1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             prekindergarten through grade 12 education, including 
  1.4             general education, education excellence, special 
  1.5             programs, and facilities and technology; early 
  1.6             childhood and family education, including early 
  1.7             childhood family support, prevention, and 
  1.8             self-sufficiency and lifelong learning; libraries; and 
  1.9             health and human services; setting priorities for use 
  1.10            of additional revenues; modifying certain bonding, 
  1.11            loan, and financial provisions of the public 
  1.12            facilities authority; amending Minnesota Statutes 
  1.13            2002, sections 446A.12, subdivision 1; 446A.14; 
  1.14            446A.17; 446A.19; Minnesota Statutes 2003 Supplement, 
  1.15            sections 16A.152, subdivision 2; 123B.54; Laws 2003, 
  1.16            First Special Session chapter 9, article 1, section 
  1.17            53, subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 
  1.18            Special Session chapter 9, article 2, section 55, 
  1.19            subdivisions 2, 3, 4, 5, 7, 9, 12; Laws 2003, First 
  1.20            Special Session chapter 9, article 3, section 20, 
  1.21            subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, First 
  1.22            Special Session chapter 9, article 4, section 31, 
  1.23            subdivisions 2, 3; Laws 2003, First Special Session 
  1.24            chapter 9, article 5, section 35, subdivisions 2, 3; 
  1.25            Laws 2003, First Special Session chapter 9, article 6, 
  1.26            section 4; Laws 2003, First Special Session chapter 9, 
  1.27            article 7, section 11, subdivision 3; Laws 2003, First 
  1.28            Special Session chapter 9, article 8, section 7, 
  1.29            subdivisions 2, 5; Laws 2003, First Special Session 
  1.30            chapter 9, article 9, section 9, subdivision 2; Laws 
  1.31            2003, First Special Session chapter 14, article 13C, 
  1.32            sections 1; 2, subdivisions 1, 3, 6, 7, 9, 11; 10, 
  1.33            subdivisions 1, 2. 
  1.34  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.35                             ARTICLE 1
  1.36             PREKINDERGARTEN THROUGH GRADE 12 EDUCATION
  1.37                       A.  GENERAL EDUCATION
  1.38     Section 1.  Laws 2003, First Special Session chapter 9, 
  1.39  article 1, section 53, subdivision 2, is amended to read: 
  2.1      Subd. 2.  [GENERAL EDUCATION AID.] For general education 
  2.2   aid under Minnesota Statutes, section 126C.13, subdivision 4: 
  2.3        $4,764,384,000 $4,726,466,000     .....     2004
  2.4        $5,090,303,000 $5,026,983,000     .....     2005
  2.5      The 2004 appropriation includes $857,432,000 $860,552,000 
  2.6   for 2003 and $3,906,952,000 $3,865,914,000 for 2004. 
  2.7      The 2005 appropriation includes 
  2.8   $1,009,856,000 $1,009,822,000 for 2004 
  2.9   and $4,080,447,000 $4,017,161,000 for 2005.  
  2.10     Sec. 2.  Laws 2003, First Special Session chapter 9, 
  2.11  article 1, section 53, subdivision 3, is amended to read: 
  2.12     Subd. 3.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
  2.13  referendum tax base replacement aid under Minnesota Statutes, 
  2.14  section 126C.17, subdivision 7a: 
  2.15       $ 7,841,000 $8,096,000     .....     2004 
  2.16       $ 8,543,000 $8,596,000     .....     2005 
  2.17     The 2004 appropriation includes $1,419,000 for 2003 and 
  2.18  $6,422,000 $6,677,000 for 2004.  
  2.19     The 2005 appropriation includes $1,605,000 $1,669,000 for 
  2.20  2004 and $6,938,000 $6,927,000 for 2005. 
  2.21     Sec. 3.  Laws 2003, First Special Session chapter 9, 
  2.22  article 1, section 53, subdivision 5, is amended to read: 
  2.23     Subd. 5.  [ABATEMENT REVENUE.] For abatement aid under 
  2.24  Minnesota Statutes, section 127A.49:  
  2.25       $2,680,000 $2,436,000     .....     2004 
  2.26       $2,937,000 $1,559,000     .....     2005 
  2.27     The 2004 appropriation includes $472,000 for 2003 and 
  2.28  $2,208,000 $1,964,000 for 2004.  
  2.29     The 2005 appropriation includes $551,000 $491,000 for 2004 
  2.30  and $2,386,000 $1,068,000 for 2005.  
  2.31     Sec. 4.  Laws 2003, First Special Session chapter 9, 
  2.32  article 1, section 53, subdivision 6, is amended to read: 
  2.33     Subd. 6.  [CONSOLIDATION TRANSITION.] For districts 
  2.34  consolidating under Minnesota Statutes, section 123A.485: 
  2.35       $207,000 $ 35,000     .....     2004 
  2.36       $607,000 $145,000     .....     2005 
  3.1      The 2004 appropriation includes $35,000 for 2003 and 
  3.2   $172,000 $0 for 2004. 
  3.3      The 2005 appropriation includes $42,000 $0 for 2004 and 
  3.4   $565,000 $145,000 for 2005. 
  3.5      Sec. 5.  Laws 2003, First Special Session chapter 9, 
  3.6   article 1, section 53, subdivision 11, is amended to read: 
  3.7      Subd. 11.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
  3.8   education aid under Minnesota Statutes, sections 123B.40 to 
  3.9   123B.43 and 123B.87: 
  3.10       $14,626,000 $14,411,000     .....     2004 
  3.11       $15,594,000 $15,072,000     .....     2005 
  3.12     The 2004 appropriation includes $2,715,000 for 2003 and 
  3.13  $11,911,000 $11,696,000 for 2004. 
  3.14     The 2005 appropriation includes $2,977,000 $2,923,000 for 
  3.15  2004 and $12,617,000 $12,149,000 for 2005. 
  3.16     Sec. 6.  Laws 2003, First Special Session chapter 9, 
  3.17  article 1, section 53, subdivision 12, is amended to read: 
  3.18     Subd. 12.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
  3.19  pupil transportation aid under Minnesota Statutes, section 
  3.20  123B.92, subdivision 9: 
  3.21       $21,477,000 $20,471,000     .....     2004 
  3.22       $21,982,000 $21,421,000     .....     2005 
  3.23     The 2004 appropriation includes $3,990,000 for 2003 and 
  3.24  $17,487,000 $16,481,000 for 2004. 
  3.25     The 2005 appropriation includes $4,371,000 $4,120,000 for 
  3.26  2004 and $17,611,000 $17,301,000 for 2005. 
  3.27                      B.  EDUCATION EXCELLENCE
  3.28     Sec. 7.  Laws 2003, First Special Session chapter 9, 
  3.29  article 2, section 55, subdivision 2, is amended to read: 
  3.30     Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
  3.31  lease aid under Minnesota Statutes, section 124D.11, subdivision 
  3.32  4: 
  3.33       $17,140,000 $16,753,000     .....     2004 
  3.34       $21,018,000 $21,347,000     .....     2005 
  3.35     The 2004 appropriation includes $2,524,000 for 2003 and 
  3.36  $14,616,000 $14,229,000 for 2004. 
  4.1      The 2005 appropriation includes $3,654,000 $3,557,000 for 
  4.2   2004 and $17,364,000 $17,790,000 for 2005.  
  4.3      Sec. 8.  Laws 2003, First Special Session chapter 9, 
  4.4   article 2, section 55, subdivision 3, is amended to read: 
  4.5      Subd. 3.  [CHARTER SCHOOL STARTUP AID.] For charter school 
  4.6   startup cost aid under Minnesota Statutes, section 124D.11: 
  4.7        $824,000 $844,000     .....     2004 
  4.8        $151,000 $156,000     .....     2005 
  4.9      The 2004 appropriation includes $220,000 for 2003 and 
  4.10  $604,000 $624,000 for 2004.  
  4.11     The 2005 appropriation includes $151,000 $156,000 for 2004 
  4.12  and $0 for 2005. 
  4.13     Sec. 9.  Laws 2003, First Special Session chapter 9, 
  4.14  article 2, section 55, subdivision 4, is amended to read: 
  4.15     Subd. 4.  [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 
  4.16  to charter schools to promote integration and desegregation 
  4.17  under Minnesota Statutes, section 124D.11, subdivision 6, 
  4.18  paragraph (e): 
  4.19       $8,000 $7,000     .....     2004 
  4.20     This appropriation includes $8,000 $7,000 for 2003 and $0 
  4.21  for 2004. 
  4.22     Sec. 10.  Laws 2003, First Special Session chapter 9, 
  4.23  article 2, section 55, subdivision 5, is amended to read: 
  4.24     Subd. 5.  [INTEGRATION AID.] For integration aid under 
  4.25  Minnesota Statutes, section 124D.86, subdivision 5: 
  4.26       $56,869,000 $55,911,000     .....     2004 
  4.27       $56,092,000 $55,893,000     .....     2005 
  4.28     The 2004 appropriation includes $8,428,000 for 2003 and 
  4.29  $48,441,000 $47,483,000 for 2004. 
  4.30     The 2005 appropriation includes $12,110,000 $11,870,000 for 
  4.31  2004 and $43,982,000 $44,023,000 for 2005.  
  4.32     Sec. 11.  Laws 2003, First Special Session chapter 9, 
  4.33  article 2, section 55, subdivision 7, is amended to read: 
  4.34     Subd. 7.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
  4.35  startup aid under Minnesota Statutes, section 124D.88: 
  4.36       $ 37,000     .....     2004 
  5.1        $454,000 $ 40,000     .....     2005 
  5.2      The 2004 appropriation includes $37,000 for 2003 and $0 for 
  5.3   2004.  
  5.4      The 2005 appropriation includes $0 for 2004 and $437,000 
  5.5   $40,000 for 2005. 
  5.6      Sec. 12.  Laws 2003, First Special Session chapter 9, 
  5.7   article 2, section 55, subdivision 9, is amended to read: 
  5.8      Subd. 9.  [SUCCESS FOR THE FUTURE.] For American Indian 
  5.9   success for the future grants under Minnesota Statutes, section 
  5.10  124D.81: 
  5.11       $2,073,000 $2,061,000     .....     2004
  5.12       $2,137,000     .....     2005
  5.13     The 2004 appropriation includes $363,000 $351,000 for 2003 
  5.14  and $1,710,000 for 2004. 
  5.15     The 2005 appropriation includes $427,000 for 2004 and 
  5.16  $1,710,000 for 2005. 
  5.17     Sec. 13.  Laws 2003, First Special Session chapter 9, 
  5.18  article 2, section 55, subdivision 12, is amended to read:  
  5.19     Subd. 12.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
  5.20  school aid under Minnesota Statutes, section 124D.83: 
  5.21       $2,135,000 $1,617,000     .....     2004
  5.22       $2,336,000 $2,185,000     .....     2005
  5.23     The 2004 appropriation includes $285,000 for 2003 and 
  5.24  $1,850,000 $1,332,000 for 2004. 
  5.25     The 2005 appropriation includes $462,000 $333,000 for 2004 
  5.26  and $1,874,000 $1,852,000 for 2005. 
  5.27                        C.  SPECIAL PROGRAMS
  5.28     Sec. 14.  Laws 2003, First Special Session chapter 9, 
  5.29  article 3, section 20, subdivision 4, is amended to read: 
  5.30     Subd. 4.  [AID FOR CHILDREN WITH DISABILITIES.] For aid 
  5.31  under Minnesota Statutes, section 125A.75, subdivision 3, for 
  5.32  children with disabilities placed in residential facilities 
  5.33  within the district boundaries for whom no district of residence 
  5.34  can be determined: 
  5.35       $2,177,000 $2,311,000     .....     2004 
  5.36       $2,244,000 $2,550,000     .....     2005 
  6.1      If the appropriation for either year is insufficient, the 
  6.2   appropriation for the other year is available.  
