1.1 	A bill for an act
1.2 	relating to state government; providing supplemental appropriations for Office 
1.3 	of Higher Education, Board of Trustees of the Minnesota State Colleges and 
1.4 	Universities, Board of Regents of the University of Minnesota; jobs, economic 
1.5 	development, labor, commerce and housing finance; state government and 
1.6 	veterans; public safety and corrections; transportation; agriculture, environment, 
1.7 	natural resources and clean water; early childhood education; kindergarten 
1.8 	through grade 12; community and adult education including general education; 
1.9 	education excellence; special education; education facilities; nutrition; state 
1.10 	education agencies; health and human services; making certain appropriations 
1.11 	adjustments; modifying disposition of certain revenues; providing a grant 
1.12 	to College Possible; providing funding for regenerative medicine research; 
1.13 	regulating study abroad programs; providing resident tuition rates for certain 
1.14 	military veterans; authorizing participation in the interstate reciprocity 
1.15 	agreement; authorizing student loan refinancing; requiring a transfer from the 
1.16 	assigned risk plan in the event of surplus; establishing broadband development 
1.17 	grants; modifying workforce development outcomes; requiring workers' 
1.18 	compensation reform; modifying an energy loan program; establishing deaf, 
1.19 	deafblind, and hard-of-hearing grants; modifying distribution of a taconite tax; 
1.20 	implementing an innovation voucher pilot program; establishing competency 
1.21 	standards for certain industries; creating the Legislative Water Commission; 
1.22 	making changes to the Compensation Council; expediting professional 
1.23 	licensure for members of the military; transferring funds to a disaster assistance 
1.24 	contingency account; modifying certain provisions pertaining to victims of 
1.25 	domestic violence; permitting the court to continue a juvenile case without a 
1.26 	finding of delinquency; continuing the fire safety advisory committee; lowering 
1.27 	the penalty for the performance of acts prohibited by statutes for which no penalty 
1.28 	is specified; extending University of Minnesota service of alcohol; providing 
1.29 	for disaster assistance for public entities with and without federal assistance; 
1.30 	providing for railroad and railroad yard safety and emergency preparedness; 
1.31 	designating the Trooper Glen Skolman Memorial Highway; modifying various 
1.32 	provisions governing fund use, driver's licenses and permits, license plates, speed 
1.33 	limits, work zones, gross vehicle weights and permits, products and services 
1.34 	billing, safety oversight, light rail vehicle design, transit shelters and stops, 
1.35 	highway turnbacks, and watercraft decontamination sites; providing for federal 
1.36 	conformity; establishing a community destination sign pilot program; providing 
1.37 	for transit service on election day; modifying off-highway motorcycle provisions; 
1.38 	creating accounts; providing for certain grants; providing for protection 
1.39 	of pollinators; modifying the Water Law; modifying recycling provisions; 
2.1 	providing for state parks and trails license plates; providing for establishment of 
2.2 	Invasive Terrestrial Plants and Pests Center; providing for licensing commercial 
2.3 	breeders of dogs and cats; providing for adoption of research dogs and cats; 
2.4 	modifying provisions governing Health Department, Department of Human 
2.5 	Services, health care, children and family services, Northstar Care for Children 
2.6 	program, community first services and supports, continuing care, home and 
2.7 	community-based services standards, public assistance programs simplification, 
2.8 	and chemical and mental health services; making changes to hospital payment 
2.9 	system; providing rate and grant increases for nursing facilities, ICFs/DD, 
2.10 	and home and community-based services; requiring studies and reports; 
2.11 	requiring rulemaking;amending Minnesota Statutes 2012, sections 12.03, 
2.12 	by adding subdivisions; 12.221, subdivision 4, by adding a subdivision; 
2.13 	12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision 3; 12A.15, 
2.14 	subdivision 1; 13.43, subdivision 16; 13.46, subdivision 4; 13.643, subdivision 6; 
2.15 	13.681, by adding a subdivision; 13.84, subdivisions 5, 6; 15A.082, subdivision 
2.16 	4; 16A.125, subdivision 5; 16A.28, by adding a subdivision; 16C.16, subdivision 
2.17 	6a; 16C.19; 18B.01, by adding subdivisions; 18B.03, by adding a subdivision; 
2.18 	18B.04; 84.788, subdivision 2; 85.053, subdivision 2; 85.34, subdivision 7; 
2.19 	85A.02, subdivision 2; 103G.251; 103G.271, subdivisions 5, 6; 103G.281, by 
2.20 	adding a subdivision; 115A.151, as amended; 115A.55, subdivision 4; 115A.551, 
2.21 	subdivisions 1, 2a; 115A.557, subdivisions 2, 3; 115E.01, by adding subdivisions; 
2.22 	115E.08, by adding subdivisions; 116J.423, subdivision 2; 116J.8731, subdivision 
2.23 	5; 116L.98; 119B.09, subdivision 9a; 122A.18, by adding a subdivision; 
2.24 	122A.40, subdivision 13; 122A.41, subdivision 6; 122A.414, subdivision 2, as 
2.25 	amended if enacted; 122A.415, subdivision 1; 123A.05, subdivision 2; 123A.64; 
2.26 	123B.57, subdivision 6; 123B.71, subdivisions 8, 9; 123B.72, subdivisions 1, 3; 
2.27 	124D.09, subdivisions 9, 13; 124D.111, by adding a subdivision; 124D.1158, 
2.28 	subdivisions 3, 4; 124D.13, subdivisions 2, as amended, 4, 9, 13, by adding 
2.29 	subdivisions; 124D.135, subdivisions 1, 3; 124D.16, subdivision 2; 124D.522; 
2.30 	124D.531, subdivision 3; 124D.59, subdivision 2; 125A.76, subdivision 2; 
2.31 	126C.10, subdivisions 25, 26; 127A.45, subdivisions 2, 3; 127A.49, subdivisions 
2.32 	2, 3; 129C.10, subdivision 3, by adding a subdivision; 136A.01, subdivision 
2.33 	2; 136A.1702; 136A.1785; 144.0724, as amended; 144.1501, subdivision 
2.34 	1; 144.551, subdivision 1; 144A.073, by adding a subdivision; 144A.33, 
2.35 	subdivision 2; 148.624, by adding a subdivision; 148B.53, subdivision 3; 
2.36 	150A.091, by adding a subdivision; 153.16, by adding a subdivision; 154.11, as 
2.37 	amended; 155A.27, by adding a subdivision; 161.14, by adding a subdivision; 
2.38 	165.15, subdivision 2; 169.011, by adding a subdivision; 169.06, subdivision 
2.39 	4, by adding a subdivision; 169.14, subdivision 5d, by adding a subdivision; 
2.40 	169.305, subdivision 1; 169.826, by adding a subdivision; 169.8261, by adding a 
2.41 	subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865, 
2.42 	subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding a 
2.43 	subdivision; 171.02, subdivision 3; 171.06, subdivision 2; 171.13, subdivision 
2.44 	1; 174.02, by adding a subdivision; 174.56, subdivision 1; 179.02, by adding 
2.45 	a subdivision; 181A.07, by adding a subdivision; 216B.241, subdivision 1d; 
2.46 	216C.145; 216C.146; 219.015, subdivisions 1, 2; 222.50, subdivision 7; 
2.47 	245.466, by adding a subdivision; 245A.03, subdivision 2c; 245A.04, by 
2.48 	adding a subdivision; 245C.03, by adding a subdivision; 245C.04, by adding 
2.49 	a subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision; 
2.50 	245C.33, subdivisions 1, 4; 252.451, subdivision 2; 253B.066, subdivision 1; 
2.51 	254B.04, subdivision 3; 254B.12; 256.01, by adding a subdivision; 256.9685, 
2.52 	subdivisions 1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a, 
2.53 	3b, 3c, 6a, 8, 8a, 9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752, 
2.54 	subdivision 2; 256B.04, by adding a subdivision; 256B.0615, subdivision 3; 
2.55 	256B.0624, subdivisions 2, 5, 6, 10; 256B.0625, subdivisions 18b, 18c, 18d, 18g, 
2.56 	30, by adding a subdivision; 256B.0751, by adding a subdivision; 256B.199; 
2.57 	256B.35, subdivision 1; 256B.441, by adding a subdivision; 256B.5012, by 
2.58 	adding a subdivision; 256D.02, subdivisions 8, 12; 256D.05, subdivision 5; 
3.1 	256D.06, subdivision 1; 256D.08, subdivision 1, by adding a subdivision; 
3.2 	256D.10; 256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by 
3.3 	adding a subdivision; 256I.04, subdivision 1; 256I.05, subdivision 2; 256J.08, 
3.4 	subdivisions 47, 57, 83, by adding a subdivision; 256J.10; 256J.21, subdivision 4; 
3.5 	256J.30, subdivision 4; 256J.32, subdivision 1; 256J.33, subdivision 2; 256J.37, 
3.6 	as amended; 256J.425, subdivisions 1, 7; 256J.49, subdivision 13; 256J.53, 
3.7 	subdivisions 1, 2, 5; 256J.531; 256J.95, subdivisions 8, 9, 10; 257.85, subdivision 
3.8 	11; 260B.198, subdivision 7; 260C.212, subdivision 1; 260C.515, subdivision 
3.9 	4; 260C.611; 268A.01, subdivision 14; 298.28, subdivisions 2, 7a, as added; 
3.10 	299F.012, subdivision 2; 326.04, as amended; 326.10, by adding a subdivision; 
3.11 	326.3382, by adding a subdivision; 326A.04, by adding a subdivision; 363A.44, 
3.12 	subdivision 1, as added; 611A.06, by adding a subdivision; 645.241; Minnesota 
3.13 	Statutes 2013 Supplement, sections 15A.082, subdivisions 1, 3; 16A.724, 
3.14 	subdivision 3; 103I.205, subdivision 4; 116V.03; 123B.53, subdivisions 1, 5; 
3.15 	123B.54; 123B.75, subdivision 5; 124D.11, subdivision 1; 124D.111, subdivision 
3.16 	1; 124D.165, subdivisions 3, 4, 5; 124D.531, subdivision 1; 124D.862, 
3.17 	subdivisions 1, 2; 125A.0942; 125A.11, subdivision 1; 125A.76, subdivisions 
3.18 	1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10, 
3.19 	subdivisions 2, 2a, 2c, 2d, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.40, 
3.20 	subdivision 1; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 7; 
3.21 	145.4716, subdivision 2; 148B.17, subdivision 2; 174.12, subdivision 2; 174.42, 
3.22 	subdivision 2; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision 3; 
3.23 	245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b, 
3.24 	8b, 11, 15b, 23, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1, 
3.25 	2, 3, by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions 
3.26 	1, 1a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071, 
3.27 	subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a; 
3.28 	245D.091, subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision 
3.29 	2; 252.27, subdivision 2a; 256B.04, subdivision 21; 256B.055, subdivision 
3.30 	1; 256B.06, subdivision 4; 256B.0625, subdivisions 17, 18e; 256B.0949, 
3.31 	subdivisions 4, 5, 11, by adding a subdivision; 256B.439, subdivisions 1, 7; 
3.32 	256B.441, subdivision 63; 256B.4912, subdivision 1; 256B.4913, subdivision 4a; 
3.33 	256B.4914, subdivisions 2, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision 
3.34 	34; 256B.766; 256B.767; 256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 
3.35 	15, 16, 17, 18, 23, 24, by adding subdivisions; 256J.21, subdivision 3; 256J.30, 
3.36 	subdivision 9; 256N.02, by adding a subdivision; 256N.21, subdivision 2, by 
3.37 	adding a subdivision; 256N.22, subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 
3.38 	4; 256N.24, subdivisions 9, 10; 256N.25, subdivisions 2, 3; 256N.26, subdivision 
3.39 	1; 256N.27, subdivision 4; 297A.815, subdivision 3; 326A.04, subdivision 5; 
3.40 	Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended; Laws 
3.41 	2009, chapter 83, article 1, section 10, subdivision 7; Laws 2010, chapter 189, 
3.42 	sections 15, subdivision 12; 26, subdivision 4; Laws 2012, chapter 247, article 4, 
3.43 	section 47; Laws 2012, chapter 263, section 1; Laws 2012, chapter 287, article 2, 
3.44 	sections 1; 3; Laws 2012, First Special Session chapter 1, article 1, section 28; 
3.45 	Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 85, article 1, 
3.46 	sections 3, subdivisions 2, 5, 6; 4, subdivisions 1, 2; 5; 13, subdivision 5; Laws 
3.47 	2013, chapter 86, article 1, sections 12, subdivisions 1, 3, as amended; 13; Laws 
3.48 	2013, chapter 108, article 1, section 24; article 7, sections 14; 49; article 14, 
3.49 	sections 2, subdivisions 1, 3, 4, as amended, 6, as amended; 3, subdivisions 1, 4; 
3.50 	4, subdivision 8; 12; Laws 2013, chapter 114, article 3, sections 3, subdivision 6; 
3.51 	4, subdivision 3; article 4, section 47; Laws 2013, chapter 116, article 1, section 
3.52 	58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 
3.53 	15, 18, 20; article 4, section 9, subdivision 2; article 5, section 31, subdivisions 
3.54 	2, 3, 4, 5, 8; article 6, section 12, subdivisions 2, 3, 4, 6; article 7, section 21, 
3.55 	subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 8, 9, 10, 
3.56 	11, 14; article 9, sections 1, subdivision 2; 2; Laws 2013, chapter 117, article 1, 
3.57 	sections 3, subdivisions 2, 3, 6; 4; 5, subdivisions 2, 3, 4; Laws 2013, chapter 
3.58 	143, article 11, section 10; Laws 2014, chapter 235, section 43; Laws 2014, 
4.1 	chapter 240, section 26; 2014 H.F. No. 2180, section 11, if enacted; proposing 
4.2 	coding for new law in Minnesota Statutes, chapters 3; 5; 18B; 84; 85; 87A; 
4.3 	103G; 115E; 116J; 123A; 123B; 124D; 129C; 135A; 136A; 144; 144A; 145; 
4.4 	148; 168; 171; 197; 219; 268A; 299A; 347; 473; proposing coding for new law 
4.5 	as Minnesota Statutes, chapters 12B; 256P; repealing Minnesota Statutes 2012, 
4.6 	sections 115A.551, subdivision 2; 116J.997; 123B.71, subdivisions 1, 4; 256.969, 
4.7 	subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 
4.8 	3, 4; 256D.06, subdivision 1b; 256D.08, subdivision 2; 256D.405, subdivisions 
4.9 	1a, 2; 256J.08, subdivisions 42, 55a, 82a; 256J.20; 256J.24, subdivision 9; 
4.10 	256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, 8; Minnesota Statutes 2013 Supplement, 
4.11 	sections 256B.0625, subdivision 18f; 256J.08, subdivision 24; 256N.26, 
4.12 	subdivision 7; Laws 2014, chapter 272, article 1, section 22; article 3, section 32.
4.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

4.14 	ARTICLE 1
4.15 	HIGHER EDUCATION

4.16	Section 1. APPROPRIATIONS.
 	
4.17 	The sums shown in the columns marked "Appropriations" are added to the 
4.18 	appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the 
4.19 	agencies and for the purposes specified in this article. The appropriations are from the 
4.20 	general fund, or another named fund, and are available for the fiscal year indicated for 
4.21 	each purpose. The figure "2015" used in this article means that the appropriation listed 
4.22 	under it is available for the fiscal year ending June 30, 2015.

4.23				APPROPRIATIONS
	
4.24				Available for the Year
	
4.25				Ending June 30
	
4.26					2014
		2015

4.27	Sec. 2. OFFICE OF HIGHER EDUCATION
 			$
	750,000
	
4.28 	This appropriation is for immediate transfer 
4.29 	to College Possible for the purpose of 
4.30 	expanding College Possible coaching and 
4.31 	mentoring programs in Minnesota schools. 
4.32 	The appropriation shall be used for: 
4.33 	(1) increasing the number of low-income 
4.34 	high school students served by College 
4.35 	Possible by adding at least 150 students and 
4.36 	partnering with at least three additional high 
4.37 	schools in 2015;
5.1 	(2) expenses related to direct support 
5.2 	for low-income high school students in 
5.3 	after-school programming led by College 
5.4 	Possible; and
5.5 	(3) coaching and support of low-income 
5.6 	college students through the completion of 
5.7 	their college degree.
5.8 	College Possible must, by February 1, 2015, 
5.9 	report to the chairs and ranking minority 
5.10 	members of the legislative committees 
5.11 	and divisions with jurisdiction over higher 
5.12 	education and E-12 education on activities 
5.13 	funded by this appropriation. The report must 
5.14 	include, but is not limited to, information 
5.15 	about the expansion of College Possible in 
5.16 	Minnesota, the number of College Possible 
5.17 	coaches hired, the expansion within existing 
5.18 	partner high schools, the expansion of high 
5.19 	school partnerships, the number of high 
5.20 	school and college students served, the 
5.21 	total hours of community service by high 
5.22 	school and college students, and a list of 
5.23 	communities and organizations benefitting 
5.24 	from student service hours.
5.25 	This appropriation must not be used for the 
5.26 	expansion and support of College Possible 
5.27 	outside of Minnesota.
5.28 	This is a onetime appropriation.

5.29
5.30
5.31	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES
 			$
	17,000,000
	
5.32 	$17,000,000 in fiscal year 2015 is 
5.33 	appropriated from the general fund to the 
5.34 	Board of Trustees of the Minnesota State 
5.35 	Colleges and Universities for compensation 
6.1 	costs associated with the settlement of 
6.2 	employment contracts for fiscal year 2014. 
6.3 	The board's appropriation base is increased 
6.4 	by $17,000,000 in fiscal years 2016 and 2017.

6.5
6.6	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

6.7	Subdivision 1.Total Appropriation
 			$
	4,500,000

6.8	Subd. 2.Health Sciences Special
 				4,500,000
	
6.9 	(a) This appropriation is from the general 
6.10 	fund for the direct and indirect expenses 
6.11 	of the collaborative partnership between 
6.12 	the Univerity of Minnesota and the Mayo 
6.13 	Clinic for regenerative medicine research, 
6.14 	clinical translation, and commercialization. 
6.15 	In addition to representatives from the 
6.16 	University of Minnesota and the Mayo 
6.17 	Clinic, the collaborative partnership must 
6.18 	include representatives of private industry 
6.19 	and others with expertise in regenerative 
6.20 	medicine research, clinical translation, 
6.21 	commercialization, and medical venture 
6.22 	financing who are not affiliated with either the 
6.23 	University of Minnesota or the Mayo Clinic.
6.24 	(b) By January 15 of each odd-numbered 
6.25 	year beginning in 2017, the partnership must 
6.26 	submit an independent financial audit to the 
6.27 	chairs and ranking minority members of the 
6.28 	committees of the house of representatives 
6.29 	and senate having jurisdiction over higher 
6.30 	education and economic development. The 
6.31 	audit must include the names of all recipients 
6.32 	of grants awarded by the partnership and 
6.33 	their affiliation, if any, with the University of 
6.34 	Minnesota or the Mayo Clinic.
7.1 	(c) The full amount of this appropriation 
7.2 	is for the partnership and may not be 
7.3 	used by the University of Minnesota for 
7.4 	administrative or monitoring expenses.
7.5 	(d) For fiscal year 2016 and thereafter, the 
7.6 	base for this program is $4,350,000.

7.7 	Sec. 5. [5.39] STUDY ABROAD PROGRAMS.
7.8 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
7.9 	subdivision have the meanings given them.
7.10 	(b) "Postsecondary institution" means an institution that meets the eligibility 
7.11 	requirements under section 136A.103 to participate in state financial aid programs.
7.12 	(c) "Program" means a study abroad program offered or approved for credit by a 
7.13 	postsecondary institution in which program participants travel outside of the United States 
7.14 	in connection with an educational experience.
7.15 		Subd. 2.Report. (a) A postsecondary institution, must file by November 1 of each 
7.16 	year a report on its programs with the secretary of state. The report must contain the 
7.17 	following information from the previous academic year, including summer terms:
7.18 	(1) deaths of program participants that occurred during program participation as a 
7.19 	result of program participation; and
7.20 	(2) accidents and illnesses that occurred during program participation as a result of 
7.21 	program participation and that required hospitalization.
7.22 	Information reported under clause (1) may be supplemented by a brief explanatory 
7.23 	statement.
7.24 	(b) A postsecondary institution must report to the secretary of state annually by 
7.25 	November 1 whether its program complies with health and safety standards set by the 
7.26 	Forum on Education Abroad or a similar study abroad program standard setting agency.
7.27 		Subd. 3.Secretary of state; publication of program information. (a) The secretary 
7.28 	of state must publish the reports required by subdivision 2, on its Web site in a format that 
7.29 	facilitates identifying information related to a particular postsecondary institution.
7.30 	(b) The secretary of state shall publish on its Web site the best available information 
7.31 	by country on sexual assaults and other criminal acts affecting study abroad program 
7.32 	participants during program participation. This information shall not be limited to 
7.33 	programs subject to this section.
7.34 		Subd. 4.Office of Higher Education. The secretary of state shall provide the 
7.35 	information it posts on its Web site under subdivision 3 to the Office of Higher Education, 
8.1 	in electronic format, at the time it posts the information. The Office of Higher Education 
8.2 	shall post the information on its Web site and may otherwise distribute the information. In 
8.3 	materials distributed or posted, the Office of Higher Education must reference this section.
8.4 		Subd. 5.Program material. A postsecondary institution must include in its written 
8.5 	materials provided to prospective program participants a link to the secretary of state Web 
8.6 	site stating that program health and safety information is available at the Web site.

8.7 	EFFECTIVE DATE. This section is effective August 1, 2014, provided that the 
8.8 	initial reports under subdivision 2 are due November 1, 2015.

8.9 	Sec. 6. [135A.0431] MILITARY VETERANS; RESIDENT TUITION.
8.10 	(a) A person who is honorably discharged from the armed forces of the United States 
8.11 	is entitled to the resident tuition rate at Minnesota public postsecondary institutions.
8.12 	(b) This section is in addition to any other statute, rule, or higher education 
8.13 	institution regulation or policy providing eligibility for a resident tuition rate or its 
8.14 	equivalent to a student.

8.15 	EFFECTIVE DATE. This section is effective for academic terms beginning after 
8.16 	August 1, 2014.

8.17 	Sec. 7. Minnesota Statutes 2012, section 136A.01, subdivision 2, is amended to read:
8.18 		Subd. 2.Responsibilities. (a) The Minnesota Office of Higher Education is 
8.19 	responsible for:
8.20 	(1) necessary state level administration of financial aid programs, including 
8.21 	accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 
8.22 	financial aid programs to the governor and the legislature;
8.23 	(2) approval, registration, licensing, and financial aid eligibility of private collegiate 
8.24 	and career schools, under sections 136A.61 to 136A.71 and chapter 141;
8.25 	(3) determining whether to enter into an interstate reciprocity agreement regarding 
8.26 	postsecondary distance education;
8.27 	(3) (4) negotiating and administering reciprocity agreements;
8.28 	(4) (5) publishing and distributing financial aid information and materials, and other 
8.29 	information and materials under section 136A.87, to students and parents;
8.30 	(5) (6) collecting and maintaining student enrollment and financial aid data and 
8.31 	reporting data on students and postsecondary institutions to develop and implement a 
8.32 	process to measure and report on the effectiveness of postsecondary institutions;
9.1 	(6) (7) administering the federal programs that affect students and institutions on a 
9.2 	statewide basis; and
9.3 	(7) (8) prescribing policies, procedures, and rules under chapter 14 necessary to 
9.4 	administer the programs under its supervision.
9.5 	(b) The office may match individual student data from the student record enrollment 
9.6 	database with individual student financial aid data collected and maintained by the office 
9.7 	in order to audit or evaluate federal or state supported education programs as permitted by 
9.8 	United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title 
9.9 	34, section 99.35. The office shall not release data that personally identifies parents or 
9.10 	students other than to employees and contractors of the office.

9.11 	Sec. 8. Minnesota Statutes 2012, section 136A.1702, is amended to read:
9.12 	136A.1702 LEGISLATIVE OVERSIGHT.
9.13 	The office shall notify the chairs of the legislative committees with primary 
9.14 	jurisdiction over higher education finance of any proposed material change to any of its 
9.15 	student loan programs, including loan refinancing under section 136A.1704,  prior to 
9.16 	making the change.

9.17 	Sec. 9. [136A.1704] STUDENT LOAN REFINANCING.
9.18 	The office may refinance student and parent loans as provided by this section and 
9.19 	on other terms and conditions the office prescribes. The office may establish credit 
9.20 	requirements for borrowers and determine what types of student and parent loans will be 
9.21 	eligible for refinancing. The refinanced loan need not have been made through a loan 
9.22 	program administered by the office. Loans shall be made with available funds in the 
9.23 	loan capital fund under section 136A.1785. The maximum amount of outstanding loans 
9.24 	refinanced under this section may not exceed $100,000,000. The maximum loan under 
9.25 	this section may not exceed $70,000.

9.26 	EFFECTIVE DATE. This section is effective the day following final enactment, 
9.27 	provided no loans may be refinanced prior to June 1, 2015.

9.28 	Sec. 10. Minnesota Statutes 2012, section 136A.1785, is amended to read:
9.29 	136A.1785 LOAN CAPITAL FUND.
9.30 	The office may deposit and hold assets derived from the operation of its student loan 
9.31 	programs and refinanced education loans authorized by this chapter in a fund known as 
9.32 	the loan capital fund. Assets in the loan capital fund are available to the office solely 
10.1 	for carrying out the purposes and terms of sections 136A.15 to 136A.1703 136A.1704, 
10.2 	including, but not limited to, making student loans authorized by this chapter, refinancing 
10.3 	education loans authorized by this chapter, paying administrative expenses associated with 
10.4 	the operation of its student loan programs, repurchasing defaulted student loans, and 
10.5 	paying expenses in connection with the issuance of revenue bonds authorized under this 
10.6 	chapter. Assets in the loan capital fund may be invested as provided in sections 11A.24
10.7 	and 136A.16, subdivision 8. All interest and earnings from the investment of the loan 
10.8 	capital fund inure to the benefit of the fund and are deposited into the fund.

10.9 	Sec. 11. [136A.658] EXEMPTION; STATE AUTHORIZATION RECIPROCITY 
10.10 	AGREEMENT SCHOOLS.
10.11 	(a) The office may participate in an interstate reciprocity agreement regarding 
10.12 	postsecondary distance education if it determines that participation is in the best interest of 
10.13 	Minnesota postsecondary students.
10.14 	(b) If the office decides to participate in an interstate reciprocity agreement, an 
10.15 	institution that meets the following requirements is exempt from the provisions of sections 
10.16 	136A.61 to 136A.71:
10.17 	(1) the institution is situated in a state which is also participating in the interstate 
10.18 	reciprocity agreement;
10.19 	(2) the institution has been approved to participate in the interstate reciprocity 
10.20 	agreement by the institution's home state and other entities with oversight of the interstate 
10.21 	reciprocity agreement; and 
10.22 	(3) the institution has elected to participate in and operate in compliance with the 
10.23 	terms of the interstate reciprocity agreement.

10.24 	Sec. 12. MINNESOTA STATE COLLEGES AND UNIVERSITIES 
10.25 	BACCALAUREATE DEGREE COMPLETION PLAN.
 10.26 	The Board of Trustees of the Minnesota State Colleges and Universities shall develop 
10.27 	a plan to implement multi-campus articulation agreements that lead to baccalaureate 
10.28 	degree completion upon earning the number of credits required for the degree minus 60 
10.29 	credits at a system university after transfer to the system university by a student with an 
10.30 	associate in arts degree, associate of science degree, or an associate of fine arts (AFA) 
10.31 	degree from a system college. The board shall assign the task of developing the plan to 
10.32 	the appropriate committee formed under the board's "Charting the Future" initiative. The 
10.33 	board shall report on this plan to the legislative committees with primary jurisdiction over 
10.34 	higher education finance and policy by March 15, 2015.

11.1 	Sec. 13. REPORT; OFFICE OF HIGHER EDUCATION.
 11.2 	The Office of Higher Education shall, by February 1, 2015, report to the committees 
11.3 	of the legislature with primary jurisdiction over higher education policy and finance, its 
11.4 	plans and proposed terms and conditions for operating a student loan refinancing program 
11.5 	under section 136A.1704, along with any recommended legislation.

11.6 	Sec. 14. STUDY ABROAD PROGRAM; ASSESSMENT OF APPROPRIATE 
11.7 	REGULATION.
 11.8 	The Office of Higher Education shall, using existing staff and budget, assess the 
11.9 	appropriate state regulation of postsecondary study abroad programs. The assessment 
11.10 	must be based on a balanced approach of protecting the health and safety of program 
11.11 	participants and maintaining the opportunity of students to study abroad. The office shall 
11.12 	report the results of its assessment with any legislative recommendation by February 1, 
11.13 	2015, to the committees of the legislature with primary jurisdiction over higher education.

11.14 	Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.
 11.15 	For fiscal years 2016 to 2041, $3,500,000 is added to the base operations and 
11.16 	maintenance appropriation to the Board of Regents of the University of Minnesota in 
11.17 	Laws 2013, chapter 99, article 1, section 5.

11.18 	Sec. 16. JAMES FORD BELL NATURAL HISTORY MUSEUM AND 
11.19 	PLANETARIUM.
 11.20 	The Board of Regents of the University of Minnesota is requested to complete the 
11.21 	design of and to construct, furnish, and equip a new James Ford Bell Natural History 
11.22 	Museum and Planetarium on the St. Paul campus.

11.23 	ARTICLE 2
11.24 	APPROPRIATIONS FOR DEPARTMENT OF EMPLOYMENT AND 
11.25 	ECONOMIC DEVELOPMENT, DEPARTMENT OF LABOR AND INDUSTRY, 
11.26 	DEPARTMENT OF COMMERCE, AND HOUSING FINANCE

11.27	Section 1. APPROPRIATIONS.
 	
11.28 	The sums shown in the columns under "Appropriations" are added to or, if shown 
11.29 	in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1, 
11.30 	or other law to the specified agencies. The appropriations are from the general fund, or 
11.31 	another named fund, and are available for the fiscal years indicated for each purpose. The 
11.32 	figures "2014" and "2015" used in this article mean that the appropriations listed under 
11.33 	them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 
12.1 	Appropriations for the fiscal year ending June 30, 2014, are effective the day following 
12.2 	final enactment. Reductions may be taken in either fiscal year.

12.3				APPROPRIATIONS
	
12.4				Available for the Year
	
12.5				Ending June 30
	
12.6					2014
		2015

12.7
12.8	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

12.9	Subdivision 1.Total Appropriation
 	$
	0
	$
	 29,475,000

12.10	Appropriations by Fund
	
12.11	General
	-0-
	 28,175,000
	
12.12
12.13	Workforce 
Development
	-0-
	1,300,000
	
12.14 	The amounts that may be spent for each 
12.15 	purpose are specified in the following 
12.16 	subdivisions.

12.17
12.18	Subd. 2.Business and Community 
Development
 		0
		 27,225,000
	
12.19 	(a)(1) $20,000,000 in fiscal year 2015 is 
12.20 	from the general fund for deposit in the 
12.21 	border-to-border broadband fund account 
12.22 	created under Minnesota Statutes, section 
12.23 	116J.396, and may be used for the purposes 
12.24 	provided in Minnesota Statutes, section 
12.25 	116J.395, and as provided for under clause 
12.26 	(2). This is a onetime appropriation and is 
12.27 	available until June 30, 2017.
12.28 	(2) Of the appropriation under clause (1), up 
12.29 	to three percent is for: (i) costs incurred by 
12.30 	the commissioner to administer Minnesota 
12.31 	Statutes, section 116J.395; and (ii) one 
12.32 	or more contracts with an independent 
12.33 	organization that has extensive experience 
12.34 	working with Minnesota broadband 
12.35 	providers to continue to:
13.1 	(A) collect broadband deployment data from 
13.2 	Minnesota providers, verify its accuracy 
13.3 	through on-the-ground testing, and create 
13.4 	state and county maps available to the public 
13.5 	showing the availability of broadband service 
13.6 	at various upload and download speeds 
13.7 	throughout Minnesota, in order to measure 
13.8 	progress in achieving the state's broadband 
13.9 	goals established in Minnesota Statutes, 
13.10 	section 237.012;
13.11 	(B) analyze the deployment data collected to 
13.12 	help inform future investments in broadband 
13.13 	infrastructure; and
13.14 	(C) conduct business and residential surveys 
13.15 	that measure broadband adoption and use in 
13.16 	the state.
13.17 	Data provided by a broadband provider to the 
13.18 	contractor under this paragraph is nonpublic 
13.19 	data under Minnesota Statutes, section 13.02, 
13.20 	subdivision 9. Maps produced under this 
13.21 	paragraph are public data under Minnesota 
13.22 	Statutes, section 13.03.
13.23 	(b) $475,000 in fiscal year 2015 is from the 
13.24 	general fund for a grant to the Southwest 
13.25 	Initiative Foundation for business revolving 
13.26 	loans or other lending programs at below 
13.27 	market interest rates. This is a onetime 
13.28 	appropriation.
13.29 	(c) $475,000 in fiscal year 2015 is from the 
13.30 	general fund for a grant to the West Central 
13.31 	Initiative Foundation for business revolving 
13.32 	loans or other lending programs at below 
13.33 	market interest rates. This is a onetime 
13.34 	appropriation.
14.1 	(d) $475,000 in fiscal year 2015 is from the 
14.2 	general fund for a grant to the Southern 
14.3 	Minnesota Initiative Foundation for business 
14.4 	revolving loans or other lending programs at 
14.5 	below market interest rates. This is a onetime 
14.6 	appropriation.
14.7 	(e) $475,000 in fiscal year 2015 is from the 
14.8 	general fund for a grant to the Northwest 
14.9 	Minnesota Foundation for business revolving 
14.10 	loans or other lending programs at below 
14.11 	market interest rates. This is a onetime 
14.12 	appropriation.
14.13 	(f) $475,000 in fiscal year 2015 is from the 
14.14 	general fund for a grant to the Initiative 
14.15 	Foundation for business revolving loans or 
14.16 	other lending programs at below market 
14.17 	interest rates. This is a onetime appropriation.
14.18 	(g) $475,000 in fiscal year 2015 is from the 
14.19 	general fund for a grant to the Northland 
14.20 	Foundation for business revolving loans or 
14.21 	other lending programs at below market 
14.22 	interest rates. This is a onetime appropriation.
14.23 	(h) $650,000 in fiscal year 2015 is from 
14.24 	the general fund for a grant to the Urban 
14.25 	Initiative Board under Minnesota Statutes, 
14.26 	chapter 116M, for loans at below market 
14.27 	interest rates, business technical assistance, 
14.28 	or organizational capacity building. Funds 
14.29 	available under this paragraph must be 
14.30 	allocated as follows: (1) 50 percent of 
14.31 	the funds must be allocated for projects 
14.32 	in the counties of Dakota, Ramsey, and 
14.33 	Washington; and (2) 50 percent of the funds 
14.34 	must be allocated for projects in the counties 
15.1 	of Anoka, Carver, Hennepin, and Scott. This 
15.2 	is a onetime appropriation.
15.3 	(i) $500,000 in fiscal year 2015 is from the 
15.4 	general fund for grants to small business 
15.5 	development centers under Minnesota 
15.6 	Statutes, section 116J.68. Funds made 
15.7 	available under this paragraph may be used to 
15.8 	match funds under the federal Small Business 
15.9 	Development Center (SBDC) program under 
15.10 	United States Code, title 15, section 648, to 
15.11 	provide consulting and technical services, or 
15.12 	to build additional SBDC network capacity 
15.13 	to serve entrepreneurs and small businesses. 
15.14 	The commissioner shall allocate funds 
15.15 	equally among the nine regional centers and 
15.16 	lead center. This is a onetime appropriation.
15.17 	(j) $400,000 in fiscal year 2015 is from the 
15.18 	general fund for the innovation voucher pilot 
15.19 	program. This is a onetime appropriation 
15.20 	and is available until June 30, 2017. Of 
15.21 	this amount, up to five percent may be used 
15.22 	for administration. Vouchers require a 50 
15.23 	percent match by recipients.
15.24 	(k) $475,000 in fiscal year 2015 is from 
15.25 	the general fund for the Minnesota Jobs 
15.26 	Skills Partnership program under Minnesota 
15.27 	Statutes, section 116L.02. This is a onetime 
15.28 	appropriation.
15.29 	(l) $2,200,000  in fiscal year 2015 is from 
15.30 	the general fund for the greater Minnesota 
15.31 	business development public infrastructure 
15.32 	grant program under Minnesota Statutes, 
15.33 	section 116J.431, for grants to design, 
15.34 	construct, prepare, and improve infrastructure 
15.35 	for economic development. This is a onetime 
16.1 	appropriation and is available until June 30, 
16.2 	2017.
16.3 	(m) $150,000  in fiscal year 2015 is from 
16.4 	the general fund for a grant to the city of 
16.5 	Proctor to design and construct a sand and 
16.6 	salt storage facility to prevent runoff into 
16.7 	surface water. This appropriation is not 
16.8 	available until the commissioner determines 
16.9 	that at least an equal amount is committed to 
16.10 	the project from nonstate sources. This is a 
16.11 	onetime appropriation.

16.12	Subd. 3.Workforce Development
 		0
		1,050,000
	
16.13 	(a) $300,000 in fiscal year 2015 is from the 
16.14 	workforce development fund for workforce 
16.15 	program outcome activities under Minnesota 
16.16 	Statutes, section 116L.98. This is a onetime 
16.17 	appropriation.
16.18 	(b) $250,000 in fiscal year 2015 is from 
16.19 	the workforce development fund for a 
16.20 	grant to the Northwest Indian Opportunities 
16.21 	Industrialization Center and may be used for 
16.22 	a green jobs deconstruction pilot program in 
16.23 	collaboration with a research institute and 
16.24 	a nonprofit organization with experience 
16.25 	developing deconstruction jobs, new 
16.26 	products from reclaimed materials, and reuse 
16.27 	of materials. This is a onetime appropriation.
16.28 	(c) $250,000 in fiscal year 2015 is from the 
16.29 	workforce development fund for a grant 
16.30 	to the Northeast Minnesota Office of Job 
16.31 	Training. This is a onetime appropriation.
16.32 	(d) $250,000 in fiscal year 2015 is from the 
16.33 	workforce development fund for a grant to 
16.34 	Twin Cities RISE! to provide job training. 
16.35 	This is a onetime appropriation.

17.1	Subd. 4.General Support Services
 		0
		500,000
	
17.2 	$500,000 in fiscal year 2015 is from the 
17.3 	general fund for establishing and operating 
17.4 	the interagency Olmstead Implementation 
17.5 	Office. The base appropriation for the office 
17.6 	is $875,000 each year for fiscal years 2016 
17.7 	and 2017. The state recognizes its obligations 
17.8 	under Jensen, et al. v. Minnesota Department 
17.9 	of Human Services, et al. During the 2015 
17.10 	legislative session, the legislature intends to 
17.11 	review the funding levels provided for the 
17.12 	Olmstead Implementation Office to ensure 
17.13 	that amounts sufficient to comply with the 
17.14 	obligations imposed by the court's order are 
17.15 	appropriated in fiscal years 2016 and 2017.

17.16	Subd. 5.Vocational Rehabilitation
 		-0-
		700,000

17.17	Appropriations by Fund
	
17.18	General
	-0-
	450,000
	
17.19
17.20	Workforce 
Development
	-0-
	250,000
	
17.21 	(a) $250,000 in fiscal year 2015 is from 
17.22 	the workforce development fund for 
17.23 	rate increases to providers of extended 
17.24 	employment services for persons with severe 
17.25 	disabilities under Minnesota Statutes, section 
17.26 	268A.15. This is a onetime appropriation.
17.27 	(b) $450,000 in fiscal year 2015 is from the 
17.28 	general fund for grants to the eight Minnesota 
17.29 	Centers for Independent Living. This is a 
17.30 	onetime appropriation.

17.31	Subd. 6.Transfer
 					
17.32 	The commissioner shall transfer $7,100,000 
17.33 	from the Minnesota minerals 21st century 
17.34 	fund to the commissioner of the Iron Range 
17.35 	Resources and Rehabilitation Board for 
18.1 	a grant or forgivable loan to the city of 
18.2 	Hoyt Lakes for building and municipal 
18.3 	infrastructure in support of a biochemical 
18.4 	manufacturing project to be located in the 
18.5 	city. This transfer is available until June 30, 
18.6 	2018.

18.7
18.8	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY
 			$
	250,000
	
18.9 	For the purpose of establishing competency 
18.10 	standards for programs in advanced 
18.11 	manufacturing, health care services, 
18.12 	information technology, and agriculture. 
18.13 	This is a onetime appropriation.

18.14	Sec. 4. DEPARTMENT OF COMMERCE
 	$
	(350,000)
	$
	-0-
	
18.15 	$350,000 in fiscal year 2014 is a onetime 
18.16 	reduction to the appropriation for the gold 
18.17 	bullion dealer registration program.

18.18	Sec. 5. HOUSING FINANCE AGENCY
 	$
	-0-
	$
	2,200,000
	
18.19 	$2,200,000 in fiscal year 2015 is from the 
18.20 	general fund for up to two grants for housing 
18.21 	projects, not to exceed $1,100,000 per grant 
18.22 	or 50 percent of the total development costs 
18.23 	of the housing project, whichever is less, in 
18.24 	communities that have:
18.25 	(1) low housing vacancy rates; and
18.26 	(2) education and training centers for jobs in 
18.27 	the natural resources or aviation maintenance 
18.28 	fields, or other fields with anticipated 
18.29 	significant job growth potential.
18.30 	Funds must be used for grants for housing 
18.31 	projects with financial and in-kind 
18.32 	contributions from nonagency resources 
18.33 	that, when combined with a grant under this 
19.1 	section, are sufficient to complete the housing 
19.2 	project. This is a onetime appropriation. If 
19.3 	funds remain uncommitted by the end of 
19.4 	calendar year 2015, the agency may transfer 
19.5 	the uncommitted funds to the economic 
19.6 	development and housing challenge program 
19.7 	under Minnesota Statutes, section 462A.33.

19.8 	Sec. 6. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

19.919.10
	Subd. 2.Business and Community 
Development
 		53,642,000
		45,407,000

19.11	Appropriations by Fund
	
19.12	General
	52,942,000
	44,707,000
	
19.13	Remediation
	700,000
	700,000
	
19.14 	(a)(1) $15,000,000 each year is for the 
19.15 	Minnesota investment fund under Minnesota 
19.16 	Statutes, section 116J.8731. Of this amount, 
19.17 	the commissioner of employment and 
19.18 	economic development may use up to three 
19.19 	percent for administrative expenses and 
19.20 	technology upgrades. This appropriation is 
19.21 	available until spent.
19.22 	(2) Of the amount available under clause 
19.23 	(1), up to $3,000,000 in fiscal year 2014 
19.24 	is for a loan to facilitate initial investment 
19.25 	in the purchase and operation of a 
19.26 	biopharmaceutical manufacturing facility. 
19.27 	This loan is not subject to the loan limitations 
19.28 	under Minnesota Statutes, section 116J.8731, 
19.29 	and shall be forgiven by the commissioner 
19.30 	of employment and economic development 
19.31 	upon verification of meeting performance 
19.32 	goals. Purchases related to and for the 
19.33 	purposes of this loan award must be made 
19.34 	between January 1, 2013, and June 30, 2015. 
20.1 	The amount under this clause is available 
20.2 	until expended.
20.3 	(3) Of the amount available under clause (1), 
20.4 	up to $2,000,000 is available for subsequent 
20.5 	investment in the biopharmaceutical facility 
20.6 	project in clause (2). The amount under this 
20.7 	clause is available until expended. Loan 
20.8 	thresholds under clause (2) must be achieved 
20.9 	and maintained to receive funding. Loans 
20.10 	are not subject to the loan limitations under 
20.11 	Minnesota Statutes, section 116J.8731, and 
20.12 	shall be forgiven by the commissioner of 
20.13 	employment and economic development 
20.14 	upon verification of meeting performance 
20.15 	goals. Purchases related to and for the 
20.16 	purposes of loan awards must be made during 
20.17 	the biennium the loan was received.
20.18 	(4) Notwithstanding any law to the contrary, 
20.19 	the biopharmaceutical manufacturing facility 
20.20 	in this paragraph shall be deemed eligible 
20.21 	for the Minnesota job creation fund under 
20.22 	Minnesota Statutes, section 116J.8748, 
20.23 	by having at least $25,000,000 in capital 
20.24 	investment and 190 retained employees.
20.25 	(5) For purposes of clauses (1) to (4), 
20.26 	"biopharmaceutical" and "biologics" are 
20.27 	interchangeable and mean medical drugs 
20.28 	or medicinal preparations produced using 
20.29 	technology that uses biological systems, 
20.30 	living organisms, or derivatives of living 
20.31 	organisms, to make or modify products or 
20.32 	processes for specific use. The medical drugs 
20.33 	or medicinal preparations include but are not 
20.34 	limited to proteins, antibodies, nucleic acids, 
20.35 	and vaccines.
21.1 	(b) $12,000,000 each year is for the 
21.2 	Minnesota job creation fund under Minnesota 
21.3 	Statutes, section 116J.8748. Of this amount, 
21.4 	the commissioner of employment and 
21.5 	economic development may use up to three 
21.6 	percent for administrative expenses. This 
21.7 	appropriation is available until spent. The 
21.8 	base funding for this program shall be 
21.9 	$12,500,000 each year in the fiscal year 
21.10 	2016-2017 biennium.
21.11 	(c) $1,272,000 each year is from the 
21.12 	general fund for contaminated site cleanup 
21.13 	and development grants under Minnesota 
21.14 	Statutes, sections 116J.551 to 116J.558. This 
21.15 	appropriation is available until expended.
21.16 	(d) $700,000 each year is from the 
21.17 	remediation fund for contaminated site 
21.18 	cleanup and development grants under 
21.19 	Minnesota Statutes, sections 116J.551 to 
21.20 	116J.558. This appropriation is available 
21.21 	until expended.
21.22 	(e) $1,425,000 the first year and $1,425,000 
21.23 	the second year are from the general fund for 
21.24 	the business development competitive grant 
21.25 	program. Of this amount, up to five percent 
21.26 	is for administration and monitoring of the 
21.27 	business development competitive grant 
21.28 	program. All grant awards shall be for two 
21.29 	consecutive years. Grants shall be awarded 
21.30 	in the first year.
21.31 	(f) $4,195,000 each year is from the general 
21.32 	fund for the Minnesota job skills partnership 
21.33 	program under Minnesota Statutes, sections 
21.34 	116L.01 to 116L.17. If the appropriation for 
21.35 	either year is insufficient, the appropriation 
22.1 	for the other year is available. This 
22.2 	appropriation is available until spent.
22.3 	(g) $6,000,000 the first year is from the 
22.4 	general fund for the redevelopment program 
22.5 	under Minnesota Statutes, section 116J.571. 
22.6 	This is a onetime appropriation and is 
22.7 	available until spent.
22.8 	(h) $12,000 each year is from the general 
22.9 	fund for a grant to the Upper Minnesota Film 
22.10 	Office.
22.11 	(i) $325,000 each year is from the general 
22.12 	fund for the Minnesota Film and TV Board. 
22.13 	The appropriation in each year is available 
22.14 	only upon receipt by the board of $1 in 
22.15 	matching contributions of money or in-kind 
22.16 	contributions from nonstate sources for every 
22.17 	$3 provided by this appropriation, except that 
22.18 	each year up to $50,000 is available on July 
22.19 	1 even if the required matching contribution 
22.20 	has not been received by that date.
22.21 	(j) $100,000 each year is for a grant to the 
22.22 	Northern Lights International Music Festival.
22.23 	(k) $5,000,000 each year is from the general 
22.24 	fund for a grant to the Minnesota Film 
22.25 	and TV Board for the film production jobs 
22.26 	program under Minnesota Statutes, section 
22.27 	116U.26. This appropriation is available 
22.28 	until expended. The base funding for this 
22.29 	program shall be $1,500,000 each year in the 
22.30 	fiscal year 2016-2017 biennium.
22.31 	(l) $375,000 each year is from the general 
22.32 	fund for a grant to Enterprise Minnesota, Inc., 
22.33 	for the small business growth acceleration 
22.34 	program under Minnesota Statutes, section 
22.35 	116O.115. This is a onetime appropriation.
23.1 	(m) $160,000 each year is from the general 
23.2 	fund for a grant to develop and implement 
23.3 	a southern and southwestern Minnesota 
23.4 	initiative foundation collaborative pilot 
23.5 	project. Funds available under this paragraph 
23.6 	must be used to support and develop 
23.7 	entrepreneurs in diverse populations in 
23.8 	southern and southwestern Minnesota. This 
23.9 	is a onetime appropriation and is available 
23.10 	until expended. 
23.11 	(n) $100,000 each year is from the general 
23.12 	fund for the Center for Rural Policy 
23.13 	and Development. This is a onetime 
23.14 	appropriation.
23.15 	(o) $250,000 each year is from the general 
23.16 	fund for the Broadband Development Office.
23.17 	(p) $250,000 the first year is from the 
23.18 	general fund for a onetime grant to the St. 
23.19 	Paul Planning and Economic Development 
23.20 	Department for neighborhood stabilization 
23.21 	use in NSP3.
23.22 	(q) $1,235,000 the first year is from the 
23.23 	general fund for a onetime grant to a city 
23.24 	of the second class that is designated as an 
23.25 	economically depressed area by the United 
23.26 	States Department of Commerce. The 
23.27 	appropriation is for economic development, 
23.28 	redevelopment, and job creation programs 
23.29 	and projects. This appropriation is available 
23.30 	until expended.
23.31 	(r) $875,000 each year is from the general 
23.32 	fund for the Host Community Economic 
23.33 	Development Program established in 
23.34 	Minnesota Statutes, section 116J.548.
24.1 	(s) $750,000 the first year is from the general 
24.2 	fund for a onetime grant to the city of Morris 
24.3 	for loans or grants to agricultural processing 
24.4 	facilities for energy efficiency improvements. 
24.5 	Funds available under this section shall be 
24.6 	used to increase conservation and promote 
24.7 	energy efficiency through retrofitting existing 
24.8 	systems and installing new systems to 
24.9 	recover waste heat from industrial processes 
24.10 	and reuse energy. This appropriation is not 
24.11 	available until the commissioner determines 
24.12 	that at least $1,250,000 a match of $750,000
24.13 	 is committed to the project from nonpublic 
24.14 	sources. This appropriation is available until 
24.15 	expended.

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

24.17 	Sec. 7. Laws 2013, chapter 85, article 1, section 3, subdivision 5, is amended to read:

24.18	Subd. 5.Minnesota Trade Office
 		2,322,000
		2,292,000
	
24.19 	(a) $330,000 in fiscal year 2014 and $300,000 
24.20 	in fiscal year 2015 are for the STEP grants 
24.21 	in Minnesota Statutes, section 116J.979. Of 
24.22 	the fiscal year 2014 appropriation, $30,000 
24.23 	is available for expenditure until June 30, 
24.24 	2015, for establishing trade, export, and 
24.25 	cultural exchange relations between the state 
24.26 	of Minnesota and east African nations.
24.27 	(b) $180,000 in fiscal year 2014 and 
24.28 	$180,000 in fiscal year 2015 are for the Invest 
24.29 	Minnesota marketing initiative in Minnesota 
24.30 	Statutes, section 116J.9781. Notwithstanding 
24.31 	any other law, this provision does not expire.
24.32 	(c) $270,000 each year is from the general 
24.33 	fund for the expansion of Minnesota Trade 
25.1 	Offices under Minnesota Statutes, section 
25.2 	116J.978.
25.3 	(d) $50,000 each year is from the general 
25.4 	fund for the trade policy advisory group 
25.5 	under Minnesota Statutes, section 116J.9661.
25.6 	(e) The commissioner of employment and 
25.7 	economic development, in consultation 
25.8 	with the commissioner of agriculture, shall 
25.9 	identify and increase export opportunities for 
25.10 	Minnesota agricultural products.

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

25.12 	Sec. 8. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

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

25.14	Appropriations by Fund
	
25.15	General
	20,861,000
	20,861,000
	
25.16
25.17	Workforce 
Development
	6,830,000
	6,830,000
	
25.18 	(a) $10,800,000 each year is from the general 
25.19 	fund for the state's vocational rehabilitation 
25.20 	program under Minnesota Statutes, chapter 
25.21 	268A.
25.22 	(b) $2,261,000 each year is from the general 
25.23 	fund for grants to centers for independent 
25.24 	living under Minnesota Statutes, section 
25.25 	268A.11.
25.26 	(c) $5,745,000 each year from the general 
25.27 	fund and $6,830,000 each year from the 
25.28 	workforce development fund is for extended 
25.29 	employment services for persons with 
25.30 	severe disabilities under Minnesota Statutes, 
25.31 	section 268A.15. The allocation of extended 
25.32 	employment funds to Courage Center from 
25.33 	July 1, 2012 to June 30, 2013 must be 
25.34 	contracted to Allina Health systems from 
26.1 	July 1, 2013 to June 30, 2014 2015 to provide 
26.2 	extended employment services in accordance 
26.3 	with Minnesota Rules, parts 3300.2005 to 
26.4 	3300.2055.
26.5 	(d) $2,055,000 each year is from the general 
26.6 	fund for grants to programs that provide 
26.7 	employment support services to persons with 
26.8 	mental illness under Minnesota Statutes, 
26.9 	sections 268A.13 and 268A.14. The base 
26.10 	appropriation for this program is $1,555,000 
26.11 	each year in the fiscal year 2016-2017 
26.12 	biennium.

26.13 	Sec. 9. Laws 2013, chapter 85, article 1, section 4, subdivision 1, is amended to read:

26.14	Subdivision 1.Total Appropriation
 	$
	58,748,000
	$
	42,748,000
	
26.15 	The amounts that may be spent for each 
26.16 	purpose are specified in the following 
26.17 	subdivisions.
26.18 	Unless otherwise specified, this appropriation 
26.19 	is for transfer to the housing development 
26.20 	fund for the programs specified in this 
26.21 	section. Except as otherwise indicated, this 
26.22 	transfer is part of the agency's permanent 
26.23 	budget base.
26.24 	The Housing Finance Agency must make 
26.25 	continuous improvements to its ongoing 
26.26 	efforts to reduce the racial and ethnic 
26.27 	inequalities in homeownership rates and 
26.28 	must seek opportunities to deploy increasing 
26.29 	levels of resources toward these efforts.

26.30 	Sec. 10. Laws 2013, chapter 85, article 1, section 4, subdivision 2, is amended to read:

26.31	Subd. 2.Challenge Program
 		19,203,000
		9,203,000
	
27.1 	(a) This appropriation is for the economic 
27.2 	development and housing challenge program 
27.3 	under Minnesota Statutes, section 462A.33. 
27.4 	The agency must continue to strengthen its 
27.5 	efforts to address the disparity rate between 
27.6 	white households and indigenous American 
27.7 	Indians and communities of color. Of this 
27.8 	amount, $1,208,000 each year shall be made 
27.9 	available during the first 11 months of the 
27.10 	fiscal year exclusively for housing projects 
27.11 	for American Indians. Any funds not 
27.12 	committed to housing projects for American 
27.13 	Indians in the first 11 months of the fiscal year 
27.14 	shall be available for any eligible activity 
27.15 	under Minnesota Statues, section 462A.33.
27.16 	(b) Of this amount, $10,000,000 is a onetime 
27.17 	appropriation and is targeted for housing in 
27.18 	communities and regions that have:
27.19 	(1)(i) low housing vacancy rates; and
27.20 	(ii) cooperatively developed a plan that 
27.21 	identifies current and future housing needs; 
27.22 	and
27.23 	(2)(i) experienced job growth since 2005 and 
27.24 	have at least 2,000 jobs within the commuter 
27.25 	shed;
27.26 	(ii) evidence of anticipated job expansion; or
27.27 	(iii) a significant portion of area employees 
27.28 	who commute more than 30 miles between 
27.29 	their residence and their employment.
27.30 	(c) Priority shall be given to programs and 
27.31 	projects that are land trust programs and 
27.32 	programs that work in coordination with a 
27.33 	land trust program.
28.1 	(d) Of this amount, $500,000 is for 
28.2 	homeownership opportunities for families 
28.3 	who have been evicted or been given 
28.4 	notice of an eviction due to a disabled 
28.5 	child in the home, including adjustments 
28.6 	for the incremental increase in costs of 
28.7 	addressing the unique housing needs of those 
28.8 	households. Any funds not expended for this 
28.9 	purpose may be returned to the challenge 
28.10 	fund after October 31, 2014.
28.11 	(d) (e) The base funding for this program in 
28.12 	the 2016-2017 biennium is $12,925,000 each 
28.13 	year.

28.14 	Sec. 11. Laws 2013, chapter 85, article 1, section 5, is amended to read:

28.15	Sec. 5. EXPLORE MINNESOTA TOURISM
 	$
	13,988,000
	$
	13,988,000
	
28.16 	(a) To develop maximum private sector 
28.17 	involvement in tourism, $500,000 in fiscal 
28.18 	year 2014 and $500,000 in fiscal year 2015 
28.19 	must be matched by Explore Minnesota 
28.20 	Tourism from nonstate sources. Each $1 of 
28.21 	state incentive must be matched with $6 of 
28.22 	private sector funding. Cash match is defined 
28.23 	as revenue to the state or documented cash 
28.24 	expenditures directly expended to support 
28.25 	Explore Minnesota Tourism programs. Up 
28.26 	to one-half of the private sector contribution 
28.27 	may be in-kind or soft match. The incentive 
28.28 	in fiscal year 2014 shall be based on fiscal 
28.29 	year 2013 private sector contributions. The 
28.30 	incentive in fiscal year 2015 shall be based on 
28.31 	fiscal year 2014 private sector contributions. 
28.32 	This incentive is ongoing.
28.33 	Funding for the marketing grants is available 
28.34 	either year of the biennium. Unexpended 
29.1 	grant funds from the first year are available 
29.2 	in the second year.
29.3 	(b) $100,000 of the second year appropriation 
29.4 	is for a grant to the Mille Lacs Tourism 
29.5 	Council to enhance marketing activities 
29.6 	related to tourism promotion in the Mille 
29.7 	Lacs Lake area.
29.8 	(c) $100,000 of the second year appropriation 
29.9 	is for additional marketing activities.

29.10 	Sec. 12. Laws 2013, chapter 85, article 1, section 13, subdivision 5, is amended to read:

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

29.12	Appropriations by Fund
	
29.13	General
	1,009,000
	1,009,000
	
29.14	Special Revenue
	940,000
	1,240,000
	
29.15 	$940,000 in fiscal year 2014 and $1,240,000 
29.16 	in fiscal year 2015 are appropriated to the 
29.17 	commissioner from the telecommunication 
29.18 	access fund for the following transfers. This 
29.19 	appropriation is added to the department's 
29.20 	base.
29.21 	(1) $500,000 in fiscal year 2014 and $800,000 
29.22 	in fiscal year 2015 to the commissioner of 
29.23 	human services to supplement the ongoing 
29.24 	operational expenses of the Commission 
29.25 	of Deaf, DeafBlind, and Hard-of-Hearing 
29.26 	Minnesotans;
29.27 	(2) $290,000 in fiscal year 2014 and $290,000 
29.28 	in fiscal year 2015 to the chief information 
29.29 	officer for the purpose of coordinating 
29.30 	technology accessibility and usability; and
29.31 	(3) $150,000 in fiscal year 2014 and $150,000 
29.32 	in fiscal year 2015 to the Legislative 
29.33 	Coordinating Commission for captioning of 
30.1 	legislative coverage and for a consolidated 
30.2 	access fund for other state agencies. These 
30.3 	transfers are subject to Minnesota Statutes, 
30.4 	section 16A.281.

30.5 	Sec. 13. EXTENDED EMPLOYMENT CARRYFORWARD.
 30.6 	Notwithstanding Minnesota Statutes, section 268A.15, subdivision 8, appropriations 
30.7 	from the general fund and workforce development fund in fiscal years 2014 and 2015 
30.8 	to the commissioner of employment and economic development for the purposes of 
30.9 	Minnesota Statutes, sections 268A.13 and 268A.14, are available until June 30, 2015.

30.10 	Sec. 14. ASSIGNED RISK TRANSFER.
 30.11 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of 
30.12 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
30.13 	Statutes, section 79.252, the commissioner of management and budget shall transfer 
30.14 	the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This 
30.15 	transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 
30.16 	1, paragraph (a), clause (1). This is a onetime transfer.
30.17 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
30.18 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
30.19 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
30.20 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each 
30.21 	year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section 
30.22 	116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 
30.23 	79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in 
30.24 	paragraph (a). The total amount authorized for all transfers under this paragraph must not 
30.25 	exceed $24,100,000. This paragraph expires the day following the transfer in which the 
30.26 	total amount transferred under this paragraph to the Minnesota minerals 21st century 
30.27 	fund equals $24,100,000.
30.28 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of 
30.29 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
30.30 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
30.31 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
30.32 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
30.33 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If 
30.34 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
31.1 	general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes 
31.2 	of section 15. Both the transfer and appropriation under this paragraph are onetime.
31.3 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of 
31.4 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
31.5 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
31.6 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
31.7 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
31.8 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If 
31.9 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
31.10 	general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes 
31.11 	of section 15. Both the transfer and appropriation under this paragraph are onetime.
31.12 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 
31.13 	management and budget shall transfer to the assigned risk plan under Minnesota Statutes, 
31.14 	section 79.252, any unencumbered or unexpended balance of the appropriations under 
31.15 	paragraphs (c) and (d) remaining on June 30, 2017, or the date the commissioner of 
31.16 	commerce determines that an excess surplus in the assigned risk plan does not exist, 
31.17 	whichever occurs earlier.

31.18 	Sec. 15. WORKERS' COMPENSATION SYSTEM REFORM; USE OF FUNDS.
 31.19 	(a) The appropriations under section 14 to the commissioner of labor and industry 
31.20 	are for reform of the workers' compensation system. Funds appropriated under section 
31.21 	14, paragraphs (c) and (d), may be expended by the commissioner only after the advisory 
31.22 	council on workers' compensation created under Minnesota Statutes, section 175.007, has 
31.23 	approved a new system including, but not limited to: a Medicare-based diagnosis-related 
31.24 	group (MS-DRG) or similar system for payment of workers' compensation inpatient 
31.25 	hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up 
31.26 	to $100,000 may be used by the commissioner to develop and implement the new system 
31.27 	approved by the advisory council on workers' compensation.
31.28 	(b) Funds available for expenditure under paragraph (a) may be used by the 
31.29 	commissioner for reimbursement of expenditures that are reasonable and necessary to 
31.30 	defray the costs of the implementation by hospitals, insurers, and self-insured employers 
31.31 	of the new system including, but not limited to: a Medicare-based diagnosis-related group 
31.32 	(MS-DRG) or similar system for payment of workers' compensation inpatient hospital 
31.33 	services, litigation expense reform, worker safety training, administrative costs, or other 
31.34 	related system reform. 
32.1 	(c) For the purposes of this section, reasonable and necessary system reform and 
32.2 	implementation costs include, but are not limited to:
32.3 	(1) the cost of analyzing data to determine the anticipated costs and savings of 
32.4 	implementing the new system;
32.5 	(2) the cost of analyzing system or organizational changes necessary for 
32.6 	implementation;
32.7 	(3) the cost of determining how an organization would implement group or other 
32.8 	software;
32.9 	(4) the cost of upgrading existing software or purchasing new software and other 
32.10 	technology upgrades needed for implementation;
32.11 	(5) the cost of educating and training staff about the new system as applied to 
32.12 	workers' compensation; and 
32.13 	(6) the cost of integrating the new system with electronic billing and remittance 
32.14 	systems.

32.15 	Sec. 16. AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.
 32.16 	(a) The Housing Finance Agency shall provide the chairs and ranking minority 
32.17 	members of the house of representatives and senate committees with jurisdiction over the 
32.18 	agency with the draft and final versions of its affordable housing plan before and after it 
32.19 	has been submitted to the agency board for consideration.
32.20 	(b) The Housing Finance Agency shall annually report to the chairs and ranking 
32.21 	minority members of the house of representatives and senate committees with jurisdiction 
32.22 	over the agency on the progress, if any, the agency has made in closing the racial disparity 
32.23 	gap and low-income concentrated housing disparities.

32.24 	ARTICLE 3
32.25 	JOBS, ECONOMIC DEVELOPMENT, ENERGY, AND LABOR

32.26 	Section 1. Minnesota Statutes 2012, section 13.681, is amended by adding a 
32.27 	subdivision to read:
32.28 		Subd. 9.Community energy efficiency and renewable energy loan. Energy 
32.29 	usage data provided by an industrial, commercial, or health care facility customer for 
32.30 	community energy efficiency and renewable energy loans are governed by section 
32.31 	216C.145, subdivision 3.

