should include 
66.17 	people from rural, suburban, and urban areas of the state.
66.18 		Subd. 3.Duties. The work group shall: (1) recommend goals and objectives for a 
66.19 	comprehensive, statewide plan to improve the well-being of children who are homeless or 
66.20 	who have experienced homelessness; (2) recommend a definition of "child well-being"; 
66.21 	(3) identify evidence-based interventions and best practices improving the well-being 
66.22 	of young children; (4) plan implementation timelines and ways to measure progress, 
66.23 	including measures of child well-being from birth through adolescence; (5) identify ways 
66.24 	to address issues of collaboration and coordination across systems, including education, 
66.25 	health, human services, and housing; (6) recommend the type of data and information 
66.26 	necessary to develop, effectively implement, and monitor a strategic plan; (7) examine and 
66.27 	make recommendations regarding funding to implement an effective plan; and (8) provide 
66.28 	recommendations for ongoing reports on the well-being of children, monitoring progress 
66.29 	in implementing the statewide comprehensive plan, and any other issues determined to be 
66.30 	relevant to achieving the goals of this section.
66.31 		Subd. 4.Work group convening and facilitation. The work group must be 
66.32 	organized, scheduled, and facilitated by the staff of a nonprofit child advocacy, outreach, 
66.33 	research, and youth development organization focusing on a wide range of issues 
66.34 	affecting children who are vulnerable, and a nonprofit organization working to provide 
66.35 	safe, affordable, and sustainable homes for children and families in the seven-county 
66.36 	metropolitan area through partnerships with the public and private sector. These two 
67.1 	organizations will also be responsible for preparing and submitting the work group's 
67.2 	recommendations.
67.3 		Subd. 5.Report. The work group shall make recommendations under subdivision 
67.4 	3 to the legislative committees with jurisdiction over education, housing, health, and 
67.5 	human services policy and finance by December 15, 2012. The recommendations must 
67.6 	also be submitted to the children's cabinet to provide the foundation for a statewide 
67.7 	visible child plan.
67.8 		Subd. 6.Expiration. The Minnesota visible child work group expires on June 
67.9 	30, 2013.

67.10 	Sec. 28. UNIFORM ASSET LIMIT REQUIREMENTS.
 67.11 	The commissioner of human services, in consultation with county human 
67.12 	services representatives, shall analyze the differences in asset limit requirements across 
67.13 	human services assistance programs, including group residential housing, Minnesota 
67.14 	supplemental aid, general assistance, Minnesota family investment program, diversionary 
67.15 	work program, the federal Supplemental Nutrition Assistance Program, state food 
67.16 	assistance programs, and child care programs. The goal of the analysis is to establish a 
67.17 	consistent asset limit across human services programs and minimize the administrative 
67.18 	burdens on counties in implementing asset tests. The commissioner shall report its 
67.19 	findings and conclusions to the legislative committees with jurisdiction over health and 
67.20 	human services policy and finance by January 15, 2013, and include draft legislation 
67.21 	establishing a uniform asset limit for human services assistance programs.

67.22 	Sec. 29. DIRECTIONS TO THE COMMISSIONER.
 67.23 	The commissioner of human services, in consultation with the commissioner of 
67.24 	public safety, shall report to the chairs and ranking minority members of the legislative 
67.25 	committees with jurisdiction over health and human services policy and finance regarding 
67.26 	the implementation of Minnesota Statutes, section 256.01, subdivisions 18c, 18d, and 18e, 
67.27 	the number of persons affected, and fiscal impact by program by December 1, 2013.

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

67.29 	Sec. 30. REVISOR INSTRUCTION.
 67.30 	The revisor of statutes shall change the term "assistance transaction card" or 
67.31 	similar terms to "electronic benefit transaction" or similar terms wherever they appear in 
67.32 	Minnesota Statutes, chapter 256. The revisor may make changes necessary to correct the 
67.33 	punctuation, grammar, or structure of the remaining text and preserve its meaning.

68.1 	ARTICLE 4
68.2 	CONTINUING CARE

68.3 	Section 1. Minnesota Statutes 2010, section 62J.496, subdivision 2, is amended to read:
68.4 		Subd. 2.Eligibility. (a) "Eligible borrower" means one of the following:
68.5 	(1) federally qualified health centers;
68.6 	(2) community clinics, as defined under section 145.9268;
68.7 	(3) nonprofit or local unit of government hospitals licensed under sections 144.50 
68.8 	to 144.56;
68.9 	(4) individual or small group physician practices that are focused primarily on 
68.10 	primary care;
68.11 	(5) nursing facilities licensed under sections 144A.01 to 144A.27;
68.12 	(6) local public health departments as defined in chapter 145A; and
68.13 	(7) other providers of health or health care services approved by the commissioner 
68.14 	for which interoperable electronic health record capability would improve quality of 
68.15 	care, patient safety, or community health.
68.16 	(b) The commissioner shall administer the loan fund to prioritize support and 
68.17 	assistance to:
68.18 	(1) critical access hospitals;
68.19 	(2) federally qualified health centers;
68.20 	(3) entities that serve uninsured, underinsured, and medically underserved 
68.21 	individuals, regardless of whether such area is urban or rural; and
68.22 	(4) individual or small group practices that are primarily focused on primary care.;
68.23 	(5) nursing facilities certified to participate in the medical assistance program; and
68.24 	(6) providers enrolled in the elderly waiver program of customized living or 24-hour 
68.25 	customized living of the medical assistance program, if at least half of their annual 
68.26 	operating revenue is paid under the medical assistance program.
68.27 	(c) An eligible applicant must submit a loan application to the commissioner of 
68.28 	health on forms prescribed by the commissioner. The application must include, at a 
68.29 	minimum:
68.30 	(1) the amount of the loan requested and a description of the purpose or project 
68.31 	for which the loan proceeds will be used;
68.32 	(2) a quote from a vendor;
68.33 	(3) a description of the health care entities and other groups participating in the 
68.34 	project;
68.35 	(4) evidence of financial stability and a demonstrated ability to repay the loan; and
69.1 	(5) a description of how the system to be financed interoperates or plans in the 
69.2 	future to interoperate with other health care entities and provider groups located in the 
69.3 	same geographical area;
69.4 	(6) a plan on how the certified electronic health record technology will be maintained 
69.5 	and supported over time; and
69.6 	(7) any other requirements for applications included or developed pursuant to 
69.7 	section 3014 of the HITECH Act.

69.8 	Sec. 2. Minnesota Statutes 2010, section 144A.073, is amended by adding a 
69.9 	subdivision to read:
69.10 		Subd. 13.Moratorium exception funding. In fiscal year 2013, the commissioner 
69.11 	of health may approve moratorium exception projects under this section for which the full 
69.12 	annualized state share of medical assistance costs does not exceed $1,000,000.

69.13 	Sec. 3. Minnesota Statutes 2010, section 144A.351, is amended to read:
69.14 	144A.351 BALANCING LONG-TERM CARE SERVICES AND SUPPORTS: 
69.15 	REPORT REQUIRED.
69.16 	The commissioners of health and human services, with the cooperation of counties 
69.17 	and in consultation with stakeholders, including persons who need or are using long-term 
69.18 	care services and supports, lead agencies, regional entities, senior, disability, and mental 
69.19 	health organization representatives, service providers, and community members shall 
69.20 	prepare a report to the legislature by August 15, 2004 2013, and biennially thereafter, 
69.21 	regarding the status of the full range of long-term care services and supports for the 
69.22 	elderly and children and adults with disabilities and mental illnesses in Minnesota. The 
69.23 	report shall address:
69.24 	(1) demographics and need for long-term care services and supports in Minnesota;
69.25 	(2) summary of county and regional reports on long-term care gaps, surpluses, 
69.26 	imbalances, and corrective action plans;
69.27 	(3) status of long-term care services and mental illnesses, housing options, and 
69.28 	supports by county and region including:
69.29 	(i) changes in availability of the range of long-term care services and housing 
69.30 	options;
69.31 	(ii) access problems, including access to the least restrictive and most integrated 
69.32 	services and settings, regarding long-term care services; and
69.33 	(iii) comparative measures of long-term care services availability, including serving 
69.34 	people in their home areas near family, and progress changes over time; and
70.1 	(4) recommendations regarding goals for the future of long-term care services and 
70.2 	supports, policy and fiscal changes, and resource development and transition needs.

70.3 	Sec. 4. Minnesota Statutes 2010, section 144D.04, subdivision 2, is amended to read:
70.4 		Subd. 2.Contents of contract.  A housing with services contract, which need not be 
70.5 	entitled as such to comply with this section, shall include at least the following elements 
70.6 	in itself or through supporting documents or attachments:
70.7 	(1) the name, street address, and mailing address of the establishment;
70.8 	(2) the name and mailing address of the owner or owners of the establishment and, if 
70.9 	the owner or owners is not a natural person, identification of the type of business entity 
70.10 	of the owner or owners;
70.11 	(3) the name and mailing address of the managing agent, through management 
70.12 	agreement or lease agreement, of the establishment, if different from the owner or owners;
70.13 	(4) the name and address of at least one natural person who is authorized to accept 
70.14 	service of process on behalf of the owner or owners and managing agent;
70.15 	(5) a statement describing the registration and licensure status of the establishment 
70.16 	and any provider providing health-related or supportive services under an arrangement 
70.17 	with the establishment;
70.18 	(6) the term of the contract;
70.19 	(7) a description of the services to be provided to the resident in the base rate to be 
70.20 	paid by resident, including a delineation of the portion of the base rate that constitutes rent 
70.21 	and a delineation of charges for each service included in the base rate;
70.22 	(8) a description of any additional services, including home care services, available 
70.23 	for an additional fee from the establishment directly or through arrangements with the 
70.24 	establishment, and a schedule of fees charged for these services;
70.25 	(9) a description of the process through which the contract may be modified, 
70.26 	amended, or terminated, including whether a move to a different room or sharing a room 
70.27 	would be required in the event that the tenant can no longer pay the current rent;
70.28 	(10) a description of the establishment's complaint resolution process available 
70.29 	to residents including the toll-free complaint line for the Office of Ombudsman for 
70.30 	Long-Term Care;
70.31 	(11) the resident's designated representative, if any;
70.32 	(12) the establishment's referral procedures if the contract is terminated;
70.33 	(13) requirements of residency used by the establishment to determine who may 
70.34 	reside or continue to reside in the housing with services establishment;
70.35 	(14) billing and payment procedures and requirements;
71.1 	(15) a statement regarding the ability of residents to receive services from service 
71.2 	providers with whom the establishment does not have an arrangement;
71.3 	(16) a statement regarding the availability of public funds for payment for residence 
71.4 	or services in the establishment; and
71.5 	(17) a statement regarding the availability of and contact information for 
71.6 	long-term care consultation services under section 256B.0911 in the county in which the 
71.7 	establishment is located.

71.8 	Sec. 5. Minnesota Statutes 2010, section 245A.03, is amended by adding a subdivision 
71.9 	to read:
71.10 		Subd. 6a.Adult foster care homes serving people with mental illness; 
71.11 	certification. (a) The commissioner of human services shall issue a mental health 
71.12 	certification for adult foster care homes licensed under this chapter and Minnesota Rules, 
71.13 	parts 9555.5105 to 9555.6265, that serve people with mental illness where the home is not 
71.14 	the primary residence of the license holder when a provider is determined to have met 
71.15 	the requirements under paragraph (b). This certification is voluntary for license holders. 
71.16 	The certification shall be printed on the license, and identified on the commissioner's 
71.17 	public Web site.
71.18 	(b) The requirements for certification are:
71.19 	(1) all staff working in the adult foster care home have received at least seven hours 
71.20 	of annual training covering all of the following topics:
71.21 	(i) mental health diagnoses;
71.22 	(ii) mental health crisis response and de-escalation techniques;
71.23 	(iii) recovery from mental illness;
71.24 	(iv) treatment options including evidence-based practices;
71.25 	(v) medications and their side effects;
71.26 	(vi) co-occurring substance abuse and health conditions; and
71.27 	(vii) community resources;
71.28 	(2) a mental health professional, as defined in section 245.462, subdivision 18, or 
71.29 	a mental health practitioner as defined in section 245.462, subdivision 17, are available 
71.30 	for consultation and assistance;
71.31 	(3) there is a plan and protocol in place to address a mental health crisis; and
71.32 	(4) each individual's Individual Placement Agreement identifies who is providing 
71.33 	clinical services and their contact information, and includes an individual crisis prevention 
71.34 	and management plan developed with the individual.
72.1 	(c) License holders seeking certification under this subdivision must request this 
72.2 	certification on forms provided by the commissioner and must submit the request to the 
72.3 	county licensing agency in which the home is located. The county licensing agency must 
72.4 	forward the request to the commissioner with a county recommendation regarding whether 
72.5 	the commissioner should issue the certification.
72.6 	(d) Ongoing compliance with the certification requirements under paragraph (b) 
72.7 	shall be reviewed by the county licensing agency at each licensing review. When a county 
72.8 	licensing agency determines that the requirements of paragraph (b) are not met, the county 
72.9 	shall inform the commissioner, and the commissioner will remove the certification.
72.10 	(e) A denial of the certification or the removal of the certification based on a 
72.11 	determination that the requirements under paragraph (b) have not been met by the adult 
72.12 	foster care license holder are not subject to appeal. A license holder that has been denied a 
72.13 	certification or that has had a certification removed may again request certification when 
72.14 	the license holder is in compliance with the requirements of paragraph (b).

72.15 	Sec. 6. Minnesota Statutes 2011 Supplement, section 245A.03, subdivision 7, is 
72.16 	amended to read:
72.17 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an 
72.18 	initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 
72.19 	2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 
72.20 	9555.6265, under this chapter for a physical location that will not be the primary residence 
72.21 	of the license holder for the entire period of licensure. If a license is issued during this 
72.22 	moratorium, and the license holder changes the license holder's primary residence away 
72.23 	from the physical location of the foster care license, the commissioner shall revoke the 
72.24 	license according to section 245A.07. Exceptions to the moratorium include:
72.25 	(1) foster care settings that are required to be registered under chapter 144D;
72.26 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, 
72.27 	and determined to be needed by the commissioner under paragraph (b);
72.28 	(3) new foster care licenses determined to be needed by the commissioner under 
72.29 	paragraph (b) for the closure of a nursing facility, ICF/MR, or regional treatment center, or 
72.30 	restructuring of state-operated services that limits the capacity of state-operated facilities;
72.31 	(4) new foster care licenses determined to be needed by the commissioner under 
72.32 	paragraph (b) for persons requiring hospital level care; or
72.33 	(5) new foster care licenses determined to be needed by the commissioner for the 
72.34 	transition of people from personal care assistance to the home and community-based 
72.35 	services.
73.1 	(b) The commissioner shall determine the need for newly licensed foster care homes 
73.2 	as defined under this subdivision. As part of the determination, the commissioner shall 
73.3 	consider the availability of foster care capacity in the area in which the licensee seeks to 
73.4 	operate, and the recommendation of the local county board. The determination by the 
73.5 	commissioner must be final. A determination of need is not required for a change in 
73.6 	ownership at the same address.
73.7 	(c) Residential settings that would otherwise be subject to the moratorium established 
73.8 	in paragraph (a), that are in the process of receiving an adult or child foster care license as 
73.9 	of July 1, 2009, shall be allowed to continue to complete the process of receiving an adult 
73.10 	or child foster care license. For this paragraph, all of the following conditions must be met 
73.11 	to be considered in the process of receiving an adult or child foster care license:
73.12 	(1) participants have made decisions to move into the residential setting, including 
73.13 	documentation in each participant's care plan;
73.14 	(2) the provider has purchased housing or has made a financial investment in the 
73.15 	property;
73.16 	(3) the lead agency has approved the plans, including costs for the residential setting 
73.17 	for each individual;
73.18 	(4) the completion of the licensing process, including all necessary inspections, is 
73.19 	the only remaining component prior to being able to provide services; and
73.20 	(5) the needs of the individuals cannot be met within the existing capacity in that 
73.21 	county.
73.22 	To qualify for the process under this paragraph, the lead agency must submit 
73.23 	documentation to the commissioner by August 1, 2009, that all of the above criteria are 
73.24 	met.
73.25 	(d) The commissioner shall study the effects of the license moratorium under this 
73.26 	subdivision and shall report back to the legislature by January 15, 2011. This study shall 
73.27 	include, but is not limited to the following:
73.28 	(1) the overall capacity and utilization of foster care beds where the physical location 
73.29 	is not the primary residence of the license holder prior to and after implementation 
73.30 	of the moratorium;
73.31 	(2) the overall capacity and utilization of foster care beds where the physical 
73.32 	location is the primary residence of the license holder prior to and after implementation 
73.33 	of the moratorium; and
73.34 	(3) the number of licensed and occupied ICF/MR beds prior to and after 
73.35 	implementation of the moratorium.
74.1 	(e) When a foster care recipient moves out of a foster home that is not the primary 
74.2 	residence of the license holder according to section 256B.49, subdivision 15, paragraph 
74.3 	(f), the county shall immediately inform the Department of Human Services Licensing 
74.4 	Division, and. The department shall immediately decrease the statewide licensed 
74.5 	capacity for the home foster care settings where the physical location is not the primary 
74.6 	residence of the license holder, if the voluntary changes described in paragraph (g) are 
74.7 	not sufficient to meet the savings required by reductions in licensed bed capacity under 
74.8 	Laws 2011, First Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), 
74.9 	and maintain statewide long-term care residential services capacity within budgetary 
74.10 	limits. Implementation of the statewide licensed capacity reduction shall begin on July 1, 
74.11 	2013. The commissioner shall delicense up to 128 beds by June 30, 2014, using the needs 
74.12 	determination process. Under this paragraph, the commissioner has the authority to reduce 
74.13 	unused licensed capacity of a current foster care program to accomplish the consolidation 
74.14 	or closure of settings. A decreased licensed capacity according to this paragraph is not 
74.15 	subject to appeal under this chapter.
74.16 	(f) Residential settings that would otherwise be subject to the decreased license 
74.17 	capacity established in paragraph (e) shall be exempt under the following circumstances:
74.18 	(1) until August 1, 2013, the license holder's beds occupied by residents whose 
74.19 	primary diagnosis is mental illness and the license holder is:
74.20 	(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental 
74.21 	health services (ARMHS) as defined in section 256B.0623;
74.22 	(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to 
74.23 	9520.0870;
74.24 	(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to 
74.25 	9520.0870; or
74.26 	(iv) a provider of intensive residential treatment services (IRTS) licensed under 
74.27 	Minnesota Rules, parts 9520.0500 to 9520.0670; or
74.28 	(2) the license holder is certified under the requirements in subdivision 6a.
74.29 	(g) A resource need determination process, managed at the state level, using the 
74.30 	available reports required by section 144A.351, and other data and information shall 
74.31 	be used to determine where the reduced capacity required under paragraph (e) will be 
74.32 	implemented. The commissioner shall consult with the stakeholders described in section 
74.33 	144A.351, and employ a variety of methods to improve the state's capacity to meet 
74.34 	long-term care service needs within budgetary limits, including seeking proposals from 
74.35 	service providers or lead agencies to change service type, capacity, or location to improve 
74.36 	services, increase the independence of residents, and better meet needs identified by the 
75.1 	long-term care services reports and statewide data and information. By February 1 of each 
75.2 	year, the commissioner shall provide information and data on the overall capacity of 
75.3 	licensed long-term care services, actions taken under this subdivision to manage statewide 
75.4 	long-term care services and supports resources, and any recommendations for change to 
75.5 	the legislative committees with jurisdiction over health and human services budget.

75.6 	Sec. 7. Minnesota Statutes 2010, section 245A.11, subdivision 2a, is amended to read:
75.7 		Subd. 2a.Adult foster care license capacity. (a) The commissioner shall issue 
75.8 	adult foster care licenses with a maximum licensed capacity of four beds, including 
75.9 	nonstaff roomers and boarders, except that the commissioner may issue a license with a 
75.10 	capacity of five beds, including roomers and boarders, according to paragraphs (b) to (f).
75.11 	(b) An adult foster care license holder may have a maximum license capacity of five 
75.12 	if all persons in care are age 55 or over and do not have a serious and persistent mental 
75.13 	illness or a developmental disability.
75.14 	(c) The commissioner may grant variances to paragraph (b) to allow a foster care 
75.15 	provider with a licensed capacity of five persons to admit an individual under the age of 55 
75.16 	if the variance complies with section 245A.04, subdivision 9, and approval of the variance 
75.17 	is recommended by the county in which the licensed foster care provider is located.
75.18 	(d) The commissioner may grant variances to paragraph (b) to allow the use of a fifth 
75.19 	bed for emergency crisis services for a person with serious and persistent mental illness 
75.20 	or a developmental disability, regardless of age, if the variance complies with section 
75.21 	245A.04, subdivision 9, and approval of the variance is recommended by the county in 
75.22 	which the licensed foster care provider is located.
75.23 	(e) The commissioner may grant a variance to paragraph (b) to allow for the 
75.24 	use of a fifth bed for respite services, as defined in section 245A.02, for persons with 
75.25 	disabilities, regardless of age, if the variance complies with section 245A.03, subdivision 
75.26 	7, and section 245A.04, subdivision 9, and approval of the variance is recommended by 
75.27 	the county in which the licensed foster care provider is licensed. Respite care may be 
75.28 	provided under the following conditions:
75.29 	(1) staffing ratios cannot be reduced below the approved level for the individuals 
75.30 	being served in the home on a permanent basis;
75.31 	(2) no more than two different individuals can be accepted for respite services in 
75.32 	any calendar month and the total respite days may not exceed 120 days per program in 
75.33 	any calendar year;
76.1 	(3) the person receiving respite services must have his or her own bedroom, which 
76.2 	could be used for alternative purposes when not used as a respite bedroom, and cannot be 
76.3 	the room of another person who lives in the foster care home; and
76.4 	(4) individuals living in the foster care home must be notified when the variance 
76.5 	is approved. The provider must give 60 days' notice in writing to the residents and their 
76.6 	legal representatives prior to accepting the first respite placement. Notice must be given to 
76.7 	residents at least two days prior to service initiation, or as soon as the license holder is 
76.8 	able if they receive notice of the need for respite less than two days prior to initiation, 
76.9 	each time a respite client will be served, unless the requirement for this notice is waived 
76.10 	by the resident or legal guardian.
76.11 	(e) If the 2009 legislature adopts a rate reduction that impacts providers of adult 
76.12 	foster care services, (f) The commissioner may issue an adult foster care license with a 
76.13 	capacity of five adults if the fifth bed does not increase the overall statewide capacity of 
76.14 	licensed adult foster care beds in homes that are not the primary residence of the license 
76.15 	holder, over the licensed capacity in such homes on July 1, 2009, as identified in a plan 
76.16 	submitted to the commissioner by the county, when the capacity is recommended by 
76.17 	the county licensing agency of the county in which the facility is located and if the 
76.18 	recommendation verifies that:
76.19 	(1) the facility meets the physical environment requirements in the adult foster 
76.20 	care licensing rule;
76.21 	(2) the five-bed living arrangement is specified for each resident in the resident's:
76.22 	(i) individualized plan of care;
76.23 	(ii) individual service plan under section 256B.092, subdivision 1b, if required; or
76.24 	(iii) individual resident placement agreement under Minnesota Rules, part 
76.25 	9555.5105, subpart 19, if required;
76.26 	(3) the license holder obtains written and signed informed consent from each 
76.27 	resident or resident's legal representative documenting the resident's informed choice 
76.28 	to remain living in the home and that the resident's refusal to consent would not have 
76.29 	resulted in service termination; and
76.30 	(4) the facility was licensed for adult foster care before March 1, 2009 2011.
76.31 	(f) (g) The commissioner shall not issue a new adult foster care license under 
76.32 	paragraph (e) (f) after June 30, 2011 2016. The commissioner shall allow a facility with 
76.33 	an adult foster care license issued under paragraph (e) (f) before June 30, 2011 2016, to 
76.34 	continue with a capacity of five adults if the license holder continues to comply with the 
76.35 	requirements in paragraph (e) (f).