  6.3      Sec. 15.  Laws 2003, First Special Session chapter 9, 
  6.4   article 3, section 20, subdivision 5, is amended to read: 
  6.5      Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
  6.6   teacher travel for home-based services under Minnesota Statutes, 
  6.7   section 125A.75, subdivision 1: 
  6.8        $220,000 $173,000     .....     2004 
  6.9        $261,000 $178,000     .....     2005 
  6.10     The 2004 appropriation includes $34,000 for 2003 and 
  6.11  $186,000 $139,000 for 2004. 
  6.12     The 2005 appropriation includes $46,000 $34,000 for 2004 
  6.13  and $215,000 $144,000 for 2005. 
  6.14     Sec. 16.  Laws 2003, First Special Session chapter 9, 
  6.15  article 3, section 20, subdivision 6, is amended to read: 
  6.16     Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
  6.17  cost aid under Minnesota Statutes, section 125A.79, subdivision 
  6.18  7: 
  6.19       $92,606,000 $92,605,000     .....     2004 
  6.20       $92,984,000 $92,799,000     .....     2005 
  6.21     The 2004 appropriation includes $41,754,000 for 2003 and 
  6.22  $50,852,000 $50,851,000 for 2004. 
  6.23     The 2005 appropriation includes $41,215,000 $41,216,000 for 
  6.24  2004 and $51,769,000 $51,583,000 for 2005.  
  6.25     Sec. 17.  Laws 2003, First Special Session chapter 9, 
  6.26  article 3, section 20, subdivision 7, is amended to read: 
  6.27     Subd. 7.  [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 
  6.28  paying the costs a district incurs under Minnesota Statutes, 
  6.29  section 125A.75, subdivision 8: 
  6.30       $346,000 $201,000     .....     2004 
  6.31       $ 17,000 $150,000     .....     2005 
  6.32     Sec. 18.  Laws 2003, First Special Session chapter 9, 
  6.33  article 3, section 20, subdivision 8, is amended to read: 
  6.34     Subd. 8.  [TRANSITION FOR DISABLED STUDENTS.] For aid for 
  6.35  transition programs for children with disabilities under 
  6.36  Minnesota Statutes, section 124D.454: 
  7.1        $8,625,000 $8,570,000     .....     2004 
  7.2        $8,867,000 $8,760,000     .....     2005 
  7.3      The 2004 appropriation includes $1,516,000 for 2003 and 
  7.4   $7,109,000 $7,054,000 for 2004.  
  7.5      The 2005 appropriation includes $1,777,000 $1,763,000 for 
  7.6   2004 and $7,090,000 $6,997,000 for 2005.  
  7.7      Sec. 19.  Laws 2003, First Special Session chapter 9, 
  7.8   article 3, section 20, subdivision 9, is amended to read: 
  7.9      Subd. 9.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
  7.10  reimbursing serving school districts for unreimbursed eligible 
  7.11  expenditures attributable to children placed in the serving 
  7.12  school district by court action under Minnesota Statutes, 
  7.13  section 125A.79, subdivision 4: 
  7.14       $152,000 $36,000     .....     2004 
  7.15       $160,000 $61,000     .....     2005 
  7.16                   D.  FACILITIES AND TECHNOLOGY
  7.17     Sec. 20.  Minnesota Statutes 2003 Supplement, section 
  7.18  123B.54, is amended to read: 
  7.19     123B.54 [DEBT SERVICE APPROPRIATION.] 
  7.20     (a) $25,987,000 $28,367,000 in fiscal year 2002, 
  7.21  $29,941,000 2006 and $25,560,000 in fiscal year 2003, 
  7.22  $40,075,000 in fiscal year 2004, and $39,774,000 in fiscal years 
  7.23  2005 2007 and later are appropriated from the general fund to 
  7.24  the commissioner of education for payment of debt service 
  7.25  equalization aid under section 123B.53.  
  7.26     (b) The appropriations in paragraph (a) must be reduced by 
  7.27  the amount of any money specifically appropriated for the same 
  7.28  purpose in any year from any state fund. 
  7.29     Sec. 21.  Laws 2003, First Special Session chapter 9, 
  7.30  article 4, section 31, subdivision 2, is amended to read: 
  7.31     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
  7.32  safety aid according to Minnesota Statutes, section 123B.57, 
  7.33  subdivision 5: 
  7.34       $7,839,000 $5,356,000     .....     2004 
  7.35       $6,068,000 $1,920,000     .....     2005 
  7.36     The 2004 appropriation includes $1,516,000 for 2003 and 
  8.1   $6,323,000 $3,840,000 for 2004. 
  8.2      The 2005 appropriation includes $1,580,000 $960,000 for 
  8.3   2004 and $4,488,000 $960,000 for 2005. 
  8.4      Sec. 22.  Laws 2003, First Special Session chapter 9, 
  8.5   article 4, section 31, subdivision 3, is amended to read: 
  8.6      Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
  8.7   according to Minnesota Statutes, section 123B.53, subdivision 6: 
  8.8        $34,500,000 $35,598,000     .....     2004 
  8.9        $37,575,000 $31,220,000     .....     2005 
  8.10     The 2004 appropriation includes $5,586,000 for 2003 and 
  8.11  $28,914,000 $30,012,000 for 2004. 
  8.12     The 2005 appropriation includes $7,228,000 $7,503,000 for 
  8.13  2004 and $30,347,000 $23,717,000 for 2005. 
  8.14          E.  NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS
  8.15     Sec. 23.  Laws 2003, First Special Session chapter 9, 
  8.16  article 5, section 35, subdivision 2, is amended to read: 
  8.17     Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
  8.18  according to Minnesota Statutes, section 124D.111, and Code of 
  8.19  Federal Regulations, title 7, section 210.17:  
  8.20       $7,800,000 $7,650,000     .....     2004 
  8.21       $7,950,000 $7,760,000     .....     2005 
  8.22     Sec. 24.  Laws 2003, First Special Session chapter 9, 
  8.23  article 5, section 35, subdivision 3, is amended to read: 
  8.24     Subd. 3.  [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 
  8.25  MILK.] For traditional school breakfast aid and kindergarten 
  8.26  milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 
  8.27       $3,088,000 $4,382,000     .....     2004 
  8.28       $3,217,000 $4,460,000     .....     2005 
  8.29                           F.  LIBRARIES
  8.30     Sec. 25.  Laws 2003, First Special Session chapter 9, 
  8.31  article 6, section 4, is amended to read: 
  8.32     Sec. 4.  [APPROPRIATIONS.] 
  8.33     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
  8.34  indicated in this section are appropriated from the general fund 
  8.35  to the department of education for the fiscal years designated.  
  8.36     Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
  9.1   grants under Minnesota Statutes, section 134.355: 
  9.2        $8,072,000 $8,312,000     .....     2004 
  9.3        $8,570,000     .....     2005 
  9.4      The 2004 appropriation includes $1,456,000 for 2003 and 
  9.5   $6,616,000 $6,856,000 for 2004. 
  9.6      The 2005 appropriation includes $1,654,000 $1,714,000 for 
  9.7   2004 and $6,916,000 $6,856,000 for 2005. 
  9.8      Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
  9.9   regional library telecommunications aid under Minnesota 
  9.10  Statutes, section 134.355: 
  9.11       $1,200,000 $960,000     .....     2004
  9.12       $1,200,000     .....     2005
  9.13     The 2004 appropriation includes $960,000 for 2004. 
  9.14     The 2005 appropriation includes $240,000 for 2004 and 
  9.15  $960,000 for 2005. 
  9.16     Subd. 4.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
  9.17  grants according to Minnesota Statutes, sections 134.353 and 
  9.18  134.354, to multicounty, multitype library systems: 
  9.19       $876,000       .....     2004 
  9.20       $903,000       .....     2005 
  9.21     The 2004 appropriation includes $153,000 for 2003 and 
  9.22  $723,000 for 2004. 
  9.23     The 2005 appropriation includes $180,000 for 2004 and 
  9.24  $723,000 for 2005.  
  9.25     Subd. 5.  [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 
  9.26  licenses to on-line databases selected in cooperation with the 
  9.27  higher education services office for school media centers, 
  9.28  public libraries, state government agency libraries, and public 
  9.29  or private college or university libraries: 
  9.30        $400,000     .....     2004 
  9.31        $400,000     .....     2005 
  9.32     Any balance in the first year does not cancel but is 
  9.33  available in the second year. 
  9.34                 G.  EARLY CHILDHOOD FAMILY SUPPORT
  9.35     Sec. 26.  Laws 2003, First Special Session chapter 9, 
  9.36  article 7, section 11, subdivision 3, is amended to read: 
 10.1      Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 10.2   childhood family education aid under Minnesota Statutes, section 
 10.3   124D.135: 
 10.4        $19,675,000 $19,079,000     .....     2004 
 10.5        $15,129,000 $14,407,000     .....     2005 
 10.6      The 2004 appropriation includes $3,239,000 for 2003 and 
 10.7   $16,436,000 $15,840,000 for 2004.  
 10.8      The 2005 appropriation includes $4,109,000 $3,959,000 for 
 10.9   2004 and $11,020,000 $10,448,000 for 2005.  
 10.10                           H.  PREVENTION
 10.11     Sec. 27.  Laws 2003, First Special Session chapter 9, 
 10.12  article 8, section 7, subdivision 2, is amended to read: 
 10.13     Subd. 2.  [COMMUNITY EDUCATION AID.] For community 
 10.14  education aid under Minnesota Statutes, section 124D.20: 
 10.15       $5,495,000 $5,351,000     .....     2004 
 10.16       $3,406,000 $3,137,000     .....     2005 
 10.17     The 2004 appropriation includes $956,000 for 2003 and 
 10.18  $4,539,000 $4,395,000 for 2004.  
 10.19     The 2005 appropriation includes $1,134,000 $1,098,000 for 
 10.20  2004 and $2,272,000 $2,039,000 for 2005.  
 10.21     Sec. 28.  Laws 2003, First Special Session chapter 9, 
 10.22  article 8, section 7, subdivision 5, is amended to read: 
 10.23     Subd. 5.  [SCHOOL-AGE CARE REVENUE.] For extended day care 
 10.24  aid under Minnesota Statutes, section 124D.22: 
 10.25       $41,000 $40,000     .....     2004 
 10.26       $22,000 $24,000     .....     2005
 10.27     The 2004 appropriation includes $14,000 for 2003 and 
 10.28  $27,000 $26,000 for 2004. 
 10.29     The 2005 appropriation includes $6,000 for 2004 and $16,000 
 10.30  $18,000 for 2005. 
 10.31             I.  SELF-SUFFICIENCY AND LIFELONG LEARNING
 10.32     Sec. 29.  Laws 2003, First Special Session chapter 9, 
 10.33  article 9, section 9, subdivision 2, is amended to read: 
 10.34     Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
 10.35  education aid under Minnesota Statutes, section 124D.52, in 
 10.36  fiscal year 2004 and Minnesota Statutes, section 124D.531, in 
 11.1   fiscal year 2005:  
 11.2        $33,153,000 $33,014,000     .....     2004 
 11.3        $35,823,000 $35,808,000     .....     2005 
 11.4      The 2004 appropriation includes $5,905,000 $5,827,000 for 
 11.5   2003 and $27,248,000 $27,187,000 for 2004.  
 11.6      The 2005 appropriation includes $6,811,000 $6,796,000 for 
 11.7   2004 and $29,012,000 for 2005.  
 11.8      Sec. 30.  [EFFECTIVE DATE.] 
 11.9      Sections 1 to 29 are effective the day following final 
 11.10  enactment. 
 11.11                             ARTICLE 2
 11.12         A.  HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS
 11.13     Section 1.  Laws 2003, First Special Session chapter 14, 
 11.14  article 13C, section 1, is amended to read: 
 11.15  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS FORECAST 
 11.16  ADJUSTMENTS.] 
 11.17     The sums shown in the columns marked "APPROPRIATIONS" are 
 11.18  appropriated from the general fund, or any other fund named, to 
 11.19  the agencies and for the purposes specified in the sections of 
 11.20  this article, to be available for the fiscal years indicated for 
 11.21  each purpose.  The figures "2004" and "2005" where used in this 
 11.22  article, mean that the appropriation or appropriations listed 
 11.23  under them are available for the fiscal year ending June 30, 
 11.24  2004, or June 30, 2005, respectively.  Where a dollar amount 
 11.25  appears in parentheses, it means a reduction of an appropriation.