32.32 	Sec. 2. [116J.394] DEFINITIONS.
33.1 	(a) For the purposes of sections 116J.394 to 116J.396, the following terms have 
33.2 	the meanings given them.
33.3 	(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, 
33.4 	subdivision 1, paragraph (b).
33.5 	(c) "Broadband infrastructure" means networks of deployed telecommunications 
33.6 	equipment and technologies necessary to provide high-speed Internet access and other 
33.7 	advanced telecommunications services for end users.
33.8 	(d) "Commissioner" means the commissioner of employment and economic 
33.9 	development.
33.10 	(e) "Last-mile infrastructure" means broadband infrastructure that serves as the 
33.11 	final leg connecting the broadband service provider's network to the end-use customer's 
33.12 	on-premises telecommunications equipment.
33.13 	(f) "Middle-mile infrastructure" means broadband infrastructure that links a 
33.14 	broadband service provider's core network infrastructure to last-mile infrastructure.
33.15 	(g) "Political subdivision" means any county, city, town, school district, special 
33.16 	district or other political subdivision, or public corporation.
33.17 	(h) "Underserved areas" means areas of Minnesota in which households or businesses 
33.18 	lack access to wire-line broadband service at speeds that meet the state broadband goals of 
33.19 	ten to 20 megabits per second download and five to ten megabits per second upload.
33.20 	(i) "Unserved areas" means areas of Minnesota in which households or businesses 
33.21 	lack access to wire-line broadband service at speeds that meet a Federal Communications 
33.22 	Commission threshold of four megabits per second download and one megabit per second 
33.23 	upload.

33.24 	Sec. 3. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT 
33.25 	GRANT PROGRAM.
33.26 		Subdivision 1.Establishment. A grant program is established under the Department 
33.27 	of Employment and Economic Development to award grants to eligible applicants in order 
33.28 	to promote the expansion of access to broadband service in unserved or underserved 
33.29 	areas of the state.
33.30 		Subd. 2.Eligible expenditures. Grants may be awarded under this section to fund 
33.31 	the acquisition and installation of middle-mile and last-mile infrastructure that support 
33.32 	broadband service scalable to speeds of at least 100 megabits per second download and 
33.33 	100 megabits per second upload.
33.34 		Subd. 3.Eligible applicants. Eligible applicants for grants awarded under this 
33.35 	section include:
34.1 	(1) an incorporated business or a partnership;
34.2 	(2) a political subdivision;
34.3 	(3) an Indian tribe;
34.4 	(4) a Minnesota nonprofit organization organized under chapter 317A;
34.5 	(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
34.6 	(6) a Minnesota limited liability corporation organized under chapter 322B for the 
34.7 	purpose of expanding broadband access.
34.8 		Subd. 4.Application process. An eligible applicant must submit an application 
34.9 	to the commissioner on a form prescribed by the commissioner. The commissioner shall 
34.10 	develop administrative procedures governing the application and grant award process. 
34.11 	The commissioner shall act as fiscal agent for the grant program and shall be responsible 
34.12 	for receiving and reviewing grant applications and awarding grants under this section.
34.13 		Subd. 5.Application contents. An applicant for a grant under this section shall 
34.14 	provide the following information on the application:
34.15 	(1) the location of the project;
34.16 	(2) the kind and amount of broadband infrastructure to be purchased for the project;
34.17 	(3) evidence regarding the unserved or underserved nature of the community in 
34.18 	which the project is to be located;
34.19 	(4) the number of households passed that will have access to broadband service as a 
34.20 	result of the project, or whose broadband service will be upgraded as a result of the project;
34.21 	(5) significant community institutions that will benefit from the proposed project;
34.22 	(6) evidence of community support for the project;
34.23 	(7) the total cost of the project;
34.24 	(8) sources of funding or in-kind contributions for the project that will supplement 
34.25 	any grant award; and
34.26 	(9) any additional information requested by the commissioner.
34.27 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
34.28 	commissioner shall give priority to applications that are constructed in areas identified by 
34.29 	the director of the Office of Broadband Development as unserved.
34.30 	(b) In evaluating applications and awarding grants, the commissioner may give 
34.31 	priority to applications that:
34.32 	(1) are constructed in areas identified by the director of the Office of Broadband 
34.33 	Development as underserved;
34.34 	(2) offer new or substantially upgraded broadband service to important community 
34.35 	institutions including, but not limited to, libraries, educational institutions, public safety 
34.36 	facilities, and healthcare facilities;
35.1 	(3) facilitate the use of telemedicine and electronic health records;
35.2 	(4) serve economically distressed areas of the state, as measured by indices of 
35.3 	unemployment, poverty, or population loss that are significantly greater than the statewide 
35.4 	average;
35.5 	(5) provide technical support and train residents, businesses, and institutions in the 
35.6 	community served by the project to utilize broadband service;
35.7 	(6) include a component to actively promote the adoption of the newly available 
35.8 	broadband services in the community;
35.9 	(7) provide evidence of strong support for the project from citizens, government, 
35.10 	businesses, and institutions in the community;
35.11 	(8) provide access to broadband service to a greater number of unserved or 
35.12 	underserved households and businesses; or
35.13 	(9) leverage greater amounts of funding for the project from other private and 
35.14 	public sources.
35.15 	(c) The commissioner shall endeavor to award grants under this section to qualified 
35.16 	applicants in all regions of the state.
35.17 		Subd. 7.Limitation. (a) No grant awarded under this section may fund more than 
35.18 	50 percent of the total cost of a project.
35.19 	(b) Grants awarded to a single project under this section must not exceed $5,000,000.

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

35.21 	Sec. 4. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
35.22 		Subdivision 1.Account established. The border-to-border broadband fund account 
35.23 	is established as a separate account in the special revenue fund in the state treasury. The 
35.24 	commissioner shall credit to the account appropriations and transfers to the account. 
35.25 	Earnings, such as interest, dividends, and any other earnings arising from assets of the 
35.26 	account, must be credited to the account. Funds remaining in the account at the end of a 
35.27 	fiscal year are not canceled to the general fund, but remain in the account until expended. 
35.28 	The commissioner shall manage the account.
35.29 		Subd. 2.Expenditures. Money in the account may be used only:
35.30 	(1) for grant awards made under section 116J.395, including costs incurred by the 
35.31 	Department of Employment and Economic Development to administer that section;
35.32 	(2) to supplement revenues raised by bonds sold by local units of government for 
35.33 	broadband infrastructure development; or
35.34 	(3) to contract for the collection of broadband deployment data from providers and 
35.35 	the creation of maps showing the availability of broadband service.
36.1 		Subd. 3.Appropriation. Money in the account is appropriated to the commissioner 
36.2 	for the purposes of subdivision 2.

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

36.4 	Sec. 5. Minnesota Statutes 2012, section 116J.423, subdivision 2, is amended to read:
36.5 		Subd. 2.Use of fund. The commissioner shall use money in the fund to make 
36.6 	loans or equity investments in mineral or taconite processing facilities including, but 
36.7 	not limited to, taconite processing, direct reduction processing, and, steel production
36.8 	 facilities, facilities for the manufacturing of renewable energy products, or facilities for the 
36.9 	manufacturing of biobased or biomass products, and that are located within the taconite 
36.10 	relief tax area as defined under section 273.134. The commissioner must, prior to making 
36.11 	any loans or equity investments and after consultation with industry and public officials, 
36.12 	develop a strategy for making loans and equity investments that assists the Minnesota 
36.13 	mineral industry in becoming globally competitive. Money in the fund may also be used to 
36.14 	pay for the costs of carrying out the commissioner's due diligence duties under this section.

36.15 	Sec. 6. Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to read:
36.16 		Subd. 5.Grant limits. A Minnesota investment fund grant may not be approved for 
36.17 	an amount in excess of $1,000,000. This limit covers all money paid to complete the same 
36.18 	project, whether paid to one or more grant recipients and whether paid in one or more 
36.19 	fiscal years. A local community or recognized Indian tribal government may retain 20
36.20 	 40 percent, but not more than $100,000, of a Minnesota investment fund grant when it is 
36.21 	repaid to the local community or recognized Indian tribal government by the person or 
36.22 	entity to which it was loaned by the local community or Indian tribal government. Money 
36.23 	repaid to the state must be credited to a Minnesota investment revolving loan account in 
36.24 	the state treasury. Funds in the account are appropriated to the commissioner and must 
36.25 	be used in the same manner as are funds appropriated to the Minnesota investment fund. 
36.26 	Funds repaid to the state through existing Minnesota investment fund agreements must be 
36.27 	credited to the Minnesota investment revolving loan account effective July 1, 2005. A 
36.28 	grant or loan may not be made to a person or entity for the operation or expansion of a 
36.29 	casino or a store which is used solely or principally for retail sales. Persons or entities 
36.30 	receiving grants or loans must pay each employee total compensation, including benefits 
36.31 	not mandated by law, that on an annualized basis is equal to at least 110 percent of the 
36.32 	federal poverty level for a family of four.

37.1 	Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
37.2 	116L.98 WORKFORCE PROGRAM OUTCOMES.
37.3 		Subdivision 1.Requirements. The commissioner shall develop and implement a 
37.4 	set of standard approaches for assessing the outcomes of workforce programs under this 
37.5 	chapter. The outcomes assessed must include, but are not limited to, periodic comparisons 
37.6 	of workforce program participants and nonparticipants uniform outcome measurement 
37.7 	and reporting system for adult workforce-related programs funded in whole or in part by 
37.8 	the workforce development fund.
37.9 	The commissioner shall also monitor the activities and outcomes of programs and 
37.10 	services funded by legislative appropriations and administered by the department on a 
37.11 	pass-through basis and develop a consistent and equitable method of assessing recipients 
37.12 	for the costs of its monitoring activities.
37.13 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in 
37.14 	this subdivision have the meanings given.
37.15 	(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates 
37.16 	awarded in recognition of an individual's attainment of measurable technical or 
37.17 	occupational skills necessary to obtain employment or advance with an occupation. 
37.18 	This definition does not include certificates awarded by workforce investment boards or 
37.19 	work-readiness certificates.
37.20 	(c) "Exit" means to have not received service under a workforce program for 90 
37.21 	consecutive calendar days. The exit date is the last date of service.
37.22 	(d) "Net impact" means the use of matched control groups and regression analysis to 
37.23 	estimate the impacts attributable to program participation net of other factors, including 
37.24 	observable personal characteristics and economic conditions.
37.25 	(e) "Pre-enrollment" means the period of time before an individual was enrolled 
37.26 	in a workforce program.
37.27 		Subd. 3.Uniform outcome report card; reporting by commissioner. (a) By 
37.28 	December 31 of each even-numbered year, the commissioner must report to the chairs 
37.29 	and ranking minority members of the committees of the house of representatives and the 
37.30 	senate having jurisdiction over economic development and workforce policy and finance 
37.31 	the following information separately for each of the previous two fiscal or calendar years, 
37.32 	for each program subject to the requirements of subdivision 1:
37.33 	(1) the total number of participants enrolled;
37.34 	(2) the median pre-enrollment wages based on participant wages for the second 
37.35 	through the fifth calendar quarters immediately preceding the quarter of enrollment 
37.36 	excluding those with zero income;
38.1 	(3) the total number of participants with zero income in the second through fifth 
38.2 	calendar quarters immediately preceding the quarter of enrollment;
38.3 	(4) the total number of participants enrolled in training;
38.4 	(5) the total number of participants enrolled in training by occupational group;
38.5 	(6) the total number of participants that exited the program and the average 
38.6 	enrollment duration of participants that have exited the program during the year;
38.7 	(7) the total number of exited participants who completed training;
38.8 	(8) the total number of exited participants who attained a credential;
38.9 	(9) the total number of participants employed during three consecutive quarters 
38.10 	immediately following the quarter of exit, by industry;
38.11 	(10) the median wages of participants employed during three consecutive quarters 
38.12 	immediately following the quarter of exit;
38.13 	(11) the total number of participants employed during eight consecutive quarters 
38.14 	immediately following the quarter of exit, by industry; and
38.15 	(12) the median wages of participants employed during eight consecutive quarters 
38.16 	immediately following the quarter of exit.
38.17 	(b) The report to the legislature must contain participant information by education 
38.18 	level, race and ethnicity, gender, and geography, and a comparison of exited participants 
38.19 	who completed training and those who did not.
38.20 	(c) The requirements of this section apply to programs administered directly by the 
38.21 	commissioner or administered by other organizations under a grant made by the department.
38.22 		Subd. 4.Data to commissioner; uniform report card. (a) A recipient of a future 
38.23 	or past grant or direct appropriation made by or through the department must report data 
38.24 	to the commissioner by September 1 of each even-numbered year on each of the items in 
38.25 	subdivision 3 for each program it administers except wages and number employed, which 
38.26 	the department shall provide. The data must be in a format prescribed by the commissioner.
38.27 	(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants 
38.28 	and recipients regarding the data collection and reporting requirements under this 
38.29 	subdivision and must provide technical assistance to applicants and recipients to assist 
38.30 	in complying with the requirements of this subdivision.
38.31 		Subd. 5.Information. The information collected and reported under subdivisions 3 
38.32 	and 4 shall be made available on the department's Web site.
38.33 		Subd. 6.Limitations on future appropriations. (a) A program that is a recipient 
38.34 	of public funds and subject to the requirements of this section as of May 1, 2014, is not 
38.35 	eligible for additional state appropriations for any fiscal year beginning after June 30, 
38.36 	2015, unless all of the reporting requirements under subdivision 4 have been satisfied.
39.1 	(b) A program with an initial request for funds on or after the effective date of this 
39.2 	section may be considered for receipt of public funds for the first two fiscal years only 
39.3 	if a plan that demonstrates how the data collection and reporting requirements under 
39.4 	subdivision 4 will be met has been submitted and approved by the commissioner. Any 
39.5 	subsequent request for funds after an initial request is subject to the requirements of 
39.6 	paragraph (a).
39.7 		Subd. 7.Workforce program net impact analysis. (a) By January 15, 2015, the 
39.8 	commissioner must report to the committees of the house of representatives and the senate 
39.9 	having jurisdiction over economic development and workforce policy and finance on 
39.10 	the results of the net impact pilot project already underway as of the date of enactment 
39.11 	of this section.
39.12 	(b) The commissioner shall contract with an independent entity to conduct an ongoing 
39.13 	net impact analysis of the programs included in the net impact pilot project under paragraph 
39.14 	(a) and any other programs deemed appropriate by the commissioner. The net impact 
39.15 	methodology used by the independent entity under this paragraph must be based on the 
39.16 	methodology and evaluation design used in the net impact pilot project under paragraph (a).
39.17 	(c) By January 15, 2017, and every four years thereafter, the commissioner must 
39.18 	report to the committees of the house of representatives and the senate having jurisdiction 
39.19 	over economic development and workforce policy and finance the following information 
39.20 	for each program subject to paragraph (b):
39.21 	(1) the net impact of workforce services on individual employment, earnings, and 
39.22 	public benefit usage outcomes; and
39.23 	(2) a cost-benefit analysis for understanding the monetary impacts of workforce 
39.24 	services from the participant and taxpayer points of view.
39.25 	The report under this paragraph must be made available to the public in an electronic 
39.26 	format on the Department of Employment and Economic Development's Web site.
39.27 	(d) The department is authorized to create and maintain data-sharing agreements 
39.28 	with other departments, including corrections, human services, and any other department 
39.29 	that are necessary to complete the analysis. The department shall supply the information 
39.30 	collected for use by the independent entity conducting net impact analysis pursuant to the 
39.31 	data practices requirements under chapters 13, 13A, 13B, and 13C.

39.32 	Sec. 8. Minnesota Statutes 2012, section 179.02, is amended by adding a subdivision 
39.33 	to read:
40.1 		Subd. 6.Receipt of gifts, money; appropriation. (a) The commissioner may apply 
40.2 	for, accept, and disburse gifts, bequests, grants, or payments for services from the United 
40.3 	States, the state, private foundations, or any other source.
40.4 	(b) Money received by the commissioner under this subdivision must be deposited in 
40.5 	a separate account in the state treasury and invested by the State Board of Investment. The 
40.6 	amount deposited, including investment earnings, is appropriated to the commissioner 
40.7 	to carry out duties of the commissioner.
40.8 	(c) The commissioner must post and maintain, on the Bureau of Mediation Services 
40.9 	Web site, a list of the sources of funds and amounts received under this subdivision.

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

40.11 	Sec. 9. Minnesota Statutes 2012, section 181A.07, is amended by adding a subdivision 
40.12 	to read:
40.13 		Subd. 7.Approved training programs. The commissioner may grant exemptions 
40.14 	from any provisions of sections 181A.01 to 181A.12 for minors participating in training 
40.15 	programs approved by the commissioner; or students in a valid apprenticeship program 
40.16 	taught by or required by a trade union, the commissioner of education, the commissioner 
40.17 	of employment and economic development, the Board of Trustees of the Minnesota State 
40.18 	Colleges and Universities, or the Board of Regents of the University of Minnesota.

40.19 	Sec. 10. Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:
40.20 		Subd. 1d.Technical assistance. (a) The commissioner shall evaluate energy 
40.21 	conservation improvement programs on the basis of cost-effectiveness and the reliability 
40.22 	of the technologies employed. The commissioner shall, by order, establish, maintain, and 
40.23 	update energy-savings assumptions that must be used when filing energy conservation 
40.24 	improvement programs. The commissioner shall establish an inventory of the most 
40.25 	effective energy conservation programs, techniques, and technologies, and encourage all 
40.26 	Minnesota utilities to implement them, where appropriate, in their service territories. 
40.27 	The commissioner shall describe these programs in sufficient detail to provide a utility 
40.28 	reasonable guidance concerning implementation. The commissioner shall prioritize the 
40.29 	opportunities in order of potential energy savings and in order of cost-effectiveness. The 
40.30 	commissioner may contract with a third party to carry out any of the commissioner's duties 
40.31 	under this subdivision, and to obtain technical assistance to evaluate the effectiveness of 
40.32 	any conservation improvement program. The commissioner may assess up to $800,000 
40.33 	annually until June 30, 2009, and $450,000 $850,000 annually thereafter for the purposes 
40.34 	of this subdivision. The assessments must be deposited in the state treasury and credited 
41.1 	to the energy and conservation account created under subdivision 2a. An assessment 
41.2 	made under this subdivision is not subject to the cap on assessments provided by section 
41.3 	216B.62, or any other law.
41.4 	(b) Of the assessment authorized under paragraph (a), the commissioner may expend 
41.5 	up to $400,000 annually for the purpose of developing, operating, maintaining, and 
41.6 	providing technical support for a uniform electronic data reporting and tracking system 
41.7 	available to all utilities subject to this section, in order to enable accurate measurement of 
41.8 	the cost and energy savings of the energy conservation improvements required by this 
41.9 	section. This paragraph expires June 30, 2017, and may be used for no more than three 
41.10 	annual assessments occurring prior to that date.

41.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
41.12 	and applies to assessments made after June 30, 2014.

41.13 	Sec. 11. Minnesota Statutes 2012, section 216C.145, is amended to read:
41.14 	216C.145 MICROENERGYCOMMUNITY ENERGY EFFICIENCY AND 
41.15 	RENEWABLE ENERGY LOAN PROGRAM.
41.16 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
41.17 	section.
41.18 	(b) "Small-scaleCommunity energy efficiency and renewable energy projects" 
41.19 	projects include means solar thermal water heating, solar electric or photovoltaic 
41.20 	equipment, small wind energy conversion systems of less than 250 kW, anaerobic digester 
41.21 	gas systems, microhydro systems up to 100 kW, and heating and cooling applications 
41.22 	using geothermal energysolar thermal or ground source technology, and cost-effective 
41.23 	energy efficiency projects installed in industrial, commercial or public buildings, or health 
41.24 	care facilities.
41.25 	(c) "Health care facilities" means a hospital licensed under sections 144.50 to 
41.26 	144.56, or a nursing home licensed under chapter 144A.
41.27 	(d) "Industrial customer" means a business that is classified under the North 
41.28 	American Industrial Classification System under codes 21, 31 to 33, 48, 49, or 562.
41.29 	(e) "Small business" means a business that employs 50 or fewer employees.
41.30 	(c) (f) "Unit of local government" means any home rule charter or statutory city, 
41.31 	county, commission, district, authority, or other political subdivision or instrumentality 
41.32 	of this state, including a sanitary district, park district, the Metropolitan Council, a port 
41.33 	authority, an economic development authority, or a housing and redevelopment authority.
42.1 		Subd. 2.Program established. The commissioner of commerce shall develop, 
42.2 	implement, and administer a microenergycommunity energy efficiency and renewable 
42.3 	energy loan program under this section.
42.4 		Subd. 3.Loan purposes. (a) The commissioner may issue low-interest, long-term 
42.5 	loans to units of local government to:
42.6 	(1)  finance community-owned or publicly owned small scale renewable energy 
42.7 	systems or to cost-effective energy efficiency improvements to public buildings; or
42.8 	provide loans or other aids to small businesses to install small-scale renewable 
42.9 	energy systems
42.10 	(2) provide loans or other aids to industrial or commercial businesses or health care 
42.11 	facilities for cost-effective energy efficiency projects or to install renewable energy systems.
42.12 	(b) The commissioner may participate in loans made by the Housing Finance 
42.13 	Agency to residential property owners, private developers, nonprofit organizations, 
42.14 	or units of local government under sections 462A.05, subdivisions 14 and 18; and 
42.15 	462A.33 for the construction, purchase, or rehabilitation of residential housing to facilitate 
42.16 	the installation of small-scale renewable energy systems in residential housing and 
42.17 	cost-effective energy conservation improvements identified in an energy efficiency audit. 
42.18 	The commissioner shall assist the Housing Finance Agency in assessing the technical 
42.19 	qualifications of loan applicants.
42.20 	(c) If an industrial, commercial, or health care facility customer seeks a loan 
42.21 	under paragraph (a), clause (2), the commissioner may require an individual industrial, 
42.22 	commercial, or health care facility customer to provide its energy usage data for the 
42.23 	limited purpose of assessing the energy and cost savings of the project that is subject to 
42.24 	the loan. Industrial, commercial, or health care facility customer's energy usage data 
42.25 	may only be released upon the express, written consent of the individual industrial, 
42.26 	commercial, or health care facility customer. The commissioner shall not require an 
42.27 	industrial, commercial, or health care facility customer to provide energy usage data 
42.28 	or aggregation of energy usage data that includes an industrial, commercial, or health 
42.29 	care facility customer for any other loan under this section. Any individual industrial, 
42.30 	commercial, or health care facility customer's energy usage data provided under this 
42.31 	section shall be classified as nonpublic data as defined in section 13.02, subdivision 9.
42.32 		Subd. 4.Technical standards. The commissioner shall determine technical 
42.33 	standards for small-scale renewable energy systemscommunity energy efficiency and 
42.34 	renewable energy projects to qualify for loans under this section. 
42.35 		Subd. 5.Loan proposals. (a) At least once a year, the commissioner shall publish in 
42.36 	the State Register a request for proposals from units of local government for a loan under 
43.1 	this section. Within 45 days after the deadline for receipt of proposals, the commissioner 
43.2 	shall select proposals based on the following criteria:
43.3 	(1) the reliability and cost-effectiveness of the renewable or energy efficiency 
43.4 	technology to be installed under the proposal;
43.5 	(2) the extent to which the proposal effectively integrates with the conservation and 
43.6 	energy efficiency programs or goals of the energy utilities serving the proposer;
43.7 	(3) the total life cycle energy use and greenhouse gas emissions reductions per 
43.8 	dollar of installed cost;
43.9 	(4) the diversity of the renewable energy or energy efficiency technology installed 
43.10 	under the proposal;
43.11 	(5) the geographic distribution of projects throughout the state;
43.12 	(6) the percentage of total project cost requested;
43.13 	(7) the proposed security for payback of the loan; and
43.14 	(8) other criteria the commissioner may determine to be necessary and appropriate.
43.15 		Subd. 6.Loan terms. A loan under this section must be issued at the lowest interest 
43.16 	rate required to recover principal and interest plus the costs of issuing the loan, and must 
43.17 	be for a minimum of 15 years, unless the commissioner determines that a shorter loan 
43.18 	period of no less than tenfive years is necessary and feasible.
43.19 		Subd. 7.Account. A microenergycommunity energy efficiency and renewable 
43.20 	energy loan account is established in the state treasury. Money in the account consists of 
43.21 	the proceeds of revenue bonds issued under section 216C.146, interest and other earnings 
43.22 	on money in the account, money received in repayment of loans from the account, 
43.23 	legislative appropriations, and money from any other source credited to the account.
43.24 		Subd. 8.Appropriation. Money in the account is appropriated to the commissioner 
43.25 	of commerce to make microenergycommunity energy efficiency and renewable energy
43.26 	 loans under this section and to the commissioner of management and budget to pay debt 
43.27 	service and other costs under section 216C.146. Payment of debt service costs and funding 
43.28 	reserves take priority over use of money in the account for any other purpose.

43.29 	Sec. 12. Minnesota Statutes 2012, section 216C.146, is amended to read:
43.30 	216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND 
43.31 	RENEWABLE ENERGY LOAN REVENUE BONDS.
43.32 		Subdivision 1.Bonding authority; definition. (a) The commissioner of 
43.33 	management and budget, if requested by the commissioner of commerce, shall sell and 
43.34 	issue state revenue bonds for the following purposes:
44.1 	(1) to make microenergy community energy efficiency and renewable energy loans 
44.2 	under section 216C.145;
44.3 	(2) to pay the costs of issuance, debt service, including capitalized interest, and 
44.4 	bond insurance or other credit enhancements, and to fund reserves, and make payments 
44.5 	under other agreements entered into under subdivision 2, but excludes refunding bonds 
44.6 	sold and issued under this subdivision; and
44.7 	(3) to refund bonds issued under this section.
44.8 	(b) The aggregate principal amount of bonds for the purposes of paragraph (a), 
44.9 	clause (1), that may be outstanding at any time may not exceed $100,000,000, of which 
44.10 	up to $20,000,000 shall be reserved for community energy efficiency and renewable 
44.11 	energy projects taking place in small businesses and public buildings; the principal 
44.12 	amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and 
44.13 	(3), is not limited.
44.14 	(c) For the purpose of this section, "commissioner" means the commissioner of 
44.15 	management and budget.
44.16 	(d) Revenue bonds may be issued from time to time in one or more series on the 
44.17 	terms and conditions the commissioner determines to be in the best interests of the state at 
44.18 	any price or percentages of par value, but the term on any series of revenue bonds may 
44.19 	not exceed 25 years. The revenue bonds of each issue and series thereof shall be dated 
44.20 	and bear interest, and may be includable in or excludable from the gross income of the 
44.21 	owners for federal income tax purposes.
44.22 	(e) Revenue bonds may be sold at either public or private sale. Any bid received 
44.23 	may be rejected.
44.24 	(f) The revenue bonds are not subject to chapter 16C.
44.25 	(g) Notwithstanding any other law, revenue bonds issued under this section shall 
44.26 	be fully negotiable.
44.27 	(h) Revenue bond terms must be no longer than the term of any corresponding 
44.28 	loan made under section 216C.145.
44.29 		Subd. 2.Procedure. The commissioner may sell and issue the bonds on the terms 
44.30 	and conditions the commissioner determines to be in the best interests of the state. The 
44.31 	bonds may be sold at public or private sale. The commissioner may enter into any 
44.32 	agreements or pledges the commissioner determines necessary or useful to sell the bonds 
44.33 	that are not inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to 
44.34 	the bonds. The proceeds of the bonds issued under this section must be credited to the 
44.35 	microenergy community energy efficiency and renewable energy loan account created 
44.36 	under section 216C.145.
45.1 		Subd. 3.Revenue sources. The debt service on the bonds is payable only from the 
45.2 	following sources:
45.3 	(1) revenue credited to the microenergy community energy efficiency and renewable 
45.4 	energy loan account from the sources identified in section 216C.145 or from any other 
45.5 	source; and
45.6 	(2) other revenues pledged to the payment of the bonds, including reserves 
45.7 	established by a local government unit.
45.8 		Subd. 4.Refunding bonds. The commissioner may issue bonds to refund 
45.9 	outstanding bonds issued under subdivision 1, including the payment of any redemption 
45.10 	premiums on the bonds and any interest accrued or to accrue to the first redemption date 
45.11 	after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the 
45.12 	discretion of the commissioner, be applied to the purchases or payment at maturity of the 
45.13 	bonds to be refunded, or the redemption of the outstanding bonds on the first redemption 
45.14 	date after delivery of the refunding bonds and may, until so used, be placed in escrow to 
45.15 	be applied to the purchase, retirement, or redemption. Refunding bonds issued under this 
45.16 	subdivision must be issued and secured in the manner provided by the commissioner.
45.17 		Subd. 5.Not a general or moral obligation. Bonds issued under this section are 
45.18 	not public debt, and the full faith, credit, and taxing powers of the state are not pledged 
45.19 	for their payment. The bonds may not be paid, directly in whole or in part from a tax of 
45.20 	statewide application on any class of property, income, transaction, or privilege. Payment 
45.21 	of the bonds is limited to the revenues explicitly authorized to be pledged under this 
45.22 	section. The state neither makes nor has a moral obligation to pay the bonds if the pledged 
45.23 	revenues and other legal security for them is insufficient.
45.24 		Subd. 6.Trustee. The commissioner may contract with and appoint a trustee for 
45.25 	bondholders. The trustee has the powers and authority vested in it by the commissioner 
45.26 	under the bond and trust indentures.
45.27 		Subd. 7.Pledges. A pledge made by the commissioner is valid and binding from 
45.28 	the time the pledge is made. The money or property pledged and later received by the 
45.29 	commissioner is immediately subject to the lien of the pledge without any physical 
45.30 	delivery of the property or money or further act, and the lien of the pledge is valid and 
45.31 	binding as against all parties having claims of any kind in tort, contract, or otherwise 
45.32 	against the commissioner, whether or not those parties have notice of the lien or pledge. 
45.33 	Neither the order nor any other instrument by which a pledge is created need be recorded.
45.34 		Subd. 8.Bonds; purchase and cancellation. The commissioner, subject to 
45.35 	agreements with bondholders that may then exist, may, out of any money available for the 
45.36 	purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are 
46.1 	then redeemable, the redemption price then applicable plus accrued interest to the next 
46.2 	interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price 
46.3 	applicable on the first date after the purchase upon which the bonds become subject to 
46.4 	redemption plus accrued interest to that date.
46.5 		Subd. 9.State pledge against impairment of contracts. The state pledges and 
46.6 	agrees with the holders of any bonds that the state will not limit or alter the rights vested in 
46.7 	the commissioner to fulfill the terms of any agreements made with the bondholders, or 
46.8 	in any way impair the rights and remedies of the holders until the bonds, together with 
46.9 	interest on them, with interest on any unpaid installments of interest, and all costs and 
46.10 	expenses in connection with any action or proceeding by or on behalf of the bondholders, 
46.11 	are fully met and discharged. The commissioner may include this pledge and agreement 
46.12 	of the state in any agreement with the holders of bonds issued under this section.
46.13 		Subd. 10.Revenue bonds as legal investments. Any of the following entities may 
46.14 	legally invest any sinking funds, money, or other funds belonging to them or under their 
46.15 	control in any revenue bonds issued under this section:
46.16 	(1) the state, the investment board, public officers, municipal corporations, political 
46.17 	subdivisions, and public bodies;
46.18 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
46.19 	savings banks and institutions, investment companies, insurance companies, insurance 
46.20 	associations, and other persons carrying on a banking or insurance business; and
46.21 	(3) personal representatives, guardians, trustees, and other fiduciaries.
46.22 		Subd. 11.Waiver of immunity. The waiver of immunity by the state provided for 
46.23 	by section 3.751, subdivision 1, shall be applicable to the revenue bonds and any ancillary 
46.24 	contracts to which the commissioner is a party.

46.25 	Sec. 13. Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:
46.26 		Subd. 14.Affirmative business enterprise employment. "Affirmative business 
46.27 	enterprise employment" means employment which provides paid work on the premises of 
46.28 	an affirmative business enterprise as certified by the commissioner.
46.29 	Affirmative business enterprise employment is considered community employment 
46.30 	for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided 
46.31 	that the wages for individuals reported must be at or above customary wages for the same 
46.32 	employer. The employer must also provide one benefit package that is available to all 
46.33 	employees at the specific site certified as an affirmative business enterprise.

47.1 	Sec. 14. [268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE 
47.2 	DEAF, DEAFBLIND, OR HARD-OF-HEARING.
47.3 		Subdivision 1.Deaf, deafblind, and hard-of-hearing grants. (a) The 
47.4 	commissioner shall develop and implement a specialized statewide grant program to 
47.5 	provide long-term supported employment services for persons who are deaf, deafblind, 
47.6 	and hard-of-hearing. Programs and services eligible for grants under this section must:
47.7 	(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and 
47.8 	advancing in employment;
47.9 	(2) provide services with staff who must possess fluency in all forms of manual 
47.10 	communication, including American Sign Language; knowledge of hearing loss and 
47.11 	psychosocial implications; sensitivity to cultural issues; familiarity with community 
47.12 	services and communication strategies for people who are hard-of-hearing and do not sign; 
47.13 	and awareness of adaptive technology options;
47.14 	(3) provide specialized employment support services for individuals who have 
47.15 	a combined hearing and vision loss that address the individual's unique ongoing visual 
47.16 	and auditory communication needs; and
47.17 	(4) involve clients in the planning, development, oversight, and delivery of 
47.18 	long-term ongoing support services.
47.19 	(b) Priority for funding shall be given to organizations with experience in developing  
47.20 	innovative employment support services for persons who are deaf, deafblind, and  
47.21 	hard-of-hearing. Each applicant for funds under this section shall submit an evaluation  
47.22 	protocol as part of the grant application.
47.23 		Subd. 2.Employment services for transition-aged youth who are deaf, 
47.24 	deafblind, and hard-of-hearing. (a) The commissioner shall develop statewide or 
47.25 	regional grant programs to provide school-based communication, access, and employment 
47.26 	services for youth who are deaf, deafblind, and hard-of-hearing. Services must include 
47.27 	staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise 
47.28 	in serving transition-aged youth. 
47.29 	(b) Priority for funding shall be given to organizations with experience in providing  
47.30 	innovative employment support services and readiness for postsecondary training for 
47.31 	transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for 
47.32 	funds under this section shall submit an evaluation protocol as part of the grant application.
47.33 		Subd. 3.Administration. Up to five percent of the biennial appropriation for the 
47.34 	purpose of this section is available to the commissioner for administration of the program.

47.35 	EFFECTIVE DATE. This section is effective upon enactment of a direct 
47.36 	appropriation for grants under this section.

48.1 	Sec. 15. Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:
48.2 		Subd. 2.City or town where quarried or produced. (a) 4.5 cents per gross ton of 
48.3 	merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 
48.4 	provided in paragraph (c), must be allocated to the city or town in the county in which 
48.5 	the lands from which taconite was mined or quarried were located or within which the 
48.6 	concentrate was produced. If the mining, quarrying, and concentration, or different steps 
48.7 	in either thereof are carried on in more than one taxing district, the commissioner shall 
48.8 	apportion equitably the proceeds of the part of the tax going to cities and towns among 
48.9 	such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to 
48.10 	the operation of mining or quarrying the taconite, and the remainder to the concentrating 
48.11 	plant and to the processes of concentration, and with respect to each thereof giving due 
48.12 	consideration to the relative extent of such operations performed in each such taxing 
48.13 	district. The commissioner's order making such apportionment shall be subject to review 
48.14 	by the Tax Court at the instance of any of the interested taxing districts, in the same 
48.15 	manner as other orders of the commissioner.
48.16 	(b) Four cents per taxable ton shall be allocated to cities and organized townships 
48.17 	affected by mining because their boundaries are within three miles of a taconite mine pit 
48.18 	that has been actively mined in at least one of the prior three years. If a city or town is 
48.19 	located near more than one mine meeting these criteria, the city or town is eligible to 
48.20 	receive aid calculated from only the mine producing the largest taxable tonnage. When 
48.21 	more than one municipality qualifies for aid based on one company's production, the aid 
48.22 	must be apportioned among the municipalities in proportion to their populations. Of The 
48.23 	amounts distributed under this paragraph to each municipality, one-half must be used for 
48.24 	infrastructure improvement projects, and one-half must be used for projects in which two 
48.25 	or more municipalities cooperate. Each municipality that receives a distribution under this 
48.26 	paragraph must report annually to the Iron Range Resources and Rehabilitation Board and 
48.27 	the commissioner of Iron Range resources and rehabilitation on the projects involving 
48.28 	cooperation with other municipalities.
48.29 	(c) The amount that would have been computed for the current year under Minnesota 
48.30 	Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to 
48.31 	the cities and townships within the school district in the proportion that their taxable net 
48.32 	tax capacity within the school district bears to the taxable net tax capacity of the school 
48.33 	district for property taxes payable in the year prior to distribution.

48.34 	Sec. 16. Laws 2013, chapter 143, article 11, section 10, is amended to read:
48.35 	Sec. 10. 2013 DISTRIBUTION ONLY.
 49.1 	For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of 
49.2 	any excess of the balance remaining after distribution of amounts required under Minnesota 
49.3 	Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 
49.4 	County acting as the fiscal agent for the recipients for the following specific purposes:
49.5 	(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water 
49.6 	supply system;
49.7 	(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities 
49.8 	required as a result of actions undertaken by United States Steel Corporation;
49.9 	(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water 
49.10 	supply system, payable upon agreement with ArcelorMittal to satisfy water permit 
49.11 	conditions system to further the established collaborative efforts between the city of 
49.12 	Biwabik, the city of Aurora, and surrounding communities;
49.13 	(4) 2 cents per ton to the city of Tower for the Tower Marina;
49.14 	(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer 
49.15 	system to replace aging effluent lines and for parking lot repaving;
49.16 	(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant 
49.17 	improvements;
49.18 	(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
49.19 	(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson 
49.20 	Intermodal Transportation Center;
49.21 	(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine 
49.22 	hockey arena renovations;
49.23 	(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center 
49.24 	to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and 
49.25 	Greenway Township;
49.26 	(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
49.27 	(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
49.28 	(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary 
49.29 	sewer extension;
49.30 	(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
49.31 	(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
49.32 	(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park 
49.33 	infrastructure, and a maintenance garage;
49.34 	(17) 0.5 cents per ton to the city of Cook for a water line project;
49.35 	(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street 
49.36 	reconstruction and the city auditorium;
50.1 	(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and 
50.2 	water line replacements;
50.3 	(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North 
50.4 	infrastructure and Franklin Park improvement; and
50.5 	(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development 
50.6 	project.

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

50.8 	Sec. 17. 2014 DISTRIBUTION ONLY.
 50.9 	For the 2014 distribution, a special fund is established to receive 18.84 cents per ton of 
50.10 	any excess of the balance remaining after distribution of amounts required under Minnesota 
50.11 	Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 
50.12 	County acting as the fiscal agent for the recipients for the following specific purposes:
50.13 	(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;
50.14 	(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation 
50.15 	at the Reif Center;
50.16 	(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements 
50.17 	to accommodate business expansion in the city;
50.18 	(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;
50.19 	(5) 0.39 cents per ton to Balkan Township for a salt storage building and 
50.20 	energy-efficient cold storage building;
50.21 	(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city 
50.22 	of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to 
50.23 	secure a potable water source for the city, provided that the city of McKinley secures 
50.24 	the remainder of the project costs from other sources, and expires three years following 
50.25 	the date of distribution;
50.26 	(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for 
50.27 	township block grants to be distributed by the board;
50.28 	(8) 0.5 cents per ton to the city of Marble for a water main and looping project;
50.29 	(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;
50.30 	(10) 0.35 cents per ton to the city of Babbitt for demolition of a public building;
50.31 	(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;
50.32 	(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;
50.33 	(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;
50.34 	(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;
50.35 	(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall;
51.1 	(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater 
51.2 	treatment project;
51.3 	(17) 0.47 cents per ton to the city of Cuyuna for improvements to city properties and 
51.4 	facilities, including construction, electrical, water, sewer, and site preparation; and
51.5 	(18) 0.3 cents per ton to Morse Township for a recreational trail.

51.6 	EFFECTIVE DATE. This section is effective for the 2014 distribution, and all 
51.7 	payments must be made separately and within ten days of the date of the August 2014 
51.8 	payment.

51.9 	Sec. 18. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM; 
51.10 	EVALUATION.
 51.11 	The commissioner of commerce may utilize a stakeholder group to annually monitor 
51.12 	the usability and product development of systems for electronic data reporting and 
51.13 	tracking for the use of utilities under the conservation improvement plan program under 
51.14 	Minnesota Statutes, section 216B.241. The initial group may be convened by November 
51.15 	1, 2014, and must, among others, include representatives from all sectors of the gas and 
51.16 	electric utility industry and providers of energy conservation.

51.17 	Sec. 19. INNOVATION VOUCHER PILOT PROGRAM.
 51.18 	(a) The commissioner of employment and economic development shall develop and 
51.19 	implement an innovation voucher pilot program to provide financing to small businesses 
51.20 	to purchase technical assistance and services from public higher education institutions 
51.21 	and nonprofit entities to assist in the development or commercialization of innovative 
51.22 	new products or services.
51.23 	(b) Funds available under this section may be used by a small business to access 
51.24 	technical assistance and other services including, but not limited to: research, technical 
51.25 	development, product development, commercialization, market development, technology 
51.26 	exploration, and improved business practices including strategies to grow business and 
51.27 	create operational efficiencies.
51.28 	(c) To be eligible for a voucher under this section, a business must enter into an 
51.29 	agreement with the commissioner that includes:
51.30 	(1) a list of the technical assistance and services the business proposes to purchase 
51.31 	and from whom the services will be purchased; and 
51.32 	(2) deliverable outcomes in one of the following areas:
51.33 	(i) research and development;
51.34 	(ii) business model development;
52.1 	(iii) market feasibility;
52.2 	(iv) operations; or
52.3 	(v) other outcomes determined by the commissioner.
52.4 	As part of the agreement, the commissioner must approve the technical assistance and 
52.5 	services to be purchased, and the entities from which the services or technical assistance 
52.6 	will be purchased.
52.7 	(d) For the purposes of this section, a small business means a business with fewer 
52.8 	than 40 employees.
52.9 	(e) A voucher award must not exceed $25,000 per business.
52.10 	(f) The commissioner must report to the chairs of the committees of the house of 
52.11 	representatives and senate having jurisdiction over economic development and workforce 
52.12 	policy and finance issues by December 1, 2014, on the vouchers awarded to date.

52.13 	Sec. 20. COMMISSIONER'S ACCOUNTABILITY PLAN.
 52.14 	By December 1, 2014, the commissioner shall report to the committees of the 
52.15 	house of representatives and senate having jurisdiction over workforce development 
52.16 	and economic development policy and finance issues, on the department's plan, and any 
52.17 	request for funding, to design and implement a performance accountability outcome 
52.18 	measurement system for programs under Minnesota Statutes, chapters 116J and 116L.

52.19 	Sec. 21. COMPETENCY STANDARDS: ADVANCED MANUFACTURING, 
52.20 	HEALTH CARE SERVICES, INFORMATION TECHNOLOGY, AND 
52.21 	AGRICULTURE.
 52.22 	(a) The commissioner of labor and industry, in collaboration with the commissioner 
52.23 	of employment and economic development, shall establish competency standards for 
52.24 	programs in advanced manufacturing, health care services, information technology, 
52.25 	and agriculture. This initiative shall be administered by the Department of Labor and 
52.26 	Industry. In establishing the competency standards, the commissioner shall convene 
52.27 	recognized industry experts, representative employers, higher education institutions, and 
52.28 	representatives of labor to assist in defining credible competency standards acceptable to 
52.29 	the advanced manufacturing, health care services, information technology, and agriculture 
52.30 	industries.
52.31 	(b) The outcomes expected from the initiatives in this section include:
52.32 	(1) establishment of competency standards for entry level and at least two additional 
52.33 	higher skill levels in each industry;
53.1 	(2) verification of competency standards and skill levels and their transferability by 
53.2 	representatives of each respective industry;
53.3 	(3) models of ways for Minnesota educational institutions to engage in providing 
53.4 	education and training to meet the competency standards established; and
53.5 	(4) participation from the identified industry sectors.
53.6 	(c) By January 15, 2015, the commissioner of labor and industry shall report to the 
53.7 	legislative committees with jurisdiction over jobs on the progress and success, including 
53.8 	outcomes, of the initiatives in this section and recommendations on occupations in which 
53.9 	similar competency standards should be developed and implemented.

53.10 	Sec. 22. AGRICULTURAL EMPLOYMENT; REPORT.
 53.11 	The commissioner of labor and industry shall report by January 1, 2015, to the chairs 
53.12 	and ranking minority members of the standing committees of the house of representatives 
53.13 	and senate with jurisdiction over labor policy and finance issues on the number of 
53.14 	agricultural employers who are using a 48 hour work week and the number of employees 
53.15 	affected. The commissioner shall include recommendations for appropriate compensation 
53.16 	for such agricultural employees. For the purposes of this section, "agriculture" has the 
53.17 	meaning given in Minnesota Rules, part 5200.0260.

53.18 	Sec. 23.  REPEALER.
 53.19 	Minnesota Statutes 2012, section 116J.997, is repealed.

53.20 	ARTICLE 4
53.21 	STATE DEPARTMENTS AND VETERANS

53.22	Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.
 	
53.23 	The sums shown in the columns marked "Appropriations" are added to the 
53.24 	appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes 
53.25 	specified in this article. The appropriations are from the general fund, or another named 
53.26 	fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 
53.27 	and "2015" used in this article mean that the addition to the appropriation listed under 
53.28 	them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 
53.29 	Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 
53.30 	day following final enactment.

53.31				APPROPRIATIONS
	
53.32				Available for the Year
	
53.33				Ending June 30
	
53.34					2014
		2015

54.1
54.2	Sec. 2. STATE DEPARTMENTS AND 
VETERANS APPROPRIATIONS

54.3
54.4	Subdivision 1.Legislative Coordinating 
Commission
 	$
	-0-
	$
	380,000
	
54.5 	$225,000 is for operating costs of the joint 
54.6 	legislative offices. $150,000 each year is 
54.7 	added to the base.
54.8 	$155,000 is for the Legislative Water 
54.9 	Commission established in section 3. 
54.10 	$145,000 each fiscal year is added to the base 
54.11 	through fiscal year 2019.

54.12	Subd. 2.Minnesota Housing Finance Agency
 		-0-
		250,000
	
54.13 	$250,000 is for at least five grants of up 
54.14 	to $50,000 each to conduct a housing 
54.15 	needs assessment for veterans in any 
54.16 	community within the state. No more than 
54.17 	five percent may be used by the Minnesota 
54.18 	Housing Finance Agency to administer 
54.19 	these grants. The grants may be awarded 
54.20 	to any government or nongovernmental 
54.21 	organization. The assessment, which may be 
54.22 	a study or a survey, may examine the need for 
54.23 	scattered site housing for veterans and their 
54.24 	families who are homeless or in danger of 
54.25 	homelessness or for housing that addresses 
54.26 	the health care needs of disabled or aging 
54.27 	veterans. The assessment must be started by 
54.28 	July 30, 2015, and completed by July 30, 
54.29 	2016. The commissioner of the Minnesota 
54.30 	Housing Finance Agency must provide 
54.31 	copies of any completed assessment to the 
54.32 	chairs and ranking minority members of 
54.33 	the legislative committees with jurisdiction 
54.34 	over housing and veterans affairs no later 
55.1 	than January 1, 2017. This is a onetime 
55.2 	appropriation.

55.3	Subd. 3.Racing Commission
 		100,000
		85,000
	
55.4 	These appropriations are from the racing 
55.5 	and card playing regulation accounts in the 
55.6 	special revenue fund. These appropriations 
55.7 	are onetime and are available in either year 
55.8 	of the biennium.

55.9	Subd. 4. Amateur Sports Commission
 		-0-
		50,000
	
55.10 	$50,000 is to develop a pilot program to 
55.11 	prevent and reduce childhood obesity. This 
55.12 	appropriation is onetime and is available 
55.13 	until June 30, 2017.

55.14	Subd. 5.Minnesota Historical Society
 		-0-
		25,000
	
55.15 	$25,000 is for a grant to Farm America for 
55.16 	repairs and maintenance of the Minnesota 
55.17 	Agricultural Interpretive Center and for audit 
55.18 	expenses. This is a onetime appropriation 
55.19 	and is available until June 30, 2017.

55.20	Subd. 6.Board of the Arts
 		-0-
		750,000
	
55.21 	$750,000 is appropriated from the arts and 
55.22 	cultural heritage fund for arts education in 
55.23 	partnership with the President's Turnaround 
55.24 	Arts Initiative. This appropriation is 
55.25 	contingent on Minnesota being designated 
55.26 	a Turnaround site. This appropriation is 
55.27 	available until June 30, 2015. This is a 
55.28 	onetime appropriation.

55.29	Subd. 7. Minnesota Humanities Center
 		-0-
		 225,000
	
55.30 	$125,000 is from the arts and cultural heritage 
55.31 	fund for the Veterans' Voices program to 
55.32 	educate and engage the community regarding 
55.33 	veterans' contributions, knowledge, skills, 
56.1 	and experiences. Of this amount, $25,000 is 
56.2 	for transfer to the Association of Minnesota 
56.3 	Public Education Radio Stations for statewide 
56.4 	programming to promote the Veterans' Voices 
56.5 	program. This is a onetime appropriation.
56.6 	$100,000 is from the arts and cultural 
56.7 	heritage fund for professional development 
56.8 	for kindergarten through grade 12 educators 
56.9 	to better culturally engage their work with 
56.10 	at-risk student populations. This may include 
56.11 	new and original literature that addresses 
56.12 	literacy of emerging cultural communities. 
56.13 	This is a onetime appropriation.

56.14	Subd. 8. Department of Education
 		-0-
		44,000
	
56.15 	This appropriation is to implement expedited 
56.16 	and temporary licensing provisions of 
56.17 	Minnesota Statutes, section 197.4552. This 
56.18 	is a onetime appropriation.

56.19	Subd. 9.Board of Accountancy
 		-0-
		44,000
	
56.20 	This appropriation is to implement expedited 
56.21 	and temporary licensing provisions of 
56.22 	Minnesota Statutes, section 197.4552. This 
56.23 	is a onetime appropriation.

56.24
56.25
56.26	Subd. 10.Board of Architecture, Engineering, 
Land Surveying, Landscape, Architecture, 
Geoscience, and Interior Design
 		-0-
		44,000
	
56.27 	This appropriation is to implement expedited 
56.28 	and temporary licensing provisions of 
56.29 	Minnesota Statutes, section 197.4552. This 
56.30 	is a onetime appropriation.

56.31	Subd. 11.Board of Cosmetologist Examiners
 		-0-
		20,000
	
56.32 	This appropriation is to implement expedited 
56.33 	and temporary licensing provisions of 
57.1 	Minnesota Statutes, section 197.4552. This 
57.2 	is a onetime appropriation.

57.3	Subd. 12.Board of Barber Examiners
 		-0-
		10,000
	
57.4 	This appropriation is to implement expedited 
57.5 	and temporary licensing provisions of 
57.6 	Minnesota Statutes, section 197.4552. This 
57.7 	is a onetime appropriation.

57.8	Subd. 13.Board of Private Detectives
 		-0-
		44,000
	
57.9 	This appropriation is to implement expedited 
57.10 	and temporary licensing provisions of 
57.11 	Minnesota Statutes, section 197.4552. This 
57.12 	is a onetime appropriation.

57.13
57.14	Subd. 14.Board of Behavioral Health and 
Therapy
 		-0-
		15,000
	
57.15 	This appropriation is from the state 
57.16 	government special revenue fund to 
57.17 	implement expedited and temporary licensing 
57.18 	provisions of Minnesota Statutes, section 
57.19 	197.4552. This is a onetime appropriation.

57.20	Subd. 15.Board of Dentistry
 		-0-
		10,000
	
57.21 	This appropriation is from the state 
57.22 	government special revenue fund to 
57.23 	implement expedited and temporary licensing 
57.24 	provisions of Minnesota Statutes, section 
57.25 	197.4552. This is a onetime appropriation.

57.26
57.27	Subd. 16.Board of Dietetics and Nutrition 
Practice
 		-0-
		10,000
	
57.28 	This appropriation is from the state 
57.29 	government special revenue fund to 
57.30 	implement expedited and temporary licensing 
57.31 	provisions of Minnesota Statutes, section 
57.32 	197.4552. This is a onetime appropriation.

57.33
57.34	Subd. 17.Board of Marriage and Family 
Therapy
 		-0-
		14,000
	
58.1 	This appropriation is from the state 
58.2 	government special revenue fund to 
58.3 	implement expedited and temporary licensing 
58.4 	provisions of Minnesota Statutes, section 
58.5 	197.4552. This is a onetime appropriation.

58.6
58.7	Subd. 18.Board of Nursing Home 
Administrators
 		-0-
		1,000
	
58.8 	This appropriation is from the state 
58.9 	government special revenue fund to 
58.10 	implement expedited and temporary licensing 
58.11 	provisions of Minnesota Statutes, section 
58.12 	197.4552. This is a onetime appropriation.

58.13	Subd. 19.Board of Optometry
 		-0-
		10,000
	
58.14 	This appropriation is from the state 
58.15 	government special revenue fund to 
58.16 	implement expedited and temporary licensing 
58.17 	provisions of Minnesota Statutes, section 
58.18 	197.4552. This is a onetime appropriation.

58.19	Subd. 20.Board of Podiatric Medicine
 		-0-
		10,000
	
58.20 	This appropriation is from the state 
58.21 	government special revenue fund to 
58.22 	implement expedited and temporary licensing 
58.23 	provisions of Minnesota Statutes, section 
58.24 	197.4552. This is a onetime appropriation.

58.25	Subd. 21.Board of Social Work
 		-0-
		3,000
	
58.26 	This appropriation is from the state 
58.27 	government special revenue fund to 
58.28 	implement expedited and temporary licensing 
58.29 	provisions of Minnesota Statutes, section 
58.30 	197.4552. This is a onetime appropriation.

58.31 	Sec. 3. [3.886] LEGISLATIVE WATER COMMISSION.
58.32 		Subdivision 1.Establishment. A Legislative Water Commission is established.
59.1 		Subd. 2.Membership. (a) The Legislative Water Commission consists of 12 
59.2 	members appointed as follows:
59.3 	(1) six members of the senate, including three majority party members appointed by 
59.4 	the majority leader and three minority party members appointed by the minority leader; and
59.5 	(2) six members of the house of representatives, including three majority party 
59.6 	members appointed by the speaker of the house and three minority party members 
59.7 	appointed by the minority leader.
59.8 	(b) Members serve at the pleasure of the appointing authority and continue to serve 
59.9 	until their successors are appointed or until a member is no longer a member of the 
59.10 	legislative body that appointed the member to the commission. Vacancies shall be filled in 
59.11 	the same manner as the original positions. Vacancies occurring on the commission do not 
59.12 	affect the authority of the remaining members of the Legislative Water Commission to 
59.13 	carry out the function of the commission.
59.14 	(c) Members shall elect a chair, vice chair, and other officers as determined by 
59.15 	the commission. The chair may convene meetings as necessary to conduct the duties 
59.16 	prescribed by this section.
59.17 		Subd. 3.Commission staffing. The Legislative Coordinating Commission must 
59.18 	employ staff and contract with consultants as necessary to enable the Legislative Water 
59.19 	Commission to carry out its duties and functions.
59.20 		Subd. 4.Powers and duties. (a) The Legislative Water Commission shall review 
59.21 	water policy reports and recommendations of the Environmental Quality Board, the Board 
59.22 	of Water and Soil Resources, the Pollution Control Agency, the Department of Natural 
59.23 	Resources, the Metropolitan Council, and other water-related reports as may be required 
59.24 	by law or the legislature.
59.25 	(b) The commission may conduct public hearings and otherwise secure data and 
59.26 	comments.
59.27 	(c) The commission shall make recommendations as it deems proper to assist the 
59.28 	legislature in formulating legislation.
59.29 	(d) Data or information compiled by the Legislative Water Commission or its 
59.30 	subcommittees shall be made available to the Legislative-Citizen Commission on 
59.31 	Minnesota Resources, the Clean Water Council, and standing and interim committees of 
59.32 	the legislature on request of the chair of the respective commission, council, or committee.
59.33 	(e) The commission shall coordinate with the Clean Water Council.
59.34 		Subd. 5.Compensation. Members of the commission may receive per diem and 
59.35 	expense reimbursement incurred doing the work of the commission in the manner and 
59.36 	amount prescribed for per diem and expense payments by the senate Committee on Rules 
60.1 	and Administration and the house of representatives Committee on Rules and Legislative 
60.2 	Administration.
60.3 		Subd. 6.Expiration. This section expires July 1, 2019.

60.4 	Sec. 4. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is 
60.5 	amended to read:
60.6 		Subdivision 1.Creation. A Compensation Council is created each odd-numbered 
60.7 	year to assist the legislature in establishing the compensation of constitutional officers, 
60.8 	members of the legislature, justices of the Supreme Court, judges of the Court of Appeals 
60.9 	and district court, and the heads of state and metropolitan agencies included in section 
60.10 	15A.0815.

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

60.12 	Sec. 5. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is 
60.13 	amended to read:
60.14 		Subd. 3.Submission of recommendations. (a) By March April 15 in each 
60.15 	odd-numbered year, the Compensation Council shall submit to the speaker of the house 
60.16 	and the president of the senate salary recommendations for constitutional officers, 
60.17 	legislators, justices of the Supreme Court, and judges of the Court of Appeals and district 
60.18 	court. The recommended salary for each other office must take effect on the first Monday 
60.19 	in January of the next odd-numbered year, with no more than one adjustment, to take 
60.20 	effect on January 1 of the year after that. The salary recommendations for legislators,
60.21 	 judges, and constitutional officers take effect if an appropriation of money to pay the 
60.22 	recommended salaries is enacted after the recommendations are submitted and before 
60.23 	their effective date. Recommendations may be expressly modified or rejected. The salary 
60.24 	recommendations for legislators are subject to additional terms that may be adopted 
60.25 	according to section 3.099, subdivisions 1 and 3.
60.26 	(b) The council shall also submit to the speaker of the house and the president of 
60.27 	the senate recommendations for the salary ranges of the heads of state and metropolitan 
60.28 	agencies, to be effective retroactively from January 1 of that year if enacted into law. The 
60.29 	recommendations shall include the appropriate group in section 15A.0815 to which each 
60.30 	agency head should be assigned and the appropriate limitation on the maximum range of 
60.31 	the salaries of the agency heads in each group, expressed as a percentage of the salary of 
60.32 	the governor.

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

61.1 	Sec. 6. Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:
61.2 		Subd. 4.Criteria. In making compensation recommendations, the council shall 
61.3 	consider the amount of compensation paid in government service and the private sector 
61.4 	to persons with similar qualifications, the amount of compensation needed to attract 
61.5 	and retain experienced and competent persons, and the ability of the state to pay the 
61.6 	recommended compensation. In making recommendations for legislative compensation, 
61.7 	the council shall also consider the average length of a legislative session, the amount of 
61.8 	work required of legislators during interim periods, and opportunities to earn income from 
61.9 	other sources without neglecting legislative duties.

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

61.11 	Sec. 7. Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:
61.12 		Subd. 6a.Veteran-owned small businesses. (a) Except when mandated by the 
61.13 	federal government as a condition of receiving federal funds, the commissioner shall 
61.14 	award up to a six percent preference, but no less than the percentage awarded to any 
61.15 	other group under this section, in the amount bid on state procurement to certified small 
61.16 	businesses that are majority-owned and operated by: veterans.
61.17 	(1) recently separated veterans who have served in active military service, at any 
61.18 	time on or after September 11, 2001, and who have been discharged under honorable 
61.19 	conditions from active service, as indicated by the person's United States Department of 
61.20 	Defense form DD-214 or by the commissioner of veterans affairs;
61.21 	(2) veterans with service-connected disabilities, as determined at any time by the 
61.22 	United States Department of Veterans Affairs; or
61.23 	(3) any other veteran-owned small businesses certified under section 16C.19, 
61.24 	paragraph (d).
61.25 	(b) The purpose of this designation is to facilitate the transition of veterans from 
61.26 	military to civilian life, and to help compensate veterans for their sacrifices, including but 
61.27 	not limited to their sacrifice of health and time, to the state and nation during their military 
61.28 	service, as well as to enhance economic development within Minnesota.

61.29 	Sec. 8. Minnesota Statutes 2012, section 16C.19, is amended to read:
61.30 	16C.19 ELIGIBILITY; RULES.
61.31 	(a) A small business wishing to participate in the programs under section 16C.16, 
61.32 	subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 
61.33 	by rule standards and procedures for certifying that small businesses, small targeted 
62.1 	group businesses, and small businesses located in economically disadvantaged areas, 
62.2 	and veteran-owned small businesses  are eligible to participate under the requirements 
62.3 	of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and 
62.4 	procedures for hearing appeals and grievances and other rules necessary to carry out the 
62.5 	duties set forth in sections 16C.16 to 16C.21.
62.6 	(b) The commissioner may make rules which exclude or limit the participation of 
62.7 	nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 
62.8 	manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
62.9 	(c) The commissioner may make rules that set time limits and other eligibility limits 
62.10 	on business participation in programs under sections 16C.16 to 16C.21.
62.11 	(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a 
62.12 	veteran-owned small business, the principal place of business of which is in Minnesota, is 
62.13 	certified if it has been verified by the United States Department of Veterans Affairs as being 
62.14 	either a veteran-owned small business or a service-disabled veteran-owned small business, 
62.15 	in accordance with Public Law 109-461 and Code of Federal Regulations, title 38, part 74.
62.16 	(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying 
62.17 	veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may 
62.18 	be read to include veteran-owned small businesses. In addition to the documentation 
62.19 	required in Minnesota Rules, part 1230.1700, the veteran owner must have been 
62.20 	discharged under honorable conditions from active service, as indicated by the veteran 
62.21 	owner's most current United States Department of Defense form DD-214.

62.22 	Sec. 9. Minnesota Statutes 2012, section 122A.18, is amended by adding a subdivision 
62.23 	to read:
62.24 		Subd. 7c.Temporary military license. The Board of Teaching shall establish 
62.25 	a temporary license in accordance with section 197.4552 for teaching. The fee for a 
62.26 	temporary license under this subdivision shall be $87.90 for an online application or 
62.27 	$86.40 for a paper application.

62.28 	Sec. 10. [148.595] TEMPORARY MILITARY PERMIT; FEE.
62.29 	The Board of Optometry shall establish a temporary permit in accordance with 
62.30 	section 197.4552. The fee for the temporary military permit is $250.

62.31 	Sec. 11. Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision 
62.32 	to read:
63.1 		Subd. 5.Temporary military permit. The board shall issue a temporary permit to 
63.2 	members of the military in accordance with section 197.4552. The fee for the temporary 
63.3 	permit is $250.

63.4 	Sec. 12. Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is 
63.5 	amended to read:
63.6 		Subd. 2.Licensure and application fees. Nonrefundable licensure and application 
63.7 	fees established by the board shall not exceed the following amounts:
63.8 	(1) application fee for national examination is $110;
63.9 	(2) application fee for Licensed Marriage and Family Therapist (LMFT) state 
63.10 	examination is $110;
63.11 	(3) initial LMFT license fee is prorated, but cannot exceed $125;
63.12 	(4) annual renewal fee for LMFT license is $125;
63.13 	(5) late fee for LMFT license renewal is $50;
63.14 	(6) application fee for LMFT licensure by reciprocity is $220;
63.15 	(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT) 
63.16 	license is $75;
63.17 	(8) annual renewal fee for LAMFT license is $75;
63.18 	(9) late fee for LAMFT renewal is $25;
63.19 	(10) fee for reinstatement of license is $150; and
63.20 	(11) fee for emeritus status is $125; and
63.21 	(12) fee for temporary license for members of the military is $100.

63.22 	Sec. 13. Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:
63.23 		Subd. 3.Fee. Nonrefundable fees are as follows:
63.24 	(1) initial license application fee for licensed professional counseling (LPC) - $150;
63.25 	(2) initial license fee for LPC - $250;
63.26 	(3) annual active license renewal fee for LPC - $250 or equivalent;
63.27 	(4) annual inactive license renewal fee for LPC - $125;
63.28 	(5) initial license application fee for licensed professional clinical counseling 
63.29 	(LPCC) - $150;
63.30 	(6) initial license fee for LPCC - $250;
63.31 	(7) annual active license renewal fee for LPCC - $250 or equivalent;
63.32 	(8) annual inactive license renewal fee for LPCC - $125;
63.33 	(9) license renewal late fee - $100 per month or portion thereof;
63.34 	(10) copy of board order or stipulation - $10;
64.1 	(11) certificate of good standing or license verification - $25;
64.2 	(12) duplicate certificate fee - $25;
64.3 	(13) professional firm renewal fee - $25;
64.4 	(14) sponsor application for approval of a continuing education course - $60;
64.5 	(15) initial registration fee - $50;
64.6 	(16) annual registration renewal fee - $25; and
64.7 	(17) approved supervisor application processing fee - $30; and
64.8 	(18) temporary license for members of the military - $250.

64.9 	Sec. 14. Minnesota Statutes 2012, section 150A.091, is amended by adding a 
64.10 	subdivision to read:
64.11 		Subd. 9c.Temporary permit. Applications for a temporary military permit in 
64.12 	accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.

64.13 	Sec. 15. Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision 
64.14 	to read:
64.15 		Subd. 4.Temporary military permit. The board shall establish a temporary permit 
64.16 	in accordance with section 197.4552. The fee for the temporary military permit is $250.