77.1 	Sec. 8. Minnesota Statutes 2010, section 245A.11, subdivision 7, is amended to read:
77.2 		Subd. 7.Adult foster care; variance for alternate overnight supervision. (a) The 
77.3 	commissioner may grant a variance under section 245A.04, subdivision 9, to rule parts 
77.4 	requiring a caregiver to be present in an adult foster care home during normal sleeping 
77.5 	hours to allow for alternative methods of overnight supervision. The commissioner may 
77.6 	grant the variance if the local county licensing agency recommends the variance and the 
77.7 	county recommendation includes documentation verifying that:
77.8 	(1) the county has approved the license holder's plan for alternative methods of 
77.9 	providing overnight supervision and determined the plan protects the residents' health, 
77.10 	safety, and rights;
77.11 	(2) the license holder has obtained written and signed informed consent from 
77.12 	each resident or each resident's legal representative documenting the resident's or legal 
77.13 	representative's agreement with the alternative method of overnight supervision; and
77.14 	(3) the alternative method of providing overnight supervision, which may include 
77.15 	the use of technology, is specified for each resident in the resident's: (i) individualized 
77.16 	plan of care; (ii) individual service plan under section 256B.092, subdivision 1b, if 
77.17 	required; or (iii) individual resident placement agreement under Minnesota Rules, part 
77.18 	9555.5105, subpart 19, if required.
77.19 	(b) To be eligible for a variance under paragraph (a), the adult foster care license 
77.20 	holder must not have had a licensing action conditional license issued under section 
77.21 	245A.06, or any other licensing sanction issued under section245A.07 during the prior 24 
77.22 	months based on failure to provide adequate supervision, health care services, or resident 
77.23 	safety in the adult foster care home.
77.24 	(c) A license holder requesting a variance under this subdivision to utilize 
77.25 	technology as a component of a plan for alternative overnight supervision may request 
77.26 	the commissioner's review in the absence of a county recommendation. Upon receipt of 
77.27 	such a request from a license holder, the commissioner shall review the variance request 
77.28 	with the county.

77.29 	Sec. 9. Minnesota Statutes 2010, section 245A.11, subdivision 7a, is amended to read:
77.30 		Subd. 7a.Alternate overnight supervision technology; adult foster care license.
 77.31 	(a) The commissioner may grant an applicant or license holder an adult foster care license 
77.32 	for a residence that does not have a caregiver in the residence during normal sleeping 
77.33 	hours as required under Minnesota Rules, part 9555.5105, subpart 37, item B, but uses 
77.34 	monitoring technology to alert the license holder when an incident occurs that may 
77.35 	jeopardize the health, safety, or rights of a foster care recipient. The applicant or license 
78.1 	holder must comply with all other requirements under Minnesota Rules, parts 9555.5105 
78.2 	to 9555.6265, and the requirements under this subdivision. The license printed by the 
78.3 	commissioner must state in bold and large font:
78.4 	(1) that the facility is under electronic monitoring; and
78.5 	(2) the telephone number of the county's common entry point for making reports of 
78.6 	suspected maltreatment of vulnerable adults under section 626.557, subdivision 9.
78.7 	(b) Applications for a license under this section must be submitted directly to 
78.8 	the Department of Human Services licensing division. The licensing division must 
78.9 	immediately notify the host county and lead county contract agency and the host county 
78.10 	licensing agency. The licensing division must collaborate with the county licensing 
78.11 	agency in the review of the application and the licensing of the program.
78.12 	(c) Before a license is issued by the commissioner, and for the duration of the 
78.13 	license, the applicant or license holder must establish, maintain, and document the 
78.14 	implementation of written policies and procedures addressing the requirements in 
78.15 	paragraphs (d) through (f).
78.16 	(d) The applicant or license holder must have policies and procedures that:
78.17 	(1) establish characteristics of target populations that will be admitted into the home, 
78.18 	and characteristics of populations that will not be accepted into the home;
78.19 	(2) explain the discharge process when a foster care recipient requires overnight 
78.20 	supervision or other services that cannot be provided by the license holder due to the 
78.21 	limited hours that the license holder is on site;
78.22 	(3) describe the types of events to which the program will respond with a physical 
78.23 	presence when those events occur in the home during time when staff are not on site, and 
78.24 	how the license holder's response plan meets the requirements in paragraph (e), clause 
78.25 	(1) or (2);
78.26 	(4) establish a process for documenting a review of the implementation and 
78.27 	effectiveness of the response protocol for the response required under paragraph (e), 
78.28 	clause (1) or (2). The documentation must include:
78.29 	(i) a description of the triggering incident;
78.30 	(ii) the date and time of the triggering incident;
78.31 	(iii) the time of the response or responses under paragraph (e), clause (1) or (2);
78.32 	(iv) whether the response met the resident's needs;
78.33 	(v) whether the existing policies and response protocols were followed; and
78.34 	(vi) whether the existing policies and protocols are adequate or need modification.
78.35 	When no physical presence response is completed for a three-month period, the 
78.36 	license holder's written policies and procedures must require a physical presence response 
79.1 	drill to be conducted for which the effectiveness of the response protocol under paragraph 
79.2 	(e), clause (1) or (2), will be reviewed and documented as required under this clause; and
79.3 	(5) establish that emergency and nonemergency phone numbers are posted in a 
79.4 	prominent location in a common area of the home where they can be easily observed by a 
79.5 	person responding to an incident who is not otherwise affiliated with the home.
79.6 	(e) The license holder must document and include in the license application which 
79.7 	response alternative under clause (1) or (2) is in place for responding to situations that 
79.8 	present a serious risk to the health, safety, or rights of people receiving foster care services 
79.9 	in the home:
79.10 	(1) response alternative (1) requires only the technology to provide an electronic 
79.11 	notification or alert to the license holder that an event is underway that requires a response. 
79.12 	Under this alternative, no more than ten minutes will pass before the license holder will be 
79.13 	physically present on site to respond to the situation; or
79.14 	(2) response alternative (2) requires the electronic notification and alert system 
79.15 	under alternative (1), but more than ten minutes may pass before the license holder is 
79.16 	present on site to respond to the situation. Under alternative (2), all of the following 
79.17 	conditions are met:
79.18 	(i) the license holder has a written description of the interactive technological 
79.19 	applications that will assist the license holder in communicating with and assessing the 
79.20 	needs related to the care, health, and safety of the foster care recipients. This interactive 
79.21 	technology must permit the license holder to remotely assess the well being of the foster 
79.22 	care recipient without requiring the initiation of the foster care recipient. Requiring the 
79.23 	foster care recipient to initiate a telephone call does not meet this requirement;
79.24 	(ii) the license holder documents how the remote license holder is qualified and 
79.25 	capable of meeting the needs of the foster care recipients and assessing foster care 
79.26 	recipients' needs under item (i) during the absence of the license holder on site;
79.27 	(iii) the license holder maintains written procedures to dispatch emergency response 
79.28 	personnel to the site in the event of an identified emergency; and
79.29 	(iv) each foster care recipient's individualized plan of care, individual service plan 
79.30 	under section 256B.092, subdivision 1b, if required, or individual resident placement 
79.31 	agreement under Minnesota Rules, part 9555.5105, subpart 19, if required, identifies the 
79.32 	maximum response time, which may be greater than ten minutes, for the license holder 
79.33 	to be on site for that foster care recipient.
79.34 	(f) All Each foster care recipient's placement agreements agreement, individual 
79.35 	service agreements, and plans applicable to the foster care recipientagreement, and plan 
79.36 	must clearly state that the adult foster care license category is a program without the 
80.1 	presence of a caregiver in the residence during normal sleeping hours; the protocols in 
80.2 	place for responding to situations that present a serious risk to the health, safety, or rights 
80.3 	of foster care recipients under paragraph (e), clause (1) or (2); and a signed informed 
80.4 	consent from each foster care recipient or the person's legal representative documenting 
80.5 	the person's or legal representative's agreement with placement in the program. If 
80.6 	electronic monitoring technology is used in the home, the informed consent form must 
80.7 	also explain the following:
80.8 	(1) how any electronic monitoring is incorporated into the alternative supervision 
80.9 	system;
80.10 	(2) the backup system for any electronic monitoring in times of electrical outages or 
80.11 	other equipment malfunctions;
80.12 	(3) how the license holder is caregivers are trained on the use of the technology;
80.13 	(4) the event types and license holder response times established under paragraph (e);
80.14 	(5) how the license holder protects the foster care recipient's privacy related to 
80.15 	electronic monitoring and related to any electronically recorded data generated by the 
80.16 	monitoring system. A foster care recipient may not be removed from a program under 
80.17 	this subdivision for failure to consent to electronic monitoring. The consent form must 
80.18 	explain where and how the electronically recorded data is stored, with whom it will be 
80.19 	shared, and how long it is retained; and
80.20 	(6) the risks and benefits of the alternative overnight supervision system.
80.21 	The written explanations under clauses (1) to (6) may be accomplished through 
80.22 	cross-references to other policies and procedures as long as they are explained to the 
80.23 	person giving consent, and the person giving consent is offered a copy.
80.24 	(g) Nothing in this section requires the applicant or license holder to develop or 
80.25 	maintain separate or duplicative policies, procedures, documentation, consent forms, or 
80.26 	individual plans that may be required for other licensing standards, if the requirements of 
80.27 	this section are incorporated into those documents.
80.28 	(h) The commissioner may grant variances to the requirements of this section 
80.29 	according to section 245A.04, subdivision 9.
80.30 	(i) For the purposes of paragraphs (d) through (h), "license holder" has the meaning 
80.31 	under section 245A.2, subdivision 9, and additionally includes all staff, volunteers, and 
80.32 	contractors affiliated with the license holder.
80.33 	(j) For the purposes of paragraph (e), the terms "assess" and "assessing" mean to 
80.34 	remotely determine what action the license holder needs to take to protect the well-being 
80.35 	of the foster care recipient.
81.1 	(k) The commissioner shall evaluate license applications using the requirements 
81.2 	in paragraphs (d) to (f). The commissioner shall provide detailed application forms, 
81.3 	including a checklist of criteria needed for approval.
81.4 	(l) To be eligible for a license under paragraph (a), the adult foster care license holder 
81.5 	must not have had a conditional license issued under section 245A.06 or any licensing 
81.6 	sanction under section 245A.07 during the prior 24 months based on failure to provide 
81.7 	adequate supervision, health care services, or resident safety in the adult foster care home.
81.8 	(m) The commissioner shall review an application for an alternative overnight 
81.9 	supervision license within 60 days of receipt of the application. When the commissioner 
81.10 	receives an application that is incomplete because the applicant failed to submit required 
81.11 	documents or that is substantially deficient because the documents submitted do not meet 
81.12 	licensing requirements, the commissioner shall provide the applicant written notice 
81.13 	that the application is incomplete or substantially deficient. In the written notice to the 
81.14 	applicant, the commissioner shall identify documents that are missing or deficient and 
81.15 	give the applicant 45 days to resubmit a second application that is substantially complete. 
81.16 	An applicant's failure to submit a substantially complete application after receiving 
81.17 	notice from the commissioner is a basis for license denial under section 245A.05. The 
81.18 	commissioner shall complete subsequent review within 30 days.
81.19 	(n) Once the application is considered complete under paragraph (m), the 
81.20 	commissioner will approve or deny an application for an alternative overnight supervision 
81.21 	license within 60 days.
81.22 	(o) For the purposes of this subdivision, "supervision" means:
81.23 	(1) oversight by a caregiver as specified in the individual resident's place agreement 
81.24 	and awareness of the resident's needs and activities; and
81.25 	(2) the presence of a caregiver in a residence during normal sleeping hours, unless a 
81.26 	determination has been made and documented in the individual's support plan that the 
81.27 	individual does not require the presence of a caregiver during normal sleeping hours.

81.28 	Sec. 10. Minnesota Statutes 2010, section 245B.07, subdivision 1, is amended to read:
81.29 		Subdivision 1.Consumer data file. The license holder must maintain the following 
81.30 	information for each consumer:
81.31 	(1) identifying information that includes date of birth, medications, legal 
81.32 	representative, history, medical, and other individual-specific information, and names and 
81.33 	telephone numbers of contacts;
81.34 	(2) consumer health information, including individual medication administration 
81.35 	and monitoring information;
82.1 	(3) the consumer's individual service plan. When a consumer's case manager does 
82.2 	not provide a current individual service plan, the license holder shall make a written 
82.3 	request to the case manager to provide a copy of the individual service plan and inform 
82.4 	the consumer or the consumer's legal representative of the right to an individual service 
82.5 	plan and the right to appeal under section 256.045. In the event the case manager fails 
82.6 	to provide an individual service plan after a written request from the license holder, the 
82.7 	license holder shall not be sanctioned or penalized financially for not having a current 
82.8 	individual service plan in the consumer's data file;
82.9 	(4) copies of assessments, analyses, summaries, and recommendations;
82.10 	(5) progress review reports;
82.11 	(6) incidents involving the consumer;
82.12 	(7) reports required under section 245B.05, subdivision 7;
82.13 	(8) discharge summary, when applicable;
82.14 	(9) record of other license holders serving the consumer that includes a contact 
82.15 	person and telephone numbers, services being provided, services that require coordination 
82.16 	between two license holders, and name of staff responsible for coordination;
82.17 	(10) information about verbal aggression directed at the consumer by another 
82.18 	consumer; and
82.19 	(11) information about self-abuse.

82.20 	Sec. 11. Minnesota Statutes 2010, section 245C.04, subdivision 6, is amended to read:
82.21 		Subd. 6.Unlicensed home and community-based waiver providers of service to 
82.22 	seniors and individuals with disabilities. (a) Providers required to initiate background 
82.23 	studies under section 256B.4912 must initiate a study before the individual begins in a 
82.24 	position allowing direct contact with persons served by the provider.
82.25 	(b) The commissioner shall conduct Except as provided in paragraph (c), the 
82.26 	providers must initiate a background study annually of an individual required to be studied 
82.27 	under section 245C.03, subdivision 6.
82.28 	(c) After an initial background study under this subdivision is initiated on an 
82.29 	individual by a provider of both services licensed by the commissioner and the unlicensed 
82.30 	services under this subdivision, a repeat annual background study is not required if:
82.31 	(1) the provider maintains compliance with the requirements of section 245C.07, 
82.32 	paragraph (a), regarding one individual with one address and telephone number as the 
82.33 	person to receive sensitive background study information for the multiple programs that 
82.34 	depend on the same background study, and that the individual who is designated to receive 
82.35 	the sensitive background information is capable of determining, upon the request of the 
83.1 	commissioner, whether a background study subject is providing direct contact services 
83.2 	in one or more of the provider's programs or services and, if so, at which location or 
83.3 	locations; and
83.4 	(2) the individual who is the subject of the background study provides direct 
83.5 	contact services under the provider's licensed program for at least 40 hours per year so 
83.6 	the individual will be recognized by a probation officer or corrections agent to prompt 
83.7 	a report to the commissioner regarding criminal convictions as required under section 
83.8 	245C.05, subdivision 7.

83.9 	Sec. 12. Minnesota Statutes 2010, section 245C.05, subdivision 7, is amended to read:
83.10 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
83.11 	corrections agent shall notify the commissioner of an individual's conviction if the 
83.12 	individual is:
83.13 	(1) has been affiliated with a program or facility regulated by the Department of 
83.14 	Human Services or Department of Health, a facility serving children or youth licensed by 
83.15 	the Department of Corrections, or any type of home care agency or provider of personal 
83.16 	care assistance services within the preceding year; and
83.17 	(2) has been convicted of a crime constituting a disqualification under section 
83.18 	245C.14.
83.19 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
83.20 	in section 609.02, subdivision 5.
83.21 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
83.22 	develop forms and information necessary to implement this subdivision and shall provide 
83.23 	the forms and information to the commissioner of corrections for distribution to local 
83.24 	probation officers and corrections agents.
83.25 	(d) The commissioner shall inform individuals subject to a background study that 
83.26 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
83.27 	corrections system.
83.28 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
83.29 	criminally liable for disclosing or failing to disclose the information required by this 
83.30 	subdivision.
83.31 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
83.32 	notice required under section 245C.17, as appropriate, to agencies on record as having 
83.33 	initiated a background study or making a request for documentation of the background 
83.34 	study status of the individual.
83.35 	(g) This subdivision does not apply to family child care programs.

84.1 	Sec. 13. Minnesota Statutes 2010, section 252.27, subdivision 2a, is amended to read:
84.2 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
84.3 	child, including a child determined eligible for medical assistance without consideration of 
84.4 	parental income, must contribute to the cost of services used by making monthly payments 
84.5 	on a sliding scale based on income, unless the child is married or has been married, 
84.6 	parental rights have been terminated, or the child's adoption is subsidized according to 
84.7 	section 259.67 or through title IV-E of the Social Security Act. The parental contribution 
84.8 	is a partial or full payment for medical services provided for diagnostic, therapeutic, 
84.9 	curing, treating, mitigating, rehabilitation, maintenance, and personal care services as 
84.10 	defined in United States Code, title 26, section 213, needed by the child with a chronic 
84.11 	illness or disability.
84.12 	(b) For households with adjusted gross income equal to or greater than 100 percent 
84.13 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
84.14 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
84.15 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
84.16 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
84.17 	contribution is $4 per month;
84.18 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
84.19 	poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, 
84.20 	the parental contribution shall be determined using a sliding fee scale established by the 
84.21 	commissioner of human services which begins at one percent of adjusted gross income 
84.22 	at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted 
84.23 	gross income for those with adjusted gross income up to 545 percent of federal poverty 
84.24 	guidelines;
84.25 	(3) if the adjusted gross income is greater than 545 percent of federal poverty 
84.26 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
84.27 	contribution shall be 7.5 percent of adjusted gross income;
84.28 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
84.29 	poverty guidelines and less than 975 percent of federal poverty guidelines, the parental 
84.30 	contribution shall be determined using a sliding fee scale established by the commissioner 
84.31 	of human services which begins at 7.5 percent of adjusted gross income at 675 percent of 
84.32 	federal poverty guidelines and increases to ten percent of adjusted gross income for those 
84.33 	with adjusted gross income up to 975 percent of federal poverty guidelines; and
84.34 	(5) if the adjusted gross income is equal to or greater than 975 percent of federal 
84.35 	poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross 
84.36 	income.
85.1 	If the child lives with the parent, the annual adjusted gross income is reduced by 
85.2 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
85.3 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
85.4 	specified under that section in addition to the parental contribution determined under this 
85.5 	section. The parental contribution is reduced by any amount required to be paid directly to 
85.6 	the child pursuant to a court order, but only if actually paid.
85.7 	(c) The household size to be used in determining the amount of contribution under 
85.8 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
85.9 	child receiving services. Adjustments in the contribution amount due to annual changes 
85.10 	in the federal poverty guidelines shall be implemented on the first day of July following 
85.11 	publication of the changes.
85.12 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
85.13 	natural or adoptive parents determined according to the previous year's federal tax form, 
85.14 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
85.15 	have been used to purchase a home shall not be counted as income.
85.16 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
85.17 	for services is being determined. The contribution shall be made on a monthly basis 
85.18 	effective with the first month in which the child receives services. Annually upon 
85.19 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
85.20 	services provided, the local agency or the state shall reimburse that excess amount to 
85.21 	the parents, either by direct reimbursement if the parent is no longer required to pay a 
85.22 	contribution, or by a reduction in or waiver of parental fees until the excess amount is 
85.23 	exhausted. All reimbursements must include a notice that the amount reimbursed may be 
85.24 	taxable income if the parent paid for the parent's fees through an employer's health care 
85.25 	flexible spending account under the Internal Revenue Code, section 125, and that the 
85.26 	parent is responsible for paying the taxes owed on the amount reimbursed.
85.27 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
85.28 	when there is a change in household size; and when there is a loss of or gain in income 
85.29 	from one month to another in excess of ten percent. The local agency shall mail a written 
85.30 	notice 30 days in advance of the effective date of a change in the contribution amount. 
85.31 	A decrease in the contribution amount is effective in the month that the parent verifies a 
85.32 	reduction in income or change in household size.
85.33 	(g) Parents of a minor child who do not live with each other shall each pay the 
85.34 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
85.35 	child support payment actually paid on behalf of the child receiving services shall be 
86.1 	deducted from the adjusted gross income of the parent making the payment prior to 
86.2 	calculating the parental contribution under paragraph (b).
86.3 	(h) The contribution under paragraph (b) shall be increased by an additional five 
86.4 	percent if the local agency determines that insurance coverage is available but not 
86.5 	obtained for the child. For purposes of this section, "available" means the insurance is a 
86.6 	benefit of employment for a family member at an annual cost of no more than five percent 
86.7 	of the family's annual income. For purposes of this section, "insurance" means health 
86.8 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
86.9 	maintenance organization, self-insured plan, or preferred provider organization.
86.10 	Parents who have more than one child receiving services shall not be required 
86.11 	to pay more than the amount for the child with the highest expenditures. There shall 
86.12 	be no resource contribution from the parents. The parent shall not be required to pay 
86.13 	a contribution in excess of the cost of the services provided to the child, not counting 
86.14 	payments made to school districts for education-related services. Notice of an increase in 
86.15 	fee payment must be given at least 30 days before the increased fee is due.
86.16 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
86.17 	in the 12 months prior to July 1:
86.18 	(1) the parent applied for insurance for the child;
86.19 	(2) the insurer denied insurance;
86.20 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
86.21 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
86.22 	commerce, or litigated the complaint or appeal; and
86.23 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
86.24 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
86.25 	A parent who has requested a reduction in the contribution amount under this 
86.26 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
86.27 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
86.28 	letter or complaint of the parents, court documents, and the written response of the insurer 
86.29 	approving insurance. The determinations of the commissioner or county agency under this 
86.30 	paragraph are not rules subject to chapter 14.
86.31 	(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 2013
86.32 	2015, the parental contribution shall be computed by applying the following contribution 
86.33 	schedule to the adjusted gross income of the natural or adoptive parents:
86.34 	(1) if the adjusted gross income is equal to or greater than 100 percent of federal 
86.35 	poverty guidelines and less than 175 percent of federal poverty guidelines, the parental 
86.36 	contribution is $4 per month;
87.1 	(2) if the adjusted gross income is equal to or greater than 175 percent of federal 
87.2 	poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, 
87.3 	the parental contribution shall be determined using a sliding fee scale established by the 
87.4 	commissioner of human services which begins at one percent of adjusted gross income 
87.5 	at 175 percent of federal poverty guidelines and increases to eight percent of adjusted 
87.6 	gross income for those with adjusted gross income up to 525 percent of federal poverty 
87.7 	guidelines;
87.8 	(3) if the adjusted gross income is greater than 525 percent of federal poverty 
87.9 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
87.10 	contribution shall be 9.5 percent of adjusted gross income;
87.11 	(4) if the adjusted gross income is equal to or greater than 675 percent of federal 
87.12 	poverty guidelines and less than 900 percent of federal poverty guidelines, the parental 
87.13 	contribution shall be determined using a sliding fee scale established by the commissioner 
87.14 	of human services which begins at 9.5 percent of adjusted gross income at 675 percent of 
87.15 	federal poverty guidelines and increases to 12 percent of adjusted gross income for those 
87.16 	with adjusted gross income up to 900 percent of federal poverty guidelines; and
87.17 	(5) if the adjusted gross income is equal to or greater than 900 percent of federal 
87.18 	poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross 
87.19 	income. If the child lives with the parent, the annual adjusted gross income is reduced by 
87.20 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
87.21 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
87.22 	specified under that section in addition to the parental contribution determined under this 
87.23 	section. The parental contribution is reduced by any amount required to be paid directly to 
87.24 	the child pursuant to a court order, but only if actually paid.