 11.26                          SUMMARY BY FUND
 11.27                                                       BIENNIAL
 11.28                             2004          2005           TOTAL
 11.29  General            $3,765,212,000 $3,727,319,000 $7,492,531,000
 11.30                     $3,500,860,000 $3,746,520,000 $7,247,380,000
 11.31  State Government
 11.32  Special Revenue        45,337,000     45,104,000     90,441,000
 11.33  Health Care 
 11.34  Access                294,090,000    308,525,000    602,615,000
 11.35                        280,060,000    308,609,000    588,669,000
 11.36  Federal TANF          261,552,000    270,364,000    531,916,000
 11.37                        276,425,000    276,363,000    552,788,000
 11.38  Lottery Prize 
 12.1   Fund                    1,556,000      1,556,000      3,112,000
 12.2   Special Revenue         3,340,000      3,340,000      6,680,000
 12.3   TOTAL              $4,371,087,000 $4,356,208,000 $8,727,295,000
 12.4                      $4,107,578,000 $4,381,492,000 $8,489,070,000
 12.5                                              APPROPRIATIONS 
 12.6                                          Available for the Year 
 12.7                                              Ending June 30 
 12.8                                             2004         2005 
 12.9      Sec. 2.  Laws 2003, First Special Session chapter 14, 
 12.10  article 13C, section 2, subdivision 1, is amended to read: 
 12.11  Subdivision 1.  Total
 12.12  Appropriation                     $4,111,558,000 $4,110,496,000
 12.13                                    $3,848,049,000 $4,135,780,000
 12.14                Summary by Fund
 12.15  General           3,566,163,000 3,541,854,000
 12.16                    3,301,811,000 3,561,055,000
 12.17  State Government 
 12.18  Special Revenue         534,000       534,000
 12.19  Health Care
 12.20  Access              287,753,000   302,188,000
 12.21                      273,723,000   302,272,000
 12.22  Federal TANF        255,552,000   264,364,000
 12.23                      270,425,000   270,363,000
 12.24  Lottery Cash
 12.25  Flow                  1,556,000     1,556,000
 12.26  [FEDERAL CONTINGENCY APPROPRIATION.] 
 12.27  (a) Any additional Federal Medicaid 
 12.28  funds made available under title IV of 
 12.29  the federal Jobs and Growth Tax Relief 
 12.30  Reconciliation Act of 2003 are 
 12.31  appropriated to the commissioner of 
 12.32  human services for use in the state's 
 12.33  medical assistance and MinnesotaCare 
 12.34  programs.  The commissioners of human 
 12.35  services and finance shall report to 
 12.36  the legislative advisory committee on 
 12.37  the additional federal Medicaid 
 12.38  matching funds that will be available 
 12.39  to the state. 
 12.40  (b) Contingent upon Because of the 
 12.41  availability of these funds, the 
 12.42  following policies shall become 
 12.43  effective and necessary funds are 
 12.44  appropriated for those purposes: 
 12.45  (1) medical assistance and 
 12.46  MinnesotaCare eligibility and local 
 12.47  financial participation changes 
 12.48  provided for in this act may be 
 12.49  implemented prior to September 2, 2003, 
 12.50  or may be delayed as necessary to 
 12.51  maximize the use of federal funds 
 13.1   received under title IV of the Jobs and 
 13.2   Growth Tax Relief Reconciliation Act of 
 13.3   2003; 
 13.4   (2) the aggregate cap on the services 
 13.5   identified in Minnesota Statutes, 
 13.6   section 256L.035, paragraph (a), clause 
 13.7   (3), shall be increased from $2,000 to 
 13.8   $5,000.  This increase shall expire at 
 13.9   the end of fiscal year 2007.  Funds may 
 13.10  be transferred from the general fund to 
 13.11  the health care access fund as 
 13.12  necessary to implement this provision; 
 13.13  and 
 13.14  (3) the following payment shifts shall 
 13.15  not be implemented: 
 13.16  (i) MFIP payment shift found in 
 13.17  subdivision 11; 
 13.18  (ii) the county payment shift found in 
 13.19  subdivision 1; and 
 13.20  (iii) the delay in medical assistance 
 13.21  and general assistance medical care 
 13.22  fee-for-service payments found in 
 13.23  subdivision 6. 
 13.24  (c) Notwithstanding section 14, 
 13.25  paragraphs (a) and (b) shall expire 
 13.26  June 30, 2007. 
 13.27  [RECEIPTS FOR SYSTEMS PROJECTS.] 
 13.28  Appropriations and federal receipts for 
 13.29  information system projects for MAXIS, 
 13.30  PRISM, MMIS, and SSIS must be deposited 
 13.31  in the state system account authorized 
 13.32  in Minnesota Statutes, section 
 13.33  256.014.  Money appropriated for 
 13.34  computer projects approved by the 
 13.35  Minnesota office of technology, funded 
 13.36  by the legislature, and approved by the 
 13.37  commissioner of finance may be 
 13.38  transferred from one project to another 
 13.39  and from development to operations as 
 13.40  the commissioner of human services 
 13.41  considers necessary.  Any unexpended 
 13.42  balance in the appropriation for these 
 13.43  projects does not cancel but is 
 13.44  available for ongoing development and 
 13.45  operations. 
 13.46  [GIFTS.] Notwithstanding Minnesota 
 13.47  Statutes, chapter 7, the commissioner 
 13.48  may accept on behalf of the state 
 13.49  additional funding from sources other 
 13.50  than state funds for the purpose of 
 13.51  financing the cost of assistance 
 13.52  program grants or nongrant 
 13.53  administration.  All additional funding 
 13.54  is appropriated to the commissioner for 
 13.55  use as designated by the grantor of 
 13.56  funding. 
 13.57  [SYSTEMS CONTINUITY.] In the event of 
 13.58  disruption of technical systems or 
 13.59  computer operations, the commissioner 
 13.60  may use available grant appropriations 
 13.61  to ensure continuity of payments for 
 13.62  maintaining the health, safety, and 
 14.1   well-being of clients served by 
 14.2   programs administered by the department 
 14.3   of human services.  Grant funds must be 
 14.4   used in a manner consistent with the 
 14.5   original intent of the appropriation. 
 14.6   [NONFEDERAL SHARE TRANSFERS.] The 
 14.7   nonfederal share of activities for 
 14.8   which federal administrative 
 14.9   reimbursement is appropriated to the 
 14.10  commissioner may be transferred to the 
 14.11  special revenue fund. 
 14.12  [TANF FUNDS APPROPRIATED TO OTHER 
 14.13  ENTITIES.] Any expenditures from the 
 14.14  TANF block grant shall be expended in 
 14.15  accordance with the requirements and 
 14.16  limitations of part A of title IV of 
 14.17  the Social Security Act, as amended, 
 14.18  and any other applicable federal 
 14.19  requirement or limitation.  Prior to 
 14.20  any expenditure of these funds, the 
 14.21  commissioner shall assure that funds 
 14.22  are expended in compliance with the 
 14.23  requirements and limitations of federal 
 14.24  law and that any reporting requirements 
 14.25  of federal law are met.  It shall be 
 14.26  the responsibility of any entity to 
 14.27  which these funds are appropriated to 
 14.28  implement a memorandum of understanding 
 14.29  with the commissioner that provides the 
 14.30  necessary assurance of compliance prior 
 14.31  to any expenditure of funds.  The 
 14.32  commissioner shall receipt TANF funds 
 14.33  appropriated to other state agencies 
 14.34  and coordinate all related interagency 
 14.35  accounting transactions necessary to 
 14.36  implement these appropriations.  
 14.37  Unexpended TANF funds appropriated to 
 14.38  any state, local, or nonprofit entity 
 14.39  cancel at the end of the state fiscal 
 14.40  year unless appropriating language 
 14.41  permits otherwise. 
 14.42  [TANF FUNDS TRANSFERRED TO OTHER 
 14.43  FEDERAL GRANTS.] The commissioner must 
 14.44  authorize transfers from TANF to other 
 14.45  federal block grants so that funds are 
 14.46  available to meet the annual 
 14.47  expenditure needs as appropriated.  
 14.48  Transfers may be authorized prior to 
 14.49  the expenditure year with the agreement 
 14.50  of the receiving entity.  Transferred 
 14.51  funds must be expended in the year for 
 14.52  which the funds were appropriated 
 14.53  unless appropriation language permits 
 14.54  otherwise.  In accelerating transfer 
 14.55  authorizations, the commissioner must 
 14.56  aim to preserve the future potential 
 14.57  transfer capacity from TANF to other 
 14.58  block grants. 
 14.59  [TANF MAINTENANCE OF EFFORT.] (a) In 
 14.60  order to meet the basic maintenance of 
 14.61  effort (MOE) requirements of the TANF 
 14.62  block grant specified under Code of 
 14.63  Federal Regulations, title 45, section 
 14.64  263.1, the commissioner may only report 
 14.65  nonfederal money expended for allowable 
 14.66  activities listed in the following 
 14.67  clauses as TANF/MOE expenditures: 
 15.1   (1) MFIP cash, diversionary work 
 15.2   program, and food assistance benefits 
 15.3   under Minnesota Statutes, chapter 256J; 
 15.4   (2) the child care assistance programs 
 15.5   under Minnesota Statutes, sections 
 15.6   119B.03 and 119B.05, and county child 
 15.7   care administrative costs under 
 15.8   Minnesota Statutes, section 119B.15; 
 15.9   (3) state and county MFIP 
 15.10  administrative costs under Minnesota 
 15.11  Statutes, chapters 256J and 256K; 
 15.12  (4) state, county, and tribal MFIP 
 15.13  employment services under Minnesota 
 15.14  Statutes, chapters 256J and 256K; 
 15.15  (5) expenditures made on behalf of 
 15.16  noncitizen MFIP recipients who qualify 
 15.17  for the medical assistance without 
 15.18  federal financial participation program 
 15.19  under Minnesota Statutes, section 
 15.20  256B.06, subdivision 4, paragraphs (d), 
 15.21  (e), and (j); and 
 15.22  (6) qualifying working family credit 
 15.23  expenditures under Minnesota Statutes, 
 15.24  section 290.0671. 
 15.25  (b) The commissioner shall ensure that 
 15.26  sufficient qualified nonfederal 
 15.27  expenditures are made each year to meet 
 15.28  the state's TANF/MOE requirements.  For 
 15.29  the activities listed in paragraph (a), 
 15.30  clauses (2) to (6), the commissioner 
 15.31  may only report expenditures that are 
 15.32  excluded from the definition of 
 15.33  assistance under Code of Federal 
 15.34  Regulations, title 45, section 260.31. 
 15.35  (c) By August 31 of each year, the 
 15.36  commissioner shall make a preliminary 
 15.37  calculation to determine the likelihood 
 15.38  that the state will meet its annual 
 15.39  federal work participation requirement 
 15.40  under Code of Federal Regulations, 
 15.41  title 45, sections 261.21 and 261.23, 
 15.42  after adjustment for any caseload 
 15.43  reduction credit under Code of Federal 
 15.44  Regulations, title 45, section 261.41.  
 15.45  If the commissioner determines that the 
 15.46  state will meet its federal work 
 15.47  participation rate for the federal 
 15.48  fiscal year ending that September, the 
 15.49  commissioner may reduce the expenditure 
 15.50  under paragraph (a), clause (1), to the 
 15.51  extent allowed under Code of Federal 
 15.52  Regulations, title 45, section 
 15.53  263.1(a)(2). 