64.17 	Sec. 16. Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter 
64.18 	85, article 5, section 12, is amended to read:
64.19 	154.11 EXAMINATION OF NONRESIDENT BARBERS AND 
64.20 	INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS; 
64.21 	TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.
64.22 		Subdivision 1.Examination of nonresidents. A person who meets all of the 
64.23 	requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to 
64.24 	154.161, 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate of 
64.25 	registration, or an equivalent as a practicing barber or instructor of barbering from another 
64.26 	state or country which in the discretion of the board has substantially the same requirements 
64.27 	for registering barbers and instructors of barbering as required by sections 154.001, 
64.28 	154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or can prove 
64.29 	by sworn affidavits practice as a barber or instructor of barbering in another state or country 
64.30 	for at least five years immediately prior to making application in this state, shall, upon 
64.31 	payment of the required fee, be issued a certificate of registration without examination.
64.32 		Subd. 2.Temporary apprentice permits for nonresidents. Any person who 
64.33 	qualifies for examination as a registered barber under this section may apply for a 
65.1 	temporary apprentice permit which is effective no longer than six months. All persons 
65.2 	holding a temporary apprentice permit are subject to all provisions of sections 154.001, 
65.3 	154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the 
65.4 	rules adopted by the board under those sections concerning the conduct and obligations 
65.5 	of registered apprentices.
65.6 		Subd. 3.Temporary military license. The board shall establish a temporary license 
65.7 	for barbers and master barbers and a temporary permit for apprentices in accordance with 
65.8 	section 197.4552. The fee for a temporary license under this subdivision for a master 
65.9 	barber is $85. The fee for a temporary license under this subdivision for a barber is $180. 
65.10 	The fee for a temporary permit under this subdivision for an apprentice is $80.

65.11 	Sec. 17. Minnesota Statutes 2012, section 155A.27, is amended by adding a 
65.12 	subdivision to read:
65.13 		Subd. 5a.Temporary military license. The board shall establish temporary 
65.14 	licenses for a cosmetologist, nail technician, and esthetician, in accordance with section 
65.15 	197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail 
65.16 	technician, or esthetician is $100.

65.17 	Sec. 18. [197.4552] EXPEDITED AND TEMPORARY LICENSING FOR 
65.18 	FORMER AND CURRENT MEMBERS OF THE MILITARY.
65.19 		Subdivision 1.Expedited licensing processing. Notwithstanding any other law to 
65.20 	the contrary, each professional licensing board defined in section 214.01, subdivisions 2 
65.21 	and 3, shall establish a procedure to expedite the issuance of a license or certification to 
65.22 	perform professional services regulated by each board to a qualified individual who is:
65.23 	(1) an active duty military member;
65.24 	(2) the spouse of an active duty military member; or
65.25 	(3) a veteran who has left service in the two years preceding the date of license or 
65.26 	certification application, and has confirmation of an honorable or general discharge status.
65.27 		Subd. 2.Temporary licenses. (a) Notwithstanding any other law to the contrary, 
65.28 	each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall 
65.29 	establish a procedure to issue a temporary license or certification to perform professional 
65.30 	services regulated by each board to a qualified individual who is:
65.31 	(1) an active duty military member;
65.32 	(2) the spouse of an active duty military member; or
65.33 	(3) a veteran who has left service in the two years preceding the date of license or 
65.34 	certification application, and has confirmation of an honorable or general discharge status.
66.1 	(b) A qualified individual under paragraph (a) must provide evidence of:
66.2 	(1) a current, valid license, certificate, or permit in another state without history of 
66.3 	disciplinary action by a regulatory authority in the other state; and
66.4 	(2) a current criminal background study without a criminal conviction that is 
66.5 	determined by the board to adversely affect the applicants' ability to become licensed.
66.6 	(c) A temporary license or certificate issued under this subdivision shall allow a 
66.7 	qualified individual to perform regulated professional services for a limited length of time 
66.8 	as determined by the licensing board. During the temporary license period, the individual 
66.9 	shall complete the full application procedure as required by applicable law.
66.10 		Subd. 3.Rulemaking. Each licensing board may adopt rules to carry out the 
66.11 	provisions of this section.

66.12 	Sec. 19. Minnesota Statutes 2012, section 326.04, as amended by Laws 2014, chapter 
66.13 	236, section 3, is amended to read:
66.14 	326.04 BOARD ESTABLISHED.
66.15 		Subdivision 1.Board composition. To carry out the provisions of sections 326.02
66.16 	to 326.15 there is hereby created a Board of Architecture, Engineering, Land Surveying, 
66.17 	Landscape Architecture, Geoscience, and Interior Design consisting of 21 members, who 
66.18 	shall be appointed by the governor. Three members shall be licensed architects, five 
66.19 	members shall be licensed engineers, two members shall be licensed landscape architects, 
66.20 	two members shall be licensed land surveyors, two members shall be certified interior 
66.21 	designers, two members shall be licensed geoscientists, and five members shall be public 
66.22 	members. Not more than one member of the board shall be from the same branch of the 
66.23 	profession of engineering. Membership terms, compensation of members, removal of 
66.24 	members, the filling of membership vacancies, and fiscal year and reporting requirements 
66.25 	shall be as provided in sections 214.07 to 214.09. Members shall be limited to two terms. 
66.26 	The provision of staff, administrative services and office space; the review and processing 
66.27 	of complaints; the setting of board fees; and other provisions relating to board operations 
66.28 	shall be as provided in chapter 214.
66.29 		Subd. 2.Temporary military certificate. The board shall establish a temporary 
66.30 	military certificate in accordance with section 197.4552.

66.31 	Sec. 20. Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision 
66.32 	to read:
66.33 		Subd. 10.Temporary military license. The board shall establish a temporary 
66.34 	license in accordance with section 197.4552 for the practice of architecture, professional 
67.1 	engineering, geosciences, land surveying, landscape architecture, and interior design. 
67.2 	The fee for the temporary license under this subdivision for the practice of architecture, 
67.3 	professional engineering, geosciences, land surveying, landscape architecture, or interior 
67.4 	design is $132.

67.5 	Sec. 21. Minnesota Statutes 2012, section 326.3382, is amended by adding a 
67.6 	subdivision to read:
67.7 		Subd. 6.Temporary military license. The board shall establish a temporary 
67.8 	license to engage in the business of private detective or protective agent in accordance 
67.9 	with section 197.4552. The fee for the temporary license under this subdivision for a 
67.10 	private detective is $1,000. The fee for a temporary license under this subdivision for a 
67.11 	protective agent is $800.

67.12 	Sec. 22. Minnesota Statutes 2012, section 326A.04, is amended by adding a 
67.13 	subdivision to read:
67.14 		Subd. 1a.Temporary military certificate. The board shall establish a temporary 
67.15 	military certificate in accordance with section 197.4552.

67.16 	Sec. 23. Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is 
67.17 	amended to read:
67.18 		Subd. 5.Fee. (a) The board shall charge a fee for each application for initial 
67.19 	issuance or renewal of a certificate or temporary military certificate under this section as 
67.20 	provided in paragraph (b). The fee for the temporary military certificate is $100.
67.21 	(b) The board shall charge the following fees:
67.22 	(1) initial issuance of certificate, $150;
67.23 	(2) renewal of certificate with an active status, $100 per year;
67.24 	(3) initial CPA firm permits, except for sole practitioners, $100;
67.25 	(4) renewal of CPA firm permits, except for sole practitioners and those firms 
67.26 	specified in clause (17), $35 per year;
67.27 	(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for 
67.28 	those firms specified in clause (17), $35 per year;
67.29 	(6) annual late processing delinquency fee for permit, certificate, or registration 
67.30 	renewal applications not received prior to expiration date, $50;
67.31 	(7) copies of records, per page, 25 cents;
67.32 	(8) registration of noncertificate holders, nonlicensees, and nonregistrants in 
67.33 	connection with renewal of firm permits, $45 per year;
68.1 	(9) applications for reinstatement, $20;
68.2 	(10) initial registration of a registered accounting practitioner, $50;
68.3 	(11) initial registered accounting practitioner firm permits, $100;
68.4 	(12) renewal of registered accounting practitioner firm permits, except for sole 
68.5 	practitioners, $100 per year;
68.6 	(13) renewal of registered accounting practitioner firm permits for sole practitioners, 
68.7 	$35 per year;
68.8 	(14) CPA examination application, $40;
68.9 	(15) CPA examination, fee determined by third-party examination administrator;
68.10 	(16) renewal of certificates with an inactive status, $25 per year; and
68.11 	(17) renewal of CPA firm permits for firms that have one or more offices located in 
68.12 	another state, $68 per year.

68.13 	Sec. 24. Minnesota Statutes 2012, section 363A.44, subdivision 1, as added by Laws 
68.14 	2014, chapter 239, article 2, section 6, is amended to read:
68.15 		Subdivision 1.Scope. (a) No department, agency of the state, the Metropolitan 
68.16 	Council, or an agency subject to section 473.143, subdivision 1, shall execute a contract 
68.17 	for goods or services or an agreement for goods or services  in excess of $500,000 with a 
68.18 	business that has 40 or more full-time employees in this state or a state where the business 
68.19 	has its primary place of business on a single day during the prior 12 months, unless the 
68.20 	business has an equal pay certificate or it has certified in writing that it is exempt. A 
68.21 	certificate is valid for four years.
68.22 	(b) This section does not apply to a business with respect to a specific contract if 
68.23 	the commissioner of administration determines that application of this section would 
68.24 	cause undue hardship to the contracting entity. This section does not apply to a contract 
68.25 	to provide goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 
68.26 	256B, 256I, 256L, and 268A, with a business that has a license, certification, registration, 
68.27 	provider agreement, or provider enrollment contract that is prerequisite to providing those 
68.28 	goods and services. This section does not apply to contracts entered into by the State 
68.29 	Board of Investment for investment options under section 352.965, subdivision 4.

68.30 	EFFECTIVE DATE. This section is effective August 1, 2014.

68.31 	Sec. 25. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS 
68.32 	AND FIRST MEETING.
 68.33 	Initial appointments to the Legislative Water Commission established in section 
68.34 	3 must be made by September 1, 2014. The first meeting of the Legislative Water 
69.1 	Commission shall be convened by the chair or a designee of the Legislative Coordinating 
69.2 	Commission by October 15, 2014. The Legislative Water Commission shall select a chair 
69.3 	from its membership at its first meeting.

69.4 	Sec. 26. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL 
69.5 	ACCOMMODATION.
 69.6 	The commissioner of management and budget, in consultation with the Commission  
69.7 	of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs and 
69.8 	ranking minority members of the senate Finance Committee, the house of representatives 
69.9 	Ways and Means Committee, the house of representatives State Government Finance 
69.10 	Committee, the senate State Departments and Veterans Budget Division, and the governor 
69.11 	by January 5, 2015, on advantages and disadvantages of creating an account for the 
69.12 	special revenue fund in the state treasury to pay for costs of providing accommodations to 
69.13 	executive branch state employees with disabilities. The report must include:
69.14 	(1) a summary of money spent by executive branch state agencies in fiscal years 
69.15 	2012 and 2013 for providing accommodations to executive branch state employees, to 
69.16 	the extent that such expenditures can be determined; and
69.17 	(2) recommendations for laws and policies needed to implement an account in the 
69.18 	special revenue fund, if one is recommended under this section; or other recommendations 
69.19 	related to best practices in provision of accommodations for employees with disabilities 
69.20 	in the executive branch.

69.21 	ARTICLE 5
69.22 	PUBLIC SAFETY AND CORRECTIONS APPROPRIATIONS

69.23	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
69.24 	The amounts shown in this section summarize direct appropriations, by fund, made 
69.25 	in this article.

69.26			2014
		2015
		Total
	
69.27	General
	$
	-0-
	$
	35,057,000
	$
	35,057,000
	
69.28
69.29	State Government Special 
Revenue
		12,361,000
		6,865,000
		19,226,000
	
69.30	Total
	$
	12,361,000
	$
	41,922,000
	$
	54,283,000

69.31	Sec. 2. APPROPRIATIONS.
 	
69.32 	The sums shown in the columns marked "Appropriations" are added to the 
69.33 	appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes 
69.34 	specified in this article. The appropriations are from the general fund, or another named 
70.1 	fund, and are available for the fiscal years indicated for each purpose. The figures "2014" 
70.2 	and "2015" used in this article mean that the addition to the appropriation listed under 
70.3 	them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. 
70.4 	Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the 
70.5 	day following final enactment.

70.6				APPROPRIATIONS
	
70.7				Available for the Year
	
70.8				Ending June 30
	
70.9					2014
		2015

70.10	Sec. 3. PUBLIC SAFETY

70.11	Subdivision 1.Total Appropriation
 	$
	 12,361,000
	$
	8,638,000

70.12	Appropriations by Fund
	
70.13	General
	-0-
	1,773,000
	
70.14
70.15	State Government 
Special Revenue
	12,361,000
	6,865,000
	
70.16 	The amounts that may be spent for each 
70.17 	purpose are specified in the following 
70.18 	subdivisions.

70.19	Subd. 2.Emergency Communication Networks
 		5,059,000
		6,865,000
	
70.20 	This onetime appropriation is from the state 
70.21 	government special revenue fund for 911 
70.22 	emergency telecommunications services.

70.23	Subd. 3.Office of Justice Programs
 		-0-
		1,300,000
	
70.24 	(a) $500,000 in fiscal year 2015 is for youth 
70.25 	intervention programs under Minnesota 
70.26 	Statutes, section 299A.73. The appropriation 
70.27 	must be used to create new programs 
70.28 	statewide in underserved areas and to help 
70.29 	existing programs serve unmet needs in 
70.30 	program communities. Of this amount, 
70.31 	$100,000 in fiscal year 2015 is for a youth 
70.32 	intervention program targeted toward 
70.33 	East African youth. This is a onetime 
70.34 	appropriation and is available until expended.
71.1 	(b) $500,000 in fiscal year 2015 is for a grant 
71.2 	to provide emergency shelter programming 
71.3 	for victims of domestic abuse and trafficking. 
71.4 	The program shall provide shelter to 
71.5 	East African women and children. The 
71.6 	appropriation must be used for the operating 
71.7 	expenses of a shelter. This is a onetime 
71.8 	appropriation, and is available until June 30, 
71.9 	2017.
71.10 	(c) $300,000 in fiscal year 2015 is for 
71.11 	grants to sexual assault advocacy programs 
71.12 	for sexual violence community prevention 
71.13 	networks. For purposes of this section, 
71.14 	"sexual assault" means a violation of 
71.15 	Minnesota Statutes, sections 609.342 to 
71.16 	609.3453. $300,000 in each of fiscal years 
71.17 	2016 and 2017 is added to the base.

71.18	Subd. 4.Fire Safety Account
 		1,300,000
		-0-
	
71.19 	$1,300,000 in fiscal year 2014 is from the fire 
71.20 	safety account in the special revenue fund 
71.21 	for activities and programs under Minnesota 
71.22 	Statutes, section 299F.012. This is a onetime 
71.23 	appropriation. By January 15, 2015, the 
71.24 	commissioner shall report to the chairs and 
71.25 	ranking minority members of the legislative 
71.26 	committees with jurisdiction over the fire 
71.27 	safety account regarding the balances and 
71.28 	uses of the account.

71.29	Subd. 5.Criminal Apprehension
 					
71.30 	$473,000 in fiscal year 2015 is to implement 
71.31 	the expungement law changes in Laws 2014, 
71.32 	chapter 246. The base for this activity shall 
71.33 	be $583,000 in each of fiscal years 2016 and 
71.34 	2017.

72.1	Sec. 4. CORRECTIONS

72.2	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	30,139,000
	
72.3 	The amounts that may be spent for each 
72.4 	purpose are specified in the following 
72.5 	subdivisions.

72.6	Subd. 2.Correctional Institutions
 		-0-
		27,289,000
	
72.7 	This includes a onetime appropriation of 
72.8 	$11,089,000.

72.9	Subd. 3.Community Services
 		-0-
		1,950,000
	
72.10 	$50,000 in fiscal year 2015 is a onetime 
72.11 	appropriation to implement the victim 
72.12 	notification provisions in article 6, sections 
72.13 	1, 2, and 5.

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

72.15
72.16	Sec. 5. PEACE OFFICER STANDARDS AND 
TRAINING (POST) BOARD
 		-0-
		50,000
	
72.17 	$50,000 in fiscal year 2015 is for training 
72.18 	state and local community safety personnel 
72.19 	in the use of crisis de-escalation techniques 
72.20 	for use with Minnesota veterans following 
72.21 	their return from active military service in 
72.22 	a combat zone. The director may consult 
72.23 	with any other state or local governmental 
72.24 	official or nongovernmental authority that the 
72.25 	director determines to be relevant, to include 
72.26 	postsecondary institutions, when selecting 
72.27 	a service provider for this training. The 
72.28 	training provider must have a demonstrated 
72.29 	understanding of the transitions and 
72.30 	challenges that veterans may experience 
72.31 	during their re-entry into society following 
72.32 	combat service. The training opportunities 
73.1 	provided must be reasonably distributed 
73.2 	statewide. This is a onetime appropriation.

73.3	Sec. 6. HUMAN RIGHTS
 	$
	0
	$
	50,000
	
73.4 	For outreach to the community regarding 
73.5 	the role and duties of the Council on Black 
73.6 	Minnesotans, the Council on Asian Pacific 
73.7 	Minnesotans, the Chicano Latino Affairs 
73.8 	Council, and the Minnesota Indian Affairs 
73.9 	Council. This is a onetime appropriation.

73.10	Sec. 7. HUMAN SERVICES
 	$
	0
	$
	45,000
	
73.11 	$45,000 in fiscal year 2015 is to implement 
73.12 	the expungement law changes in Laws 2014, 
73.13 	chapter 246. The base for this activity shall 
73.14 	be $90,000 in each of fiscal years 2016 and 
73.15 	2017.

73.16 	Sec. 8. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:

73.17	Subd. 7.Emergency Communication Networks
 		66,470,000
		70,233,000
	
73.18 	This appropriation is from the state 
73.19 	government special revenue fund for 911 
73.20 	emergency telecommunications services.
73.21 	(a) Public Safety Answering Points.
73.22 	$13,664,000 each year is to be distributed 
73.23 	as provided in Minnesota Statutes, section 
73.24 	403.113, subdivision 2.
73.25 	(b) Medical Resource Communication 
73.26 	Centers. $683,000 each year is for grants 
73.27 	to the Minnesota Emergency Medical 
73.28 	Services Regulatory Board for the Metro 
73.29 	East and Metro West Medical Resource 
73.30 	Communication Centers that were in 
73.31 	operation before January 1, 2000.
74.1 	(c) ARMER Debt Service. $17,557,000 the 
74.2 	first year and $23,261,000 the second year 
74.3 	are to the commissioner of finance to pay 
74.4 	debt service on revenue bonds issued under 
74.5 	Minnesota Statutes, section 403.275.
74.6 	Any portion of this appropriation not needed 
74.7 	to pay debt service in a fiscal year may be 
74.8 	used by the commissioner of public safety to 
74.9 	pay cash for any of the capital improvements 
74.10 	for which bond proceeds were appropriated 
74.11 	by Laws 2005, chapter 136, article 1, section 
74.12 	9, subdivision 8, or Laws 2007, chapter 54, 
74.13 	article 1, section 10, subdivision 8.
74.14 	(d) Metropolitan Council Debt Service.
74.15 	$1,410,000 each year is to the commissioner 
74.16 	of finance for payment to the Metropolitan 
74.17 	Council for debt service on bonds issued 
74.18 	under Minnesota Statutes, section 403.27.
74.19 	(e) ARMER State Backbone Operating 
74.20 	Costs. $5,060,000 each year is to the 
74.21 	commissioner of transportation for costs 
74.22 	of maintaining and operating the statewide 
74.23 	radio system backbone.
74.24 	(f) ARMER Improvements. $1,000,000 
74.25 	each year is for the Statewide Radio Board for 
74.26 	costs of design, construction, maintenance 
74.27 	of, and improvements to those elements 
74.28 	of the statewide public safety radio and 
74.29 	communication system that support mutual 
74.30 	aid communications and emergency medical 
74.31 	services or provide enhancement of public 
74.32 	safety communication interoperability.
74.33 	(g) Next Generation 911. $3,431,000 the 
74.34 	first year and $6,490,000 the second year 
74.35 	are to replace the current system with the 
75.1 	Next Generation Internet Protocol (IP) based 
75.2 	network. This appropriation is available until 
75.3 	expended. The base level of funding for 
75.4 	fiscal year 2012 shall be $2,965,000.
75.5 	(h) Grants to Local Government. 
75.6 	$5,000,000 the first year is for grants to 
75.7 	local units of government to assist with 
75.8 	the transition to the ARMER system. This 
75.9 	appropriation is available until June 30, 2012.

75.10 	EFFECTIVE DATE. This section is effective retroactively from June 29, 2011.

75.11 	Sec. 9. Laws 2013, chapter 86, article 1, section 12, subdivision 1, is amended to read:

75.12
75.13	Subdivision 1.Total Appropriation
 	$
	157,851,000
	$
	161,191,000
 161,911,000

75.14	Appropriations by Fund
	
75.15		2014
	2015
	
75.16	General
	82,213,000
	82,772,000
	
75.17	Special Revenue
	14,062,000
	13,062,000
	
75.18
75.19	State Government 
Special Revenue
	59,241,000
	63,742,000
	
75.20	Environmental
	69,000
	69,000
	
75.21	Trunk Highway
	2,266,000
	2,266,000
	
75.22 	The amounts that may be spent for each 
75.23 	purpose are specified in the following 
75.24 	subdivisions.

75.25 	Sec. 10. Laws 2013, chapter 86, article 1, section 12, subdivision 3, as amended by 
75.26 	Laws 2013, chapter 140, section 2, is amended to read:

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

75.28	Appropriations by Fund
	
75.29	General
	42,315,000
	42,924,000
	
75.30	Special Revenue
	3,000,000
	2,000,000
	
75.31
75.32	State Government 
Special Revenue
	7,000
	7,000
	
75.33	Trunk Highway
	2,266,000
	2,266,000

75.34	(a) DWI Lab Analysis; Trunk Highway Fund
					
76.1 	Notwithstanding Minnesota Statutes, section 
76.2 	161.20, subdivision 3, $1,941,000 each year 
76.3 	is from the trunk highway fund for laboratory 
76.4 	analysis related to driving-while-impaired 
76.5 	cases.

76.6	(b) Criminal History System
					
76.7 	$50,000 the first year and $580,000 the 
76.8 	second year from the general fund and, 
76.9 	notwithstanding Minnesota Statutes, section 
76.10 	299A.705, subdivision 4, $3,000,000 the 
76.11 	first year and $2,000,000 the second year 
76.12 	from the vehicle services account in the 
76.13 	special revenue fund are to replace the state 
76.14 	criminal history system. This appropriation 
76.15 	is available until expended. Of this amount, 
76.16 	$2,980,000 the first year and $2,580,000 
76.17 	the second year are for a onetime transfer 
76.18 	to the Office of Enterprise Technology for 
76.19 	start-up costs. Service level agreements 
76.20 	must document all project-related transfers 
76.21 	under this paragraph. Ongoing operating 
76.22 	and support costs for this system shall 
76.23 	be identified and incorporated into future 
76.24 	service level agreements.
76.25 	The commissioner is authorized to use funds 
76.26 	appropriated under this paragraph for the 
76.27 	purposes specified in paragraph (c).
76.28 	The general fund base for this program is 
76.29 	$4,930,000 in fiscal year 2016 and $417,000 
76.30 	in fiscal year 2017.

76.31	(c) Criminal Reporting System
					
76.32 	$1,360,000 the first year and $1,360,000 the 
76.33 	second year from the general fund are to 
76.34 	replace the state's crime reporting system
76.35 	 and include one full-time equivalent business 
77.1 	analyst. This appropriation is available until 
77.2 	expended. Of these amounts, $1,360,000 
77.3 	the first year and $1,360,000 $1,290,000
77.4 	 the second year are for a onetime transfer 
77.5 	to the Office of Enterprise Technology for 
77.6 	start-up costs. Service level agreements 
77.7 	must document all project-related transfers 
77.8 	under this paragraph. Ongoing operating 
77.9 	and support costs for this system shall 
77.10 	be identified and incorporated into future 
77.11 	service level agreements.
77.12 	The commissioner is authorized to use funds 
77.13 	appropriated under this paragraph for the 
77.14 	purposes specified in paragraph (b).
77.15 	The base funding for this program is 
77.16 	$1,360,000 in fiscal year 2016 and $380,000 
77.17 	in fiscal year 2017.

77.18	(d) Forensic Laboratory
					
77.19 	$125,000 the first year and $125,000 the 
77.20 	second year from the general fund and, 
77.21 	notwithstanding Minnesota Statutes, section 
77.22 	161.20, subdivision 3, $125,000 the first 
77.23 	year and $125,000 the second year from the 
77.24 	trunk highway fund are to replace forensic 
77.25 	laboratory equipment at the Bureau of 
77.26 	Criminal Apprehension.
77.27 	$200,000 the first year and $200,000 the 
77.28 	second year from the general fund and, 
77.29 	notwithstanding Minnesota Statutes, section 
77.30 	161.20, subdivision 3, $200,000 the first 
77.31 	year and $200,000 the second year from the 
77.32 	trunk highway fund are to improve forensic 
77.33 	laboratory staffing at the Bureau of Criminal 
77.34 	Apprehension.

77.35	(e) Livescan Fingerprinting
					
78.1 	$310,000 the first year and $389,000 the 
78.2 	second year from the general fund are to 
78.3 	maintain Livescan fingerprinting machines.

78.4	(f) Report
					
78.5 	If the vehicle services special revenue account 
78.6 	accrues an unallocated balance in excess 
78.7 	of 50 percent of the previous fiscal year's 
78.8 	expenditures, the commissioner of public 
78.9 	safety shall submit a report to the chairs 
78.10 	and ranking minority members of the house 
78.11 	of representatives and senate committees 
78.12 	with jurisdiction over transportation and 
78.13 	public safety policy and finance. The report 
78.14 	must contain specific policy and legislative 
78.15 	recommendations for reducing the fund 
78.16 	balance and avoiding future excessive fund 
78.17 	balances. The report is due within three 
78.18 	months of the fund balance exceeding the 
78.19 	threshold established in this paragraph.

78.20 	Sec. 11. Laws 2013, chapter 86, article 1, section 13, is amended to read:

78.21
78.22	Sec. 13. PEACE OFFICER STANDARDS 
AND TRAINING (POST) BOARD
 	$
	3,870,000
	$
	3,870,000
	
78.23 	(a) Excess Amounts Transferred
78.24 	This appropriation is from the peace officer 
78.25 	training account in the special revenue fund. 
78.26 	Any new receipts credited to that account in 
78.27 	the first year in excess of $3,870,000 must be 
78.28 	transferred and credited to the general fund. 
78.29 	Any new receipts credited to that account in 
78.30 	the second year in excess of $3,870,000 must 
78.31 	be transferred and credited to the general 
78.32 	fund.
78.33 	(b) Peace Officer Training 
78.34 	Reimbursements
79.1 	$2,734,000 each year is for reimbursements 
79.2 	to local governments for peace officer 
79.3 	training costs.
79.4 	(c) Training; Sexually Exploited and 
79.5 	Trafficked Youth
79.6 	Of the appropriation in paragraph (b), 
79.7 	$100,000 the first year is for reimbursements 
79.8 	to local governments for peace officer 
79.9 	training costs on sexually exploited and 
79.10 	trafficked youth, including effectively 
79.11 	identifying sex trafficked victims and 
79.12 	traffickers, investigation techniques, and 
79.13 	assisting sexually exploited youth. These 
79.14 	funds are available until June 30, 2016.
79.15 	Reimbursement shall be provided on a flat 
79.16 	fee basis of $100 per diem per officer.

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

79.18 	Sec. 12. TRANSFER; EMERGENCY MANAGEMENT.
 79.19 	On July 1, 2014, the commissioner of management and budget shall transfer 
79.20 	$3,000,000 from the general fund to the disaster assistance contingency account created in 
79.21 	article 7, section 4.

79.22 	ARTICLE 6
79.23 	PUBLIC SAFETY AND CORRECTIONS

79.24 	Section 1. Minnesota Statutes 2012, section 13.84, subdivision 5, is amended to read:
79.25 		Subd. 5.Disclosure. Private or confidential court services data shall not be 
79.26 	disclosed except:
79.27 	(a) pursuant to section 13.05;
79.28 	(b) pursuant to a statute specifically authorizing disclosure of court services data;
79.29 	(c) with the written permission of the source of confidential data;
79.30 	(d) to the court services department, parole or probation authority or state or local 
79.31 	correctional agency or facility having statutorily granted supervision over the individual 
79.32 	subject of the data;
80.1 	(e) pursuant to subdivision 6; or
80.2 	(f) pursuant to a valid court order.; or
80.3 	(g) pursuant to section 611A.06, subdivision 6.

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

80.5 	Sec. 2. Minnesota Statutes 2012, section 13.84, subdivision 6, is amended to read:
80.6 		Subd. 6.Public benefit data. (a) The responsible authority or its designee of a 
80.7 	parole or probation authority or correctional agency may release private or confidential 
80.8 	court services data related to:
80.9 	(1) criminal acts to any law enforcement agency, if necessary for law enforcement 
80.10 	purposes; and
80.11 	(2) criminal acts or delinquent acts to the victims of criminal or delinquent acts to the 
80.12 	extent that the data are necessary for the victim to assert the victim's legal right to restitution.
80.13 	(b) A parole or probation authority, a correctional agency, or agencies that provide 
80.14 	correctional services under contract to a correctional agency may release to a law 
80.15 	enforcement agency the following data on defendants, parolees, or probationers: current 
80.16 	address, dates of entrance to and departure from agency programs, and dates and times of 
80.17 	any absences, both authorized and unauthorized, from a correctional program.
80.18 	(c) The responsible authority or its designee of a juvenile correctional agency may 
80.19 	release private or confidential court services data to a victim of a delinquent act to the 
80.20 	extent the data are necessary to enable the victim to assert the victim's right to request 
80.21 	notice of release under section 611A.06. The data that may be released include only the 
80.22 	name, home address, and placement site of a juvenile who has been placed in a juvenile 
80.23 	correctional facility as a result of a delinquent act.
80.24 	(d) Upon the victim's written or electronic request and, if the victim and offender have 
80.25 	been household or family members as defined in section 518B.01, subdivision 2, paragraph 
80.26 	(b), the commissioner of corrections or the commissioner's designee may disclose to the 
80.27 	victim of an offender convicted of a qualified domestic violence-related offense as defined 
80.28 	in section 609.02, subdivision 16, notification of the city and five-digit zip code of the 
80.29 	offender's residency upon or after release from a Department of Corrections facility, unless:
80.30 	(1) the offender is not under correctional supervision at the time of the victim's 
80.31 	request;
80.32 	(2) the commissioner or the commissioner's designee does not have the city or zip 
80.33 	code; or 
81.1 	(3) the commissioner or the commissioner's designee reasonably believes that 
81.2 	disclosure of the city or zip code of the offender's residency creates a risk to the victim, 
81.3 	offender, or public safety.
81.4 	(e) Paragraph (d) applies only where the offender is serving a prison term for 
81.5 	a qualified domestic violence-related offense committed against the victim seeking 
81.6 	notification.

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

81.8 	Sec. 3. Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to read:
81.9 		Subd. 7.Continuance. (a) When it is in the best interests of the child to do so and 
81.10 	not inimical to public safety and when the child has admitted the allegations contained in 
81.11 	the petition before the judge or referee, or when a hearing has been held as provided for in 
81.12 	section 260B.163 and the allegations contained in the petition have been duly proven but, 
81.13 	in either case, before a finding of delinquency has been entered, the court may continue 
81.14 	the case for a period not to exceed 90 180 days on any one order. Such a continuance may 
81.15 	be extended for one additional successive period not to exceed 90 days and only after the 
81.16 	court has reviewed the case and entered its order for an additional continuance without a 
81.17 	finding of delinquency.The continuance may be extended for one additional successive 
81.18 	period not to exceed 180 days, but only with the consent of the prosecutor and only after 
81.19 	the court has reviewed the case and entered its order for the additional continuance 
81.20 	without a finding of delinquency. During this a continuance the court may enter an order 
81.21 	in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or 
81.22 	enter an order to hold the child in detention for a period not to exceed 15 days on any one 
81.23 	order for the purpose of completing any consideration, or any investigation or examination 
81.24 	ordered in accordance with the provisions of section 260B.157.
81.25 	(b) A prosecutor may appeal a continuance ordered in contravention of this 
81.26 	subdivision. This subdivision does not extend the court's jurisdiction under section 
81.27 	260B.193 and does not apply to an extended jurisdiction juvenile proceeding.

81.28 	EFFECTIVE DATE. This section is effective August 1, 2014, and applies to 
81.29 	offenses committed on or after that date.

81.30 	Sec. 4. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
81.31 		Subd. 2.Fire Service Advisory Committee. (a) The Fire Service Advisory 
81.32 	Committee shall provide recommendations to the commissioner of public safety on 
81.33 	fire service-related issues and shall consist of representatives of each of the following 
82.1 	organizations: two appointed by the president of the Minnesota State Fire Chiefs 
82.2 	Association, two appointed by the president of the Minnesota State Fire Department 
82.3 	Association, two appointed by the president of the Minnesota Professional Fire Fighters, 
82.4 	two appointed by the president of the League of Minnesota Cities, one appointed by the 
82.5 	president of the Minnesota Association of Townships, one appointed by the president 
82.6 	of the Insurance Federation of Minnesota, one appointed jointly by the presidents of 
82.7 	the Minnesota Chapter of the International Association of Arson Investigators and the 
82.8 	Fire Marshals Association of Minnesota, and the commissioner of public safety or the 
82.9 	commissioner's designee. The commissioner of public safety must ensure that at least 
82.10 	three of the members of the advisory committee work and reside in counties outside of the 
82.11 	seven-county metropolitan area. The committee shall provide funding recommendations 
82.12 	to the commissioner of public safety from the fire safety fund for the following purposes:
82.13 	(1) for the Minnesota Board of Firefighter Training and Education;
82.14 	(2) for programs and staffing for the State Fire Marshal Division; and
82.15 	(3) for fire-related regional response team programs and any other fire service 
82.16 	programs that have the potential for statewide impact.
82.17 	(b) The committee under paragraph (a) does not expire.

82.18 	Sec. 5. Minnesota Statutes 2012, section 611A.06, is amended by adding a subdivision 
82.19 	to read:
82.20 		Subd. 6.Offender location. (a) Upon the victim's written or electronic request 
82.21 	and if the victim and offender have been household or family members as defined in 
82.22 	section 518B.01, subdivision 2, paragraph (b), the commissioner of corrections or 
82.23 	the commissioner's designee shall disclose to the victim of an offender convicted of a 
82.24 	qualified domestic violence-related offense as defined in section 609.02, subdivision 16, 
82.25 	notification of the city and five-digit zip code of the offender's residency upon release from 
82.26 	a Department of Corrections facility, unless:
82.27 	(1) the offender is not under correctional supervision at the time of the victim's 
82.28 	request;
82.29 	(2) the commissioner or the commissioner's designee does not have the city or zip 
82.30 	code; or
82.31 	(3) the commissioner or the commissioner's designee reasonably believes that 
82.32 	disclosure of the city or zip code of the offender's residency creates a risk to the victim, 
82.33 	offender, or public safety.
82.34 	(b) All identifying information regarding the victim including, but not limited to, the 
82.35 	notification provided by the commissioner or the commissioner's designee is classified as 
83.1 	private data on individuals as defined in section 13.02, subdivision 12, and is accessible 
83.2 	only to the victim.
83.3 	(c) This subdivision applies only where the offender is serving a prison term 
83.4 	for a qualified domestic violence-related offense committed against the victim seeking 
83.5 	notification.

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

83.7 	Sec. 6. Minnesota Statutes 2012, section 645.241, is amended to read:
83.8 	645.241 PUNISHMENT FOR PROHIBITED ACTS.
83.9 	(a) Except as provided in paragraph (b), when the performance of any act is 
83.10 	prohibited by a statute, and no penalty for the violation of the same shall be imposed in 
83.11 	any statute, the doing of such act shall be a misdemeanor.
83.12 	(b) When the performance of any act is prohibited by a statute enacted or amended 
83.13 	after September 1, 2014, and no penalty for the violation of the same shall be imposed in 
83.14 	any statute, the doing of such act shall be a petty misdemeanor.

83.15 	Sec. 7. Laws 2014, chapter 240, section 26, is amended to read:
83.16 	Sec. 26. REPEALER.
 83.17 	Laws 2012, chapter 235, section 11, is repealed.

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

83.19 	ARTICLE 7
83.20 	DISASTER ASSISTANCE FOR PUBLIC ENTITIES; FEDERAL AID GRANTED

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

83.25 	Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to 
83.26 	read:
83.27 		Subd. 6b.Nonfederal share. "Nonfederal share" has the meaning given in section 
83.28 	12A.02, subdivision 7.

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

84.9 	Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision 
84.10 	to read:
84.11 		Subd. 6.Disaster assistance contingency account; appropriation. (a) A disaster 
84.12 	assistance contingency account is created in the special revenue fund in the state treasury. 
84.13 	Money in the disaster assistance contingency account is appropriated to the commissioner 
84.14 	of public safety to provide:
84.15 	(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
84.16 	(2) state public disaster assistance to eligible applicants under chapter 12B.
84.17 	(b) For appropriations under paragraph (a), clause (1), the amount appropriated is 
84.18 	100 percent of any nonfederal share for state agencies and local governments. Money 
84.19 	appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the 
84.20 	nonfederal share for publicly owned capital improvement projects.
84.21 	(c) For appropriations under paragraph (a), clause (2), the amount appropriated 
84.22 	is the amount required to pay eligible claims under chapter 12B, as certified by the 
84.23 	commissioner of public safety.
84.24 	(d) By January 15 of each year, the commissioner of management and budget shall 
84.25 	submit a report to the chairs and ranking minority members of the house of representatives 
84.26 	Ways and Means Committee and the senate Finance Committee detailing state disaster 
84.27 	assistance appropriations and expenditures under this subdivision during the previous 
84.28 	calendar year.
84.29 	(e) The governor's budget proposal submitted to the legislature under section 16A.11 
84.30 	must include recommended appropriations to the disaster assistance contingency account. 
84.31 	The governor's appropriation recommendations must be informed by the commissioner of 
84.32 	public safety's estimate of the amount of money that will be necessary to:
84.33 	(1) provide 100 percent of the nonfederal share for state agencies and local 
84.34 	governments that will receive federal financial assistance from FEMA during the next 
84.35 	biennium; and
85.1 	(2) fully pay all eligible claims under chapter 12B.
85.2 	(f) Notwithstanding section 16A.28:
85.3 	(1) funds appropriated or transferred to the disaster assistance contingency account 
85.4 	do not lapse but remain in the account until appropriated; and
85.5 	(2) funds appropriated from the disaster assistance contingency account do not lapse 
85.6 	and are available until expended.

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

85.11 	Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision 
85.12 	to read:
85.13 		Subd. 6.Local government. "Local government" has the meaning given in section 
85.14 	12.03, subdivision 5d.

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

85.20 	Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
85.21 		Subd. 3.Nonduplication of federal assistance. State assistance may not duplicate 
85.22 	or supplement eligible FEMA Public Assistance Program assistance. For eligible Public 
85.23 	Assistance Program costs, any state matching cost-share money made available for 
85.24 	that assistance must be disbursed by the Department of Public Safety to a state agency, 
85.25 	local political subdivision, Indian tribe government, or other applicant. State assistance 
85.26 	distributed by a state agency, other than the Department of Public Safety, to a political 
85.27 	subdivision local government or other applicant for disaster costs that are eligible for 
85.28 	FEMA Public Assistance Program assistance constitutes an advance of funds. Such 
85.29 	advances must be repaid to the applicable state agency when the applicant has received 
85.30 	the FEMA Public Assistance Program assistance, and whatever state matching cost-share
85.31 	 money may be made available for that assistance, from the Department of Public Safety.

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

86.10 	Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision 
86.11 	to read:
86.12 		Subd. 9.Disaster assistance. (a) The commissioner of management and budget 
86.13 	must transfer the unexpended and unencumbered balance of a general fund disaster 
86.14 	assistance appropriation that expires as provided under this section or as otherwise provided 
86.15 	by law to the disaster assistance contingency account in section 12.221, subdivision 6.
86.16 	(b) Expired disaster assistance transferred to the disaster assistance contingency 
86.17 	account is appropriated as provided under section 12.221, subdivision 6, regardless of the 
86.18 	specific disaster event or purpose for which the expired disaster assistance was originally 
86.19 	appropriated.
86.20 	(c) The commissioner must report each transfer to the chairs of the house of 
86.21 	representatives Ways and Means Committee and the senate Finance Committee.
86.22 	(d) For the purposes of this subdivision, "disaster assistance appropriation" means 
86.23 	an appropriation from the general fund to provide cost-share required for federal disaster 
86.24 	assistance or to provide other state disaster assistance under chapter 12A or 12B.

86.25 	Sec. 11. EFFECTIVE DATE.
 86.26 	This article is effective the day following final enactment.

86.27 	ARTICLE 8
86.28 	DISASTER ASSISTANCE FOR PUBLIC ENTITIES; ABSENT FEDERAL AID

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

87.3 	Sec. 2. [12B.15] DEFINITIONS.
87.4 		Subdivision 1.Application. The definitions in this section apply to this chapter.
87.5 		Subd. 2.Applicant. "Applicant" means a local government that applies for state 
87.6 	disaster assistance under this chapter.
87.7 		Subd. 3.Commissioner. "Commissioner" means the commissioner of public safety.
87.8 		Subd. 4.Director. "Director" means the director of the Division of Homeland 
87.9 	Security and Emergency Management in the Department of Public Safety.
87.10 		Subd. 5.Disaster. "Disaster" means any catastrophe, including but not limited 
87.11 	to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic 
87.12 	eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire, 
87.13 	flood, or explosion.
87.14 		Subd. 6.FEMA. "FEMA" means the Federal Emergency Management Agency.
87.15 		Subd. 7.Incident period. "Incident period" means the time interval of a disaster as 
87.16 	delineated by specific start and end dates.
87.17 		Subd. 8.Local government. "Local government" has the meaning given in section 
87.18 	12.03, subdivision 5d.

87.19 	Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
87.20 		Subdivision 1.Payment required; eligibility criteria. The director, serving as 
87.21 	the governor's authorized representative, may enter into grant agreements with eligible 
87.22 	applicants to provide state financial assistance made available as a result of a disaster 
87.23 	that satisfies all of the following criteria:
87.24 	(1) the state or applicable local government declares a disaster or emergency during 
87.25 	the incident period;
87.26 	(2) damages suffered and eligible costs incurred are the direct result of the disaster;
87.27 	(3) federal disaster assistance is not available to the applicant because the governor 
87.28 	did not request a presidential declaration of major disaster, the president denied the 
87.29 	governor's request, or the applicant is not eligible for federal disaster assistance because 
87.30 	the state or county did not meet the per capita impact indicator under FEMA's Public 
87.31 	Assistance Program;
87.32 	(4) the applicant incurred eligible damages that, on a per capita basis, equal or 
87.33 	exceed 50 percent of the countywide per capita impact indicator under FEMA's Public 
87.34 	Assistance Program;
88.1 	(5) the applicant assumes responsibility for 25 percent of the applicant's total 
88.2 	eligible costs; and
88.3 	(6) the applicant satisfies all requirements in this chapter.
88.4 		Subd. 2.Considerations; other resources available. When evaluating applicant 
88.5 	eligibility under subdivision 1, the director must consider:
88.6 	(1) the availability of other resources from federal, state, local, private, or other 
88.7 	sources; and
88.8 	(2) the availability or existence of insurance.

88.9 	Sec. 4. [12B.30] ELIGIBLE COSTS.
88.10 		Subdivision 1.Eligible costs. Costs eligible for payment under this chapter are 
88.11 	those costs that would be eligible for federal financial assistance under FEMA's Public 
88.12 	Assistance Program.
88.13 		Subd. 2.Ineligible costs. Ineligible costs are all costs not included in subdivision 
88.14 	1, including but not limited to:
88.15 	(1) ordinary operating expenses, including salaries and expenses of employees and 
88.16 	public officials that are not directly related to the disaster response;
88.17 	(2) costs for which payment has been or will be received from any other funding 
88.18 	source;
88.19 	(3) disaster-related costs that should, in the determination of the director, be covered 
88.20 	and compensated by insurance; and
88.21 	(4) projects and claims totaling less than the minimum FEMA project threshold.

88.22 	Sec. 5. [12B.35] APPLICANT'S SHARE.
88.23 	An applicant's share of eligible costs incurred must not be less than 25 percent. The 
88.24 	substantiated value of donated materials, equipment, services, and labor may be used as 
88.25 	all or part of the applicant's share of eligible costs, subject to the following:
88.26 	(1) all items and sources of donation must be indicated on the application and any 
88.27 	supporting documentation submitted to the commissioner;
88.28 	(2) the rate for calculating the value of donated, nonprofessional labor is the 
88.29 	prevailing federal minimum wage;
88.30 	(3) the value of donated equipment may not exceed the highway equipment rates 
88.31 	approved by the commissioner of transportation; and
88.32 	(4) the value of donated materials and professional services must conform to market 
88.33 	rates and be established by invoice.

89.1 	Sec. 6. [12B.40] APPLICATION PROCESS.
89.2 	(a) The director must develop application materials and may update the materials as 
89.3 	needed. Application materials must include instructions and requirements for assistance 
89.4 	under this chapter.
89.5 	(b) An applicant has 30 days from the end of the incident period or the president's 
89.6 	official denial of the governor's request for a declaration of a major disaster to provide the 
89.7 	director with written notice of intent to apply. The director may deny an application due to 
89.8 	a late notice of intent to apply.
89.9 	(c) Within 60 days after the end of the incident period or the president's official denial 
89.10 	of the governor's request for a declaration of a major disaster, the applicant must submit a 
89.11 	complete application to the director. A complete application includes the following:
89.12 	(1) the cause, location of damage, and incident period;
89.13 	(2) documentation of a local, tribal, county, or state disaster or emergency 
89.14 	declaration in response to the disaster;
89.15 	(3) a description of damages, an initial damage assessment, and the amount of 
89.16 	eligible costs incurred by the applicant;
89.17 	(4) a statement or evidence that the applicant has the ability to pay for at least 25 
89.18 	percent of total eligible costs incurred from the disaster; and
89.19 	(5) a statement or evidence that the local government has incurred damages equal to 
89.20 	or exceeding 50 percent of the federal countywide threshold in effect during the incident 
89.21 	period.
89.22 	(d) The director must review the application and supporting documentation for 
89.23 	completeness and may return the application with a request for more detailed information. 
89.24 	The director may consult with local public officials to ensure the application reflects the 
89.25 	extent and magnitude of the damage and to reconcile any differences. The application is 
89.26 	not complete until the director receives all requested information.
89.27 	(e) If the director returns an application with a request for more detailed information 
89.28 	or for correction of deficiencies, the applicant must submit all required information within 
89.29 	30 days of the applicant's receipt of the director's request. The applicant's failure to 
89.30 	provide the requested information in a timely manner without a reasonable explanation 
89.31 	may be cause for denial of the application.
89.32 	(f) The director has no more than 60 days from the receipt of a complete application 
89.33 	to approve or deny the application, or the application is deemed approved. If the director 
89.34 	denies an application, the director must send a denial letter. If the director approves an 
89.35 	application or the application is automatically deemed approved after 60 days, the director 
89.36 	must notify the applicant of the steps necessary to obtain reimbursement of eligible 
90.1 	costs, including submission of invoices or other documentation substantiating the costs 
90.2 	submitted for reimbursement.

90.3 	Sec. 7. [12B.45] CLAIMS PROCESS.
90.4 		Subdivision 1.Claims; appeal. (a) An applicant must submit to the director 
90.5 	completed claims for payment of actual and eligible costs on forms provided by the 
90.6 	director. All eligible costs claimed for payment must be documented and consistent with 
90.7 	the eligibility provisions of this chapter.
90.8 	(b) If the director denies an applicant's claim for payment, the applicant has 30 days 
90.9 	from receipt of the director's determination to appeal in writing to the commissioner. The 
90.10 	appeal must include the applicant's rationale for reversing the director's determination. The 
90.11 	commissioner has 30 days from receipt of the appeal to uphold or modify the director's 
90.12 	determination and formally respond to the applicant. If, within 30 days of receiving 
90.13 	the commissioner's decision, the applicant notifies the commissioner that the applicant 
90.14 	intends to contest the commissioner's decision, the Office of Administrative Hearings shall 
90.15 	conduct a hearing under the contested case provisions of chapter 14.
90.16 		Subd. 2.Final inspection. Upon completion of all work by an applicant, the 
90.17 	director may inspect all work claimed by the applicant. The applicant must provide the 
90.18 	director with access to records pertaining to all claimed work and must permit the director 
90.19 	to review all records relating to the work.
90.20 		Subd. 3.Closeout. The director must close out an applicant's disaster assistance 
90.21 	application after all of the following occur:
90.22 	(1) eligible work is complete;
90.23 	(2) the applicant receives the final amount due or pays any amount owed under 
90.24 	section 12B.50; and
90.25 	(3) any extant or scheduled audits are complete.
90.26 		Subd. 4.Audit. (a) An applicant must account for all funds received under this 
90.27 	chapter in conformance with generally accepted accounting principles and practices. The 
90.28 	applicant must maintain detailed records of expenditures to show that grants received under 
90.29 	this chapter were used for the purpose for which the payment was made. The applicant 
90.30 	must maintain records for five years and make the records available for inspection and 
90.31 	audit by the director or the state auditor. The applicant must keep all financial records for 
90.32 	five years after the final payment, including but not limited to all invoices and canceled 
90.33 	checks or bank statements that support all eligible costs claimed by the applicant.
90.34 	(b) The director or state auditor may audit all applicant records pertaining to an 
90.35 	application or payment under this chapter.
91.1 		Subd. 5.Reporting payments. The director must post on the division Web site a 
91.2 	list of the recipients and amounts of the payments made under this chapter.

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

91.10 	Sec. 9. EFFECTIVE DATE.
 91.11 	This article is effective the day following final enactment.

91.12 	ARTICLE 9
91.13 	TRANSPORTATION APPROPRIATIONS

91.14 	Section 1. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

91.15
91.16	Subd. 12.Rochester Maintenance Facility
 				26,430,000
 24,937,000
	
91.17 	This appropriation is from the bond proceeds 
91.18 	account in the trunk highway fund.
91.19 	To prepare a site for and design, construct, 
91.20 	furnish, and equip a new maintenance facility 
91.21 	in Rochester.

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

91.23 	Sec. 2. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
91.24 		Subd. 4.Trunk highway fund bond proceeds account. To provide the money 
91.25 	appropriated in this act from the bond proceeds account in the trunk highway fund, the 
91.26 	commissioner of management and budget shall sell and issue bonds of the state in an 
91.27 	amount up to $32,945,000$31,452,000 in the manner, upon the terms, and with the effect 
91.28 	prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
91.29 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
91.30 	commissioner of transportation. The proceeds of the bonds, except accrued interest and 
92.1 	any premium received from the sale of the bonds, must be credited to the bond proceeds 
92.2 	account in the trunk highway fund.

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

92.4 	Sec. 3. Laws 2012, chapter 287, article 2, section 1, is amended to read:
92.5 	Section 1. ROCHESTER MAINTENANCE FACILITY.
 92.6 	$16,100,000 $17,593,000 is appropriated to the commissioner of transportation 
92.7 	to design, construct, furnish, and equip the maintenance facility in Rochester and 
92.8 	corresponding remodeling of the existing district headquarters building. This appropriation 
92.9 	is from the bond proceeds account in the trunk highway fund.

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

92.11 	Sec. 4. Laws 2012, chapter 287, article 2, section 3, is amended to read:
92.12 	Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
 92.13 	To provide the money appropriated in this article from the bond proceeds account in 
92.14 	the trunk highway fund, the commissioner of management and budget shall sell and issue 
92.15 	bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the 
92.16 	terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
92.17 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
92.18 	requested by the commissioner of transportation. The proceeds of the bonds, except 
92.19 	accrued interest and any premium received from the sale of the bonds, must be credited 
92.20 	to the bond proceeds account in the trunk highway fund.

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

92.22 	Sec. 5. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to 
92.23 	read:
92.24 	Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND 
92.25 	SALE AUTHORIZATIONS REDUCED.
 92.26 	(a) The remaining balance of the appropriation in Laws 2010, Second Special 
92.27 	Session chapter 1, article 1, section 7, for the economic development and housing 
92.28 	challenge program, estimated to be $450,000, is transferred to the general fund.
92.29 	(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
92.30 	section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section 
92.31 	12A.07, is reduced by $1,358,000.
93.1 	(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
93.2 	section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota 
93.3 	Statutes, section 12A.06, is reduced by $30,000.
93.4 	(d) The appropriation in Laws 2010, Second Special Session chapter 1, article 
93.5 	1, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota 
93.6 	Statutes, section 12A.06, is reduced by $392,000.
93.7 	(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
93.8 	section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota 
93.9 	Statutes, section 12A.06, is reduced by $2,000.
93.10 	(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
93.11 	section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes, 
93.12 	section 12A.06, is reduced by $5,000.
93.13 	(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2, 
93.14 	section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes, 
93.15 	section 12A.06, is reduced by $271,000.
93.16 	(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
93.17 	section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08, 
93.18 	is reduced by $103,000.
93.19 	(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session 
93.20 	chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk 
93.21 	highways and trunk highway bridges is canceled. The bond sale authorization in Laws 
93.22 	2007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced 
93.23 	by $1,428,000 $534,000.
93.24 	(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2, 
93.25 	article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for 
93.26 	grants to local governments for capital costs related to rehabilitation and replacement of 
93.27 	local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes, 
93.28 	section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special 
93.29 	Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
93.30 	(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1, 
93.31 	article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement 
93.32 	pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond 
93.33 	sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17, 
93.34 	subdivision 2, is reduced by $2,133,000.
94.1 	(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
94.2 	section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant 
94.3 	to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.

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

94.5 	Sec. 6. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

94.6	Subd. 2.Multimodal Systems
 					
94.7 	(a) Aeronautics

94.8
94.9	(1) Airport Development and Assistance
		13,648,000
14,648,000
		13,648,000
16,648,000
	
94.10 	This appropriation is from the state 
94.11 	airports fund and must be spent according 
94.12 	to Minnesota Statutes, section 360.305, 
94.13 	subdivision 4.
94.14 	The base appropriation for fiscal years 2016 
94.15 	and 2017 is $14,298,000 for each year.
94.16 	Notwithstanding Minnesota Statutes, section 
94.17 	16A.28, subdivision 6, this appropriation is 
94.18 	available for five years after appropriation. 
94.19 	If the appropriation for either year is 
94.20 	insufficient, the appropriation for the other 
94.21 	year is available for it.
94.22 	For the current biennium, the commissioner 
94.23 	of transportation may establish different 
94.24 	local contribution rates for airport projects 
94.25 	than those established in Minnesota Statutes, 
94.26 	section 360.305, subdivision 4.

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

94.28	Appropriations by Fund
	
94.29	Airports
	5,286,000
	5,286,000
	
94.30	Trunk Highway
	1,100,000
	1,100,000
	
94.31 	$65,000 in each year is from the state airports 
94.32 	fund for the Civil Air Patrol.

95.1
95.2	(b) Transit
		17,226,000
		17,245,000
23,777,000

95.3	Appropriations by Fund
	
95.4
95.5	General
	16,451,000
	16,470,000
23,002,000
	
95.6	Trunk Highway
	775,000
	775,000
	
95.7 	$100,000 in each year is from the general 
95.8 	fund for the administrative expenses of the 
95.9 	Minnesota Council on Transportation Access 
95.10 	under Minnesota Statutes, section 174.285.
95.11 	$78,000 in each year is from the general 
95.12 	fund for grants to greater Minnesota transit 
95.13 	providers as reimbursement for the costs of 
95.14 	providing fixed route public transit rides free 
95.15 	of charge under Minnesota Statutes, section 
95.16 	174.24, subdivision 7, for veterans certified 
95.17 	as disabled.
95.18 	$32,000 in the second year is from the 
95.19 	general fund for allocation to public transit 
95.20 	systems under Minnesota Statutes, section 
95.21 	174.24, in amounts that reflect the respective 
95.22 	foregone fare revenues from transit service 
95.23 	under article 11, section 39.
95.24 	The base appropriation from the general fund 
95.25 	for fiscal years 2016 and 2017 is $17,245,000 
95.26 	in each year.

95.27	(c) Passenger Rail
		500,000
		500,000
	
95.28 	This appropriation is from the general 
95.29 	fund for passenger rail system planning, 
95.30 	alternatives analysis, environmental analysis, 
95.31 	design, and preliminary engineering under 
95.32 	Minnesota Statutes, sections 174.632 to 
95.33 	174.636.

95.34
95.35	(d) Freight
		5,653,000
		5,153,000
7,153,000

96.1	Appropriations by Fund
	
96.2
96.3	General
	756,000
	256,000
2,256,000
	
96.4	Trunk Highway
	4,897,000
	4,897,000
	
96.5 	$500,000 in the first year is from the general 
96.6 	fund to pay for the department's share of costs 
96.7 	associated with the cleanup of contaminated 
96.8 	state rail bank property. This appropriation is 
96.9 	available until expended.
96.10 	$2,000,000 in the second year is from 
96.11 	the general fund for development and 
96.12 	implementation of safety improvements 
96.13 	at highway-rail grade crossings along rail 
96.14 	corridors in which oil or other hazardous 
96.15 	materials are transported. The commissioner 
96.16 	shall identify highway-rail grade crossing 
96.17 	locations and improvements in consultation 
96.18 	with railroads and relevant road authorities. 
96.19 	This is a onetime appropriation and is 
96.20 	available until expended.

96.21
96.22	(e) Safe Routes to School
		250,000
		250,000
500,000
	
96.23 	This appropriation is from the general fund 
96.24 	for non-infrastructure activities in the safe 
96.25 	routes to school program under Minnesota 
96.26 	Statutes, section 174.40, subdivision 7a.

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

96.28 	Sec. 7. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:

96.29	Subd. 3.State Roads

96.30
96.31	(a) Operations and Maintenance
		262,395,000
297,395,000
		262,395,000
280,395,000
	
96.32 	$5,000,000 in each year is for accelerated 
96.33 	replacement of snow plowing equipment.
97.1 	$10,000,000 in the first year is for expenses 
97.2 	related to pavement repairs necessitated by 
97.3 	the effects of the 2013-2014 winter season.
97.4 	The base appropriation for operations and 
97.5 	maintenance for fiscal years 2016 and 2017 
97.6 	is $267,395,000 in each year.

97.7
97.8	(b) Program Planning and Delivery
		206,795,000
		206,720,000
209,840,000

97.9	Appropriations by Fund
	
97.10		2014
	2015
	
97.11	H.U.T.D.
	75,000
	0
	
97.12
97.13	Trunk Highway
	206,720,000
	206,720,000
209,840,000
	
97.14 	The base appropriation for program planning 
97.15 	and delivery for fiscal years 2016 and 2017 
97.16 	is $206,720,000 in each year.
97.17 	$250,000 in each year is for the department's 
97.18 	administrative costs for creation and 
97.19 	operation of the Joint Program Office for 
97.20 	Economic Development and Alternative 
97.21 	Finance, including costs of hiring a 
97.22 	consultant and preparing required reports.
97.23 	$130,000 in each year is available for 
97.24 	administrative costs of the targeted group 
97.25 	business program.
97.26 	$266,000 in each year is available for grants 
97.27 	to metropolitan planning organizations 
97.28 	outside the seven-county metropolitan area.
97.29 	$75,000 in each year is available for a 
97.30 	transportation research contingent account 
97.31 	to finance research projects that are 
97.32 	reimbursable from the federal government or 
97.33 	from other sources. If the appropriation for 
97.34 	either year is insufficient, the appropriation 
97.35 	for the other year is available for it.
98.1 	$900,000 in each year is available for 
98.2 	grants for transportation studies outside 
98.3 	the metropolitan area to identify critical 
98.4 	concerns, problems, and issues. These 
98.5 	grants are available: (1) to regional 
98.6 	development commissions; (2) in regions 
98.7 	where no regional development commission 
98.8 	is functioning, to joint powers boards 
98.9 	established under agreement of two or 
98.10 	more political subdivisions in the region to 
98.11 	exercise the planning functions of a regional 
98.12 	development commission; and (3) in regions 
98.13 	where no regional development commission 
98.14 	or joint powers board is functioning, to the 
98.15 	department's district office for that region.
98.16 	$75,000 in the first year is from the highway 
98.17 	user tax distribution fund to the commissioner 
98.18 	for a grant to the Humphrey School of Public 
98.19 	Affairs at the University of Minnesota for 
98.20 	WorkPlace Telework program congestion 
98.21 	relief efforts consisting of maintenance of 
98.22 	Web site tools and content. This is a onetime 
98.23 	appropriation and is available in the second 
98.24 	year.
98.25 	$120,000 in the second year is from the trunk 
98.26 	highway fund for the purpose of education 
98.27 	and outreach related to highway work 
98.28 	zone safety initiatives. This is a onetime 
98.29 	appropriation.

98.30	(c) State Road Construction Activity

98.31
98.32	(1) Economic Recovery Funds - Federal 
Highway Aid
		1,000,000
		1,000,000
	
98.33 	This appropriation is to complete projects 
98.34 	using funds made available to the 
98.35 	commissioner of transportation under 
99.1 	title XII of the American Recovery and 
99.2 	Reinvestment Act of 2009, Public Law 
99.3 	111-5, and implemented under Minnesota 
99.4 	Statutes, section 161.36, subdivision 7. The 
99.5 	base appropriation is $1,000,000 in fiscal 
99.6 	year 2016 and $0 in fiscal year 2017.

99.7
99.8	(2) State Road Construction
		909,400,000
929,900,000
		815,600,000
862,105,000
	
99.9 	It is estimated that these appropriations will 
99.10 	be funded as follows:

99.11	Appropriations by Fund
	
99.12
99.13	Federal Highway 
Aid
	489,200,000
	482,200,000
	
99.14
99.15	Highway User Taxes
	420,200,000
440,700,000
	333,400,000
379,905,000
	
99.16 	The commissioner of transportation shall 
99.17 	notify the chairs and ranking minority 
99.18 	members of the legislative committees with 
99.19 	jurisdiction over transportation finance of 
99.20 	any significant events that should cause these 
99.21 	estimates to change.
99.22 	This appropriation is for the actual 
99.23 	construction, reconstruction, and 
99.24 	improvement of trunk highways, including 
99.25 	design-build contracts and consultant usage 
99.26 	to support these activities. This includes the 
99.27 	cost of actual payment to landowners for 
99.28 	lands acquired for highway rights-of-way, 
99.29 	payment to lessees, interest subsidies, and 
99.30 	relocation expenses.
99.31 	The base appropriation for state road 
99.32 	construction for fiscal years 2016 and 2017 
99.33 	is $645,000,000 $645,505,000 in each year.
99.34 	$10,000,000 in each year is for the 
99.35 	transportation economic development 
99.36 	program under Minnesota Statutes, section 
100.1 	174.12. This appropriation is available until 
100.2 	expended.
100.3 	The commissioner may expend up to one-half 
100.4 	of one percent of the federal appropriations 
100.5 	under this clause as grants to opportunity 
100.6 	industrialization centers and other nonprofit 
100.7 	job training centers for job training programs 
100.8 	related to highway construction.
100.9 	The commissioner may transfer up to 
100.10 	$15,000,000 each year to the transportation 
100.11 	revolving loan fund.
100.12 	The commissioner may receive money 
100.13 	covering other shares of the cost of 
100.14 	partnership projects. These receipts are 
100.15 	appropriated to the commissioner for these 
100.16 	projects.
100.17 	Notwithstanding subdivision 6 and the 
100.18 	restrictions on the use of trunk highway 
100.19 	funds in Minnesota Statutes, section 165.15, 
100.20 	the commissioner may transfer up to 
100.21 	$6,000,000 from the trunk highway fund 
100.22 	under this appropriation to the Stillwater lift 
100.23 	bridge endowment account under Minnesota 
100.24 	Statutes, section 165.15.
100.25 	$6,500,000 in the first year and $25,000,000 
100.26 	in the second year are for the corridors 
100.27 	of commerce program under Minnesota 
100.28 	Statutes, section 161.088, and may include 
100.29 	right-of-way acquisition for projects included 
100.30 	in the program. The amount appropriated 
100.31 	in the first year is for projects located 
100.32 	outside of a metropolitan county, as defined 
100.33 	in Minnesota Statutes, section 473.121, 
100.34 	subdivision 4. The commissioner may 
100.35 	identify projects based on the most recent 
101.1 	selection process or may perform a new 
101.2 	selection. These are onetime appropriations 
101.3 	and are available until expended.
101.4 	$14,000,000 in the first year and $21,000,000 
101.5 	in the second year are for the specific 
101.6 	improvements to "Old Highway 14" 
101.7 	described in the settlement agreement and 
101.8 	release executed January 7, 2014, between 
101.9 	the state and Steele and Waseca Counties. 
101.10 	These are onetime appropriations and are 
101.11 	available until expended.
101.12 	$505,000 in the second year is for costs of 
101.13 	implementing highway work zone safety 
101.14 	initiatives. The base appropriation for this 
101.15 	purpose is $505,000 in each of fiscal years 
101.16 	2016 and 2017.

101.17	(d) Highway Debt Service
		158,417,000
		189,821,000
	
101.18 	$148,917,000 in the first year and 
101.19 	$180,321,000 in the second year are for 
101.20 	transfer to the state bond fund. If an 
101.21 	appropriation is insufficient to make all 
101.22 	transfers required in the year for which it is 
101.23 	made, the commissioner of management and 
101.24 	budget shall notify the senate Committee 
101.25 	on Finance and the house of representatives 
101.26 	Committee on Ways and Means of the 
101.27 	amount of the deficiency and shall then 
101.28 	transfer that amount under the statutory open 
101.29 	appropriation. Any excess appropriation 
101.30 	cancels to the trunk highway fund.