87.25 	Sec. 14. Minnesota Statutes 2010, section 256.975, subdivision 7, is amended to read:
87.26 		Subd. 7.Consumer information and assistance and long-term care options 
87.27 	counseling; Senior LinkAge Line. (a) The Minnesota Board on Aging shall operate a 
87.28 	statewide service to aid older Minnesotans and their families in making informed choices 
87.29 	about long-term care options and health care benefits. Language services to persons with 
87.30 	limited English language skills may be made available. The service, known as Senior 
87.31 	LinkAge Line, must be available during business hours through a statewide toll-free 
87.32 	number and must also be available through the Internet.
87.33 	(b) The service must provide long-term care options counseling by assisting older 
87.34 	adults, caregivers, and providers in accessing information and options counseling about 
88.1 	choices in long-term care services that are purchased through private providers or available 
88.2 	through public options. The service must:
88.3 	(1) develop a comprehensive database that includes detailed listings in both 
88.4 	consumer- and provider-oriented formats;
88.5 	(2) make the database accessible on the Internet and through other telecommunication 
88.6 	and media-related tools;
88.7 	(3) link callers to interactive long-term care screening tools and make these tools 
88.8 	available through the Internet by integrating the tools with the database;
88.9 	(4) develop community education materials with a focus on planning for long-term 
88.10 	care and evaluating independent living, housing, and service options;
88.11 	(5) conduct an outreach campaign to assist older adults and their caregivers in 
88.12 	finding information on the Internet and through other means of communication;
88.13 	(6) implement a messaging system for overflow callers and respond to these callers 
88.14 	by the next business day;
88.15 	(7) link callers with county human services and other providers to receive more 
88.16 	in-depth assistance and consultation related to long-term care options;
88.17 	(8) link callers with quality profiles for nursing facilities and other providers 
88.18 	developed by the commissioner of health;
88.19 	(9) incorporate information about the availability of housing options, as well as 
88.20 	registered housing with services and consumer rights within the MinnesotaHelp.info 
88.21 	network long-term care database to facilitate consumer comparison of services and costs 
88.22 	among housing with services establishments and with other in-home services and to 
88.23 	support financial self-sufficiency as long as possible. Housing with services establishments 
88.24 	and their arranged home care providers shall provide information that will facilitate price 
88.25 	comparisons, including delineation of charges for rent and for services available. The 
88.26 	commissioners of health and human services shall align the data elements required by 
88.27 	section 144G.06, the Uniform Consumer Information Guide, and this section to provide 
88.28 	consumers standardized information and ease of comparison of long-term care options. 
88.29 	The commissioner of human services shall provide the data to the Minnesota Board on 
88.30 	Aging for inclusion in the MinnesotaHelp.info network long-term care database;
88.31 	(10) provide long-term care options counseling. Long-term care options counselors 
88.32 	shall:
88.33 	(i) for individuals not eligible for case management under a public program or public 
88.34 	funding source, provide interactive decision support under which consumers, family 
88.35 	members, or other helpers are supported in their deliberations to determine appropriate 
89.1 	long-term care choices in the context of the consumer's needs, preferences, values, and 
89.2 	individual circumstances, including implementing a community support plan;
89.3 	(ii) provide Web-based educational information and collateral written materials to 
89.4 	familiarize consumers, family members, or other helpers with the long-term care basics, 
89.5 	issues to be considered, and the range of options available in the community;
89.6 	(iii) provide long-term care futures planning, which means providing assistance to 
89.7 	individuals who anticipate having long-term care needs to develop a plan for the more 
89.8 	distant future; and
89.9 	(iv) provide expertise in benefits and financing options for long-term care, including 
89.10 	Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages, 
89.11 	private pay options, and ways to access low or no-cost services or benefits through 
89.12 	volunteer-based or charitable programs; and
89.13 	(11) using risk management and support planning protocols, provide long-term care 
89.14 	options counseling to current residents of nursing homes deemed appropriate for discharge 
89.15 	by the commissioner. In order to meet this requirement, the commissioner shall provide 
89.16 	designated Senior LinkAge Line contact centers with a list of nursing home residents 
89.17 	appropriate for discharge planning via a secure Web portal. Senior LinkAge Line shall 
89.18 	provide these residents, if they indicate a preference to receive long-term care options 
89.19 	counseling, with initial assessment, review of risk factors, independent living support 
89.20 	consultation, or referral to:
89.21 	(i) long-term care consultation services under section 256B.0911;
89.22 	(ii) designated care coordinators of contracted entities under section 256B.035 for 
89.23 	persons who are enrolled in a managed care plan; or
89.24 	(iii) the long-term care consultation team for those who are appropriate for relocation 
89.25 	service coordination due to high-risk factors or psychological or physical disability.; and
89.26 	(12) develop referral protocols and processes that will assist certified health care 
89.27 	homes and hospitals to identify at-risk older adults and determine when to refer these 
89.28 	individuals to the Senior LinkAge Line for long-term care options counseling under this 
89.29 	section. The commissioner is directed to work with the commissioner of health to develop 
89.30 	protocols that would comply with the health care home designation criteria and protocols 
89.31 	available at the time of hospital discharge. The commissioner shall keep a record of the 
89.32 	number of people who choose long-term care options counseling as a result of this section.

89.33 	Sec. 15. Minnesota Statutes 2010, section 256B.056, subdivision 1a, is amended to 
89.34 	read:
90.1 		Subd. 1a.Income and assets generally. Unless specifically required by state 
90.2 	law or rule or federal law or regulation, the methodologies used in counting income 
90.3 	and assets to determine eligibility for medical assistance for persons whose eligibility 
90.4 	category is based on blindness, disability, or age of 65 or more years, the methodologies 
90.5 	for the supplemental security income program shall be used, except as provided under 
90.6 	subdivision 3, paragraph (a), clause (6). Increases in benefits under title II of the Social 
90.7 	Security Act shall not be counted as income for purposes of this subdivision until July 1 of 
90.8 	each year. Effective upon federal approval, for children eligible under section 256B.055, 
90.9 	subdivision 12, or for home and community-based waiver services whose eligibility 
90.10 	for medical assistance is determined without regard to parental income, child support 
90.11 	payments, including any payments made by an obligor in satisfaction of or in addition 
90.12 	to a temporary or permanent order for child support, and Social Security payments are 
90.13 	not counted as income. For families and children, which includes all other eligibility 
90.14 	categories, the methodologies under the state's AFDC plan in effect as of July 16, 1996, as 
90.15 	required by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
90.16 	(PRWORA), Public Law 104-193, shall be used, except that effective October 1, 2003, the 
90.17 	earned income disregards and deductions are limited to those in subdivision 1c. For these 
90.18 	purposes, a "methodology" does not include an asset or income standard, or accounting 
90.19 	method, or method of determining effective dates.

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

90.21 	Sec. 16. Minnesota Statutes 2011 Supplement, section 256B.056, subdivision 3, 
90.22 	is amended to read:
90.23 		Subd. 3.Asset limitations for individuals and families. (a) To be eligible for 
90.24 	medical assistance, a person must not individually own more than $3,000 in assets, or if a 
90.25 	member of a household with two family members, husband and wife, or parent and child, 
90.26 	the household must not own more than $6,000 in assets, plus $200 for each additional 
90.27 	legal dependent. In addition to these maximum amounts, an eligible individual or family 
90.28 	may accrue interest on these amounts, but they must be reduced to the maximum at the 
90.29 	time of an eligibility redetermination. The accumulation of the clothing and personal 
90.30 	needs allowance according to section 256B.35 must also be reduced to the maximum at 
90.31 	the time of the eligibility redetermination. The value of assets that are not considered in 
90.32 	determining eligibility for medical assistance is the value of those assets excluded under 
90.33 	the supplemental security income program for aged, blind, and disabled persons, with 
90.34 	the following exceptions:
90.35 	(1) household goods and personal effects are not considered;
91.1 	(2) capital and operating assets of a trade or business that the local agency determines 
91.2 	are necessary to the person's ability to earn an income are not considered;
91.3 	(3) motor vehicles are excluded to the same extent excluded by the supplemental 
91.4 	security income program;
91.5 	(4) assets designated as burial expenses are excluded to the same extent excluded by 
91.6 	the supplemental security income program. Burial expenses funded by annuity contracts 
91.7 	or life insurance policies must irrevocably designate the individual's estate as contingent 
91.8 	beneficiary to the extent proceeds are not used for payment of selected burial expenses; and
91.9 	(5) for a person who no longer qualifies as an employed person with a disability due 
91.10 	to loss of earnings, assets allowed while eligible for medical assistance under section 
91.11 	256B.057, subdivision 9, are not considered for 12 months, beginning with the first month 
91.12 	of ineligibility as an employed person with a disability, to the extent that the person's total 
91.13 	assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph 
91.14 	(d).; and
91.15 	(6) when a person enrolled in medical assistance under section 256B.057, subdivision 
91.16 	9, is age 65 or older and has been enrolled during each of the 24 consecutive months 
91.17 	before the person's 65th birthday, the assets owned by the person and the person's spouse 
91.18 	must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph (d), 
91.19 	when determining eligibility for medical assistance under section 256B.055, subdivision 
91.20 	7. The income of a spouse of a person enrolled in medical assistance under section 
91.21 	256B.057, subdivision 9, during each of the 24 consecutive months before the person's 
91.22 	65th birthday must be disregarded when determining eligibility for medical assistance 
91.23 	under section 256B.055, subdivision 7. Persons eligible under this clause are not subject to 
91.24 	the provisions in section 256B.059. A person whose 65th birthday occurs in 2012 or 2013 
91.25 	is required to have qualified for medical assistance under section 256B.057, subdivision 9, 
91.26 	prior to age 65 for at least 20 months in the 24 months prior to reaching age 65.
91.27 	(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 
91.28 	15.

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

91.30 	Sec. 17. Minnesota Statutes 2011 Supplement, section 256B.057, subdivision 9, 
91.31 	is amended to read:
91.32 		Subd. 9.Employed persons with disabilities. (a) Medical assistance may be paid 
91.33 	for a person who is employed and who:
91.34 	(1) but for excess earnings or assets, meets the definition of disabled under the 
91.35 	Supplemental Security Income program;
92.1 	(2) is at least 16 but less than 65 years of age;
92.2 	(3) meets the asset limits in paragraph (d); and
92.3 	(4) (3) pays a premium and other obligations under paragraph (e).
92.4 	(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible 
92.5 	for medical assistance under this subdivision, a person must have more than $65 of earned 
92.6 	income. Earned income must have Medicare, Social Security, and applicable state and 
92.7 	federal taxes withheld. The person must document earned income tax withholding. Any 
92.8 	spousal income or assets shall be disregarded for purposes of eligibility and premium 
92.9 	determinations.
92.10 	(c) After the month of enrollment, a person enrolled in medical assistance under 
92.11 	this subdivision who:
92.12 	(1) is temporarily unable to work and without receipt of earned income due to a 
92.13 	medical condition, as verified by a physician; or
92.14 	(2) loses employment for reasons not attributable to the enrollee, and is without 
92.15 	receipt of earned income may retain eligibility for up to four consecutive months after the 
92.16 	month of job loss. To receive a four-month extension, enrollees must verify the medical 
92.17 	condition or provide notification of job loss. All other eligibility requirements must be met 
92.18 	and the enrollee must pay all calculated premium costs for continued eligibility.
92.19 	(d) For purposes of determining eligibility under this subdivision, a person's assets 
92.20 	must not exceed $20,000, excluding:
92.21 	(1) all assets excluded under section 256B.056;
92.22 	(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, 
92.23 	Keogh plans, and pension plans;
92.24 	(3) medical expense accounts set up through the person's employer; and
92.25 	(4) spousal assets, including spouse's share of jointly held assets.
92.26 	(e) All enrollees must pay a premium to be eligible for medical assistance under this 
92.27 	subdivision, except as provided under section 256.01, subdivision 18b.
92.28 	(1) An enrollee must pay the greater of a $65 premium or the premium calculated 
92.29 	based on the person's gross earned and unearned income and the applicable family size 
92.30 	using a sliding fee scale established by the commissioner, which begins at one percent of 
92.31 	income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of 
92.32 	income for those with incomes at or above 300 percent of the federal poverty guidelines.
92.33 	(2) Annual adjustments in the premium schedule based upon changes in the federal 
92.34 	poverty guidelines shall be effective for premiums due in July of each year.
93.1 	(3) All enrollees who receive unearned income must pay five percent of unearned 
93.2 	income in addition to the premium amount, except as provided under section 256.01, 
93.3 	subdivision 18b.
93.4 	(4) Increases in benefits under title II of the Social Security Act shall not be counted 
93.5 	as income for purposes of this subdivision until July 1 of each year.
93.6 	(f) A person's eligibility and premium shall be determined by the local county 
93.7 	agency. Premiums must be paid to the commissioner. All premiums are dedicated to 
93.8 	the commissioner.
93.9 	(g) Any required premium shall be determined at application and redetermined at 
93.10 	the enrollee's six-month income review or when a change in income or household size is 
93.11 	reported. Enrollees must report any change in income or household size within ten days 
93.12 	of when the change occurs. A decreased premium resulting from a reported change in 
93.13 	income or household size shall be effective the first day of the next available billing month 
93.14 	after the change is reported. Except for changes occurring from annual cost-of-living 
93.15 	increases, a change resulting in an increased premium shall not affect the premium amount 
93.16 	until the next six-month review.
93.17 	(h) Premium payment is due upon notification from the commissioner of the 
93.18 	premium amount required. Premiums may be paid in installments at the discretion of 
93.19 	the commissioner.
93.20 	(i) Nonpayment of the premium shall result in denial or termination of medical 
93.21 	assistance unless the person demonstrates good cause for nonpayment. Good cause exists 
93.22 	if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to 
93.23 	D, are met. Except when an installment agreement is accepted by the commissioner, 
93.24 	all persons disenrolled for nonpayment of a premium must pay any past due premiums 
93.25 	as well as current premiums due prior to being reenrolled. Nonpayment shall include 
93.26 	payment with a returned, refused, or dishonored instrument. The commissioner may 
93.27 	require a guaranteed form of payment as the only means to replace a returned, refused, 
93.28 	or dishonored instrument.
93.29 	(j) The commissioner shall notify enrollees annually beginning at least 24 months 
93.30 	before the person's 65th birthday of the medical assistance eligibility rules affecting 
93.31 	income, assets, and treatment of a spouse's income and assets that will be applied upon 
93.32 	reaching age 65.
93.33 	(k) For enrollees whose income does not exceed 200 percent of the federal poverty 
93.34 	guidelines and who are also enrolled in Medicare, the commissioner shall reimburse 
93.35 	the enrollee for Medicare part B premiums under section 256B.0625, subdivision 15, 
93.36 	paragraph (a).

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

94.2 	Sec. 18. Minnesota Statutes 2011 Supplement, section 256B.0659, subdivision 11, 
94.3 	is amended to read:
94.4 		Subd. 11.Personal care assistant; requirements. (a) A personal care assistant 
94.5 	must meet the following requirements:
94.6 	(1) be at least 18 years of age with the exception of persons who are 16 or 17 years 
94.7 	of age with these additional requirements:
94.8 	(i) supervision by a qualified professional every 60 days; and
94.9 	(ii) employment by only one personal care assistance provider agency responsible 
94.10 	for compliance with current labor laws;
94.11 	(2) be employed by a personal care assistance provider agency;
94.12 	(3) enroll with the department as a personal care assistant after clearing a background 
94.13 	study. Except as provided in subdivision 11a, before a personal care assistant provides 
94.14 	services, the personal care assistance provider agency must initiate a background study on 
94.15 	the personal care assistant under chapter 245C, and the personal care assistance provider 
94.16 	agency must have received a notice from the commissioner that the personal care assistant 
94.17 	is:
94.18 	(i) not disqualified under section 245C.14; or
94.19 	(ii) is disqualified, but the personal care assistant has received a set aside of the 
94.20 	disqualification under section 245C.22;
94.21 	(4) be able to effectively communicate with the recipient and personal care 
94.22 	assistance provider agency;
94.23 	(5) be able to provide covered personal care assistance services according to the 
94.24 	recipient's personal care assistance care plan, respond appropriately to recipient needs, 
94.25 	and report changes in the recipient's condition to the supervising qualified professional 
94.26 	or physician;
94.27 	(6) not be a consumer of personal care assistance services;
94.28 	(7) maintain daily written records including, but not limited to, time sheets under 
94.29 	subdivision 12;
94.30 	(8) effective January 1, 2010, complete standardized training as determined 
94.31 	by the commissioner before completing enrollment. The training must be available 
94.32 	in languages other than English and to those who need accommodations due to 
94.33 	disabilities. Personal care assistant training must include successful completion of the 
94.34 	following training components: basic first aid, vulnerable adult, child maltreatment, 
94.35 	OSHA universal precautions, basic roles and responsibilities of personal care assistants 
95.1 	including information about assistance with lifting and transfers for recipients, emergency 
95.2 	preparedness, orientation to positive behavioral practices, fraud issues, and completion of 
95.3 	time sheets. Upon completion of the training components, the personal care assistant must 
95.4 	demonstrate the competency to provide assistance to recipients;
95.5 	(9) complete training and orientation on the needs of the recipient within the first 
95.6 	seven days after the services begin; and
95.7 	(10) be limited to providing and being paid for up to 275 hours per month, except 
95.8 	that this limit shall be 275 hours per month for the period July 1, 2009, through June 30, 
95.9 	2011, of personal care assistance services regardless of the number of recipients being 
95.10 	served or the number of personal care assistance provider agencies enrolled with. The 
95.11 	number of hours worked per day shall not be disallowed by the department unless in 
95.12 	violation of the law.
95.13 	(b) A legal guardian may be a personal care assistant if the guardian is not being paid 
95.14 	for the guardian services and meets the criteria for personal care assistants in paragraph (a).
95.15 	(c) Persons who do not qualify as a personal care assistant include parents and 
95.16 	stepparents of minors, spouses, paid legal guardians, family foster care providers, except 
95.17 	as otherwise allowed in section 256B.0625, subdivision 19a, or staff of a residential 
95.18 	setting. When the personal care assistant is a relative of the recipient, the commissioner 
95.19 	shall pay 80 percent of the provider rate. This rate reduction is effective July 1, 2013. For 
95.20 	purposes of this section, relative means the parent or adoptive parent of an adult child, a 
95.21 	sibling aged 16 years or older, an adult child, a grandparent, or a grandchild.

95.22 	Sec. 19. Minnesota Statutes 2010, section 256B.0659, is amended by adding a 
95.23 	subdivision to read:
95.24 		Subd. 31.Commissioner's access. When the commissioner is investigating a 
95.25 	possible overpayment of Medicaid funds, the commissioner must be given immediate 
95.26 	access without prior notice to the office during regular business hours and to 
95.27 	documentation and records related to services provided and submission of claims for 
95.28 	services provided. Denying the commissioner access to records is cause for immediate 
95.29 	suspension of payment and/or terminating the personal care provider organization's 
95.30 	enrollment according to section 256B.064.

95.31 	Sec. 20. Minnesota Statutes 2011 Supplement, section 256B.0911, subdivision 3a, 
95.32 	is amended to read:
95.33 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, 
95.34 	services planning, or other assistance intended to support community-based living, 
96.1 	including persons who need assessment in order to determine waiver or alternative care 
96.2 	program eligibility, must be visited by a long-term care consultation team within 15 
96.3 	calendar days after the date on which an assessment was requested or recommended. After 
96.4 	January 1, 2011, these requirements also apply to personal care assistance services, private 
96.5 	duty nursing, and home health agency services, on timelines established in subdivision 5. 
96.6 	Face-to-face assessments must be conducted according to paragraphs (b) to (i).
96.7 	(b) The county may utilize a team of either the social worker or public health nurse, 
96.8 	or both. After January 1, 2011, lead agencies shall use certified assessors to conduct the 
96.9 	assessment in a face-to-face interview. The consultation team members must confer 
96.10 	regarding the most appropriate care for each individual screened or assessed.
96.11 	(c) The assessment must be comprehensive and include a person-centered 
96.12 	assessment of the health, psychological, functional, environmental, and social needs of 
96.13 	referred individuals and provide information necessary to develop a support plan that 
96.14 	meets the consumers needs, using an assessment form provided by the commissioner.
96.15 	(d) The assessment must be conducted in a face-to-face interview with the person 
96.16 	being assessed and the person's legal representative, as required by legally executed 
96.17 	documents, and other individuals as requested by the person, who can provide information 
96.18 	on the needs, strengths, and preferences of the person necessary to develop a support plan 
96.19 	that ensures the person's health and safety, but who is not a provider of service or has any 
96.20 	financial interest in the provision of services. For persons who are to be assessed for 
96.21 	elderly waiver customized living services under section 256B.0915, with the permission 
96.22 	of the person being assessed or the person's designated or legal representative, the client's 
96.23 	current or proposed provider of services may submit a copy of the provider's nursing 
96.24 	assessment or written report outlining their recommendations regarding the client's care 
96.25 	needs. The person conducting the assessment will notify the provider of the date by which 
96.26 	this information is to be submitted. This information shall be provided to the person 
96.27 	conducting the assessment prior to the assessment.
96.28 	(e) The person, or the person's legal representative, must be provided with written 
96.29 	recommendations for community-based services, including consumer-directed options, 
96.30 	or institutional care that include documentation that the most cost-effective alternatives 
96.31 	available were offered to the individual, and alternatives to residential settings, including, 
96.32 	but not limited to, foster care settings that are not the primary residence of the license 
96.33 	holder. For purposes of this requirement, "cost-effective alternatives" means community 
96.34 	services and living arrangements that cost the same as or less than institutional care.
96.35 	(f) If the person chooses to use community-based services, the person or the person's 
96.36 	legal representative must be provided with a written community support plan, regardless 
97.1 	of whether the individual is eligible for Minnesota health care programs. A person may 
97.2 	request assistance in identifying community supports without participating in a complete 
97.3 	assessment. Upon a request for assistance identifying community support, the person must 
97.4 	be transferred or referred to the services available under sections 256.975, subdivision 7, 
97.5 	and 256.01, subdivision 24, for telephone assistance and follow up.
97.6 	(g) The person has the right to make the final decision between institutional 
97.7 	placement and community placement after the recommendations have been provided, 
97.8 	except as provided in subdivision 4a, paragraph (c).
97.9 	(h) The team must give the person receiving assessment or support planning, or 
97.10 	the person's legal representative, materials, and forms supplied by the commissioner 
97.11 	containing the following information:
97.12 	(1) the need for and purpose of preadmission screening if the person selects nursing 
97.13 	facility placement;
97.14 	(2) the role of the long-term care consultation assessment and support planning in 
97.15 	waiver and alternative care program eligibility determination;
97.16 	(3) information about Minnesota health care programs;
97.17 	(4) the person's freedom to accept or reject the recommendations of the team;
97.18 	(5) the person's right to confidentiality under the Minnesota Government Data 
97.19 	Practices Act, chapter 13;
97.20 	(6) the long-term care consultant's decision regarding the person's need for 
97.21 	institutional level of care as determined under criteria established in section 144.0724, 
97.22 	subdivision 11, or 256B.092; and
97.23 	(7) the person's right to appeal the decision regarding the need for nursing facility 
97.24 	level of care or the county's final decisions regarding public programs eligibility according 
97.25 	to section 256.045, subdivision 3.
97.26 	(i) Face-to-face assessment completed as part of eligibility determination for 
97.27 	the alternative care, elderly waiver, community alternatives for disabled individuals, 
97.28 	community alternative care, and traumatic brain injury waiver programs under sections 
97.29 	256B.0915, 256B.0917, and 256B.49 is valid to establish service eligibility for no more 
97.30 	than 60 calendar days after the date of assessment. The effective eligibility start date 
97.31 	for these programs can never be prior to the date of assessment. If an assessment was 
97.32 	completed more than 60 days before the effective waiver or alternative care program 
97.33 	eligibility start date, assessment and support plan information must be updated in a 
97.34 	face-to-face visit and documented in the department's Medicaid Management Information 
97.35 	System (MMIS). The effective date of program eligibility in this case cannot be prior to 
97.36 	the date the updated assessment is completed.