 15.54  (d) For fiscal years beginning with 
 15.55  state fiscal year 2003, the 
 15.56  commissioner shall assure that the 
 15.57  maintenance of effort used by the 
 15.58  commissioner of finance for the 
 15.59  February and November forecasts 
 15.60  required under Minnesota Statutes, 
 15.61  section 16A.103, contains expenditures 
 15.62  under paragraph (a), clause (1), equal 
 15.63  to at least 25 percent of the total 
 16.1   required under Code of Federal 
 16.2   Regulations, title 45, section 263.1. 
 16.3   (e) If nonfederal expenditures for the 
 16.4   programs and purposes listed in 
 16.5   paragraph (a) are insufficient to meet 
 16.6   the state's TANF/MOE requirements, the 
 16.7   commissioner shall recommend additional 
 16.8   allowable sources of nonfederal 
 16.9   expenditures to the legislature, if the 
 16.10  legislature is or will be in session to 
 16.11  take action to specify additional 
 16.12  sources of nonfederal expenditures for 
 16.13  TANF/MOE before a federal penalty is 
 16.14  imposed.  The commissioner shall 
 16.15  otherwise provide notice to the 
 16.16  legislative commission on planning and 
 16.17  fiscal policy under paragraph (g). 
 16.18  (f) If the commissioner uses authority 
 16.19  granted under section 11, or similar 
 16.20  authority granted by a subsequent 
 16.21  legislature, to meet the state's 
 16.22  TANF/MOE requirement in a reporting 
 16.23  period, the commissioner shall inform 
 16.24  the chairs of the appropriate 
 16.25  legislative committees about all 
 16.26  transfers made under that authority for 
 16.27  this purpose. 
 16.28  (g) If the commissioner determines that 
 16.29  nonfederal expenditures under paragraph 
 16.30  (a) are insufficient to meet TANF/MOE 
 16.31  expenditure requirements, and if the 
 16.32  legislature is not or will not be in 
 16.33  session to take timely action to avoid 
 16.34  a federal penalty, the commissioner may 
 16.35  report nonfederal expenditures from 
 16.36  other allowable sources as TANF/MOE 
 16.37  expenditures after the requirements of 
 16.38  this paragraph are met.  The 
 16.39  commissioner may report nonfederal 
 16.40  expenditures in addition to those 
 16.41  specified under paragraph (a) as 
 16.42  nonfederal TANF/MOE expenditures, but 
 16.43  only ten days after the commissioner of 
 16.44  finance has first submitted the 
 16.45  commissioner's recommendations for 
 16.46  additional allowable sources of 
 16.47  nonfederal TANF/MOE expenditures to the 
 16.48  members of the legislative commission 
 16.49  on planning and fiscal policy for their 
 16.50  review. 
 16.51  (h) The commissioner of finance shall 
 16.52  not incorporate any changes in federal 
 16.53  TANF expenditures or nonfederal 
 16.54  expenditures for TANF/MOE that may 
 16.55  result from reporting additional 
 16.56  allowable sources of nonfederal 
 16.57  TANF/MOE expenditures under the interim 
 16.58  procedures in paragraph (g) into the 
 16.59  February or November forecasts required 
 16.60  under Minnesota Statutes, section 
 16.61  16A.103, unless the commissioner of 
 16.62  finance has approved the additional 
 16.63  sources of expenditures under paragraph 
 16.64  (g). 
 16.65  (i) Minnesota Statutes, section 
 16.66  256.011, subdivision 3, which requires 
 17.1   that federal grants or aids secured or 
 17.2   obtained under that subdivision be used 
 17.3   to reduce any direct appropriations 
 17.4   provided by law, do not apply if the 
 17.5   grants or aids are federal TANF funds. 
 17.6   (j) Notwithstanding section 14, 
 17.7   paragraph (a), clauses (1) to (6), and 
 17.8   paragraphs (b) to (j) expire June 30, 
 17.9   2007. 
 17.10  [WORKING FAMILY CREDIT EXPENDITURES AS 
 17.11  TANF MOE.] The commissioner may claim 
 17.12  as TANF maintenance of effort up to the 
 17.13  following amounts of working family 
 17.14  credit expenditures for the following 
 17.15  fiscal years: 
 17.16  (1) fiscal year 2004, $7,013,000; 
 17.17  (2) fiscal year 2005, $25,133,000; 
 17.18  (3) fiscal year 2006, $6,942,000; and 
 17.19  (4) fiscal year 2007, $6,707,000. 
 17.20  [FISCAL YEAR 2003 APPROPRIATIONS 
 17.21  CARRYFORWARD.] Effective the day 
 17.22  following final enactment, 
 17.23  notwithstanding Minnesota Statutes, 
 17.24  section 16A.28, or any other law to the 
 17.25  contrary, state agencies and 
 17.26  constitutional offices may carry 
 17.27  forward unexpended and unencumbered 
 17.28  nongrant operating balances from fiscal 
 17.29  year 2003 general fund appropriations 
 17.30  into fiscal year 2004 to offset general 
 17.31  budget reductions. 
 17.32  [TRANSFER OF GRANT BALANCES.] Effective 
 17.33  the day following final enactment, the 
 17.34  commissioner of human services, with 
 17.35  the approval of the commissioner of 
 17.36  finance and after notification of the 
 17.37  chair of the senate health, human 
 17.38  services and corrections budget 
 17.39  division and the chair of the house of 
 17.40  representatives health and human 
 17.41  services finance committee, may 
 17.42  transfer unencumbered appropriation 
 17.43  balances for the biennium ending June 
 17.44  30, 2003, in fiscal year 2003 among the 
 17.45  MFIP, MFIP child care assistance under 
 17.46  Minnesota Statutes, section 119B.05, 
 17.47  general assistance, general assistance 
 17.48  medical care, medical assistance, 
 17.49  Minnesota supplemental aid, and group 
 17.50  residential housing programs, and the 
 17.51  entitlement portion of the chemical 
 17.52  dependency consolidated treatment fund, 
 17.53  and between fiscal years of the 
 17.54  biennium. 
 17.55  [TANF APPROPRIATION CANCELLATION.] 
 17.56  Notwithstanding the provisions of Laws 
 17.57  2000, chapter 488, article 1, section 
 17.58  16, any prior appropriations of TANF 
 17.59  funds to the department of trade and 
 17.60  economic development or to the job 
 17.61  skills partnership board or any 
 17.62  transfers of TANF funds from another 
 18.1   agency to the department of trade and 
 18.2   economic development or to the job 
 18.3   skills partnership board are not 
 18.4   available until expended, and if 
 18.5   unobligated as of June 30, 2003, these 
 18.6   appropriations or transfers shall 
 18.7   cancel to the TANF fund. 
 18.8   [SHIFT COUNTY PAYMENT.] The 
 18.9   commissioner shall make up to 100 
 18.10  percent of the calendar year 2005 
 18.11  payments to counties for developmental 
 18.12  disabilities semi-independent living 
 18.13  services grants, developmental 
 18.14  disabilities family support grants, and 
 18.15  adult mental health grants from fiscal 
 18.16  year 2006 appropriations.  This is a 
 18.17  onetime payment shift.  Calendar year 
 18.18  2006 and future payments for these 
 18.19  grants are not affected by this shift.  
 18.20  This provision expires June 30, 2006. 
 18.21  [CAPITATION RATE INCREASE.] Of the 
 18.22  health care access fund appropriations 
 18.23  to the University of Minnesota in the 
 18.24  higher education omnibus appropriation 
 18.25  bill, $2,157,000 in fiscal year 2004 
 18.26  and $2,157,000 in fiscal year 2005 are 
 18.27  to be used to increase the capitation 
 18.28  payments under Minnesota Statutes, 
 18.29  section 256B.69.  Notwithstanding the 
 18.30  provisions of section 14, this 
 18.31  provision shall not expire. 
 18.32     Sec. 3.  Laws 2003, First Special Session chapter 14, 
 18.33  article 13C, section 2, subdivision 3, is amended to read: 
 18.34  Subd. 3.  Revenue and Pass-Through 
 18.35  Federal TANF         55,855,000    53,315,000
 18.36                       56,643,000    57,275,000
 18.37  [TANF TRANSFER TO SOCIAL SERVICES BLOCK 
 18.38  GRANT.] $3,137,000 in fiscal year 2005 
 18.39  is appropriated to the commissioner for 
 18.40  the purposes of providing services for 
 18.41  families with children whose incomes 
 18.42  are at or below 200 percent of the 
 18.43  federal poverty guidelines.  The 
 18.44  commissioner shall authorize a 
 18.45  sufficient transfer of funds from the 
 18.46  state's federal TANF block grant to the 
 18.47  state's federal social services block 
 18.48  grant to meet this appropriation.  The 
 18.49  funds shall be distributed to counties 
 18.50  for the children and community services 
 18.51  grant according to the formula for the 
 18.52  state appropriations in Minnesota 
 18.53  Statutes, chapter 256M. 
 18.54  [TANF FUNDS FOR FISCAL YEAR 2006 AND 
 18.55  FISCAL YEAR 2007 REFINANCING.] 
 18.56  $12,692,000 $6,692,000 in fiscal year 
 18.57  2006 and $9,192,000 $3,192,000 in 
 18.58  fiscal year 2007 in TANF funds are 
 18.59  available to the commissioner to 
 18.60  replace general funds in the amount 
 18.61  of $12,692,000 $6,692,000 in fiscal 
 18.62  year 2006 and $9,192,000 $3,192,000 in 
 19.1   fiscal year 2007 in expenditures that 
 19.2   may be counted toward TANF maintenance 
 19.3   of effort requirements or as an 
 19.4   allowable TANF expenditure. 
 19.5   [ADJUSTMENTS IN TANF TRANSFER TO CHILD 
 19.6   CARE AND DEVELOPMENT FUND.] Transfers 
 19.7   of TANF to the child care development 
 19.8   fund for the purposes of MFIP child 
 19.9   care assistance shall be reduced by 
 19.10  $116,000 in fiscal year 2004 and shall 
 19.11  be increased by $1,976,000 in fiscal 
 19.12  year 2005. 
 19.13     Sec. 4.  Laws 2003, First Special Session chapter 14, 
 19.14  article 13C, section 2, subdivision 6, is amended to read: 
 19.15  Subd. 6.  Basic Health Care Grants 
 19.16                Summary by Fund
 19.17  General           1,499,941,000 1,533,016,000
 19.18                    1,290,454,000 1,475,996,000
 19.19  Health Care Access  268,151,000   282,605,000
 19.20                      254,121,000   282,689,000
 19.21  [UPDATING FEDERAL POVERTY GUIDELINES.] 
 19.22  Annual updates to the federal poverty 
 19.23  guidelines are effective each July 1, 
 19.24  following publication by the United 
 19.25  States Department of Health and Human 
 19.26  Services for health care programs under 
 19.27  Minnesota Statutes, chapters 256, 256B, 
 19.28  256D, and 256L. 
 19.29  The amounts that may be spent from this 
 19.30  appropriation for each purpose are as 
 19.31  follows: 
 19.32  (a) MinnesotaCare Grants 
 19.33  Health Care Access 267,401,000   281,855,000
 19.34                     253,371,000   281,939,000
 19.35  [MINNESOTACARE FEDERAL RECEIPTS.] 
 19.36  Receipts received as a result of 
 19.37  federal participation pertaining to 
 19.38  administrative costs of the Minnesota 
 19.39  health care reform waiver shall be 
 19.40  deposited as nondedicated revenue in 
 19.41  the health care access fund.  Receipts 
 19.42  received as a result of federal 
 19.43  participation pertaining to grants 
 19.44  shall be deposited in the federal fund 
 19.45  and shall offset health care access 
 19.46  funds for payments to providers. 
 19.47  [MINNESOTACARE FUNDING.] The 
 19.48  commissioner may expend money 
 19.49  appropriated from the health care 
 19.50  access fund for MinnesotaCare in either 
 19.51  fiscal year of the biennium. 
 19.52  (b) MA Basic Health Care Grants - 
 19.53  Families and Children 
 20.1   General             568,254,000   582,161,000
 20.2                       427,769,000   489,545,000
 20.3   [SERVICES TO PREGNANT WOMEN.] The 
 20.4   commissioner shall use available 
 20.5   federal money for the State-Children's 
 20.6   Health Insurance Program for medical 
 20.7   assistance services provided to 
 20.8   pregnant women who are not otherwise 
 20.9   eligible for federal financial 
 20.10  participation beginning in fiscal year 
 20.11  2003.  This federal money shall be 
 20.12  deposited in the federal fund and shall 
 20.13  offset general funds for payments to 
 20.14  providers.  Notwithstanding section 14, 
 20.15  this paragraph shall not expire. 