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

101.32	Appropriations by Fund
	
101.33	General
	3,000
	3,000
	
101.34	Trunk Highway
	5,168,000
	5,168,000
	
102.1 	The general fund appropriation is to equip 
102.2 	and operate the Roosevelt signal tower for 
102.3 	Lake of the Woods weather broadcasting.

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

102.5 	Sec. 8. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:

102.6	Subd. 6.Transfers
 					
102.7 	(a) With the approval of the commissioner of 
102.8 	management and budget, the commissioner 
102.9 	of transportation may transfer unencumbered 
102.10 	balances among the appropriations from the 
102.11 	trunk highway fund and the state airports 
102.12 	fund made in this section. No transfer 
102.13 	may be made from the appropriations for 
102.14 	state road construction or for debt service. 
102.15 	Transfers under this paragraph may not be 
102.16 	made between funds. Transfers under this 
102.17 	paragraph must be reported immediately to 
102.18 	the chairs and ranking minority members of 
102.19 	the legislative committees with jurisdiction 
102.20 	over transportation finance.
102.21 	(b) The commissioner shall transfer from 
102.22 	the flexible highway account in the county 
102.23 	state-aid highway fund: (1) $5,700,000 in the 
102.24 	first year and $21,000,000 in the second year 
102.25 	to the trunk highway fund; (2) $13,000,000 
102.26 	in the first year to the municipal turnback 
102.27 	account in the municipal state-aid street fund; 
102.28 	(3) $10,000,000 in the second year to the 
102.29 	municipal turnback account in the municipal 
102.30 	state-aid street fund; and (4) the remainder 
102.31 	in each year to the county turnback account 
102.32 	in the county state-aid highway fund. The 
102.33 	funds transferred are for highway turnback 
103.1 	purposes as provided under Minnesota 
103.2 	Statutes, section 161.081, subdivision 3.

103.3 	Sec. 9. Laws 2013, chapter 117, article 1, section 4, is amended to read:

103.4
103.5	Sec. 4. METROPOLITAN COUNCIL
 	$
	107,889,000
	$
	76,970,000
79,804,000
	
103.6 	This appropriation is from the general fund 
103.7 	for transit system operations under Minnesota 
103.8 	Statutes, sections 473.371 to 473.449.
103.9 	The base appropriation for fiscal years 2016 
103.10 	and 2017 is $76,686,000 $76,626,000 in 
103.11 	each year.
103.12 	$37,000,000 in the first year is for the 
103.13 	Southwest Corridor light rail transit line 
103.14 	from the Hiawatha light rail transit line in 
103.15 	downtown Minneapolis to Eden Prairie, to be 
103.16 	used for environmental studies, preliminary 
103.17 	engineering, acquisition of real property, or 
103.18 	interests in real property, and design. This 
103.19 	is a onetime appropriation and is available 
103.20 	until expended.
103.21 	$500,000 in the second year is for transit 
103.22 	shelter improvements under Minnesota 
103.23 	Statutes, section 473.41. This is a onetime 
103.24 	appropriation.
103.25 	$144,000 in the second year is for foregone 
103.26 	fare revenues from transit service under 
103.27 	article 11, section 39. The Metropolitan 
103.28 	Council shall allocate a portion of the 
103.29 	funds under this appropriation to transit 
103.30 	providers receiving financial assistance under 
103.31 	Minnesota Statutes, section 473.388, based 
103.32 	on respective foregone fare revenues. This is 
103.33 	a onetime appropriation.
104.1 	$250,000 in the second year is for allocation 
104.2 	to replacement service providers operating 
104.3 	under Minnesota Statutes, section 473.388. 
104.4 	This is a onetime appropriation.
104.5 	$1,000,000 in the second year is for arterial 
104.6 	bus rapid transit development, which 
104.7 	may include, but is not limited to, design, 
104.8 	engineering, construction, capital costs, 
104.9 	technology, equipment, and rolling stock. 
104.10 	This is a onetime appropriation and is 
104.11 	available until expended.
104.12 	$1,000,000 in the second year is for design 
104.13 	and construction of a bus rapid transit station 
104.14 	on interstate 35W and Lake Street. This is a 
104.15 	onetime appropriation and is available until 
104.16 	expended.

104.17 	Sec. 10. Laws 2013, chapter 117, article 1, section 5, subdivision 2, is amended to read:

104.18	Subd. 2.Administration and Related Services 

104.19	(a) Office of Communications
		504,000
		504,000

104.20	Appropriations by Fund
	
104.21	General
	111,000
	111,000
	
104.22	Trunk Highway
	393,000
	393,000

104.23
104.24	(b) Public Safety Support
		8,439,000
		8,439,000
8,499,000

104.25	Appropriations by Fund
	
104.26
104.27	General
	3,467,000
	3,467,000
3,527,000
	
104.28	H.U.T.D.
	1,366,000
	1,366,000
	
104.29	Trunk Highway
	3,606,000
	3,606,000
	
104.30 	$380,000 in each year is from the general 
104.31 	fund for payment of public safety officer 
104.32 	survivor benefits under Minnesota Statutes, 
104.33 	section 299A.44. If the appropriation for 
105.1 	either year is insufficient, the appropriation 
105.2 	for the other year is available for it.
105.3 	$1,367,000 in each year is from the general 
105.4 	fund to be deposited in the public safety 
105.5 	officer's benefit account. This money 
105.6 	is available for reimbursements under 
105.7 	Minnesota Statutes, section 299A.465.
105.8 	$600,000 in each year is from the general 
105.9 	fund and $100,000 in each year is from the 
105.10 	trunk highway fund for soft body armor 
105.11 	reimbursements under Minnesota Statutes, 
105.12 	section 299A.38.
105.13 	$792,000 in each year is from the general 
105.14 	fund for transfer by the commissioner of 
105.15 	management and budget to the trunk highway 
105.16 	fund on December 31, 2013, and December 
105.17 	31, 2014, respectively, in order to reimburse 
105.18 	the trunk highway fund for expenses not 
105.19 	related to the fund. These represent amounts 
105.20 	appropriated out of the trunk highway 
105.21 	fund for general fund purposes in the 
105.22 	administration and related services program.
105.23 	$610,000 in each year is from the highway 
105.24 	user tax distribution fund for transfer by the 
105.25 	commissioner of management and budget 
105.26 	to the trunk highway fund on December 31, 
105.27 	2013, and December 31, 2014, respectively, 
105.28 	in order to reimburse the trunk highway 
105.29 	fund for expenses not related to the fund. 
105.30 	These represent amounts appropriated out 
105.31 	of the trunk highway fund for highway 
105.32 	user tax distribution fund purposes in the 
105.33 	administration and related services program.
105.34 	$716,000 in each year is from the highway 
105.35 	user tax distribution fund for transfer by the 
106.1 	commissioner of management and budget to 
106.2 	the general fund on December 31, 2013, and 
106.3 	December 31, 2014, respectively, in order to 
106.4 	reimburse the general fund for expenses not 
106.5 	related to the fund. These represent amounts 
106.6 	appropriated out of the general fund for 
106.7 	operation of the criminal justice data network 
106.8 	related to driver and motor vehicle licensing.
106.9 	Before January 15, 2015, the commissioner 
106.10 	of public safety shall review the amounts and 
106.11 	purposes of the transfers under this paragraph 
106.12 	and shall recommend necessary changes to 
106.13 	the legislative committees with jurisdiction 
106.14 	over transportation finance.
106.15 	$60,000 in the second year is from the 
106.16 	general fund for light rail safety oversight 
106.17 	under Minnesota Statutes, section 299A.017. 
106.18 	The base appropriation from the general fund 
106.19 	for this purpose in fiscal years 2016 and 2017 
106.20 	is $60,000 each year.

106.21	(c) Technology and Support Service
		3,685,000
		3,685,000

106.22	Appropriations by Fund
	
106.23	General
	1,322,000
	1,322,000
	
106.24	H.U.T.D. 
	19,000
	19,000
	
106.25	Trunk Highway
	2,344,000
	2,344,000

106.26 	Sec. 11. Laws 2013, chapter 117, article 1, section 5, subdivision 3, is amended to read:

106.27	Subd. 3.State Patrol

106.28
106.29	(a) Patrolling Highways
		72,522,000
		72,522,000
78,471,000

106.30	Appropriations by Fund
	
106.31	General
	37,000
	37,000
	
106.32	H.U.T.D. 
	92,000
	92,000
	
106.33
106.34	Trunk Highway
	72,393,000
	72,393,000
78,342,000
	
107.1 	$5,949,000 in the second year is from the 
107.2 	trunk highway fund to recruit, hire, train at 
107.3 	the State Patrol Academy, equip, and provide 
107.4 	salary for 48 troopers.
107.5 	The base appropriation from the trunk 
107.6 	highway fund is $77,893,000 in each of fiscal 
107.7 	years 2016 and 2017.

107.8	(b) Commercial Vehicle Enforcement
		7,796,000
		7,796,000

107.9107.10
	(c) Capitol Security
		4,355,000
		4,355,000
6,355,000
	
107.11 	This appropriation is from the general fund.
107.12 	$1,250,000 in each year2014 and $3,250,000 
107.13 	in 2015 and each subsequent year is to 
107.14 	implement the recommendations of the 
107.15 	advisory committee on Capitol Area Security 
107.16 	under Minnesota Statutes, section 299E.04, 
107.17 	including the creation of an emergency 
107.18 	manager position under Minnesota Statutes, 
107.19 	section 299E.01, subdivision 2, and an 
107.20 	increase in the number of State Patrol 
107.21 	troopers and other security officers assigned 
107.22 	to the Capitol complex.
107.23 	The commissioner may not: (1) spend 
107.24 	any money from the trunk highway fund 
107.25 	for capitol security; or (2) permanently 
107.26 	transfer any state trooper from the patrolling 
107.27 	highways activity to capitol security.
107.28 	The commissioner may not transfer any 
107.29 	money appropriated to the commissioner 
107.30 	under this section: (1) to capitol security; or 
107.31 	(2) from capitol security.

107.32	(d) Vehicle Crimes Unit
		693,000
		693,000
	
107.33 	This appropriation is from the highway user 
107.34 	tax distribution fund.
108.1 	This appropriation is to investigate: (1) 
108.2 	registration tax and motor vehicle sales tax 
108.3 	liabilities from individuals and businesses 
108.4 	that currently do not pay all taxes owed; 
108.5 	and (2) illegal or improper activity related 
108.6 	to sale, transfer, titling, and registration of 
108.7 	motor vehicles.

108.8 	Sec. 12. Laws 2013, chapter 117, article 1, section 5, subdivision 4, is amended to read:

108.9	Subd. 4.Driver and Vehicle Services

108.10
108.11	(a) Vehicle Services
		27,909,000
		28,430,000
28,453,000

108.12	Appropriations by Fund
	
108.13
108.14	Special Revenue
	19,673,000
	19,771,000
20,217,000
	
108.15	H.U.T.D. 
	8,236,000
	8,236,000
	
108.16 	The special revenue fund appropriation is 
108.17 	from the vehicle services operating account.
108.18 	$650,000 in each year is from the special 
108.19 	revenue fund for seven additional positions 
108.20 	to enhance customer service related to 
108.21 	vehicle title issuance.
108.22 	$521,000 in the second year is from 
108.23 	the special revenue fund for the vehicle 
108.24 	services portion of a new telephone 
108.25 	system and is for transfer to the Office of 
108.26 	Enterprise Technology for construction and 
108.27 	development of the system. This is a onetime 
108.28 	appropriation and is available until expended.
108.29 	$23,000 in the second year is from the special 
108.30 	revenue fund for expenses related to the task 
108.31 	force on motor vehicle insurance coverage 
108.32 	verification. This is a onetime appropriation.
108.33 	The base appropriation from the special 
108.34 	revenue fund is $27,909,000$19,673,000 
109.1 	for fiscal year 2016 and $27,909,000
109.2 	$19,673,000 for fiscal year 2017.

109.3
109.4	(b) Driver Services
		28,749,000
		29,162,000
 30,001,000

109.5	Appropriations by Fund
	
109.6
109.7	Special Revenue
	28,748,000
	29,161,000
 30,000,000
	
109.8	Trunk Highway
	1,000
	1,000
	
109.9 	The special revenue fund appropriation is 
109.10 	from the driver services operating account.
109.11 	$71,000 in the second year is from the special 
109.12 	revenue fund for one additional position 
109.13 	related to facial recognition.
109.14 	$279,000 in the second year is from 
109.15 	the special revenue fund for the driver 
109.16 	services portion of a new telephone 
109.17 	system and is for transfer to the Office of 
109.18 	Enterprise Technology for construction and 
109.19 	development of the system. This is a onetime 
109.20 	appropriation and is available until expended.
109.21 	$37,000 in the first year and $33,000 in the 
109.22 	second year are from the special revenue 
109.23 	fund for one half-time position to assist with 
109.24 	the Novice Driver Improvement Task Force 
109.25 	under Minnesota Statutes, section 171.0701, 
109.26 	subdivision 1a. The base appropriation for 
109.27 	this position is $6,000 in fiscal year 2016 and 
109.28 	$0 in fiscal year 2017.
109.29 	$67,000 in the second year is from the 
109.30 	special revenue fund for one new position to 
109.31 	administer changes to the ignition interlock 
109.32 	program. The base appropriation for this 
109.33 	position in fiscal years 2016 and 2017 is 
109.34 	$62,000 in each year.
110.1 	$23,000 in the second year is from the special 
110.2 	revenue fund for expenses related to the task 
110.3 	force on motor vehicle insurance coverage 
110.4 	verification. This is a onetime appropriation.
110.5 	$816,000 in the second year is from 
110.6 	the special revenue fund for 12 new 
110.7 	positions to implement improved driving 
110.8 	skill examination scheduling. The base 
110.9 	appropriation for these positions is $759,000 
110.10 	in fiscal year 2016 and $774,000 in fiscal 
110.11 	year 2017.
110.12 	The base appropriation from the special 
110.13 	revenue fund is $28,851,000$29,609,000 
110.14 	for fiscal year 2016 and $28,845,000
110.15 	$29,618,000 for fiscal year 2017.

110.16 	Sec. 13. TRANSFER; RAILROAD AND PIPELINE SAFETY.
 110.17 	On or before July 31, 2014, the commissioner of management and budget shall 
110.18 	transfer $1,574,000 from the general fund to the railroad and pipeline safety account in the 
110.19 	special revenue fund under Minnesota Statutes, section 299A.55. This is a onetime transfer.

110.20 	ARTICLE 10
110.21 	RAILROAD AND PIPELINE SAFETY

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

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

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

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

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

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

111.9 	Sec. 4. [115E.042] PREPAREDNESS AND RESPONSE FOR CERTAIN 
111.10 	RAILROADS.
111.11 		Subdivision 1.Application. In addition to the requirements of section 115E.04, 
111.12 	a person who owns or operates railroad car rolling stock transporting a unit train must 
111.13 	comply with this section.
111.14 		Subd. 2.Training. (a) Each railroad must offer training to each fire department 
111.15 	having jurisdiction along the route of unit trains. Initial training under this subdivision 
111.16 	must be offered to each fire department by June 30, 2016, and refresher training must be 
111.17 	offered to each fire department at least once every three years thereafter.
111.18 	(b) The training must address the general hazards of oil and hazardous substances, 
111.19 	techniques to assess hazards to the environment and to the safety of responders and the 
111.20 	public, factors an incident commander must consider in determining whether to attempt to 
111.21 	suppress a fire or to evacuate the public and emergency responders from an area, and other 
111.22 	strategies for initial response by local emergency responders. The training must include 
111.23 	suggested protocol or practices for local responders to safely accomplish these tasks.
111.24 		Subd. 3.Coordination. Beginning June 30, 2015, each railroad must communicate 
111.25 	at least annually with each county or city emergency manager, safety representatives of 
111.26 	railroad employees governed by the Railway Labor Act, and a senior fire department 
111.27 	officer of each fire department having jurisdiction along the route of a unit train, to ensure 
111.28 	coordination of emergency response activities between the railroad and local responders.
111.29 		Subd. 4.Response capabilities; time limits. (a) Following confirmation of a 
111.30 	discharge, a railroad must deliver and deploy sufficient equipment and trained personnel to 
111.31 	contain and recover discharged oil or hazardous substances and to protect the environment 
111.32 	and public safety.
112.1 	(b) Within one hour of confirmation of a discharge, a railroad must provide a 
112.2 	qualified company employee to advise the incident commander. The employee may be 
112.3 	made available by telephone, and must be authorized to deploy all necessary response 
112.4 	resources of the railroad.
112.5 	(c) Within three hours of confirmation of a discharge, a railroad must be capable of 
112.6 	delivering monitoring equipment and a trained operator to assist in protection of responder 
112.7 	and public safety. A plan to ensure delivery of monitoring equipment and an operator to a 
112.8 	discharge site must be provided each year to the commissioner of public safety.
112.9 	(d) Within three hours of confirmation of a discharge, a railroad must provide qualified 
112.10 	personnel at a discharge site to assess the discharge and to advise the incident commander.
112.11 	(e) A railroad must be capable of deploying containment boom from land across 
112.12 	sewer outfalls, creeks, ditches, and other places where oil or hazardous substances 
112.13 	may drain, in order to contain leaked material before it reaches those resources. The 
112.14 	arrangement to provide containment boom and staff may be made by:
112.15 	(1) training and caching equipment with local jurisdictions;
112.16 	(2) training and caching equipment with a fire mutual-aid group;
112.17 	(3) means of an industry cooperative or mutual-aid group;
112.18 	(4) deployment of a contractor;
112.19 	(5) deployment of a response organization under state contract; or
112.20 	(6) other dependable means acceptable to the Pollution Control Agency.
112.21 	(f) Each arrangement under paragraph (e) must be confirmed each year. Each 
112.22 	arrangement must be tested by drill at least once every five years.
112.23 	(g) Within eight hours of confirmation of a discharge, a railroad must be capable of 
112.24 	delivering and deploying containment boom, boats, oil recovery equipment, trained staff, 
112.25 	and all other materials needed to provide:
112.26 	(1) on-site containment and recovery of a volume of oil equal to ten percent of the 
112.27 	calculated worst case discharge at any location along the route; and
112.28 	(2) protection of listed sensitive areas and potable water intakes within one mile of 
112.29 	a discharge site and within eight hours of water travel time downstream in any river 
112.30 	or stream that the right-of-way intersects.
112.31 	(h) Within 60 hours of confirmation of a discharge, a railroad must be capable of 
112.32 	delivering and deploying additional containment boom, boats, oil recovery equipment, 
112.33 	trained staff, and all other materials needed to provide containment and recovery of a 
112.34 	worst case discharge and to protect listed sensitive areas and potable water intakes at any 
112.35 	location along the route.
113.1 		Subd. 5.Railroad drills. Each railroad must conduct at least one oil containment, 
113.2 	recovery, and sensitive area protection drill every three years, at a location and time 
113.3 	chosen by the Pollution Control Agency, and attended by safety representatives of railroad 
113.4 	employees governed by the Railway Labor Act.
113.5 		Subd. 6.Prevention and response plans. (a) By June 30, 2015, a railroad shall 
113.6 	submit the prevention and response plan required under section 115E.04, as necessary to 
113.7 	comply with the requirements of this section, to the commissioner of the Pollution Control 
113.8 	Agency on a form designated by the commissioner.
113.9 	(b) By June 30 of every third year following a plan submission under this subdivision, 
113.10 	a railroad must update and resubmit the prevention and response plan to the commissioner.

113.11 	EFFECTIVE DATE. Subdivisions 1 to 3 and 6 are effective the day following final 
113.12 	enactment. Subdivisions 4 and 5 are effective July 1, 2015.

113.13 	Sec. 5. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision 
113.14 	to read:
113.15 		Subd. 3a.Railroad preparedness; pollution control. The Pollution Control 
113.16 	Agency shall carry out environmental protection activities related to railroad discharge 
113.17 	preparedness. Duties under this subdivision include, but are not limited to:
113.18 	(1) assisting local emergency managers and fire officials in understanding the 
113.19 	hazards of oil and hazardous substances, as well as general strategies for containment and 
113.20 	environmental protection;
113.21 	(2) assisting railroads to identify natural resources and sensitive areas, and to devise 
113.22 	strategies to contain and recover oil and hazardous substances from land and waters 
113.23 	along routes;
113.24 	(3) facilitating cooperation between railroads for mutual aid arrangements that 
113.25 	provide training, staff, and equipment as required by this chapter;
113.26 	(4) participating in drills and training sessions;
113.27 	(5) reviewing each railroad's prevention and response plan for compliance with 
113.28 	the requirements of this chapter, and assessing each railroad's readiness to protect the 
113.29 	environment;
113.30 	(6) conducting inspections and drills as necessary to determine the railroad's 
113.31 	compliance with the requirements of this chapter and ability to protect the environment;
113.32 	(7) conducting follow-up corrective action directives, orders, and enforcement as 
113.33 	necessary based on a finding of inadequate environmental protection preparedness; and
114.1 	(8) soliciting involvement and advice concerning preparedness activities and 
114.2 	requirements from safety representatives of railroad employees governed by the Railway 
114.3 	Labor Act.

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

114.5 	Sec. 6. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision 
114.6 	to read:
114.7 		Subd. 3b.Railroad and pipeline preparedness; public safety. The commissioner 
114.8 	of public safety shall carry out public safety protection activities related to railroad and 
114.9 	pipeline spill and discharge preparedness. Duties under this subdivision include, but 
114.10 	are not limited to:
114.11 	(1) assisting local emergency managers and fire officials to understand the hazards 
114.12 	of oil and hazardous substances, as well as general strategies for hazard identification, 
114.13 	initial isolation, and other actions necessary to ensure public safety;
114.14 	(2) assisting railroads and pipeline companies to develop suggested protocols and 
114.15 	practices for local first responder use in protecting the public's safety;
114.16 	(3) facilitating cooperation between railroads, pipeline companies, county and city 
114.17 	emergency managers, and other public safety organizations;
114.18 	(4) participating in major exercises and training sessions;
114.19 	(5) assisting local units of government to incorporate railroad and pipeline hazard 
114.20 	and response information into local emergency operations plans;
114.21 	(6) monitoring the public safety-related training and planning requirements of 
114.22 	section 115E.03; and
114.23 	(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.

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

114.25 	Sec. 7. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
114.26 		Subdivision 1.Position Positions established; duties. (a) The commissioner of 
114.27 	transportation shall establish a position of three state rail safety inspector positions in 
114.28 	the Office of Freight and Commercial Vehicle Operations of the Minnesota Department 
114.29 	of Transportation. On or after July 1, 2015, the commissioner may establish a fourth 
114.30 	state rail safety inspector position following consultation with railroad companies.
114.31 	 The commissioner shall apply to and enter into agreements with the Federal Railroad 
114.32 	Administration (FRA) of the United States Department of Transportation to participate 
114.33 	in the federal State Rail Safety Partnership Participation Program for training and 
115.1 	certification of an inspector under authority of United States Code, title 49, sections 20103, 
115.2 	20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
115.3 	The (b) A state rail safety inspector shall inspect mainline track, secondary track, and 
115.4 	yard and industry track; inspect railroad right-of-way, including adjacent or intersecting 
115.5 	drainage, culverts, bridges, overhead structures, and traffic and other public crossings; 
115.6 	inspect yards and physical plants; review and enforce safety requirements; review 
115.7 	maintenance and repair records; and review railroad security measures.
115.8 	(c) A state rail safety inspector may perform, but is not limited to, the duties 
115.9 	described in the federal State Rail Safety Participation Program. An inspector may train, 
115.10 	be certified, and participate in any of the federal State Rail Safety Participation Program 
115.11 	disciplines, including: track, signal and train control, motive power and equipment, 
115.12 	operating practices compliance, hazardous materials, and highway-rail grade crossings.
115.13 	(d) To the extent delegated by the Federal Railroad Administration and authorized
115.14 	 by the commissioner, the an inspector may issue citations for violations of this chapter, or 
115.15 	to ensure railroad employee and public safety and welfare.

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

115.17 	Sec. 8. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
115.18 		Subd. 2.Railroad company assessment; account; appropriation. (a) As provided 
115.19 	in this subdivision, the commissioner shall annually assess railroad companies that are 
115.20 	(1) defined as common carriers under section 218.011,; (2) classified by federal law or 
115.21 	regulation as Class I Railroads,or Class I Rail Carriers, Class II Railroads, or Class II 
115.22 	Carriers; and (3) operating in this state,.
115.23 	(b) The assessment must be by a division of state rail safety inspector program costs 
115.24 	in equal proportion between carriers based on route miles operated in Minnesota, assessed 
115.25 	in equal amounts for 365 days of the calendar year. The commissioner shall assess all 
115.26 	start-up or re-establishment costs, and all related costs of initiating the state rail safety 
115.27 	inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties 
115.28 	must begin and be assessed on January 1, 2009.
115.29 	(c) The assessments must be deposited in a special account in the special revenue 
115.30 	fund, to be known as the state rail safety inspection account. Money in the account is 
115.31 	appropriated to the commissioner and may be expended to cover the costs incurred for the 
115.32 	establishment and ongoing responsibilities of the state rail safety inspector program.

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

116.1 	Sec. 9. [299A.55] RAILROAD AND PIPELINE SAFETY; OIL AND OTHER 
116.2 	HAZARDOUS MATERIALS.
116.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
116.4 	have the meanings given them.
116.5 	(b) "Applicable rail carrier" means a railroad company that is subject to an 
116.6 	assessment under section 219.015, subdivision 2.
116.7 	(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
116.8 	(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
116.9 	(e) "Pipeline company" means any individual, partnership, association, or public 
116.10 	or private corporation who owns and operates pipeline facilities and is required to show 
116.11 	specific preparedness under section 115E.03, subdivision 2.
116.12 		Subd. 2.Railroad and pipeline safety account. (a) A railroad and pipeline safety 
116.13 	account is created in the special revenue fund. The account consists of funds collected 
116.14 	under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the 
116.15 	account.
116.16 	(b) $104,000 is annually appropriated from the railroad and pipeline safety account 
116.17 	to the commissioner of the Pollution Control Agency for environmental protection 
116.18 	activities related to railroad discharge preparedness under chapter 115E.
116.19 	(c) Following the appropriation in paragraph (b), the remaining money in the 
116.20 	account is annually appropriated to the commissioner of public safety for the purposes 
116.21 	specified in subdivision 3.
116.22 		Subd. 3.Allocation of funds. (a) Subject to funding appropriated for this 
116.23 	subdivision, the commissioner shall provide funds for training and response preparedness 
116.24 	related to (1) derailments, discharge incidents, or spills involving trains carrying oil or 
116.25 	other hazardous substances, and (2) pipeline discharge incidents or spills involving oil 
116.26 	or other hazardous substances.
116.27 	(b) The commissioner shall allocate available funds as follows:
116.28 	(1) $100,000 annually for emergency response teams; and
116.29 	(2) the remaining amount to the Board of Firefighter Training and Education under 
116.30 	section 299N.02 and the Division of Homeland Security and Emergency Management.
116.31 	(c) Prior to making allocations under paragraph (b), the commissioner shall consult 
116.32 	with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
116.33 	(d) The commissioner and the entities identified in paragraph (b), clause (2), shall 
116.34 	prioritize uses of funds based on:
116.35 	(1) firefighter training needs;
116.36 	(2) community risk from discharge incidents or spills;
117.1 	(3) geographic balance; and
117.2 	(4) recommendations of the Fire Service Advisory Committee.
117.3 	(e) The following are permissible uses of funds provided under this subdivision:
117.4 	(1) training costs, which may include, but are not limited to, training curriculum, 
117.5 	trainers, trainee overtime salary, other personnel overtime salary, and tuition;
117.6 	(2) costs of gear and equipment related to hazardous materials readiness, response, 
117.7 	and management, which may include, but are not limited to, original purchase, 
117.8 	maintenance, and replacement;
117.9 	(3) supplies related to the uses under clauses (1) and (2); and
117.10 	(4) emergency preparedness planning and coordination.
117.11 	(f) Notwithstanding paragraph (b), clause (2), from funds in the railroad and pipeline 
117.12 	safety account provided for the purposes under this subdivision, the commissioner may 
117.13 	retain a balance in the account for budgeting in subsequent fiscal years.
117.14 		Subd. 4.Assessments. (a) The commissioner of public safety shall annually assess 
117.15 	$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph 
117.16 	(b). The commissioner shall deposit funds collected under this subdivision in the railroad 
117.17 	and pipeline safety account under subdivision 2.
117.18 	(b) The assessment for each railroad is 50 percent of the total annual assessment 
117.19 	amount, divided in equal proportion between applicable rail carriers based on route miles 
117.20 	operated in Minnesota. The assessment for each pipeline company is 50 percent of the 
117.21 	total annual assessment amount, divided in equal proportion between companies based 
117.22 	on the yearly aggregate gallons of oil and hazardous substance transported by pipeline 
117.23 	in Minnesota.
117.24 	(c) The assessments under this subdivision expire July 1, 2017.

117.25 	Sec. 10. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND 
117.26 	RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS 
117.27 	TRANSPORTATION.
 117.28 	(a) The commissioner of transportation shall conduct a study on highway-rail grade 
117.29 	crossing improvement for oil and other hazardous materials transported by rail, and on 
117.30 	rail safety. At a minimum, the study must:
117.31 	(1) provide information that assists in risk management associated with 
117.32 	transportation of oil and other hazardous materials by rail;
117.33 	(2) develop criteria to prioritize needs and improvements at highway-rail grade 
117.34 	crossings;
118.1 	(3) consider alternatives for safety improvements, including but not limited to active 
118.2 	warning devices such as gates and signals, closings, and grade separation;
118.3 	(4) provide findings and recommendations that serve to direct accelerated 
118.4 	investments in highway-rail grade crossing safety improvements; and
118.5 	(5) analyze state inspection activities and staffing for track and hazardous materials 
118.6 	under Minnesota Statutes, section 219.015.
118.7 	(b) The commissioner shall submit an interim update on the study by August 31, 
118.8 	2014, and a final report by October 31, 2014, to the chairs and ranking minority members 
118.9 	of the legislative committees with jurisdiction over transportation policy and finance.

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

118.11 	Sec. 11. REPORTS ON INCIDENT PREPAREDNESS FOR OIL 
118.12 	TRANSPORTATION.
 118.13 		Subdivision 1.Report on response preparedness. By January 15, 2015, the 
118.14 	commissioner of public safety shall submit a report on emergency response preparedness 
118.15 	in the public and private sectors for incidents involving transportation of oil to the chairs 
118.16 	and ranking minority members of the legislative committees with jurisdiction over 
118.17 	transportation and public safety policy and finance. At a minimum, the report must:
118.18 	(1) summarize the preparedness and emergency response framework in the state;
118.19 	(2) provide an assessment of costs and needs of fire departments and other 
118.20 	emergency first responders for training and equipment to respond to discharge or spill 
118.21 	incidents involving transportation of oil;
118.22 	(3) develop a comprehensive public and private response capacity inventory that, 
118.23 	to the extent feasible, includes statewide identification of major emergency response 
118.24 	equipment, equipment staging locations, mutual aid agreements, and capacities across 
118.25 	industries involved in transportation and storage of oil;
118.26 	(4) provide information and analysis that forms the basis for allocation of funds 
118.27 	under Minnesota Statutes, section 299A.55;
118.28 	(5) develop benchmarks or assessment criteria for the evaluation under subdivision 2;
118.29 	(6) assist in long-range oil transportation incident preparedness planning; and
118.30 	(7) make recommendations for any legislative changes.
118.31 		Subd. 2.Evaluation of response preparedness and funding. By January 15, 
118.32 	2017, the commissioner of public safety shall submit an evaluation of safety preparedness 
118.33 	and funding related to incidents involving transportation of oil to the chairs and ranking 
118.34 	minority members of the legislative committees with jurisdiction over transportation and 
118.35 	public safety policy and finance. At a minimum, the evaluation must:
119.1 	(1) provide an update to the report under subdivision 1 that identifies notable 
119.2 	changes and provides updated information as appropriate;
119.3 	(2) evaluate the effectiveness of training and response preparedness activities under 
119.4 	Minnesota Statutes, section 299A.55, using the criteria established under subdivision 
119.5 	1, clause (5);
119.6 	(3) identify current sources of funds, funding levels, and any unfunded needs for 
119.7 	preparedness activities;
119.8 	(4) analyze equity in the distribution of funding sources for preparedness activities, 
119.9 	which must include but is not limited to (i) examination of the public-private partnership 
119.10 	financing model, and (ii) review of balance across industries involved in storage and 
119.11 	distribution of oil; and
119.12 	(5) make recommendations for any programmatic or legislative changes.

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

119.14 	ARTICLE 11
119.15 	TRANSPORTATION FINANCE PROVISIONS

119.16 	Section 1. Minnesota Statutes 2012, section 161.14, is amended by adding a 
119.17 	subdivision to read:
119.18 		Subd. 78.Trooper Glen Skalman Memorial Highway. That segment of signed 
119.19 	U.S. Highway 61 from the intersection with signed U.S. Highway 8 in Forest Lake to 
119.20 	the intersection with 260th Street in Wyoming is designated as "Trooper Glen Skalman 
119.21 	Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable 
119.22 	design to mark this highway and erect appropriate signs in the vicinity of the location 
119.23 	where Trooper Skalman died.

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

119.25 	Sec. 2. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
119.26 		Subd. 2.Use of funds. (a) Income derived from the investment of principal in the 
119.27 	account may be used by the commissioner of transportation for operations and routine 
119.28 	maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive 
119.29 	repairs. No money from this account may be used for any purposes except those described 
119.30 	in this section, and no money from this account may be transferred to any other account 
119.31 	in the state treasury without specific legislative authorization. Any money transferred 
119.32 	from the trunk highway fund may only be used for trunk highway purposes. For the 
119.33 	purposes of this section:
120.1 	(1) "Income" is the amount of interest on debt securities and dividends on equity 
120.2 	securities. Any gains or losses from the sale of securities must be added to the principal 
120.3 	of the account.
120.4 	(2) "Routine maintenance" means activities that are predictable and repetitive, but 
120.5 	not activities that would constitute major repairs or rehabilitation.
120.6 	(b) Investment management fees incurred by the State Board of Investment are 
120.7 	eligible expenses for reimbursement from the account.
120.8 	(c) The commissioner of transportation has authority to approve or deny expenditures 
120.9 	of funds in the account.

120.10 	Sec. 3. [168.1299] MINNESOTA GOLF PLATES.
120.11 		Subdivision 1.Issuance. Notwithstanding section 168.1293, the commissioner shall 
120.12 	issue special Minnesota golf plates or a single motorcycle plate to an applicant who:
120.13 	(1) is a registered owner of a passenger automobile, one-ton pickup truck, 
120.14 	motorcycle, or recreational vehicle;
120.15 	(2) pays a fee of $10 and any other fees required by this chapter;
120.16 	(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota 
120.17 	Section PGA Foundation account; and
120.18 	(4) complies with this chapter and rules governing registration of motor vehicles 
120.19 	and licensing of drivers.
120.20 		Subd. 2.Design. After consultation with the Minnesota Section PGA and the 
120.21 	Minnesota Golf Association, the commissioner shall design the special plate.
120.22 		Subd. 3.Plates transfer. On payment of a fee of $5, plates issued under this section 
120.23 	may be transferred to another passenger automobile, one-ton pickup truck, motorcycle, 
120.24 	or other recreational vehicle registered to the individual to whom the special plates were 
120.25 	issued.
120.26 		Subd. 4.Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are 
120.27 	credited to the vehicle services operating account in the special revenue fund.
120.28 		Subd. 5.Contributions. Contributions collected under subdivision 1, clause (3), 
120.29 	are credited first to the commissioner of public safety for the cost of administering the 
120.30 	Minnesota Section PGA Foundation account, which is established in the special revenue 
120.31 	fund. After the commissioner's administration costs are paid each year, remaining 
120.32 	contributions are credited to the Minnesota Section PGA Foundation account. Money in 
120.33 	the account is appropriated to the commissioner of public safety for distribution to the 
120.34 	Minnesota Section PGA Foundation, to be used to enhance and promote the game of 
120.35 	golf throughout Minnesota.

121.1 	EFFECTIVE DATE. Subdivisions 1 to 4 are effective January 1, 2015, for special 
121.2 	Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.

121.3 	Sec. 4. Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision 
121.4 	to read:
121.5 		Subd. 95.Work zone. "Work zone" means a segment of street or highway for which:
121.6 	(1) a road authority or its agent is constructing, reconstructing, or maintaining the 
121.7 	physical structure of the roadway, which may include, but is not limited to, shoulders, 
121.8 	features adjacent to the roadway, and utilities and highway appurtenances, whether 
121.9 	underground or overhead; and
121.10 	(2) any of the following applies:
121.11 	(i) official traffic-control devices that indicate the segment of street or highway under 
121.12 	construction, reconstruction, or maintenance, are erected;
121.13 	(ii) one or more lanes of traffic are closed;
121.14 	(iii) a flagger under section 169.06, subdivision 4a, is present;
121.15 	(iv) a construction zone speed limit under section 169.14, subdivision 4, is 
121.16 	established; or
121.17 	(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.

121.18 	EFFECTIVE DATE. This section is effective August 1, 2014.

121.19 	Sec. 5. Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:
121.20 		Subd. 4.Obedience to traffic-control signal or flagger authorized persons; 
121.21 	presumptions. (a) The driver of any vehicle shall obey the instructions of any official 
121.22 	traffic-control device applicable thereto placed in accordance with the provisions of this 
121.23 	chapter, unless otherwise directed by a police officer or by a flagger authorized under this 
121.24 	subdivision, subject to the exceptions granted the driver of an authorized emergency 
121.25 	vehicle in this chapter.
121.26 	(b) No provision of this chapter for which official traffic-control devices are required 
121.27 	shall be enforced against an alleged violator if at the time and place of the alleged 
121.28 	violation an official device is not in proper position and sufficiently legible to be seen by 
121.29 	an ordinarily observant person. Whenever a particular section does not state that official 
121.30 	traffic-control devices are required, such section shall be effective even though no devices 
121.31 	are erected or in place.
121.32 	(c) Whenever official traffic-control devices are placed in position approximately 
121.33 	conforming to the requirements of this chapter, such devices shall be presumed to have 
122.1 	been so placed by the official act or direction of lawful authority, unless the contrary 
122.2 	shall be established by competent evidence.
122.3 	(d) Any official traffic-control device placed pursuant to the provisions of this 
122.4 	chapter and purporting to conform to the lawful requirements pertaining to such devices 
122.5 	shall be presumed to comply with the requirements of this chapter, unless the contrary 
122.6 	shall be established by competent evidence.
122.7 	(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place 
122.8 	until it is safe for the vehicles to proceed. A person operating a motor vehicle that has 
122.9 	been stopped by a flagger in a designated work zone may proceed after stopping only on 
122.10 	instruction by the flagger.
122.11 	(f) An overdimensional load escort driver with a certificate issued under section 
122.12 	299D.085, while acting as a flagger escorting a legal overdimensional load, may stop 
122.13 	vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person 
122.14 	operating a motor vehicle that has been stopped by an escort driver acting as a flagger may 
122.15 	proceed only on instruction by the flagger or a police officer.
122.16 	(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to 
122.17 	proceed, if the person: (1) holds a motorcycle road guard certificate issued under section 
122.18 	171.60; (2) meets the safety and equipment standards for operating under the certificate; 
122.19 	(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory 
122.20 	or home rule charter city through which the motorcycle group is proceeding; and (5) 
122.21 	has obtained consent from the chief of police, or the chief's designee, of any city of the 
122.22 	first class through which the group is proceeding. A flagger operating as provided under 
122.23 	this paragraph may direct operators of motorcycles within a motorcycle group ride or 
122.24 	other vehicle traffic, notwithstanding any contrary indication of a traffic-control device, 
122.25 	including stop signs or traffic-control signals. A person operating a vehicle that has been 
122.26 	stopped by a flagger under this paragraph may proceed only on instruction by the flagger 
122.27 	or a police officer.

122.28 	EFFECTIVE DATE. This section is effective August 1, 2014.

122.29 	Sec. 6. Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision 
122.30 	to read:
122.31 		Subd. 4a.Obedience to work zone flagger; violation, penalty. (a) A flagger in a 
122.32 	work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to 
122.33 	proceed. A person operating a motor vehicle that has been stopped by a flagger in a work 
122.34 	zone may proceed after stopping only on instruction by the flagger or a police officer.
123.1 	(b) A person convicted of operating a motor vehicle in violation of a speed limit 
123.2 	in a work zone, or any other provision of this section while in a work zone, shall be 
123.3 	required to pay a fine of $300. This fine is in addition to the surcharge under section 
123.4 	357.021, subdivision 6.
123.5 	(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the 
123.6 	vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty 
123.7 	misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may 
123.8 	not be fined under this paragraph if (1) another person is convicted for that violation, or (2) 
123.9 	the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a 
123.10 	lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.
123.11 	(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle 
123.12 	operator for violating paragraph (a).
123.13 	(e) A violation under paragraph (c) does not constitute grounds for revocation or 
123.14 	suspension of a driver's license.

123.15 	EFFECTIVE DATE. This section is effective August 1, 2014, and applies to 
123.16 	violations committed on or after that date.

123.17 	Sec. 7. Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:
123.18 		Subd. 5d.Speed zoning limit in work zone; surcharge when workers present.
 123.19 	(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a 
123.20 	road having an established speed limit of 50 miles per hour or greater is adjusted to 45 
123.21 	miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is 
123.22 	closed in either direction, and (2) workers are present. A speed in excess of the adjusted 
123.23 	speed limit is unlawful.
123.24 	(b) Paragraph (a) does not apply to a segment of road in which:
123.25 	(1) positive barriers are placed between workers and the traveled portion of the 
123.26 	highway;
123.27 	(2) the work zone is in place for less than 24 hours;
123.28 	(3) a different speed limit for the work zone is determined by the road authority 
123.29 	following an engineering and traffic investigation and based on accepted engineering 
123.30 	practice; or
123.31 	(4) a different speed limit for the work zone is established by the road authority 
123.32 	under paragraph (c).
123.33 	(c) The commissioner, on trunk highways and temporary trunk highways, and 
123.34 	local authorities, on streets and highways under their jurisdiction, may authorize the use 
123.35 	of reduced maximum speed limits in highway work zones. The commissioner or local 
124.1 	authority is not required to conductwhen workers are present, without an engineering and 
124.2 	traffic investigation before authorizing a reduced speed limit in a highway work zone
124.3 	 required. The work zone speed limit must not reduce the speed limit on the affected 
124.4 	street or highway by more than:
124.5 	(b) The minimum highway work zone speed limit is 20 miles per hour. The work 
124.6 	zone speed limit must not reduce the established speed limit on the affected street or 
124.7 	highway by more than 15 miles per hour, except that the highway work zone speed limit 
124.8 	must not exceed 40 miles per hour. The commissioner or local authority shall post the limits 
124.9 	of the work zone. Highway work zone speed limits are effective on erection of appropriate 
124.10 	regulatory speed limit signs. The signs must be removed or covered when they are not 
124.11 	required. A speed greater than the posted highway work zone speed limit is unlawful.
124.12 	(c) Notwithstanding paragraph (b), on divided highways the commissioner or local 
124.13 	authority may establish a highway work zone speed limit that does not exceed 55 miles 
124.14 	per hour.
124.15 	(d) Notwithstanding paragraph (b), on two-lane highways having one lane for 
124.16 	each direction of travel with a posted speed limit of 60 miles per hour or greater, the 
124.17 	commissioner or local authority may establish a highway work zone speed limit that 
124.18 	does not exceed 40 miles per hour.
124.19 	(e) For purposes of this subdivision, "highway work zone" means a segment of 
124.20 	highway or street where a road authority or its agent is constructing, reconstructing, or 
124.21 	maintaining the physical structure of the roadway, its shoulders, or features adjacent to 
124.22 	the roadway, including underground and overhead utilities and highway appurtenances, 
124.23 	when workers are present.
124.24 	(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person 
124.25 	who violates a speed limit established under this subdivision, or who violates any other 
124.26 	provision of this section while in a highway work zone, is assessed an additional surcharge 
124.27 	equal to the amount of the fine imposed for the speed violation, but not less than $25.
124.28 	(1) 20 miles per hour on a street or highway having an established speed limit of 
124.29 	55 miles per hour or greater; and
124.30 	(2) 15 miles per hour on a street or highway having an established speed limit of 
124.31 	50 miles per hour or less.
124.32 	(d) A work zone speed limit under paragraph (c) is effective on erection of 
124.33 	appropriate regulatory speed limit signs. The signs must be removed or covered when 
124.34 	they are not required. A speed in excess of the posted work zone speed limit is unlawful.
124.35 	(e) For any speed limit under this subdivision, a road authority shall erect signs 
124.36 	identifying the speed limit and indicating the beginning and end of the speed limit zone.

125.1 	EFFECTIVE DATE. This section is effective August 1, 2014, and applies to 
125.2 	violations committed on or after that date.

125.3 	Sec. 8. Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision 
125.4 	to read:
125.5 		Subd. 6a.Work zone speed limit violations. A person convicted of operating a 
125.6 	motor vehicle in violation of a speed limit in a work zone, or any other provision of 
125.7 	this section while in a work zone, shall be required to pay a fine of $300. This fine is in 
125.8 	addition to the surcharge under section 357.021, subdivision 6. 

125.9 	EFFECTIVE DATE. This section is effective August 1, 2014, and applies to 
125.10 	violations committed on or after that date.

125.11 	Sec. 9. Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:
125.12 		Subdivision 1.Entrance and exit; crossover; use regulations; signs; rules. (a) No 
125.13 	person shall drive a vehicle onto or from any controlled-access highway except at such 
125.14 	entrances and exits as are established by public authority.
125.15 	(b) When special crossovers between the main roadways of a controlled-access 
125.16 	highway are provided for emergency vehicles or maintenance equipment and such 
125.17 	crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except 
125.18 	an emergency vehicle, maintenance equipment, or construction equipment including 
125.19 	contractor's and state-owned equipment when operating within a marked construction 
125.20 	zone, or a vehicle operated by a commercial vehicle inspector of the Department of Public 
125.21 	Safety, to use such crossover. Vehicles owned and operated by elderly and needy persons 
125.22 	under contract with the commissioner of transportation pursuant to section 160.282 for 
125.23 	maintenance services on highway rest stop and tourist centers outside the seven-county 
125.24 	metropolitan area as defined in section 473.121, may also use these crossovers while those 
125.25 	persons are proceeding to or from work in the rest area or tourist center if authorized by the 
125.26 	commissioner, and the vehicle carries on its roof a distinctive flag designed and issued by 
125.27 	the commissioner. For the purposes of this clause "emergency vehicle" includes a tow truck 
125.28 	or towing vehicle if it is on the way to the location of an accident or a disabled vehicle.
125.29 	(c) The commissioner of transportation may by order, and any public authority may 
125.30 	by ordinance, with respect to any controlled-access highway under their jurisdictions 
125.31 	prohibit or regulate the use of any such highway by pedestrians, bicycles, or other 
125.32 	nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is 
125.33 	found to be incompatible with the normal and safe flow of traffic.
126.1 	(d) The commissioner of transportation or the public authority adopting any such 
126.2 	prohibitory rules shall erect and maintain official signs on the controlled-access highway 
126.3 	on which such rules are applicable and when so erected no person shall disobey the 
126.4 	restrictions stated on such signs.

126.5 	Sec. 10. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision 
126.6 	to read:
126.7 		Subd. 7.Expiration date. Upon request of the permit applicant, the expiration 
126.8 	date for a permit issued under this section must be the same as the expiration date of the 
126.9 	permitted vehicle's registration.

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

126.12 	Sec. 11. Minnesota Statutes 2012, section 169.8261, is amended by adding a 
126.13 	subdivision to read:
126.14 		Subd. 3.Expiration date. Upon request of the permit applicant, the expiration 
126.15 	date for a permit issued under this section must be the same as the expiration date of the 
126.16 	permitted vehicle's registration.

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

126.19 	Sec. 12. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
126.20 		Subd. 5.Fees; proceeds deposited; appropriation. The commissioner, with 
126.21 	respect to highways under the commissioner's jurisdiction, may charge a fee for each 
126.22 	permit issued. The fee for an annual permit that expires by law on the date of the 
126.23 	vehicle registration expiration must be based on the proportion of the year that remains 
126.24 	until the expiration date. Unless otherwise specified, all fees for permits issued by the 
126.25 	commissioner of transportation must be deposited in the state treasury and credited to 
126.26 	the trunk highway fund. Except for those annual permits for which the permit fees are 
126.27 	specified elsewhere in this chapter, the fees are:
126.28 	(a) $15 for each single trip permit.
126.29 	(b) $36 for each job permit. A job permit may be issued for like loads carried on 
126.30 	a specific route for a period not to exceed two months. "Like loads" means loads of the 
126.31 	same product, weight, and dimension.
127.1 	(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive 
127.2 	months. Annual permits may be issued for:
127.3 	(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety 
127.4 	or well-being of the public;
127.5 	(2) motor vehicles that travel on interstate highways and carry loads authorized 
127.6 	under subdivision 1a;
127.7 	(3) motor vehicles operating with gross weights authorized under section 169.826, 
127.8 	subdivision 1a;
127.9 	(4) special pulpwood vehicles described in section 169.863;
127.10 	(5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
127.11 	(6) noncommercial transportation of a boat by the owner or user of the boat;
127.12 	(7) motor vehicles carrying bales of agricultural products authorized under section 
127.13 	169.862; and
127.14 	(8) special milk-hauling vehicles authorized under section 169.867.
127.15 	(d) $120 for an oversize annual permit to be issued for a period not to exceed 12 
127.16 	consecutive months. Annual permits may be issued for:
127.17 	(1) mobile cranes;
127.18 	(2) construction equipment, machinery, and supplies;
127.19 	(3) manufactured homes and manufactured storage buildings;
127.20 	(4) implements of husbandry;
127.21 	(5) double-deck buses;
127.22 	(6) commercial boat hauling and transporting waterfront structures, including, but 
127.23 	not limited to, portable boat docks and boat lifts;
127.24 	(7) three-vehicle combinations consisting of two empty, newly manufactured trailers 
127.25 	for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however, 
127.26 	the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer 
127.27 	only while operating on twin-trailer routes designated under section 169.81, subdivision 3, 
127.28 	paragraph (c); and
127.29 	(8) vehicles operating on that portion of marked Trunk Highway 36 described in 
127.30 	section 169.81, subdivision 3, paragraph (e).
127.31 	(e) For vehicles that have axle weights exceeding the weight limitations of sections 
127.32 	169.823 to 169.829, an additional cost added to the fees listed above. However, this 
127.33 	paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph 
127.34 	(b), but only when the vehicle exceeds its gross weight allowance set forth in that 
127.35 	paragraph, and then the additional cost is for all weight, including the allowance weight, 
127.36 	in excess of the permitted maximum axle weight. The additional cost is equal to the 
128.1 	product of the distance traveled times the sum of the overweight axle group cost factors 
128.2 	shown in the following chart:

128.3		Overweight Axle Group Cost Factors
		
128.4	Weight (pounds)
		Cost Per Mile For Each Group Of:
	
128.5
128.6
128.7
128.8
128.9	exceeding weight 
limitations on axles
		Two 
consecutive 
axles spaced 
within 8 feet 
or less
		Three 
consecutive 
axles spaced 
within 9 feet 
or less
		Four consecutive 
axles spaced within 
14 feet or less
	
128.10	0-2,000
		.12
		.05
		.04
	
128.11	2,001-4,000
		.14
		.06
		.05
	
128.12	4,001-6,000
		.18
		.07
		.06
	
128.13	6,001-8,000
		.21
		.09
		.07
	
128.14	8,001-10,000
		.26
		.10
		.08
	
128.15	10,001-12,000
		.30
		.12
		.09
	
128.16
128.17	12,001-14,000
		Not 
permitted
		.14
		.11
	
128.18
128.19	14,001-16,000
		Not 
permitted
		.17
		.12
	
128.20
128.21	16,001-18,000
		Not 
permitted
		.19
		.15
	
128.22
128.23	18,001-20,000
		Not 
permitted
		Not 
permitted
		.16
	
128.24
128.25	20,001-22,000
		Not 
permitted
		Not 
permitted
		.20
	
128.26 	The amounts added are rounded to the nearest cent for each axle or axle group. The 
128.27 	additional cost does not apply to paragraph (c), clauses (1) and (3).
128.28 	For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile 
128.29 	fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed 
128.30 	in addition to the normal permit fee. Miles must be calculated based on the distance 
128.31 	already traveled in the state plus the distance from the point of detection to a transportation 
128.32 	loading site or unloading site within the state or to the point of exit from the state.
128.33 	(f) As an alternative to paragraph (e), an annual permit may be issued for overweight, 
128.34 	or oversize and overweight, mobile cranes; construction equipment, machinery, and 
128.35 	supplies; implements of husbandry; and commercial boat hauling. The fees for the permit 
128.36 	are as follows:

128.37	Gross Weight (pounds) of Vehicle
	Annual Permit Fee 
	
128.38	90,000
	or less 
	$200
	
128.39	90,001
	- 100,000
	$300
	
128.40	100,001
	- 110,000
	$400
	
128.41	110,001
	- 120,000
	$500
	
128.42	120,001
	- 130,000
	$600
	
128.43	130,001
	- 140,000
	$700
	
129.1	140,001
	- 145,000
	$800
	
129.2	145,001
	- 155,000
	$900
	
129.3 	If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined 
129.4 	under paragraph (e).
129.5 	(g) For vehicles which exceed the width limitations set forth in section 169.80 by 
129.6 	more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) 
129.7 	when the permit is issued while seasonal load restrictions pursuant to section 169.87 are 
129.8 	in effect.
129.9 	(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for 
129.10 	refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on 
129.11 	a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828, 
129.12 	subdivision 2, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds 
129.13 	on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
129.14 	(i) $300 for a motor vehicle described in section 169.8261. The fee under this 
129.15 	paragraph must be deposited as follows:
129.16 	(1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for 
129.17 	costs related to administering the permit program and inspecting and posting bridges; and
129.18 	(2) all remaining money in each fiscal year must be deposited in the bridge 
129.19 	inspection and signing account as provided under subdivision 5b.
129.20 	(j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating 
129.21 	under authority of section 169.824, subdivision 2, paragraph (a), clause (2).

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

129.24 	Sec. 13. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision 
129.25 	to read:
129.26 		Subd. 3.Expiration date. Upon request of the permit applicant, the expiration 
129.27 	date for a permit issued under this section must be the same as the expiration date of the 
129.28 	permitted vehicle's registration.

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

129.31 	Sec. 14. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
130.1 		Subdivision 1.Six-axle vehicles. (a) A road authority may issue an annual permit 
130.2 	authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw 
130.3 	or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
130.4 	(1) 90,000 pounds; and
130.5 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
130.6 	subdivision 1.
130.7 	(b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or 
130.8 	combination of vehicles operated under this subdivision and transporting only sealed 
130.9 	intermodal containers may be operated on an interstate highway if allowed by the United 
130.10 	States Department of Transportation.
130.11 	(c) The fee for a permit issued under this subdivision is $300, or a proportional 
130.12 	amount as provided in section 169.86, subdivision 5.

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

130.15 	Sec. 15. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
130.16 		Subd. 2.Seven-axle vehicles. (a) A road authority may issue an annual permit 
130.17 	authorizing a vehicle or combination of vehicles with a total of seven or more axles to 
130.18 	haul raw or unprocessed agricultural products and be operated with a gross vehicle weight 
130.19 	of up to:
130.20 	(1) 97,000 pounds; and
130.21 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
130.22 	subdivision 1.
130.23 	(b) Drivers of vehicles operating under this subdivision must comply with driver 
130.24 	qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code 
130.25 	of Federal Regulations, title 49, parts 40 and 382.
130.26 	(c) The fee for a permit issued under this subdivision is $500, or a proportional 
130.27 	amount as provided in section 169.86, subdivision 5.

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

130.30 	Sec. 16. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision 
130.31 	to read:
131.1 		Subd. 5.Expiration date. Upon request of the permit applicant, the expiration 
131.2 	date for a permit issued under this section must be the same as the expiration date of the 
131.3 	permitted vehicle's registration.

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

131.6 	Sec. 17. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
131.7 		Subd. 3.Permit fee; appropriation. Vehicle permits issued under subdivision 1 
131.8 	must be annual permits. The fee is $850 for each vehicle, or a proportional amount as 
131.9 	provided in section 169.86, subdivision 5, and must be deposited in the trunk highway 
131.10 	fund. An amount sufficient to administer the permit program is appropriated from the 
131.11 	trunk highway fund to the commissioner for the costs of administering the permit program.

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

131.14 	Sec. 18. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision 
131.15 	to read:
131.16 		Subd. 4.Expiration date. Upon request of the permit applicant, the expiration 
131.17 	date for a permit issued under this section must be the same as the expiration date of the 
131.18 	permitted vehicle's registration.

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

131.21 	Sec. 19. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:
131.22 		Subd. 3.Motorized bicycle. (a) A motorized bicycle may not be operated on any 
131.23 	public roadway by any person who does not possess a valid driver's license, unless the 
131.24 	person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 
131.25 	permit from the commissioner of public safety. The operator's permit may be issued to 
131.26 	any person who has attained the age of 15 years and who has passed the examination 
131.27 	prescribed by the commissioner. The instruction permit may be issued to any person who 
131.28 	has attained the age of 15 years and who has successfully completed an approved safety 
131.29 	course and passed the written portion of the examination prescribed by the commissioner.
131.30 	(b) This course must consist of, but is not limited to, a basic understanding of:
131.31 	(1) motorized bicycles and their limitations;
131.32 	(2) motorized bicycle laws and rules;
132.1 	(3) safe operating practices and basic operating techniques;
132.2 	(4) helmets and protective clothing;
132.3 	(5) motorized bicycle traffic strategies; and
132.4 	(6) effects of alcohol and drugs on motorized bicycle operators.
132.5 	(c) The commissioner may adopt rules prescribing the content of the safety course, 
132.6 	examination, and the information to be contained on the permits. A person operating a 
132.7 	motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 
132.8 	by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel 
132.9 	instruction permit.
132.10 	(d) The fees for motorized bicycle operator's permits are as follows:

132.11	(1)
	Examination and operator's permit, valid for one year
	$
	6.75
	
132.12	(2)
	Duplicate
	$
	3.75
	
132.13
132.14	(3) (1)
	Renewal Motorized bicycle operator's permit before age 21 and 
valid until age 21
	$
	9.75
	
132.15	(4) (2)
	Renewal permit age 21 or older and valid for four years
	$
	15.75
	
132.16	(5) (3)
	Duplicate of any renewal permit
	$
	5.25
	
132.17	(6) (4)
	Written examination and instruction permit, valid for 30 days
	$
	6.75

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

132.21	Classified Driver's License
		D-$17.25
	C-$21.25
	B-$28.25
	A-$36.25
	
132.22	Classified Under-21 D.L.
		D-$17.25
	C-$21.25
	B-$28.25
	A-$16.25
	
132.23	Enhanced Driver's License
		D-$32.25
	C-$36.25
	B-$43.25
	A-$51.25
	
132.24	Instruction Permit
					$5.25
	
132.25
132.26	Enhanced Instruction 
Permit
					$20.25
	
132.27
132.28	Commercial Learner's 
Permit
					$2.50
	
132.29	Provisional License
					$8.25
	
132.30
132.31	Enhanced Provisional 
License
					$23.25
	
132.32
132.33
132.34	Duplicate License or 
duplicate identification 
card
					$6.75
	
132.35
132.36
132.37
132.38	Enhanced Duplicate 
License or enhanced 
duplicate identification 
card
					$21.75
	
133.1
133.2
133.3
133.4
133.5
133.6
133.7	Minnesota identification 
card or Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 171.07, 
subdivisions 3 and 3a
					$11.25
	
133.8
133.9	Enhanced Minnesota 
identification card
					$26.25
	
133.10 	In addition to each fee required in this paragraph, the commissioner shall collect a 
133.11 	surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 
133.12 	2016. Surcharges collected under this paragraph must be credited to the driver and vehicle 
133.13 	services technology account in the special revenue fund under section 299A.705.
133.14 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
133.15 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
133.16 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
133.17 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
133.18 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
133.19 	has the meaning given it in section 171.04, subdivision 1.
133.20 	(c) In addition to the driver's license fee required under paragraph (a), the 
133.21 	commissioner shall collect an additional $4 processing fee from each new applicant 
133.22 	or individual renewing a license with a school bus endorsement to cover the costs for 
133.23 	processing an applicant's initial and biennial physical examination certificate. The 
133.24 	department shall not charge these applicants any other fee to receive or renew the 
133.25 	endorsement.
133.26 	(d) In addition to the fee required under paragraph (a), a driver's license agent may 
133.27 	charge and retain a filing fee as provided under section 171.061, subdivision 4.
133.28 	(e) In addition to the fee required under paragraph (a), the commissioner shall 
133.29 	charge a filing fee at the same amount as a driver's license agent under section 171.061, 
133.30 	subdivision 4. Revenue collected under this paragraph must be deposited in the driver 
133.31 	services operating account.
133.32 	(f) An application for a Minnesota identification card, instruction permit, provisional 
133.33 	license, or driver's license, including an application for renewal, must contain a provision 
133.34 	that allows the applicant to add to the fee under paragraph (a), a $2 donation for the 
133.35 	purposes of public information and education on anatomical gifts under section 171.075.

133.36 	Sec. 21. Minnesota Statutes 2012, section 171.13, subdivision 1, is amended to read:
134.1 		Subdivision 1.Examination subjects and locations; provisions for color 
134.2 	blindness, disabled veterans. (a) Except as otherwise provided in this section, the 
134.3 	commissioner shall examine each applicant for a driver's license by such agency as the 
134.4 	commissioner directs. This examination must include:
134.5 	(1) a test of the applicant's eyesight;
134.6 	(2) a test of the applicant's ability to read and understand highway signs regulating, 
134.7 	warning, and directing traffic;
134.8 	(3) a test of the applicant's knowledge of (i) traffic laws; (ii) the effects of alcohol 
134.9 	and drugs on a driver's ability to operate a motor vehicle safely and legally, and of the 
134.10 	legal penalties and financial consequences resulting from violations of laws prohibiting 
134.11 	the operation of a motor vehicle while under the influence of alcohol or drugs; (iii) 
134.12 	railroad grade crossing safety; (iv) slow-moving vehicle safety; (v) laws relating to pupil 
134.13 	transportation safety, including the significance of school bus lights, signals, stop arm, and 
134.14 	passing a school bus; (vi) traffic laws related to bicycles; and (vii) the circumstances and 
134.15 	dangers of carbon monoxide poisoning;
134.16 	(4) an actual demonstration of ability to exercise ordinary and reasonable control 
134.17 	in the operation of a motor vehicle; and
134.18 	(5) other physical and mental examinations as the commissioner finds necessary to 
134.19 	determine the applicant's fitness to operate a motor vehicle safely upon the highways.
134.20 	(b) Notwithstanding paragraph (a), no driver's license may be denied an applicant on 
134.21 	the exclusive grounds that the applicant's eyesight is deficient in color perception. War 
134.22 	veterans operating motor vehicles especially equipped for disabled persons, if otherwise 
134.23 	entitled to a license, must be granted such license.
134.24 	(c) The commissioner shall make provision for giving the examinations under this 
134.25 	subdivision either in the county where the applicant resides or at a place adjacent thereto 
134.26 	reasonably convenient to the applicant.
134.27 	(d) The commissioner shall ensure that an applicant is able to obtain an appointment 
134.28 	for an examination to demonstrate ability under paragraph (a), clause (4), within 14 days 
134.29 	of the applicant's request if, under the applicable statutes and rules of the commissioner, 
134.30 	the applicant is eligible to take the examination.

134.31 	EFFECTIVE DATE. This section is effective May 1, 2015.

134.32 	Sec. 22. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL 
134.33 	CONFORMITY.
134.34 		Subdivision 1.Conformity with federal law. The commissioner of public safety 
134.35 	shall ensure the programs and policies related to commercial drivers' licensure and the 
135.1 	operation of commercial motor vehicles in Minnesota conform with the requirements of 
135.2 	Code of Federal Regulations, title 49, part 383.
135.3 		Subd. 2.Conflicts. To the extent a requirement of sections 171.162 to 171.169, or 
135.4 	any other state or local law, conflicts with a provision of Code of Federal Regulations, title 
135.5 	49, part 383, the federal provision prevails.

135.6 	Sec. 23. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision 
135.7 	to read:
135.8 		Subd. 10.Products and services; billing. The commissioner of transportation may 
135.9 	bill operations units of the department for costs of centrally managed products or services 
135.10 	that benefit multiple operations units. These costs may include equipment acquisition and 
135.11 	rental, labor, materials, and other costs determined by the commissioner. Receipts must be 
135.12 	credited to the special products and services account, which is established in the trunk 
135.13 	highway fund, and are appropriated to the commissioner to pay the costs for which the 
135.14 	billings are made. 

135.15 	Sec. 24. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is 
135.16 	amended to read:
135.17 		Subd. 2.Transportation economic development accounts. (a) A transportation 
135.18 	economic development account is established in the special revenue fund under the 
135.19 	budgetary jurisdiction of the legislative committees having jurisdiction over transportation 
135.20 	finance. Money in the account may be expended only as appropriated by law. The account 
135.21 	may not contain money transferred or otherwise provided from the trunk highway fund.
135.22 	(b) A transportation economic development account is established in the trunk 
135.23 	highway fund. The account consists of funds donated, allotted, transferred, or otherwise 
135.24 	provided to the account. Money in the account may be used only for trunk highway 
135.25 	purposes. All funds in the account available prior to August 1, 2013, are available until 
135.26 	expended.