98.1 	Sec. 21. Minnesota Statutes 2011 Supplement, section 256B.0911, subdivision 3c, 
98.2 	is amended to read:
98.3 		Subd. 3c.Consultation for housing with services. (a) The purpose of long-term 
98.4 	care consultation for registered housing with services is to support persons with current or 
98.5 	anticipated long-term care needs in making informed choices among options that include 
98.6 	the most cost-effective and least restrictive settings. Prospective residents maintain the 
98.7 	right to choose housing with services or assisted living if that option is their preference.
98.8 	(b) Registered housing with services establishments shall inform all prospective 
98.9 	residents or the prospective resident's designated or legal representative of the availability 
98.10 	of long-term care consultation and the need to receive and verify the consultation prior 
98.11 	to signing a lease or contract. Long-term care consultation for registered housing with 
98.12 	services is provided as determined by the commissioner of human services. The service 
98.13 	is delivered under a partnership between lead agencies as defined in subdivision 1a, 
98.14 	paragraph (d), and the Area Agencies on Aging, and is a point of entry to a combination 
98.15 	of telephone-based long-term care options counseling provided by Senior LinkAge Line 
98.16 	and in-person long-term care consultation provided by lead agencies. The point of entry 
98.17 	service must be provided within five working days of the request of the prospective 
98.18 	resident as follows:
98.19 	(1) the consultation shall be conducted with the prospective resident, or in the 
98.20 	alternative, the resident's designated or legal representative, if:
98.21 	(i) the resident verbally requests; or
98.22 	(ii) the registered housing with services provider has documentation of the 
98.23 	designated or legal representative's authority to enter into a lease or contract on behalf of 
98.24 	the prospective resident and accepts the documentation in good faith;
98.25 	(2) the consultation shall be performed in a manner that provides objective and 
98.26 	complete information;
98.27 	(2) (3) the consultation must include a review of the prospective resident's reasons 
98.28 	for considering housing with services, the prospective resident's personal goals, a 
98.29 	discussion of the prospective resident's immediate and projected long-term care needs, 
98.30 	and alternative community services or housing with services settings that may meet the 
98.31 	prospective resident's needs;
98.32 	(3) (4) the prospective resident shall be informed of the availability of a face-to-face 
98.33 	visit at no charge to the prospective resident to assist the prospective resident in assessment 
98.34 	and planning to meet the prospective resident's long-term care needs; and
98.35 	(4) (5) verification of counseling shall be generated and provided to the prospective 
98.36 	resident by Senior LinkAge Line upon completion of the telephone-based counseling.
99.1 	(c) Housing with services establishments registered under chapter 144D shall:
99.2 	(1) inform all prospective residents or the prospective resident's designated or legal 
99.3 	representative of the availability of and contact information for consultation services 
99.4 	under this subdivision;
99.5 	(2) except for individuals seeking lease-only arrangements in subsidized housing 
99.6 	settings, receive a copy of the verification of counseling prior to executing a lease or 
99.7 	service contract with the prospective resident, and prior to executing a service contract 
99.8 	with individuals who have previously entered into lease-only arrangements; and
99.9 	(3) retain a copy of the verification of counseling as part of the resident's file.
99.10 	(d) Emergency admissions to registered housing with services establishments prior 
99.11 	to consultation under paragraph (b) are permitted according to policies established by 
99.12 	the commissioner.

99.13 	Sec. 22. Minnesota Statutes 2010, section 256B.0911, is amended by adding a 
99.14 	subdivision to read:
99.15 		Subd. 3d.Exemptions. Individuals shall be exempt from the requirements outlined 
99.16 	in subdivision 3c in the following circumstances:
99.17 	(1) the individual is seeking a lease-only arrangement in a subsidized housing setting;
99.18 	(2) the individual has previously received a long-term care consultation assessment 
99.19 	under this section. In this instance, the assessor who completes the long-term care 
99.20 	consultation will issue a verification code and provide it to the individual;
99.21 	(3) the individual is receiving or is being evaluated for hospice services from a 
99.22 	hospice provider licensed under sections 144A.75 to 144A.755; or
99.23 	(4) the individual has used financial planning services and created a long-term care 
99.24 	plan as defined by the commissioner in the 12 months prior to signing a lease or contract 
99.25 	with a registered housing with services establishment.

99.26 	Sec. 23. Minnesota Statutes 2010, section 256B.0911, is amended by adding a 
99.27 	subdivision to read:
99.28 		Subd. 3e.Consultation at hospital discharge. (a) Hospitals shall refer all 
99.29 	individuals described in paragraph (b) prior to discharge from an inpatient hospital stay 
99.30 	to the Senior LinkAge Line for long-term care options counseling. Hospitals shall make 
99.31 	these referrals using referral protocols and processes developed under section 256.975, 
99.32 	subdivision 7. The purpose of the counseling is to support persons with current or 
99.33 	anticipated long-term care needs in making informed choices among options that include 
99.34 	the most cost-effective and least restrictive setting.
100.1 	(b) The individuals who shall be referred under paragraph (a) include older adults 
100.2 	who are at risk of nursing home placement. Protocols for identifying at-risk individuals 
100.3 	shall be developed under section 256.975, subdivision 7, paragraph (b), clause (12).
100.4 	(c) Counseling provided under this subdivision shall meet the requirements for the 
100.5 	consultation required under section 256B.0911, subdivision 3c.

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

100.7 	Sec. 24. Minnesota Statutes 2011 Supplement, section 256B.0915, subdivision 3e, 
100.8 	is amended to read:
100.9 		Subd. 3e.Customized living service rate. (a) Payment for customized living 
100.10 	services shall be a monthly rate authorized by the lead agency within the parameters 
100.11 	established by the commissioner. The payment agreement must delineate the amount of 
100.12 	each component service included in the recipient's customized living service plan. The 
100.13 	lead agency, with input from the provider of customized living services, shall ensure that 
100.14 	there is a documented need within the parameters established by the commissioner for all 
100.15 	component customized living services authorized.
100.16 	(b) The payment rate must be based on the amount of component services to be 
100.17 	provided utilizing component rates established by the commissioner. Counties and tribes 
100.18 	shall use tools issued by the commissioner to develop and document customized living 
100.19 	service plans and rates.
100.20 	(c) Component service rates must not exceed payment rates for comparable elderly 
100.21 	waiver or medical assistance services and must reflect economies of scale. Customized 
100.22 	living services must not include rent or raw food costs.
100.23 	(d) With the exception of individuals described in subdivision 3a, paragraph (b), the 
100.24 	individualized monthly authorized payment for the customized living service plan shall 
100.25 	not exceed 50 percent of the greater of either the statewide or any of the geographic 
100.26 	groups' weighted average monthly nursing facility rate of the case mix resident class 
100.27 	to which the elderly waiver eligible client would be assigned under Minnesota Rules, 
100.28 	parts 9549.0050 to 9549.0059, less the maintenance needs allowance as described 
100.29 	in subdivision 1d, paragraph (a), until the July 1 of the state fiscal year in which the 
100.30 	resident assessment system as described in section 256B.438 for nursing home rate 
100.31 	determination is implemented. Effective on July 1 of the state fiscal year in which 
100.32 	the resident assessment system as described in section 256B.438 for nursing home 
100.33 	rate determination is implemented and July 1 of each subsequent state fiscal year, the 
100.34 	individualized monthly authorized payment for the services described in this clause shall 
100.35 	not exceed the limit which was in effect on June 30 of the previous state fiscal year 
101.1 	updated annually based on legislatively adopted changes to all service rate maximums for 
101.2 	home and community-based service providers.
101.3 	(e) Effective July 1, 2011, the individualized monthly payment for the customized 
101.4 	living service plan for individuals described in subdivision 3a, paragraph (b), must be the 
101.5 	monthly authorized payment limit for customized living for individuals classified as case 
101.6 	mix A, reduced by 25 percent. This rate limit must be applied to all new participants 
101.7 	enrolled in the program on or after July 1, 2011, who meet the criteria described in 
101.8 	subdivision 3a, paragraph (b). This monthly limit also applies to all other participants who 
101.9 	meet the criteria described in subdivision 3a, paragraph (b), at reassessment.
101.10 	(f) Customized living services are delivered by a provider licensed by the 
101.11 	Department of Health as a class A or class F home care provider and provided in a 
101.12 	building that is registered as a housing with services establishment under chapter 144D. 
101.13 	Licensed home care providers are subject to section 256B.0651, subdivision 14.
101.14 	(g) A provider may not bill or otherwise charge an elderly waiver participant or their 
101.15 	family for additional units of any allowable component service beyond those available 
101.16 	under the service rate limits described in paragraph (d), nor for additional units of any 
101.17 	allowable component service beyond those approved in the service plan by the lead agency.

101.18 	Sec. 25. Minnesota Statutes 2011 Supplement, section 256B.0915, subdivision 3h, 
101.19 	is amended to read:
101.20 		Subd. 3h.Service rate limits; 24-hour customized living services. (a) The 
101.21 	payment rate for 24-hour customized living services is a monthly rate authorized by the 
101.22 	lead agency within the parameters established by the commissioner of human services. 
101.23 	The payment agreement must delineate the amount of each component service included 
101.24 	in each recipient's customized living service plan. The lead agency, with input from 
101.25 	the provider of customized living services, shall ensure that there is a documented need 
101.26 	within the parameters established by the commissioner for all component customized 
101.27 	living services authorized. The lead agency shall not authorize 24-hour customized living 
101.28 	services unless there is a documented need for 24-hour supervision.
101.29 	(b) For purposes of this section, "24-hour supervision" means that the recipient 
101.30 	requires assistance due to needs related to one or more of the following:
101.31 	(1) intermittent assistance with toileting, positioning, or transferring;
101.32 	(2) cognitive or behavioral issues;
101.33 	(3) a medical condition that requires clinical monitoring; or
101.34 	(4) for all new participants enrolled in the program on or after July 1, 2011, and 
101.35 	all other participants at their first reassessment after July 1, 2011, dependency in at 
102.1 	least three of the following activities of daily living as determined by assessment under 
102.2 	section 256B.0911: bathing; dressing; grooming; walking; or eating when the dependency 
102.3 	score in eating is three or greater; and needs medication management and at least 50 
102.4 	hours of service per month. The lead agency shall ensure that the frequency and mode 
102.5 	of supervision of the recipient and the qualifications of staff providing supervision are 
102.6 	described and meet the needs of the recipient.
102.7 	(c) The payment rate for 24-hour customized living services must be based on the 
102.8 	amount of component services to be provided utilizing component rates established by the 
102.9 	commissioner. Counties and tribes will use tools issued by the commissioner to develop 
102.10 	and document customized living plans and authorize rates.
102.11 	(d) Component service rates must not exceed payment rates for comparable elderly 
102.12 	waiver or medical assistance services and must reflect economies of scale.
102.13 	(e) The individually authorized 24-hour customized living payments, in combination 
102.14 	with the payment for other elderly waiver services, including case management, must not 
102.15 	exceed the recipient's community budget cap specified in subdivision 3a. Customized 
102.16 	living services must not include rent or raw food costs.
102.17 	(f) The individually authorized 24-hour customized living payment rates shall not 
102.18 	exceed the 95 percentile of statewide monthly authorizations for 24-hour customized 
102.19 	living services in effect and in the Medicaid management information systems on March 
102.20 	31, 2009, for each case mix resident class under Minnesota Rules, parts 9549.0050 
102.21 	to 9549.0059, to which elderly waiver service clients are assigned. When there are 
102.22 	fewer than 50 authorizations in effect in the case mix resident class, the commissioner 
102.23 	shall multiply the calculated service payment rate maximum for the A classification by 
102.24 	the standard weight for that classification under Minnesota Rules, parts 9549.0050 to 
102.25 	9549.0059, to determine the applicable payment rate maximum. Service payment rate 
102.26 	maximums shall be updated annually based on legislatively adopted changes to all service 
102.27 	rates for home and community-based service providers.
102.28 	(g) Notwithstanding the requirements of paragraphs (d) and (f), the commissioner 
102.29 	may establish alternative payment rate systems for 24-hour customized living services in 
102.30 	housing with services establishments which are freestanding buildings with a capacity of 
102.31 	16 or fewer, by applying a single hourly rate for covered component services provided 
102.32 	in either:
102.33 	(1) licensed corporate adult foster homes; or
102.34 	(2) specialized dementia care units which meet the requirements of section 144D.065 
102.35 	and in which:
102.36 	(i) each resident is offered the option of having their own apartment; or
103.1 	(ii) the units are licensed as board and lodge establishments with maximum capacity 
103.2 	of eight residents, and which meet the requirements of Minnesota Rules, part 9555.6205, 
103.3 	subparts 1, 2, 3, and 4, item A.
103.4 	(h) 24-hour customized living services are delivered by a provider licensed by 
103.5 	the Department of Health as a class A or class F home care provider and provided in a 
103.6 	building that is registered as a housing with services establishment under chapter 144D. 
103.7 	Licensed home care providers are subject to section 256B.0651, subdivision 14.
103.8 	(h) (i) A provider may not bill or otherwise charge an elderly waiver participant 
103.9 	or their family for additional units of any allowable component service beyond those 
103.10 	available under the service rate limits described in paragraph (e), nor for additional 
103.11 	units of any allowable component service beyond those approved in the service plan 
103.12 	by the lead agency.

103.13 	Sec. 26. Minnesota Statutes 2010, section 256B.092, subdivision 1b, is amended to 
103.14 	read:
103.15 		Subd. 1b.Individual service plan. (a) The individual service plan must:
103.16 	(1) include the results of the assessment information on the person's need for service, 
103.17 	including identification of service needs that will be or that are met by the person's 
103.18 	relatives, friends, and others, as well as community services used by the general public;
103.19 	(2) identify the person's preferences for services as stated by the person, the person's 
103.20 	legal guardian or conservator, or the parent if the person is a minor;
103.21 	(3) identify long- and short-range goals for the person;
103.22 	(4) identify specific services and the amount and frequency of the services to be 
103.23 	provided to the person based on assessed needs, preferences, and available resources. 
103.24 	The individual service plan shall also specify other services the person needs that are 
103.25 	not available;
103.26 	(5) identify the need for an individual program plan to be developed by the provider 
103.27 	according to the respective state and federal licensing and certification standards, and 
103.28 	additional assessments to be completed or arranged by the provider after service initiation;
103.29 	(6) identify provider responsibilities to implement and make recommendations for 
103.30 	modification to the individual service plan;
103.31 	(7) include notice of the right to request a conciliation conference or a hearing 
103.32 	under section 256.045;
103.33 	(8) be agreed upon and signed by the person, the person's legal guardian 
103.34 	or conservator, or the parent if the person is a minor, and the authorized county 
103.35 	representative; and
104.1 	(9) be reviewed by a health professional if the person has overriding medical needs 
104.2 	that impact the delivery of services.
104.3 	(b) Service planning formats developed for interagency planning such as transition, 
104.4 	vocational, and individual family service plans may be substituted for service planning 
104.5 	formats developed by county agencies.
104.6 	(c) Approved, written, and signed changes to a consumer's services that meet the 
104.7 	criteria in this subdivision shall be an addendum to that consumer's individual service plan.

104.8 	Sec. 27. Minnesota Statutes 2010, section 256B.092, subdivision 7, is amended to read:
104.9 		Subd. 7.Screening teams. (a) For persons with developmental disabilities, 
104.10 	screening teams shall be established which shall evaluate the need for the level of care 
104.11 	provided by residential-based habilitation services, residential services, training and 
104.12 	habilitation services, and nursing facility services. The evaluation shall address whether 
104.13 	home and community-based services are appropriate for persons who are at risk of 
104.14 	placement in an intermediate care facility for persons with developmental disabilities, or 
104.15 	for whom there is reasonable indication that they might require this level of care. The 
104.16 	screening team shall make an evaluation of need within 60 working days of a request for 
104.17 	service by a person with a developmental disability, and within five working days of 
104.18 	an emergency admission of a person to an intermediate care facility for persons with 
104.19 	developmental disabilities.
104.20 	(b) The screening team shall consist of the case manager for persons with 
104.21 	developmental disabilities, the person, the person's legal guardian or conservator, or the 
104.22 	parent if the person is a minor, and a qualified developmental disability professional, as 
104.23 	defined in the Code of Federal Regulations, title 42, section 483.430, as amended through 
104.24 	June 3, 1988. The case manager may also act as the qualified developmental disability 
104.25 	professional if the case manager meets the federal definition.
104.26 	(c) County social service agencies may contract with a public or private agency 
104.27 	or individual who is not a service provider for the person for the public guardianship 
104.28 	representation required by the screening or individual service planning process. The 
104.29 	contract shall be limited to public guardianship representation for the screening and 
104.30 	individual service planning activities. The contract shall require compliance with the 
104.31 	commissioner's instructions and may be for paid or voluntary services.
104.32 	(d) For persons determined to have overriding health care needs and are 
104.33 	seeking admission to a nursing facility or an ICF/MR, or seeking access to home and 
104.34 	community-based waivered services, a registered nurse must be designated as either the 
104.35 	case manager or the qualified developmental disability professional.
105.1 	(e) For persons under the jurisdiction of a correctional agency, the case manager 
105.2 	must consult with the corrections administrator regarding additional health, safety, and 
105.3 	supervision needs.
105.4 	(f) The case manager, with the concurrence of the person, the person's legal guardian 
105.5 	or conservator, or the parent if the person is a minor, may invite other individuals to 
105.6 	attend meetings of the screening team. With the permission of the person being screened 
105.7 	or the person's designated legal representative, the person's current provider of services 
105.8 	may submit a written report outlining their recommendations regarding the person's care 
105.9 	needs prepared by a direct service employee with at least 20 hours of service to that client. 
105.10 	The screening team must notify the provider of the date by which this information is to 
105.11 	be submitted. This information must be provided to the screening team and the person 
105.12 	or the person's legal representative and must be considered prior to the finalization of 
105.13 	the screening.
105.14 	(g) No member of the screening team shall have any direct or indirect service 
105.15 	provider interest in the case.
105.16 	(h) Nothing in this section shall be construed as requiring the screening team 
105.17 	meeting to be separate from the service planning meeting.

105.18 	Sec. 28. Minnesota Statutes 2011 Supplement, section 256B.097, subdivision 3, 
105.19 	is amended to read:
105.20 		Subd. 3.State Quality Council. (a) There is hereby created a State Quality 
105.21 	Council which must define regional quality councils, and carry out a community-based, 
105.22 	person-directed quality review component, and a comprehensive system for effective 
105.23 	incident reporting, investigation, analysis, and follow-up.
105.24 	(b) By August 1, 2011, the commissioner of human services shall appoint the 
105.25 	members of the initial State Quality Council. Members shall include representatives 
105.26 	from the following groups:
105.27 	(1) disability service recipients and their family members;
105.28 	(2) during the first two years of the State Quality Council, there must be at least three 
105.29 	members from the Region 10 stakeholders. As regional quality councils are formed under 
105.30 	subdivision 4, each regional quality council shall appoint one member;
105.31 	(3) disability service providers;
105.32 	(4) disability advocacy groups; and
105.33 	(5) county human services agencies and staff from the Department of Human 
105.34 	Services and Ombudsman for Mental Health and Developmental Disabilities.
106.1 	(c) Members of the council who do not receive a salary or wages from an employer 
106.2 	for time spent on council duties may receive a per diem payment when performing council 
106.3 	duties and functions.
106.4 	(d) The State Quality Council shall:
106.5 	(1) assist the Department of Human Services in fulfilling federally mandated 
106.6 	obligations by monitoring disability service quality and quality assurance and 
106.7 	improvement practices in Minnesota; and
106.8 	(2) establish state quality improvement priorities with methods for achieving results 
106.9 	and provide an annual report to the legislative committees with jurisdiction over policy 
106.10 	and funding of disability services on the outcomes, improvement priorities, and activities 
106.11 	undertaken by the commission during the previous state fiscal year;
106.12 	(3) identify issues pertaining to financial and personal risk that impede Minnesotans 
106.13 	with disabilities from optimizing choice of community-based services; and
106.14 	(4) recommend to the chairs and ranking minority members of the legislative 
106.15 	committees with jurisdiction over human services and civil law by January 15, 2013, 
106.16 	statutory and rule changes related to the findings under clause (3) that promote 
106.17 	individualized service and housing choices balanced with appropriate individualized 
106.18 	protection.
106.19 	(e) The State Quality Council, in partnership with the commissioner, shall:
106.20 	(1) approve and direct implementation of the community-based, person-directed 
106.21 	system established in this section;
106.22 	(2) recommend an appropriate method of funding this system, and determine the 
106.23 	feasibility of the use of Medicaid, licensing fees, as well as other possible funding options;
106.24 	(3) approve measurable outcomes in the areas of health and safety, consumer 
106.25 	evaluation, education and training, providers, and systems;
106.26 	(4) establish variable licensure periods not to exceed three years based on outcomes 
106.27 	achieved; and
106.28 	(5) in cooperation with the Quality Assurance Commission, design a transition plan 
106.29 	for licensed providers from Region 10 into the alternative licensing system by July 1, 2013.
106.30 	(f) The State Quality Council shall notify the commissioner of human services that a 
106.31 	facility, program, or service has been reviewed by quality assurance team members under 
106.32 	subdivision 4, paragraph (b), clause (13), and qualifies for a license.
106.33 	(g) The State Quality Council, in partnership with the commissioner, shall establish 
106.34 	an ongoing review process for the system. The review shall take into account the 
106.35 	comprehensive nature of the system which is designed to evaluate the broad spectrum of 
107.1 	licensed and unlicensed entities that provide services to persons with disabilities. The 
107.2 	review shall address efficiencies and effectiveness of the system.
107.3 	(h) The State Quality Council may recommend to the commissioner certain 
107.4 	variances from the standards governing licensure of programs for persons with disabilities 
107.5 	in order to improve the quality of services so long as the recommended variances do 
107.6 	not adversely affect the health or safety of persons being served or compromise the 
107.7 	qualifications of staff to provide services.
107.8 	(i) The safety standards, rights, or procedural protections referenced under 
107.9 	subdivision 2, paragraph (c), shall not be varied. The State Quality Council may make 
107.10 	recommendations to the commissioner or to the legislature in the report required under 
107.11 	paragraph (c) regarding alternatives or modifications to the safety standards, rights, or 
107.12 	procedural protections referenced under subdivision 2, paragraph (c).
107.13 	(j) The State Quality Council may hire staff to perform the duties assigned in this 
107.14 	subdivision.