 20.16  [MANAGED CARE RATE INCREASE.] (a) 
 20.17  Effective January 1, 2004, the 
 20.18  commissioner of human services shall 
 20.19  increase the total payments to managed 
 20.20  care plans under Minnesota Statutes, 
 20.21  section 256B.69, by an amount equal to 
 20.22  the cost increases to the managed care 
 20.23  plans from by the elimination of: (1) 
 20.24  the exemption from the taxes imposed 
 20.25  under Minnesota Statutes, section 
 20.26  297I.05, subdivision 5, for premiums 
 20.27  paid by the state for medical 
 20.28  assistance, general assistance medical 
 20.29  care, and the MinnesotaCare program; 
 20.30  and (2) the exemption of gross revenues 
 20.31  subject to the taxes imposed under 
 20.32  Minnesota Statutes, sections 295.50 to 
 20.33  295.57, for payments paid by the state 
 20.34  for services provided under medical 
 20.35  assistance, general assistance medical 
 20.36  care, and the MinnesotaCare program.  
 20.37  Any increase based on clause (2) must 
 20.38  be reflected in provider rates paid by 
 20.39  the managed care plan unless the 
 20.40  managed care plan is a staff model 
 20.41  health plan company. 
 20.42  (b) The commissioner of human services 
 20.43  shall increase by two percent the 
 20.44  fee-for-service payments under medical 
 20.45  assistance, general assistance medical 
 20.46  care, and the MinnesotaCare program for 
 20.47  services subject to the hospital, 
 20.48  surgical center, or health care 
 20.49  provider taxes under Minnesota 
 20.50  Statutes, sections 295.50 to 295.57, 
 20.51  effective for services rendered on or 
 20.52  after January 1, 2004.  
 20.53  (c) The commissioner of finance shall 
 20.54  transfer from the health care access 
 20.55  fund to the general fund the following 
 20.56  amounts in the fiscal years indicated:  
 20.57  2004, $16,587,000; 2005, $46,322,000; 
 20.58  2006, $49,413,000; and 2007, 
 20.59  $52,659,000. 
 20.60  (d) For fiscal years after 2007, the 
 20.61  commissioner of finance shall transfer 
 20.62  from the health care access fund to the 
 20.63  general fund an amount equal to the 
 20.64  revenue collected by the commissioner 
 20.65  of revenue on the following:  
 21.1   (1) gross revenues received by 
 21.2   hospitals, surgical centers, and health 
 21.3   care providers as payments for services 
 21.4   provided under medical assistance, 
 21.5   general assistance medical care, and 
 21.6   the MinnesotaCare program, including 
 21.7   payments received directly from the 
 21.8   state or from a prepaid plan, under 
 21.9   Minnesota Statutes, sections 295.50 to 
 21.10  295.57; and 
 21.11  (2) premiums paid by the state under 
 21.12  medical assistance, general assistance 
 21.13  medical care, and the MinnesotaCare 
 21.14  program under Minnesota Statutes, 
 21.15  section 297I.05, subdivision 5.  
 21.16  The commissioner of finance shall 
 21.17  monitor and adjust if necessary the 
 21.18  amount transferred each fiscal year 
 21.19  from the health care access fund to the 
 21.20  general fund to ensure that the amount 
 21.21  transferred equals the tax revenue 
 21.22  collected for the items described in 
 21.23  clauses (1) and (2) for that fiscal 
 21.24  year. 
 21.25  (e) Notwithstanding section 14, these 
 21.26  provisions shall not expire. 
 21.27  (c) MA Basic Health Care Grants - Elderly 
 21.28  and Disabled 
 21.29  General             695,421,000   741,605,000
 21.30                      610,518,000   743,858,000
 21.31  [DELAY MEDICAL ASSISTANCE 
 21.32  FEE-FOR-SERVICE - ACUTE CARE.] The 
 21.33  following payments in fiscal year 2005 
 21.34  from the Medicaid Management 
 21.35  Information System that would otherwise 
 21.36  have been made to providers for medical 
 21.37  assistance and general assistance 
 21.38  medical care services shall be delayed 
 21.39  and included in the first payment in 
 21.40  fiscal year 2006: 
 21.41  (1) for hospitals, the last two 
 21.42  payments; and 
 21.43  (2) for nonhospital providers, the last 
 21.44  payment. 
 21.45  This payment delay shall not include 
 21.46  payments to skilled nursing facilities, 
 21.47  intermediate care facilities for mental 
 21.48  retardation, prepaid health plans, home 
 21.49  health agencies, personal care nursing 
 21.50  providers, and providers of only waiver 
 21.51  services.  The provisions of Minnesota 
 21.52  Statutes, section 16A.124, shall not 
 21.53  apply to these delayed payments.  
 21.54  Notwithstanding section 14, this 
 21.55  provision shall not expire. 
 21.56  [DEAF AND HARD-OF-HEARING SERVICES.] 
 21.57  If, after making reasonable efforts, 
 21.58  the service provider for mental health 
 21.59  services to persons who are deaf or 
 21.60  hearing impaired is not able to earn 
 22.1   $227,000 through participation in 
 22.2   medical assistance intensive 
 22.3   rehabilitation services in fiscal year 
 22.4   2005, the commissioner shall transfer 
 22.5   $227,000 minus medical assistance 
 22.6   earnings achieved by the grantee to 
 22.7   deaf and hard-of-hearing grants to 
 22.8   enable the provider to continue 
 22.9   providing services to eligible persons. 
 22.10  (d) General Assistance Medical Care 
 22.11  Grants 
 22.12  General             223,960,000   196,617,000
 22.13                      239,861,000   229,960,000
 22.14  (e) Health Care Grants - Other 
 22.15  Assistance 
 22.16  General               3,067,000     3,407,000
 22.17  Health Care Access      750,000       750,000
 22.18  [MINNESOTA PRESCRIPTION DRUG DEDICATED 
 22.19  FUND.] Of the general fund 
 22.20  appropriation, $284,000 in fiscal year 
 22.21  2005 is appropriated to the 
 22.22  commissioner for the prescription drug 
 22.23  dedicated fund established under the 
 22.24  prescription drug discount program. 
 22.25  [DENTAL ACCESS GRANTS CARRYOVER 
 22.26  AUTHORITY.] Any unspent portion of the 
 22.27  appropriation from the health care 
 22.28  access fund in fiscal years 2002 and 
 22.29  2003 for dental access grants under 
 22.30  Minnesota Statutes, section 256B.53, 
 22.31  shall not cancel but shall be allowed 
 22.32  to carry forward to be spent in the 
 22.33  biennium beginning July 1, 2003, for 
 22.34  these purposes. 
 22.35  [STOP-LOSS FUND ACCOUNT.] The 
 22.36  appropriation to the purchasing 
 22.37  alliance stop-loss fund account 
 22.38  established under Minnesota Statutes, 
 22.39  section 256.956, subdivision 2, for 
 22.40  fiscal years 2004 and 2005 shall only 
 22.41  be available for claim reimbursements 
 22.42  for qualifying enrollees who are 
 22.43  members of purchasing alliances that 
 22.44  meet the requirements described under 
 22.45  Minnesota Statutes, section 256.956, 
 22.46  subdivision 1, paragraph (f), clauses 
 22.47  (1), (2), and (3). 
 22.48  (f) Prescription Drug Program 
 22.49  General               9,239,000     9,226,000
 22.50  [PRESCRIPTION DRUG ASSISTANCE PROGRAM.] 
 22.51  Of the general fund appropriation, 
 22.52  $702,000 in fiscal year 2004 and 
 22.53  $887,000 in fiscal year 2005 are for 
 22.54  the commissioner to establish and 
 22.55  administer the prescription drug 
 22.56  assistance program through the 
 22.57  Minnesota board on aging. 
 22.58  [REBATE REVENUE RECAPTURE.] Any funds 
 23.1   received by the state from a drug 
 23.2   manufacturer due to errors in the 
 23.3   pharmaceutical pricing used by the 
 23.4   manufacturer in determining the 
 23.5   prescription drug rebate are 
 23.6   appropriated to the commissioner to 
 23.7   augment funding of the prescription 
 23.8   drug program established in Minnesota 
 23.9   Statutes, section 256.955. 
 23.10     Sec. 5.  Laws 2003, First Special Session chapter 14, 
 23.11  article 13C, section 2, subdivision 7, is amended to read: 
 23.12  Subd. 7.  Health Care Management 
 23.13                Summary by Fund
 23.14  General              24,845,000    26,199,000
 23.15                       24,834,000
 23.16  Health Care Access   14,522,000    14,533,000
 23.17  The amounts that may be spent from this 
 23.18  appropriation for each purpose are as 
 23.19  follows: 
 23.20  (a) Health Care Policy Administration 
 23.21  General               5,523,000     7,223,000
 23.22  Health Care Access    1,066,000     1,200,000
 23.23  [PAYMENT CODE STUDY.] Of this 
 23.24  appropriation, $345,000 each year is 
 23.25  for a study to determine the 
 23.26  appropriateness of eliminating 
 23.27  reimbursement for certain payment codes 
 23.28  under medical assistance, general 
 23.29  assistance medical care, or 
 23.30  MinnesotaCare.  As part of the study, 
 23.31  the commissioner shall also examine 
 23.32  covered services under the Minnesota 
 23.33  health care programs and make 
 23.34  recommendations on possible 
 23.35  modification of the services covered 
 23.36  under the program.  The commissioner 
 23.37  shall report to the legislature by 
 23.38  January 15, 2005, with an analysis of 
 23.39  the feasibility of this approach, a 
 23.40  list of codes, if any, to be eliminated 
 23.41  from the payment system, and estimates 
 23.42  of savings to be obtained from this 
 23.43  approach. 
 23.44  [TRANSFERS FROM HEALTH CARE ACCESS 
 23.45  FUND.] (a) Notwithstanding Minnesota 
 23.46  Statutes, section 295.581, to the 
 23.47  extent available resources in the 
 23.48  health care access fund exceed 
 23.49  expenditures in that fund during fiscal 
 23.50  years 2005 to 2007, the excess annual 
 23.51  funds shall be transferred from the 
 23.52  health care access fund to the general 
 23.53  fund on June 30 of fiscal years 2005, 
 23.54  2006, and 2007.  These transfers shall 
 23.55  not be reduced to accommodate 
 23.56  MinnesotaCare expansions.  The 
 23.57  estimated amounts to be transferred are:
 24.1   (1) in fiscal year 2005, $192,442,000; 
 24.2   (2) in fiscal year 2006, $52,943,000; 
 24.3   and 
 24.4   (3) in fiscal year 2007, $59,105,000. 
 24.5   These estimates shall be updated with 
 24.6   each forecast, but in no case shall the 
 24.7   transfers exceed the amounts listed in 
 24.8   clauses (1) to (3). 
 24.9   (b) The commissioner shall limit 
 24.10  transfers under paragraph (a) in order 
 24.11  to avoid implementation of Minnesota 
 24.12  Statutes, section 256L.02, subdivision 
 24.13  3, paragraph (b). 
 24.14  (c) For fiscal years 2004 to 2007, 
 24.15  MinnesotaCare shall be a forecasted 
 24.16  program and, if necessary, the 
 24.17  commissioner shall reduce transfers 
 24.18  under paragraph (a) to meet forecasted 
 24.19  expenditures. 
 24.20  (d) The department of human services in 
 24.21  recommending its 2007-2008 budget shall 
 24.22  consider the repayment of the amount 
 24.23  transferred in fiscal years 2006 and 
 24.24  2007 from the health care access fund 
 24.25  to the general fund to the health care 
 24.26  access fund. 
 24.27  (e) Notwithstanding section 14, this 
 24.28  section is in effect until June 30, 
 24.29  2007. 
 24.30  [MINNESOTACARE OUTREACH REIMBURSEMENT.] 
 24.31  Federal administrative reimbursement 
 24.32  resulting from MinnesotaCare outreach 
 24.33  is appropriated to the commissioner for 
 24.34  this activity. 