135.27 	Sec. 25. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is 
135.28 	amended to read:
135.29 		Subd. 2.Funding requirement. In each federal fiscal year, the commissioner 
135.30 	shall obtain a total amount in federal authorizations for reimbursement on transportation 
135.31 	alternatives projects that is equal to or greater than the annual average of federal 
135.32 	authorizations on transportation alternatives projects calculated over the preceding four
135.33 	 federal fiscal years 2010 to 2012.

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

136.3 	Sec. 26. Minnesota Statutes 2012, section 174.56, subdivision 1, is amended to read:
136.4 		Subdivision 1.Report required. (a) The commissioner of transportation shall 
136.5 	submit a report by December 15 of each year on (1) the status of major highway projects 
136.6 	completed during the previous two years or under construction or planned during the year 
136.7 	of the report and for the ensuing 15 years, and (2) trunk highway fund expenditures, 
136.8 	and (3) beginning with the report due in 2016, efficiencies achieved during the previous 
136.9 	two fiscal years.
136.10 	(b) For purposes of this section, a "major highway project" is a highway project that 
136.11 	has a total cost for all segments that the commissioner estimates at the time of the report 
136.12 	to be at least (1) $15,000,000 in the metropolitan highway construction district, or (2) 
136.13 	$5,000,000 in any nonmetropolitan highway construction district.

136.14 	Sec. 27. [219.375] RAILROAD YARD LIGHTING.
136.15 		Subdivision 1.Lighting status reports submitted by railroad common carriers.
 136.16 	By January 15 of each year, each Class I and Class II railroad common carrier that 
136.17 	operates one or more railroad yards in this state, where, between sunset and sunrise, cars or 
136.18 	locomotives are frequently switched, repaired, or inspected, or where trains are assembled 
136.19 	and disassembled, shall submit to the commissioner of transportation a plan that:
136.20 	(1) identifies all railroad yards operated by the railroad where the described work 
136.21 	is frequently accomplished between sunset and sunrise;
136.22 	(2) describes the nature and placement of lighting equipment currently in use in the 
136.23 	yard and the maintenance status and practices regarding this equipment;
136.24 	(3) states whether the lighting meets or exceeds guidelines for illumination 
136.25 	established by the American Railway Engineering and Maintenance-of-Way Association;
136.26 	(4) describes whether existing lighting is installed and operated in a manner 
136.27 	consistent with energy conservation, glare reduction, minimization of light pollution, and 
136.28 	preservation of the natural night environment; and
136.29 	(5) identifies plans and timelines to bring into compliance railroad yards that do not 
136.30 	utilize and maintain lighting equipment that meets or exceeds the standards and guidelines 
136.31 	under clauses (3) and (4), or states any reason why the standards and guidelines should 
136.32 	not apply.
136.33 		Subd. 2.Maintenance of lighting equipment. A railroad common carrier 
136.34 	that is required to file a report under subdivision 1 shall maintain all railroad yard 
137.1 	lighting equipment in good working order and shall repair or replace any malfunctioning 
137.2 	equipment within 48 hours after the malfunction has been reported to the carrier. Repairs 
137.3 	must be made in compliance with, or to exceed the standards in, the Minnesota Electrical 
137.4 	Code and chapter 326B.
137.5 		Subd. 3.Lighting status reports submitted by worker representative. By 
137.6 	January 15 of each year, the union representative of the workers at each railroad yard 
137.7 	required to submit a report under subdivision 1 shall submit to the commissioner of 
137.8 	transportation a report that:
137.9 	(1) describes the nature and placement of lighting equipment currently in use in the 
137.10 	yard and maintenance status and practices regarding the equipment;
137.11 	(2) describes the level of maintenance of lighting equipment and the carrier's 
137.12 	promptness in responding to reports of lighting malfunction;
137.13 	(3) states whether the available lighting is adequate to provide safe working 
137.14 	conditions for crews working at night; and
137.15 	(4) describes changes in the lighting equipment and its adequacy that have occurred 
137.16 	since the last previous worker representative report.
137.17 		Subd. 4.Commissioner response. The commissioner shall review the reports 
137.18 	submitted under subdivisions 1 and 3. The commissioner shall investigate any 
137.19 	discrepancies between lighting status reports submitted under subdivisions 1 and 3, 
137.20 	and shall report findings to the affected yard's owner and worker representative. The 
137.21 	commissioner shall annually advise the chairs and ranking minority members of the house 
137.22 	of representatives and senate committees and divisions with jurisdiction over transportation 
137.23 	budget and policy as to the content of the reports submitted, discrepancies investigated, 
137.24 	the progress achieved by the railroad common carriers towards achieving the standards 
137.25 	and guidelines under clauses (3) and (4), and any recommendations for legislation to 
137.26 	achieve compliance with the standards and guidelines within a reasonable period of time.
137.27 		Subd. 5.Required lighting. By December 31, 2015, a railroad common carrier 
137.28 	shall establish lighting that meets the standards and guidelines under subdivision 1, clauses 
137.29 	(3) and (4), at each railroad yard where:
137.30 	(1) between sunset and sunrise:
137.31 	(i) locomotives, or railcars carrying placarded hazardous materials, are frequently 
137.32 	switched, repaired, or inspected; or
137.33 	(ii) trains with more than 25 tanker railcars carrying placarded hazardous materials 
137.34 	are assembled and disassembled; and
137.35 	(2) the yard is located within two miles of a petroleum refinery having a crude oil 
137.36 	production capacity of 150,000 or more barrels per day.

138.1 	Sec. 28. Minnesota Statutes 2012, section 222.50, subdivision 7, is amended to read:
138.2 		Subd. 7.Expenditures. (a) The commissioner may expend money from the rail 
138.3 	service improvement account for the following purposes:
138.4 	(1) to make transfers as provided under section 222.57 or to pay interest adjustments 
138.5 	on loans guaranteed under the state rail user and rail carrier loan guarantee program;
138.6 	(2) to pay a portion of the costs of capital improvement projects designed to improve 
138.7 	rail service of a rail user or a rail carrier;
138.8 	(3) to pay a portion of the costs of rehabilitation projects designed to improve rail 
138.9 	service of a rail user or a rail carrier;
138.10 	(4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to 
138.11 	the state rail bank program;
138.12 	(5) to provide for aerial photography survey of proposed and abandoned railroad 
138.13 	tracks for the purpose of recording and reestablishing by analytical triangulation the 
138.14 	existing alignment of the inplace track;
138.15 	(6) to pay a portion of the costs of acquiring a rail line by a regional railroad 
138.16 	authority established pursuant to chapter 398A;
138.17 	(7) to pay the state matching portion of federal grants for rail-highway grade 
138.18 	crossing improvement projects; and
138.19 	(8) for expenditures made before July 1, 2017, to pay the state matching portion 
138.20 	of grants under the federal Transportation Investment Generating Economic Recovery 
138.21 	(TIGER) program of the United States Department of Transportation; and
138.22 	(9) to fund rail planning studies.
138.23 	(b) All money derived by the commissioner from the disposition of railroad 
138.24 	right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall 
138.25 	be deposited in the rail service improvement account.

138.26 	Sec. 29. Minnesota Statutes 2013 Supplement, section 297A.815, subdivision 3, 
138.27 	is amended to read:
138.28 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this 
138.29 	subdivision, "net revenue" means an amount equal to:
138.30 	(1) the revenues, including interest and penalties, collected under this section, during 
138.31 	the fiscal year; less
138.32 	(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal 
138.33 	year 2013 and following fiscal years, $32,000,000 in each fiscal year.
139.1 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall 
139.2 	estimate the amount of the revenues and subtraction under paragraph (a)net revenue 
139.3 	for the current fiscal year.
139.4 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of management 
139.5 	and budget shall transfer the net revenue as estimated in paragraph (b) from the general 
139.6 	fund, as follows:
139.7 	(1) $9,000,000 annually until January 1, 2016 2015, and 50 percent annually 
139.8 	thereafter to the county state-aid highway fund. Notwithstanding any other law to the 
139.9 	contrary, the commissioner of transportation shall allocate the funds transferred under this 
139.10 	clause to the counties in the metropolitan area, as defined in section 473.121, subdivision 
139.11 	4, excluding the counties of Hennepin and Ramsey, so that each county shall receive 
139.12 	of such amount the percentage that its population, as defined in section 477A.011, 
139.13 	subdivision 3, estimated or established by July 15 of the year prior to the current calendar 
139.14 	year, bears to the total population of the counties receiving funds under this clause; and
139.15 	(2) the remainder to the greater Minnesota transit account.

139.16 	Sec. 30. [299A.017] STATE SAFETY OVERSIGHT.
139.17 		Subdivision 1.Office created. The commissioner of public safety shall establish an 
139.18 	Office of State Safety Oversight in the Department of Public Safety for safety oversight of 
139.19 	rail fixed guideway public transportation systems within the state. The commissioner shall 
139.20 	designate a director of the office.
139.21 		Subd. 2.Authority. The director shall implement and has regulatory authority to 
139.22 	enforce the requirements for the state set forth in United States Code, title 49, sections 
139.23 	5329 and 5330, federal regulations adopted pursuant to those sections, and successor or 
139.24 	supplemental requirements.

139.25 	Sec. 31. [473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.
139.26 		Subdivision 1.Adoption of standards. (a) By January 1, 2015, the Metropolitan 
139.27 	Council shall adopt and may thereafter amend standards for the design of light rail 
139.28 	vehicles that are reasonably necessary to provide access for, and to protect the health and 
139.29 	safety of, persons who use the service. All light rail transit vehicles procured on and after 
139.30 	January 1, 2015, must conform to the standards then in effect.
139.31 	(b) The Transportation Accessibility Advisory Committee must review the standards 
139.32 	and all subsequent amendments before the Metropolitan Council adopts them.
139.33 	(c) The Metropolitan Council shall post adopted standards, including amendments, 
139.34 	on its Web site.
140.1 		Subd. 2.Minimum standards. Standards adopted under this section must include, 
140.2 	but are not limited to:
140.3 	(1) two dedicated spaces for wheelchair users in each car;
140.4 	(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and
140.5 	(3) further specifications that meet or exceed the standards established in the 
140.6 	Americans with Disabilities Act.

140.7 	Sec. 32. [473.41] TRANSIT SHELTERS AND STOPS.
140.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
140.9 	have the meanings given.
140.10 	(b) "Transit authority" means:
140.11 	(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and 
140.12 	train stop locations, transit shelters, and transit passenger seating facilities owned by the 
140.13 	city or established pursuant to a vendor contract with the city;
140.14 	(2) the Metropolitan Council, with respect to transit shelters and transit passenger 
140.15 	seating facilities owned by the council or established pursuant to a vendor contract with 
140.16 	the council; or
140.17 	(3) a replacement service provider under section 473.388, with respect to 
140.18 	rights-of-way at bus stop and train stop locations, transit shelters, and transit passenger 
140.19 	seating facilities owned by the provider or established pursuant to a vendor contract 
140.20 	with the provider.
140.21 	(c) "Transit shelter" means a wholly or partially enclosed structure provided for 
140.22 	public use as a waiting area in conjunction with light rail transit, bus rapid transit, or 
140.23 	regular route transit.
140.24 		Subd. 2.Design. (a) A transit authority shall establish design specifications for 
140.25 	establishment and replacement of its transit shelters, which must include:
140.26 	(1) engineering standards, as appropriate;
140.27 	(2) maximization of protection from the wind, snow, and other elements;
140.28 	(3) to the extent feasible, inclusion of warming capability at each shelter in which 
140.29 	there is a proportionally high number of transit service passenger boardings; and
140.30 	(4) full accessibility for the elderly and persons with disabilities.
140.31 	(b) The council shall consult with the Transportation Accessibility Advisory 
140.32 	Committee. 
140.33 		Subd. 3.Maintenance. A transit authority shall ensure transit shelters are 
140.34 	maintained in good working order and are accessible to all users of the transit system. 
140.35 	This requirement includes but is not limited to:
141.1 	(1) keeping transit shelters reasonably clean and free from graffiti; and
141.2 	(2) removing snow and ice in a manner that provides accessibility for the elderly 
141.3 	and persons with disabilities to be able to enter and exit transit shelters, and board and 
141.4 	exit trains at each stop.

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

141.6 	Sec. 33. TRANSPORTATION EFFICIENCIES.
 141.7 	The commissioner of transportation shall include in the report under Minnesota 
141.8 	Statutes, section 174.56, due by December 15, 2015, information on efficiencies 
141.9 	implemented in fiscal year 2015 in planning and project management and delivery, 
141.10 	along with an explanation of the efficiencies employed to achieve the savings and the 
141.11 	methodology used in the calculations. The level of savings achieved must equal, in 
141.12 	comparison with the total state road construction budget for that year, a minimum of five 
141.13 	percent in fiscal year 2015. The report must identify the projects that have been advanced 
141.14 	or completed due to the implementation of efficiency measures.

141.15 	Sec. 34. WATERCRAFT DECONTAMINATION SITES; REST AREAS.
 141.16 	Where feasible with existing resources, the commissioners of natural resources 
141.17 	and transportation shall cooperate in an effort to use rest areas as sites for watercraft 
141.18 	decontamination and other activities to prevent the spread of aquatic invasive species.

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

141.20 	Sec. 35. HIGHWAY 14 TURNBACK.
 141.21 	(a) Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 
141.22 	161.16, or any other law to the contrary, the commissioner of transportation may:
141.23 	(1) by temporary order, take over the road described as "Old Highway 14" in the 
141.24 	settlement agreement and release executed January 7, 2014, between the state and Waseca 
141.25 	and Steele Counties; and
141.26 	(2) upon completion of the work described in the settlement agreement, release "Old 
141.27 	Highway 14" back to Steele and Waseca Counties.
141.28 	(b) Upon completion of the work described in the settlement agreement between the 
141.29 	state and Waseca and Steele Counties, the counties shall accept responsibility for the road 
141.30 	described in the agreement as "Old Highway 14."

141.31 	Sec. 36. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.
 142.1 		Subdivision 1.Engineering and traffic investigations. The commissioner of 
142.2 	transportation shall perform engineering and traffic investigations on trunk highway 
142.3 	segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per 
142.4 	hour. On determining upon the basis of the investigation that the 55 miles per hour speed 
142.5 	limit can be reasonably and safely increased under the conditions found to exist on any 
142.6 	of the trunk highway segments examined, the commissioner may designate an increased 
142.7 	limit applicable to those segments and erect appropriate signs designating the speed limit. 
142.8 	The new speed limit shall be effective when the signs are erected. Of all the roadways 
142.9 	to be studied under this section, approximately one-fifth must be subject to investigation 
142.10 	each year until the statewide study is complete in 2019.
142.11 		Subd. 2.Report. By January 15 annually, the commissioner shall provide to 
142.12 	the chairs and ranking minority members of the senate and house of representatives 
142.13 	committees with jurisdiction over transportation policy and finance a list of trunk 
142.14 	highways or segments of trunk highways that were subject to an engineering and safety 
142.15 	investigation in the previous calendar year, specifying in each case the applicable speed 
142.16 	limits before and after the investigation.

142.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
142.18 	and expires on the earlier of January 15, 2019, or the date the final report is submitted to 
142.19 	the legislative committees under this section.

142.20 	Sec. 37. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE 
142.21 	VERIFICATION.
 142.22 		Subdivision 1.Establishment. The task force on motor vehicle insurance coverage 
142.23 	verification is established to review and evaluate approaches to insurance coverage 
142.24 	verification and recommend legislation to create and fund a program in this state.
142.25 		Subd. 2.Membership; meetings; staff. (a) The task force shall be composed of 
142.26 	13 members, who must be appointed by July 1, 2014, and who serve at the pleasure of 
142.27 	their appointing authorities:
142.28 	(1) the commissioner of public safety or a designee;
142.29 	(2) the commissioner of commerce or a designee;
142.30 	(3) two members of the house of representatives, one appointed by the speaker of the 
142.31 	house and one appointed by the minority leader;
142.32 	(4) two members of the senate, one appointed by the Subcommittee on Committees 
142.33 	of the Committee on Rules and Administration and one appointed by the minority leader;
142.34 	(5) a representative of Minnesota Deputy Registrars Association;
142.35 	(6) a representative of AAA Minnesota;
143.1 	(7) a representative of AARP Minnesota;
143.2 	(8) a representative of the Insurance Federation of Minnesota;
143.3 	(9) a representative of the Minnesota Bankers Association;
143.4 	(10) a representative of the Minnesota Bar Association; and
143.5 	(11) a representative of the Minnesota Police and Peace Officers Association.
143.6 	(b) Compensation and expense reimbursement must be as provided under Minnesota 
143.7 	Statutes, section 15.059, subdivision 3, to members of the task force.
143.8 	(c) The commissioner of public safety shall convene the task force by August 
143.9 	1, 2014, and shall appoint a chair from the membership of the task force. Staffing and 
143.10 	technical assistance must be provided by the Department of Public Safety.
143.11 		Subd. 3.Duties. The task force shall review and evaluate programs established in 
143.12 	other states as well as programs proposed by third parties, identify one or more programs 
143.13 	recommended for implementation in this state, and, as to the recommended programs, 
143.14 	adopt findings concerning:
143.15 	(1) comparative costs of programs;
143.16 	(2) implementation considerations, and in particular, identifying the appropriate 
143.17 	supervising agency and assessing compatibility with existing and planned computer 
143.18 	systems;
143.19 	(3) effectiveness in verifying existence of motor vehicle insurance coverage;
143.20 	(4) identification of categories of authorized users;
143.21 	(5) simplicity of access and use for authorized users;
143.22 	(6) data privacy considerations;
143.23 	(7) data retention policies; and
143.24 	(8) statutory changes necessary for implementation.
143.25 		Subd. 4.Report. By February 1, 2015, the task force must submit to the 
143.26 	chairs and ranking minority members of the house of representatives and senate 
143.27 	committees and divisions with primary jurisdiction over commerce and transportation its 
143.28 	written recommendations, including any draft legislation necessary to implement the 
143.29 	recommendations.
143.30 		Subd. 5.Sunset. The task force shall sunset the day after submitting the report 
143.31 	under subdivision 4, or February 2, 2015, whichever is earlier.

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

143.33 	Sec. 38. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
 143.34 		Subdivision 1.Definition. (a) For purposes of this section, the following terms 
143.35 	have the meanings given.
144.1 	(b) "City" means the city of Two Harbors.
144.2 	(c) "General retail services" means a business that sells goods or services (1) at 
144.3 	retail and directly to an end-use consumer, and (2) that are of interest to tourists or the 
144.4 	traveling public.
144.5 		Subd. 2.Pilot program established. (a) In consultation with the city of Two 
144.6 	Harbors, the commissioner of transportation shall establish a community destination sign 
144.7 	pilot program for wayfinding within the city to destinations or attractions of interest to 
144.8 	the traveling public.
144.9 	(b) For purposes of Minnesota Statutes, chapter 173, signs under the pilot program 
144.10 	are official signs.
144.11 		Subd. 3.Signage, design. (a) The pilot program must include as eligible attractions 
144.12 	and destinations:
144.13 	(1) minor traffic generators; and
144.14 	(2) general retail services, specified by business name, that are identified in a 
144.15 	community wayfinding program established by the city.
144.16 	(b) The commissioner of transportation, in coordination with the city, may establish 
144.17 	sign design specifications for signs under the pilot program. Design specifications must 
144.18 	allow for placement of:
144.19 	(1) a city name and city logo or symbol; and
144.20 	(2) up to five attractions or destinations on a community destination sign assembly.
144.21 		Subd. 4.Program costs. The city shall pay costs of design, construction, 
144.22 	erection, and maintenance of the signs and sign assemblies under the pilot program. The 
144.23 	commissioner shall not impose fees for the pilot program.
144.24 		Subd. 5.Pilot program evaluation. In coordination with the city, the commissioner 
144.25 	of transportation shall evaluate effectiveness of the pilot program under this section, 
144.26 	which must include analysis of traffic safety impacts, utility to motorists and tourists, 
144.27 	costs and expenditures, extent of community support, and pilot program termination 
144.28 	or continuation. By January 15, 2021, the commissioner shall submit a report on the 
144.29 	evaluation to the chairs and ranking minority members of the legislative committees with 
144.30 	jurisdiction over transportation policy and finance.
144.31 		Subd. 6.Expiration. The pilot program under this section expires January 1, 2022.

144.32 	EFFECTIVE DATE. This section is effective the day after the governing body of 
144.33 	the city of Two Harbors and its chief clerical officer timely complete their compliance 
144.34 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

144.35 	Sec. 39. TRANSIT SERVICE ON ELECTION DAY.
 145.1 		Subdivision 1.Operating assistance recipients. An eligible recipient of operating 
145.2 	assistance under Minnesota Statutes, section 174.24, who contracts or has contracted to 
145.3 	provide fixed route public transit shall provide fixed route public transit service free of 
145.4 	charge on a day a state general election is held.
145.5 		Subd. 2.Metropolitan Council. (a) The Metropolitan Council shall provide 
145.6 	regular route transit, as defined under Minnesota Statutes, section 473.385, subdivision 1, 
145.7 	paragraph (b), free of charge on a day a state general election is held.
145.8 	(b) The requirements under this subdivision apply to operators of regular route 
145.9 	transit (1) receiving financial assistance under Minnesota Statutes, section 473.388, or (2) 
145.10 	operating under Minnesota Statutes, section 473.405, subdivision 12.

145.11 	EFFECTIVE DATE. This section is effective July 1, 2014, and expires November 
145.12 	5, 2014.

145.13 	ARTICLE 12
145.14 	AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES 
145.15 	APPROPRIATIONS

145.16	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
145.17 	The amounts shown in this section summarize direct appropriations, by fund, made 
145.18 	in this article.

145.19			2014
		2015
		Total
	
145.20	General
	$
	-0-
	$
	10,756,000
	$
	10,756,000
	
145.21	Remediation
		-0-
		650,000
		650,000
	
145.22	Natural Resources
		-0-
		900,000
		900,000
	
145.23	Game and Fish
		-0-
		2,412,000
		2,412,000
	
145.24
145.25	Environment and Natural 
Resources Trust 
		-0-
		490,000
		490,000
	
145.26	Parks and Trails
		530,000
		-0-
		530,000
	
145.27	Environmental
		-0-
		4,000,000
		4,000,000
	
145.28	Total
	$
	530,000
	$
	19,208,000
	$
	19,738,000

145.29	Sec. 2. APPROPRIATIONS.
 	
145.30 	The sums shown in the columns marked "Appropriations" are added to the 
145.31 	appropriations in Laws 2013, chapter 114, or appropriated to the agencies and for the 
145.32 	purposes specified in this article. The appropriations are from the general fund, or another 
145.33 	named fund, and are available for the fiscal year indicated for each purpose. The figures 
145.34 	"2014" and "2015" used in this article means that the addition to the appropriations 
145.35 	listed under them are available for the fiscal year ending June 30, 2014, or June 30, 
146.1 	2015, respectively. Appropriations for fiscal year 2014 are effective the day following 
146.2 	final enactment.

146.3				APPROPRIATIONS
	
146.4				Available for the Year
	
146.5				Ending June 30
	
146.6					2014
		2015

146.7	Sec. 3. AGRICULTURE.
 	$
	-0-
	$
	2,750,000
	
146.8 	$2,000,000 in 2015 is for a grant to Second 
146.9 	Harvest Heartland on behalf of the six 
146.10 	Feeding America food banks that serve 
146.11 	Minnesota to compensate agricultural 
146.12 	producers and processors for costs incurred 
146.13 	to harvest and package for transfer surplus 
146.14 	fruits, vegetables, or other agricultural 
146.15 	commodities that would otherwise go 
146.16 	unharvested or be discarded. Surplus 
146.17 	commodities must be distributed statewide 
146.18 	to food shelves and other charitable 
146.19 	organizations that are eligible to receive 
146.20 	food from the food banks. Surplus food 
146.21 	acquired under this appropriation must be 
146.22 	from Minnesota producers and processors. 
146.23 	Second Harvest Heartland must report when 
146.24 	required by, and in the form prescribed by, 
146.25 	the commissioner. For fiscal year 2015, 
146.26 	Second Harvest Heartland may use up 
146.27 	to 11 percent of any grant received for 
146.28 	administrative expenses. For fiscal years 
146.29 	2016 and 2017, Second Harvest Heartland 
146.30 	may use up to five percent of any grant 
146.31 	received for administrative expenses. This 
146.32 	is a onetime appropriation and is available 
146.33 	until June 30, 2017.
146.34 	The commissioner shall examine how other 
146.35 	states are implementing the industrial hemp 
147.1 	research authority provided in Public Law 
147.2 	113-79 and gauge the interest of Minnesota 
147.3 	higher education institutions. No later 
147.4 	than January 15, 2015, the commissioner 
147.5 	must report the information and items for 
147.6 	legislative consideration to the legislative 
147.7 	committees with jurisdiction over agriculture 
147.8 	policy and finance.
147.9 	$350,000 in 2015 is for an increase in retail 
147.10 	food handler inspections.
147.11 	$200,000 in 2015 is added to the 
147.12 	appropriation in Laws 2013, chapter 114, 
147.13 	article 1, section 3, subdivision 4, for 
147.14 	distribution to the state's county fairs. This is 
147.15 	a onetime appropriation.
147.16 	$200,000 in 2015 is for a grant as determined 
147.17 	by the commissioner to a public higher 
147.18 	education institution to research porcine 
147.19 	epidemic diarrhea virus. This is a onetime 
147.20 	appropriation and is available until June 30, 
147.21 	2017.

147.22	Sec. 4. BOARD OF ANIMAL HEALTH
 			$
	310,000
	
147.23 	$310,000 in 2015 is to administer the dog and 
147.24 	cat breeder licensing and inspection program. 
147.25 	The base in fiscal year 2016 is $426,000 and 
147.26 	the base in fiscal year 2017 is $435,000.

147.27	Sec. 5. POLLUTION CONTROL AGENCY
 	$
	-0-
	$
	4,650,000

147.28	Appropriations by Fund
	
147.29	Remediation
	-0-
	650,000
	
147.30	Environmental
	-0-
	4,000,000
	
147.31 	$650,000 in 2015 from the remediation 
147.32 	fund for additional staff and administrative 
147.33 	expenses to manage and oversee investigation 
148.1 	and mitigation efforts at superfund sites. 
148.2 	This is a onetime appropriation.
148.3 	The agency shall compile information on the 
148.4 	presence of plastic microbeads in the state's 
148.5 	waters and their potential impacts on aquatic 
148.6 	ecosystems and human health, in consultation 
148.7 	with the University of Minnesota. No later 
148.8 	than December 15, 2014, the commissioner 
148.9 	must present the information to the 
148.10 	legislative committees with jurisdiction over 
148.11 	environment and natural resources policy 
148.12 	and finance and make recommendations.
148.13 	$4,000,000 in 2015 is from the environmental 
148.14 	fund for the purposes of Minnesota Statutes, 
148.15 	section 115A.557, subdivision 2. $3,000,000 
148.16 	per year from the environmental fund is 
148.17 	added to the base.

148.18	Sec. 6. NATURAL RESOURCES

148.19	Subdivision 1.Total Appropriation
 	$
	530,000
	$
	5,862,000

148.20	Appropriations by Fund
	
148.21	General
	-0-
	3,000,000
	
148.22	Game and Fish
	-0-
	2,412,000
	
148.23	Natural Resources 
	-0-
	450,000
	
148.24	Parks and Trails
	530,000
	-0-
	
148.25 	The amounts that may be spent for each 
148.26 	purpose are specified in the following 
148.27 	subdivisions.

148.28	Subd. 2.Lands and Minerals
 		-0-
		1,000,000
	
148.29 	$1,000,000 in 2015 is for meeting the state's 
148.30 	fiduciary duty to Minnesota children with 
148.31 	regard to school trust land. By January 15, 
148.32 	2015, the commissioner, in consultation 
148.33 	with the commissioner of education, shall 
148.34 	submit a report to the chairs and ranking 
149.1 	minority members of the senate and house of 
149.2 	representatives committees with jurisdiction 
149.3 	over natural resources and education 
149.4 	policy and finance on the intended use of 
149.5 	these funds. The legislature must approve 
149.6 	expenditures of these funds by law. This is a 
149.7 	onetime appropriation and is available until 
149.8 	June 30, 2017.

149.9	Subd. 3.Ecological and Water Resources
 		-0-
		50,000
	
149.10 	$50,000 in 2015 is for a study of the effects 
149.11 	of the Lake Emily dam in Crow Wing County 
149.12 	on water clarity and water levels in Lake 
149.13 	Emily, Lake Mary, and the Little Pine River. 
149.14 	This is a onetime appropriation.

149.15
149.16	Subd. 4.Parks and Trails 
Management
 				530,000
		2,400,000

149.17	Appropriations by Fund
	
149.18	General
	-0-
	1,950,000
	
149.19	Natural Resources 
	-0-
	450,000
	
149.20	Parks and Trails
	530,000
	-0-
	
149.21 	$1,600,000 in 2015 is for the improvement, 
149.22 	maintenance, and conditions of facilities and 
149.23 	infrastructure in state parks for safety and 
149.24 	general use. This is a onetime appropriation.
149.25 	$450,000 in 2015 is from the natural 
149.26 	resources fund for state trail, park, and 
149.27 	recreation area operations. This appropriation 
149.28 	is from the revenue deposited in the natural 
149.29 	resources fund under Minnesota Statutes, 
149.30 	section 297A.94, paragraph (e), clause (2). 
149.31 	This is a onetime appropriation.
149.32 	$200,000 in 2014 is from the parks and trails 
149.33 	fund for the Greater Minnesota Regional 
149.34 	Parks and Trails Commission to develop a 
149.35 	statewide system plan for regional parks and 
150.1 	trails outside the seven-county metropolitan 
150.2 	area. This is a onetime appropriation and is 
150.3 	subject to the availability of appropriations 
150.4 	in Laws 2013, chapter 137, article 3, section 
150.5 	2, subdivision 2.
150.6 	$330,000 in 2014 is from the parks and 
150.7 	trails fund for a grant to St. Louis and 
150.8 	Lake Counties Regional Railroad Authority 
150.9 	for planning, engineering, right-of-way 
150.10 	acquisition, or construction of portions 
150.11 	of the Mesabi Trail in the corridor from 
150.12 	Giants Ridge to Tower. This is a onetime 
150.13 	appropriation and is subject to the availability 
150.14 	of appropriations in Laws 2013, chapter 137, 
150.15 	article 3, section 2, subdivision 2.
150.16 	$350,000 in 2015 is for the development of 
150.17 	the segment of the Willard Munger Trail 
150.18 	system that originates in Chisago County and 
150.19 	extends into Hinckley in Pine County, to be 
150.20 	named the James L. Oberstar Trail. This is a 
150.21 	onetime appropriation and is available until 
150.22 	spent.

150.23
150.24	Subd. 5.Fish and Wildlife 
Management
 				-0-
		2,412,000
	
150.25 	$3,000 in 2015 is from the heritage 
150.26 	enhancement account in the game and fish 
150.27 	fund for a report on aquatic plant management 
150.28 	permitting policies for the management 
150.29 	of narrow-leaved and hybrid cattail in a 
150.30 	range of basin types across the state. The 
150.31 	report shall be submitted to the chairs and 
150.32 	ranking minority members of the house of 
150.33 	representatives and senate committees with 
150.34 	jurisdiction over environment and natural 
150.35 	resources by December 15, 2014, and include 
150.36 	recommendations for any necessary changes 
151.1 	in statutes, rules, or permitting procedures. 
151.2 	This is a onetime appropriation.
151.3 	$9,000 in 2015 is from the game and fish 
151.4 	fund for the commissioner, in consultation 
151.5 	with interested parties, agencies, and other 
151.6 	states, to develop a detailed restoration plan 
151.7 	to recover the historical native population of 
151.8 	bobwhite quail in Minnesota for its ecological 
151.9 	and recreational benefits to the citizens of the 
151.10 	state. The commissioner shall conduct public 
151.11 	meetings in developing the plan. No later 
151.12 	than January 15, 2015, the commissioner 
151.13 	must report on the plan's progress to the 
151.14 	legislative committees with jurisdiction over 
151.15 	environment and natural resources policy 
151.16 	and finance. This is a onetime appropriation.
151.17 	$2,000,000 in 2015 is from the game and fish 
151.18 	fund for shooting sports facility grants under 
151.19 	Minnesota Statutes, section 87A.10. This is 
151.20 	a onetime appropriation and is available until 
151.21 	June 30, 2017.
151.22 	$400,000 in 2015 is from the heritage 
151.23 	enhancement account in the game and fish 
151.24 	fund for grants to local chapters of Let's Go 
151.25 	Fishing of Minnesota to provide community 
151.26 	outreach to senior citizens, youth, and 
151.27 	veterans and for the costs associated with 
151.28 	establishing and recruiting new chapters. 
151.29 	The grants must be matched with cash or 
151.30 	in-kind contributions from nonstate sources. 
151.31 	Of this amount, $25,000 is for Asian Outdoor 
151.32 	Heritage for youth fishing recruitment 
151.33 	efforts and outreach in the metropolitan area. 
151.34 	The commissioner shall establish a grant 
151.35 	application process that includes a standard 
152.1 	for ownership of equipment purchased 
152.2 	under the grant program and contract 
152.3 	requirements that cover the disposition 
152.4 	of purchased equipment if the grantee no 
152.5 	longer exists. Any equipment purchased 
152.6 	with state grant money must be specified 
152.7 	on the grant application and approved by 
152.8 	the commissioner. The commissioner may 
152.9 	spend up to three percent of the appropriation 
152.10 	to administer the grant. This is a onetime 
152.11 	appropriation and is available until June 30, 
152.12 	2016.

152.13	Subd. 6.Parks and trails fund cancellation
 					
152.14 	The appropriation for $530,000 from the 
152.15 	parks and trails fund for trail improvements 
152.16 	on the Duluth Cross City West Trail and the 
152.17 	Superior Hiking Trail in St. Louis County in 
152.18 	Laws 2013, chapter 137, article 3, section 3, 
152.19 	paragraph (c), clause (12), is canceled.

152.20	Sec. 7. METROPOLITAN COUNCIL
 	$
	-0-
	$
	525,000
	
152.21 	$450,000 in 2015 is from the natural 
152.22 	resources fund for metropolitan area regional 
152.23 	parks and trails maintenance and operations. 
152.24 	This appropriation is from the revenue 
152.25 	deposited in the natural resources fund 
152.26 	under Minnesota Statutes, section 297A.94, 
152.27 	paragraph (e), clause (3). This is a onetime 
152.28 	appropriation.
152.29 	$75,000 in 2015 is for a grant to the city of 
152.30 	Shoreview for a feasibility study regarding 
152.31 	the lowering of the water level of Turtle Lake 
152.32 	and the possible effects of an augmentation 
152.33 	of the lake. This is a onetime appropriation.

153.1	Sec. 8. UNIVERSITY OF MINNESOTA
 	$
	-0-
	$
	4,890,000

153.2	Appropriations by Fund
	
153.3	General
		4,400,000
	
153.4
153.5
153.6	Environment and 
Natural Resources 
Trust 
		490,000
	
153.7 	$3,400,000 in 2015 is from the general fund 
153.8 	for the Invasive Terrestrial Plants and Pests 
153.9 	Center requested under this act, including a 
153.10 	director, graduate students, and necessary 
153.11 	supplies. This is a onetime appropriation and 
153.12 	is available until June 30, 2022.
153.13 	$490,000 in 2015 is from the environment 
153.14 	and natural resources trust fund for the 
153.15 	Invasive Terrestrial Plants and Pests Center 
153.16 	requested under this act, including a director, 
153.17 	graduate students, and necessary supplies. 
153.18 	This is a onetime appropriation and is 
153.19 	available until June 30, 2022.
153.20 	$970,000 from the environment and natural 
153.21 	resources trust fund appropriated in Laws 
153.22 	2011, First Special Session chapter 2, article 
153.23 	3, section 2, subdivision 9, paragraph (d), 
153.24 	Reinvest in Minnesota Wetlands Reserve 
153.25 	Acquisition and Restoration Program 
153.26 	Partnership, is transferred to the Board of 
153.27 	Regents of the University of Minnesota for 
153.28 	the Invasive Terrestrial Plants and Pests 
153.29 	Center requested under this act, including a 
153.30 	director, graduate students, and necessary 
153.31 	supplies and is available until June 30, 2022.
153.32 	$1,000,000 in 2015 is for the Forever Green 
153.33 	Agricultural Initiative and to protect the 
153.34 	state's natural resources while increasing 
153.35 	efficiency, profitability, and productivity 
153.36 	of Minnesota farmers by incorporating 
154.1 	perennial and winter annual crops into 
154.2 	existing agricultural practices. By January 
154.3 	15, 2015, as a condition of this appropriation, 
154.4 	the Board of Regents of the University 
154.5 	of Minnesota shall submit a report to the 
154.6 	chairs and ranking minority members of the 
154.7 	house of representatives and senate policy 
154.8 	and finance committees with jurisdiction 
154.9 	over environment and natural resources and 
154.10 	agriculture on the activities and outcomes 
154.11 	of the Forever Green Agricultural Initiative. 
154.12 	This is a onetime appropriation and is 
154.13 	available until June 30, 2017.

154.14	Sec. 9. ADMINISTRATION
 	$
	-0-
	$
	185,000
	
154.15 	$185,000 in 2015 is for activities and the 
154.16 	administrative expenses of the school trust 
154.17 	lands director and additional staff, under 
154.18 	Minnesota Statutes, section 127A.353.

154.19
154.20	Sec. 10. LEGISLATIVE COORDINATING 
COMMISSION
 	$
	-0-
	$
	15,000
	
154.21 	$15,000 in 2015 is for the administrative 
154.22 	expenses of the Permanent School Fund 
154.23 	Commission under Minnesota Statutes, 
154.24 	section 127A.30, and for compensation 
154.25 	and expense reimbursement of commission 
154.26 	members.

154.27 	Sec. 11. Laws 2013, chapter 114, article 3, section 3, subdivision 6, is amended to read:

154.28	Subd. 6.Remediation Fund
 					
154.29 	The commissioner shall transfer up 
154.30 	to $46,000,000 $47,150,000 from the 
154.31 	environmental fund to the remediation fund 
154.32 	for the purposes of the remediation fund 
155.1 	under Minnesota Statutes, section 116.155, 
155.2 	subdivision 2.

155.3 	Sec. 12. Laws 2013, chapter 114, article 3, section 4, subdivision 3, is amended to read:

155.4
155.5	Subd. 3.Ecological and Water Resources
 		27,182,000
		31,582,000
31,603,000

155.6	Appropriations by Fund
	
155.7
155.8	General
	12,117,000
	16,817,000
16,838,000
	
155.9	Natural Resources
	11,002,000
	10,702,000
	
155.10	Game and Fish
	4,063,000
	4,063,000
	
155.11 	$3,542,000 the first year and $3,242,000 the 
155.12 	second year are from the invasive species 
155.13 	account in the natural resources fund and 
155.14 	$2,906,000 the first year and $3,206,000 the 
155.15 	second year are from the general fund for 
155.16 	management, public awareness, assessment 
155.17 	and monitoring research, and water access 
155.18 	inspection to prevent the spread of invasive 
155.19 	species; management of invasive plants in 
155.20 	public waters; and management of terrestrial 
155.21 	invasive species on state-administered lands.
155.22 	$5,000,000 the first year and $5,000,000 the 
155.23 	second year are from the water management 
155.24 	account in the natural resources fund for only 
155.25 	the purposes specified in Minnesota Statutes, 
155.26 	section 103G.27, subdivision 2.
155.27 	$103,000 the first year and $103,000
155.28 	 $124,000 the second year are for a grant to 
155.29 	the Mississippi Headwaters Board for up to 
155.30 	50 percent of the cost of implementing the 
155.31 	comprehensive plan for the upper Mississippi 
155.32 	within areas under the board's jurisdiction.
155.33 	 The base for this grant in fiscal year 2016 
155.34 	and later is $103,000. By January 15, 2015, 
155.35 	the board shall submit a report detailing the 
156.1 	results achieved with the fiscal year 2014 
156.2 	appropriation and the anticipated results 
156.3 	that will be achieved with the fiscal year 
156.4 	2015 appropriation to the commissioner and 
156.5 	the chairs and ranking minority members 
156.6 	of the senate and house of representatives 
156.7 	committees and divisions with jurisdiction 
156.8 	over environment and natural resources 
156.9 	policy and finance.
156.10 	$10,000 the first year and $10,000 the second 
156.11 	year are for payment to the Leech Lake Band 
156.12 	of Chippewa Indians to implement the band's 
156.13 	portion of the comprehensive plan for the 
156.14 	upper Mississippi.
156.15 	$264,000 the first year and $264,000 the 
156.16 	second year are for grants for up to 50 
156.17 	percent of the cost of implementation of 
156.18 	the Red River mediation agreement. The 
156.19 	commissioner shall submit a report to the 
156.20 	chairs of the legislative committees having 
156.21 	primary jurisdiction over environment and 
156.22 	natural resources policy and finance on the 
156.23 	accomplishments achieved with the grants 
156.24 	by January 15, 2015.
156.25 	$1,643,000 the first year and $1,643,000 
156.26 	the second year are from the heritage 
156.27 	enhancement account in the game and 
156.28 	fish fund for only the purposes specified 
156.29 	in Minnesota Statutes, section 297A.94, 
156.30 	paragraph (e), clause (1).
156.31 	$1,223,000 the first year and $1,223,000 the 
156.32 	second year are from the nongame wildlife 
156.33 	management account in the natural resources 
156.34 	fund for the purpose of nongame wildlife 
156.35 	management. Notwithstanding Minnesota 
157.1 	Statutes, section 290.431, $100,000 the first 
157.2 	year and $100,000 the second year may 
157.3 	be used for nongame wildlife information, 
157.4 	education, and promotion.
157.5 	$1,600,000 the first year and $6,000,000 the 
157.6 	second year are from the general fund for the 
157.7 	following activities:
157.8 	(1) increased financial reimbursement 
157.9 	and technical support to soil and water 
157.10 	conservation districts or other local units 
157.11 	of government for groundwater level 
157.12 	monitoring;
157.13 	(2) additional surface water monitoring and 
157.14 	analysis, including installation of monitoring 
157.15 	gauges;
157.16 	(3) additional groundwater analysis to 
157.17 	assist with water appropriation permitting 
157.18 	decisions;
157.19 	(4) additional permit application review 
157.20 	incorporating surface water and groundwater 
157.21 	technical analysis;
157.22 	(5) enhancement of precipitation data and 
157.23 	analysis to improve the use of irrigation;
157.24 	(6) enhanced information technology, 
157.25 	including electronic permitting and 
157.26 	integrated data systems; and
157.27 	(7) increased compliance and monitoring.
157.28 	Of this amount, $600,000 the first year is for 
157.29 	silica sand rulemaking and is available until 
157.30 	spent.
157.31 	The commissioner, in cooperation with the 
157.32 	commissioner of agriculture, shall enforce 
157.33 	compliance with aquatic plant management 
157.34 	requirements regulating the control of 
158.1 	aquatic plants with pesticides and removal of 
158.2 	aquatic plants by mechanical means under 
158.3 	Minnesota Statutes, section 103G.615.

158.4 	ARTICLE 13
158.5 	AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES 
158.6 	FISCAL IMPLEMENTATION PROVISIONS

158.7 	Section 1. Minnesota Statutes 2012, section 13.643, subdivision 6, is amended to read:
158.8 		Subd. 6.Animal premises data. (a) The following data collected and maintained 
158.9 	by the Board of Animal Health related to registration and identification of premises and 
158.10 	animals under chapter 35, are classified as private or nonpublic:
158.11 	(1) the names and addresses;
158.12 	(2) the location of the premises where animals are kept; and
158.13 	(3) the identification number of the premises or the animal.
158.14 	(b) Except as provided in section 347.58, subdivision 5, data collected and 
158.15 	maintained by the Board of Animal Health under sections 347.57 to 347.64 are classified 
158.16 	as private or nonpublic.
158.17 	(b) (c) The Board of Animal Health may disclose data collected under paragraph (a)
158.18 	 or (b) to any person, agency, or to the public if the board determines that the access will 
158.19 	aid in the law enforcement process or the protection of public or animal health or safety.

158.20 	Sec. 2. Minnesota Statutes 2012, section 16A.125, subdivision 5, is amended to read:
158.21 		Subd. 5.Forest trust lands. (a) The term "state forest trust fund lands" as used 
158.22 	in this subdivision, means public land in trust under the Constitution set apart as "forest 
158.23 	lands under the authority of the commissioner" of natural resources as defined by section 
158.24 	89.001, subdivision 13.
158.25 	(b) The commissioner of management and budget shall credit the revenue from the 
158.26 	forest trust fund lands to the forest suspense account. The account must specify the trust 
158.27 	funds interested in the lands and the respective receipts of the lands.
158.28 	(c) After a fiscal year, the commissioner of management and budget shall certify 
158.29 	the costs incurred for forestry during that year under appropriations for the improvement, 
158.30 	administration, and management of state forest trust fund lands and construction and 
158.31 	improvement of forest roads to enhance the forest value of the lands. The certificate 
158.32 	must specify the trust funds interested in the lands. After presentation to the Legislative 
158.33 	Permanent School Fund Commission, the commissioner of natural resources shall 
158.34 	supply the commissioner of management and budget with the information needed for the 
159.1 	certificate. The certificate shall include an analysis that compares costs certified under this 
159.2 	section with costs incurred on other public and private lands with similar land assets.
159.3 	(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 
159.4 	suspense account during that fiscal year as follows:
159.5 	(1) the amount of the certified costs incurred by the state for forest management, 
159.6 	forest improvement, and road improvement during the fiscal year shall be transferred to 
159.7 	the forest management investment account established under section 89.039;
159.8 	(2) the amount of costs incurred by the Legislative Permanent School Fund 
159.9 	Commission under section 127A.30, and by the school trust lands director under section 
159.10 	127A.353, shall be transferred to the general fund;
159.11 	(3) the balance of the certified costs incurred by the state during the fiscal year 
159.12 	shall be transferred to the general fund; and
159.13 	(3) (4) the balance of the receipts shall then be returned prorated to the trust funds in 
159.14 	proportion to their respective interests in the lands which produced the receipts.

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

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

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

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

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

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

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

160.16 	Sec. 10. Minnesota Statutes 2012, section 18B.04, is amended to read:
160.17 	18B.04 PESTICIDE IMPACT ON ENVIRONMENT.
160.18 	(a) The commissioner shall:
160.19 	(1) determine the impact of pesticides on the environment, including the impacts on 
160.20 	surface water and groundwater in this state;
160.21 	(2) develop best management practices involving pesticide distribution, storage, 
160.22 	handling, use, and disposal; and
160.23 	(3) cooperate with and assist other state agencies and local governments to protect 
160.24 	public health, pollinators, and the environment from harmful exposure to pesticides.
160.25 	(b) The commissioner may assemble a group of experts under section 16C.10, 
160.26 	subdivision 2, to consult in the investigation of pollinator deaths or illnesses. The group 
160.27 	of experts may include representatives from local, state, and federal agencies; academia, 
160.28 	including the University of Minnesota; the state pollinator bank; or other professionals as 
160.29 	deemed necessary by the commissioner. The amount necessary for the purposes of this 
160.30 	paragraph, not to exceed $100,000 per fiscal year, is appropriated from the pesticide 
160.31 	regulatory account in section 18B.05.

161.1 	Sec. 11. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE; 
161.2 	APPROPRIATION.
161.3 		Subdivision 1.Compensation required. (a) The commissioner of agriculture must 
161.4 	compensate a person for an acute pesticide poisoning resulting in the death of bees or loss 
161.5 	of bee colonies owned by the person, provided: 
161.6 	(1) the person who applied the pesticide cannot be determined;
161.7 	(2) the person who applied the pesticide did so in a manner consistent with the 
161.8 	pesticide product's label or labeling; or 
161.9 	(3) the person who applied the pesticide did so in a manner inconsistent with the 
161.10 	pesticide product's label or labeling.
161.11 	(b) Except as provided in this section, the bee owner is entitled to the fair market 
161.12 	value of the dead bees and bee colonies losses as determined by the commissioner upon 
161.13 	recommendation by academic experts and bee keepers. In any fiscal year, a bee owner 
161.14 	must not be compensated for a claim that is less than $100 or compensated more than 
161.15 	$20,000 for all eligible claims.
161.16 		Subd. 2.Applicator responsible. In the event a person applies a pesticide in a 
161.17 	manner inconsistent with the pesticide product's label or labeling requirements as approved 
161.18 	by the commissioner and is determined to have caused the acute pesticide poisoning of bees, 
161.19 	resulting in death or loss of a bee colony kept for commercial purposes, then the person so 
161.20 	identified must bear the responsibility of restitution for the value of the bees to the owner. 
161.21 	In these cases the commissioner must not provide compensation as provided in this section.
161.22 		Subd. 3.Claim form. The bee owner must file a claim on forms provided by the 
161.23 	commissioner and available on the Department of Agriculture's Web site.
161.24 		Subd. 4.Determination. The commissioner must determine whether the death of 
161.25 	the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the 
161.26 	pesticide applicator can be determined, and whether the pesticide applicator applied the 
161.27 	pesticide product in a manner consistent with the pesticide product's label or labeling.
161.28 		Subd. 5.Payments; denial of compensation. (a) If the commissioner determines 
161.29 	the bee death or loss of bee colony was caused by an acute pesticide poisoning and 
161.30 	either the pesticide applicator cannot be determined or the pesticide applicator applied 
161.31 	the pesticide product in a manner consistent with the pesticide product's label or labeling, 
161.32 	the commissioner may award compensation from the pesticide regulatory account. If the 
161.33 	pesticide applicator can be determined and the applicator applied the pesticide product 
161.34 	in a manner inconsistent with the product's label or labeling, the commissioner may 
161.35 	collect a penalty from the pesticide applicator sufficient to compensate the bee owner 
162.1 	for the fair market value of the dead bees and bee colonies losses, and must award the 
162.2 	money to the bee owner.
162.3 	(b) If the commissioner denies compensation claimed by a bee owner under this 
162.4 	section, the commissioner must issue a written decision based upon the available evidence. 
162.5 	The decision must include specification of the facts upon which the decision is based and 
162.6 	the conclusions on the material issues of the claim. The commissioner must mail a copy 
162.7 	of the decision to the bee owner.
162.8 	(c) A decision to deny compensation claimed under this section is not subject to the 
162.9 	contested case review procedures of chapter 14, but may be reviewed upon a trial de 
162.10 	novo in a court in the county where the loss occurred. The decision of the court may be 
162.11 	appealed as in other civil cases. Review in court may be obtained by filing a petition for 
162.12 	review with the administrator of the court within 60 days following receipt of a decision 
162.13 	under this section. Upon the filing of a petition, the administrator must mail a copy to the 
162.14 	commissioner and set a time for hearing within 90 days of the filing.
162.15 		Subd. 6.Deduction from payment. The commissioner must reduce payments 
162.16 	made under this section by any compensation received by the bee owner for dead bees and 
162.17 	bee colonies losses as proceeds from an insurance policy or from another source.
162.18 		Subd. 7.Appropriation. The amount necessary to pay claims under this section, 
162.19 	not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory 
162.20 	account in section 18B.05.

162.21 	EFFECTIVE DATE. This section is effective July 1, 2014, and applies to bee kills 
162.22 	and bee colony losses attributable to acute pesticide poisoning that occur on or after 
162.23 	that date.

162.24 	Sec. 12. Minnesota Statutes 2012, section 84.788, subdivision 2, is amended to read:
162.25 		Subd. 2.Exemptions. Registration is not required for off-highway motorcycles:
162.26 	(1) owned and used by the United States, an Indian tribal government, the state, 
162.27 	another state, or a political subdivision;
162.28 	(2) registered in another state or country that have not been within this state for 
162.29 	more than 30 consecutive days; or
162.30 	(3) registered under chapter 168, when operated on forest roads to gain access to a 
162.31 	state forest campground;
162.32 	(4) used exclusively in organized track racing events;
162.33 	(5) operated on state or grant-in-aid trails by a nonresident possessing a nonresident 
162.34 	off-highway motorcycle state trail pass; or
163.1 	(6) operated by a person participating in an event for which the commissioner has 
163.2 	issued a special use permit.

163.3 	Sec. 13. [84.7945] NONRESIDENT OFF-HIGHWAY MOTORCYCLE STATE 
163.4 	TRAIL PASS.
163.5 		Subdivision 1.Pass required; fee. (a) A tribal member exempt from registration 
163.6 	under section 84.788, subdivision 2, clause (2), or a nonresident, may not operate an 
163.7 	off-highway motorcycle on a state or grant-in-aid off-highway motorcycle trail unless the 
163.8 	operator carries a valid nonresident off-highway motorcycle state trail pass in immediate 
163.9 	possession. The pass must be available for inspection by a peace officer, a conservation 
163.10 	officer, or an employee designated under section 84.0835.
163.11 	(b) The commissioner of natural resources shall issue a pass upon application and 
163.12 	payment of a $20 fee. The pass is valid from January 1 through December 31. Fees 
163.13 	collected under this section, except for the issuing fee for licensing agents, shall be 
163.14 	deposited in the state treasury and credited to the off-highway motorcycle account in 
163.15 	the natural resources fund and, except for the electronic licensing system commission 
163.16 	established by the commissioner under section 84.027, subdivision 15, must be used for 
163.17 	grants-in-aid to counties and municipalities for off-highway motorcycle organizations to 
163.18 	construct and maintain off-highway motorcycle trails and use areas.
163.19 	(c) A nonresident off-highway motorcycle state trail pass is not required for:
163.20 	(1) an off-highway motorcycle that is owned and used by the United States, another 
163.21 	state, or a political subdivision thereof that is exempt from registration under section 
163.22 	84.788, subdivision 2;
163.23 	(2) a person operating an off-highway motorcycle only on the portion of a trail that 
163.24 	is owned by the person or the person's spouse, child, or parent; or
163.25 	(3) a nonresident operating an off-highway motorcycle that is registered according 
163.26 	to section 84.788.
163.27 		Subd. 2.License agents. The commissioner may appoint agents to issue and sell 
163.28 	nonresident off-highway motorcycle state trail passes. The commissioner may revoke the 
163.29 	appointment of an agent at any time. The commissioner may adopt additional rules as 
163.30 	provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted 
163.31 	by the commissioner for accounting and handling of passes pursuant to section 97A.485, 
163.32 	subdivision 11. An agent shall promptly deposit and remit all money received from the 
163.33 	sale of the passes, exclusive of the issuing fee, to the commissioner.
163.34 		Subd. 3.Issuance of passes. The commissioner and agents shall issue and sell 
163.35 	nonresident off-highway motorcycle state trail passes. The commissioner shall also make 
164.1 	the passes available through the electronic licensing system established under section 
164.2 	84.027, subdivision 15.
164.3 		Subd. 4.Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass 
164.4 	shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees 
164.5 	for passes issued by the commissioner shall be deposited in the off-highway motorcycle 
164.6 	account in the natural resources fund and retained for the operation of the electronic 
164.7 	licensing system.
164.8 		Subd. 5.Duplicate passes. The commissioner and agents shall issue a duplicate 
164.9 	pass to persons whose pass is lost or destroyed using the process established under section 
164.10 	97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident 
164.11 	off-highway motorcycle state trail pass is $2, with an issuing fee of 50 cents.

164.12 	Sec. 14. Minnesota Statutes 2012, section 85.053, subdivision 2, is amended to read:
164.13 		Subd. 2.Requirement. Except as provided in section 85.054, a motor vehicle 
164.14 	may not enter a state park, state recreation area, or state wayside over 50 acres in area, 
164.15 	without a state park permit issued under this section or a state parks and trails plate issued 
164.16 	under section 168.1295. Except for vehicles permitted under subdivisions 7, paragraph 
164.17 	(a), clause (2), and 8, the state park permit must be affixed to the lower right corner 
164.18 	windshield of the motor vehicle and must be completely affixed by its own adhesive to 
164.19 	the windshield, or the commissioner may, by written order, provide an alternative means 
164.20 	to display and validate state park permits.

164.21 	Sec. 15. [85.056] STATE PARKS AND TRAILS DONATION ACCOUNT.
164.22 		Subdivision 1.Establishment. The state parks and trails donation account is 
164.23 	established as a separate account in the natural resources fund. The account shall be 
164.24 	administered by the commissioner of natural resources as provided in this section.
164.25 		Subd. 2.Funding sources. The state parks and trails donation account shall consist 
164.26 	of contributions made under section 168.1295 and other contributions. The contributions 
164.27 	may be made in cash, property, land, or interests in land.
164.28 		Subd. 3.Uses. Money in the account is appropriated to the commissioner of natural 
164.29 	resources to operate and maintain the state parks and trails system.

164.30 	Sec. 16. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
164.31 		Subd. 7.Disposition of proceeds. (a) All revenue derived from the lease of the Fort 
164.32 	Snelling upper bluff, with the exception of payment for costs of the water line as described 
165.1 	in subdivision 6, shall be deposited in the natural resources fund and credited to a state 
165.2 	park account. Interest earned on the money in the account accrues to the account.
165.3 	(b) Revenue and expenses from the upper bluff shall be tracked separately within 
165.4 	the account. Money in the account derived from the leasing or operation of the property 
165.5 	described in subdivision 1 may be is appropriated annually to the commissioner for 
165.6 	the payment of expenses attributable to the leasing, development, and operation of the 
165.7 	property described in subdivision 1, including, but not limited to, the maintenance, repair, 
165.8 	and rehabilitation of historic buildings and landscapes.

165.9 	Sec. 17. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
165.10 		Subd. 2.Zoological Garden. The board shall acquire, construct, equip, operate 
165.11 	and maintain the Minnesota Zoological Garden at a site in Dakota County legally 
165.12 	described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist 
165.13 	of adequate facilities and structures for the collection, habitation, preservation, care, 
165.14 	exhibition, examination or study of wild and domestic animals, including, but not limited 
165.15 	to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board 
165.16 	may provide such lands, buildings and equipment as it deems necessary for parking, 
165.17 	transportation, entertainment, education or instruction of the public in connection with 
165.18 	such Zoological Garden. The Zoological Garden is an official pollinator bank for the state 
165.19 	of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to 
165.20 	avert the extinction of pollinator species by cultivating insurance breeding populations.

165.21 	Sec. 18. [87A.10] TRAP SHOOTING SPORTS FACILITY GRANTS.
165.22 	The commissioner of natural resources shall administer a program to provide 
165.23 	cost-share grants to local recreational shooting clubs for up to 50 percent of the costs 
165.24 	of developing or rehabilitating trap shooting sports facilities for public use. A facility 
165.25 	rehabilitated or developed with a grant under this section must be open to the general 
165.26 	public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner 
165.27 	shall give preference to projects that will provide the most opportunities for youth.

165.28 	Sec. 19. Minnesota Statutes 2012, section 103G.251, is amended to read:
165.29 	103G.251 INVESTIGATION OF ACTIVITIES WITHOUT PERMIT
165.30 	 AFFECTING WATERS OF THE STATE.
165.31 		Subdivision 1.Investigations. If the commissioner determines that an investigation 
165.32 	is in the public interest, the commissioner may investigate and monitor activities being 
165.33 	conducted with or without a permit that may affect waters of the state.
166.1 		Subd. 2.Findings and order. (a) With or without a public hearing, the 
166.2 	commissioner may make findings and issue orders related to activities being conducted 
166.3 	without a permit that affect waters of the state as otherwise authorized under this chapter.
166.4 	(b) A copy of the findings and order must be served on the person to whom the 
166.5 	order is issued.
166.6 	(c) If the commissioner issues the findings and order without a hearing, the person to 
166.7 	whom the order is issued may file a demand for a hearing with the commissioner. The 
166.8 	demand for a hearing must be accompanied by the bond as provided in section 103G.311, 
166.9 	subdivision 6, and the hearing must be held in the same manner and with the same 
166.10 	requirements as a hearing held under section 103G.311, subdivision 5. The demand for 
166.11 	a hearing and bond must be filed by 30 days after the person is served with a copy of 
166.12 	the commissioner's order.
166.13 	(d) The hearing must be conducted as a contested case hearing under chapter 14.
166.14 	(e) If the person to whom the order is addressed does not demand a hearing or 
166.15 	demands a hearing but fails to file the required bond:
166.16 	(1) the commissioner's order becomes final at the end of 30 days after the person is 
166.17 	served with the order; and
166.18 	(2) the person may not appeal the order.
166.19 	(f) An order of the commissioner may be recorded or filed by the commissioner in 
166.20 	the office of the county recorder or registrar of titles, as appropriate, in the county where 
166.21 	the real property is located as a deed restriction on the property that runs with the land 
166.22 	and is binding on the owners, successors, and assigns until the conditions of the order 
166.23 	are met or the order is rescinded.

166.24 	Sec. 20. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:
166.25 		Subd. 5.Prohibition on once-through water use permits. (a) Except as provided 
166.26 	in paragraph (c), the commissioner may not, after December 31, 1990, issue a water 
166.27 	use permit to increase the volume of appropriation from a groundwater source for a 
166.28 	once-through cooling system using in excess of 5,000,000 gallons annually.
166.29 	(b) Except as provided in paragraph (c), once-through system water use permits 
166.30 	using in excess of 5,000,000 gallons annually, must be terminated by the commissioner 
166.31 	by the end of their design life but not later than December 31, 2010, unless the discharge 
166.32 	is into a public water basin within a nature preserve approved by the commissioner and 
166.33 	established prior to January 1, 2001. Existing once-through systems must not be expanded 
166.34 	and are required to convert to water efficient alternatives within the design life of existing 
166.35 	equipment.
167.1 	(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of 
167.2 	the commissioners of health and the Pollution Control Agency, may issue once-through 
167.3 	system water use permits on an annual basis for aquifer storage and recovery systems that 
167.4 	return all once-through system water to the source aquifer. Water use permit processing 
167.5 	fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph, 
167.6 	including any reuse of water returned to the source aquifer.

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

167.8 	Sec. 21. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
167.9 		Subd. 6.Water use permit processing fee. (a) Except as described in paragraphs 
167.10 	(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in 
167.11 	accordance with the schedule of fees in this subdivision for each water use permit in force 
167.12 	at any time during the year. Fees collected under this paragraph are credited to the water 
167.13 	management account in the natural resources fund. The schedule is as follows, with the 
167.14 	stated fee in each clause applied to the total amount appropriated:
167.15 	(1) $140 for amounts not exceeding 50,000,000 gallons per year;
167.16 	(2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 
167.17 	than 100,000,000 gallons per year;
167.18 	(3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less 
167.19 	than 150,000,000 gallons per year;
167.20 	(4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but 
167.21 	less than 200,000,000 gallons per year;
167.22 	(5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less 
167.23 	than 250,000,000 gallons per year;
167.24 	(6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but 
167.25 	less than 300,000,000 gallons per year;
167.26 	(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 
167.27 	than 350,000,000 gallons per year;
167.28 	(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 
167.29 	less than 400,000,000 gallons per year;
167.30 	(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 
167.31 	than 450,000,000 gallons per year;
167.32 	(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 
167.33 	less than 500,000,000 gallons per year; and
167.34 	(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
168.1 	(b) For once-through cooling systems, a water use processing fee must be prescribed 
168.2 	by the commissioner in accordance with the following schedule of fees for each water use 
168.3 	permit in force at any time during the year:
168.4 	(1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
168.5 	(2) for all other users, $420 per 1,000,000 gallons.
168.6 	(c) The fee is payable based on the amount of water appropriated during the year 
168.7 	and, except as provided in paragraph (f), the minimum fee is $100.
168.8 	(d) For water use processing fees other than once-through cooling systems:
168.9 	(1) the fee for a city of the first class may not exceed $250,000 per year;
168.10 	(2) the fee for other entities for any permitted use may not exceed:
168.11 	(i) $60,000 per year for an entity holding three or fewer permits;
168.12 	(ii) $90,000 per year for an entity holding four or five permits; or
168.13 	(iii) $300,000 per year for an entity holding more than five permits;
168.14 	(3) the fee for agricultural irrigation may not exceed $750 per year;
168.15 	(4) the fee for a municipality that furnishes electric service and cogenerates steam 
168.16 	for home heating may not exceed $10,000 for its permit for water use related to the 
168.17 	cogeneration of electricity and steam; and
168.18 	(5) no fee is required for a project involving the appropriation of surface water to 
168.19 	prevent flood damage or to remove flood waters during a period of flooding, as determined 
168.20 	by the commissioner.
168.21 	(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
168.22 	 ten percent per month calculated from the original due date must be imposed on the unpaid 
168.23 	balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 
168.24 	may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal 
168.25 	governmental agency holding a water appropriation permit.
168.26 	(f) The minimum water use processing fee for a permit issued for irrigation of 
168.27 	agricultural land is $20 for years in which:
168.28 	(1) there is no appropriation of water under the permit; or
168.29 	(2) the permit is suspended for more than seven consecutive days between May 1 
168.30 	and October 1.
168.31 	(g) The commissioner shall waive the water use permit fee for installations and 
168.32 	projects that use storm water runoff or where public entities are diverting water to treat 
168.33 	a water quality issue and returning the water to its source without using the water for 
168.34 	any other purpose, unless the commissioner determines that the proposed use adversely 
168.35 	affects surface water or groundwater.
169.1 	(g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in 
169.2 	paragraph (a) shall be applied to the volume of water used in each of the months of June, 
169.3 	July, and August that exceeds the volume of water used in January for municipal water 
169.4 	use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 
169.5 	with more than one permit shall be determined based on the total appropriations from all 
169.6 	permits that supply a common distribution system.