107.15 	Sec. 29. Minnesota Statutes 2010, section 256B.431, subdivision 17e, is amended to 
107.16 	read:
107.17 		Subd. 17e.Replacement-costs-new per bed limit effective October 1, 2007.
 107.18 	Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem (2), 
107.19 	for a total replacement, as defined in subdivision 17d, authorized under section 
107.20 	144A.071 or 144A.073 after July 1, 1999, any building project that is a relocation, 
107.21 	renovation, upgrading, or conversion completed on or after July 1, 2001, or any 
107.22 	building project eligible for reimbursement under section 256B.434, subdivision 4f, the 
107.23 	replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed 
107.24 	rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating 
107.25 	the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part 
107.26 	9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be 
107.27 	adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 
107.28 	2000. These amounts must be increased annually as specified in subdivision 3f, paragraph 
107.29 	(a), beginning October 1, 2012.

107.30 	Sec. 30. Minnesota Statutes 2010, section 256B.431, is amended by adding a 
107.31 	subdivision to read:
107.32 		Subd. 45.Rate adjustments for some moratorium exception projects.
 107.33 	Notwithstanding any other law to the contrary, money available for moratorium exception 
107.34 	projects under section 144A.073, subdivisions 2 and 11, shall be used to fund the 
108.1 	incremental rate increases resulting from this section for any nursing facility with a 
108.2 	moratorium exception project approved under section 144A.073, and completed after 
108.3 	August 30, 2010, where the replacement-costs-new limits under subdivision 17e were 
108.4 	higher at any time after project approval than at the time of project completion. The 
108.5 	commissioner shall calculate the property rate increase for these facilities using the highest 
108.6 	set of limits; however, any rate increase under this section shall not be effective until on 
108.7 	or after the effective date of this section, contingent upon federal approval. No property 
108.8 	rate decrease shall result from this section.

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

108.10 	Sec. 31. Minnesota Statutes 2010, section 256B.434, subdivision 10, is amended to 
108.11 	read:
108.12 		Subd. 10.Exemptions. (a) To the extent permitted by federal law, (1) a facility that 
108.13 	has entered into a contract under this section is not required to file a cost report, as defined 
108.14 	in Minnesota Rules, part 9549.0020, subpart 13, for any year after the base year that is the 
108.15 	basis for the calculation of the contract payment rate for the first rate year of the alternative 
108.16 	payment demonstration project contract; and (2) a facility under contract is not subject 
108.17 	to audits of historical costs or revenues, or paybacks or retroactive adjustments based on 
108.18 	these costs or revenues, except audits, paybacks, or adjustments relating to the cost report 
108.19 	that is the basis for calculation of the first rate year under the contract.
108.20 	(b) A facility that is under contract with the commissioner under this section is 
108.21 	not subject to the moratorium on licensure or certification of new nursing home beds in 
108.22 	section 144A.071, unless the project results in a net increase in bed capacity or involves 
108.23 	relocation of beds from one site to another. Contract payment rates must not be adjusted 
108.24 	to reflect any additional costs that a nursing facility incurs as a result of a construction 
108.25 	project undertaken under this paragraph. In addition, as a condition of entering into a 
108.26 	contract under this section, a nursing facility must agree that any future medical assistance 
108.27 	payments for nursing facility services will not reflect any additional costs attributable to 
108.28 	the sale of a nursing facility under this section and to construction undertaken under 
108.29 	this paragraph that otherwise would not be authorized under the moratorium in section 
108.30 	144A.073. Nothing in this section prevents a nursing facility participating in the 
108.31 	alternative payment demonstration project under this section from seeking approval of 
108.32 	an exception to the moratorium through the process established in section 144A.073, 
108.33 	and if approved the facility's rates shall be adjusted to reflect the cost of the project. 
108.34 	Nothing in this section prevents a nursing facility participating in the alternative payment 
108.35 	demonstration project from seeking legislative approval of an exception to the moratorium 
109.1 	under section 144A.071, and, if enacted, the facility's rates shall be adjusted to reflect the 
109.2 	cost of the project.
109.3 	(c) Notwithstanding section 256B.48, subdivision 6, paragraphs (c), (d), and (e), 
109.4 	and pursuant to any terms and conditions contained in the facility's contract, a nursing 
109.5 	facility that is under contract with the commissioner under this section is in compliance 
109.6 	with section 256B.48, subdivision 6, paragraph (b), if the facility is Medicare certified.
109.7 	(d)(c) Notwithstanding paragraph (a), if by April 1, 1996, the health care financing 
109.8 	administration has not approved a required waiver, or the Centers for Medicare and 
109.9 	Medicaid Services otherwise requires cost reports to be filed prior to the waiver's approval, 
109.10 	the commissioner shall require a cost report for the rate year.
109.11 	(e) (d) A facility that is under contract with the commissioner under this section 
109.12 	shall be allowed to change therapy arrangements from an unrelated vendor to a related 
109.13 	vendor during the term of the contract. The commissioner may develop reasonable 
109.14 	requirements designed to prevent an increase in therapy utilization for residents enrolled 
109.15 	in the medical assistance program.
109.16 	(f) (e) Nursing facilities participating in the alternative payment system 
109.17 	demonstration project must either participate in the alternative payment system quality 
109.18 	improvement program established by the commissioner or submit information on their 
109.19 	own quality improvement process to the commissioner for approval. Nursing facilities 
109.20 	that have had their own quality improvement process approved by the commissioner 
109.21 	must report results for at least one key area of quality improvement annually to the 
109.22 	commissioner.

109.23 	Sec. 32. Minnesota Statutes 2010, section 256B.441, is amended by adding a 
109.24 	subdivision to read:
109.25 		Subd. 63.Critical access nursing facilities. (a) The commissioner, in consultation 
109.26 	with the commissioner of health, may designate certain nursing facilities as critical access 
109.27 	nursing facilities. The designation shall be granted on a competitive basis, within the 
109.28 	limits of funds appropriated for this purpose.
109.29 	(b) The commissioner shall request proposals from nursing facilities every two years. 
109.30 	Proposals must be submitted in the form and according to the timelines established by 
109.31 	the commissioner. In selecting applicants to designate, the commissioner, in consultation 
109.32 	with the commissioner of health, and with input from stakeholders, shall develop criteria 
109.33 	designed to preserve access to nursing facility services in isolated areas, rebalance 
109.34 	long-term care, and improve quality.
110.1 	(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing 
110.2 	facilities designated as critical access nursing facilities:
110.3 	(1) partial rebasing, with operating payment rates being the sum of 60 percent of the 
110.4 	operating payment rate determined in accordance with subdivision 54 and 40 percent of the 
110.5 	operating payment rate that would have been allowed had the facility not been designated;
110.6 	(2) enhanced payments for leave days. Notwithstanding section 256B.431, 
110.7 	subdivision 2r, upon designation as a critical access nursing facility, the commissioner 
110.8 	shall limit payment for leave days to 60 percent of that nursing facility's total payment rate 
110.9 	for the involved resident, and shall allow this payment only when the occupancy of the 
110.10 	nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;
110.11 	(3) two designated critical access nursing facilities, with up to 100 beds in active 
110.12 	service, may jointly apply to the commissioner of health for a waiver of Minnesota 
110.13 	Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The 
110.14 	commissioner of health will consider each waiver request independently based on the 
110.15 	criteria under Minnesota Rules, part 4658.0040;
110.16 	(4) the minimum threshold under section 256B.431, subdivisions 3f, paragraph (a), 
110.17 	and 17e, shall be 40 percent of the amount that would otherwise apply; and
110.18 	(5) notwithstanding subdivision 58, beginning October 1, 2014, the quality-based 
110.19 	rate limits under subdivision 50 shall apply to designated critical access nursing facilities.
110.20 	(d) Designation of a critical access nursing facility shall be for a period of two 
110.21 	years, after which the benefits allowed under paragraph (c) shall be removed. Designated 
110.22 	facilities may apply for continued designation.

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

110.24 	Sec. 33. Minnesota Statutes 2010, section 256B.48, is amended by adding a 
110.25 	subdivision to read:
110.26 		Subd. 6a.Referrals to Medicare providers required. Notwithstanding subdivision 
110.27 	1, nursing facility providers that do not participate in or accept Medicare assignment 
110.28 	must refer and document the referral of dual eligible recipients for whom placement is 
110.29 	requested and for whom the resident would be qualified for a Medicare-covered stay to 
110.30 	Medicare providers. The commissioner shall audit nursing facilities that do not accept 
110.31 	Medicare and determine if dual eligible individuals with Medicare qualifying stays have 
110.32 	been admitted. If such a determination is made, the commissioner shall deny Medicaid 
110.33 	payment for the first 20 days of that resident's stay.

111.1 	Sec. 34. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 14, 
111.2 	is amended to read:
111.3 		Subd. 14.Assessment and reassessment. (a) Assessments of each recipient's 
111.4 	strengths, informal support systems, and need for services shall be completed within 20 
111.5 	working days of the recipient's request as provided in section 256B.0911. Reassessment of 
111.6 	each recipient's strengths, support systems, and need for services shall be conducted at 
111.7 	least every 12 months and at other times when there has been a significant change in the 
111.8 	recipient's functioning. With the permission of the recipient or the recipient's designated 
111.9 	legal representative, the recipient's current provider of services may submit a written 
111.10 	report outlining their recommendations regarding the recipient's care needs prepared by 
111.11 	a direct service employee with at least 20 hours of service to that client. The person 
111.12 	conducting the assessment or reassessment must notify the provider of the date by which 
111.13 	this information is to be submitted. This information shall be provided to the person 
111.14 	conducting the assessment and the person or the person's legal representative and must be 
111.15 	considered prior to the finalization of the assessment or reassessment.
111.16 	(b) There must be a determination that the client requires a hospital level of care or a 
111.17 	nursing facility level of care as defined in section 256B.0911, subdivision 4a, paragraph 
111.18 	(d), at initial and subsequent assessments to initiate and maintain participation in the 
111.19 	waiver program.
111.20 	(c) Regardless of other assessments identified in section 144.0724, subdivision 4, as 
111.21 	appropriate to determine nursing facility level of care for purposes of medical assistance 
111.22 	payment for nursing facility services, only face-to-face assessments conducted according 
111.23 	to section 256B.0911, subdivisions 3a, 3b, and 4d, that result in a hospital level of care 
111.24 	determination or a nursing facility level of care determination must be accepted for 
111.25 	purposes of initial and ongoing access to waiver services payment.
111.26 	(d) Persons with developmental disabilities who apply for services under the nursing 
111.27 	facility level waiver programs shall be screened for the appropriate level of care according 
111.28 	to section 256B.092.
111.29 	(e) Recipients who are found eligible for home and community-based services under 
111.30 	this section before their 65th birthday may remain eligible for these services after their 
111.31 	65th birthday if they continue to meet all other eligibility factors.
111.32 	(f) The commissioner shall develop criteria to identify recipients whose level of 
111.33 	functioning is reasonably expected to improve and reassess these recipients to establish 
111.34 	a baseline assessment. Recipients who meet these criteria must have a comprehensive 
111.35 	transitional service plan developed under subdivision 15, paragraphs (b) and (c), and be 
111.36 	reassessed every six months until there has been no significant change in the recipient's 
112.1 	functioning for at least 12 months. After there has been no significant change in the 
112.2 	recipient's functioning for at least 12 months, reassessments of the recipient's strengths, 
112.3 	informal support systems, and need for services shall be conducted at least every 12 
112.4 	months and at other times when there has been a significant change in the recipient's 
112.5 	functioning. Counties, case managers, and service providers are responsible for 
112.6 	conducting these reassessments and shall complete the reassessments out of existing funds.

112.7 	Sec. 35. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 15, 
112.8 	is amended to read:
112.9 		Subd. 15.Individualized service plan; comprehensive transitional service plan; 
112.10 	maintenance service plan. (a) Each recipient of home and community-based waivered 
112.11 	services shall be provided a copy of the written service plan which:
112.12 	(1) is developed and signed by the recipient within ten working days of the 
112.13 	completion of the assessment;
112.14 	(2) meets the assessed needs of the recipient;
112.15 	(3) reasonably ensures the health and safety of the recipient;
112.16 	(4) promotes independence;
112.17 	(5) allows for services to be provided in the most integrated settings; and
112.18 	(6) provides for an informed choice, as defined in section 256B.77, subdivision 2, 
112.19 	paragraph (p), of service and support providers.
112.20 	(b) In developing the comprehensive transitional service plan, the individual 
112.21 	receiving services, the case manager, and the guardian, if applicable, will identify 
112.22 	the transitional service plan fundamental service outcome and anticipated timeline to 
112.23 	achieve this outcome. Within the first 20 days following a recipient's request for an 
112.24 	assessment or reassessment, the transitional service planning team must be identified. A 
112.25 	team leader must be identified who will be responsible for assigning responsibility and 
112.26 	communicating with team members to ensure implementation of the transition plan and 
112.27 	ongoing assessment and communication process. The team leader should be an individual, 
112.28 	such as the case manager or guardian, who has the opportunity to follow the recipient to 
112.29 	the next level of service.
112.30 	Within ten days following an assessment, a comprehensive transitional service plan 
112.31 	must be developed incorporating elements of a comprehensive functional assessment and 
112.32 	including short-term measurable outcomes and timelines for achievement of and reporting 
112.33 	on these outcomes. Functional milestones must also be identified and reported according 
112.34 	to the timelines agreed upon by the transitional service planning team. In addition, the 
112.35 	comprehensive transitional service plan must identify additional supports that may assist 
113.1 	in the achievement of the fundamental service outcome such as the development of greater 
113.2 	natural community support, increased collaboration among agencies, and technological 
113.3 	supports.
113.4 	The timelines for reporting on functional milestones will prompt a reassessment of 
113.5 	services provided, the units of services, rates, and appropriate service providers. It is 
113.6 	the responsibility of the transitional service planning team leader to review functional 
113.7 	milestone reporting to determine if the milestones are consistent with observable skills 
113.8 	and that milestone achievement prompts any needed changes to the comprehensive 
113.9 	transitional service plan.
113.10 	For those whose fundamental transitional service outcome involves the need to 
113.11 	procure housing, a plan for the recipient to seek the resources necessary to secure the least 
113.12 	restrictive housing possible should be incorporated into the plan, including employment 
113.13 	and public supports such as housing access and shelter needy funding.
113.14 	(c) Counties and other agencies responsible for funding community placement and 
113.15 	ongoing community supportive services are responsible for the implementation of the 
113.16 	comprehensive transitional service plans. Oversight responsibilities include both ensuring 
113.17 	effective transitional service delivery and efficient utilization of funding resources.
113.18 	(d) Following one year of transitional services, the transitional services planning 
113.19 	team will make a determination as to whether or not the individual receiving services 
113.20 	requires the current level of continuous and consistent support in order to maintain the 
113.21 	recipient's current level of functioning. Recipients who are determined to have not had 
113.22 	a significant change in functioning for 12 months must move from a transitional to a 
113.23 	maintenance service plan. Recipients on a maintenance service plan must be reassessed 
113.24 	to determine if the recipient would benefit from a transitional service plan at least every 
113.25 	12 months and at other times when there has been a significant change in the recipient's 
113.26 	functioning. This assessment should consider any changes to technological or natural 
113.27 	community supports.
113.28 	(e) When a county is evaluating denials, reductions, or terminations of home and 
113.29 	community-based services under section 256B.49 for an individual, the case manager 
113.30 	shall offer to meet with the individual or the individual's guardian in order to discuss the 
113.31 	prioritization of service needs within the individualized service plan, comprehensive 
113.32 	transitional service plan, or maintenance service plan. The reduction in the authorized 
113.33 	services for an individual due to changes in funding for waivered services may not exceed 
113.34 	the amount needed to ensure medically necessary services to meet the individual's health, 
113.35 	safety, and welfare.
114.1 	(f) At the time of reassessment, local agency case managers shall assess each 
114.2 	recipient of community alternatives for disabled individuals or traumatic brain injury 
114.3 	waivered services currently residing in a licensed adult foster home that is not the primary 
114.4 	residence of the license holder, or in which the license holder is not the primary caregiver, 
114.5 	to determine if that recipient could appropriately be served in a community-living setting. 
114.6 	If appropriate for the recipient, the case manager shall offer the recipient, through a 
114.7 	person-centered planning process, the option to receive alternative housing and service 
114.8 	options. In the event that the recipient chooses to transfer from the adult foster home, 
114.9 	the vacated bed shall not be filled with another recipient of waiver services and group 
114.10 	residential housing, unlessand the licensed capacity shall be reduced accordingly, unless 
114.11 	the savings required by the licensed bed closure reductions under Laws 2011, First Special 
114.12 	Session chapter 9, article 7, sections 1 and 40, paragraph (f), for foster care settings where 
114.13 	the physical location is not the primary residence of the license holder are met through 
114.14 	voluntary changes described in section 245A.03, subdivision 7, paragraph (g), or as 
114.15 	provided under section 245A.03, subdivision 7, paragraph (a), clauses (3) and (4), and the 
114.16 	licensed capacity shall be reduced accordingly. If the adult foster home becomes no longer 
114.17 	viable due to these transfers, the county agency, with the assistance of the department, 
114.18 	shall facilitate a consolidation of settings or closure. This reassessment process shall be 
114.19 	completed by June 30, 2012 July 1, 2013.

114.20 	Sec. 36. Minnesota Statutes 2011 Supplement, section 256B.49, subdivision 23, 
114.21 	is amended to read:
114.22 		Subd. 23.Community-living settings. "Community-living settings" means a 
114.23 	single-family home or apartment where the service recipient or their family owns or rents, 
114.24 	as demonstrated by a lease agreement, and maintains control over the individual unit as 
114.25 	demonstrated by the lease agreement, or has a plan for transition of a lease from a service 
114.26 	provider to the individual. Within two years of signing the initial lease, the service provider 
114.27 	shall transfer the lease to the individual. In the event the landlord denies the transfer, the 
114.28 	commissioner may approve an exception within sufficient time to ensure the continued 
114.29 	occupancy by the individual. Community-living settings are subject to the following:
114.30 	(1) individuals are not required to receive services;
114.31 	(2) individuals are not required to have a disability or specific diagnosis to live 
114.32 	in the community-living setting;
114.33 	(3) individuals may hire service providers of their choice;
114.34 	(4) individuals may choose whether to share their household and with whom;
114.35 	(5) the home or apartment must include living, sleeping, bathing, and cooking areas;
115.1 	(6) individuals must have lockable access and egress;
115.2 	(7) individuals must be free to receive visitors and leave the settings at times and for 
115.3 	durations of their own choosing;
115.4 	(8) leases must not reserve the right to assign units or change unit assignments; and
115.5 	(9) access to the greater community must be easily facilitated based on the 
115.6 	individual's needs and preferences.

115.7 	Sec. 37. [256B.492] HOME AND COMMUNITY-BASED SETTINGS FOR 
115.8 	PEOPLE WITH DISABILITIES.
115.9 	(a) Individuals receiving services under a home and community-based waiver under 
115.10 	Minnesota Statutes, section 256B.092 or 256B.49, may receive services in the following 
115.11 	settings:
115.12 	(1) an individual's own home or family home;
115.13 	(2) a licensed adult foster care setting of up to five people; and
115.14 	(3) community living settings as defined in Minnesota Statutes, section 256B.49, 
115.15 	subdivision 23, where individuals with disabilities may reside in all of the units in a 
115.16 	building of four or fewer units, and no more than the greater of four or 25 percent of the 
115.17 	units in a multifamily building of more than four units.
115.18 	(b) The settings in paragraph (a) must not:
115.19 	(1) be located in a building that is a publicly or privately operated facility that 
115.20 	provides institutional treatment or custodial care;
115.21 	(2) be located in a building on the grounds of or adjacent to a public or private 
115.22 	institution;
115.23 	(3) be a housing complex designed expressly around an individual's diagnosis or 
115.24 	disability;
115.25 	(4) be segregated based on a disability, either physically or because of setting 
115.26 	characteristics, from the larger community; and
115.27 	(5) have the qualities of an institution which include, but are not limited to: 
115.28 	regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions 
115.29 	agreed to and documented in the person's individual service plan shall not result in a 
115.30 	residence having the qualities of an institution as long as the restrictions for the person are 
115.31 	not imposed upon others in the same residence and are the least restrictive alternative, 
115.32 	imposed for the shortest possible time to meet the person's needs.
115.33 	(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which 
115.34 	individuals receive services under a home and community-based waiver as of the effective 
115.35 	date of this section and the setting does not meet the criteria of this section.
116.1 	(d) Notwithstanding paragraph (c), a program in Hennepin County established as 
116.2 	part of a Hennepin County demonstration project is qualified for the exception allowed 
116.3 	under paragraph (c).
116.4 	(e) The commissioner shall submit an amendment to the waiver plan no later than 
116.5 	December 31, 2012.