 24.35  [MINNESOTA SENIOR HEALTH OPTIONS 
 24.36  REIMBURSEMENT.] Federal administrative 
 24.37  reimbursement resulting from the 
 24.38  Minnesota senior health options project 
 24.39  is appropriated to the commissioner for 
 24.40  this activity. 
 24.41  [UTILIZATION REVIEW.] Federal 
 24.42  administrative reimbursement resulting 
 24.43  from prior authorization and inpatient 
 24.44  admission certification by a 
 24.45  professional review organization shall 
 24.46  be dedicated to the commissioner for 
 24.47  these purposes.  A portion of these 
 24.48  funds must be used for activities to 
 24.49  decrease unnecessary pharmaceutical 
 24.50  costs in medical assistance. 
 24.51  (b) Health Care Operations 
 24.52  General              19,322,000    18,976,000
 24.53                       19,311,000
 24.54  Health Care Access   13,456,000    13,333,000
 24.55  [PREPAID MEDICAL PROGRAMS.] For all 
 24.56  counties in which the PMAP program has 
 25.1   been operating for 12 or more months, 
 25.2   state funding for the nonfederal share 
 25.3   of prepaid medical assistance program 
 25.4   administration costs for county managed 
 25.5   care advocacy and enrollment operations 
 25.6   is eliminated.  State funding will 
 25.7   continue for these activities for 
 25.8   counties and tribes establishing new 
 25.9   PMAP programs for a maximum of 16 
 25.10  months (four months prior to beginning 
 25.11  PMAP enrollment and through the first 
 25.12  12 months of their PMAP program 
 25.13  operation).  Those counties operating 
 25.14  PMAP programs for less than 12 months 
 25.15  can continue to receive state funding 
 25.16  for advocacy and enrollment activities 
 25.17  through their first year of operation. 
 25.18     Sec. 6.  Laws 2003, First Special Session chapter 14, 
 25.19  article 13C, section 2, subdivision 9, is amended to read: 
 25.20  Subd. 9.  Continuing Care Grants 
 25.21                Summary by Fund
 25.22  General           1,504,933,000 1,490,958,000
 25.23                    1,448,029,000 1,567,392,000
 25.24  Lottery Prize Fund    1,408,000     1,408,000
 25.25  The amounts that may be spent from this 
 25.26  appropriation for each purpose are as 
 25.27  follows: 
 25.28  (a) Community Social Services
 25.29  General                 496,000       371,000
 25.30  (b) Aging and Adult Service Grant 
 25.31  General              12,998,000    13,951,000
 25.32  [LONG-TERM CARE PROGRAM REDUCTIONS.] 
 25.33  For the biennium ending June 30, 2005, 
 25.34  state funding for the following state 
 25.35  long-term care programs is reduced by 
 25.36  15 percent from the level of state 
 25.37  funding provided on June 30, 2003:  
 25.38  SAIL project grants under Minnesota 
 25.39  Statutes, section 256B.0917; senior 
 25.40  nutrition programs under Minnesota 
 25.41  Statutes, section 256.9752; foster 
 25.42  grandparents program under Minnesota 
 25.43  Statutes, section 256.976; retired 
 25.44  senior volunteer program under 
 25.45  Minnesota Statutes, section 256.9753; 
 25.46  and the senior companion program under 
 25.47  Minnesota Statutes, section 256.977. 
 25.48  (c) Deaf and Hard-of-hearing 
 25.49  Service Grants 
 25.50  General               1,719,000     1,490,000
 25.51  (d) Mental Health Grants 
 25.52  General              53,479,000    34,690,000
 25.53                                     46,551,000
 26.1   Lottery Prize Fund    1,408,000     1,408,000
 26.2   [RESTRUCTURING OF ADULT MENTAL HEALTH 
 26.3   SERVICES.] The commissioner may make 
 26.4   transfers that do not increase the 
 26.5   state share of costs to effectively 
 26.6   implement the restructuring of adult 
 26.7   mental health services.  
 26.8   [COMPULSIVE GAMBLING.] Of the 
 26.9   appropriation from the lottery prize 
 26.10  fund, $250,000 each year is for the 
 26.11  following purposes: 
 26.12  (1) $100,000 each year is for a grant 
 26.13  to the Southeast Asian Problem Gambling 
 26.14  Consortium.  The consortium must 
 26.15  provide statewide compulsive gambling 
 26.16  prevention and treatment services for 
 26.17  Lao, Hmong, Vietnamese, and Cambodian 
 26.18  families, adults, and adolescents.  The 
 26.19  appropriation in this clause shall not 
 26.20  become part of base level funding for 
 26.21  the biennium beginning July 1, 2005.  
 26.22  Any unencumbered balance of the 
 26.23  appropriation in the first year does 
 26.24  not cancel but is available for the 
 26.25  second year; and 
 26.26  (2) $150,000 each year is for a grant 
 26.27  to a compulsive gambling council 
 26.28  located in St. Louis county.  The 
 26.29  gambling council must provide a 
 26.30  statewide compulsive gambling 
 26.31  prevention and education project for 
 26.32  adolescents.  Any unencumbered balance 
 26.33  of the appropriation in the first year 
 26.34  of the biennium does not cancel but is 
 26.35  available for the second year. 
 26.36  (e) Community Support Grants 
 26.37                        12,523,000   9,093,000
 26.38                                    12,024,000
 26.39  [CENTERS FOR INDEPENDENT LIVING STUDY.] 
 26.40  The commissioner of human services, in 
 26.41  consultation with the commissioner of 
 26.42  economic security, the centers for 
 26.43  independent living, and consumer 
 26.44  representatives, shall study the 
 26.45  financing of the centers for 
 26.46  independent living authorized under 
 26.47  Minnesota Statutes, section 268A.11, 
 26.48  and make recommendations on options to 
 26.49  maximize federal financial 
 26.50  participation.  Study components shall 
 26.51  include: 
 26.52  (1) the demographics of individuals 
 26.53  served by the centers for independent 
 26.54  living; 
 26.55  (2) the range of services the centers 
 26.56  for independent living provide to these 
 26.57  individuals; 
 26.58  (3) other publicly funded services 
 26.59  received by individuals supported by 
 26.60  the centers; and 
 27.1   (4) strategies for maximizing federal 
 27.2   financial participation for eligible 
 27.3   activities carried out by centers for 
 27.4   independent living. 
 27.5   The commissioner shall report with 
 27.6   fiscal and programmatic recommendations 
 27.7   to the chairs of the appropriate house 
 27.8   of representatives and senate finance 
 27.9   and policy committees by January 15, 
 27.10  2004. 
 27.11  (f) Medical Assistance Long-Term 
 27.12  Care Waivers and Home Care Grants 
 27.13  General              659,211,000  718,665,000
 27.14                       624,631,000  748,189,000
 27.15  [RATE AND ALLOCATION DECREASES FOR 
 27.16  CONTINUING CARE PROGRAMS.] 
 27.17  Notwithstanding any law or rule to the 
 27.18  contrary, the commissioner of human 
 27.19  services shall decrease reimbursement 
 27.20  rates or reduce allocations to assure 
 27.21  the necessary reductions in state 
 27.22  spending for the providers or programs 
 27.23  listed in paragraphs (a) to (d).  The 
 27.24  decreases are effective for services 
 27.25  rendered on or after July 1, 2003. 
 27.26  (a) Effective July 1, 2003, the 
 27.27  commissioner shall reduce payment rates 
 27.28  for services and individual or service 
 27.29  limits by one percent.  The rate 
 27.30  decreases described in this section 
 27.31  must be applied to: 
 27.32  (1) home and community-based waivered 
 27.33  services for the elderly under 
 27.34  Minnesota Statutes, section 256B.0915; 
 27.35  (2) day training and habilitation 
 27.36  services for adults with mental 
 27.37  retardation or related conditions under 
 27.38  Minnesota Statutes, sections 252.40 to 
 27.39  252.46; 
 27.40  (3) the group residential housing 
 27.41  supplementary service rate under 
 27.42  Minnesota Statutes, section 256I.05, 
 27.43  subdivision 1a; 
 27.44  (4) chemical dependency residential and 
 27.45  nonresidential service rates under 
 27.46  Minnesota Statutes, section 245B.03; 
 27.47  (5) consumer support grants under 
 27.48  Minnesota Statutes, section 256.476; 
 27.49  and 
 27.50  (6) home and community-based services 
 27.51  for alternative care services under 
 27.52  Minnesota Statutes, section 256B.0913. 
 27.53  (b) The commissioner shall reduce 
 27.54  allocations made available to county 
 27.55  agencies for home and community-based 
 27.56  waivered services to assure a 
 27.57  one-percent reduction in state spending 
 27.58  for services rendered on or after July 
 28.1   1, 2003.  The commissioner shall apply 
 28.2   the allocation decreases described in 
 28.3   this section to: 
 28.4   (1) persons with mental retardation or 
 28.5   related conditions under Minnesota 
 28.6   Statutes, section 256B.501; 
 28.7   (2) waivered services under community 
 28.8   alternatives for disabled individuals 
 28.9   under Minnesota Statutes, section 
 28.10  256B.49; 
 28.11  (3) community alternative care waivered 
 28.12  services under Minnesota Statutes, 
 28.13  section 256B.49; and 
 28.14  (4) traumatic brain injury waivered 
 28.15  services under Minnesota Statutes, 
 28.16  section 256B.49. 
 28.17  County agencies will be responsible for 
 28.18  100 percent of any spending in excess 
 28.19  of the allocation made by the 
 28.20  commissioner.  Nothing in this section 
 28.21  shall be construed as reducing the 
 28.22  county's responsibility to offer and 
 28.23  make available feasible home and 
 28.24  community-based options to eligible 
 28.25  waiver recipients within the resources 
 28.26  allocated to them for that purpose. 
 28.27  (c) The commissioner shall reduce deaf 
 28.28  and hard-of-hearing grants by one 
 28.29  percent on July 1, 2003. 
 28.30  (d) Effective July 1, 2003, the 
 28.31  commissioner shall reduce payment rates 
 28.32  for each facility reimbursed under 
 28.33  Minnesota Statutes, section 256B.5012, 
 28.34  by decreasing the total operating 
 28.35  payment rate for intermediate care 
 28.36  facilities for the mentally retarded by 
 28.37  one percent.  For each facility, the 
 28.38  commissioner shall multiply the 
 28.39  adjustment by the total payment rate, 
 28.40  excluding the property-related payment 
 28.41  rate, in effect on June 30, 2003.  A 
 28.42  facility whose payment rates are 
 28.43  governed by closure agreements, 
 28.44  receivership agreements, or Minnesota 
 28.45  Rules, part 9553.0075, is not subject 
 28.46  to an adjustment otherwise taken under 
 28.47  this subdivision. 
 28.48  Notwithstanding section 14, these 
 28.49  adjustments shall not expire. 
 28.50  [REDUCE GROWTH IN MR/RC WAIVER.] The 
 28.51  commissioner shall reduce the growth in 
 28.52  the MR/RC waiver by not allocating the 
 28.53  300 additional diversion allocations 
 28.54  that are included in the February 2003 
 28.55  forecast for the fiscal years that 
 28.56  begin on July 1, 2003, and July 1, 2004.
 28.57  [MANAGE THE GROWTH IN THE TBI WAIVER.] 
 28.58  During the fiscal years beginning on 
 28.59  July 1, 2003, and July 1, 2004, the 
 28.60  commissioner shall allocate money for 
 28.61  home and community-based programs 
 29.1   covered under Minnesota Statutes, 
 29.2   section 256B.49, to assure a reduction 
 29.3   in state spending that is equivalent to 
 29.4   limiting the caseload growth of the TBI 
 29.5   waiver to 150 in each year of the 
 29.6   biennium.  Priorities for the 
 29.7   allocation of funds shall be for 
 29.8   individuals anticipated to be 
 29.9   discharged from institutional settings 
 29.10  or who are at imminent risk of a 
 29.11  placement in an institutional setting. 
 29.12  [TARGETED CASE MANAGEMENT FOR HOME CARE 
 29.13  RECIPIENTS.] Implementation of the 
 29.14  targeted case management benefit for 
 29.15  home care recipients, according to 
 29.16  Minnesota Statutes, section 256B.0621, 
 29.17  subdivisions 2, 3, 5, 6, 7, 9, and 10, 
 29.18  will be delayed until July 1, 2005. 