169.7 	Sec. 22. Minnesota Statutes 2012, section 103G.281, is amended by adding a 
169.8 	subdivision to read:
169.9 		Subd. 4.Penalty for noncompliant reporting.  The commissioner may assess 
169.10 	penalties for noncompliant reporting of water use information as provided in this section. 
169.11 	The penalty is ten percent of the annual water use permit processing fee.

169.12 	Sec. 23. [103G.299] ADMINISTRATIVE PENALTIES.
169.13 		Subdivision 1.Authority to issue penalty orders. (a) As provided in paragraph 
169.14 	(b), the commissioner may issue an order requiring violations to be corrected and 
169.15 	administratively assessing monetary penalties for violations of sections 103G.271 and 
169.16 	103G.275, and any rules adopted under those sections.
169.17 	(b) An order under this section may be issued to a person for water appropriation 
169.18 	activities without a required permit.
169.19 	(c) The order must be issued as provided in this section and in accordance with 
169.20 	the plan prepared under subdivision 12.
169.21 		Subd. 2.Amount of penalty; considerations. (a) The commissioner may issue 
169.22 	orders assessing administrative penalties based on potential for harm and deviation from 
169.23 	compliance. For a violation that presents: (1) a minor potential for harm and deviation 
169.24 	from compliance, the penalty will be no more than $1,000; (2) a moderate potential for 
169.25 	harm and deviation from compliance, the penalty will be no more than $10,000; and (3) 
169.26 	a severe potential for harm and deviation from compliance, the penalty will be no more 
169.27 	than $20,000.
169.28 	(b) In determining the amount of a penalty the commissioner may consider:
169.29 	(1) the gravity of the violation, including potential for, or real, damage to the public 
169.30 	interest or natural resources of the state;
169.31 	(2) the history of past violations;
169.32 	(3) the number of violations;
169.33 	(4) the economic benefit gained by the person by allowing or committing the 
169.34 	violation based on data from local or state bureaus or educational institutions; and
170.1 	(5) other factors as justice may require, if the commissioner specifically identifies 
170.2 	the additional factors in the commissioner's order.
170.3 	(c) For a violation after an initial violation, including a continuation of the initial 
170.4 	violation, the commissioner must, in determining the amount of a penalty, consider the 
170.5 	factors in paragraph (b) and the:
170.6 	(1) similarity of the most recent previous violation and the violation to be penalized;
170.7 	(2) time elapsed since the last violation;
170.8 	(3) number of previous violations; and
170.9 	(4) response of the person to the most recent previous violation identified.
170.10 		Subd. 3.Contents of order. An order assessing an administrative penalty under 
170.11 	this section must include:
170.12 	(1) a concise statement of the facts alleged to constitute a violation;
170.13 	(2) a reference to the section of the statute, rule, order, or term or condition of 
170.14 	a permit that has been violated;
170.15 	(3) a statement of the amount of the administrative penalty to be imposed and the 
170.16 	factors upon which the penalty is based; and
170.17 	(4) a statement of the person's right to review of the order.
170.18 		Subd. 4.Corrective order. (a) The commissioner may issue an order assessing a 
170.19 	penalty and requiring the violations cited in the order to be corrected within a time period 
170.20 	specified by the commissioner.
170.21 	(b) The person to whom the order was issued must provide information to the 
170.22 	commissioner before the 31st day after the order was received demonstrating that the 
170.23 	violation has been corrected or that appropriate steps toward correcting the violation 
170.24 	have been taken.
170.25 	(c) The commissioner must determine whether the violation has been corrected and 
170.26 	notify the person subject to the order of the commissioner's determination.
170.27 		Subd. 5.Penalty. (a) Unless the person requests review of the order under 
170.28 	subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:
170.29 	(1) on the 31st day after the order was received, if the person subject to the order 
170.30 	fails to provide information to the commissioner showing that the violation has been 
170.31 	corrected or that appropriate steps have been taken toward correcting the violation; or
170.32 	(2) on the 20th day after the person receives the commissioner's determination under 
170.33 	subdivision 4, paragraph (c), if the person subject to the order has provided information 
170.34 	to the commissioner that the commissioner determines is not sufficient to show that the 
170.35 	violation has been corrected or that appropriate steps have been taken toward correcting 
170.36 	the violation.
171.1 	(b) The penalty is due by 31 days after the order was received, unless review of the 
171.2 	order under subdivision 6 or 7 has been sought.
171.3 	(c) Interest at the rate established in section 549.09 begins to accrue on penalties 
171.4 	under this subdivision on the 31st day after the order with the penalty was received.
171.5 		Subd. 6.Expedited administrative hearing. (a) Within 30 days after receiving 
171.6 	an order or within 20 days after receiving notice that the commissioner has determined 
171.7 	that a violation has not been corrected or appropriate steps have not been taken, the 
171.8 	person subject to an order under this section may request an expedited hearing, using 
171.9 	the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the 
171.10 	commissioner's determination. The hearing request must specifically state the reasons 
171.11 	for seeking review of the order. The person to whom the order is directed and the 
171.12 	commissioner are the parties to the expedited hearing. The commissioner must notify the 
171.13 	person to whom the order is directed of the time and place of the hearing at least 20 days 
171.14 	before the hearing. The expedited hearing must be held within 30 days after a request for 
171.15 	hearing has been filed with the commissioner unless the parties agree to a later date.
171.16 	(b) All written arguments must be submitted within ten days following the close of 
171.17 	the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to 
171.18 	1400.8612, as modified by this subdivision.
171.19 	(c) The administrative law judge must issue a report making recommendations about 
171.20 	the commissioner's action to the commissioner within 30 days following the close of the 
171.21 	record. The administrative law judge may not recommend a change in the amount of the 
171.22 	proposed penalty unless the administrative law judge determines that, based on the factors 
171.23 	in subdivision 2, the amount of the penalty is unreasonable.
171.24 	(d) If the administrative law judge makes a finding that the hearing was requested 
171.25 	solely for purposes of delay or that the hearing request was frivolous, the commissioner 
171.26 	may add to the amount of the penalty the costs charged to the department by the Office of 
171.27 	Administrative Hearings for the hearing.
171.28 	(e) If a hearing has been held, the commissioner may not issue a final order until at 
171.29 	least five days after receipt of the report of the administrative law judge. The person to 
171.30 	whom an order is issued may, within those five days, comment to the commissioner on the 
171.31 	recommendations, and the commissioner must consider the comments. The final order 
171.32 	may be appealed in the manner provided in sections 14.63 to 14.69.
171.33 	(f) If a hearing has been held and a final order issued by the commissioner, the 
171.34 	penalty must be paid by 30 days after the date the final order is received unless review of 
171.35 	the final order is requested under sections 14.63 to 14.69. If review is not requested or the 
172.1 	order is reviewed and upheld, the amount due is the penalty, together with interest accruing 
172.2 	from 31 days after the original order was received at the rate established in section 549.09.
172.3 		Subd. 7.Mediation. In addition to review under subdivision 6, the commissioner 
172.4 	may enter into mediation concerning an order issued under this section if the commissioner 
172.5 	and the person to whom the order is issued both agree to mediation.
172.6 		Subd. 8.Penalties due and payable. The commissioner may enforce penalties that 
172.7 	are due and payable under this section in any manner provided by law for the collection 
172.8 	of debts.
172.9 		Subd. 9.Revocation and suspension of permit. If a person fails to pay a penalty 
172.10 	owed under this section, the commissioner has grounds to revoke a permit or to refuse 
172.11 	to amend a permit or issue a new permit.
172.12 		Subd. 10.Cumulative remedy. The authority of the commissioner to issue a 
172.13 	corrective order assessing penalties is in addition to other remedies available under statutory 
172.14 	or common law, except that the state may not seek civil penalties under any other provision 
172.15 	of law for the violations covered by the administrative penalty order. The payment of a 
172.16 	penalty does not preclude the use of other enforcement provisions, under which penalties 
172.17 	are not assessed, in connection with the violation for which the penalty was assessed.
172.18 		Subd. 11.Deposit of fees. Fees collected under this section must be credited to the 
172.19 	water management account in the natural resources fund.
172.20 		Subd. 12.Plan for use of administrative penalties. The commissioner must 
172.21 	prepare a plan for using the administrative penalty authority in this section. The plan must 
172.22 	include explanations for how the commissioner will determine whether violations are 
172.23 	minor, moderate, or severe. The commissioner must provide a 30-day period for public 
172.24 	comment on the plan. The plan must be finalized within six months after the effective 
172.25 	date of this section.

172.26 	EFFECTIVE DATE. Subdivisions 1 to 11 of this section are effective January 1, 
172.27 	2015. Subdivision 12 of this section is effective July 1, 2014.

172.28 	Sec. 24. Minnesota Statutes 2012, section 115A.151, as amended by Laws 2014, 
172.29 	chapter 225, section 4, is amended to read:
172.30 	115A.151 RECYCLING REQUIREMENTS; PUBLIC ENTITIES; 
172.31 	COMMERCIAL BUILDINGS; SPORTS FACILITIES.
172.32 	(a) A public entity, the owner of a sports facility,  and an owner of a commercial 
172.33 	building shall:
173.1 	(1) ensure that facilities under its control, from which mixed municipal solid waste 
173.2 	is collected, also collect at least three recyclable materials, such as, but not limited to, 
173.3 	paper, glass, plastic, and metal; and
173.4 	(2) transfer all recyclable materials collected to a recycler.
173.5 	(b) For the purposes of this section:
173.6 	(1) "public entity" means the state, an office, agency, or institution of the state, 
173.7 	the Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control 
173.8 	Commission, the legislature, the courts, a county, a statutory or home rule charter city, a 
173.9 	town, a school district, a special taxing district, or any entity that receives an appropriation 
173.10 	from the state for a capital improvement project after August 1, 2002;
173.11 	(2) "metropolitan agency" and "Metropolitan Council," have the meanings given 
173.12 	them in section 473.121; 
173.13 	(3) "Metropolitan Mosquito Control Commission" means the commission created 
173.14 	in section 473.702; and
173.15 	(4) "commercial building" means a building that:
173.16 	(i) is located in a metropolitan county, as defined in section 473.121;
173.17 	(ii) contains a business classified in sectors 42 to 81 under the North American 
173.18 	Industrial Classification System; and
173.19 	(iii) contracts for four cubic yards or more per week of solid waste collection.; and
173.20 	(5) "sports facility" means a professional or collegiate sports facility at which 
173.21 	competitions take place before a public audience.

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

173.23 	Sec. 25. Minnesota Statutes 2012, section 115A.55, subdivision 4, is amended to read:
173.24 		Subd. 4.Statewide source reduction goal. (a) It is a goal of the state that there 
173.25 	be a minimum ten percent per capita reduction in the amount of mixed and counties to 
173.26 	reduce the generation of municipal solid waste generated in the state by December 31, 
173.27 	2000, based on a reasonable estimate of the amount of mixed municipal solid waste that 
173.28 	was generated in calendar year 1993.
173.29 	(b) As part of the 1997 report required under section 115A.411, the commissioner 
173.30 	shall submit to the senate and house of representatives committees having jurisdiction 
173.31 	over environment and natural resources and environment and natural resources finance 
173.32 	a proposed strategy for meeting the goal in paragraph (a). The strategy must include a 
173.33 	discussion of the different reduction potentials to be found in various sectors and may 
173.34 	include recommended interim goals. The commissioner shall report progress on meeting 
174.1 	the goal in paragraph (a), as well as recommendations and revisions to the proposed 
174.2 	strategy, as part of the 1999 report required under section 115A.411.

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

174.4 	Sec. 26. Minnesota Statutes 2012, section 115A.551, subdivision 1, is amended to read:
174.5 		Subdivision 1.Definition. (a) For the purposes of this section, "recycling" means, 
174.6 	in addition to the meaning given in section 115A.03, subdivision 25b, yard waste and 
174.7 	source-separated compostable materials composting, and recycling that occurs through 
174.8 	mechanical or hand separation of materials that are then delivered for reuse in their 
174.9 	original form or for use in manufacturing processes that do not cause the destruction of 
174.10 	recyclable materials in a manner that precludes further use.
174.11 	(b) For the purposes of this section, "total solid waste generation" means the total 
174.12 	by weight of:
174.13 	(1) materials separated for recycling;
174.14 	(2) materials separated for yard waste and source-separated compostable materials 
174.15 	composting;
174.16 	(3) mixed municipal solid waste plus yard waste, motor and vehicle fluids and 
174.17 	filters, tires, lead acid batteries, and major appliances; and
174.18 	(4) residential waste materials that would be mixed municipal solid waste but for 
174.19 	the fact that they are not collected as such.

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

174.21 	Sec. 27. Minnesota Statutes 2012, section 115A.551, subdivision 2a, is amended to read:
174.22 		Subd. 2a.Supplementary County recycling goals. (a) By December 31, 1996
174.23 	 2030, each county will have as a goal to recycle the following amounts:
174.24 	(1) for a county outside of the metropolitan area, 35 percent by weight of total 
174.25 	solid waste generation; and
174.26 	(2) for a metropolitan county, 50 75 percent by weight of total solid waste generation.
174.27 	(b) Each county will develop and implement or require political subdivisions within 
174.28 	the county to develop and implement programs, practices, or methods designed to meet its 
174.29 	recycling goal. Nothing in this section or in any other law may be construed to prohibit a 
174.30 	county from establishing a higher recycling goal.

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

174.32 	Sec. 28. Minnesota Statutes 2012, section 115A.557, subdivision 2, is amended to read:
175.1 		Subd. 2.Purposes for which money may be spent. (a) A county receiving money 
175.2 	distributed by the commissioner under this section may use the money only for the 
175.3 	development and implementation of programs to:
175.4 	(1) reduce the amount of solid waste generated;
175.5 	(2) recycle the maximum amount of solid waste technically feasible;
175.6 	(3) create and support markets for recycled products;
175.7 	(4) remove problem materials from the solid waste stream and develop proper 
175.8 	disposal options for them;
175.9 	(5) inform and educate all sectors of the public about proper solid waste management 
175.10 	procedures;
175.11 	(6) provide technical assistance to public and private entities to ensure proper solid 
175.12 	waste management;
175.13 	(7) provide educational, technical, and financial assistance for litter prevention; and
175.14 	(8) process mixed municipal solid waste generated in the county at a resource 
175.15 	recovery facility located in Minnesota; and
175.16 	(9) compost source-separated compostable materials, including the provision of 
175.17 	receptacles for residential composting.
175.18 	(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed 
175.19 	by the commissioner under this section to a metropolitan county, as defined in section 
175.20 	473.121, subdivision 4, that exceeds the amount the county was eligible to receive under 
175.21 	this section in fiscal year 2014: (1) at least 50 percent must be expended on activities 
175.22 	in paragraph (a), clause (9); and (2) the remainder must be expended on activities in 
175.23 	paragraph (a), clauses (1) to (7) and (9) that advance the county toward achieving its 
175.24 	recycling goal under section 115A.551.

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

175.26 	Sec. 29. Minnesota Statutes 2012, section 115A.557, subdivision 3, is amended to read:
175.27 		Subd. 3.Eligibility to receive money. (a) To be eligible to receive money distributed 
175.28 	by the commissioner under this section, a county shall within one year of October 4, 1989:
175.29 	(1) create a separate account in its general fund to credit the money; and
175.30 	(2) set up accounting procedures to ensure that money in the separate account is 
175.31 	spent only for the purposes in subdivision 2.
175.32 	(b) In each following year, each county shall also:
175.33 	(1) have in place an approved solid waste management plan or master plan including 
175.34 	a recycling implementation strategy under section 115A.551, subdivision 7, and a 
176.1 	household hazardous waste management plan under section 115A.96, subdivision 6, 
176.2 	by the dates specified in those provisions;
176.3 	(2) submit a report by April 1 of each year to the commissioner, which may be 
176.4 	submitted electronically and must be posted on the agency's Web site, detailing for the 
176.5 	previous calendar year:
176.6 	(i) how the money was spent including, but not limited to, specific recycling and 
176.7 	composting activities undertaken to increase the county's proportion of solid waste 
176.8 	recycled in order to achieve its recycling goal established in section 115A.551; specific 
176.9 	information on the number of employees performing SCORE planning, oversight, and 
176.10 	administration; the percentage of those employees' total work time allocated to SCORE 
176.11 	planning, oversight, and administration; the specific duties and responsibilities of those 
176.12 	employees; and the amount of staff salary for these SCORE duties and responsibilities of 
176.13 	the employees; and
176.14 	(ii) the resulting gains achieved in solid waste management practices; and
176.15 	(3) provide evidence to the commissioner that local revenue equal to 25 percent of 
176.16 	the money sought for distribution under this section will be spent for the purposes in 
176.17 	subdivision 2.
176.18 	(c) The commissioner shall withhold all or part of the funds to be distributed 
176.19 	to a county under this section if the county fails to comply with this subdivision and 
176.20 	subdivision 2.

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

176.22 	Sec. 30. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:
176.23 	116V.03 APPROPRIATION.
176.24 	$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the 
176.25 	general fund to the commissioner of revenue for transfer to the agricultural project 
176.26 	utilization account in the special revenue fund for the Agricultural Utilization Research 
176.27 	Institute established under section 116V.01.

176.28 	Sec. 31. [168.1295] STATE PARKS AND TRAILS PLATES.
176.29 		Subdivision 1.General requirements and procedures. (a) The commissioner shall 
176.30 	issue state parks and trails plates to an applicant who:
176.31 	(1) is a registered owner of a passenger automobile, recreational vehicle, one ton 
176.32 	pickup truck, or motorcycle;
176.33 	(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
177.1 	(3) pays the registration tax required under section 168.013;
177.2 	(4) pays the fees required under this chapter;
177.3 	(5) contributes a minimum of $50 annually to the state parks and trails donation 
177.4 	account established in section 85.056; and
177.5 	(6) complies with this chapter and rules governing registration of motor vehicles 
177.6 	and licensing of drivers.
177.7 	(b) The state parks and trails plate application must indicate that the contribution 
177.8 	specified under paragraph (a), clause (5), is a minimum contribution to receive the plate 
177.9 	and that the applicant may make an additional contribution to the account.
177.10 	(c) State parks and trails plates may be personalized according to section 168.12, 
177.11 	subdivision 2a.
177.12 		Subd. 2.Design. After consultation with interested groups, the commissioners of 
177.13 	natural resources and public safety shall jointly select a suitable symbol for use by the 
177.14 	commissioner of public safety to design the state parks and trails plates.
177.15 		Subd. 3.No refund. Contributions under this section must not be refunded.
177.16 		Subd. 4.Plate transfers. Notwithstanding section 168.12, subdivision 1, on 
177.17 	payment of a transfer fee of $5, plates issued under this section may be transferred to 
177.18 	another passenger automobile registered to the person to whom the plates were issued.
177.19 		Subd. 5.Contribution and fees credited. Contributions under subdivision 1, 
177.20 	paragraph (a), clause (5), must be paid to the commissioner and credited to the state 
177.21 	parks and trails donation account established in section 85.056. The other fees collected 
177.22 	under this section must be deposited in the vehicle services operating account of the 
177.23 	special revenue fund under section 299A.705.
177.24 		Subd. 6.Record. The commissioner shall maintain a record of the number of 
177.25 	plates issued under this section.
177.26 		Subd. 7.Exemption. Special plates issued under this section are not subject to 
177.27 	section 168.1293, subdivision 2.

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

177.31 	Sec. 32. [347.57] DEFINITIONS.
177.32 		Subdivision 1.Terms. The definitions in this section apply to sections 347.57 
177.33 	to 347.64.
177.34 		Subd. 2.Animal. "Animal" means a dog or a cat.
177.35 		Subd. 3.Board. "Board" means the Board of Animal Health.
178.1 		Subd. 4.Cat. "Cat" means a mammal that is wholly or in part of the species Felis 
178.2 	domesticus. An adult cat is a cat 28 weeks of age or older. A kitten is a cat under 28 
178.3 	weeks of age.
178.4 		Subd. 5.Commercial breeder. "Commercial breeder" means a person who 
178.5 	possesses or has an ownership interest in animals and is engaged in the business of 
178.6 	breeding animals for sale or for exchange in return for consideration, and who possesses 
178.7 	ten or more adult intact animals and whose animals produce more than five total litters of 
178.8 	puppies or kittens per year.
178.9 		Subd. 6.Confinement area. "Confinement area" means a structure used or 
178.10 	designed for use to restrict an animal to a limited amount of space, such as a room, pen, 
178.11 	cage, kennel, compartment, crate, or hutch.
178.12 		Subd. 7.Dog. "Dog" means a mammal that is wholly or in part of the species Canis 
178.13 	familiaris. An adult dog is a dog 28 weeks of age or older. A puppy is a dog under 28 
178.14 	weeks of age.
178.15 		Subd. 8.Facility. "Facility" means the place used by a commercial breeder for 
178.16 	breeding animals, and includes all buildings, property, confinement areas, and vehicles.
178.17 		Subd. 9.Local animal control authority. "Local animal control authority" means 
178.18 	an agency of the state, county, municipality, or other political subdivision of the state that 
178.19 	is responsible for animal control operations in its jurisdiction.
178.20 		Subd. 10.Person. "Person" means a natural person, firm, partnership, corporation, 
178.21 	or association, however organized.
178.22 		Subd. 11.Possess. "Possess" means to have custody of or have control over.
178.23 		Subd. 12.Veterinarian. "Veterinarian" means a veterinarian in good standing and 
178.24 	licensed in the state of Minnesota.

178.25 	Sec. 33. [347.58] LICENSING AND INSPECTIONS.
178.26 		Subdivision 1.Licensing. (a) The board may grant an operating license to a 
178.27 	commercial breeder and must enforce sections 347.58 to 347.64.
178.28 	(b) Beginning July 1, 2015, a commercial breeder must obtain an annual license 
178.29 	for each facility it owns or operates. More than one building on the same premises is 
178.30 	considered one facility. The initial prelicense inspection fee and the annual license fee is 
178.31 	$10 per adult intact animal, but each fee must not exceed $250.
178.32 	(c) The board must perform an announced initial prelicense inspection within 60 
178.33 	days from the date of receiving a license application. A commercial breeder is not in 
178.34 	violation of this section if the commercial breeder has filed a completed license application 
178.35 	with the board and the board has not performed the initial prelicense inspection. The 
179.1 	board must inspect a commercial breeder's facility before an initial license is issued. The 
179.2 	initial prelicense inspection fee must be included with the license application. Upon 
179.3 	completion of the inspection, the inspector must provide the commercial breeder an 
179.4 	inspection certificate signed by the inspector in a format approved by the board.
179.5 	(d) The license application must indicate if a commercial breeder operates under 
179.6 	more than one name from a single location or has an ownership interest in any other 
179.7 	facility. License holders must keep separate records for each business name.
179.8 	(e) The application must include a statement that includes the following information:
179.9 	(1) whether any license held by an applicant under this section or under any other 
179.10 	federal, state, county, or local law, ordinance, or other regulation relating to breeding cats 
179.11 	or dogs was ever suspended, revoked, or denied; and
179.12 	(2) whether the applicant was ever convicted of animal cruelty.
179.13 	(f) An application from a partnership, corporation, or limited liability company must 
179.14 	include the name and address of all partners, directors, officers, or members and must 
179.15 	include a notation of any partners, directors, officers, members, or others authorized to 
179.16 	represent the partnership, corporation, or limited liability company.
179.17 	(g) A nonresident applicant must consent to adjudication of any violation under the 
179.18 	laws of the state of Minnesota and in Minnesota courts.
179.19 	(h) A license issued under this section is not transferable.
179.20 	(i) A license holder must apply for license renewal annually by submitting a renewal 
179.21 	application on a form approved by the board. The license renewal application must be 
179.22 	postmarked or submitted electronically in a method approved by the board by July 1 
179.23 	of each year. The board may assess a late renewal penalty of up to 50 percent of the 
179.24 	license fee. If a license is not renewed by August 1, the board may require the commercial 
179.25 	breeder to reapply for an initial license.
179.26 	(j) A commercial breeder must submit to the board an annual report by July 1 on a 
179.27 	form prepared by the board. The form must include the current number of cats and dogs at 
179.28 	the facility on the date of the report, the number of animals during the preceding year that 
179.29 	were sold, traded, bartered, leased, brokered, given away, euthanized, or deceased from 
179.30 	other causes, and any other information required by the board.
179.31 	(k) If a commercial breeder is required to be licensed by the United States 
179.32 	Department of Agriculture, United States Department of Agriculture inspection reports 
179.33 	and records relating to animal care plans and veterinary care must be made available 
179.34 	during an inspection, upon request.
179.35 	(l) A commercial breeder must prominently display the commercial breeder's license 
179.36 	at each facility.
180.1 	(m) A commercial breeder's state license number or a symbol approved by the board 
180.2 	must be included in all of the commercial breeder's advertisements or promotions that 
180.3 	pertain to animals being sold or traded including, but not limited to, all newspapers, 
180.4 	Internet, radio, or flyers.
180.5 	(n) A commercial breeder must notify the board by certified mail or electronically 
180.6 	in a method approved by the board within ten days of any change in address, name, 
180.7 	management, or substantial control and ownership of the business or operation.
180.8 	(o) The board must refuse to issue an initial license when a commercial breeder:
180.9 	(1) is in violation of section 343.21; 343.24; 343.27; 343.28; 343.31; 343.37; 346.37; 
180.10 	346.38; 346.39; 346.44; or 346.155;
180.11 	(2) has failed to meet any of the requirements of this section and section 347.59;
180.12 	(3) is in violation of a local ordinance regarding breeders;
180.13 	(4) has been convicted, other than a petty misdemeanor conviction, of cruelty to 
180.14 	animals under Minnesota law or a substantially similar animal cruelty law of another 
180.15 	jurisdiction;
180.16 	(5) has had a substantially similar license denied, revoked, or suspended by another 
180.17 	federal or state authority within the last five years; or
180.18 	(6) has falsified any material information requested by the board.
180.19 	(p) A person who has been an officer, agent, direct family member, or employee of a 
180.20 	commercial breeder whose license was revoked or suspended and who was responsible for 
180.21 	or participated in the violation that was a basis for the revocation or suspension may not 
180.22 	be licensed while the revocation or suspension is in effect.
180.23 		Subd. 2.Inspections. (a) The board must inspect each licensed facility at least 
180.24 	annually. The inspection must be with the commercial breeder or an agent of the 
180.25 	commercial breeder present. The inspector must submit an inspection report to the board 
180.26 	within ten days of each inspection on a form prepared by the board. The inspection report 
180.27 	form must list separately each law, rule, regulation, and ordinance the facility is not in 
180.28 	compliance with and what correction is required for compliance. The inspection report 
180.29 	form must document the animal inventory on the date of the inspection.
180.30 	(b) If, after the prelicense inspection, the commercial breeder has two consecutive 
180.31 	years of inspections with no violations, the board must inspect the commercial breeder at 
180.32 	least every two years. If the commercial breeder has any violations during an inspection or 
180.33 	if the board has cause, the board must inspect the commercial breeder at least annually.
180.34 	(c) If a license to operate is suspended, revoked, or denied, the board must be granted 
180.35 	access to the facility during normal business hours to verify that it is not operating.
181.1 		Subd. 3.Record requirements. (a) The commercial breeder must keep records on 
181.2 	each animal at the facility that includes:
181.3 	(1) the name, address, and United States Department of Agriculture license number, 
181.4 	if applicable, from whom an animal was received; the date the commercial breeder 
181.5 	received the animal; the date of the animal's birth; the breed, sex, color, and identifying 
181.6 	marks of the animal; any identifying tag, tattoo, microchip, or collar number; worming 
181.7 	treatments, vaccinations, and name of the person who administered the vaccination; 
181.8 	medication received by the animal while in the possession of the commercial breeder; and 
181.9 	any disease conditions diagnosed by a veterinarian; and
181.10 	(2) the name and address of the person or entity to whom an animal was transferred.
181.11 	(b) The commercial breeder must maintain a copy of the records required to be 
181.12 	kept under this subdivision for two years.
181.13 		Subd. 4.Veterinary protocol. (a) A commercial breeder must establish and 
181.14 	maintain a written protocol for disease control and prevention, euthanasia, and veterinary 
181.15 	care of animals at each facility. The initial protocol must be developed under the direction 
181.16 	and supervision of the board. A commercial breeder must maintain a written protocol that 
181.17 	is updated at least every 12 months and that is signed and dated by the board or by a 
181.18 	veterinarian along with the commercial breeder. The written protocol must be available to 
181.19 	the board upon request or at the time of inspection.
181.20 	(b) An animal sold or otherwise distributed by a commercial breeder must be 
181.21 	accompanied by a veterinary health certificate completed by a veterinarian. The certificate 
181.22 	must be completed within 30 days prior to the sale or distribution and must indicate that 
181.23 	the animal is current with vaccinations and has no signs of infectious or contagious 
181.24 	diseases. The certificate accompanying an adult dog that was not spayed or neutered must 
181.25 	indicate that the dog has no signs of infectious or contagious diseases and was tested for 
181.26 	canine brucellosis with a test approved by the board and found to be negative.
181.27 		Subd. 5.Posting of information. The board must maintain and post in a timely 
181.28 	manner on its Web site a list of commercial breeders licensed and in good standing 
181.29 	under this section.

181.30 	Sec. 34. [347.59] STANDARDS OF CARE.
181.31 	(a) A commercial breeder must comply with chapters 343 and 346.
181.32 	(b) A commercial breeder must ensure that animals that are part of the commercial 
181.33 	breeder's breeding business operations are cared for as follows:
181.34 	(1) cats must not be housed in outdoor confinement areas;
182.1 	(2) animals exercised in groups must be compatible and show no signs of contagious 
182.2 	or infectious disease;
182.3 	(3) females in estrus must not be housed in the same confinement area with 
182.4 	unneutered males, except for breeding purposes;
182.5 	(4) animals must be provided daily enrichment and must be provided positive physical 
182.6 	contact with human beings and compatible animals at least twice daily unless a veterinarian 
182.7 	determines such activities would adversely affect the health or well-being of the animal;
182.8 	(5) animals must not be sold, traded, or given away before the age of eight weeks 
182.9 	unless a veterinarian determines it would be in the best interests of the health or well-being 
182.10 	of the animal;
182.11 	(6) the commercial breeder must provide identification and tracking for each animal, 
182.12 	which is not transferable to another animal; and
182.13 	(7) the commercial breeder must provide adequate staff to maintain the facility and 
182.14 	observe each animal daily to monitor each animal's health and well-being, and to properly 
182.15 	care for the animals.
182.16 	(c) A commercial breeder must not knowingly hire staff or independent contractors 
182.17 	who have been convicted of cruelty to animals under the law of any jurisdiction.
182.18 	(d) A commercial breeder must comply with any additional standards the board 
182.19 	considers necessary to protect the public health and welfare of animals covered under 
182.20 	sections 347.57 to 347.61. The standards must be established by rule.
182.21 	(e) A United States Department of Agriculture (USDA) licensed breeder or dealer 
182.22 	who is in compliance with the minimum USDA regulations governing the license holder 
182.23 	as they relate to animal confinement areas as of the effective date of this section does not 
182.24 	have to comply with the minimum confinement area measurements under section 346.39, 
182.25 	subdivision 4, for existing confinement areas in each facility the breeder or dealer owns. If 
182.26 	a USDA-licensed breeder or dealer builds a new confinement area after the effective date 
182.27 	of this section, those minimum standards must meet or exceed the minimum specifications 
182.28 	as they relate to confinement area size under section 346.39, subdivision 4.

182.29 	Sec. 35. [347.60] INVESTIGATIONS.
182.30 	(a) The board must initiate an investigation upon receiving a formal complaint 
182.31 	alleging violations of section 347.58 or 347.59.
182.32 	(b) When a local animal control authority, a peace officer, or a humane agent 
182.33 	appointed under section 343.01 is made aware of an alleged violation under this chapter 
182.34 	or chapter 343 or 346, committed by a commercial breeder, the local animal control 
183.1 	authority, peace officer, or humane agent appointed under section 343.01 must report the 
183.2 	alleged violation in a timely manner to the board.

183.3 	Sec. 36. [347.61] CIVIL ENFORCEMENT.
183.4 		Subdivision 1.Correction orders. (a) The board may issue a correction order 
183.5 	requiring a commercial breeder to correct a violation of state statutes, rules, and 
183.6 	regulations governing breeding facilities. The correction order must state the deficiencies 
183.7 	that constitute the violation; the specific statute, rule, or regulation violated; and when 
183.8 	the violation must be corrected.
183.9 	(b) A commercial breeder may ask the board to reconsider any portion of the 
183.10 	correction order that the commercial breeder believes is in error. The request for 
183.11 	reconsideration must be made in writing by certified mail or electronically in a method 
183.12 	approved by the board within seven days after receipt of the correction order. The 
183.13 	request for reconsideration does not stay the correction order. The board must respond 
183.14 	to the request for reconsideration within 15 days after receiving a request. The board's 
183.15 	disposition of a request for reconsideration is final. The board may extend the time for 
183.16 	complying with a correction order after receiving a request for reconsideration if necessary.
183.17 	(c) The board must reinspect the facility within 15 days after the time for correcting 
183.18 	the violation has passed to determine whether the violation has been corrected. If the 
183.19 	violation has been corrected, the board must notify the commercial breeder in writing that 
183.20 	the commercial breeder is in compliance with the correction order. The board may charge 
183.21 	a reinspection fee to determine if a previous violation has been corrected.
183.22 		Subd. 2.Administrative penalty orders. After the inspection required under 
183.23 	subdivision 1, paragraph (c), the board may issue an order requiring violations to 
183.24 	be corrected and administratively assessing monetary penalties for violations. The 
183.25 	administrative penalty order must include a citation of the statute, rule, or regulation 
183.26 	violated; a description of the violation; and the amount of the penalty for each violation. A 
183.27 	single correction order may assess a maximum administrative penalty of $5,000.
183.28 		Subd. 3.Injunctive relief. In addition to any other remedy provided by law, the 
183.29 	board may bring an action for injunctive relief in the district court in Ramsey County or in 
183.30 	the county in which a violation of the statutes, rules, or regulations governing the breeding 
183.31 	of cats and dogs occurred to enjoin the violation.
183.32 		Subd. 4.Cease and desist. The board must issue an order to cease a practice if its 
183.33 	continuation would result in an immediate risk to animal welfare or public health. An 
183.34 	order issued under this subdivision is effective for a maximum of 72 hours. The board or 
183.35 	its designated agent must seek an injunction or take other administrative action authorized 
184.1 	by law to restrain a practice beyond 72 hours. The issuance of a cease-and-desist order 
184.2 	does not preclude other enforcement action by the board.
184.3 		Subd. 5.Refusal to reissue license; license suspension or revocation. (a) The 
184.4 	board may suspend, revoke, or refuse to renew a license as follows:
184.5 	(1) for failure to comply with a correction order;
184.6 	(2) for failure to pay an administrative penalty;
184.7 	(3) for failure to meet the requirements of section 347.58 or 347.59; or
184.8 	(4) for falsifying information requested by the board.
184.9 	A license suspension, revocation, or nonrenewal may be appealed through the Office of 
184.10 	Administrative Hearings. A notice of intent to appeal must be filed in writing with the 
184.11 	board within 20 days after receipt of the notice of suspension, revocation, or nonrenewal.
184.12 	(b) The board must revoke a license if a commercial breeder has been convicted 
184.13 	of cruelty to animals under Minnesota law or a substantially similar animal cruelty law 
184.14 	of another jurisdiction, or for the denial, revocation, or suspension of a similar license 
184.15 	by another federal or state authority. A license revocation under this subdivision may be 
184.16 	appealed through the Office of Administrative Hearings. A notice of intent to appeal must 
184.17 	be filed in writing with the board within 20 days after receipt of the notice of revocation.
184.18 	(c) A commercial breeder whose license is revoked may not reapply for licensure for 
184.19 	two years after the date of revocation. The license is permanently revoked if the basis for 
184.20 	the revocation was a gross misdemeanor or felony conviction for animal cruelty.
184.21 	(d) A commercial breeder whose license is suspended or revoked two times is 
184.22 	permanently barred from licensure.
184.23 		Subd. 6.Administrative hearing rights. (a) Except as provided in paragraph 
184.24 	(b), if the board proposes to refuse to renew, suspend, or revoke a license, the board 
184.25 	must first notify the commercial breeder in writing of the proposed action and provide an 
184.26 	opportunity to request a hearing under the contested case provisions of chapter 14. If the 
184.27 	commercial breeder does not request a hearing within 20 days after receipt of the notice of 
184.28 	the proposed action, the board may proceed with the action without a hearing.
184.29 	(b) The contested case provisions of chapter 14 do not apply when the board denies 
184.30 	a license based on an applicant's failure to meet the minimum qualifications for licensure.
184.31 	(c) A commercial breeder may appeal the amount of an administrative penalty 
184.32 	order through the Office of Administrative Hearings pursuant to the procedures set forth 
184.33 	in chapter 14. A commercial breeder wishing to file an appeal must notify the board in 
184.34 	writing within 20 days after receipt of the administrative penalty order.
184.35 		Subd. 7.Other jurisdictions. The board may accept as prima facie evidence of 
184.36 	grounds for an enforcement action under this section any enforcement or disciplinary 
185.1 	action from another jurisdiction, if the underlying violation would be grounds for a 
185.2 	violation under the provisions of this section.
185.3 		Subd. 8.Appeals. A final order by the board may be appealed to the Minnesota 
185.4 	Court of Appeals.

185.5 	Sec. 37. [347.615] BIOSECURITY; ENTRY INTO FACILITIES.
185.6 	No law enforcement officer, agent of the board, or other official may enter a 
185.7 	commercial breeder facility unless the person follows either the biosecurity procedure 
185.8 	issued by the board or a reasonable biosecurity procedure maintained and prominently 
185.9 	posted by the commercial breeder at each entry to a facility, whichever is more stringent. 
185.10 	This section does not apply in emergency or exigent circumstances.

185.11 	Sec. 38. [347.62] PENALTIES.
185.12 	(a) A violation of section 347.58 or 347.59 that results in cruelty or torture to an 
185.13 	animal, as those terms are defined in section 343.20, subdivision 3, is subject to the 
185.14 	penalties in section 343.21, subdivisions 9 and 10, relating to pet or companion animals.
185.15 	(b) It is a misdemeanor to falsify information in a license application, annual report, 
185.16 	or record.
185.17 	(c) It is a misdemeanor for an unlicensed commercial breeder to advertise animals 
185.18 	for sale.
185.19 	(d) It is a misdemeanor for a commercial breeder to operate without a license.

185.20 	Sec. 39. [347.63] DOG AND CAT BREEDERS LICENSING ACCOUNT; 
185.21 	APPROPRIATION.
185.22 	A dog and cat breeders licensing account is created in the special revenue fund. 
185.23 	All fees and penalties collected by the board under sections 347.58 to 347.62 must be 
185.24 	deposited in the state treasury and credited to the dog and cat breeders licensing account 
185.25 	in the special revenue fund. Money in the account, including interest on the account, is 
185.26 	annually appropriated to the board to administer those sections.

185.27 	Sec. 40. [347.64] APPLICABILITY.
185.28 	Sections 347.57 to 347.63 do not apply to:
185.29 	(1) any species other than dogs and cats as they are defined in section 347.57; and
185.30 	(2) veterinary clinics or veterinary hospitals.

186.1 	Sec. 41. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by 
186.2 	Laws 2009, chapter 37, article 1, section 61, is amended to read:

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

186.4	Appropriations by Fund
	
186.5	General
	-0-
	(427,000)
	
186.6	Game and Fish
	123,000
	546,000
	
186.7 	$329,000 in 2009 is a reduction for fish and 
186.8 	wildlife management.
186.9 	$46,000 in 2009 is a reduction in the 
186.10 	appropriation for the Minnesota Shooting 
186.11 	Sports Education Center.
186.12 	$52,000 in 2009 is a reduction for licensing.
186.13 	$123,000 in 2008 and $246,000 in 2009 are 
186.14 	from the game and fish fund to implement 
186.15 	fish virus surveillance, prepare infrastructure 
186.16 	to handle possible outbreaks, and implement 
186.17 	control procedures for highest risk waters 
186.18 	and fish production operations. This is a 
186.19 	onetime appropriation.
186.20 	Notwithstanding Minnesota Statutes, section 
186.21 	297A.94, paragraph (e), $300,000 in 2009 
186.22 	is from the second year appropriation in 
186.23 	Laws 2007, chapter 57, article 1, section 4, 
186.24 	subdivision 7, from the heritage enhancement 
186.25 	account in the game and fish fund to study, 
186.26 	predesign, and design a shooting sports 
186.27 	facility in the seven-county metropolitan 
186.28 	area for shooting sports facilities. Of this 
186.29 	amount, $100,000 is for a grant to the Itasca 
186.30 	County Gun Club for shooting sports facility 
186.31 	improvements; and the remaining balance 
186.32 	is for trap shooting facility grants under 
186.33 	Minnesota Statutes, section 87A.10. This is 
186.34 	available onetime only and is available until 
186.35 	expended.
187.1 	$300,000 in 2009 is appropriated from the 
187.2 	game and fish fund for only activities that 
187.3 	improve, enhance, or protect fish and wildlife 
187.4 	resources. This is a onetime appropriation.

187.5 	Sec. 42. Laws 2013, chapter 114, article 4, section 47, is amended by adding an 
187.6 	effective date to read:

187.7 	EFFECTIVE DATE. This section is effective June 1, 2013.

187.8 	EFFECTIVE DATE. This section is effective retroactively from June 1, 2013.

187.9 	Sec. 43. APIARY PROGRAM.
 187.10 	No later than January 15, 2015, the commissioner of agriculture shall report to 
187.11 	the house of representatives and senate committees with jurisdiction over agriculture 
187.12 	regarding re-establishing an apiary program. The report shall include, at a minimum, 
187.13 	recommendations on (1) prevention of diseases and exotic pests; (2) sanitary inspection 
187.14 	of apiaries, including notification of diseases, nuisances, and quarantines; (3) an apiary 
187.15 	location registry, to facilitate agency response to pollinator deaths or illnesses and for 
187.16 	pesticide applicators to be aware of apiaries to avoid impacts, including data practices 
187.17 	and privacy protections; and (4) the public benefit of an apiary program and the fiscal 
187.18 	costs associated with a program.

187.19 	Sec. 44. INVASIVE TERRESTRIAL PLANTS AND PESTS CENTER.
 187.20 		Subdivision 1.Establishment. The Board of Regents of the University of Minnesota 
187.21 	is requested to establish an Invasive Terrestrial Plants and Pests Center to prevent and 
187.22 	minimize the threats posed by terrestrial invasive plants, other weeds, pathogens, and 
187.23 	pests in order to protect the state's prairies, forests, wetlands, and agricultural resources. 
187.24 	With the approval of the board, the College of Food, Agricultural and Natural Resource 
187.25 	Science, in coordination with the College of Biological Sciences, shall administer the 
187.26 	center utilizing the following departments:
187.27 	(1) Entomology;
187.28 	(2) Plant Pathology;
187.29 	(3) Forest Resources;
187.30 	(4) Horticultural Science;
187.31 	(5) Fisheries Wildlife and Conservation Biology;
187.32 	(6) Agronomy and Plant Genetics;
188.1 	(7) Plant Biology; and
188.2 	(8) Ecology, Evolution, and Behavior.
188.3 	The college may also utilize the following research and outreach centers in 
188.4 	achieving the purposes of this section: Cloquet Forestry Center; North Central Research 
188.5 	and Outreach Center; Northwest Research and Outreach Center; Southern Research and 
188.6 	Outreach Center; Southwest Research and Outreach Center; West Central Research and 
188.7 	Outreach Center; Rosemount Research and Outreach Center; Horticultural Research 
188.8 	Center; and Sand Plain Research Center.
188.9 		Subd. 2.Purpose. The purpose of the Invasive Terrestrial Plants and Pests Center is 
188.10 	to research and develop effective measures to prevent and minimize the threats posed by 
188.11 	terrestrial invasive plants, pathogens, and pests, including agricultural weeds and pests, in 
188.12 	order to protect the state's native prairies, forests, wetlands, and agricultural resources, by:
188.13 	(1) creating a prioritized list of pest and plant species that threaten the state's prairies, 
188.14 	forests, wetlands, and agricultural resources and making the list publicly accessible; and
188.15 	(2) conducting research focused on the species included on the prioritized list 
188.16 	developed under this subdivision that includes:
188.17 	(i) development of new control methods, including biocontrols;
188.18 	(ii) development of integrated pest management tools that minimize nontarget 
188.19 	impacts;
188.20 	(iii) research projects focused on establishment prevention, early detection, and 
188.21 	rapid response;
188.22 	(iv) an analysis of any consequences related to the management of prioritized species 
188.23 	to the state's water, pollinators, and native prairies and other native species; and
188.24 	(v) reports on the results that are made publicly accessible.
188.25 		Subd. 3.Report. By January 15, 2015, as a condition of the appropriation provided 
188.26 	under this act, the Board of Regents of the University of Minnesota shall submit a report 
188.27 	to the chairs and ranking minority members of the house of representatives and senate 
188.28 	committees and divisions with jurisdiction over the environment and natural resources and 
188.29 	agriculture on: (1) the activities and outcomes of the center; and (2) any recommendations 
188.30 	for additional funding for education, implementation, or other activities.

188.31 	Sec. 45. RECOGNITION; COMMERCIAL BREEDER EXCELLENCE.
 188.32 	The Board of Animal Health, in consultation with representatives of the licensed 
188.33 	commercial breeder industry, must develop a program to recognize persons who 
189.1 	demonstrate commercial breeder excellence and exceed the standards and practices 
189.2 	required of commercial breeders under this act.

189.3 	Sec. 46. REGISTRATION; INITIAL PRELICENSE INSPECTIONS.
 189.4 		Subdivision 1.Commercial breeder registration. Beginning July 1, 2014, until 
189.5 	June 30, 2015, a commercial breeder must register each facility it owns or operates by 
189.6 	paying a registration fee not to exceed $250 per facility to the Board of Animal Health. 
189.7 		Subd. 2.Initial prelicense inspections. Beginning July 1, 2014, the board may 
189.8 	begin the initial prelicense inspections under Minnesota Statutes, section 347.58.
189.9 		Subd. 3.Deposits of fees. Fees collected under this section must be deposited in the 
189.10 	dog and cat breeders licensing account in the special revenue fund.

189.11 	Sec. 47. RESEARCH DOGS AND CATS.
 189.12 	(a) A higher education research facility that receives public money or a facility that 
189.13 	provides research in collaboration with a higher education facility that confines dogs or 
189.14 	cats for science, education, or research purposes and plans on euthanizing a dog or cat 
189.15 	for other than science, education, or research purposes must first offer the dog or cat 
189.16 	to an animal rescue organization. A facility that is required to offer dogs or cats to an 
189.17 	animal rescue organization under this section may enter into an agreement with the animal 
189.18 	rescue organization to protect the facility. A facility that provides a dog or cat to a rescue 
189.19 	organization under this section is immune from any civil liability that otherwise might 
189.20 	result from its actions, provided that the facility is acting in good faith.
189.21 	(b) For the purposes of this section, "animal rescue organization" means any 
189.22 	nonprofit organization incorporated for the purpose of rescuing animals in need and 
189.23 	finding permanent, adoptive homes for the animals.
189.24 	(c) This section expires July 1, 2015.

189.25 	Sec. 48.  REPEALER.
 189.26 	Minnesota Statutes 2012, section 115A.551, subdivision 2, is repealed.

189.27 	ARTICLE 14
189.28 	CLEAN WATER FUND

189.29	Section 1. CLEAN WATER FUND APPROPRIATIONS.
 	
189.30 	The sums shown in the columns marked "Appropriations" are appropriated to the 
189.31 	agencies and for the purposes specified in this article. The appropriations are from the 
189.32 	clean water fund and are available for the fiscal year indicated for allowable activities 
190.1 	under the Minnesota Constitution, article XI, section 15. The figure "2015" used in this 
190.2 	article means that the appropriations listed under it are available for the fiscal year ending 
190.3 	June 30, 2015. The appropriations in this article are onetime.

190.4				APPROPRIATIONS
	
190.5				Available for the Year
	
190.6				Ending June 30
	
190.7							2015

190.8	Sec. 2. CLEAN WATER

190.9	Subdivision 1.Total Appropriation
 			$
	2,450,000
	
190.10 	The amounts that may be spent for each 
190.11 	purpose are specified in the following 
190.12 	sections.

190.13	Subd. 2.Availability of Appropriation
 					
190.14 	Money appropriated in this article may 
190.15 	not be spent on activities unless they are 
190.16 	directly related to and necessary for a 
190.17 	specific appropriation. Money appropriated 
190.18 	in this article must be spent in accordance 
190.19 	with Minnesota Management and Budget's 
190.20 	Guidance to Agencies on Legacy Fund 
190.21 	Expenditure. Notwithstanding Minnesota 
190.22 	Statutes, section 16A.28, and unless 
190.23 	otherwise specified in this article, the 
190.24 	appropriations are available until June 30, 
190.25 	2016. If a project receives federal funds, the 
190.26 	time period of the appropriation is extended 
190.27 	to equal the availability of federal funding.

190.28	Sec. 3. POLLUTION CONTROL AGENCY
 			$
	200,000
	
190.29 	$200,000 in 2015 is for coordination with 
190.30 	the state of Wisconsin and the National 
190.31 	Park Service on comprehensive phosphorus 
190.32 	reduction activities in the Lake St. Croix 
190.33 	portion of the St. Croix River. The agency 
190.34 	shall work with the St. Croix Basin Water 
191.1 	Resources Planning Team and the St. Croix 
191.2 	River Association in implementing the 
191.3 	water monitoring and phosphorus reduction 
191.4 	activities.

191.5
191.6	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 			$
	1,400,000
	
191.7 	$150,000 in 2015 is to collaborate with the 
191.8 	commissioner of health and local units of 
191.9 	government in the North and East Metro 
191.10 	Groundwater Management Area through 
191.11 	development or implementation of local 
191.12 	water management plans as provided for in 
191.13 	Minnesota Statutes, chapters 103B, 103C, 
191.14 	103D, and 114D, to identify strategies 
191.15 	for groundwater protection and potential 
191.16 	locations for infiltration projects and 
191.17 	practices, including potential wetland 
191.18 	restoration, enhancement, or creation that  
191.19 	would contribute to groundwater recharge, 
191.20 	surface water enhancement, and wellhead 
191.21 	protection. Areas in the Mississippi River 
191.22 	flyway, or that also provide habitat for 
191.23 	waterfowl production, fish spawning, or 
191.24 	other fish or wildlife habitat, should be 
191.25 	specifically identified. This appropriation is 
191.26 	available until June 30, 2017.
191.27 	$250,000 in 2015 is to collaborate with 
191.28 	the commissioner of health and local units 
191.29 	of government in the Bonanza Valley 
191.30 	Groundwater Management Area and Straight 
191.31 	River Groundwater Management Area 
191.32 	through development or implementation 
191.33 	of local water management plans as 
191.34 	provided for in Minnesota Statutes, chapters 
191.35 	103B, 103C, 103D, and 114D, to identify 
192.1 	strategies for groundwater protection and 
192.2 	potential locations for infiltration projects 
192.3 	and practices, including potential wetland 
192.4 	restoration, enhancement, or creation that  
192.5 	would contribute to groundwater recharge 
192.6 	and wellhead protection. Areas in the 
192.7 	Mississippi River flyway, or that also provide 
192.8 	habitat for waterfowl production, fish 
192.9 	spawning, or other fish or wildlife habitat, 
192.10 	should be specifically identified. This 
192.11 	appropriation is available until June 30, 2017.
192.12 	$100,000 in 2015 is for a workshop for public 
192.13 	works professionals or other local officials 
192.14 	that promote landscape best management 
192.15 	practices that keep water on the land, 
192.16 	including rain gardens, within the North and 
192.17 	East Metro Groundwater Management Area 
192.18 	and for grants to local units of government 
192.19 	in the North and East Metro Groundwater 
192.20 	Management Area to keep water on the land.
192.21 	$900,000 in 2015 is added to the 
192.22 	appropriation to the Board of Water and Soil 
192.23 	Resources for grants in Laws 2013, chapter 
192.24 	137, article 2, section 7, paragraph (b).
192.25 	The board may use the appropriation to 
192.26 	update the Minnesota Public Drainage 
192.27 	Manual and the Minnesota Public Drainage 
192.28 	Law Overview for Decision Makers in 
192.29 	Laws 2013, chapter 137, article 2, section 
192.30 	7, paragraph (e), for contracts or grants to 
192.31 	achieve the purposes of the appropriation. 

192.32	Sec. 5. METROPOLITAN COUNCIL
 			$
	550,000
	
192.33 	$400,000 in 2015 from the clean water fund 
192.34 	is to develop a plan for the North and East 
193.1 	Metro Groundwater Management Area and 
193.2 	to predesign preferred long-term solutions 
193.3 	to address regional water supply and 
193.4 	sustainability issues, including enhancing 
193.5 	surface waters, in collaboration with the 
193.6 	commissioner of natural resources. The plan, 
193.7 	incorporating standard engineering practices, 
193.8 	must address construction, operation, and 
193.9 	maintenance of infrastructure needed to 
193.10 	implement the preferred solutions and, 
193.11 	in consultation with the Public Facilities 
193.12 	Authority, include recommendations for 
193.13 	funding that would fairly allocate the costs 
193.14 	to users and other beneficiaries. As the 
193.15 	plan is developed, the council must meet 
193.16 	periodically with the local water supply work 
193.17 	group to review details of the plan. This 
193.18 	appropriation is available until June 30, 2015.
193.19 	$100,000 in 2015 from the clean water fund 
193.20 	is to investigate, in collaboration with the 
193.21 	Board of Water and Soil Resources and the 
193.22 	Pollution Control Agency, the feasibility 
193.23 	of collecting and treating storm water in 
193.24 	the North and East Metro Groundwater 
193.25 	Management Area to enhance surface waters 
193.26 	and groundwater recharge.
193.27 	$50,000 in 2015 from the clean water fund is 
193.28 	to partner with the University of Minnesota's 
193.29 	Minnesota Technical Assistance Program 
193.30 	(MnTAP) to identify opportunities for 
193.31 	industrial water users to reduce or reuse their 
193.32 	water consumption within the North and East 
193.33 	Metro Groundwater Management Area.

193.34	Sec. 6. DEPARTMENT OF HEALTH
 			$
	300,000
	
194.1 	$300,000 in 2015 from the clean water 
194.2 	fund is to collaborate with the Board of 
194.3 	Water and Soil Resources and local units 
194.4 	of government in the North and East Metro 
194.5 	Groundwater Management Area, Bonanza 
194.6 	Valley Groundwater Management Area, and 
194.7 	Straight River Groundwater Management 
194.8 	Area and to update wellhead protection areas 
194.9 	within groundwater management areas, in 
194.10 	cooperation with the Board of Water and 
194.11 	Soil Resources, to meet the sustainability 
194.12 	standards of Minnesota Statutes, chapter 
194.13 	103G, including Minnesota Statutes, section 
194.14 	103G.287, subdivision 5, and to be available 
194.15 	for the requirements of Minnesota Statutes, 
194.16 	chapter 103H. The update should identify the 
194.17 	most critical areas that need protecting.

194.18 	Sec. 7. REPURPOSE OF 2011 APPROPRIATION.
 194.19 	The remaining balance of the appropriation in Laws 2011, First Special Session 
194.20 	chapter 6, article 2, section 6, paragraph (g), to the commissioner of natural resources 
194.21 	for shoreland stewardship, TMDL implementation coordination, providing technical 
194.22 	assistance, and maintaining and updating data may be used for stream flow and 
194.23 	groundwater monitoring, including the installation of additional monitoring gauges, and 
194.24 	monitoring necessary to determine the relationship between stream flow and groundwater, 
194.25 	and is available until June 30, 2015.

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

194.27 	Sec. 8. CANCELLATION OF 2009 APPROPRIATION.
 194.28 	The unspent balance of the appropriation to the commissioner of the Pollution 
194.29 	Control Agency for grants under Minnesota Statutes, section 116.195, in Laws 2009, 
194.30 	chapter 172, article 2, section 4, paragraph (c), as amended by Laws 2011, First Special 
194.31 	Session chapter 6, article 2, section 23, is canceled.

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

195.1 	Sec. 9. STREAM GAUGE DATA.
 195.2 	The commissioner of natural resources shall provide an easily accessible link to the 
195.3 	Department of Natural Resources' and the Pollution Control Agency's cooperative stream 
195.4 	gauging data, including lake level information for existing stations, including White Bear 
195.5 	Lake and Turtle Lake, on the department's Web site.

195.6 	ARTICLE 15
195.7 	GENERAL EDUCATION

195.8 	Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
195.9 		Subd. 2.Reserve revenue. Each district that is a member of an area learning center 
195.10 	or alternative learning program must reserve revenue in an amount equal to the sum of 
195.11 	(1) at least 90 and no more than 100 percent of the district average general education 
195.12 	revenue per adjusted pupil unit minus an amount equal to the product of the formula 
195.13 	allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated 
195.14 	without basic skills revenue, local optional revenue, and transportation sparsity revenue, 
195.15 	times the number of pupil units attending an area learning center or alternative learning 
195.16 	program under this section, plus (2) the amount of basic skills revenue generated by pupils 
195.17 	attending the area learning center or alternative learning program. The amount of reserved 
195.18 	revenue under this subdivision may only be spent on program costs associated with the 
195.19 	area learning center or alternative learning program.

195.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
195.21 	and later.

195.22 	Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is 
195.23 	amended to read:
195.24 		Subd. 5.Levy recognition.  For fiscal year 2011 2014 and later years, in June of 
195.25 	each year, the school district must recognize as revenue, in the fund for which the levy 
195.26 	was made, the lesser of:
195.27 	(1) the sum of May, June, and July school district tax settlement revenue received in 
195.28 	that calendar year, plus general education aid according to section 126C.13, subdivision 
195.29 	4, received in July and August of that calendar year; or
195.30 	(2) the sum of:
195.31 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
195.32 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
195.33 	according to section 126C.17 in calendar year 2000; plus
196.1 	(ii) the entire amount of the levy certified in the prior calendar year according 
196.2 	to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue 
196.3 	under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special 
196.4 	School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and 
196.5 	Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a), 
196.6 	and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
196.7 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
196.8 	school district's general and community service funds, plus or minus auditor's adjustments, 
196.9 	that remains after subtracting the referendum levy certified according to section 126C.17 
196.10 	and the amount recognized according to item (ii).

196.11 	Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
196.12 		Subd. 9.Enrollment priority. (a) A postsecondary institution shall give priority to 
196.13 	its postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 
196.14 	A postsecondary institution may provide information about its programs to a secondary 
196.15 	school or to a pupil or parent and it may advertise or otherwise recruit or solicit a secondary 
196.16 	pupil to enroll in its programs on educational and programmatic grounds only except, 
196.17 	notwithstanding other law to the contrary, and for the 2014-2015 through 2019-2020 
196.18 	school years only, an eligible postsecondary institution may advertise or otherwise recruit 
196.19 	or solicit a secondary pupil residing in a school district with 700 students or more in 
196.20 	grades 10, 11, and 12, to enroll in its programs on educational, programmatic, or financial 
196.21 	grounds. An institution must not enroll secondary pupils, for postsecondary enrollment 
196.22 	options purposes, in remedial, developmental, or other courses that are not college level
196.23 	 except when a student eligible to participate in the graduation incentives program under 
196.24 	section 124D.68 enrolls full time in a middle or early college program specifically 
196.25 	designed to allow the student to earn dual high school and college credit. In this case, the 
196.26 	student shall receive developmental college credit and not college credit for completing 
196.27 	remedial or developmental courses. Once a pupil has been enrolled in a any postsecondary 
196.28 	course under this section, the pupil shall not be displaced by another student.
196.29 	(b) If a postsecondary institution enrolls a secondary school pupil in a course 
196.30 	under this section, the postsecondary institution also must enroll in the same course an 
196.31 	otherwise enrolled and qualified postsecondary student who qualifies as a veteran under 
196.32 	section 197.447, and demonstrates to the postsecondary institution's satisfaction that the 
196.33 	institution's established enrollment timelines were not practicable for that student.

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

197.1 	Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
197.2 		Subd. 13.Financial arrangements. For a pupil enrolled in a course under this 
197.3 	section, the department must make payments according to this subdivision for courses that 
197.4 	were taken for secondary credit.
197.5 	The department must not make payments to a school district or postsecondary 
197.6 	institution for a course taken for postsecondary credit only. The department must not 
197.7 	make payments to a postsecondary institution for a course from which a student officially 
197.8 	withdraws during the first 14 days of the quarter or semester or who has been absent from 
197.9 	the postsecondary institution for the first 15 consecutive school days of the quarter or 
197.10 	semester and is not receiving instruction in the home or hospital.
197.11 	A postsecondary institution shall receive the following:
197.12 	(1) for an institution granting quarter credit, the reimbursement per credit hour shall 
197.13 	be an amount equal to 88 percent of the product of the formula allowance minus $415
197.14 	 $425, multiplied by 1.3 1.2, and divided by 45; or
197.15 	(2) for an institution granting semester credit, the reimbursement per credit hour 
197.16 	shall be an amount equal to 88 percent of the product of the general revenue formula 
197.17 	allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
197.18 	The department must pay to each postsecondary institution 100 percent of the 
197.19 	amount in clause (1) or (2) within 30 days of receiving initial enrollment information 
197.20 	each quarter or semester. If changes in enrollment occur during a quarter or semester, 
197.21 	the change shall be reported by the postsecondary institution at the time the enrollment 
197.22 	information for the succeeding quarter or semester is submitted. At any time the 
197.23 	department notifies a postsecondary institution that an overpayment has been made, the 
197.24 	institution shall promptly remit the amount due.

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

197.26 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is 
197.27 	amended to read:
197.28 		Subdivision 1.General education revenue.  General education revenue must be 
197.29 	paid to a charter school as though it were a district. The general education revenue 
197.30 	for each adjusted pupil unit is the state average general education revenue per pupil 
197.31 	unit, plus the referendum equalization aid allowance in the pupil's district of residence, 
197.32 	minus an amount equal to the product of the formula allowance according to section 
197.33 	126C.10, subdivision 2, times .0466, calculated without declining enrollment revenue, 
197.34 	local optional revenue, basic skills revenue, extended time revenue, pension adjustment 
197.35 	revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment 
198.1 	revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and 
198.2 	transition revenue as though the school were a school district. The general education 
198.3 	revenue for each extended time pupil unit equals $4,794.

198.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
198.5 	and later.

198.6 	Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
198.7 		Subd. 2.English learner. (a) "English learner" means a pupil in kindergarten 
198.8 	through grade 12 who meets the following requirements:
198.9 	(1) the pupil, as declared by a parent or guardian first learned a language other than 
198.10 	English, comes from a home where the language usually spoken is other than English, or 
198.11 	usually speaks a language other than English; and
198.12 	(2) the pupil is determined by a valid assessment measuring the pupil's English 
198.13 	language proficiency and by developmentally appropriate measures, which might include 
198.14 	observations, teacher judgment, parent recommendations, or developmentally appropriate 
198.15 	assessment instruments, to lack the necessary English skills to participate fully in 
198.16 	academic classes taught in English.
198.17 	(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school 
198.18 	in grades any grade 4 through 12 who was enrolled in a Minnesota public school on 
198.19 	the dates during in the previous school year when a commissioner provided took a 
198.20 	commissioner-provided assessment that measures measuring the pupil's emerging 
198.21 	academic English was administered, shall not be counted as an English learner in 
198.22 	calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
198.23 	 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil 
198.24 	scored below the state cutoff score or is otherwise counted as a nonproficient participant 
198.25 	on an the assessment measuring the pupil's emerging academic English provided by the 
198.26 	commissioner during the previous school year, or, in the judgment of the pupil's classroom 
198.27 	teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate 
198.28 	academic language proficiency in English, including oral academic language, sufficient to 
198.29 	successfully and fully participate in the general core curriculum in the regular classroom.
198.30 	(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 
198.31 	12 shall not be counted as an English learner in calculating English learner pupil units 
198.32 	under section 126C.05, subdivision 17, and shall not generate state English learner aid 
198.33 	under section 124D.65, subdivision 5, if:
198.34 	(1) the pupil is not enrolled during the current fiscal year in an educational program 
198.35 	for English learners in accordance with under sections 124D.58 to 124D.64; or
199.1 	(2) the pupil has generated five six  or more years of average daily membership in 
199.2 	Minnesota public schools since July 1, 1996.

199.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
199.4 	and later.

199.5 	Sec. 7. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
199.6 		Subdivision 1.Approved recovery program. "Approved recovery program" means 
199.7 	a course of instruction offered by a recovery school that provides academic services, 
199.8 	assistance with recovery, and continuing care to students recovering from substance abuse 
199.9 	or dependency. A recovery program may be offered in a transitional academic setting 
199.10 	designed to meet graduation requirements. A recovery program must be approved by the 
199.11 	commissioner of education. The commissioner may specify the manner and form of the 
199.12 	application for the approval of a recovery school or recovery program.
199.13 		Subd. 2. Eligibility. An approved recovery program is eligible for an annual 
199.14 	recovery program grant of up to $125,000 to pay for a portion of the costs of recovery 
199.15 	program support staff under this section. "Recovery program support staff" means licensed 
199.16 	alcohol and chemical dependency counselors, licensed school counselors, licensed school 
199.17 	psychologists, licensed school nurses, and licensed school social workers.