116.6 	Sec. 38. [256B.493] ADULT FOSTER CARE PLANNED CLOSURE.
116.7 		Subdivision 1.Commissioner's duties; report. The commissioner of human 
116.8 	services shall solicit proposals for the conversion of services provided for persons with 
116.9 	disabilities in settings licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, to 
116.10 	other types of community settings in conjunction with the closure of identified licensed 
116.11 	adult foster care settings.
116.12 		Subd. 2.Planned closure process needs determination. The commissioner shall 
116.13 	announce and implement a program for planned closure of adult foster care homes. 
116.14 	Planned closure shall be the preferred method for achieving necessary budgetary savings 
116.15 	required by the licensed bed closure budget reduction in section 245A.03, subdivision 7, 
116.16 	paragraph (e). If additional closures are required to achieve the necessary savings, the 
116.17 	commissioner shall use the process and priorities in section 245A.03, subdivision 7, 
116.18 	paragraph (e).
116.19 		Subd. 3.Application process. (a) The commissioner shall establish a process for 
116.20 	the application, review, and approval of proposals from license holders for the closure of 
116.21 	adult foster care settings.
116.22 	(b) When an application for a planned closure rate adjustment is submitted, the 
116.23 	license holder shall provide written notification within five working days to the lead 
116.24 	agencies responsible for authorizing the licensed services for the residents of the affected 
116.25 	adult foster care settings. This notification shall be deemed confidential until the license 
116.26 	holder has received approval of the application by the commissioner.
116.27 		Subd. 4.Review and approval process. (a) To be considered for approval, an 
116.28 	application must include:
116.29 	(1) a description of the proposed closure plan, which must identify the home or 
116.30 	homes, and occupied beds for which a planned closure rate adjustment is requested;
116.31 	(2) the proposed timetable for any proposed closure, including the proposed dates 
116.32 	for notification to residents and the affected lead agencies, commencement of closure, 
116.33 	and completion of closure;
116.34 	(3) the proposed relocation plan jointly developed by the counties of financial 
116.35 	responsibility, the residents and their legal representatives, if any, who wish to continue to 
117.1 	receive services from the provider, and the providers for current residents of any adult 
117.2 	foster care home designated for closure; and
117.3 	(4) documentation in a format approved by the commissioner that all the adult foster 
117.4 	care homes receiving a planned closure rate adjustment under the plan have accepted joint 
117.5 	and several liability for recovery of overpayments under section 256B.0641, subdivision 
117.6 	2, for the facilities designated for closure under this plan.
117.7 	(b) In reviewing and approving closure proposals, the commissioner shall give first 
117.8 	priority to proposals that:
117.9 	(1) target counties and geographic areas which have:
117.10 	(i) need for other types of services;
117.11 	(ii) need for specialized services;
117.12 	(iii) higher than average per capita use of foster care settings where the license 
117.13 	holder does not reside; or
117.14 	(iv) residents not living in the geographic area of their choice;
117.15 	(2) demonstrate savings of medical assistance expenditures; and
117.16 	(3) demonstrate that alternative services are based on the recipient's choice of 
117.17 	provider and are consistent with federal law, state law, and federally approved waiver 
117.18 	plans.
117.19 	The commissioner shall also consider any information provided by service 
117.20 	recipients, their legal representatives, family members, or the lead agency on the impact of 
117.21 	the planned closure on the recipients and the services they need.
117.22 	(c) The commissioner shall select proposals that best meet the criteria established in 
117.23 	this subdivision for planned closure of adult foster care settings. The commissioner shall 
117.24 	notify license holders of the selections approved by the commissioner.
117.25 	(d) For each proposal approved by the commissioner, a contract must be established 
117.26 	between the commissioner, the counties of financial responsibility, and the participating 
117.27 	license holder.
117.28 		Subd. 5.Notification of approved proposal. (a) Once the license holder receives 
117.29 	notification from the commissioner that the proposal has been approved, the license holder 
117.30 	shall provide written notification within five working days to:
117.31 	(1) the lead agencies responsible for authorizing the licensed services for the 
117.32 	residents of the affected adult foster care settings; and
117.33 	(2) current and prospective residents, any legal representatives, and family members 
117.34 	involved.
117.35 	(b) This notification must occur at least 45 days prior to the implementation of 
117.36 	the closure proposal.
118.1 		Subd. 6.Adjustment to rates. (a) For purposes of this section, the commissioner 
118.2 	shall establish enhanced medical assistance payment rates under sections 256B.092 and 
118.3 	256B.49, to facilitate an orderly transition for persons with disabilities from adult foster 
118.4 	care to other community-based settings.
118.5 	(b) The enhanced payment rate shall be effective the day after the first resident has 
118.6 	moved until the day the last resident has moved, not to exceed six months.

118.7 	Sec. 39. Minnesota Statutes 2011 Supplement, section 256B.5012, subdivision 13, 
118.8 	is amended to read:
118.9 		Subd. 13.ICF/DD rate decrease effective July 1, 2012 2013. Notwithstanding 
118.10 	subdivision 12, and if the commissioner has not received federal approval before July 1, 
118.11 	2013, of the Long-Term Care Realignment Waiver application submitted under Laws 
118.12 	2011, First Special Session chapter 9, article 7, section 52, or only receives approval to 
118.13 	implement portions of the waiver request, for each facility reimbursed under this section 
118.14 	for services provided from July 1, 2013, through December 31, 2013, the commissioner 
118.15 	shall decrease operating payments equal up to 1.67 percent of the operating payment rates 
118.16 	in effect on June 30, 2012 2013. The commissioner shall prorate the reduction in the 
118.17 	event that only portions of the waiver request are approved and after application of the 
118.18 	continuing care provider payment delay provision in article 6, section 2, subdivision 4, 
118.19 	paragraph (f). For each facility, the commissioner shall apply the rate reduction based on 
118.20 	occupied beds, using the percentage specified in this subdivision multiplied by the total 
118.21 	payment rate, including the variable rate but excluding the property-related payment rate, 
118.22 	in effect on the preceding date. The total rate reduction shall include the adjustment 
118.23 	provided in section 256B.501, subdivision 12.

118.24 	Sec. 40. Minnesota Statutes 2010, section 256D.44, subdivision 5, is amended to read:
118.25 		Subd. 5.Special needs. In addition to the state standards of assistance established in 
118.26 	subdivisions 1 to 4, payments are allowed for the following special needs of recipients of 
118.27 	Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
118.28 	center, or a group residential housing facility.
118.29 	(a) The county agency shall pay a monthly allowance for medically prescribed 
118.30 	diets if the cost of those additional dietary needs cannot be met through some other 
118.31 	maintenance benefit. The need for special diets or dietary items must be prescribed by 
118.32 	a licensed physician. Costs for special diets shall be determined as percentages of the 
118.33 	allotment for a one-person household under the thrifty food plan as defined by the United 
119.1 	States Department of Agriculture. The types of diets and the percentages of the thrifty 
119.2 	food plan that are covered are as follows:
119.3 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
119.4 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent 
119.5 	of thrifty food plan;
119.6 	(3) controlled protein diet, less than 40 grams and requires special products, 125 
119.7 	percent of thrifty food plan;
119.8 	(4) low cholesterol diet, 25 percent of thrifty food plan;
119.9 	(5) high residue diet, 20 percent of thrifty food plan;
119.10 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
119.11 	(7) gluten-free diet, 25 percent of thrifty food plan;
119.12 	(8) lactose-free diet, 25 percent of thrifty food plan;
119.13 	(9) antidumping diet, 15 percent of thrifty food plan;
119.14 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
119.15 	(11) ketogenic diet, 25 percent of thrifty food plan.
119.16 	(b) Payment for nonrecurring special needs must be allowed for necessary home 
119.17 	repairs or necessary repairs or replacement of household furniture and appliances using 
119.18 	the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, 
119.19 	as long as other funding sources are not available.
119.20 	(c) A fee for guardian or conservator service is allowed at a reasonable rate 
119.21 	negotiated by the county or approved by the court. This rate shall not exceed five percent 
119.22 	of the assistance unit's gross monthly income up to a maximum of $100 per month. If the 
119.23 	guardian or conservator is a member of the county agency staff, no fee is allowed.
119.24 	(d) The county agency shall continue to pay a monthly allowance of $68 for 
119.25 	restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 
119.26 	1990, and who eats two or more meals in a restaurant daily. The allowance must continue 
119.27 	until the person has not received Minnesota supplemental aid for one full calendar month 
119.28 	or until the person's living arrangement changes and the person no longer meets the criteria 
119.29 	for the restaurant meal allowance, whichever occurs first.
119.30 	(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, 
119.31 	is allowed for representative payee services provided by an agency that meets the 
119.32 	requirements under SSI regulations to charge a fee for representative payee services. This 
119.33 	special need is available to all recipients of Minnesota supplemental aid regardless of 
119.34 	their living arrangement.
119.35 	(f)(1) Notwithstanding the language in this subdivision, an amount equal to the 
119.36 	maximum allotment authorized by the federal Food Stamp Program for a single individual 
120.1 	which is in effect on the first day of July of each year will be added to the standards of 
120.2 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify 
120.3 	as shelter needy and are: (i) relocating from an institution, or an adult mental health 
120.4 	residential treatment program under section 256B.0622; (ii) eligible for the self-directed 
120.5 	supports option as defined under section 256B.0657, subdivision 2; or (iii) home and 
120.6 	community-based waiver recipients living in their own home or rented or leased apartment 
120.7 	which is not owned, operated, or controlled by a provider of service not related by blood 
120.8 	or marriage, unless allowed under paragraph (g).
120.9 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the 
120.10 	shelter needy benefit under this paragraph is considered a household of one. An eligible 
120.11 	individual who receives this benefit prior to age 65 may continue to receive the benefit 
120.12 	after the age of 65.
120.13 	(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that 
120.14 	exceed 40 percent of the assistance unit's gross income before the application of this 
120.15 	special needs standard. "Gross income" for the purposes of this section is the applicant's or 
120.16 	recipient's income as defined in section 256D.35, subdivision 10, or the standard specified 
120.17 	in subdivision 3, paragraph (a) or (b), whichever is greater. A recipient of a federal or 
120.18 	state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be 
120.19 	considered shelter needy for purposes of this paragraph.
120.20 	(g) Notwithstanding this subdivision, to access housing and services as provided 
120.21 	in paragraph (f), the recipient may choose housing that may be owned, operated, or 
120.22 	controlled by the recipient's service provider. In a multifamily building of four or more 
120.23 	units, the maximum number of apartments that may be used by recipients of this program 
120.24 	shall be 50 percent of the units in a building. This paragraph expires on June 30, 2012. of 
120.25 	more than four units, the maximum number of units that may be used by recipients of this 
120.26 	program shall be the greater of four units of 25 percent of the units in the building. In 
120.27 	multifamily buildings of four or fewer units, all of the units may be used by recipients 
120.28 	of this program. When housing is controlled by the service provider, the individual may 
120.29 	choose their own service provider as provided in section 256B.49, subdivision 23, clause 
120.30 	(3). When the housing is controlled by the service provider, the service provider shall 
120.31 	implement a plan with the recipient to transition the lease to the recipient's name. Within 
120.32 	two years of signing the initial lease, the service provider shall transfer the lease entered 
120.33 	into under this subdivision to the recipient. In the event the landlord denies this transfer, 
120.34 	the commissioner may approve an exception within sufficient time to ensure the continued 
120.35 	occupancy by the recipient. This paragraph expires June 30, 2016.

121.1 	Sec. 41. Laws 2011, First Special Session chapter 9, article 7, section 52, is amended to 
121.2 	read:
121.3 	Sec. 52. IMPLEMENT NURSING HOME LEVEL OF CARE CRITERIA.
 121.4 	The commissioner shall seek any necessary federal approval in order to implement 
121.5 	the changes to the level of care criteria in Minnesota Statutes, section 144.0724, 
121.6 	subdivision 11, on or after July 1, 2012, for adults and children.

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

121.8 	Sec. 42. Laws 2011, First Special Session chapter 9, article 7, section 54, is amended to 
121.9 	read:
121.10 	Sec. 54. CONTINGENCY PROVIDER RATE AND GRANT REDUCTIONS.
 121.11 	(a) Notwithstanding any other rate reduction in this article, if the commissioner of 
121.12 	human services has not received federal approval before July 1, 2013, of the long-term 
121.13 	care realignment waiver application submitted under Laws 2011, First Special Session 
121.14 	chapter 9, article 7, section 52, or only receives approval to implement portions of the 
121.15 	waiver request, the commissioner of human services shall decrease grants, allocations, 
121.16 	reimbursement rates, individual limits, and rate limits, as applicable, by 1.67 percent 
121.17 	effective July 1, 2012 2013, for services rendered on or after those dates from July 1, 
121.18 	2013, through December 31, 2013. The commissioner shall prorate the reduction in the 
121.19 	event that only portions of the waiver request are approved and after application of the 
121.20 	continuing care provider payment delay provision in article 6, section 2, subdivision 4, 
121.21 	paragraph (f). County or tribal contracts for services specified in this section must be 
121.22 	amended to pass through these rate reductions within 60 days of the effective date of the 
121.23 	decrease, and must be retroactive from the effective date of the rate decrease.
121.24 	(b) The rate changes described in this section must be provided to:
121.25 	(1) home and community-based waivered services for persons with developmental 
121.26 	disabilities or related conditions, including consumer-directed community supports, under 
121.27 	Minnesota Statutes, section 256B.501;
121.28 	(2) home and community-based waivered services for the elderly, including 
121.29 	consumer-directed community supports, under Minnesota Statutes, section 256B.0915;
121.30 	(3) waivered services under community alternatives for disabled individuals, 
121.31 	including consumer-directed community supports, under Minnesota Statutes, section 
121.32 	256B.49;
121.33 	(4) community alternative care waivered services, including consumer-directed 
121.34 	community supports, under Minnesota Statutes, section 256B.49;
122.1 	(5) traumatic brain injury waivered services, including consumer-directed 
122.2 	community supports, under Minnesota Statutes, section 256B.49;
122.3 	(6) nursing services and home health services under Minnesota Statutes, section 
122.4 	256B.0625, subdivision 6a;
122.5 	(7) personal care services and qualified professional supervision of personal care 
122.6 	services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
122.7 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
122.8 	subdivision 7;
122.9 	(9) day training and habilitation services for adults with developmental disabilities 
122.10 	or related conditions, under Minnesota Statutes, sections 252.40 to 252.46, including the 
122.11 	additional cost of rate adjustments on day training and habilitation services, provided as a 
122.12 	social service under Minnesota Statutes, section 256M.60; and
122.13 	(10) alternative care services under Minnesota Statutes, section 256B.0913.
122.14 	(c) A managed care plan receiving state payments for the services in this section 
122.15 	must include these decreases in their payments to providers. To implement the rate 
122.16 	reductions in this section, capitation rates paid by the commissioner to managed care 
122.17 	organizations under Minnesota Statutes, section 256B.69, shall reflect up to a 2.34 1.67
122.18 	percent reduction for the specified services for the period of January 1, 2013, through 
122.19 	June 30, 2013, and a 1.67 percent reduction for those services on and after July 1 July 1, 
122.20 	2013, through December 31, 2013.
122.21 	The above payment rate reduction, allocation rates, and rate limits shall expire for 
122.22 	services rendered on December 31, 2013.

122.23 	Sec. 43. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
122.24 	3, is amended to read:

122.25	Subd. 3.Forecasted Programs
 					
122.26 	The amounts that may be spent from this 
122.27 	appropriation for each purpose are as follows:

122.28	(a) MFIP/DWP Grants

122.29	Appropriations by Fund
	
122.30	General
	84,680,000
	91,978,000
	
122.31	Federal TANF
	84,425,000
	75,417,000

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

122.33	(c) General Assistance Grants
		49,192,000
		46,938,000
	
123.1 	General Assistance Standard. The 
123.2 	commissioner shall set the monthly standard 
123.3 	of assistance for general assistance units 
123.4 	consisting of an adult recipient who is 
123.5 	childless and unmarried or living apart 
123.6 	from parents or a legal guardian at $203. 
123.7 	The commissioner may reduce this amount 
123.8 	according to Laws 1997, chapter 85, article 
123.9 	3, section 54.
123.10 	Emergency General Assistance. The 
123.11 	amount appropriated for emergency general 
123.12 	assistance funds is limited to no more 
123.13 	than $6,689,812 in fiscal year 2012 and 
123.14 	$6,729,812 in fiscal year 2013. Funds 
123.15 	to counties shall be allocated by the 
123.16 	commissioner using the allocation method 
123.17 	specified in Minnesota Statutes, section 
123.18 	256D.06.

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

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

123.21	(f) MinnesotaCare Grants
		295,046,000
		317,272,000
	
123.22 	This appropriation is from the health care 
123.23 	access fund.

123.24	(g) Medical Assistance Grants
		4,501,582,000
		4,437,282,000
	
123.25 	Managed Care Incentive Payments. The 
123.26 	commissioner shall not make managed care 
123.27 	incentive payments for expanding preventive 
123.28 	services during fiscal years beginning July 1, 
123.29 	2011, and July 1, 2012.
123.30 	Reduction of Rates for Congregate 
123.31 	Living for Individuals with Lower Needs. 
123.32 	Beginning October 1, 2011, lead agencies 
123.33 	must reduce rates in effect on January 1, 
123.34 	2011, by ten percent for individuals with 
124.1 	lower needs living in foster care settings 
124.2 	where the license holder does not share the 
124.3 	residence with recipients on the CADI and 
124.4 	DD waivers and customized living settings 
124.5 	for CADI. Lead agencies shall consult 
124.6 	with providers to review individual service 
124.7 	plans and identify changes or modifications 
124.8 	to reduce the utilization of services while 
124.9 	maintaining the health and safety of the 
124.10 	individual receiving services. Lead agencies 
124.11 	must adjust contracts within 60 days of the 
124.12 	effective date. If federal waiver approval 
124.13 	is obtained under the long-term care 
124.14 	realignment waiver application submitted 
124.15 	on February 13, 2012, and federal financial 
124.16 	participation is authorized for the alternative 
124.17 	care program, the commissioner shall adjust 
124.18 	this payment rate reduction from ten to five 
124.19 	percent for services rendered on or after 
124.20 	July 1, 2012, or the first day of the month 
124.21 	following federal approval, whichever is 
124.22 	later.
124.23 	Reduction of Lead Agency Waiver 
124.24 	Allocations to Implement Rate Reductions 
124.25 	for Congregate Living for Individuals 
124.26 	with Lower Needs. Beginning October 1, 
124.27 	2011, the commissioner shall reduce lead 
124.28 	agency waiver allocations to implement the 
124.29 	reduction of rates for individuals with lower 
124.30 	needs living in foster care settings where the 
124.31 	license holder does not share the residence 
124.32 	with recipients on the CADI and DD waivers 
124.33 	and customized living settings for CADI.
124.34 	Reduce customized living and 24-hour 
124.35 	customized living component rates.
124.36 	Effective July 1, 2011, the commissioner 
125.1 	shall reduce elderly waiver customized living 
125.2 	and 24-hour customized living component 
125.3 	service spending by five percent through 
125.4 	reductions in component rates and service 
125.5 	rate limits. The commissioner shall adjust 
125.6 	the elderly waiver capitation payment 
125.7 	rates for managed care organizations paid 
125.8 	under Minnesota Statutes, section 256B.69, 
125.9 	subdivisions 6a and 23, to reflect reductions 
125.10 	in component spending for customized living 
125.11 	services and 24-hour customized living 
125.12 	services under Minnesota Statutes, section 
125.13 	256B.0915, subdivisions 3e and 3h, for the 
125.14 	contract period beginning January 1, 2012. 
125.15 	To implement the reduction specified in 
125.16 	this provision, capitation rates paid by the 
125.17 	commissioner to managed care organizations 
125.18 	under Minnesota Statutes, section 256B.69, 
125.19 	shall reflect a ten percent reduction for the 
125.20 	specified services for the period January 1, 
125.21 	2012, to June 30, 2012, and a five percent 
125.22 	reduction for those services on or after July 
125.23 	1, 2012.
125.24 	Limit Growth in the Developmental 
125.25 	Disability Waiver. The commissioner 
125.26 	shall limit growth in the developmental 
125.27 	disability waiver to six diversion allocations 
125.28 	per month beginning July 1, 2011, through 
125.29 	June 30, 2013, and 15 diversion allocations 
125.30 	per month beginning July 1, 2013, through 
125.31 	June 30, 2015. Waiver allocations shall 
125.32 	be targeted to individuals who meet the 
125.33 	priorities for accessing waiver services 
125.34 	identified in Minnesota Statutes, 256B.092, 
125.35 	subdivision 12. The limits do not include 
125.36 	conversions from intermediate care facilities 
126.1 	for persons with developmental disabilities. 
126.2 	Notwithstanding any contrary provisions in 
126.3 	this article, this paragraph expires June 30, 
126.4 	2015.
126.5 	Limit Growth in the Community 
126.6 	Alternatives for Disabled Individuals 
126.7 	Waiver. The commissioner shall limit 
126.8 	growth in the community alternatives for 
126.9 	disabled individuals waiver to 60 allocations 
126.10 	per month beginning July 1, 2011, through 
126.11 	June 30, 2013, and 85 allocations per 
126.12 	month beginning July 1, 2013, through 
126.13 	June 30, 2015. Waiver allocations must 
126.14 	be targeted to individuals who meet the 
126.15 	priorities for accessing waiver services 
126.16 	identified in Minnesota Statutes, section 
126.17 	256B.49, subdivision 11a. The limits include 
126.18 	conversions and diversions, unless the 
126.19 	commissioner has approved a plan to convert 
126.20 	funding due to the closure or downsizing 
126.21 	of a residential facility or nursing facility 
126.22 	to serve directly affected individuals on 
126.23 	the community alternatives for disabled 
126.24 	individuals waiver. Notwithstanding any 
126.25 	contrary provisions in this article, this 
126.26 	paragraph expires June 30, 2015.
126.27 	Personal Care Assistance Relative 
126.28 	Care. The commissioner shall adjust the 
126.29 	capitation payment rates for managed care 
126.30 	organizations paid under Minnesota Statutes, 
126.31 	section 256B.69, to reflect the rate reductions 
126.32 	for personal care assistance provided by 
126.33 	a relative pursuant to Minnesota Statutes, 
126.34 	section 256B.0659, subdivision 11. This rate 
126.35 	reduction is effective July 1, 2013.

127.1	(h) Alternative Care Grants
		46,421,000
		46,035,000
	
127.2 	Alternative Care Transfer. Any money 
127.3 	allocated to the alternative care program that 
127.4 	is not spent for the purposes indicated does 
127.5 	not cancel but shall be transferred to the 
127.6 	medical assistance account.

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

127.8 	Sec. 44. Laws 2011, First Special Session chapter 9, article 10, section 3, subdivision 
127.9 	4, is amended to read:

127.10	Subd. 4.Grant Programs
 					
127.11 	The amounts that may be spent from this 
127.12 	appropriation for each purpose are as follows:

127.13	(a) Support Services Grants

127.14	Appropriations by Fund
	
127.15	General
	8,715,000
	8,715,000
	
127.16	Federal TANF
	100,525,000
	94,611,000
	
127.17 	MFIP Consolidated Fund Grants. The 
127.18 	TANF fund base is reduced by $10,000,000 
127.19 	each year beginning in fiscal year 2012.
127.20 	Subsidized Employment Funding Through 
127.21 	ARRA. The commissioner is authorized to 
127.22 	apply for TANF emergency fund grants for 
127.23 	subsidized employment activities. Growth 
127.24 	in expenditures for subsidized employment 
127.25 	within the supported work program and the 
127.26 	MFIP consolidated fund over the amount 
127.27 	expended in the calendar year quarters in 
127.28 	the TANF emergency fund base year shall 
127.29 	be used to leverage the TANF emergency 
127.30 	fund grants for subsidized employment and 
127.31 	to fund supported work. The commissioner 
127.32 	shall develop procedures to maximize 
127.33 	reimbursement of these expenditures over the 
128.1 	TANF emergency fund base year quarters, 
128.2 	and may contract directly with employers 
128.3 	and providers to maximize these TANF 
128.4 	emergency fund grants.

128.5
128.6	(b) Basic Sliding Fee Child Care Assistance 
Grants
		37,144,000
		38,678,000
	
128.7 	Base Adjustment. The general fund base is 
128.8 	decreased by $990,000 in fiscal year 2014 
128.9 	and $979,000 in fiscal year 2015.
128.10 	Child Care and Development Fund 
128.11 	Unexpended Balance. In addition to 
128.12 	the amount provided in this section, the 
128.13 	commissioner shall expend $5,000,000 
128.14 	in fiscal year 2012 from the federal child 
128.15 	care and development fund unexpended 
128.16 	balance for basic sliding fee child care under 
128.17 	Minnesota Statutes, section 119B.03. The 
128.18 	commissioner shall ensure that all child 
128.19 	care and development funds are expended 
128.20 	according to the federal child care and 
128.21 	development fund regulations.