 29.19  [COMMON SERVICE MENU.] Implementation 
 29.20  of the common service menu option 
 29.21  within the home and community-based 
 29.22  waivers, according to Minnesota 
 29.23  Statutes, section 256B.49, subdivision 
 29.24  16, will be delayed until July 1, 2005. 
 29.25  [LIMITATION ON COMMUNITY ALTERNATIVES 
 29.26  FOR DISABLED INDIVIDUALS CASELOAD 
 29.27  GROWTH.] For the biennium ending June 
 29.28  30, 2005, the commissioner shall limit 
 29.29  the allocations made available in the 
 29.30  community alternatives for disabled 
 29.31  individuals waiver program in order not 
 29.32  to exceed average caseload growth of 95 
 29.33  per month from June 2003 program 
 29.34  levels, plus any additional 
 29.35  legislatively authorized program 
 29.36  growth.  The commissioner shall 
 29.37  allocate available resources to achieve 
 29.38  the following outcomes: 
 29.39  (1) the establishment of feasible and 
 29.40  viable alternatives for persons in 
 29.41  institutional or hospital settings to 
 29.42  relocate to home and community-based 
 29.43  settings; 
 29.44  (2) the availability of timely 
 29.45  assistance to persons at imminent risk 
 29.46  of institutional or hospital placement 
 29.47  or whose health and safety is at 
 29.48  immediate risk; and 
 29.49  (3) the maximum provision of essential 
 29.50  community supports to eligible persons 
 29.51  in need of and waiting for home and 
 29.52  community-based service alternatives.  
 29.53  The commissioner may reallocate 
 29.54  resources from one county or region to 
 29.55  another if available funding in that 
 29.56  county or region is not likely to be 
 29.57  spent and the reallocation is necessary 
 29.58  to achieve the outcomes specified in 
 29.59  this paragraph. 
 29.60  (g) Medical Assistance Long-term 
 29.61  Care Facilities Grants 
 29.62  General             543,999,000   514,483,000
 30.1                       513,763,000   536,321,000
 30.2   (h) Alternative Care Grants 
 30.3   General              75,206,000    66,351,000
 30.4   [ALTERNATIVE CARE TRANSFER.] Any money 
 30.5   allocated to the alternative care 
 30.6   program that is not spent for the 
 30.7   purposes indicated does not cancel but 
 30.8   shall be transferred to the medical 
 30.9   assistance account. 
 30.10  [ALTERNATIVE CARE APPROPRIATION.] The 
 30.11  commissioner may expend the money 
 30.12  appropriated for the alternative care 
 30.13  program for that purpose in either year 
 30.14  of the biennium. 
 30.15  [ALTERNATIVE CARE IMPLEMENTATION OF 
 30.16  CHANGES TO FEES AND ELIGIBILITY.] 
 30.17  Changes to Minnesota Statutes, section 
 30.18  256B.0913, subdivision 4, paragraph 
 30.19  (d), and subdivision 12, are effective 
 30.20  July 1, 2003, for all persons found 
 30.21  eligible for the alternative care 
 30.22  program on or after July 1, 2003.  All 
 30.23  recipients of alternative care funding 
 30.24  as of June 30, 2003, shall be subject 
 30.25  to Minnesota Statutes, section 
 30.26  256B.0913, subdivision 4, paragraph 
 30.27  (d), and subdivision 12, on the annual 
 30.28  reassessment and review of their 
 30.29  eligibility after July 1, 2003, but no 
 30.30  later than January 1, 2004. 
 30.31  (i) Group Residential Housing Grants 
 30.32  General              94,996,000    80,472,000
 30.33                       94,547,000    81,055,000
 30.34  [GROUP RESIDENTIAL HOUSING COSTS 
 30.35  REFINANCED.] (1) Effective July 1, 
 30.36  2004, the commissioner shall increase 
 30.37  the home and community-based service 
 30.38  rates and county allocations provided 
 30.39  to programs for persons with 
 30.40  disabilities established under section 
 30.41  1915(c) of the Social Security Act to 
 30.42  the extent that these programs will be 
 30.43  paying for the costs above the rate 
 30.44  established in Minnesota Statutes, 
 30.45  section 256I.05, subdivision 1. 
 30.46  (2) For persons in receipt of services 
 30.47  under Minnesota Statutes, section 
 30.48  256B.0915, who reside in licensed adult 
 30.49  foster care beds for which a 
 30.50  supplemental room and board payment was 
 30.51  being made under Minnesota Statutes, 
 30.52  section 256I.05, subdivision 1, 
 30.53  counties may request an exception to 
 30.54  the individual caps specified in 
 30.55  Minnesota Statutes, section 256B.0915, 
 30.56  subdivision 3, paragraph (b), not to 
 30.57  exceed the difference between the 
 30.58  individual cap and the client's monthly 
 30.59  service expenditures plus the amount of 
 30.60  the supplemental room and board rate.  
 30.61  The county must submit a request to 
 31.1   exceed the individual cap to the 
 31.2   commissioner for approval. 
 31.3   (j) Chemical Dependency
 31.4   Entitlement Grants 
 31.5   General              49,251,000    50,337,000
 31.6                        57,612,000    60,034,000
 31.7   (k) Chemical Dependency Nonentitlement 
 31.8   Grants 
 31.9   General               1,055,000     1,055,000
 31.10     Sec. 7.  Laws 2003, First Special Session chapter 14, 
 31.11  article 13C, section 2, subdivision 11, is amended to read: 
 31.12  Subd. 11.  Economic Support Grants 
 31.13                Summary by Fund
 31.14  General             122,647,000   117,198,000
 31.15                      124,697,000   116,985,000
 31.16  Federal TANF        199,009,000   207,224,000
 31.17                      212,844,000   209,264,000
 31.18  The amounts that may be spent from this 
 31.19  appropriation for each purpose are as 
 31.20  follows: 
 31.21  (a) Minnesota Family Investment Program 
 31.22  General              59,922,000   39,375,000
 31.23                       53,818,000   43,942,000
 31.24  Federal TANF        106,535,000   110,543,000
 31.25                      114,370,000   106,583,000
 31.26  (b) Work Grants 
 31.27  General                 666,000    14,678,000
 31.28                        8,666,000     8,678,000
 31.29  Federal TANF         92,474,000    96,681,000
 31.30                       98,474,000   102,681,000
 31.31  [MFIP SUPPORT SERVICES COUNTY AND 
 31.32  TRIBAL ALLOCATION.] When determining 
 31.33  the funds available for the 
 31.34  consolidated MFIP support services 
 31.35  grant in the 18-month period ending 
 31.36  December 31, 2004, the commissioner 
 31.37  shall apportion the funds appropriated 
 31.38  for fiscal year 2005 in such manner as 
 31.39  necessary to provide $14,000,000 more 
 31.40  to counties and tribes for the period 
 31.41  ending December 31, 2004, than would 
 31.42  have been available had the funds been 
 31.43  evenly divided within the fiscal year 
 31.44  between the period before December 31, 
 31.45  2004, and the period after December 31, 
 31.46  2004. 
 32.1   For allocations for the calendar years 
 32.2   starting January 1, 2005, the 
 32.3   commissioner shall apportion the funds 
 32.4   appropriated for each fiscal year in 
 32.5   such manner as necessary to provide 
 32.6   $14,000,000 more to counties and tribes 
 32.7   for the period ending December 31 of 
 32.8   that year than would have been 
 32.9   available had the funds been evenly 
 32.10  divided within the fiscal year between 
 32.11  the period before December 31 and the 
 32.12  period after December 31. 
 32.13  (c) Economic Support Grants - Other 
 32.14  Assistance 
 32.15  General               3,358,000     3,463,000
 32.16  [SUPPORTIVE HOUSING.] Of the general 
 32.17  fund appropriation, $500,000 each year 
 32.18  is to provide services to families who 
 32.19  are participating in the supportive 
 32.20  housing and managed care pilot project 
 32.21  under Minnesota Statutes, section 
 32.22  256K.25.  This appropriation shall not 
 32.23  become part of base level funding for 
 32.24  the biennium beginning July 1, 2007. 
 32.25  (d) Child Support Enforcement Grants 
 32.26  General               3,571,000     3,503,000
 32.27  (e) General Assistance Grants
 32.28  General              24,901,000    24,732,000
 32.29                       26,329,000    26,909,000
 32.30  [GENERAL ASSISTANCE STANDARD.] The 
 32.31  commissioner shall set the monthly 
 32.32  standard of assistance for general 
 32.33  assistance units consisting of an adult 
 32.34  recipient who is childless and 
 32.35  unmarried or living apart from parents 
 32.36  or a legal guardian at $203.  The 
 32.37  commissioner may reduce this amount 
 32.38  according to Laws 1997, chapter 85, 
 32.39  article 3, section 54. 
 32.40  [EMERGENCY GENERAL ASSISTANCE.] The 
 32.41  amount appropriated for emergency 
 32.42  general assistance funds is limited to 
 32.43  no more than $7,889,812 in each fiscal 
 32.44  year of 2004 and 2005.  Funds to 
 32.45  counties shall be allocated by the 
 32.46  commissioner using the allocation 
 32.47  method specified in Minnesota Statutes, 
 32.48  section 256D.06. 
 32.49  (f) Minnesota Supplemental Aid Grants 
 32.50  General              30,229,000    31,447,000
 32.51                       28,955,000    30,490,000
 32.52  [EMERGENCY MINNESOTA SUPPLEMENTAL AID 
 32.53  FUNDS.] The amount appropriated for 
 32.54  emergency Minnesota supplemental aid 
 32.55  funds is limited to no more than 
 32.56  $1,138,707 in fiscal year 2004 and 
 32.57  $1,017,000 in fiscal year 2005.  Funds 
 33.1   to counties shall be allocated by the 
 33.2   commissioner using the allocation 
 33.3   method specified in Minnesota Statutes, 
 33.4   section 256D.46. 
 33.5      Sec. 8.  Laws 2003, First Special Session chapter 14, 
 33.6   article 13C, section 10, subdivision 1, is amended to read: 
 33.7   Subdivision 1.  Total 
 33.8   Appropriation                     $  107,829,000 $   92,649,000
 33.9                                        106,221,000     97,564,000
 33.10                Summary by Fund
 33.11  General             104,489,000    89,309,000
 33.12                      102,881,000    92,224,000
 33.13  State Special 
 33.14  Revenue               3,340,000     3,340,000 
 33.15     Sec. 9.  Laws 2003, First Special Session chapter 14, 
 33.16  article 13C, section 10, subdivision 2, is amended to read: 
 33.17  Subd. 2.  Child Care 
 33.18  [BASIC SLIDING FEE CHILD CARE.] Of this 
 33.19  appropriation, $27,628,000 in fiscal 
 33.20  year 2004 and $18,771,000 in fiscal 
 33.21  year 2005 are for child care assistance 
 33.22  according to Minnesota Statutes, 
 33.23  section 119B.03.  These appropriations 
 33.24  are available to be spent either year.  
 33.25  The fiscal years 2006 and 2007 general 
 33.26  fund base for basic sliding fee child 
 33.27  care is $30,312,000 each year. 
 33.28  [MFIP CHILD CARE.] Of this 
 33.29  appropriation, $69,543,000 $67,935,000 
 33.30  in fiscal year 2004 
 33.31  and $63,720,000 $68,635,000 in fiscal 
 33.32  year 2005 are for MFIP child care. 
 33.33  [CHILD CARE PROGRAM INTEGRITY.] Of this 
 33.34  appropriation, $425,000 in fiscal year 
 33.35  2004, and $376,000 in fiscal year 2005 
 33.36  are for the administrative costs of 
 33.37  program integrity and fraud prevention 
 33.38  for child care assistance under 
 33.39  Minnesota Statutes, chapter 119B. 
 33.40  [CHILD CARE DEVELOPMENT.] Of this 
 33.41  appropriation, $1,115,000 in fiscal 
 33.42  year 2004, and $1,164,000 in fiscal 
 33.43  year 2005 are for child care 
 33.44  development grants according to 
 33.45  Minnesota Statutes, section 119B.21. 
 33.46     Sec. 10.  [EFFECTIVE DATE.] 
 33.47     Sections 1 to 9 are effective the day following final 
 33.48  enactment, unless a different effective date is specified. 