199.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
199.19 	and later.

199.20 	Sec. 8. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is 
199.21 	amended to read:
199.22 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
199.23 	year program under section 124D.128, an area learning center or an alternative learning 
199.24 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
199.25 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
199.26 	subdivision 4, for more than 1,020 hours in a school year for a secondary student, more 
199.27 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
199.28 	year for a kindergarten student without a disability in an all-day kindergarten program, 
199.29 	or more than 425 hours in a school year for a half-day kindergarten student without a 
199.30 	disability, that pupil may be counted as more than one pupil in average daily membership 
199.31 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
199.32 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
199.33 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
200.1 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
200.2 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
200.3 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the 
200.4 	number of hours required for a full-time kindergarten student without a disability in the 
200.5 	district to 425 850 for a kindergarten student without a disability; and (iv) the greater of 
200.6 	425 hours or the number of hours required for a half-time kindergarten student without a 
200.7 	disability in the district to 425 for a half-day kindergarten student without a disability. 
200.8 	Hours that occur after the close of the instructional year in June shall be attributable to 
200.9 	the following fiscal year. A student in kindergarten or grades 1 through 12 must not be 
200.10 	counted as more than 1.2 pupils in average daily membership under this subdivision.
200.11 	(b)(i) To receive general education revenue for a pupil in an area learning center or 
200.12 	alternative learning program that has an independent study component, a district must meet 
200.13 	the requirements in this paragraph. The district must develop, for the pupil, a continual 
200.14 	learning plan consistent with section 124D.128, subdivision 3. Each school district that has 
200.15 	an area learning center or alternative learning program must reserve revenue in an amount 
200.16 	equal to at least 90 and not more than 100 percent of the district average general education 
200.17 	revenue per pupil unit, minus an amount equal to the product of the formula allowance 
200.18 	according to section 126C.10, subdivision 2, times .0466, calculated without basic skills 
200.19 	revenue, local optional revenue, and transportation sparsity revenue, times the number of 
200.20 	pupil units generated by students attending an area learning center or alternative learning 
200.21 	program. The amount of reserved revenue available under this subdivision may only be 
200.22 	spent for program costs associated with the area learning center or alternative learning 
200.23 	program. Basic skills revenue generated according to section 126C.10, subdivision 4, by 
200.24 	pupils attending the eligible program must be allocated to the program.
200.25 	(ii) General education revenue for a pupil in a state-approved alternative program 
200.26 	without an independent study component must be prorated for a pupil participating for less 
200.27 	than a full year, or its equivalent. The district must develop a continual learning plan for 
200.28 	the pupil, consistent with section 124D.128, subdivision 3. Each school district that has an 
200.29 	area learning center or alternative learning program must reserve revenue in an amount 
200.30 	equal to at least 90 and not more than 100 percent of the district average general education 
200.31 	revenue per pupil unit, minus an amount equal to the product of the formula allowance 
200.32 	according to section 126C.10, subdivision 2, times .0466, calculated without basic skills 
200.33 	revenue, local optional revenue, and transportation sparsity revenue, times the number of 
200.34 	pupil units generated by students attending an area learning center or alternative learning 
200.35 	program. The amount of reserved revenue available under this subdivision may only be 
200.36 	spent for program costs associated with the area learning center or alternative learning 
201.1 	program. Basic skills revenue generated according to section 126C.10, subdivision 4, by 
201.2 	pupils attending the eligible program must be allocated to the program.
201.3 	(iii) General education revenue for a pupil in a state-approved alternative program 
201.4 	that has an independent study component must be paid for each hour of teacher contact 
201.5 	time and each hour of independent study time completed toward a credit or graduation 
201.6 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
201.7 	number of hours of teacher contact time and independent study time divided by 1,020.
201.8 	(iv) For a state-approved alternative program having an independent study 
201.9 	component, the commissioner shall require a description of the courses in the program, the 
201.10 	kinds of independent study involved, the expected learning outcomes of the courses, and 
201.11 	the means of measuring student performance against the expected outcomes.

201.12 	Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is 
201.13 	amended to read:
201.14 		Subd. 2.Basic revenue. For fiscal year 2014, the basic revenue for each district 
201.15 	equals the formula allowance times the adjusted marginal cost pupil units for the school 
201.16 	year. For fiscal year 2015 and later, the basic revenue for each district equals the formula 
201.17 	allowance times the adjusted pupil units for the school year. The formula allowance for 
201.18 	fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The 
201.19 	formula allowance for fiscal year 2015 and later is $5,806 $5,831.

201.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
201.21 	and later.

201.22 	Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, 
201.23 	is amended to read:
201.24 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue for 
201.25 	fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal 
201.26 	cost pupil units of the district for each pupil in average daily membership in excess of 1.0 
201.27 	and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended 
201.28 	time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum 
201.29 	of the adjusted pupil units of the district for each pupil in average daily membership in 
201.30 	excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
201.31 	(b) A school district's extended time revenue may be used for extended day 
201.32 	programs, extended week programs, summer school, and other programming authorized 
201.33 	under the learning year program.

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

202.3 	Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2c, 
202.4 	is amended to read:
202.5 		Subd. 2c.Small schools revenue. (a) A school district, not including a charter 
202.6 	school, is eligible for small schools revenue equal to the greater of the calculation under 
202.7 	paragraph (b) or (d).
202.8 	(b) The product of:
202.9 	(1) $544;
202.10 	(2) the district's adjusted pupil units for that year; and
202.11 	(3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units 
202.12 	for that year, to (ii) 960.
202.13 	(c) For the purpose of revenue calculated under paragraph (d), "district" includes a 
202.14 	qualifying high school under subdivision 6 that is located in a district with more than one 
202.15 	qualifying high school under subdivision 6 at least two high schools.
202.16 	(d) The product of:
202.17 	(1) $544;
202.18 	(2) the district's adjusted pupil units for that year; and
202.19 	(3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units 
202.20 	for that year, to (ii) 960.

202.21 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
202.22 	later.

202.23 	Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, 
202.24 	is amended to read:
202.25 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
202.26 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
202.27 	revenue, and referendum revenue is less than the value of the school district at or 
202.28 	immediately above the 95th percentile of school districts in its equity region for those 
202.29 	revenue categories; and
202.30 	(2) the school district's administrative offices are not located in a city of the first 
202.31 	class on July 1, 1999.
202.32 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
202.33 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
203.1 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
203.2 	equity index computed under subdivision 27.
203.3 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
203.4 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
203.5 	units for that year times $14.
203.6 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
203.7 	equal to the district's resident adjusted pupil units times the difference between ten percent 
203.8 	of the statewide average amount of referendum revenue per resident adjusted pupil unit for 
203.9 	that year and the district's referendum revenue per resident adjusted pupil unit. A school 
203.10 	district's revenue under this paragraph must not exceed $100,000 for that year.
203.11 	(e) A school district's equity revenue for a school district located in the metro equity 
203.12 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
203.13 	(f) A school district's additional equity revenue equals $50 times its adjusted pupil 
203.14 	units.

203.15 	EFFECTIVE DATE. The changes in paragraph (d) are effective for revenue for 
203.16 	fiscal year 2015 and later.

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

203.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
203.24 	and later.

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

203.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
203.31 	and later.

204.1 	Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, 
204.2 	is amended to read:
204.3 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
204.4 	sum of the transition revenue the district would have received for fiscal year 2015 under 
204.5 	Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater 
204.6 	of zero or the difference between:
204.7 	(1) the sum of:
204.8 	(i) the general education revenue the district would have received for fiscal year 
204.9 	2015 according to Minnesota Statutes 2012, section 126C.10;
204.10 	(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 
204.11 	Statutes 2012, section 124D.86;
204.12 	(iii) the pension adjustment the district would have received for fiscal year 2015 
204.13 	under Minnesota Statutes 2012, section 127A.50;
204.14 	(iv) the special education aid the district would have received for fiscal year 2015 
204.15 	under Minnesota Statutes 2012, section 125A.76; and
204.16 	(v) the special education excess cost aid the district would have received for fiscal 
204.17 	year 2015 under Minnesota Statutes 2012, section 125A.79; and
204.18 	(2) the sum of the district's:
204.19 	(i) general education revenue for fiscal year 2015 excluding transition revenue 
204.20 	under this section;
204.21 	(ii) achievement and integration revenue for fiscal year 2015 under section 
204.22 	124D.862; and
204.23 	(iii) special education aid for fiscal year 2015 under section 125A.76; and
204.24 	(iv) alternative teacher compensation revenue for fiscal year 2015 under section 
204.25 	122A.415,
204.26 	divided by the number of adjusted pupil units for fiscal year 2015.
204.27 	(b) A district's transition revenue for fiscal year 2015 and later equals the product of 
204.28 	the district's transition allowance times the district's adjusted pupil units.

204.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
204.30 	and later.

204.31 	Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is 
204.32 	amended to read:
204.33 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
204.34 	 A district's referendum equalization levy equals the sum of the first tier referendum 
205.1 	equalization levy, the second tier referendum equalization levy, and the third tier 
205.2 	referendum equalization levy.
205.3 	(b) A district's first tier referendum equalization levy equals the district's first tier 
205.4 	referendum equalization revenue times the lesser of one or the ratio of the district's 
205.5 	referendum market value per resident pupil unit to $880,000.
205.6 	(c) A district's second tier referendum equalization levy equals the district's second 
205.7 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
205.8 	referendum market value per resident pupil unit to $510,000.
205.9 	(d) A district's third tier referendum equalization levy equals the district's third 
205.10 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
205.11 	referendum market value per resident pupil unit to $290,000.

205.12 	Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, 
205.13 	is amended to read:
205.14 		Subd. 7b.Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum 
205.15 	of a district's referendum equalization aid and location equity aid under section 126C.10, 
205.16 	subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum 
205.17 	equalization aid the district would have received for fiscal year 2015 under Minnesota 
205.18 	Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have 
205.19 	received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs 
205.20 	(a), (b), and (c).
205.21 	(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and 
205.22 	location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, 
205.23 	for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must 
205.24 	not be less than the product of (1) the district's referendum equalization aid for fiscal year 
205.25 	2015, times (2) the lesser of one or the ratio of the district's referendum revenue for that 
205.26 	school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser 
205.27 	of one or the ratio of the district's referendum market value used for fiscal year 2015 
205.28 	referendum equalization calculations to the district's referendum market value used for 
205.29 	that year's referendum equalization calculations.

205.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
205.31 	and later.

205.32 	Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is 
205.33 	amended to read:
206.1 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
206.2 	subdivision 1, may be increased in the amount approved by the voters of the district 
206.3 	at a referendum called for the purpose. The referendum may be called by the board. 
206.4 	The referendum must be conducted one or two calendar years before the increased levy 
206.5 	authority, if approved, first becomes payable. Only one election to approve an increase 
206.6 	may be held in a calendar year. Unless the referendum is conducted by mail under 
206.7 	subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 
206.8 	first Monday in November. The ballot must state the maximum amount of the increased 
206.9 	revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, 
206.10 	of increased revenue per adjusted pupil unit that differs from year to year over the number 
206.11 	of years for which the increased revenue is authorized or may state that the amount shall 
206.12 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
206.13 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
206.14 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
206.15 	compare the proposed levy authority to the existing expiring levy authority, and express 
206.16 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
206.17 	The ballot must designate the specific number of years, not to exceed ten, for which the 
206.18 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
206.19 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
206.20 	"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may 
206.21 	be modified to read, in cases of renewing existing levies at the same amount per pupil 
206.22 	as in the previous year:
206.23 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
206.24 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
206.25 	SCHEDULED TO EXPIRE."
206.26 	The ballot may contain a textual portion with the information required in this 
206.27 	subdivision and a question stating substantially the following:
206.28 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
206.29 	School District No. .., be approved?"
206.30 	If approved, an amount equal to the approved revenue per adjusted pupil unit times 
206.31 	the adjusted pupil units for the school year beginning in the year after the levy is certified 
206.32 	shall be authorized for certification for the number of years approved, if applicable, or 
206.33 	until revoked or reduced by the voters of the district at a subsequent referendum.
206.34 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
206.35 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
206.36 	and the proposed revenue increase. The board need not mail more than one notice to any 
207.1 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
207.2 	those shown to be owners on the records of the county auditor or, in any county where 
207.3 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
207.4 	Every property owner whose name does not appear on the records of the county auditor 
207.5 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
207.6 	has requested in writing that the county auditor or county treasurer, as the case may be, 
207.7 	include the name on the records for this purpose. The notice must project the anticipated 
207.8 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
207.9 	homesteads, apartments, and commercial-industrial property within the school district.
207.10 	The notice for a referendum may state that an existing referendum levy is expiring 
207.11 	and project the anticipated amount of increase over the existing referendum levy in 
207.12 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
207.13 	homesteads, apartments, and commercial-industrial property within the district.
207.14 	The notice must include the following statement: "Passage of this referendum will 
207.15 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
207.16 	the notice may include the following statement: "Passage of this referendum extends an 
207.17 	existing operating referendum at the same amount per pupil as in the previous year."
207.18 	(c) A referendum on the question of revoking or reducing the increased revenue 
207.19 	amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 
207.20 	revoke or reduce the revenue amount must state the amount per resident marginal cost
207.21 	 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved 
207.22 	by the voters of the district pursuant to paragraph (a) must be available to the school 
207.23 	district at least once before it is subject to a referendum on its revocation or reduction for 
207.24 	subsequent years. Only one revocation or reduction referendum may be held to revoke or 
207.25 	reduce referendum revenue for any specific year and for years thereafter.
207.26 	(d) The approval of 50 percent plus one of those voting on the question is required to 
207.27 	pass a referendum authorized by this subdivision.
207.28 	(e) At least 15 days before the day of the referendum, the district must submit a 
207.29 	copy of the notice required under paragraph (b) to the commissioner and to the county 
207.30 	auditor of each county in which the district is located. Within 15 days after the results 
207.31 	of the referendum have been certified by the board, or in the case of a recount, the 
207.32 	certification of the results of the recount by the canvassing board, the district must notify 
207.33 	the commissioner of the results of the referendum.

207.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
207.35 	and later.

208.1 	Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, 
208.2 	is amended to read:
208.3 		Subd. 9a.Board-approved referendum allowance. Notwithstanding subdivision 
208.4 	9, a school district may convert up to $300 per adjusted pupil unit of referendum authority 
208.5 	from voter approved to board approved by a board vote. A district with less than $300 per 
208.6 	adjusted pupil unit of referendum authority after the local optional revenue subtraction 
208.7 	under subdivision 1 may authorize new referendum authority up to the difference between 
208.8 	$300 per adjusted pupil unit and the district's referendum authority. The board may 
208.9 	authorize this levy for up to five years and may subsequently reauthorize that authority 
208.10 	in increments of up to five years.

208.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
208.12 	and later.

208.13 	Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
208.14 	126C.44 SAFE SCHOOLS LEVY.
208.15 	(a) Each district may make a levy on all taxable property located within the district 
208.16 	for the purposes specified in this section. The maximum amount which may be levied for 
208.17 	all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil 
208.18 	units for the school year. The proceeds of the levy must be reserved and used for directly 
208.19 	funding the following purposes or for reimbursing the cities and counties who contract 
208.20 	with the district for the following purposes:
208.21 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
208.22 	peace officers and sheriffs for liaison in services in the district's schools;
208.23 	(2) to pay the costs for a drug abuse prevention program as defined in section 
208.24 	609.101, subdivision 3, paragraph (e), in the elementary schools;
208.25 	(3) to pay the costs for a gang resistance education training curriculum in the 
208.26 	district's schools;
208.27 	(4) to pay the costs for security in the district's schools and on school property;
208.28 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
208.29 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
208.30 	the school district;
208.31 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed 
208.32 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
208.33 	dependency counselors to help provide early responses to problems;
209.1 	(7) to pay for facility security enhancements including laminated glass, public 
209.2 	announcement systems, emergency communications devices, and equipment and facility 
209.3 	modifications related to violence prevention and facility security;
209.4 	(8) to pay for costs associated with improving the school climate; or
209.5 	(9) to pay costs for colocating and collaborating with mental health professionals 
209.6 	who are not district employees or contractors.
209.7 	(b) For expenditures under paragraph (a), clause (1), the district must initially 
209.8 	attempt to contract for services to be provided by peace officers or sheriffs with the 
209.9 	police department of each city or the sheriff's department of the county within the district 
209.10 	containing the school receiving the services. If a local police department or a county 
209.11 	sheriff's department does not wish to provide the necessary services, the district may 
209.12 	contract for these services with any other police or sheriff's department located entirely or 
209.13 	partially within the school district's boundaries.
209.14 	(c) A school district that is a member of an intermediate school district may 
209.15 	include in its authority under this section the costs associated with safe schools activities 
209.16 	authorized under paragraph (a) for intermediate school district programs. This authority 
209.17 	must not exceed $10 $15  times the adjusted marginal cost pupil units of the member 
209.18 	districts. This authority is in addition to any other authority authorized under this section. 
209.19 	Revenue raised under this paragraph must be transferred to the intermediate school district.

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

209.21 	Sec. 21. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
209.22 		Subd. 2.Definitions. (a) "Other district receipts" means payments by county 
209.23 	treasurers pursuant to section 276.10, apportionments from the school endowment fund 
209.24 	pursuant to section 127A.33, apportionments by the county auditor pursuant to section 
209.25 	127A.34, subdivision 2, and payments to school districts by the commissioner of revenue 
209.26 	pursuant to chapter 298.
209.27 	(b) "Cumulative amount guaranteed" means the product of
209.28 	(1) the cumulative disbursement percentage shown in subdivision 3; times
209.29 	(2) the sum of
209.30 	(i) the current year aid payment percentage of the estimated aid and credit 
209.31 	entitlements paid according to subdivision 13; plus
209.32 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
209.33 	(iii) the other district receipts.
209.34 	(c) "Payment date" means the date on which state payments to districts are made 
209.35 	by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 
210.1 	or a weekday which is a legal holiday, the payment shall be made on the immediately 
210.2 	preceding business day. The commissioner may make payments on dates other than 
210.3 	those listed in subdivision 3, but only for portions of payments from any preceding 
210.4 	payment dates which could not be processed by the electronic funds transfer method due 
210.5 	to documented extenuating circumstances.
210.6 	(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 
210.7 	fiscal year 2011, and 60in fiscal years 2012 and later 90.

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

210.15		Payment date
	Percentage
		
210.16	Payment 1
	July 15:
	5.5
		
210.17	Payment 2
	July 30:
	8.0
		
210.18	Payment 3
	August 15:
	17.5
		
210.19	Payment 4
	August 30:
	20.0
		
210.20	Payment 5
	September 15:
	22.5
		
210.21	Payment 6
	September 30:
	25.0
		
210.22	Payment 7
	October 15:
	27.0
		
210.23	Payment 8
	October 30:
	30.0
		
210.24	Payment 9
	November 15:
	32.5
		
210.25	Payment 10
	November 30:
	36.5
		
210.26	Payment 11
	December 15:
	42.0
		
210.27	Payment 12
	December 30:
	45.0
		
210.28	Payment 13
	January 15:
	50.0
		
210.29	Payment 14
	January 30:
	54.0
		
210.30	Payment 15
	February 15:
	58.0
		
210.31	Payment 16
	February 28:
	63.0
		
210.32	Payment 17
	March 15:
	68.0
		
210.33	Payment 18
	March 30:
	74.0
		
210.34	Payment 19
	April 15:
	78.0
		
210.35	Payment 20
	April 30:
	85.0
		
210.36	Payment 21
	May 15:
	90.0
		
210.37	Payment 22
	May 30:
	95.0
		
210.38	Payment 23
	June 20:
	100.0
		
211.1 	(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay 
211.2 	to a school district or charter school on the dates indicated an amount computed as follows:

211.3
211.4	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
211.5
211.6	Payment 4
	August 30: 30 percent of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
211.7
211.8	Payment 6
	September 30: 40 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
211.9211.10
	Payment 8
	October 30: 30 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
211.11 	(c) Notwithstanding paragraph (b), if the current year aid payment percentage 
211.12 	under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under 
211.13 	paragraph (a), the commissioner shall pay to a charter school on the dates indicated an 
211.14 	amount computed as follows:

211.15
211.16	Payment 1
	July 15: 75 percent of the final adjustment for the prior fiscal year for 
all aid entitlements
	
211.17
211.18	Payment 8
	October 30: 25 percent of the final adjustment for the prior fiscal year 
for all aid entitlements

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

211.20 	Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is 
211.21 	amended to read:
211.22 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
211.23 	special education aid for districts must be adjusted for each pupil attending a nonresident 
211.24 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
211.25 	adjustments must be made according to this subdivision.
211.26 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
211.27 	education and services" means the difference between: (1) the actual cost of providing 
211.28 	special instruction and services, including special transportation and unreimbursed 
211.29 	building lease and debt service costs for facilities used primarily for special education, for 
211.30 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
211.31 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
211.32 	receives special instruction and services outside the regular classroom for more than 
211.33 	60 percent of the school day, the amount of general education revenue and referendum 
211.34 	equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable 
211.35 	to that pupil for the portion of time the pupil receives special instruction and services 
211.36 	outside of the regular classroom, excluding portions attributable to district and school 
211.37 	administration, district support services, operations and maintenance, capital expenditures, 
212.1 	and pupil transportation, minus (3) special education aid under section 125A.76 
212.2 	attributable to that pupil, that is received by the district providing special instruction and 
212.3 	services. For purposes of this paragraph, general education revenue and referendum 
212.4 	equalization aid attributable to a pupil must be calculated using the serving district's 
212.5 	average general education revenue and referendum equalization aid per adjusted pupil unit.
212.6 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
212.7 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
212.8 	special education and services.
212.9 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
212.10 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
212.11 	education and services provided to students at an intermediate district, cooperative, or 
212.12 	charter school where the percent of students eligible for special education services is at 
212.13 	least 70 percent of the charter school's total enrollment.
212.14 	(e) Special education aid paid to the district or cooperative providing special 
212.15 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
212.16 	must be increased by the amount of the reduction in the aid paid to the resident district 
212.17 	under paragraphs (c) and (d). If the resident district's special education aid is insufficient 
212.18 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
212.19 	due to the district.
212.20 	(f) An area learning center operated by a service cooperative, intermediate district, 
212.21 	education district, or a joint powers cooperative may elect through the action of the 
212.22 	constituent boards to charge the resident district tuition for pupils rather than to have the 
212.23 	general education revenue paid to a fiscal agent school district. Except as provided in 
212.24 	paragraph (e), the district of residence must pay tuition equal to at least 90 and no more 
212.25 	than 100 percent of the district average general education revenue per pupil unit minus 
212.26 	an amount equal to the product of the formula allowance according to section 126C.10, 
212.27 	subdivision 2, times .0466, calculated without compensatory revenue, local optional 
212.28 	revenue, and transportation sparsity revenue, times the number of pupil units for pupils 
212.29 	attending the area learning center.

212.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
212.31 	and later.

212.32 	Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
212.33 	Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND 
212.34 	SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
 213.1 		Subdivision 1.Establishment; requirements for participation. (a) A five-year
213.2 	 pilot project for the 2013-2014 through 2017-2018 school years is established to improve 
213.3 	student and school outcomes by allowing groups of school districts to work together to 
213.4 	provide innovative education programs and activities and share district resources. The 
213.5 	pilot project may last until June 30, 2018, or for up to five years, whichever is less, except 
213.6 	that innovation partnerships formed during the period of the pilot project may continue 
213.7 	past June 30, 2018, with the agreement of the partnership members.
213.8 	(b) To participate in this pilot project to improve student and school outcomes, a 
213.9 	group of two or more school districts must collaborate with school staff and receive formal 
213.10 	school board approval to form a partnership. The partnership must develop a plan to 
213.11 	provide challenging programmatic options for students, create professional development 
213.12 	opportunities for educators, increase student engagement and connection and challenging 
213.13 	learning opportunities for students, or demonstrate efficiencies in delivering financial and 
213.14 	other services. The plan must establish:
213.15 	(1) collaborative educational goals and objectives;
213.16 	(2) strategies and processes to implement those goals and objectives, including a 
213.17 	budget process with periodic expenditure reviews;
213.18 	(3) valid and reliable measures to evaluate progress in realizing the goals and 
213.19 	objectives;
213.20 	(4) an implementation timeline; and
213.21 	(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee 
213.22 	schedules, and legal considerations needed to fully implement the plan.
213.23 	A partnership may invite additional districts to join the partnership during the pilot 
213.24 	project term after notifying the commissioner.
213.25 	(c) A partnership of interested districts must apply by February 1, 2013, of any year
213.26 	 to the education commissioner in the form and manner the commissioner determines, 
213.27 	consistent with this section. The application must contain the formal approval adopted by 
213.28 	the school board in each district to participate in the plan.
213.29 	(d) Notwithstanding other law to the contrary, a participating school district under 
213.30 	this section continues to: receive revenue and maintain its taxation authority; be organized 
213.31 	and governed by an elected school board with general powers under Minnesota Statutes, 
213.32 	section 123B.02; and be subject to employment agreements under Minnesota Statutes, 
213.33 	chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue 
213.34 	to remain employees of the employing school district.
213.35 		Subd. 2.Commissioner's role. Interested groups of school districts must submit 
213.36 	a completed application to the commissioner by March 1, 2013, of any year in the form 
214.1 	and manner determined by the commissioner. The education commissioner must convene 
214.2 	an advisory panel composed of a teacher appointed by Education Minnesota, a school 
214.3 	principal appointed by the Minnesota Association of Secondary School Principals, a 
214.4 	school board member appointed by the Minnesota School Boards Association, and a 
214.5 	school superintendent appointed by the Minnesota Association of School Administrators 
214.6 	to advise the commissioner on applicants' qualifications to participate in this pilot project. 
214.7 	The commissioner must select between three and may select up to six qualified applicants 
214.8 	under subdivision 1 by April 1, 2013, of any year to participate in this pilot project, 
214.9 	ensuring an equitable geographical distribution of project participants to the extent 
214.10 	practicable. The commissioner must select only those applicants that fully comply with 
214.11 	the requirements in subdivision 1. The commissioner must terminate a project participant 
214.12 	that fails to effectively implement the goals and objectives contained in its application and 
214.13 	according to its stated timeline.
214.14 		Subd. 3.Pilot project evaluation. Participating school districts must submit pilot 
214.15 	project data to the commissioner in the form and manner determined by the commissioner. 
214.16 	The education commissioner must analyze participating districts' progress in realizing 
214.17 	their educational goals and objectives to work together in providing innovative education 
214.18 	programs and activities and sharing resources. The commissioner must include the 
214.19 	analysis of best practices in a report to the legislative committees with jurisdiction over 
214.20 	kindergarten through grade 12 education finance and policy on the efficacy of this pilot 
214.21 	project. The commissioner may shall submit an interim project report at any time by 
214.22 	February 1, 2016, and must submit a final report to the legislature by February 1, 2018
214.23 	 2019, recommending whether or not to continue or expand the pilot project.

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

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

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

214.30
214.31		$
	6,051,766,000
6,851,419,000
	.....
	2014
	
214.32
214.33		$
	6,370,640,000
6,464,199,000
	.....
	2015
	
215.1 	The 2014 appropriation includes $781,842,000 $780,156,000 for 2013 and 
215.2 	$5,269,924,000 $6,071,263,000 for 2014.
215.3 	The 2015 appropriation includes $823,040,000 $589,095,000 for 2014 and 
215.4 	$5,547,600,000 $5,875,104,000 for 2015.

215.5 	Sec. 27. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
215.6 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
215.7 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

215.8
215.9		$
	15,582,000
15,867,000
	.....
	2014
	
215.10
215.11		$
	16,169,000
16,132,000
	.....
	2015
	
215.12 	The 2014 appropriation includes $2,099,000 $1,898,000 for 2013 and $13,483,000
215.13 	 $13,969,000 for 2014.
215.14 	The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
215.15 	 $14,580,000 for 2015.

215.16 	Sec. 28. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
215.17 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
215.18 	under Minnesota Statutes, section 123B.92, subdivision 9:

215.19
215.20		$
	18,565,000
18,500,000
	.....
	2014
	
215.21
215.22		$
	18,946,000
17,710,000
	.....
	2015
	
215.23 	The 2014 appropriation includes $2,668,000 $2,602,000 for 2013 and $15,897,000
215.24 	 $15,898,000 for 2014.
215.25 	The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
215.26 	 $15,944,000 for 2015.

215.27 	Sec. 29. APPROPRIATIONS.
 215.28 		Subdivision 1.Department of Education. The sums indicated in this section are 
215.29 	appropriated from the general fund to the Department of Education for the fiscal years 
215.30 	designated.
215.31 		Subd. 2.Recovery program grants. For recovery program grants under Minnesota 
215.32 	Statutes, section 124D.695:

215.33		$
	500,000
	.....
	2015

216.1 	Sec. 30. REVISOR'S INSTRUCTION.
 216.2 	In Minnesota Statutes, the revisor of statutes shall change the term "location equity" 
216.3 	to "local optional."

216.4 	Sec. 31.  REPEALER.
 216.5 	The amendments to Minnesota Statutes, section 124D.09, subdivision 9, made by 
216.6 	Laws 2014, chapter 272, article 3, section 32,  if enacted, are repealed the day following 
216.7 	final enactment.

216.8 	ARTICLE 16
216.9 	EDUCATION EXCELLENCE

216.10 	Section 1. Minnesota Statutes 2012, section 13.43, subdivision 16, is amended to read:
216.11 		Subd. 16.School district or charter school disclosure of violence or inappropriate 
216.12 	sexual contact. The superintendent of a school district or the superintendent's designee, 
216.13 	or a person having administrative control of a charter school, must release to a requesting 
216.14 	school district or charter school private personnel data on a current or former employee 
216.15 	related to acts of violence toward or sexual contact with a student, if:
216.16 	(1) an investigation conducted by or on behalf of the school district or law 
216.17 	enforcement affirmed the allegations in writing prior to release and the investigation 
216.18 	resulted in the resignation of the subject of the data; or
216.19 	(2) the employee resigned while a complaint or charge involving the allegations was 
216.20 	pending, the allegations involved acts of sexual contact with a student, and the employer 
216.21 	informed the employee in writing, before the employee resigned, that if the employee 
216.22 	resigns while the complaint or charge is still pending, the employer must release private 
216.23 	personnel data about the employee's alleged sexual contact with a student to a school district 
216.24 	or charter school requesting the data after the employee applies for employment with that 
216.25 	school district or charter school and the data remain classified as provided in chapter 13.
216.26 	Data that are released under this subdivision must not include data on the student.

216.27 	Sec. 2. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to read:
216.28 		Subd. 13.Immediate discharge. (a) Except as otherwise provided in paragraph 
216.29 	(b), a board may discharge a continuing-contract teacher, effective immediately, upon any 
216.30 	of the following grounds:
216.31 	(1) immoral conduct, insubordination, or conviction of a felony;
216.32 	(2) conduct unbecoming a teacher which requires the immediate removal of the 
216.33 	teacher from classroom or other duties;
217.1 	(3) failure without justifiable cause to teach without first securing the written release 
217.2 	of the school board;
217.3 	(4) gross inefficiency which the teacher has failed to correct after reasonable written 
217.4 	notice;
217.5 	(5) willful neglect of duty; or
217.6 	(6) continuing physical or mental disability subsequent to a 12 months leave of 
217.7 	absence and inability to qualify for reinstatement in accordance with subdivision 12.
217.8 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
217.9 	discriminatory practice described in section 363A.13.
217.10 	Prior to discharging a teacher under this paragraph, the board must notify the teacher 
217.11 	in writing and state its ground for the proposed discharge in reasonable detail. Within 
217.12 	ten days after receipt of this notification the teacher may make a written request for a 
217.13 	hearing before the board and it shall be granted before final action is taken. The board 
217.14 	may suspend a teacher with pay pending the conclusion of the hearing and determination 
217.15 	of the issues raised in the hearing after charges have been filed which constitute ground for 
217.16 	discharge. If a teacher has been charged with a felony and the underlying conduct that 
217.17 	is the subject of the felony charge is a ground for a proposed immediate discharge, the 
217.18 	suspension pending the conclusion of the hearing and determination of the issues may be 
217.19 	without pay. If a hearing under this paragraph is held, the board must reimburse the teacher 
217.20 	for any salary or compensation withheld if the final decision of the board or the arbitrator 
217.21 	does not result in a penalty to or suspension, termination, or discharge of the teacher.
217.22 	(b) A board must discharge a continuing-contract teacher, effective immediately, 
217.23 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
217.24 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
217.25 	(c) When a teacher is discharged under paragraph (b) or when the commissioner 
217.26 	makes a final determination of child maltreatment involving a teacher under section 
217.27 	626.556, subdivision 11, the school principal or other person having administrative 
217.28 	control of the school must include in the teacher's employment record the information 
217.29 	contained in the record of the disciplinary action or the final maltreatment determination, 
217.30 	consistent with the definition of public data under section 13.41, subdivision 5, and must 
217.31 	provide the Board of Teaching and the licensing division at the department with the 
217.32 	necessary and relevant information to enable the Board of Teaching and the department's 
217.33 	licensing division to fulfill their statutory and administrative duties related to issuing, 
217.34 	renewing, suspending, or revoking a teacher's license. Information received by the Board 
217.35 	of Teaching or the licensing division at the department under this paragraph is governed 
217.36 	by section 13.41 or other applicable law governing data of the receiving entity. In addition 
218.1 	to the background check required under section 123B.03, a school board or other school 
218.2 	hiring authority must contact the Board of Teaching and the department to determine 
218.3 	whether the teacher's license has been suspended or revoked, consistent with the discharge 
218.4 	and final maltreatment determinations identified in this paragraph. Unless restricted by 
218.5 	federal or state data practices law or by the terms of a collective bargaining agreement, 
218.6 	the responsible authority for a school district must disseminate to another school district 
218.7 	private personnel data on a current or former teacher employee or contractor of the district, 
218.8 	including the results of background investigations, if the requesting school district seeks 
218.9 	the information because the subject of the data has applied for employment with the 
218.10 	requesting school district.

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

218.12 	Sec. 3. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
218.13 		Subd. 6.Grounds for discharge or demotion. (a) Except as otherwise provided 
218.14 	in paragraph (b), causes for the discharge or demotion of a teacher either during or after 
218.15 	the probationary period must be:
218.16 	(1) immoral character, conduct unbecoming a teacher, or insubordination;
218.17 	(2) failure without justifiable cause to teach without first securing the written release 
218.18 	of the school board having the care, management, or control of the school in which the 
218.19 	teacher is employed;
218.20 	(3) inefficiency in teaching or in the management of a school, consistent with 
218.21 	subdivision 5, paragraph (b);
218.22 	(4) affliction with active tuberculosis or other communicable disease must be 
218.23 	considered as cause for removal or suspension while the teacher is suffering from such 
218.24 	disability; or
218.25 	(5) discontinuance of position or lack of pupils.
218.26 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
218.27 	discriminatory practice described in section 363A.13.
218.28 	(b) A probationary or continuing-contract teacher must be discharged immediately 
218.29 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
218.30 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
218.31 	(c) When a teacher is discharged under paragraph (b) or when the commissioner 
218.32 	makes a final determination of child maltreatment involving a teacher under section 
218.33 	626.556, subdivision 11, the school principal or other person having administrative 
218.34 	control of the school must include in the teacher's employment record the information 
218.35 	contained in the record of the disciplinary action or the final maltreatment determination, 
219.1 	consistent with the definition of public data under section 13.41, subdivision 5, and must 
219.2 	provide the Board of Teaching and the licensing division at the department with the 
219.3 	necessary and relevant information to enable the Board of Teaching and the department's 
219.4 	licensing division to fulfill their statutory and administrative duties related to issuing, 
219.5 	renewing, suspending, or revoking a teacher's license. Information received by the Board 
219.6 	of Teaching or the licensing division at the department under this paragraph is governed 
219.7 	by section 13.41 or other applicable law governing data of the receiving entity. In addition 
219.8 	to the background check required under section 123B.03, a school board or other school 
219.9 	hiring authority must contact the Board of Teaching and the department to determine 
219.10 	whether the teacher's license has been suspended or revoked, consistent with the discharge 
219.11 	and final maltreatment determinations identified in this paragraph. Unless restricted by 
219.12 	federal or state data practices law or by the terms of a collective bargaining agreement, 
219.13 	the responsible authority for a school district must disseminate to another school district 
219.14 	private personnel data on a current or former teacher employee or contractor of the district, 
219.15 	including the results of background investigations, if the requesting school district seeks 
219.16 	the information because the subject of the data has applied for employment with the 
219.17 	requesting school district.

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

219.19 	Sec. 4. Minnesota Statutes 2012, section 122A.414, subdivision 2, as amended by 
219.20 	Laws 2014, chapter 272, article 3, section 17, if enacted, is amended to read:
219.21 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
219.22 	program, a school district, intermediate school district, school site, or charter school must 
219.23 	have an educational improvement plan under section 122A.413 and an alternative teacher 
219.24 	professional pay system agreement under paragraph (b). A charter school participant also 
219.25 	must comply with subdivision 2a.
219.26 	(b) The alternative teacher professional pay system agreement must:
219.27 	(1) describe how teachers can achieve career advancement and additional 
219.28 	compensation;
219.29 	(2) describe how the school district, intermediate school district, school site, or 
219.30 	charter school will provide teachers with career advancement options that allow teachers 
219.31 	to retain primary roles in student instruction and facilitate site-focused professional 
219.32 	development that helps other teachers improve their skills;
219.33 	(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
219.34 	paid before implementing the pay system from being reduced as a result of participating in 
220.1 	this system, base at least 60 percent of any compensation increase on teacher performance 
220.2 	using:
220.3 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
220.4 	standardized assessment outcomes, or both;
220.5 	(ii) measures of student growth and literacy that may include value-added models 
220.6 	or student learning goals, consistent with section 122A.40, subdivision 8, clause (9), or 
220.7 	122A.41, subdivision 5, clause (9), and other measures that include the academic literacy, 
220.8 	oral academic language, and achievement of English learners under section 122A.40, 
220.9 	subdivision 8, clause (10), or 122A.41, subdivision 5, clause (10); and
220.10 	(iii) an objective evaluation program under section 122A.40, subdivision 8, 
220.11 	paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
220.12 	(4) provide for participation in job-embedded learning opportunities such as 
220.13 	professional learning communities to improve instructional skills and learning that are 
220.14 	aligned with student needs under section 122A.413, consistent with the staff development 
220.15 	plan under section 122A.60 and led during the school day by trained teacher leaders 
220.16 	such as master or mentor teachers;
220.17 	(5) allow any teacher in a participating school district, intermediate school district, 
220.18 	school site, or charter school that implements an alternative pay system to participate in 
220.19 	that system without any quota or other limit; and
220.20 	(6) encourage collaboration rather than competition among teachers.

220.21 	EFFECTIVE DATE. The amendments made by this section are effective for 
220.22 	agreements approved after August 1, 2015.

220.23 	Sec. 5. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
220.24 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
220.25 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
220.26 	application approved by the commissioner is eligible for alternative teacher compensation 
220.27 	revenue.
220.28 	(b) For school district and intermediate school district applications, the commissioner 
220.29 	must consider only those applications to participate that are submitted jointly by a 
220.30 	district and the exclusive representative of the teachers. The application must contain an 
220.31 	alternative teacher professional pay system agreement that:
220.32 	(1) implements an alternative teacher professional pay system consistent with 
220.33 	section 122A.414; and
221.1 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
221.2 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
221.3 	district may enter into a contract for a term of two or four years.
221.4 	Alternative teacher compensation revenue for a qualifying school district or site in 
221.5 	which the school board and the exclusive representative of the teachers agree to place 
221.6 	teachers in the district or at the site on the alternative teacher professional pay system 
221.7 	equals $260 times the number of pupils enrolled at the district or site on October 1 of 
221.8 	the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
221.9 	intermediate school district must be calculated under section 126C.10, subdivision 34
221.10 	 subdivision 4, paragraphs (a) and (b).
221.11 	(c) For a newly combined or consolidated district, the revenue shall be computed 
221.12 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
221.13 	into the combination or consolidation. The commissioner may adjust the revenue computed 
221.14 	for a site using prior year data to reflect changes attributable to school closings, school 
221.15 	openings, or grade level reconfigurations between the prior year and the current year.
221.16 	(d) The revenue is available only to school districts, intermediate school districts, 
221.17 	school sites, and charter schools that fully implement an alternative teacher professional 
221.18 	pay system by October 1 of the current school year.

221.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
221.20 	and later.

221.21 	Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is 
221.22 	amended to read:
221.23 		Subdivision 1.Initial achievement and integration revenue. (a) An eligible 
221.24 	district's initial achievement and integration revenue equals the lesser of 100.3 percent of 
221.25 	the district's expenditures under the budget approved by the commissioner under section 
221.26 	124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive 
221.27 	revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil 
221.28 	units for that year times the ratio of the district's enrollment of protected students for the 
221.29 	previous school year to total enrollment for the previous school year and (2) the greater of 
221.30 	zero or 66 percent of the difference between the district's integration revenue for fiscal 
221.31 	year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
221.32 	(b) In each year, 0.3 percent of each district's initial achievement and integration 
221.33 	revenue is transferred to the department for the oversight and accountability activities 
221.34 	required under this section and section 124D.861.

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

222.3 	Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is 
222.4 	amended to read:
222.5 		Subd. 2.Incentive revenue. An eligible school district's maximum incentive 
222.6 	revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 
222.7 	be A district's incentive revenue equals the lesser of the maximum incentive revenue 
222.8 	or the district's expenditures for implementing a voluntary plan to reduce racial and 
222.9 	economic enrollment disparities through intradistrict and interdistrict activities that have 
222.10 	been approved as a part of the district's achievement and integration plan under the budget 
222.11 	approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).

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

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

222.17
222.18		$
	2,080,000
2,044,000
	.....
	2014
	
222.19
222.20		$
	2,230,000
2,161,000
	.....
	2015
	
222.21 	The 2014 appropriation includes $266,000 $166,000 for 2013 and $1,814,000
222.22 	 $1,878,000 for 2014.
222.23 	The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
222.24 	 $1,953,000 for 2015.

222.25 	Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
222.26 		Subd. 15.Early childhood literacy programs. For early childhood literacy 
222.27 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

222.28		$
	4,125,000
	.....
	2014
	
222.29
222.30		$
	4,125,000
 5,125,000
	.....
	2015
	
222.31 	Up to $4,125,000 eachin the first year and $5,125,000 in the second year is for 
222.32 	leveraging federal and private funding to support AmeriCorps members serving in the 
222.33 	Minnesota Reading Corps program established by ServeMinnesota, including costs 
222.34 	associated with the training and teaching of early literacy skills to children age three to 
223.1 	grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections 
223.2 	124D.38, subdivision 2, and 124D.42, subdivision 6. Up to $1,000,000 in fiscal year 
223.3 	2015 must be used to support priority and focus schools as defined by the Department 
223.4 	of Education and to expand kindergarten programming.
223.5 	Any balance in the first year does not cancel but is available in the second year.
223.6 	The base for fiscal year 2016 and later is $4,375,000.

223.7 	Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 18, is amended to 
223.8 	read:
223.9 		Subd. 18.School Climate Safety Technical Assistance Center. For the School 
223.10 	Climate Safety Technical Assistance Center under Minnesota Statutes, section 127A.052:

223.11		$
	500,000
	.....
	2014
	
223.12		$
	500,000
	.....
	2015

223.13 	Sec. 11. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER 
223.14 	PROFESSIONAL PAY SYSTEM AND TEACHER DEVELOPMENT AND 
223.15 	EVALUATION PROGRAM.
 223.16 	To better align Minnesota's alternative teacher professional pay system under 
223.17 	Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher development 
223.18 	and evaluation program under Minnesota Statutes, sections 122A.40, subdivision 8, and 
223.19 	122A.41, subdivision 5, and effect and fund an improved alignment of this system and 
223.20 	program, the commissioner of education must consult with stakeholders, including, but 
223.21 	not limited to, representatives of the Minnesota Association of School Administrators, 
223.22 	the Minnesota Association of Secondary School Principals, the Minnesota Elementary 
223.23 	School Principals' Association, Education Minnesota, Schools for Equity in Education, the 
223.24 	Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota 
223.25 	School Boards Association, the Department of Education, the College of Education 
223.26 	and Human Development at the University of Minnesota, the Minnesota Association 
223.27 	of the Colleges for Teacher Education, licensed elementary and secondary school 
223.28 	teachers employed in school districts with an alternative teacher professional pay system 
223.29 	agreement and licensed elementary and secondary school teachers employed in school 
223.30 	districts without an alternative teacher professional pay system agreement, where one or 
223.31 	more of these teachers may be a master teacher, peer evaluator, in another teacher leader 
223.32 	position, or national board certified teacher, a teacher or school administrator employed in 
223.33 	a Minnesota charter school with an alternative teacher professional pay system agreement 
223.34 	and a teacher or school administrator employed in a Minnesota charter school without an 
224.1 	alternative teacher professional pay system agreement, a parent or guardian of a student 
224.2 	currently enrolled in a Minnesota public school, the Association of Metropolitan School 
224.3 	Districts, and the Minnesota Rural Education Association. The commissioner also must 
224.4 	consult with members of the house of representatives and members of the senate.
224.5 	The commissioner, by February 1, 2015, must submit to the education policy and 
224.6 	finance committees of the legislature written recommendations on better aligning and 
224.7 	financing the alternative teacher professional pay system and teacher development and 
224.8 	evaluation program.

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

224.10 	Sec. 12. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
 224.11 	(a) The commissioner of education must consult with experts knowledgeable about 
224.12 	secondary and postsecondary career and technical education programs to determine the 
224.13 	content and status of particular career and technical education programs in Minnesota 
224.14 	school districts, including cooperating districts under Minnesota Statutes, 123A.33, 
224.15 	subdivision 2, integration districts, and postsecondary institutions partnering with school 
224.16 	districts or offering courses through PSEO or career and technical programs and the rates 
224.17 	of student participation and completion for these various programs, including: agriculture, 
224.18 	food, and natural resources; architecture and construction; arts, audiovisual technology, 
224.19 	and communications; business management and administration; computer science; family 
224.20 	and consumer science; finance; health science; hospitality and tourism; human services; 
224.21 	information technology; manufacturing; marketing; science, technology, engineering, and 
224.22 	mathematics; and transportation, distribution, and logistics.
224.23 	(b) To accomplish paragraph (a) and to understand the current role of local school 
224.24 	districts and postsecondary institutions in providing career and technical education 
224.25 	programs, the commissioner of education, in consultation with experts, also must examine 
224.26 	the extent to which secondary and postsecondary education programs offer students a 
224.27 	progression of coordinated, nonduplicative courses that adequately prepare students to 
224.28 	successfully complete a career and technical education program.
224.29 	(c) The commissioner of education must submit a report by February 1, 2015, 
224.30 	to the education policy and finance committees of the legislature, consistent with this 
224.31 	section, and include information about each district's dedicated equipment, resources, and 
224.32 	relationships with postsecondary institutions and the local business community.

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

225.1 	Sec. 13. INFORMATION TECHNOLOGY CERTIFICATION PARTNERSHIPS; 
225.2 	REQUEST FOR PROPOSAL; PROGRAM REQUIREMENTS.
 225.3 	(a) The commissioner shall contract with at least one provider to provide information 
225.4 	technology education opportunities to students in grades 9 through 12. This partnership 
225.5 	must allow participating students and teachers to secure broad-based information 
225.6 	technology certifications.
225.7 	(b) The commissioner shall issue a competitive request for proposals, award the 
225.8 	contract, and make available, through participating school districts, charter schools, and 
225.9 	intermediate districts, instruction on information technology skills and competencies 
225.10 	that are essential for career and college readiness. The request for proposals shall at 
225.11 	least include the following components:
225.12 	(1) a research-based curriculum;
225.13 	(2) online access to the curriculum;
225.14 	(3) instructional software for classroom and student use;
225.15 	(4) certification of skills and competencies in a broad array of information 
225.16 	technology-related skill areas;
225.17 	(5) professional development for teachers; and
225.18 	(6) deployment and program support, including, but not limited to, integration with 
225.19 	academic standards under Minnesota Statutes, section 120B.021 or 120B.022.
225.20 	(c) If the contract awarded under this section does not allow for the service to be 
225.21 	delivered in every eligible school, the commissioner shall make the contracted service 
225.22 	available on a first-come, first-served basis to an equal number of schools in each of the 
225.23 	regions represented by a regional development commission under Minnesota Statutes, 
225.24 	section 462.387, and in the region consisting of counties not represented by a regional 
225.25 	development commission. If participating schools in any region do not exhaust the services 
225.26 	allocated to that region, the commissioner may reallocate unused services to other regions.

225.27 	Sec. 14. LEGISLATIVE REPORT ON K-12 STUDENTS' EXPERIENCE WITH 
225.28 	PHYSICAL EDUCATION.
 225.29 	(a) The commissioner of education must prepare and submit to the education policy 
225.30 	and finance committees of the legislature by January 15, 2015, a written report on K-12 
225.31 	students' experience with physical education, consistent with this section. Among other 
225.32 	physical education-related issues, the report must include:
225.33 	(1) the number of minutes per day and frequency per week students in each grade 
225.34 	level, kindergarten through grade 8, receive physical education, identify the requirements in 
225.35 	high school physical education in terms of semesters, trimesters, quarters, or school years;
226.1 	(2) the measures and data used to assess students' level of fitness and the uses made 
226.2 	of the fitness data;
226.3 	(3) the educational preparation of physical education instructors and the proportion 
226.4 	of time certified physical education teachers provide physical education instruction;
226.5 	(4) the amount of time and number of days per week each grade level, kindergarten 
226.6 	through grade 6, receives recess;
226.7 	(5) whether high school students are allowed to substitute other activities for 
226.8 	required physical education, and, if so, which activities qualify;
226.9 	(6) identify the number or percentage of high school students who earn required 
226.10 	physical education credits online;
226.11 	(7) whether schools offer before or after school physical activities opportunities in 
226.12 	each grade level, kindergarten through grade 8, and in high school, and, if so, what are the 
226.13 	opportunities; and
226.14 	(8) the extent to which schools coordinate with developmentally adaptive physical 
226.15 	education specialists when needed.
226.16 	(b) Any costs of preparing this report must be paid for out of the Department of 
226.17 	Education's current operating budget.

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

226.19 	Sec. 15. TEACHER DEVELOPMENT AND EVALUATION REVENUE.
 226.20 	(a) For fiscal year 2015 only, teacher development and evaluation revenue for a school 
226.21 	district, intermediate school district, or charter school that does not have an alternative 
226.22 	professional pay system agreement under Minnesota Statutes, section 122A.414, 
226.23 	subdivision 2, equals $302 times the number of full-time equivalent teachers employed on 
226.24 	October 1 of the previous school year. Revenue under this section must be reserved for 
226.25 	teacher development and evaluation activities consistent with Minnesota Statutes, section 
226.26 	122A.40, subdivision 8, or Minnesota Statutes, section 122A.41, subdivision 5. For the 
226.27 	purposes of this section, "teacher" has the meaning given it in Minnesota Statutes, section 
226.28 	122A.40, subdivision 1, or Minnesota Statutes, section 122A.41, subdivision 1.
226.29 	(b) Notwithstanding paragraph (a), the state total teacher development and evaluation 
226.30 	revenue entitlement must not exceed $10,000,000 for fiscal year 2015. The commissioner 
226.31 	must limit the amount of revenue under this section so as not to exceed this limit.

226.32 	Sec. 16. APPROPRIATIONS.
 227.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
227.2 	appropriated from the general fund to the Department of Education for the fiscal years 
227.3 	designated.
227.4 		Subd. 2.Career and technical program inventory. For the career and technical 
227.5 	program inventory program under section 12:

227.6		$
	100,000
	.....
	2015
	
227.7 	This is a onetime appropriation.
227.8 		Subd. 3.Teacher Professional Pay System and Teacher Evaluation Program 
227.9 	alignment. For the alignment and reporting activities under section 11:

227.10		$
	25,000
	.....
	2015
	
227.11 	This is a onetime appropriation.
227.12 		Subd. 4.Northwestern Online College in the High School program. For the 
227.13 	Northwestern Online College in the High School program:

227.14		$
	160,000
	.....
	2015
	
227.15 	The base for fiscal year 2016 and later is $0.
227.16 		Subd. 5.Information technology certification partnership. For an information 
227.17 	technology certification partnership.

227.18		$
	300,000
	.....
	2015
	
227.19 	The base for 2016 and later is $0.
227.20 		Subd. 6.Legislative report on K-12 students' experience with physical 
227.21 	education. For the preparation of the legislative report on K-12 students' experience 
227.22 	with physical education.

227.23		$
	25,000
	.....
	2015
	
227.24 	The base for fiscal year 2016 and later is $0.
227.25 		Subd. 7.Teacher development and evaluation. For teacher development and 
227.26 	evaluation revenue.

227.27		$
	9,000,000
	.....
	2015
	
227.28 	The 2015 appropriation includes $0 for 2014 and $9,000,000 for 2015. This is a 
227.29 	onetime appropriation and is available until expended.

227.30 	Sec. 17.  REPEALER.
 228.1 	The amendments to Minnesota Statutes, section 122A.414, subdivision 2, made by
228.2 	 Laws 2014, chapter 272, article 1, section 22, if enacted, are repealed the day following 
228.3 	final enactment.

228.4 	ARTICLE 17
228.5 	SPECIAL EDUCATION

228.6 	Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
228.7 	125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
228.8 		Subdivision 1.Restrictive procedures plan. (a) Schools that intend to use 
228.9 	restrictive procedures shall maintain and make publicly accessible in an electronic format 
228.10 	on a school or district Web site or make a paper copy available upon request describing a 
228.11 	restrictive procedures plan for children with disabilities that at least:
228.12 	(1) lists the restrictive procedures the school intends to use;
228.13 	(2) describes how the school will implement a range of positive behavior strategies 
228.14 	and provide links to mental health services;
228.15 	(3) describes how the school will provide training on de-escalation techniques, 
228.16 	consistent with section 122A.09, subdivision 4, paragraph (k);
228.17 	(4) describes how the school will monitor and review the use of restrictive 
228.18 	procedures, including:
228.19 	(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a), 
228.20 	clause (5); and
228.21 	(ii) convening an oversight committee to undertake a quarterly review of the use 
228.22 	of restrictive procedures based on patterns or problems indicated by similarities in the 
228.23 	time of day, day of the week, duration of the use of a procedure, the individuals involved, 
228.24 	or other factors associated with the use of restrictive procedures; the number of times a 
228.25 	restrictive procedure is used schoolwide and for individual children; the number and types 
228.26 	of injuries, if any, resulting from the use of restrictive procedures; whether restrictive 
228.27 	procedures are used in nonemergency situations; the need for additional staff training; and 
228.28 	proposed actions to minimize the use of restrictive procedures; and
228.29 	(4) (5) includes a written description and documentation of the training staff 
228.30 	completed under subdivision 5.
228.31 	(b) Schools annually must publicly identify oversight committee members who 
228.32 	must at least include:
228.33 	(1) a mental health professional, school psychologist, or school social worker;
228.34 	(2) an expert in positive behavior strategies;
229.1 	(3) a special education administrator; and
229.2 	(4) a general education administrator.
229.3 		Subd. 2.Restrictive procedures. (a) Restrictive procedures may be used only 
229.4 	by a licensed special education teacher, school social worker, school psychologist, 
229.5 	behavior analyst certified by the National Behavior Analyst Certification Board, a person 
229.6 	with a master's degree in behavior analysis, other licensed education professional, 
229.7 	paraprofessional under section 120B.363, or mental health professional under section 
229.8 	245.4871, subdivision 27, who has completed the training program under subdivision 5.
229.9 	(b) A school shall make reasonable efforts to notify the parent on the same day a 
229.10 	restrictive procedure is used on the child, or if the school is unable to provide same-day 
229.11 	notice, notice is sent within two days by written or electronic means or as otherwise 
229.12 	indicated by the child's parent under paragraph (d) (f).
229.13 	(c) The district must hold a meeting of the individualized education program team, 
229.14 	conduct or review a functional behavioral analysis, review data, consider developing 
229.15 	additional or revised positive behavioral interventions and supports, consider actions to 
229.16 	reduce the use of restrictive procedures, and modify the individualized education program 
229.17 	or behavior intervention plan as appropriate. The district must hold the meeting: within 
229.18 	ten calendar days after district staff use restrictive procedures on two separate school 
229.19 	days within 30 calendar days or a pattern of use emerges and the child's individualized 
229.20 	education program or behavior intervention plan does not provide for using restrictive 
229.21 	procedures in an emergency; or at the request of a parent or the district after restrictive 
229.22 	procedures are used. The district must review use of restrictive procedures at a child's 
229.23 	annual individualized education program meeting when the child's individualized 
229.24 	education program provides for using restrictive procedures in an emergency.
229.25 	(d) If the individualized education program team under paragraph (c) determines 
229.26 	that existing interventions and supports are ineffective in reducing the use of restrictive 
229.27 	procedures or the district uses restrictive procedures on a child on ten or more school days 
229.28 	during the same school year, the team, as appropriate, either must consult with other 
229.29 	professionals working with the child; consult with experts in behavior analysis, mental 
229.30 	health, communication, or autism; consult with culturally competent professionals; 
229.31 	review existing evaluations, resources, and successful strategies; or consider whether to 
229.32 	reevaluate the child.
229.33 	(e) At the individualized education program meeting under paragraph (c), the team 
229.34 	must review any known medical or psychological limitations, including any medical 
229.35 	information the parent provides voluntarily, that contraindicate the use of a restrictive 
230.1 	procedure, consider whether to prohibit that restrictive procedure, and document any 
230.2 	prohibition in the individualized education program or behavior intervention plan.
230.3 	(f) An individualized education program team may plan for using restrictive 
230.4 	procedures and may include these procedures in a child's individualized education 
230.5 	program or behavior intervention plan; however, the restrictive procedures may be used 
230.6 	only in response to behavior that constitutes an emergency, consistent with this section. 
230.7 	The individualized education program or behavior intervention plan shall indicate how the 
230.8 	parent wants to be notified when a restrictive procedure is used.
230.9 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
230.10 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
230.11 	following requirements:
230.12 	(1) physical holding or seclusion is the least intrusive intervention that effectively 
230.13 	responds to the emergency;
230.14 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
230.15 	(3) physical holding or seclusion ends when the threat of harm ends and the staff 
230.16 	determines the child can safely return to the classroom or activity;
230.17 	(4) staff directly observes the child while physical holding or seclusion is being used;
230.18 	(5) each time physical holding or seclusion is used, the staff person who implements 
230.19 	or oversees the physical holding or seclusion documents, as soon as possible after the 
230.20 	incident concludes, the following information:
230.21 	(i) a description of the incident that led to the physical holding or seclusion;
230.22 	(ii) why a less restrictive measure failed or was determined by staff to be 
230.23 	inappropriate or impractical;
230.24 	(iii) the time the physical holding or seclusion began and the time the child was 
230.25 	released; and
230.26 	(iv) a brief record of the child's behavioral and physical status;
230.27 	(6) the room used for seclusion must:
230.28 	(i) be at least six feet by five feet;
230.29 	(ii) be well lit, well ventilated, adequately heated, and clean;
230.30 	(iii) have a window that allows staff to directly observe a child in seclusion;
230.31 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
230.32 	door, and secure ceilings;
230.33 	(v) have doors that open out and are unlocked, locked with keyless locks that 
230.34 	have immediate release mechanisms, or locked with locks that have immediate release 
230.35 	mechanisms connected with a fire and emergency system; and
230.36 	(vi) not contain objects that a child may use to injure the child or others;
231.1 	(7) before using a room for seclusion, a school must:
231.2 	(i) receive written notice from local authorities that the room and the locking 
231.3 	mechanisms comply with applicable building, fire, and safety codes; and
231.4 	(ii) register the room with the commissioner, who may view that room; and
231.5 	(8) until August 1, 2015, a school district may use prone restraints with children 
231.6 	age five or older if:
231.7 	(i) the district has provided to the department a list of staff who have had specific 
231.8 	training on the use of prone restraints;
231.9 	(ii) the district provides information on the type of training that was provided and 
231.10 	by whom;
231.11 	(iii) only staff who received specific training use prone restraints;
231.12 	(iv) each incident of the use of prone restraints is reported to the department within 
231.13 	five working days on a form provided by the department; and
231.14 	(v) the district, before using prone restraints, must review any known medical or 
231.15 	psychological limitations that contraindicate the use of prone restraints.
231.16 	The department must collect data on districts' use of prone restraints and publish the data 
231.17 	in a readily accessible format on the department's Web site on a quarterly basis.
231.18 	(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must 
231.19 	recommend to the commissioner specific and measurable implementation and outcome 
231.20 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
231.21 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
231.22 	that recommends how to further reduce these procedures and eliminate the use of prone 
231.23 	restraints. The statewide plan includes the following components: measurable goals; the 
231.24 	resources, training, technical assistance, mental health services, and collaborative efforts 
231.25 	needed to significantly reduce districts' use of prone restraints; and recommendations 
231.26 	to clarify and improve the law governing districts' use of restrictive procedures. The 
231.27 	commissioner must consult with interested stakeholders when preparing the report, 
231.28 	including representatives of advocacy organizations, special education directors, teachers, 
231.29 	paraprofessionals, intermediate school districts, school boards, day treatment providers, 
231.30 	county social services, state human services department staff, mental health professionals, 
231.31 	and autism experts. By June 30 each year, districts must report summary data on their 
231.32 	use of restrictive procedures to the department, in a form and manner determined by the 
231.33 	commissioner. The summary data must include information about the use of restrictive 
231.34 	procedures, including use of reasonable force under section 121A.582.
231.35 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
231.36 	(1) engaging in conduct prohibited under section 121A.58;
232.1 	(2) requiring a child to assume and maintain a specified physical position, activity, 
232.2 	or posture that induces physical pain;
232.3 	(3) totally or partially restricting a child's senses as punishment;
232.4 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
232.5 	substance, or spray as punishment;
232.6 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
232.7 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
232.8 	except when temporarily removing the equipment or device is needed to prevent injury 
232.9 	to the child or others or serious damage to the equipment or device, in which case the 
232.10 	equipment or device shall be returned to the child as soon as possible;
232.11 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
232.12 	physical abuse under section 626.556;
232.13 	(7) withholding regularly scheduled meals or water;
232.14 	(8) denying access to bathroom facilities; and
232.15 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
232.16 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
232.17 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
232.18 	straddling a child's torso.
232.19 		Subd. 5.Training for staff. (a) To meet the requirements of subdivision 1, staff 
232.20 	who use restrictive procedures, including paraprofessionals, shall complete training in 
232.21 	the following skills and knowledge areas:
232.22 	(1) positive behavioral interventions;
232.23 	(2) communicative intent of behaviors;
232.24 	(3) relationship building;
232.25 	(4) alternatives to restrictive procedures, including techniques to identify events and 
232.26 	environmental factors that may escalate behavior;
232.27 	(5) de-escalation methods;
232.28 	(6) standards for using restrictive procedures only in an emergency;
232.29 	(7) obtaining emergency medical assistance;
232.30 	(8) the physiological and psychological impact of physical holding and seclusion;
232.31 	(9) monitoring and responding to a child's physical signs of distress when physical 
232.32 	holding is being used;
232.33 	(10) recognizing the symptoms of and interventions that may cause positional 
232.34 	asphyxia when physical holding is used;
232.35 	(11) district policies and procedures for timely reporting and documenting each 
232.36 	incident involving use of a restricted procedure; and
233.1 	(12) schoolwide programs on positive behavior strategies.
233.2 	(b) The commissioner, after consulting with the commissioner of human services, 
233.3 	must develop and maintain a list of training programs that satisfy the requirements of 
233.4 	paragraph (a). The commissioner also must develop and maintain a list of experts to 
233.5 	help individualized education program teams reduce the use of restrictive procedures. 
233.6 	The district shall maintain records of staff who have been trained and the organization 
233.7 	or professional that conducted the training. The district may collaborate with children's 
233.8 	community mental health providers to coordinate trainings.
233.9 		Subd. 6.Behavior supports; reasonable force. (a) School districts are encouraged 
233.10 	to establish effective schoolwide systems of positive behavior interventions and supports.
233.11 	(b) Nothing in this section or section 125A.0941 precludes the use of reasonable 
233.12 	force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015 
233.13 	school year and later, districts must collect and submit to the commissioner summary 
233.14 	data, consistent with subdivision 3, paragraph (b), on district use of reasonable force 
233.15 	that is consistent with the definition of physical holding or seclusion for a child with a 
233.16 	disability under this section.