128.22	(c) Child Care Development Grants
		774,000
		774,000
	
128.23 	Base Adjustment. The general fund base is 
128.24 	increased by $713,000 in fiscal years 2014 
128.25 	and 2015.

128.26	(d) Child Support Enforcement Grants
		50,000
		50,000
	
128.27 	Federal Child Support Demonstration 
128.28 	Grants. Federal administrative 
128.29 	reimbursement resulting from the federal 
128.30 	child support grant expenditures authorized 
128.31 	under section 1115a of the Social Security 
128.32 	Act is appropriated to the commissioner for 
128.33 	this activity.

128.34	(e) Children's Services Grants

129.1	Appropriations by Fund
	
129.2	General
	47,949,000
	48,507,000
	
129.3	Federal TANF
	140,000
	140,000
	
129.4 	Adoption Assistance and Relative Custody 
129.5 	Assistance Transfer. The commissioner 
129.6 	may transfer unencumbered appropriation 
129.7 	balances for adoption assistance and relative 
129.8 	custody assistance between fiscal years and 
129.9 	between programs.
129.10 	Privatized Adoption Grants. Federal 
129.11 	reimbursement for privatized adoption grant 
129.12 	and foster care recruitment grant expenditures 
129.13 	is appropriated to the commissioner for 
129.14 	adoption grants and foster care and adoption 
129.15 	administrative purposes.
129.16 	Adoption Assistance Incentive Grants.
129.17 	Federal funds available during fiscal year 
129.18 	2012 and fiscal year 2013 for adoption 
129.19 	incentive grants are appropriated to the 
129.20 	commissioner for these purposes.

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

129.22	(g) Children and Economic Support Grants

129.23	Appropriations by Fund
	
129.24	General
	16,103,000
	16,180,000
	
129.25	Federal TANF
	700,000
	0
	
129.26 	Long-Term Homeless Services. $700,000 
129.27 	is appropriated from the federal TANF 
129.28 	fund for the biennium beginning July 
129.29 	1, 2011, to the commissioner of human 
129.30 	services for long-term homeless services 
129.31 	for low-income homeless families under 
129.32 	Minnesota Statutes, section 256K.26. This 
129.33 	is a onetime appropriation and is not added 
129.34 	to the base.
130.1 	Base Adjustment. The general fund base is 
130.2 	increased by $42,000 in fiscal year 2014 and 
130.3 	$43,000 in fiscal year 2015.
130.4 	Minnesota Food Assistance Program. 
130.5 	$333,000 in fiscal year 2012 and $408,000 in 
130.6 	fiscal year 2013 are to increase the general 
130.7 	fund base for the Minnesota food assistance 
130.8 	program. Unexpended funds for fiscal year 
130.9 	2012 do not cancel but are available to the 
130.10 	commissioner for this purpose in fiscal year 
130.11 	2013.

130.12	(h) Health Care Grants

130.13	Appropriations by Fund
	
130.14	General
	26,000
	66,000
	
130.15	Health Care Access
	190,000
	190,000
	
130.16 	Base Adjustment. The general fund base is 
130.17 	increased by $24,000 in each of fiscal years 
130.18 	2014 and 2015.

130.19	(i) Aging and Adult Services Grants
		12,154,000
		11,456,000
	
130.20 	Aging Grants Reduction. Effective July 
130.21 	1, 2011, funding for grants made under 
130.22 	Minnesota Statutes, sections 256.9754 and 
130.23 	256B.0917, subdivision 13, is reduced by 
130.24 	$3,600,000 for each year of the biennium. 
130.25 	These reductions are onetime and do 
130.26 	not affect base funding for the 2014-2015 
130.27 	biennium. Grants made during the 2012-2013 
130.28 	biennium under Minnesota Statutes, section 
130.29 	256B.9754, must not be used for new 
130.30 	construction or building renovation.
130.31 	Essential Community Support Grant 
130.32 	Delay. Upon federal approval to implement 
130.33 	the nursing facility level of care on July 
130.34 	1, 2013, essential community supports 
130.35 	grants under Minnesota Statutes, section 
131.1 	256B.0917, subdivision 14, are reduced by 
131.2 	$6,410,000 in fiscal year 2013. Base level 
131.3 	funding is increased by $5,541,000 in fiscal 
131.4 	year 2014 and $6,410,000 in fiscal year 2015.
131.5 	Base Level Adjustment. The general fund 
131.6 	base is increased by $10,035,000 in fiscal 
131.7 	year 2014 and increased by $10,901,000 in 
131.8 	fiscal year 2015.

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

131.10	(k) Disabilities Grants
		15,945,000
		18,284,000
	
131.11 	Grants for Housing Access Services. In 
131.12 	fiscal year 2012, the commissioner shall 
131.13 	make available a total of $161,000 in housing 
131.14 	access services grants to individuals who 
131.15 	relocate from an adult foster care home to 
131.16 	a community living setting for assistance 
131.17 	with completion of rental applications or 
131.18 	lease agreements; assistance with publicly 
131.19 	financed housing options; development of 
131.20 	household budgets; and assistance with 
131.21 	funding affordable furnishings and related 
131.22 	household matters.
131.23 	HIV Grants. The general fund appropriation 
131.24 	for the HIV drug and insurance grant 
131.25 	program shall be reduced by $2,425,000 in 
131.26 	fiscal year 2012 and increased by $2,425,000 
131.27 	in fiscal year 2014. These adjustments are 
131.28 	onetime and shall not be applied to the base. 
131.29 	Notwithstanding any contrary provision, this 
131.30 	provision expires June 30, 2014.
131.31 	Region 10. Of this appropriation, $100,000 
131.32 	each year is for a grant provided under 
131.33 	Minnesota Statutes, section 256B.097.
132.1 	Base Level Adjustment. The general fund 
132.2 	base is increased by $2,944,000 in fiscal year 
132.3 	2014 and $653,000 in fiscal year 2015.
132.4 	Local Planning Grants for Creating 
132.5 	Alternatives to Congregate Living for 
132.6 	Individuals with Lower Needs. (1) The 
132.7 	commissioner shall make available a total 
132.8 	of $250,000 per year in local planning 
132.9 	grants, beginning July 1, 2011, to assist 
132.10 	lead agencies and provider organizations in 
132.11 	developing alternatives to congregate living 
132.12 	within the available level of resources for the 
132.13 	home and community-based services waivers 
132.14 	for persons with disabilities.
132.15 	(2) Notwithstanding clause (1), for fiscal 
132.16 	years 2012 and 2013 only, the appropriation 
132.17 	of $250,000 for fiscal year 2012 carries 
132.18 	forward to fiscal year 2013, effective the day 
132.19 	following final enactment.
132.20 	Of the appropriations available for fiscal 
132.21 	year 2013, $100,000 is for administrative 
132.22 	functions related to the planning process 
132.23 	required under Minnesota Statutes, sections 
132.24 	144A.351 and 245A.03, subdivision 7, 
132.25 	paragraphs (e) and (g), and $400,000 is for 
132.26 	grants required to accomplish that planning 
132.27 	process.
132.28 	(3) Base funding for the grants under clause 
132.29 	(1) is not affected by the appropriations 
132.30 	under clause (2).
132.31 	Disability Linkage Line. Of this 
132.32 	appropriation, $125,000 in fiscal year 2012 
132.33 	and $300,000 in fiscal year 2013 are for 
132.34 	assistance to people with disabilities who are 
132.35 	considering enrolling in managed care.

133.1	(l) Adult Mental Health Grants

133.2	Appropriations by Fund
	
133.3	General
	70,570,000
	70,570,000
	
133.4	Health Care Access
	750,000
	750,000
	
133.5	Lottery Prize
	1,508,000
	1,508,000
	
133.6 	Funding Usage. Up to 75 percent of a fiscal 
133.7 	year's appropriation for adult mental health 
133.8 	grants may be used to fund allocations in that 
133.9 	portion of the fiscal year ending December 
133.10 	31.
133.11 	Base Adjustment. The general fund base is 
133.12 	increased by $200,000 in fiscal years 2014 
133.13 	and 2015.

133.14	(m) Children's Mental Health Grants
		16,457,000
		16,457,000
	
133.15 	Funding Usage. Up to 75 percent of a fiscal 
133.16 	year's appropriation for children's mental 
133.17 	health grants may be used to fund allocations 
133.18 	in that portion of the fiscal year ending 
133.19 	December 31.
133.20 	Base Adjustment. The general fund base is 
133.21 	increased by $225,000 in fiscal years 2014 
133.22 	and 2015.

133.23
133.24	(n) Chemical Dependency Nonentitlement 
Grants
		1,336,000
		1,336,000

133.25 	Sec. 45. INDEPENDENT LIVING SERVICES BILLING.
 133.26 	The commissioner shall allow for daily rate and 15-minute increment billing for 
133.27 	independent living services under the brain injury (BI) and CADI waivers. If necessary to 
133.28 	comply with this requirement, the commissioner shall submit a waiver amendment to the 
133.29 	state plan no later than December 31, 2012.

133.30 	Sec. 46. HOME AND COMMUNITY-BASED SERVICES WAIVERS 
133.31 	AMENDMENT FOR EXCEPTION.
 133.32 	By September 1, 2012, the commissioner of human services shall submit 
133.33 	amendments to the home and community-based waiver plans consistent with the definition 
134.1 	of home and community-based settings under Minnesota Statutes, section 256B.492, 
134.2 	including a request to allow an exception for those settings that serve persons with 
134.3 	disabilities under a home and community-based service waiver in more than 25 percent 
134.4 	of the units in a building as of January 1, 2012, but otherwise meet the definition under 
134.5 	Minnesota Statutes, section 256B.492.

134.6 	Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION 
134.7 	TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET 
134.8 	METHODOLOGY.
 134.9 	By July 1, 2012, the commissioner shall request an amendment to the home and 
134.10 	community-based services waivers authorized under Minnesota Statutes, sections 
134.11 	256B.092 and 256B.49, to establish an exception to the consumer-directed community 
134.12 	supports budget methodology to provide up to 20 percent more funds for those 
134.13 	participants who have their 21st birthday and graduate from high school during 2013 and 
134.14 	are authorized for more services under consumer-directed community supports prior to 
134.15 	graduation than what they are eligible to receive under the current consumer-directed 
134.16 	community supports budget methodology. The exception is limited to those who can 
134.17 	demonstrate that they will have to leave consumer-directed community supports and use 
134.18 	other waiver services because their need for day or employment supports cannot be met 
134.19 	within the consumer-directed community supports budget limits. The commissioner 
134.20 	shall consult with the stakeholder group authorized under Minnesota Statutes, section 
134.21 	256B.0657, subdivision 11, to implement this provision. The exception process shall be 
134.22 	effective upon federal approval for persons eligible during 2013 and 2014.

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

134.24 	Sec. 48. DIRECTION TO OMBUDSMAN FOR LONG-TERM CARE.
 134.25 	The ombudsman for long-term care shall:
134.26 	(1) research the existence of differential treatment based on source of payment in 
134.27 	assisted living settings;
134.28 	(2) convene stakeholders to provide technical assistance and expertise in studying 
134.29 	and addressing these issues, including but not limited to consumers, health care and 
134.30 	housing providers, advocates representing seniors and younger persons with disabilities or 
134.31 	mental health challenges, county representatives, and representatives of the Departments 
134.32 	of Health and Human Services; and
134.33 	(3) submit a report of findings to the legislature no later than January 31, 2013, 
134.34 	with recommendations for the development of policies and procedures to prevent and 
135.1 	remedy instances of discrimination based on participation in or potential eligibility for 
135.2 	medical assistance.

135.3 	Sec. 49. LICENSING PERSONAL CARE ATTENDANT SERVICES.
 135.4 	The commissioner of human services shall study the feasibility of licensing personal 
135.5 	care attendant services and issue a report to the legislature no later than January 15, 2013, 
135.6 	that includes recommendations and proposed legislation for licensure and oversight of 
135.7 	these services.

135.8 	Sec. 50. AUTISM HOUSING WITH SUPPORTS STUDY.
 135.9 	The commissioner of human services, in consultation with the commissioners of 
135.10 	education, health, and employment and economic development, shall complete a study 
135.11 	to determine one or more models of housing with supports that involve coordination or 
135.12 	integration across the human services, educational, and vocational systems for children 
135.13 	with a diagnosis of autistic disorder as defined by diagnostic code 299.0 in the Diagnostic 
135.14 	and Statistical Manual of Mental Disorders (DSM-IV). This study must include research 
135.15 	on recent efforts undertaken or under consideration in other states to address the housing 
135.16 	and long-term support needs of children with severe autism, including a campus model. 
135.17 	The study shall result in an implementation plan that responds to the housing and service 
135.18 	needs of persons with autism. The study is due to the chairs and ranking minority 
135.19 	members of the legislative committees with jurisdiction over health and human services 
135.20 	by January 15, 2013.

135.21 	Sec. 51. REPEALER.
 135.22 	(a) Minnesota Statutes 2010, sections 144A.073, subdivision 9; and 256B.48, 
135.23 	subdivision 6, are repealed.
135.24 	(b) Minnesota Rules, part 4640.0800, subpart 4, is repealed.

135.25 	ARTICLE 5
135.26 	MISCELLANEOUS

135.27 	Section 1. Minnesota Statutes 2010, section 62A.047, is amended to read:
135.28 	62A.047 CHILDREN'S HEALTH SUPERVISION SERVICES AND 
135.29 	PRENATAL CARE SERVICES.
135.30 	A policy of individual or group health and accident insurance regulated under this 
135.31 	chapter, or individual or group subscriber contract regulated under chapter 62C, health 
136.1 	maintenance contract regulated under chapter 62D, or health benefit certificate regulated 
136.2 	under chapter 64B, issued, renewed, or continued to provide coverage to a Minnesota 
136.3 	resident, must provide coverage for child health supervision services and prenatal care 
136.4 	services. The policy, contract, or certificate must specifically exempt reasonable and 
136.5 	customary charges for child health supervision services and prenatal care services from a 
136.6 	deductible, co-payment, or other coinsurance or dollar limitation requirement. Nothing 
136.7 	in this section prohibits a health carrier that has a network of providers from imposing 
136.8 	a deductible, co-payment, or other coinsurance or dollar limitation requirement for 
136.9 	child health supervision services and prenatal care services that are delivered by an 
136.10 	out-of-network provider. This section does not prohibit the use of policy waiting periods 
136.11 	or preexisting condition limitations for these services. Minimum benefits may be limited 
136.12 	to one visit payable to one provider for all of the services provided at each visit cited in 
136.13 	this section subject to the schedule set forth in this section. Nothing in this section applies 
136.14 	to a commercial health insurance policy issued as a companion to a health maintenance 
136.15 	organization contract, a policy designed primarily to provide coverage payable on a per 
136.16 	diem, fixed indemnity, or nonexpense incurred basis, or a policy that provides only 
136.17 	accident coverage Nothing in this section applies to a policy designed primarily to provide 
136.18 	coverage payable on a per diem, fixed indemnity, or non-expense-incurred basis, or a 
136.19 	policy that provides only accident coverage.
136.20 	"Child health supervision services" means pediatric preventive services, appropriate 
136.21 	immunizations, developmental assessments, and laboratory services appropriate to the age 
136.22 	of a child from birth to age six, and appropriate immunizations from ages six to 18, as 
136.23 	defined by Standards of Child Health Care issued by the American Academy of Pediatrics. 
136.24 	Reimbursement must be made for at least five child health supervision visits from birth 
136.25 	to 12 months, three child health supervision visits from 12 months to 24 months, once a 
136.26 	year from 24 months to 72 months.
136.27 	"Prenatal care services" means the comprehensive package of medical and 
136.28 	psychosocial support provided throughout the pregnancy, including risk assessment, 
136.29 	serial surveillance, prenatal education, and use of specialized skills and technology, 
136.30 	when needed, as defined by Standards for Obstetric-Gynecologic Services issued by the 
136.31 	American College of Obstetricians and Gynecologists.

136.32 	EFFECTIVE DATE. The amendments to this section are effective for policies 
136.33 	issued on or after August 1, 2012, and expire June 30, 2013.

136.34 	Sec. 2. Minnesota Statutes 2010, section 245.697, subdivision 1, is amended to read:
137.1 		Subdivision 1.Creation. (a) A State Advisory Council on Mental Health is created. 
137.2 	The council must have 30 members appointed by the governor in accordance with federal 
137.3 	requirements. In making the appointments, the governor shall consider appropriate 
137.4 	representation of communities of color. The council must be composed of:
137.5 	(1) the assistant commissioner of mental health for the department of human services;
137.6 	(2) a representative of the Department of Human Services responsible for the 
137.7 	medical assistance program;
137.8 	(3) one member of each of the four core mental health professional disciplines
137.9 	(psychiatry, psychology, social work, nursing); following professions:
137.10 	(i) psychiatry;
137.11 	(ii) psychology;
137.12 	(iii) social work;
137.13 	(iv) nursing;
137.14 	(v) marriage and family therapy; and
137.15 	(vi) professional clinical counseling;
137.16 	(4) one representative from each of the following advocacy groups: Mental Health 
137.17 	Association of Minnesota, NAMI-MN, Mental Health Consumer/Survivor Network of 
137.18 	Minnesota, and Minnesota Disability Law Center;
137.19 	(5) providers of mental health services;
137.20 	(6) consumers of mental health services;
137.21 	(7) family members of persons with mental illnesses;
137.22 	(8) legislators;
137.23 	(9) social service agency directors;
137.24 	(10) county commissioners; and
137.25 	(11) other members reflecting a broad range of community interests, including 
137.26 	family physicians, or members as the United States Secretary of Health and Human 
137.27 	Services may prescribe by regulation or as may be selected by the governor.
137.28 	(b) The council shall select a chair. Terms, compensation, and removal of members 
137.29 	and filling of vacancies are governed by section 15.059. Notwithstanding provisions 
137.30 	of section 15.059, the council and its subcommittee on children's mental health do not 
137.31 	expire. The commissioner of human services shall provide staff support and supplies 
137.32 	to the council.

137.33 	Sec. 3. Minnesota Statutes 2010, section 254A.19, is amended by adding a subdivision 
137.34 	to read:
138.1 		Subd. 4.Civil commitments. A Rule 25 assessment, under Minnesota Rules, 
138.2 	part 9530.6615, does not need to be completed for an individual being committed as a 
138.3 	chemically dependent person, as defined in section 253B.02, and for the duration of a civil 
138.4 	commitment under section 253B.065, 253B.09, or 253B.095 in order for a county to 
138.5 	access consolidated chemical dependency treatment funds under section 254B.04. The 
138.6 	county must determine if the individual meets the financial eligibility requirements for the 
138.7 	consolidated chemical dependency treatment funds under section 254B.04. Nothing in 
138.8 	this subdivision prohibits placement in a treatment facility or treatment program governed 
138.9 	under this chapter or Minnesota Rules, parts 9530.6600 to 9530.6655.

138.10 	Sec. 4. Minnesota Statutes 2010, section 256B.0943, subdivision 9, is amended to read:
138.11 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a 
138.12 	certified provider entity must ensure that:
138.13 	(1) each individual provider's caseload size permits the provider to deliver services 
138.14 	to both clients with severe, complex needs and clients with less intensive needs. The 
138.15 	provider's caseload size should reasonably enable the provider to play an active role in 
138.16 	service planning, monitoring, and delivering services to meet the client's and client's 
138.17 	family's needs, as specified in each client's individual treatment plan;
138.18 	(2) site-based programs, including day treatment and preschool programs, provide 
138.19 	staffing and facilities to ensure the client's health, safety, and protection of rights, and that 
138.20 	the programs are able to implement each client's individual treatment plan;
138.21 	(3) a day treatment program is provided to a group of clients by a multidisciplinary 
138.22 	team under the clinical supervision of a mental health professional. The day treatment 
138.23 	program must be provided in and by: (i) an outpatient hospital accredited by the Joint 
138.24 	Commission on Accreditation of Health Organizations and licensed under sections 144.50 
138.25 	to 144.55; (ii) a community mental health center under section 245.62; or (iii) an entity 
138.26 	that is under contract with the county boardcertified under subdivision 4 to operate a 
138.27 	program that meets the requirements of section 245.4712, subdivision 2, or245.4884, 
138.28 	subdivision 2, and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment 
138.29 	program must stabilize the client's mental health status while developing and improving 
138.30 	the client's independent living and socialization skills. The goal of the day treatment 
138.31 	program must be to reduce or relieve the effects of mental illness and provide training to 
138.32 	enable the client to live in the community. The program must be available at least one day 
138.33 	a week for a two-hour time block. The two-hour time block must include at least one hour 
138.34 	of individual or group psychotherapy. The remainder of the structured treatment program 
138.35 	may include individual or group psychotherapy, and individual or group skills training, if 
139.1 	included in the client's individual treatment plan. Day treatment programs are not part of 
139.2 	inpatient or residential treatment services. A day treatment program may provide fewer 
139.3 	than the minimally required hours for a particular child during a billing period in which 
139.4 	the child is transitioning into, or out of, the program; and
139.5 	(4) a therapeutic preschool program is a structured treatment program offered 
139.6 	to a child who is at least 33 months old, but who has not yet reached the first day of 
139.7 	kindergarten, by a preschool multidisciplinary team in a day program licensed under 
139.8 	Minnesota Rules, parts 9503.0005 to 9503.0175. The program must be available two 
139.9 	hours per day, five days per week, and 12 months of each calendar year. The structured 
139.10 	treatment program may include individual or group psychotherapy and individual or 
139.11 	group skills training, if included in the client's individual treatment plan. A therapeutic 
139.12 	preschool program may provide fewer than the minimally required hours for a particular 
139.13 	child during a billing period in which the child is transitioning into, or out of, the program.
139.14 	(b) A provider entity must deliver the service components of children's therapeutic 
139.15 	services and supports in compliance with the following requirements:
139.16 	(1) individual, family, and group psychotherapy must be delivered as specified in 
139.17 	Minnesota Rules, part 9505.0323;
139.18 	(2) individual, family, or group skills training must be provided by a mental health 
139.19 	professional or a mental health practitioner who has a consulting relationship with a 
139.20 	mental health professional who accepts full professional responsibility for the training;
139.21 	(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis 
139.22 	through arrangements for direct intervention and support services to the child and the 
139.23 	child's family. Crisis assistance must utilize resources designed to address abrupt or 
139.24 	substantial changes in the functioning of the child or the child's family as evidenced by 
139.25 	a sudden change in behavior with negative consequences for well being, a loss of usual 
139.26 	coping mechanisms, or the presentation of danger to self or others;
139.27 	(4) mental health behavioral aide services must be medically necessary treatment 
139.28 	services, identified in the child's individual treatment plan and individual behavior plan, 
139.29 	which are performed minimally by a paraprofessional qualified according to subdivision 
139.30 	7, paragraph (b), clause (3), and which are designed to improve the functioning of the 
139.31 	child in the progressive use of developmentally appropriate psychosocial skills. Activities 
139.32 	involve working directly with the child, child-peer groupings, or child-family groupings 
139.33 	to practice, repeat, reintroduce, and master the skills defined in subdivision 1, paragraph 
139.34 	(p), as previously taught by a mental health professional or mental health practitioner 
139.35 	including:
140.1 	(i) providing cues or prompts in skill-building peer-to-peer or parent-child 
140.2 	interactions so that the child progressively recognizes and responds to the cues 
140.3 	independently;
140.4 	(ii) performing as a practice partner or role-play partner;
140.5 	(iii) reinforcing the child's accomplishments;
140.6 	(iv) generalizing skill-building activities in the child's multiple natural settings;
140.7 	(v) assigning further practice activities; and
140.8 	(vi) intervening as necessary to redirect the child's target behavior and to de-escalate 
140.9 	behavior that puts the child or other person at risk of injury.
140.10 	A mental health behavioral aide must document the delivery of services in written 
140.11 	progress notes. The mental health behavioral aide must implement treatment strategies 
140.12 	in the individual treatment plan and the individual behavior plan. The mental health 
140.13 	behavioral aide must document the delivery of services in written progress notes. Progress 
140.14 	notes must reflect implementation of the treatment strategies, as performed by the mental 
140.15 	health behavioral aide and the child's responses to the treatment strategies; and
140.16 	(5) direction of a mental health behavioral aide must include the following:
140.17 	(i) a clinical supervision plan approved by the responsible mental health professional;
140.18 	(ii) ongoing on-site observation by a mental health professional or mental health 
140.19 	practitioner for at least a total of one hour during every 40 hours of service provided 
140.20 	to a child; and
140.21 	(iii) immediate accessibility of the mental health professional or mental health 
140.22 	practitioner to the mental health behavioral aide during service provision.