 33.49                             ARTICLE 3
 33.50                        ADDITIONAL REVENUES
 33.51     Section 1.  Minnesota Statutes 2003 Supplement, section 
 34.1   16A.152, subdivision 2, is amended to read: 
 34.2      Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 
 34.3   basis of a forecast of general fund revenues and expenditures, 
 34.4   the commissioner of finance determines that there will be a 
 34.5   positive unrestricted budgetary general fund balance at the 
 34.6   close of the biennium, the commissioner of finance must allocate 
 34.7   money to the following accounts and purposes in priority order: 
 34.8      (1) the cash flow account established in subdivision 1 
 34.9   until that account reaches $350,000,000; and 
 34.10     (2) the budget reserve account established in subdivision 
 34.11  1a until that account reaches $653,000,000; 
 34.12     (3) the amount necessary to increase the aid payment 
 34.13  schedule for school district aids and credits payments in 
 34.14  section 127A.45 to not more than 90 percent; and 
 34.15     (4) the amount necessary to restore all or a portion of the 
 34.16  net aid reductions under section 127A.441 and to reduce the 
 34.17  property tax revenue recognition shift under section 123B.75, 
 34.18  subdivision 5, paragraph (c), and Laws 2003, First Special 
 34.19  Session chapter 9, article 5, section 34, as amended by Laws 
 34.20  2003, First Special Session chapter 23, section 20, by the same 
 34.21  amount. 
 34.22     (b) The amounts necessary to meet the requirements of this 
 34.23  section are appropriated from the general fund within two weeks 
 34.24  after the forecast is released or, in the case of transfers 
 34.25  under paragraph (a), clauses (3) and (4), as necessary to meet 
 34.26  the appropriations schedules otherwise established in statute. 
 34.27     (c) To the extent that a positive unrestricted budgetary 
 34.28  general fund balance is projected, appropriations under this 
 34.29  section must be made before any transfer is made under section 
 34.30  16A.1522. 
 34.31     (d) The commissioner of finance shall certify the total 
 34.32  dollar amount of the reductions under paragraph (a), clauses (3) 
 34.33  and (4), to the commissioner of education.  The commissioner of 
 34.34  education shall increase the aid payment percentage and reduce 
 34.35  the property tax shift percentage by these amounts and apply 
 34.36  those reductions to the current fiscal year and thereafter. 
 35.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.2   following final enactment. 
 35.3                              ARTICLE 4 
 35.4                     PUBLIC FACILITIES AUTHORITY 
 35.5      Section 1.  Minnesota Statutes 2002, section 446A.12, 
 35.6   subdivision 1, is amended to read: 
 35.7      Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 35.8   issue negotiable bonds in a principal amount that the authority 
 35.9   determines necessary to provide sufficient funds for achieving 
 35.10  its purposes, including the making of loans and purchase of 
 35.11  securities, the payment of interest on bonds of the authority, 
 35.12  the establishment of reserves to secure its bonds, the payment 
 35.13  of fees to a third party providing credit enhancement, and the 
 35.14  payment of all other expenditures of the authority incident to 
 35.15  and necessary or convenient to carry out its corporate purposes 
 35.16  and powers, but not including the making of grants.  Bonds of 
 35.17  the authority may be issued as bonds or notes or in any other 
 35.18  form authorized by law.  The principal amount of bonds issued 
 35.19  and outstanding under this section at any time may not exceed 
 35.20  $1,000,000,000 $1,250,000,000, excluding bonds for which 
 35.21  refunding bonds or crossover refunding bonds have been issued. 
 35.22     Sec. 2.  Minnesota Statutes 2002, section 446A.14, is 
 35.23  amended to read: 
 35.24     446A.14 [INTEREST EXCHANGES RATE SWAPS AND OTHER 
 35.25  AGREEMENTS.] 
 35.26     The authority may enter into an agreement with a third 
 35.27  party for an exchange of interest rates under this subdivision.  
 35.28  With respect to outstanding obligations bearing interest at a 
 35.29  variable rate, the authority may agree to pay sums equal to 
 35.30  interest at a fixed rate or at a different variable rate 
 35.31  determined in accordance with a formula set out in the agreement 
 35.32  on an amount not exceeding the outstanding principal amount of 
 35.33  the obligations, in exchange for an agreement by the third party 
 35.34  to pay sums equal to interest on a similar amount at a variable 
 35.35  rate determined according to a formula set out in the agreement. 
 35.36  With respect to outstanding obligations bearing interest at a 
 36.1   fixed rate or rates, the authority may agree to pay sums equal 
 36.2   to interest at a variable rate determined according to a formula 
 36.3   set out in the agreement on an amount not exceeding the 
 36.4   outstanding principal amount of the obligations in exchange for 
 36.5   an agreement by the third party to pay sums equal to interest on 
 36.6   a similar amount at a fixed rate or rates set out in the 
 36.7   agreement.  Subject to any applicable bonds covenants, payments 
 36.8   required to be made by the municipality under the swap agreement 
 36.9   may be made from amounts secured to pay debt service on the 
 36.10  obligations with respect to which the swap agreement was made 
 36.11  from any other available source of the authority. Subdivision 1. 
 36.12  [AGREEMENTS.] (a) The authority may enter into interest rate 
 36.13  exchange or swap agreements, hedges, forward purchase or sale 
 36.14  agreements, loan sale or pooling agreements or trusts, or other 
 36.15  similar agreements in connection with: 
 36.16     (1) the issuance or proposed issuance of bonds; 
 36.17     (2) the making, proposed making, or sale of loans or other 
 36.18  financial assistance or investments; 
 36.19     (3) outstanding bonds, loans, or other financial 
 36.20  assistance; or 
 36.21     (4) existing similar agreements.  
 36.22     (b) The agreements authorized by this subdivision include, 
 36.23  without limitation, master agreements, options or contracts to 
 36.24  enter into those agreements in the future and related 
 36.25  agreements, including, without limitation, agreements to provide 
 36.26  credit enhancement, liquidity, or remarketing; valuation; 
 36.27  monitoring; or administrative services currently or in the 
 36.28  future.  However, the term of an option to enter into an 
 36.29  interest rate swap, exchange, hedge, or other similar agreement 
 36.30  and the term of a contract to sell, buy, or refund bonds in the 
 36.31  future must not exceed five years and the authorization of the 
 36.32  authority to enter into option agreements with respect to 
 36.33  interest rate swap agreements expires on December 31, 2008; 
 36.34  provided that the option agreements entered into prior to that 
 36.35  date remain valid agreements of the authority after that date. 
 36.36     (c) The agreements authorized by this subdivision or 
 37.1   supplements to master agreements may be entered into on the 
 37.2   basis of negotiation with a qualified third party or through a 
 37.3   competitive proposal process on terms and conditions and with 
 37.4   covenants and provisions approved by the authority and may 
 37.5   include, without limitation: 
 37.6      (1) provisions establishing reserves; 
 37.7      (2) pledging assets or revenues of the authority for 
 37.8   current or other payments or termination payments; 
 37.9      (3) contracting with the other parties to the agreements to 
 37.10  provide for the custody, collection, securing, investment, and 
 37.11  payment of money of the authority or money held in trust; or 
 37.12     (4) requiring the issuance of bonds or entering into loans 
 37.13  or other agreements authorized by this subdivision in the future.
 37.14     (d) Subject to the terms of the agreement and other 
 37.15  agreements of the authority with bondholders or other third 
 37.16  parties, the agreements authorized by this subdivision may be 
 37.17  general or limited obligations of the authority payable from all 
 37.18  available or certain specified funds appropriated to the 
 37.19  authority.  The agreements authorized by this subdivision do not 
 37.20  constitute debt of the authority for the purposes of the limits 
 37.21  on bonds or notes of the authority set forth in section 446A.12, 
 37.22  subdivision 1.  
 37.23     (e) The authority may issue bonds to provide funds to make 
 37.24  payments, including, without limitation, termination payments 
 37.25  pursuant to an agreement authorized by this subdivision. 
 37.26     (f) The aggregate notional amount of interest rate swap or 
 37.27  exchange agreements in effect at any time must not exceed an 
 37.28  amount equal to ten percent of the aggregate principal amount of 
 37.29  bonds the authority is authorized to have outstanding pursuant 
 37.30  to section 446A.12, subdivision 1, including the notional amount 
 37.31  of interest rate swap or exchange agreements with respect to 
 37.32  which a reversing agreement has been entered into, the effect of 
 37.33  which is to terminate the original agreement or a portion 
 37.34  thereof, and reversing agreements with respect to all or a 
 37.35  portion of existing agreements. 
 37.36     Subd. 2.  [POWERS OF AUTHORITY.] For the purposes of this 
 38.1   section, the authority may exercise all powers provided in this 
 38.2   chapter.  The authority may consent, whenever it considers it 
 38.3   necessary or desirable in connection with agreements entered 
 38.4   into under this subdivision, to modifications, amendments, or 
 38.5   waivers of the terms of the agreements.  The proceeds of any 
 38.6   agreements entered into pursuant to this subdivision are 
 38.7   appropriated to the authority pursuant to section 446A.11, 
 38.8   subdivision 13.  The agreements entered into pursuant to this 
 38.9   subdivision are not subject to sections 16C.03, subdivision 4, 
 38.10  and 16C.05. 
 38.11     Sec. 3.  Minnesota Statutes 2002, section 446A.17, is 
 38.12  amended to read: 
 38.13     446A.17 [NONLIABILITY.] 
 38.14     Subdivision 1.  [NONLIABILITY OF INDIVIDUALS.] No member of 
 38.15  the authority or other person executing the bonds, loans, 
 38.16  interest rate swaps, or other agreements or contracts of the 
 38.17  authority is liable personally on the bonds, loans, interest 
 38.18  rate swaps, or other agreements or contracts of the authority or 
 38.19  is subject to any personal liability or accountability by reason 
 38.20  of their issuance, execution, delivery, or performance.  
 38.21     Subd. 2.  [NONLIABILITY OF STATE.] The state is not liable 
 38.22  on bonds, loans, interest rate swaps, or other agreements or 
 38.23  contracts of the authority issued or entered into under this 
 38.24  chapter and those bonds the bonds, loans, interest rate swaps, 
 38.25  or other agreements or contracts of the authority are not a debt 
 38.26  of the state.  The bonds, loans, interest rate swaps, or other 
 38.27  agreements or contracts of the authority must contain on their 
 38.28  face a statement to that effect. 
 38.29     Sec. 4.  Minnesota Statutes 2002, section 446A.19, is 
 38.30  amended to read: 
 38.31     446A.19 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
 38.32     The state pledges and agrees with the holders of bonds 
 38.33  issued under sections 446A.051, and 446A.12 to 446A.20 or other 
 38.34  parties to any loans, interest rate swaps, or other agreements 
 38.35  or contracts of the authority that the state will not limit or 
 38.36  alter the rights vested in the authority to fulfill the terms of 
 39.1   any agreements made with the bondholders or parties to any 
 39.2   loans, interest rate swaps, or other agreements or contracts of 
 39.3   the authority or in any way impair the rights and remedies of 
 39.4   the holders until the bonds, together with interest on them, 
 39.5   with interest on any unpaid installments of interest, and all 
 39.6   costs and expenses in connection with any action or proceeding 
 39.7   by or on behalf of the bondholders, are fully met and discharged 
 39.8   or, with respect to any loans, interest rate swaps, or other 
 39.9   agreements or contracts of the authority, the agreements have 
 39.10  been fully performed by the authority or otherwise terminated or 
 39.11  discharged.  The authority may include this pledge and agreement 
 39.12  of the state in any agreement with the holders of bonds issued 
 39.13  under sections 446A.051, and 446A.12 to 446A.20 or in any loans, 
 39.14  interest rate swaps, or other agreements or contracts of the 
 39.15  authority.