140.23 	Sec. 5. Minnesota Statutes 2010, section 518A.40, subdivision 4, is amended to read:
140.24 		Subd. 4.Change in child care. (a) When a court order provides for child care 
140.25 	expenses, and child care support is not assigned under section 256.741, the public 
140.26 	authority, if the public authority provides child support enforcement services, must may
140.27 	suspend collecting the amount allocated for child care expenses when:
140.28 	(1) either party informs the public authority that no child care costs are being 
140.29 	incurred; and:
140.30 	(2) (1) the public authority verifies the accuracy of the information with the obligee.; 
140.31 	or
140.32 	(2) the obligee fails to respond within 30 days of the date of a written request 
140.33 	from the public authority for information regarding child care costs. A written or oral 
140.34 	response from the obligee that child care costs are being incurred is sufficient for the 
140.35 	public authority to continue collecting child care expenses.
141.1 	The suspension is effective as of the first day of the month following the date that the 
141.2 	public authority received the verification either verified the information with the obligee 
141.3 	or the obligee failed to respond. The public authority will resume collecting child care 
141.4 	expenses when either party provides information that child care costs have resumed are 
141.5 	incurred, or when a child care support assignment takes effect under section 256.741, 
141.6 	subdivision 4. The resumption is effective as of the first day of the month after the date 
141.7 	that the public authority received the information.
141.8 	(b) If the parties provide conflicting information to the public authority regarding 
141.9 	whether child care expenses are being incurred, or if the public authority is unable to 
141.10 	verify with the obligee that no child care costs are being incurred, the public authority will 
141.11 	continue or resume collecting child care expenses. Either party, by motion to the court, 
141.12 	may challenge the suspension, continuation, or resumption of the collection of child care 
141.13 	expenses under this subdivision. If the public authority suspends collection activities 
141.14 	for the amount allocated for child care expenses, all other provisions of the court order 
141.15 	remain in effect.
141.16 	(c) In cases where there is a substantial increase or decrease in child care expenses, 
141.17 	the parties may modify the order under section 518A.39.

141.18 	Sec. 6. Laws 2011, First Special Session chapter 9, article 10, section 8, subdivision 8, 
141.19 	is amended to read:

141.20
141.21	Subd. 8.Board of Nursing Home 
Administrators
 		2,153,000
		2,145,000
	
141.22 	Rulemaking. Of this appropriation, $44,000 
141.23 	in fiscal year 2012 is for rulemaking. This is 
141.24 	a onetime appropriation.
141.25 	Electronic Licensing System Adaptors.
141.26 	Of this appropriation, $761,000 in fiscal 
141.27 	year 2013 from the state government special 
141.28 	revenue fund is to the administrative services 
141.29 	unit to cover the costs to connect to the 
141.30 	e-licensing system. Minnesota Statutes, 
141.31 	section 16E.22. Base level funding for this 
141.32 	activity in fiscal year 2014 shall be $100,000. 
141.33 	Base level funding for this activity in fiscal 
141.34 	year 2015 shall be $50,000.
142.1 	Development and Implementation of a 
142.2 	Disciplinary, Regulatory, Licensing and 
142.3 	Information Management System. Of this 
142.4 	appropriation, $800,000 in fiscal year 2012 
142.5 	and $300,000 in fiscal year 2013 are for the 
142.6 	development of a shared system. Base level 
142.7 	funding for this activity in fiscal year 2014 
142.8 	shall be $50,000.
142.9 	Administrative Services Unit - Operating 
142.10 	Costs. Of this appropriation, $526,000 
142.11 	in fiscal year 2012 and $526,000 in 
142.12 	fiscal year 2013 are for operating costs 
142.13 	of the administrative services unit. The 
142.14 	administrative services unit may receive 
142.15 	and expend reimbursements for services 
142.16 	performed by other agencies.
142.17 	Administrative Services Unit - Retirement 
142.18 	Costs. Of this appropriation in fiscal year 
142.19 	2012, $225,000 is for onetime retirement 
142.20 	costs in the health-related boards. This 
142.21 	funding may be transferred to the health 
142.22 	boards incurring those costs for their 
142.23 	payment. These funds are available either 
142.24 	year of the biennium.
142.25 	Administrative Services Unit - Volunteer 
142.26 	Health Care Provider Program. Of this 
142.27 	appropriation, $150,000 in fiscal year 2012 
142.28 	and $150,000 in fiscal year 2013 are to pay 
142.29 	for medical professional liability coverage 
142.30 	required under Minnesota Statutes, section 
142.31 	214.40.
142.32 	Administrative Services Unit - Contested 
142.33 	Cases and Other Legal Proceedings. Of 
142.34 	this appropriation, $200,000 in fiscal year 
142.35 	2012 and $200,000 in fiscal year 2013 are 
143.1 	for costs of contested case hearings and other 
143.2 	unanticipated costs of legal proceedings 
143.3 	involving health-related boards funded 
143.4 	under this section. Upon certification of a 
143.5 	health-related board to the administrative 
143.6 	services unit that the costs will be incurred 
143.7 	and that there is insufficient money available 
143.8 	to pay for the costs out of money currently 
143.9 	available to that board, the administrative 
143.10 	services unit is authorized to transfer money 
143.11 	from this appropriation to the board for 
143.12 	payment of those costs with the approval 
143.13 	of the commissioner of management and 
143.14 	budget. This appropriation does not cancel. 
143.15 	Any unencumbered and unspent balances 
143.16 	remain available for these expenditures in 
143.17 	subsequent fiscal years.
143.18 	Base Adjustment. The State Government 
143.19 	Special Revenue Fund base is decreased by 
143.20 	$911,000 in fiscal year 2014 and $1,011,000
143.21 	$961,000 in fiscal year 2015.

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

144.1 	Sec. 8. CHEMICAL HEALTH INTEGRATED MODEL OF CARE 
144.2 	DEVELOPMENT.
 144.3 	(a) The commissioner of human services, in partnership with the counties, tribes, 
144.4 	and stakeholders, shall develop a community-based integrated model of care to improve 
144.5 	the effectiveness and efficiency of the service continuum for chemically dependent 
144.6 	individuals. The plan shall identify methods to reduce duplication of efforts, promote 
144.7 	scientifically supported practices, and improve efficiency. This plan shall consider the 
144.8 	potential for geographically or demographically disparate impact on individuals who need 
144.9 	chemical dependency services.
144.10 	(b) The commissioner shall provide the chairs and ranking minority members of the 
144.11 	legislative committees with jurisdiction over health and human services a report detailing 
144.12 	necessary statutory and rule changes and a proposed pilot project to implement the plan no 
144.13 	later than March 15, 2013.

144.14 	Sec. 9. BIENNIAL BUDGET REQUEST; UNIVERSITY OF MINNESOTA.
 144.15 	Beginning in 2013, as part of the biennial budget request submitted to the 
144.16 	Department of Management and Budget and the legislature, the Board of Regents of the 
144.17 	University of Minnesota is encouraged to include a request for funding for rural primary 
144.18 	care training by family practice residence programs to prepare doctors for the practice 
144.19 	of primary care medicine in rural areas of the state. The funding request should provide 
144.20 	for ongoing support of rural primary care training through the University of Minnesota's 
144.21 	general operation and maintenance funding or through dedicated health science funding.

144.22 	ARTICLE 6
144.23 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

144.24	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
144.25 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
144.26 	in parentheses, subtracted from the appropriations in Laws 2011, First Special Session 
144.27 	chapter 9, article 10, to the agencies and for the purposes specified in this article. The 
144.28 	appropriations are from the general fund or other named fund and are available for the 
144.29 	fiscal years indicated for each purpose. The figures "2012" and "2013" used in this 
144.30 	article mean that the addition to or subtraction from the appropriation listed under them 
144.31 	is available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. 
144.32 	Supplemental appropriations and reductions to appropriations for the fiscal year ending 
144.33 	June 30, 2012, are effective the day following final enactment unless a different effective 
144.34 	date is explicit.

145.1				APPROPRIATIONS
	
145.2				Available for the Year
	
145.3				Ending June 30
	
145.4					2012
		2013

145.5
145.6	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

145.7	Subdivision 1.Total Appropriation
 	$
	1,352,000
	$
	19,849,000

145.8	Appropriations by Fund
	
145.9		2012
	2013
	
145.10	General
	803,000
	9,680,000
	
145.11	Health Care Access
	-0-
	 3,000
	
145.12	Federal TANF
	-0-
	 7,453,000
	
145.13	Special Revenue
	549,000
	2,713,000

145.14	Subd. 2.Central Office Operations

145.15	(a) Operations
		118,000
		356,000
	
145.16 	Base Level Adjustment. The general fund 
145.17 	base is increased by $91,000 in fiscal year 
145.18 	2014 and $44,000 in fiscal year 2015.

145.19	(b) Health Care
		24,000
		346,000
	
145.20 	This is a onetime appropriation.
145.21 	Managed Care Audit Activities. In fiscal 
145.22 	year 2014, and in each even-numbered year 
145.23 	thereafter, the commissioner shall transfer 
145.24 	from the health care access fund $1,740,000 
145.25 	to the legislative auditor for managed care 
145.26 	audit services under Minnesota Statutes, 
145.27 	section 256B.69, subdivision 9d. This is 
145.28 	a biennial appropriation. The health care 
145.29 	access fund base is increased by $1,842,000 
145.30 	in fiscal year 2014. Notwithstanding any 
145.31 	contrary provision in this article, this 
145.32 	paragraph does not expire.

145.33	(c) Continuing Care
		19,000
		375,000
	
146.1 	Base Level Adjustment. The general fund 
146.2 	base is decreased by $159,000 in fiscal years 
146.3 	2014 and 2015.

146.4	Subd. 3.Chemical and Mental Health
 		19,000
		68,000
	
146.5 	Base Level Adjustment. The general fund 
146.6 	base is decreased by $68,000 in fiscal years 
146.7 	2014 and 2015.

146.8	Subd. 4.Forecasted Programs

146.9	(a) MFIP/DWP Grants

146.10	Appropriations by Fund
	
146.11		2012
	2013
	
146.12	General
	-0-
	(7,009,000)
	
146.13	Federal TANF
	-0-
	7,000,000

146.14	(b) General Assistance Grants
		-0-
		(8,000)

146.15	(c) Minnesota Supplemental Aid Grants
		-0-
		152,000

146.16	(d) MinnesotaCare Grants
		-0-
		3,000
	
146.17 	This appropriation is from the health care 
146.18 	access fund.

146.19	(e) Group Residential Housing Grants
		-0-
		(202,000)

146.20	(f) Medical Assistance Grants
		623,000
		14,303,000
	
146.21 	PCA Relative Care Payment Recovery.
146.22 	Notwithstanding any law to the contrary, and 
146.23 	if, at the conclusion of the HealthStar Home 
146.24 	Health, Inc et al v. Commissioner of Human 
146.25 	Services litigation, the PCA relative rate 
146.26 	reduction under Minnesota Statutes, section 
146.27 	256B.0659, subdivision 11, paragraph (c), 
146.28 	is upheld, the commissioner is prohibited 
146.29 	from recovering the difference between the 
146.30 	100 percent rate paid to providers and the 
146.31 	80 percent rate, during the period of the 
146.32 	temporary injunction issued on October 26, 
146.33 	2011. This section does not prohibit the 
147.1 	commissioner from recovering any other 
147.2 	overpayments from providers.
147.3 	Long-Term Care Realignment Waiver 
147.4 	Conformity. Notwithstanding Minnesota 
147.5 	Statutes, section 256B.0916, subdivision 14, 
147.6 	and upon federal approval of the long-term 
147.7 	care realignment waiver application, 
147.8 	essential community support grants must be 
147.9 	made available in a manner that is consistent 
147.10 	with the state's long-term care realignment 
147.11 	waiver application submitted on February 
147.12 	13, 2012. The commissioner is authorized 
147.13 	to use increased federal matching funds 
147.14 	resulting from approval of the long-term care 
147.15 	realignment waiver as necessary to meet 
147.16 	the fiscal year 2013 demand for essential 
147.17 	community support grants administered in a 
147.18 	manner that is consistent with the terms and 
147.19 	conditions of the long-term care realignment 
147.20 	waiver, and that amount of federal funds is 
147.21 	appropriated to the commissioner for this 
147.22 	purpose.
147.23 	Continuing Care Provider Payment 
147.24 	Delay. The commissioner of human services 
147.25 	shall delay the last payment or payments 
147.26 	in fiscal year 2013 to providers listed in 
147.27 	Minnesota Statutes 2011 Supplement, 
147.28 	section 256B.5012, subdivision 13, and 
147.29 	Laws 2011, First Special Session chapter 
147.30 	9, article 7, section 54, paragraph (b), 
147.31 	by up to $20,688,000. In calculating the 
147.32 	actual payment amounts to be delayed, the 
147.33 	commissioner must reduce the $20,688,000 
147.34 	amount by any cash basis state share 
147.35 	savings to be realized in fiscal year 2013 
147.36 	from implementing the long-term care 
148.1 	realignment waiver before July 1, 2013. 
148.2 	The commissioner shall make the delayed 
148.3 	payments in July 2013. Notwithstanding 
148.4 	any contrary provision in this article, this 
148.5 	provision expires on August 1, 2013.
148.6 	Critical Access Nursing Facilities 
148.7 	Designation. $500,000 is appropriated in 
148.8 	fiscal year 2013 for critical access nursing 
148.9 	facilities under Minnesota Statutes, section 
148.10 	256B.441, subdivision 63. This is a onetime 
148.11 	appropriation and is available until expended.

148.12	Subd. 5.Grant Programs

148.13	(a) Children and Economic Support Grants
		-0-
		450,000
	
148.14 	Long-Term Homeless Supportive Services.
148.15 	$200,000 in fiscal year 2013 from the TANF 
148.16 	fund is for long-term homeless supportive 
148.17 	services for low-income families under 
148.18 	Minnesota Statutes, section 256K.26. This is 
148.19 	a onetime appropriation.
148.20 	Family Assets for Independence Program.
148.21 	$250,000 in fiscal year 2013 from the 
148.22 	TANF fund is for grants for the family 
148.23 	assets for independence program under 
148.24 	Minnesota Statutes, section 256E.35. This 
148.25 	appropriation must be used to serve families 
148.26 	with income below 200 percent of the federal 
148.27 	poverty guidelines and minor children in the 
148.28 	household. This is a onetime appropriation 
148.29 	and is available until June 30, 2014.
148.30 	TANF Transfer to Federal Child Care 
148.31 	and Development Fund. (1) In addition 
148.32 	to the amount provided in this section, the 
148.33 	commissioner shall transfer TANF funds to 
148.34 	basic sliding fee child care assistance under 
148.35 	Minnesota Statutes, section 119B.03:
149.1 	(i) fiscal year 2013, $1,000; and
149.2 	(ii) fiscal year 2014 and ongoing, $6,000.
149.3 	(2) The commissioner shall authorize the 
149.4 	transfer of sufficient TANF funds to the 
149.5 	federal child care and development fund to 
149.6 	meet this appropriation and shall ensure that 
149.7 	all transferred funds are expended according 
149.8 	to federal child care and development fund 
149.9 	regulations.

149.10	(b) Aging and Adult Services Grants
		-0-
		999,000
	
149.11 	In fiscal year 2013, upon federal approval 
149.12 	to implement the nursing facility level 
149.13 	of care under Minnesota Statutes, section 
149.14 	144.0724, subdivision 11, $999,000 is for 
149.15 	essential community supports grants. This is 
149.16 	a onetime appropriation.

149.17	(c) Disabilities Grants
		-0-
		300,000
	
149.18 	Intractable Epilepsy. This appropriation 
149.19 	includes $65,000 for living skills training 
149.20 	programs for persons with intractable 
149.21 	epilepsy who need assistance in the transition 
149.22 	to independent living under Laws 1988, 
149.23 	chapter 689, article 2, section 251. This 
149.24 	appropriation is ongoing.
149.25 	Self-advocacy Network for Persons with 
149.26 	Disabilities.
149.27 	(1) $50,000 is appropriated in fiscal year 
149.28 	2013 to establish and maintain a statewide 
149.29 	self-advocacy network for persons with 
149.30 	intellectual and developmental disabilities. 
149.31 	This is a onetime appropriation and is 
149.32 	available until expended.
149.33 	(2) The self-advocacy network must focus on 
149.34 	ensuring that persons with disabilities are:
150.1 	(i) informed of and educated about their legal 
150.2 	rights in the areas of education, employment, 
150.3 	housing, transportation, and voting; and
150.4 	(ii) educated and trained to self-advocate for 
150.5 	their rights under law.
150.6 	(3) Self-advocacy network activities under 
150.7 	this section include but are not limited to:
150.8 	(i) education and training, including 
150.9 	preemployment and workplace skills;
150.10 	(ii) establishment and maintenance of a 
150.11 	communication and information exchange 
150.12 	system for self-advocacy groups; and
150.13 	(iii) financial and technical assistance to 
150.14 	self-advocacy groups.
150.15 	Base Level Adjustment. The general fund 
150.16 	base is increased by $23,000 in fiscal year 
150.17 	2014 and decreased by $235,000 in fiscal 
150.18 	year 2015.

150.19	Subd. 6.State-Operated Services
 		549,000
		2,713,000
	
150.20 	Minnesota Specialty Health Services - 
150.21 	Willmar. $549,000 in fiscal year 2012 
150.22 	and $2,713,000 in fiscal year 2013 from 
150.23 	the account established under Minnesota 
150.24 	Statutes, section 246.18, subdivision 8, is 
150.25 	for continued operation of the Minnesota 
150.26 	Specialty Health Services - Willmar. These 
150.27 	appropriations are onetime from the special 
150.28 	revenue fund. Closure of the facility shall 
150.29 	not occur prior to June 30, 2013.

150.30	Subd. 7.Technical Activities
 		-0-
		3,000
	
150.31 	This appropriation is from the TANF fund.
151.1 	Base Level Adjustment. The TANF fund 
151.2 	base is increased by $13,000 in fiscal years 
151.3 	2014 and 2015.

151.4	Sec. 3. COMMISSIONER OF HEALTH

151.5	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	501,000

151.6	Appropriations by Fund
	
151.7		2012
	2013
	
151.8	General
	-0-
	364,000
	
151.9	Health Care Access
	-0-
	137,000

151.10
151.11	Subd. 2.Community and Family Health 
Promotions
 		-0-
		200,000
	
151.12 	Autism Study. $200,000 is for the 
151.13 	commissioner of health, in partnership with 
151.14 	the University of Minnesota, to conduct a 
151.15 	qualitative study focused on cultural and 
151.16 	resource-based aspects of autism spectrum 
151.17 	disorders (ASD) that are unique to the 
151.18 	Somali community. By February 15, 
151.19 	2014, the commissioner shall report the 
151.20 	findings of this study to the legislature. The 
151.21 	report must include recommendations as to 
151.22 	establishment of a population-based public 
151.23 	health surveillance system for ASD. This is a 
151.24 	onetime appropriation and is available until 
151.25 	June 30, 2014.

151.26	Subd. 3.Policy Quality and Compliance

151.27	Appropriations by Fund
	
151.28		2012
	2013
	
151.29	General
	-0-
	164,000
	
151.30	Health Care Access
	-0-
	137,000
	
151.31 	Web Site Changes. $36,000 is for 
151.32 	Web site changes required as part of the 
151.33 	evaluation of health and human services 
151.34 	regulatory responsibilities. This is a onetime 
151.35 	appropriation and must be shared with the 
152.1 	Department of Human Services through an 
152.2 	interagency agreement.
152.3 	Management and Budget. $100,000 is for 
152.4 	transfer to the commissioner of management 
152.5 	and budget for the evaluation of health and 
152.6 	human services regulatory responsibilities. 
152.7 	This is a onetime appropriation.
152.8 	Nursing Facility Moratorium Exceptions.
152.9 	In fiscal year 2013, $8,000 is for 
152.10 	administrative costs related to review 
152.11 	of moratorium exception projects under 
152.12 	Minnesota Statutes, section 144A.073, 
152.13 	subdivision 13. This is a onetime 
152.14 	appropriation.
152.15 	Health Record Access Study. $20,000 
152.16 	in fiscal year 2013 is for the health record 
152.17 	access study. This is a onetime appropriation.
152.18 	Radiation Therapy Facilities Study. In 
152.19 	fiscal year 2013, $137,000 from the health 
152.20 	care access fund is for a study of radiation 
152.21 	therapy facilities capacity. This is a onetime 
152.22 	appropriation.

152.23
152.24	Sec. 4. BOARD OF NURSING HOME 
ADMINISTRATORS
 	$
	-0-
	$
	10,000
	
152.25 	Administrative Services Unit. This 
152.26 	appropriation is to provide a grant to the 
152.27 	Minnesota Ambulance Association to 
152.28 	coordinate and prepare an assessment of 
152.29 	the extent and costs of uncompensated care 
152.30 	as a direct result of emergency responses 
152.31 	on interstate highways in Minnesota. 
152.32 	The study will collect appropriate 
152.33 	information from medical response units 
152.34 	and ambulance services regulated under 
152.35 	Minnesota Statutes, chapter 144E, and to 
153.1 	the extent possible, firefighting agencies. 
153.2 	In preparing the assessment, the Minnesota 
153.3 	Ambulance Association shall consult with 
153.4 	its membership, the Minnesota Fire Chiefs 
153.5 	Association, the Office of the State Fire 
153.6 	Marshal, and the Emergency Medical 
153.7 	Services Regulatory Board. The findings 
153.8 	of the assessment will be reported to the 
153.9 	chairs and ranking minority members of the 
153.10 	legislative committees with jurisdiction over 
153.11 	health and public safety by January 1, 2013.

153.12 	Sec. 5. MANAGED CARE ORGANIZATION EXCESS PROFITS.
 153.13 	Excess profits of managed care organizations paid to the commissioner of human 
153.14 	services in fiscal year 2013 shall be deposited in the funds from which the payments 
153.15 	originated. These amounts are estimated to be $27,740,000 for the general fund and 
153.16 	$7,300,000 for the health care access fund.

153.17 	Sec. 6. EXPIRATION OF UNCODIFIED LANGUAGE.
 153.18 	All uncodified language contained in this article expires on June 30, 2013, unless a 
153.19 	different expiration date is explicit.

153.20 	Sec. 7. EFFECTIVE DATE.
 153.21 	The provisions in this article are effective July 1, 2012, unless a different effective 
153.22 	date is explicit.