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

233.18 	Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is 
233.19 	amended to read:
233.20 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
233.21 	later, when a school district provides special instruction and services for a pupil with 
233.22 	a disability as defined in section 125A.02 outside the district of residence, excluding 
233.23 	a pupil for whom an adjustment to special education aid is calculated according to 
233.24 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
233.25 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
233.26 	special instruction and services to the pupil, including a proportionate amount for special 
233.27 	transportation and unreimbursed building lease and debt service costs for facilities used 
233.28 	primarily for special education, plus (2) the amount of general education revenue and 
233.29 	referendum equalization aid attributable to that pupil, calculated using the resident district's 
233.30 	average general education revenue and referendum equalization aid per adjusted pupil 
233.31 	unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 
233.32 	revenue, minus (3) the amount of special education aid for children with a disability 
233.33 	under section 125A.76 received on behalf of that child, minus (4) if the pupil receives 
233.34 	special instruction and services outside the regular classroom for more than 60 percent 
233.35 	of the school day, the amount of general education revenue and referendum equalization 
234.1 	aid, excluding portions attributable to district and school administration, district support 
234.2 	services, operations and maintenance, capital expenditures, and pupil transportation, 
234.3 	attributable to that pupil for the portion of time the pupil receives special instruction 
234.4 	and services outside of the regular classroom, calculated using the resident district's 
234.5 	average general education revenue and referendum equalization aid per adjusted pupil unit 
234.6 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
234.7 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
234.8 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
234.9 	served by a cooperative unit without a fiscal agent school district, the general education 
234.10 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
234.11 	the resident district's average general education revenue and referendum equalization aid 
234.12 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
234.13 	revenue. Special education aid paid to the district or cooperative providing special 
234.14 	instruction and services for the pupil must be increased by the amount of the reduction in 
234.15 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
234.16 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
234.17 	expenditures on the resident school district's books of account under sections 123B.75 
234.18 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
234.19 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
234.20 	(b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
234.21 	(b) to (d), a charter school where more than 30 percent of enrolled students receive special 
234.22 	education and related services, a site approved under section 125A.515, an intermediate 
234.23 	district, a special education cooperative, or a school district that served as the applicant 
234.24 	agency for a group of school districts for federal special education aids for fiscal year 
234.25 	2006 may apply to the commissioner for authority to charge the resident district an 
234.26 	additional amount to recover any remaining unreimbursed costs of serving pupils with 
234.27 	a disability. The application must include a description of the costs and the calculations 
234.28 	used to determine the unreimbursed portion to be charged to the resident district. Amounts 
234.29 	approved by the commissioner under this paragraph must be included in the tuition billings 
234.30 	or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs 
234.31 	(b) to (d), as applicable.
234.32 	(c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
234.33 	(d) and (e) paragraph (b), "general education revenue and referendum equalization aid" 
234.34 	means the sum of the general education revenue according to section 126C.10, subdivision 
234.35 	1, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph 
234.36 	(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.

235.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
235.2 	and later.

235.3 	Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is 
235.4 	amended to read:
235.5 		Subdivision 1.Definitions. (a) For the purposes of this section and section 125A.79, 
235.6 	the definitions in this subdivision apply.
235.7 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
235.8 	For the purposes of computing basic revenue pursuant to this section, each child with a 
235.9 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
235.10 	(c) "Essential personnel" means teachers, cultural liaisons, related services, and 
235.11 	support services staff providing services to students. Essential personnel may also include 
235.12 	special education paraprofessionals or clericals providing support to teachers and students 
235.13 	by preparing paperwork and making arrangements related to special education compliance 
235.14 	requirements, including parent meetings and individualized education programs. Essential 
235.15 	personnel does not include administrators and supervisors.
235.16 	(d) "Average daily membership" has the meaning given it in section 126C.05.
235.17 	(e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015, 
235.18 	1.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the 
235.19 	program growth factor for the previous year for fiscal year 2018 and later.
235.20 	(f) "Nonfederal special education expenditure" means all direct expenditures that 
235.21 	are necessary and essential to meet the district's obligation to provide special instruction 
235.22 	and services to children with a disability according to sections 124D.454, 125A.03 to 
235.23 	125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by 
235.24 	the department under section 125A.75, subdivision 4, excluding expenditures:
235.25 	(1) reimbursed with federal funds;
235.26 	(2) reimbursed with other state aids under this chapter;
235.27 	(3) for general education costs of serving students with a disability;
235.28 	(4) for facilities;
235.29 	(5) for pupil transportation; and
235.30 	(6) for postemployment benefits.
235.31 	(g) "Old formula special education expenditures" means expenditures eligible for 
235.32 	revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
235.33 	(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy 
235.34 	for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and 
235.35 	fringe benefits of one-to-one instructional and behavior management aides and one-to-one 
236.1 	licensed, certified professionals assigned to a child attending the academy, if the aides or 
236.2 	professionals are required by the child's individualized education program.
236.3 	(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 
236.4 	2014 and 2.27 percent for fiscal year 2015.
236.5 	(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 
236.6 	for fiscal year 2015.
236.7 	(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 
236.8 	for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education 
236.9 	aid increase limit for the previous fiscal year and $40.

236.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
236.11 	and later.

236.12 	Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
236.13 		Subd. 2.Special education initial aid. The special education initial aid equals the 
236.14 	sum of the following amounts computed using current year data:
236.15 	(1) 68 percent of the salary of each essential person employed in the district's program 
236.16 	for children with a disability during the fiscal year, whether the person is employed by one 
236.17 	or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
236.18 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
236.19 	for the Blind, 68 percent of the salary of each one to one one-to-one instructional and 
236.20 	behavior management aide and one-to-one licensed, certified professional assigned to 
236.21 	a child attending the academy, if the aides or professionals are required by the child's 
236.22 	individualized education program;
236.23 	(3) for special instruction and services provided to any pupil by contracting with 
236.24 	public, private, or voluntary agencies other than school districts, in place of special 
236.25 	instruction and services provided by the district, 52 percent of the difference between 
236.26 	the amount of the contract and the general education revenue, excluding basic skills 
236.27 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
236.28 	attributable to a pupil, calculated using the resident district's average general education 
236.29 	revenue and referendum equalization aid per adjusted pupil unit for the fraction of the 
236.30 	school day the pupil receives services under the contract. This includes children who 
236.31 	are residents of the state, receive services under this subdivision and subdivision 1, and 
236.32 	are placed in a care and treatment facility by court action in a state that does not have a 
236.33 	reciprocity agreement with the commissioner under section 125A.155 as provided for in 
236.34 	section 125A.79, subdivision 8;
237.1 	(4) for special instruction and services provided to any pupil by contracting for 
237.2 	services with public, private, or voluntary agencies other than school districts, that are 
237.3 	supplementary to a full educational program provided by the school district, 52 percent of 
237.4 	the amount of the contract for that pupil;
237.5 	(5) for supplies and equipment purchased or rented for use in the instruction of 
237.6 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
237.7 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
237.8 	not to exceed an average of $47 in any one school year for each child with a disability 
237.9 	receiving instruction;
237.10 	(6) for fiscal years 1997 and later, special education base revenue shall include 
237.11 	amounts under clauses (1) to (5) for special education summer programs provided during 
237.12 	the base year for that fiscal year;
237.13 	(7) the cost of providing transportation services for children with disabilities under 
237.14 	section 123B.92, subdivision 1, paragraph (b), clause (4); and
237.15 	(8) the district's transition-disabled program initial aid according to section 
237.16 	124D.454, subdivision 3.
237.17 	The department shall establish procedures through the uniform financial accounting 
237.18 	and reporting system to identify and track all revenues generated from third-party billings 
237.19 	as special education revenue at the school district level; include revenue generated from 
237.20 	third-party billings as special education revenue in the annual cross-subsidy report; and 
237.21 	exclude third-party revenue from calculation of excess cost aid to the districts.

237.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
237.23 	and later.

237.24 	Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is 
237.25 	amended to read:
237.26 		Subd. 2a.Special education initial aid. For fiscal year 2016 and later, a district's 
237.27 	special education initial aid equals the sum of:
237.28 	(1) the lesser least of 62 percent of the district's old formula special education 
237.29 	expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 
237.30 	percent of the district's nonfederal special education expenditures for the prior year, 
237.31 	excluding pupil transportation expenditures, or 56 percent of the product of the sum of the 
237.32 	following amounts, computed using prior fiscal year data, and the program growth factor:
237.33 	(i) the product of the district's average daily membership served and the sum of:
237.34 	(A) $450; plus
238.1 	(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
238.2 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
238.3 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
238.4 	(C) .008 times the district's average daily membership served; plus
238.5 	(ii) $10,400 times the December 1 child count for the primary disability areas of 
238.6 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
238.7 	(iii) $18,000 times the December 1 child count for the primary disability areas of 
238.8 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
238.9 	(iv) $27,000 times the December 1 child count for the primary disability areas of 
238.10 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
238.11 	physically impaired, visually impaired, and deafblind; plus
238.12 	(2) the cost of providing transportation services for children with disabilities under 
238.13 	section 123B.92, subdivision 1, paragraph (b), clause (4).

238.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
238.15 	and later.

238.16 	Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is 
238.17 	amended to read:
238.18 		Subd. 2b.Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 
238.19 	subsidy reduction aid for a school district, not including a charter school, equals the 
238.20 	lesser of (a) the product of the cross subsidy reduction aid limit and the district's average 
238.21 	daily membership served or (b) the sum of the product of the cross subsidy reduction aid 
238.22 	percentage, the district's average daily membership served, and the sum of:
238.23 	(1) $450; plus
238.24 	(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
238.25 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
238.26 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
238.27 	(3) .008 times the district's average daily membership served; plus the product of the 
238.28 	cross subsidy aid percentage and the sum of:
238.29 	(i) $10,100 times the December 1 child count for the primary disability areas of 
238.30 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
238.31 	(ii) $17,500 times the December 1 child count for the primary disability areas of 
238.32 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
238.33 	(iii) $26,000 times the December 1 child count for the primary disability areas of 
238.34 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
238.35 	physically impaired, visually impaired, and deafblind.

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

239.3 	Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is 
239.4 	amended to read:
239.5 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
239.6 	district's special education aid equals the sum of the district's special education initial aid 
239.7 	under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and 
239.8 	the district's excess cost aid under section 125A.79, subdivision 7.
239.9 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
239.10 	the district's special education initial aid under subdivision 2a and the district's excess cost 
239.11 	aid under section 125A.79, subdivision 5.
239.12 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
239.13 	a school district must not exceed the sum of the special education aid the district would 
239.14 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
239.15 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
239.16 	127A.47, subdivision 7, and the product of the district's average daily membership served 
239.17 	and the special education aid increase limit.
239.18 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
239.19 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
239.20 	daily membership served and the special education aid increase limit and (ii) the product 
239.21 	of the sum of the special education aid the district would have received for fiscal year 2016 
239.22 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
239.23 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
239.24 	the district's average daily membership served for the current fiscal year to the district's 
239.25 	average daily membership served for fiscal year 2016, and the program growth factor.
239.26 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 
239.27 	aid for a school district, not including a charter school, must not be less than the lesser of 
239.28 	(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 
239.29 	product of the sum of the special education aid the district would have received for fiscal 
239.30 	year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted 
239.31 	according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the 
239.32 	ratio of the district's adjusted daily membership for the current fiscal year to the district's 
239.33 	average daily membership for fiscal year 2016, and the program growth factor.

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

240.1 	Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is 
240.2 	amended to read:
240.3 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
240.4 	subdivision apply.
240.5 	(a) "Unreimbursed old formula special education expenditures" means:
240.6 	(1) old formula special education expenditures for the prior fiscal year; minus
240.7 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
240.8 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
240.9 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
240.10 	initial aid under section 125A.76, subdivision 2a; minus
240.11 	(3) for fiscal year 2016 and later, the amount of general education revenue, excluding 
240.12 	local optional revenue, plus local optional aid and referendum equalization aid for the 
240.13 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
240.14 	regular classroom for more than 60 percent of the school day for the portion of time the 
240.15 	pupils receive special instruction and services outside the regular classroom, excluding 
240.16 	portions attributable to district and school administration, district support services, 
240.17 	operations and maintenance, capital expenditures, and pupil transportation.
240.18 	(b) "Unreimbursed nonfederal special education expenditures" means:
240.19 	(1) nonfederal special education expenditures for the prior fiscal year; minus
240.20 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
240.21 	(3) the amount of general education revenue and referendum equalization aid for the 
240.22 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
240.23 	regular classroom for more than 60 percent of the school day for the portion of time the 
240.24 	pupils receive special instruction and services outside of the regular classroom, excluding 
240.25 	portions attributable to district and school administration, district support services, 
240.26 	operations and maintenance, capital expenditures, and pupil transportation.
240.27 	(c) "General revenue" for a school district means the sum of the general education 
240.28 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
240.29 	compensation revenue, minus transportation sparsity revenue minus, local optional 
240.30 	revenue, and total operating capital revenue. "General revenue" for a charter school means 
240.31 	the sum of the general education revenue according to section 124D.11, subdivision 1, and 
240.32 	transportation revenue according to section 124D.11, subdivision 2, excluding alternative 
240.33 	teacher compensation revenue, minus referendum equalization aid minus, transportation 
240.34 	sparsity revenue minus, and operating capital revenue.

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

241.1 	Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is 
241.2 	amended to read:
241.3 		Subd. 5.Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
241.4 	 excess cost aid equals the greater of:
241.5 	(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal 
241.6 	special education expenditures and (ii) 7.0 percent of the district's general revenue;
241.7 	(2) 62 percent of the difference between (i) the district's unreimbursed old formula 
241.8 	special education expenditures and (ii) 2.5 percent of the district's general revenue; or
241.9 	(3) zero.

241.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
241.11 	and later.

241.12 	Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is 
241.13 	amended to read:
241.14 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
241.15 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
241.16 	treatment facility by court action in a state that does not have a reciprocity agreement with 
241.17 	the commissioner under section 125A.155, the resident school district shall submit the 
241.18 	balance receive special education out-of-state tuition aid equal to the amount of the tuition 
241.19 	bills, minus (1) the general education revenue, excluding basic skills revenue and the local 
241.20 	optional levy attributable to the pupil, calculated using the resident district's average 
241.21 	general education revenue per adjusted pupil unit, and (2) the referendum equalization aid 
241.22 	attributable to the pupil, calculated using the resident district's average general education 
241.23 	revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special 
241.24 	education contracted services initial revenueaid attributable to the pupil.

241.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
241.26 	and later.

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

241.31		$
	1,763,000
	.....
	2014
	
241.32 	For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and 
241.33 	must be expended according to this subdivision for online due process reporting.
242.1 	(b) To ensure a strong focus on outcomes for children with disabilities informs 
242.2 	federal and state compliance and accountability requirements and to increase opportunities 
242.3 	for special educators and related-services providers to focus on teaching children with 
242.4 	disabilities, the commissioner must customize a streamlined, user-friendly statewide 
242.5 	online system, with a single model online form, for effectively and efficiently collecting 
242.6 	and reporting required special education-related data to individuals with a legitimate 
242.7 	educational interest and who are authorized by law to access the data.
242.8 	(c) The commissioner must consult with qualified experts, including information 
242.9 	technology specialists, licensed special education teachers and directors of special 
242.10 	education, related-services providers, third-party vendors, a designee of the commissioner 
242.11 	of human services, parents of children with disabilities, representatives of advocacy groups 
242.12 	representing children with disabilities, and representatives of school districts and special 
242.13 	education cooperatives on integrating, field testing, customizing, and sustaining this simple, 
242.14 	easily accessible, efficient, and effective online data system for uniform statewide reporting 
242.15 	of required due process compliance data. Among other outcomes, the system must:
242.16 	(1) reduce special education teachers' paperwork burden and thereby increase the 
242.17 	teachers' opportunities to focus on teaching children;
242.18 	(2) to the extent authorized by chapter 13 or other applicable state or federal law 
242.19 	governing access to and dissemination of educational records, provide for efficiently 
242.20 	and effectively transmitting the records of all transferring children with disabilities, 
242.21 	including highly mobile and homeless children with disabilities, among others, and avoid 
242.22 	fragmented service delivery;
242.23 	(3) address language and other barriers and disparities that prevent parents from 
242.24 	understanding and communicating information about the needs of their children with 
242.25 	disabilities; and
242.26 	(4) help continuously improve the interface among the online systems serving 
242.27 	children with disabilities in order to maintain and reinforce the children's ability to learn.
242.28 	(d) The commissioner must use the federal Office of Special Education Programs 
242.29 	model forms for the (1) individualized education program, (2) notice of procedural 
242.30 	safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate 
242.31 	and customize a state-sponsored universal special education online case management 
242.32 	system, consistent with the requirements of state law and this subdivision for customizing 
242.33 	a statewide online reporting system. The commissioner must use a request for proposal 
242.34 	process to contract for the technology and software needed for customizing the online 
242.35 	system in order for the system to be fully functional, consistent with the requirements of 
242.36 	this subdivision. This online system must be made available to school districts without 
243.1 	charge beginning in the 2015-2016 school year. For the 2015-2016 through 2017-2018 
243.2 	school years, school districts may use this online system or may contract with an outside 
243.3 	vendor for compliance reporting. Beginning in the 2018-2019 school year and later, 
243.4 	school districts must use this online system for compliance reporting.
243.5 	(e) All data on individuals maintained in the statewide reporting system are 
243.6 	classified as provided in chapter 13 or other applicable state or federal law. An authorized 
243.7 	individual's ability to enter, update, or access data must be limited through the use of 
243.8 	role-based access codes corresponding to that individual's official duties or training level, 
243.9 	and the statutory authorization that grants access for a particular purpose. Any action 
243.10 	in which data in the system are entered, updated, accessed, or shared or disseminated 
243.11 	outside of the system must be recorded in an audit trail. The audit trail must identify the 
243.12 	specific user responsible for the action, the date and time the action occurred, and the 
243.13 	purpose for the action. Data contained in the audit trail maintain the same classification 
243.14 	as the underlying data affected by the action, provided the responsible authority makes 
243.15 	the data available to a student or the student's parent upon request, and the responsible 
243.16 	authority may access the data to audit the system's user activity and security safeguards. 
243.17 	Before entering data on a student, the responsible authority must provide the student or the 
243.18 	student's parent written notice of the data practices rights and responsibilities required by 
243.19 	this subdivision and a reasonable opportunity to refuse consent to have the student's data 
243.20 	included in the system. Upon receiving the student or the student's parent written refusal 
243.21 	to consent, the school district must not enter data on that student into the system and must 
243.22 	delete any existing data on that student currently in the system.
243.23 	(f) Consistent with this subdivision, the commissioner must establish a public 
243.24 	Internet Web interface to provide information to educators, parents, and the public about 
243.25 	the form and content of required special education reports, to respond to queries from 
243.26 	educators, parents, and the public about specific aspects of special education reports 
243.27 	and reporting, and to use the information garnered from the interface to streamline and 
243.28 	revise special education reporting on the online system under this subdivision. The public 
243.29 	Internet Web interface must have a prominently-linked page describing the rights and 
243.30 	responsibilities of students and parents whose data are included in the statewide reporting 
243.31 	system, and include information on the data practices rights of students and parents 
243.32 	provided by this subdivision and a form students or parents may use to refuse consent to 
243.33 	have a student's data included in the system. The public Internet Web interface must not 
243.34 	provide access to the educational records of any individual child.
243.35 	(g) The commissioner annually by February 1 must submit to the legislature a report 
243.36 	on the status, recent changes, and sustainability of the online system under this subdivision.

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

244.2 	Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE 
244.3 	RECOMMENDATIONS.
 244.4 	The commissioner of education must use the expedited rulemaking process under 
244.5 	Minnesota Statutes, section 14.389, including subdivision 5, to make the specific rule 
244.6 	changes recommended by the Special Education Case Load and Rule Alignment Task 
244.7 	Force in its 2014 report entitled "Recommendations for Special Education Case Load and 
244.8 	Rule Alignment" submitted to the legislature on February 15, 2014.

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

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

244.17		$
	250,000
	.....
	2015
	
244.18 	The commissioners of education and human services, or their designees, must 
244.19 	discuss coordinating use of funds and personnel available for this purpose within their 
244.20 	respective departments. This is a onetime appropriation.

244.21 	ARTICLE 18
244.22 	FACILITIES

244.23 	Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
244.24 		Subdivision 1.Schools may be jointly operated. Two or more school districts may 
244.25 	agree to jointly operate a secondary facility. The districts may choose to operate the 
244.26 	facility according to a joint powers agreement under section 123A.78 or 471.59.
244.27 		Subd. 2.Expanded program offerings. A jointly operated secondary program 
244.28 	seeking funding under section 123A.485 must demonstrate to the commissioner's 
244.29 	satisfaction that the jointly operated program provides enhanced learning opportunities and 
244.30 	broader curriculum offerings to the students attending that program. The commissioner 
245.1 	must approve or disapprove a cooperative secondary program within 60 days of receipt of 
245.2 	an application.
245.3 		Subd. 3.Transfer of employees. If an employee is transferred between two 
245.4 	employer members of the joint powers agreement under this section, the employee's 
245.5 	length of service under section 122A.40, subdivision 5, remains uninterrupted. The 
245.6 	employee shall receive credit on the receiving district's salary schedule for the employee's 
245.7 	educational attainment and years of continuous service in the sending district, or shall 
245.8 	receive a comparable salary, whichever is greater. The employee shall receive credit for 
245.9 	accrued sick leave and rights to severance benefits as if the employee had been employed 
245.10 	by the receiving district during the employee's years of employment in the sending district.
245.11 		Subd. 4.Revenue. An approved program that is jointly operated under this section 
245.12 	is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections 
245.13 	123A.44 to 123A.446.
245.14 		Subd. 5.Duty to maintain elementary and secondary schools met. A school 
245.15 	district operating a joint facility under this section meets the requirements of section 
245.16 	123A.64.
245.17 		Subd. 6.Estimated market value limit exclusion. Bonds for a cooperative facility 
245.18 	operated under this section issued by a member school district are not subject to the net 
245.19 	debt limit under section 475.53, subdivision 4. 
245.20 		Subd. 7.Allocation of levy authority for joint facility. For purposes of determining 
245.21 	each member district's school levy, a jointly operated secondary program may allocate 
245.22 	program costs to each member district according to the joint powers agreement and each 
245.23 	member district may include those costs in its tax levy. The joint powers agreement may 
245.24 	choose to allocate costs on any basis adopted as part of the joint powers agreement.
245.25 		Subd. 8.Effect of consolidation. The joint powers agreement may allow member 
245.26 	school districts that choose to consolidate to continue to certify levies separately based on 
245.27 	each component district's characteristics.
245.28 		Subd. 9.Bonds. A joint powers district formed under this section may issue bonds 
245.29 	according to section 123A.78 or its member districts may issue bonds individually after 
245.30 	complying with this subdivision. The joint powers board must submit the project for 
245.31 	review and comment under section 123B.71. The joint powers board must hold a hearing 
245.32 	on the proposal. If the bonds are not issued under section 123A.78, each member district 
245.33 	of the joint powers district must submit the question of authorizing borrowing of funds for 
245.34 	the project to the voters of the district at a special election. The question submitted shall 
245.35 	state the total amount of funding needed from that district. The member district may issue 
245.36 	the bonds according to chapter 475 and certify the levy required by section 475.61 only if 
246.1 	a majority of those voting on the question in that district vote in the affirmative and only 
246.2 	after the board has adopted a resolution pledging the full faith and credit of that unit. The 
246.3 	resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy 
246.4 	shortages that, together with other funds available, would allow the member school board 
246.5 	to pay the principal and interest on the obligations. The clerk of the joint powers board 
246.6 	must certify the vote of any bond elections to the commissioner. Bonds issued under this 
246.7 	section first qualify for debt service equalization aid in fiscal year 2018.
246.8 		Subd. 10.Election. A district entering into a joint powers agreement under this 
246.9 	section may conduct a referendum seeking approval for a new facility. This election may 
246.10 	be held separately or at the same time as a bond election under subdivision 9. If the 
246.11 	election is held at the same time, the questions may be asked separately or as a conjunctive 
246.12 	question. The question must be approved by a majority of those voting on the question. 
246.13 	If asked separately and the question fails, a district may not proceed with the sale of 
246.14 	bonds according to subdivision 9.

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

246.16 	Sec. 2. Minnesota Statutes 2012, section 123A.64, is amended to read:
246.17 	123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY 
246.18 	SCHOOLS.
246.19 	Each district must maintain classified elementary and secondary schools, grades 1 
246.20 	through 12, unless the district is exempt according to section 123A.61 or 123A.62, has 
246.21 	made an agreement with another district or districts as provided in sections 123A.30, 
246.22 	123A.32, or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a 
246.23 	grant under sections 123A.441 to 123A.446, or has formed a cooperative under section 
246.24 	123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or 
246.25 	123A.32 must operate a school with the number of grades required by those sections. A 
246.26 	district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or 
246.27 	has received a grant under sections 123A.441 to 123A.446 must operate a school for the 
246.28 	grades not included in the agreement, but not fewer than three grades.

246.29 	Sec. 3. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is 
246.30 	amended to read:
246.31 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
246.32 	revenue of a district is defined as follows:
247.1 	(1) the amount needed to produce between five and six percent in excess of the 
247.2 	amount needed to meet when due the principal and interest payments on the obligations 
247.3 	of the district for eligible projects according to subdivision 2, including the amounts 
247.4 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
247.5 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
247.6 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
247.7 	5, paragraph (a), minus
247.8 	(2) the amount of debt service excess levy reduction for that school year calculated 
247.9 	according to the procedure established by the commissioner.
247.10 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
247.11 	(1) obligations under section 123B.61;
247.12 	(2) the part of debt service principal and interest paid from the taconite environmental 
247.13 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
247.14 	taconite payments from the Iron Range school consolidation and cooperatively operated 
247.15 	school account under section 298.28, subdivision 7a;
247.16 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
247.17 	amended by Laws 1992, chapter 499, article 5, section 24; and
247.18 	(4) obligations under section 123B.62; and
247.19 	(5) obligations equalized under section 123B.535.
247.20 	(c) For purposes of this section, if a preexisting school district reorganized under 
247.21 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
247.22 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
247.23 	service equalization aid must be computed separately for each of the preexisting districts.
247.24 	(d) For purposes of this section, the adjusted net tax capacity determined according 
247.25 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
247.26 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

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

247.28 	Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is 
247.29 	amended to read:
247.30 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
247.31 	district equals the sum of the first tier equalized debt service levy and the second tier 
247.32 	equalized debt service levy.
247.33 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
247.34 	service equalization revenue times the lesser of one or the ratio of:
248.1 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
248.2 	the year before the year the levy is certified by the adjusted pupil units in the district for 
248.3 	the school year ending in the year prior to the year the levy is certified; to
248.4 	(2) $3,550 $3,400 in fiscal year 2016 and $4,430 in fiscal year 2017 and later.
248.5 	(c) A district's second tier equalized debt service levy equals the district's second tier 
248.6 	debt service equalization revenue times the lesser of one or the ratio of:
248.7 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
248.8 	the year before the year the levy is certified by the adjusted pupil units in the district for 
248.9 	the school year ending in the year prior to the year the levy is certified; to
248.10 	(2) $7,900 $8,000.

248.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
248.12 	and later.

248.13 	Sec. 5. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
248.14 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible natural 
248.15 	disaster debt service revenue of a district is defined as the amount needed to produce 
248.16 	between five and six percent in excess of the amount needed to meet when due the 
248.17 	principal and interest payments on the obligations of the district that would otherwise 
248.18 	qualify under section 123B.53 under the following conditions:
248.19 	(1) the district was impacted by a natural disaster event or area occurring January 
248.20 	1, 2005, or later, as declared by the President of the United States of America, which is 
248.21 	eligible for Federal Emergency Management Agency payments;
248.22 	(2) the natural disaster caused $500,000 or more in damages to school district 
248.23 	buildings; and
248.24 	(3) the repair and replacement costs are not covered by insurance payments or 
248.25 	Federal Emergency Management Agency payments.
248.26 	(b) For purposes of this section, the adjusted net tax capacity equalizing factor 
248.27 	equals the quotient derived by dividing the total adjusted net tax capacity of all school 
248.28 	districts in the state for the year before the year the levy is certified by the total number of 
248.29 	adjusted pupil units in the state for the year prior to the year the levy is certified.
248.30 	(c) For purposes of this section, the adjusted net tax capacity determined according 
248.31 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
248.32 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.
248.33 		Subd. 2.Notification. A district eligible for natural disaster debt service 
248.34 	equalization revenue under subdivision 1 must notify the commissioner of the amount of 
249.1 	its intended natural disaster debt service revenue calculated under subdivision 1 for all 
249.2 	bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
249.3 		Subd. 3.Natural disaster debt service equalization revenue. The debt service 
249.4 	equalization revenue of a district equals the greater of zero or the eligible debt service 
249.5 	revenue, minus the greater of zero or the difference between:
249.6 	(1) the amount raised by a levy of ten percent times the adjusted net tax capacity 
249.7 	of the district; and
249.8 	(2) the district's eligible debt service revenue under section 123B.53.
249.9 		Subd. 4.Equalized natural disaster debt service levy. A district's equalized 
249.10 	natural disaster debt service levy equals the district's natural disaster debt service 
249.11 	equalization revenue times the lesser of one or the ratio of:
249.12 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
249.13 	the year before the year the levy is certified by the adjusted pupil units in the district for 
249.14 	the school year ending in the year prior to the year the levy is certified; to
249.15 	(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
249.16 		Subd. 5.Natural disaster debt service equalization aid. A district's natural 
249.17 	disaster debt service equalization aid equals the difference between the district's natural 
249.18 	disaster debt service equalization revenue and the district's equalized natural disaster 
249.19 	debt service levy.
249.20 		Subd. 6.Natural disaster debt service equalization aid payment schedule. Debt 
249.21 	service equalization aid must be paid according to section 127A.45, subdivision 10.

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

249.24 	Sec. 6. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
249.25 	123B.54 DEBT SERVICE APPROPRIATION.
249.26 	(a) The amount necessary to make debt service equalization aid payments under 
249.27 	section sections123B.53and 123B.535 is annually appropriated from the general fund to 
249.28 	the commissioner of education.
249.29 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
249.30 	money specifically appropriated for the same purpose in any year from any state fund.

249.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
249.32 	and later.

249.33 	Sec. 7. Minnesota Statutes 2012, section 123B.57, subdivision 6, is amended to read:
250.1 		Subd. 6.Uses of health and safety revenue. (a) Health and safety revenue may be 
250.2 	used only for approved expenditures necessary for the correction of fire and life safety 
250.3 	hazards; design, purchase, installation, maintenance, and inspection of fire protection and 
250.4 	alarm equipment; purchase or construction of appropriate facilities for the storage of 
250.5 	combustible and flammable materials; inventories and facility modifications not related 
250.6 	to a remodeling project to comply with lab safety requirements under section 121A.31; 
250.7 	inspection, testing, repair, removal or encapsulation, and disposal of asbestos-containing 
250.8 	building materials; cleanup and disposal of polychlorinated biphenyls; cleanup and 
250.9 	disposal of hazardous and infectious wastes; cleanup, removal, disposal, and repairs 
250.10 	related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, 
250.11 	and special fuel, as defined in section 296A.01; correction of occupational safety and 
250.12 	health administration regulated hazards; indoor air quality inspections, investigations, and 
250.13 	testing; mold abatement; upgrades or replacement of mechanical ventilation systems 
250.14 	to meet American Society of Heating, Refrigerating and Air Conditioning Engineers 
250.15 	standards and State Mechanical Code; design, materials, and installation of local exhaust 
250.16 	ventilation systems, including required make-up air for controlling regulated hazardous 
250.17 	substances; correction of Department of Health Food Code violations; correction of 
250.18 	swimming pool hazards excluding depth correction; playground safety inspections, 
250.19 	repair of unsafe outdoor playground equipment, and the installation of impact surfacing 
250.20 	materials; bleacher repair or rebuilding to comply with the order of a building code 
250.21 	inspector under section 326B.112; testing and mitigation of elevated radon hazards; lead 
250.22 	testing; copper in water testing; cleanup after major weather-related disasters or flooding; 
250.23 	reduction of excessive organic and inorganic levels in wells and capping of abandoned 
250.24 	wells; installation and testing of boiler backflow valves to prevent contamination of 
250.25 	potable water; vaccinations, titers, and preventative supplies for bloodborne pathogen 
250.26 	compliance; costs to comply with the Janet B. Johnson Parents' Right to Know Act; 
250.27 	automated external defibrillators and other emergency plan equipment and supplies 
250.28 	specific to the district's emergency action plan; compliance with the National Emission 
250.29 	Standards for Hazardous Air Pollutants for school generators established by the 
250.30 	United States Environmental Protection Agency; and health, safety, and environmental 
250.31 	management costs associated with implementing the district's health and safety program 
250.32 	including costs to establish and operate safety committees, in school buildings or property 
250.33 	owned or being acquired by the district. Testing and calibration activities are permitted for 
250.34 	existing mechanical ventilation systems at intervals no less than every five years.
250.35 	(b) For fiscal years 2014 through 2017, a school district must not include expenses 
250.36 	related to emission compliance projects for school generators in its health and safety 
251.1 	revenue unless it reduces its approved spending on other qualified health and safety 
251.2 	projects by the same amount.

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

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

251.21 	Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
251.22 		Subd. 9.Information required. A school board proposing to construct, expand, 
251.23 	or remodel a facility described in that requires a review and comment under subdivision 
251.24 	8 shall submit to the commissioner a proposal containing information including at least 
251.25 	the following:
251.26 	(1) the geographic area and population to be served, preschool through grade 12 
251.27 	student enrollments for the past five years, and student enrollment projections for the 
251.28 	next five years;
251.29 	(2) a list of existing facilities by year constructed, their uses, and an assessment of 
251.30 	the extent to which alternate facilities are available within the school district boundaries 
251.31 	and in adjacent school districts;
251.32 	(3) a list of the specific deficiencies of the facility that demonstrate the need for a 
251.33 	new or renovated facility to be provided, the process used to determine the deficiencies, a 
251.34 	list of those deficiencies that will and will not be addressed by the proposed project, and a 
252.1 	list of the specific benefits that the new or renovated facility will provide to the students, 
252.2 	teachers, and community users served by the facility;
252.3 	(4) the relationship of the project to any priorities established by the school district, 
252.4 	educational cooperatives that provide support services, or other public bodies in the 
252.5 	service area;
252.6 	(5) a description of the pedestrian, bicycle, and transit connections between the 
252.7 	school and nearby residential areas that make it easier for children, teachers, and parents 
252.8 	to get to the school by walking, bicycling, and taking transit;
252.9 	(6) a specification of how the project maximizes the opportunity for cooperative use 
252.10 	of existing park, recreation, and other public facilities and whether and how the project 
252.11 	will increase collaboration with other governmental or nonprofit entities;
252.12 	(7) (4) a description of the project, including the specification of site and outdoor 
252.13 	space acreage and square footage allocations for classrooms, laboratories, and support 
252.14 	spaces; estimated expenditures for the major portions of the project; and the dates the 
252.15 	project will begin and be completed;
252.16 	(8) (5) a specification of the source of financing the project, including applicable 
252.17 	statutory citations; the scheduled date for a bond issue or school board action; a schedule 
252.18 	of payments, including debt service equalization aid; and the effect of a bond issue on 
252.19 	local property taxes by the property class and valuation;
252.20 	(9) an analysis of how the proposed new or remodeled facility will affect school 
252.21 	district operational or administrative staffing costs, and how the district's operating budget 
252.22 	will cover any increased operational or administrative staffing costs;
252.23 	(10) a description of the consultation with local or state transportation officials 
252.24 	on multimodal school site access and safety issues, and the ways that the project will 
252.25 	address those issues;
252.26 	(11) a description of how indoor air quality issues have been considered and a 
252.27 	certification that the architects and engineers designing the facility will have professional 
252.28 	liability insurance;
252.29 	(12) as required under section 123B.72, for buildings coming into service after July 1, 
252.30 	2002, a certification that the plans and designs for the extensively renovated or new facility's 
252.31 	heating, ventilation, and air conditioning systems will meet or exceed code standards; will 
252.32 	provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and 
252.33 	will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
252.34 	(13) a specification of any desegregation requirements that cannot be met by any 
252.35 	other reasonable means;
253.1 	(14) a specification of how the facility will utilize environmentally sustainable 
253.2 	school facility design concepts;
253.3 	(15) a description of how the architects and engineers have considered the American 
253.4 	National Standards Institute Acoustical Performance Criteria, Design Requirements 
253.5 	and Guidelines for Schools of the maximum background noise level and reverberation 
253.6 	times; and
253.7 	(16) any existing information from the relevant local unit of government about the 
253.8 	cumulative costs to provide infrastructure to serve the school, such as utilities, sewer, 
253.9 	roads, and sidewalks.
253.10 	(6) documents obligating the school district and contractors to comply with items (i) 
253.11 	to (vii) in planning and executing the project:
253.12 	(i) section 471.345 governing municipal contracts;
253.13 	(ii) sustainable design;
253.14 	(iii) school facility commissioning under section 123B.72 certifying the plans and 
253.15 	designs for the heating, ventilating, air conditioning, and air filtration for an extensively 
253.16 	renovated or new facility meet or exceed current code standards, including the ASHRAE 
253.17 	air filtration standard 52.1;
253.18 	(iv) American National Standards Institute Acoustical Performance Criteria, Design 
253.19 	Requirements and Guidelines for Schools on maximum background noise level and 
253.20 	reverberation times;
253.21 	(v) State Fire Code;
253.22 	(vi) chapter 326B governing building codes; and
253.23 	(vii) consultation with affected government units about the impact of the project 
253.24 	on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic, 
253.25 	access to mass transit, and safe access for pedestrians and cyclists.

253.26 	Sec. 10. Minnesota Statutes 2012, section 123B.72, subdivision 1, is amended to read:
253.27 		Subdivision 1.Application. This section applies to the installation or retrofitting of 
253.28 	heating, ventilation, and air conditioning systems for which review and comment of the 
253.29 	project under section 123B.71 has been requested after July 1, 1997 projects where the 
253.30 	total project cost per site exceeds $1,400,000.

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

253.32 	Sec. 11. Minnesota Statutes 2012, section 123B.72, subdivision 3, is amended to read:
253.33 		Subd. 3.Certification. Prior to occupying or reoccupying a school facility affected 
253.34 	by this section, a school board or its designee shall submit a document prepared by a 
254.1 	system inspector to the building official or to the commissioner, verifying that the facility's 
254.2 	heating, ventilation, and air conditioning system has been installed and operates according 
254.3 	to design specifications and code, according to section 123B.71, subdivision 9, clause (12)
254.4 	 (6), item (iii). A systems inspector shall also verify that the facility's design will provide 
254.5 	the ability for monitoring of outdoor airflow and total airflow of ventilation systems in 
254.6 	new school facilities and that any heating, ventilation, or air conditioning system that is 
254.7 	installed or modified for a project subject to this section must provide a filtration system 
254.8 	with a current ASHRAE standard.

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

254.10 	Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d, 
254.11 	is amended to read:
254.12 		Subd. 2d.Declining enrollment revenue. (a) A school district's declining 
254.13 	enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the 
254.14 	formula allowance for that year and (2) the difference between the adjusted pupil units for 
254.15 	the preceding year and the adjusted pupil units for the current year.
254.16 	(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil 
254.17 	enrolled at the Crosswinds school shall not generate declining enrollment revenue for the 
254.18 	district or charter school in which the pupil was last counted in average daily membership.

254.19 	EFFECTIVE DATE. This section is effective July 1, 2014, if but only if the 
254.20 	Crosswinds school is conveyed to the Perpich Center for Arts Education by an enactment 
254.21 	during the 2014 regular legislative session.

254.22 	Sec. 13. Minnesota Statutes 2013 Supplement, section 126C.40, subdivision 1, is 
254.23 	amended to read:
254.24 		Subdivision 1.To lease building or land. (a) When an independent or a special 
254.25 	school district or a group of independent or special school districts finds it economically 
254.26 	advantageous to rent or lease a building or land for any instructional purposes or for 
254.27 	school storage or furniture repair, and it determines that the operating capital revenue 
254.28 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
254.29 	apply to the commissioner for permission to make an additional capital expenditure levy 
254.30 	for this purpose. An application for permission to levy under this subdivision must contain 
254.31 	financial justification for the proposed levy, the terms and conditions of the proposed 
254.32 	lease, and a description of the space to be leased and its proposed use.
255.1 	(b) The criteria for approval of applications to levy under this subdivision must 
255.2 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
255.3 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
255.4 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
255.5 	the proposed lease to the space needs and the financial condition of the district. The 
255.6 	commissioner must not authorize a levy under this subdivision in an amount greater than 
255.7 	the cost to the district of renting or leasing a building or land for approved purposes. 
255.8 	The proceeds of this levy must not be used for custodial or other maintenance services. 
255.9 	A district may not levy under this subdivision for the purpose of leasing or renting a 
255.10 	district-owned building or site to itself.
255.11 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
255.12 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
255.13 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
255.14 	building addition or additions used primarily for regular kindergarten, elementary, or 
255.15 	secondary instruction that contains more than 20 percent of the square footage of the 
255.16 	previously existing building.
255.17 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
255.18 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
255.19 	is needed by the district to make payments required by a lease purchase agreement, 
255.20 	installment purchase agreement, or other deferred payments agreement authorized by law, 
255.21 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
255.22 	the commissioner under this paragraph may be in the amount needed by the district to 
255.23 	make payments required by a lease purchase agreement, installment purchase agreement, 
255.24 	or other deferred payments agreement authorized by law, provided that any agreement 
255.25 	include a provision giving the school districts the right to terminate the agreement 
255.26 	annually without penalty.
255.27 	(e) The total levy under this subdivision for a district for any year must not exceed 
255.28 	$162 $212 times the adjusted pupil units for the fiscal year to which the levy is attributable.
255.29 	(f) For agreements for which a review and comment have been submitted to the 
255.30 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
255.31 	this subdivision excludes expenditures on stadiums.
255.32 	(g) The commissioner of education may authorize a school district to exceed the 
255.33 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
255.34 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
255.35 	for not more than five years if the district meets the following criteria:
256.1 	(1) the school district has been experiencing pupil enrollment growth in the 
256.2 	preceding five years;
256.3 	(2) the purpose of the increased levy is in the long-term public interest;
256.4 	(3) the purpose of the increased levy promotes colocation of government services; and
256.5 	(4) the purpose of the increased levy is in the long-term interest of the district by 
256.6 	avoiding over construction of school facilities.
256.7 	(h) A school district that is a member of an intermediate school district may include 
256.8 	in its authority under this section the costs associated with leases of administrative and 
256.9 	classroom space for intermediate school district programs. This authority must not exceed 
256.10 	$46 $65 times the adjusted pupil units of the member districts. This authority is in addition 
256.11 	to any other authority authorized under this section.
256.12 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
256.13 	2012 to 2023, a district that is a member of the "Technology and Information Education 
256.14 	Systems" data processing joint board, that finds it economically advantageous to enter into 
256.15 	a lease agreement to finance improvements to a building and land for a group of school 
256.16 	districts or special school districts for staff development purposes, may levy for its portion 
256.17 	of lease costs attributed to the district within the total levy limit in paragraph (e). The total 
256.18 	levy authority under this paragraph shall not exceed $632,000.
256.19 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
256.20 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
256.21 	the commissioner that the lease cost for the administrative space is no greater than the 
256.22 	lease cost for instructional space that the district would otherwise lease. The commissioner 
256.23 	must deny this levy authority unless the district passes a resolution stating its intent to 
256.24 	lease instructional space under this section if the commissioner does not grant authority 
256.25 	under this paragraph. The resolution must also certify that the lease cost for administrative 
256.26 	space under this paragraph is no greater than the lease cost for the district's proposed 
256.27 	instructional lease.

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

256.29 	Sec. 14. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is 
256.30 	amended to read:
256.31 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
256.32 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
256.33 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
256.34 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
256.35 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 
257.1 	to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon 
257.2 	severed mineral values must reduce the levies authorized by this chapter and chapters 
257.3 	120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the 
257.4 	previous year's revenue specified under this clause and the amount attributable to the same 
257.5 	production year distributed to the cities and townships within the school district under 
257.6 	section 298.28, subdivision 2, paragraph (c).
257.7 	(3) The amount of any voter approved referendum, facilities down payment, and 
257.8 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
257.9 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
257.10 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
257.11 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
257.12 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
257.13 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
257.14 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
257.15 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
257.16 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
257.17 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
257.18 	reduce any voter approved debt levies.
257.19 	(4) Before computing the reduction pursuant to this subdivision of the health and 
257.20 	safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner 
257.21 	shall ascertain from each affected school district the amount it proposes to levy under 
257.22 	each section or subdivision. The reduction shall be computed on the basis of the amount 
257.23 	so ascertained.
257.24 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
257.25 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
257.26 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
257.27 	year to the cities and townships within the school district in the proportion that their 
257.28 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
257.29 	the school district for property taxes payable in the year prior to distribution. No city or 
257.30 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
257.31 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
257.32 	towns under this paragraph to the county auditor by September 30 of the year preceding 
257.33 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
257.34 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
257.35 	and towns shall be made at the times provided under section 298.27.

258.1 	Sec. 15. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
258.2 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
258.3 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
258.4 	any taxable year is changed after the taxes for that year have been spread by the county 
258.5 	auditor and the local tax rate as determined by the county auditor based upon the original 
258.6 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
258.7 	prior to February 1 of each year, certify to the commissioner of education the amount of 
258.8 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
258.9 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
258.10 	calculated according to the provisions of this subdivision. This amount shall be deducted 
258.11 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
258.12 	adjustment must be the product of:
258.13 	(1) the net revenue loss as certified by the county auditor, times
258.14 	(2) the ratio of:
258.15 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
258.16 	according to the following:
258.17 	(A) section 123B.57, if the district received health and safety aid according to that 
258.18 	section for the second preceding year;
258.19 	(B) section 124D.20, if the district received aid for community education programs 
258.20 	according to that section for the second preceding year;
258.21 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
258.22 	education aid according to section 124D.135 for the second preceding year;
258.23 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
258.24 	aid according to that section for the second preceding year;
258.25 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
258.26 	according to section 126C.10, subdivision 13b, in the second preceding year;
258.27 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
258.28 	section 126C.10, subdivision 30, in the second preceding year;
258.29 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
258.30 	to section 126C.10, subdivision 33, in the second preceding year;
258.31 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
258.32 	aid according to section 123B.53, subdivision 6, in the second preceding year;
258.33 	(I) section 123B.535, subdivision 4, if the district received natural disaster debt 
258.34 	service equalization aid according to section 123B.535, subdivision 5, in the second 
258.35 	preceding year;
259.1 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
259.2 	according to section 124D.22, subdivision 4, in the second preceding year;
259.3 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
259.4 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
259.5 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
259.6 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
259.7 	(a), in the second preceding year; to
259.8 	(ii) the total amount of the district's certified levy in the third preceding December, 
259.9 	plus or minus auditor's adjustments.

259.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
259.11 	and later.

259.12 	Sec. 16. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
259.13 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
259.14 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
259.15 	decertification of a tax increment district, the school district's aid and levy limitations 
259.16 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
259.17 	provisions of this subdivision.
259.18 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
259.19 	equal to the product of:
259.20 	(1) the amount of the payment of excess tax increment to the district, times
259.21 	(2) the ratio of:
259.22 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
259.23 	the excess tax increment is paid according to the following:
259.24 	(A) section 123B.57, if the district received health and safety aid according to that 
259.25 	section for the second preceding year;
259.26 	(B) section 124D.20, if the district received aid for community education programs 
259.27 	according to that section for the second preceding year;
259.28 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
259.29 	education aid according to section 124D.135 for the second preceding year;
259.30 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
259.31 	aid according to that section for the second preceding year;
259.32 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
259.33 	according to section 126C.10, subdivision 13b, in the second preceding year;
259.34 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
259.35 	section 126C.10, subdivision 30, in the second preceding year;
260.1 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
260.2 	to section 126C.10, subdivision 33, in the second preceding year;
260.3 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
260.4 	aid according to section 123B.53, subdivision 6, in the second preceding year;
260.5 	(I) section 123B.535, subdivision 4, if the district received natural disaster debt 
260.6 	service equalization aid according to section 123B.535, subdivision 5, in the second 
260.7 	preceding year;
260.8 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
260.9 	according to section 124D.22, subdivision 4, in the second preceding year;
260.10 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
260.11 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
260.12 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
260.13 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
260.14 	(a), in the second preceding year; to
260.15 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
260.16 	auditor's adjustments.
260.17 	(c) An amount must be subtracted from the school district's levy limitation for the 
260.18 	next levy certified equal to the difference between:
260.19 	(1) the amount of the distribution of excess increment; and
260.20 	(2) the amount subtracted from aid pursuant to clause (a).
260.21 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
260.22 	for the fiscal year specified or to the levy specified, the reductions must be made from 
260.23 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
260.24 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
260.25 	this subdivision.
260.26 	(d) This subdivision applies only to the total amount of excess increments received 
260.27 	by a district for a calendar year that exceeds $25,000.

260.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
260.29 	and later.

260.30 	Sec. 17. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
260.31 		Subd. 3.Powers and duties of board. (a) The board has the powers necessary for 
260.32 	the care, management, and control of the Perpich Center for Arts Education and any other 
260.33 	school authorized in this chapter, and all its their real and personal property. The powers 
260.34 	shall include, but are not limited to, those listed in this subdivision.
261.1 	(b) The board may employ and discharge necessary employees, and contract for 
261.2 	other services to ensure the efficient operation of the Center for Arts Education and any 
261.3 	other school authorized in this chapter.
261.4 	(c) The board may receive and award grants. The board may establish a charitable 
261.5 	foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for 
261.6 	educational purposes and hold, manage, invest, and dispose of them and the proceeds 
261.7 	and income of them according to the terms and conditions of the gift, grant, bequest, or 
261.8 	devise and its acceptance. The board must adopt internal procedures to administer and 
261.9 	monitor aids and grants.
261.10 	(d) The board may establish or coordinate evening, continuing education, extension, 
261.11 	and summer programs for teachers and pupils.
261.12 	(e) The board may identify pupils who have artistic talent, either demonstrated or 
261.13 	potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more 
261.14 	than one art form.
261.15 	(f) The board must educate pupils with artistic talent by providing:
261.16 	(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th 
261.17 	grades. The total number of pupils accepted under this clause and clause (2) shall not 
261.18 	exceed 310;
261.19 	(2) additional instruction to pupils for a 13th grade. Pupils eligible for this 
261.20 	instruction are those enrolled in 12th grade who need extra instruction and who apply 
261.21 	to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes 
261.22 	established by the board;
261.23 	(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
261.24 	(4) summer arts institutes for pupils in grades 9 to 12;
261.25 	(5) artist mentor and extension programs in regional sites; and
261.26 	(6) teacher education programs for indirect curriculum delivery.
261.27 	(g) The board may determine the location for the Perpich Center for Arts Education 
261.28 	and any additional facilities related to the center, including the authority to lease a 
261.29 	temporary facility.
261.30 	(h) The board must plan for the enrollment of pupils on an equal basis from each 
261.31 	congressional district.
261.32 	(i) The board may establish task forces as needed to advise the board on policies and 
261.33 	issues. The task forces expire as provided in section 15.059, subdivision 6.
261.34 	(j) The board may request the commissioner of education for assistance and services.
261.35 	(k) The board may enter into contracts with other public and private agencies 
261.36 	and institutions for residential and building maintenance services if it determines that 
262.1 	these services could be provided more efficiently and less expensively by a contractor 
262.2 	than by the board itself. The board may also enter into contracts with public or private 
262.3 	agencies and institutions, school districts or combinations of school districts, or service 
262.4 	cooperatives to provide supplemental educational instruction and services.
262.5 	(l) The board may provide or contract for services and programs by and for the 
262.6 	Center for Arts Education, including a store, operating in connection with the center; 
262.7 	theatrical events; and other programs and services that, in the determination of the board, 
262.8 	serve the purposes of the center.
262.9 	(m) The board may provide for transportation of pupils to and from the Center for 
262.10 	Arts Education for all or part of the school year, as the board considers advisable and 
262.11 	subject to its rules. Notwithstanding any other law to the contrary, the board may charge a 
262.12 	reasonable fee for transportation of pupils. Every driver providing transportation of pupils 
262.13 	under this paragraph must possess all qualifications required by the commissioner of 
262.14 	education. The board may contract for furnishing authorized transportation under rules 
262.15 	established by the commissioner of education and may purchase and furnish gasoline to a 
262.16 	contract carrier for use in the performance of a contract with the board for transportation 
262.17 	of pupils to and from the Center for Arts Education. When transportation is provided, 
262.18 	scheduling of routes, establishment of the location of bus stops, the manner and method of 
262.19 	transportation, the control and discipline of pupils, and any other related matter is within 
262.20 	the sole discretion, control, and management of the board.
262.21 	(n) The board may provide room and board for its pupils. If the board provides room 
262.22 	and board, it shall charge a reasonable fee for the room and board. The fee is not subject 
262.23 	to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
262.24 	(o) The board may establish and set fees for services and programs. If the board sets 
262.25 	fees not authorized or prohibited by the Minnesota public school fee law, it may do so 
262.26 	without complying with the requirements of section 123B.38.
262.27 	(p) The board may apply for all competitive grants administered by agencies of the 
262.28 	state and other government or nongovernment sources.

262.29 	EFFECTIVE DATE. This section is effective the day following the date on 
262.30 	which the Crosswinds school is conveyed to the Perpich Center for Arts Education by 
262.31 	an enactment during the 2014 regular legislative session.

262.32 	Sec. 18. Minnesota Statutes 2012, section 129C.10, is amended by adding a 
262.33 	subdivision to read:
262.34 		Subd. 5a.Interdistrict voluntary integration magnet program. Notwithstanding 
262.35 	Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate 
263.1 	an interdistrict integration magnet program according to section 129C.30. For fiscal year 
263.2 	2016 and later, the board must have an approved achievement and integration plan and 
263.3 	budget under section 124D.861.

263.4 	EFFECTIVE DATE. This section is effective the day following the date on 
263.5 	which the Crosswinds school is conveyed to the Perpich Center for Arts Education by 
263.6 	an enactment during the 2014 regular legislative session.

263.7 	Sec. 19. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
263.8 		Subdivision 1.Definitions. (a) The following terms having the meanings given 
263.9 	them for this chapter.
263.10 	(b) "Board" means the board of directors of the Perpich Center for Arts Education.
263.11 	(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during 
263.12 	the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration 
263.13 	District.
263.14 		Subd. 2.Board to operate the Crosswinds school. The board may operate the 
263.15 	Crosswinds school with the powers and duties granted to it under this chapter. A student 
263.16 	may apply to the Crosswinds school under section 124D.03 and the Crosswinds school 
263.17 	may accept students under that section.
263.18 		Subd. 3.General education funding. General education revenue must be paid to 
263.19 	the Crosswinds school as though it were a district. The general education revenue for each 
263.20 	adjusted pupil unit is the state average general education revenue per pupil unit, plus 
263.21 	the referendum equalization aid allowance in the pupil's district of residence, minus an 
263.22 	amount equal to the product of the formula allowance according to section 126C.10, 
263.23 	subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue, 
263.24 	extended time revenue, pension adjustment revenue, transition revenue, and transportation 
263.25 	sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue, 
263.26 	pension adjustment revenue, and transition revenue as though the school were a school 
263.27 	district. The general education revenue for each extended time pupil unit equals $4,794.
263.28 		Subd. 4.Special education funding. Special education aid must be paid to the 
263.29 	Crosswinds school according to sections 125A.76 and 125A.79, as though it were a 
263.30 	school district. The special education aid paid to the Crosswinds school shall be adjusted 
263.31 	as follows:
263.32 	(1) if the Crosswinds school does not receive general education revenue on behalf of 
263.33 	the student according to subdivision 3, the aid shall be adjusted as provided in section 
263.34 	125A.11; or
264.1 	(2) if the Crosswinds school receives general education revenue on behalf of the 
264.2 	student according to subdivision 3, the aid shall be adjusted as provided in section 
264.3 	127A.47, subdivision 7, paragraphs (b) to (d).
264.4 		Subd. 5.Pupil transportation.  (a) For fiscal year 2015 only, a member district of 
264.5 	Joint Powers District No. 6067, East Metro Integration District, must transport pupils 
264.6 	enrolled at the Crosswinds school in the same manner as they were transported in fiscal 
264.7 	year 2014. 
264.8 	(b) Pupil transportation expenses under this section are reimbursable under section 
264.9 	124D.87.
264.10 		Subd. 6.Achievement and integration aid. For fiscal year 2016 and later, the 
264.11 	Crosswinds school is eligible for achievement and integration aid under section 124D.862 
264.12 	as if it were a school district.
264.13 		Subd. 7.Other aids, grants, revenue. (a) The Crosswinds school is eligible to 
264.14 	receive other aids, grants, and revenue according to chapters 120A to 129C as though it 
264.15 	were a district.
264.16 	(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a 
264.17 	grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue 
264.18 	replaces levy revenue that is not general education revenue, except as otherwise provided 
264.19 	in this section.
264.20 	(c) Federal aid received by the state must be paid to the school if it qualifies for 
264.21 	the aid as though it were a school district.
264.22 	(d) In the year-end report to the commissioner of education, the Crosswinds school 
264.23 	shall report the total amount of funds received from grants and other outside sources.
264.24 		Subd. 8.Year-round programming. The Crosswinds school may operate as a 
264.25 	flexible learning year program under sections 124D.12 to 124D.127.
264.26 		Subd. 9.Data requirements. The commissioner of education shall require the 
264.27 	Crosswinds school to follow the budget and accounting procedures required for school 
264.28 	districts and the Crosswinds school shall report all data to the Department of Education in 
264.29 	the form and manner required by the commissioner.

264.30 	EFFECTIVE DATE. This section is effective July 1, 2014, if, but only if, the 
264.31 	Crosswinds school is conveyed to the Perpich Center for Arts Education by an enactment 
264.32 	during the 2014 regular legislative session.

264.33 	Sec. 20. Minnesota Statutes 2012, section 298.28, subdivision 7a, as added by Laws 
264.34 	2014, chapter 150, article 6, section 13, is amended to read:
265.1 		Subd. 7a.Iron Range school consolidation and cooperatively operated school 
265.2 	account. The following amounts must be allocated to the Iron Range Resources and 
265.3 	Rehabilitation Board to be deposited in the Iron Range school consolidation and 
265.4 	cooperatively operated school account that is hereby created:
265.5 	(1) ten cents per taxable ton of the tax imposed under section 298.24;
265.6 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
265.7 	(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the 
265.8 	increased tax proceeds attributable to the increase in the implicit price deflator as provided 
265.9 	in section 298.24, subdivision 1.
265.10 	Expenditures from this account shall be made only to provide disbursements to 
265.11 	assist school districts with the payment of bonds that were issued for qualified school 
265.12 	projects, or for any other disbursement as approved by the Iron Range Resources and 
265.13 	Rehabilitation Board. For purposes of this section, "qualified school projects" means 
265.14 	school projects within the taconite assistance area as defined in section 273.1341, that 
265.15 	were (1) approved, by referendum, after December 7, 2009; and (2) approved by the 
265.16 	commissioner of education pursuant to section 123B.71.
265.17 	Beginning in fiscal year 2019, the disbursement to school districts for payments for 
265.18 	bonds issued under section 123A.482, subdivision 9, must be increased each year to 
265.19 	offset any reduction in debt service equalization aid that the school district qualifies for in 
265.20 	that year, under section 123B.53, subdivision 6, compared with the amount the school 
265.21 	district qualified for in fiscal year 2018.
265.22 	No expenditure under this section shall be made unless approved by seven members 
265.23 	of the Iron Range Resources and Rehabilitation Board.

265.24 	EFFECTIVE DATE. This section is effective for production year 2014 and 
265.25 	thereafter.

265.26 	Sec. 21. HARAMBEE COMMUNITY SCHOOL TRANSITION.
 265.27 		Subdivision 1.Student enrollment. A student enrolled in the Harambee community 
265.28 	school during the 2013-2014 school year may continue to enroll in the Harambee 
265.29 	community school in any subsequent year. For the 2014-2015 school year and later, other 
265.30 	students may apply for enrollment under Minnesota Statutes, section 124D.03.
265.31 		Subd. 2.Compensatory revenue; literacy aid; alternative compensation 
265.32 	revenue. For the 2014-2015 school year only, the Department of Education must calculate 
265.33 	compensatory revenue, literacy aid, and alternative compensation revenue for the 
265.34 	Harambee community school based on the October 1, 2013, enrollment counts.
266.1 		Subd. 3.Year-round programming. Harambee community school may operate as 
266.2 	a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
266.3 		Subd. 4.Pupil transportation. The board may transport pupils enrolled in the 
266.4 	2013-2014 school year to and from the Harambee community school in succeeding school 
266.5 	years regardless of the students' districts of residence. Pupil transportation expenses under 
266.6 	this section are reimbursable under Minnesota Statutes, section 124D.87.

266.7 	EFFECTIVE DATE. This section is effective the day following the date on which 
266.8 	the real and personal property of the Harambee community school in Maplewood is 
266.9 	conveyed to Independent School District No. 623, Roseville, by an enactment during the 
266.10 	2014 regular legislative session.

266.11 	Sec. 22. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
 266.12 		Subdivision 1.Student enrollment. Any student enrolled in the Crosswinds school 
266.13 	during the 2013-2014 school year may continue to enroll in the Crosswinds school in 
266.14 	any subsequent year. For the 2014-2015 school year and later, a student may apply for 
266.15 	enrollment to the school under Minnesota Statutes, section 124D.03.
266.16 		Subd. 2.Compensatory revenue, literacy aid, and alternative compensation 
266.17 	revenue. For the 2014-2015 school year only, the Department of Education must calculate 
266.18 	compensatory revenue, literacy aid, and alternative compensation revenue for the 
266.19 	Crosswinds school based on the October 1, 2013, enrollment counts at that site.
266.20 		Subd. 3.Title 1 funding. To the extent possible, the Department of Education 
266.21 	must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding 
266.22 	as if the program were still operated by Joint Powers District No. 6067, East Metro 
266.23 	Integration District.

266.24 	EFFECTIVE DATE. This section is effective the day following the date on 
266.25 	which the Crosswinds school is conveyed to the Perpich Center for Arts Education by 
266.26 	an enactment during the 2014 regular legislative session.

266.27 	Sec. 23. LEASE LEVY; SATELLITE TRANSPORTATION HUB FOR 
266.28 	ROSEMOUNT-APPLE VALLEY-EAGAN SCHOOL DISTRICT.
 266.29 	Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent 
266.30 	School District No. 196, Rosemount-Apple Valley-Eagan, may lease a satellite 
266.31 	transportation hub under Minnesota Statutes, section 126C.40, subdivision 1, if the district 
266.32 	can demonstrate to the satisfaction of the commissioner of education that the satellite 
266.33 	transportation hub will result in a significant financial savings. Levy authority under 
267.1 	this section shall not exceed the total levy authority under Minnesota Statutes, section 
267.2 	126C.40, subdivision 1, paragraph (e).

267.3 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and later.

267.4 	Sec. 24.  REPEALER.
 267.5 	Minnesota Statutes 2012, section 123B.71, subdivisions 1 and 4, are repealed.

267.6 	ARTICLE 19
267.7 	NUTRITION

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

267.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
267.15 	and later.

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

267.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
267.24 	and later.

267.25 	Sec. 3. Minnesota Statutes 2012, section 124D.1158, subdivision 3, is amended to read:
267.26 		Subd. 3.Program reimbursement. Each school year, the state must reimburse 
267.27 	each participating school 30 cents for each reduced-price breakfast and, 55 cents for each 
267.28 	fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid 
267.29 	breakfast served to a kindergarten student.

268.1 	Sec. 4. Minnesota Statutes 2012, section 124D.1158, subdivision 4, is amended to read:
268.2 		Subd. 4.No fees. A school that receives school breakfast aid under this section must 
268.3 	make breakfast available without charge to all participating students in grades 1 to 12 who 
268.4 	qualify for free or reduced price meals and to all kindergarten students.

268.5 	Sec. 5. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
268.6 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
268.7 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

268.8
268.9		$
	13,032,000
12,417,000
	.....
	2014
	
268.10
268.11		$
	13,293,000
16,185,000
	.....
	2015

268.12 	Sec. 6. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
268.13 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
268.14 	Statutes, section 124D.1158:

268.15
268.16		$
	5,711,000
5,308,000
	.....
	2014
	
268.17
268.18		$
	6,022,000
6,176,000
	.....
	2015

268.19 	ARTICLE 20
268.20 	EARLY EDUCATION, COMMUNITY EDUCATION, SELF-SUFFICIENCY 
268.21 	AND LIFELONG LEARNING

268.22 	Section 1. Minnesota Statutes 2012, section 124D.13, subdivision 2, as amended by 
268.23 	Laws 2014, chapter 272, article 1, section 31, is amended to read:
268.24 		Subd. 2.Program requirements. (a) Early childhood family education programs 
268.25 	are programs for children in the period of life from birth to kindergarten, for the parents 
268.26 	and other relatives of these children, and for expectant parents. To the extent that funds 
268.27 	are insufficient to provide programs for all children, early childhood family education 
268.28 	programs should emphasize programming for a child from birth to age three and 
268.29 	encourage parents and other relatives to involve four- and five-year-old children in school 
268.30 	readiness programs, and other public and nonpublic early learning programs. A district 
268.31 	may not limit participation to school district residents. Early childhood family education 
268.32 	programs must provide:
269.1 	(1) programs to educate parents and other relatives about the physical, mental,
269.2 	 cognitive, social, and emotional development of children and to enhance the skills of 
269.3 	parents and other relatives in providing for their children's learning and development;
269.4 	(2) structured learning activities requiring interaction between children and their 
269.5 	parents or relatives;
269.6 	(3) structured learning activities for children that promote children's development 
269.7 	and positive interaction with peers, which are held while parents or relatives attend parent 
269.8 	education classes;
269.9 	(4) information on related community resources;
269.10 	(5) information, materials, and activities that support the safety of children, including 
269.11 	prevention of child abuse and neglect; and
269.12 	(6) a community outreach plan to ensure participation by families who reflect the 
269.13 	racial, cultural, linguistic, and economic diversity of the school district. needs assessment 
269.14 	that identifies new and underserved populations, identifies child and family risk factors, 
269.15 	particularly those that impact children's learning and development, and assesses family 
269.16 	and parenting education needs in the community;
269.17 	(7) programming and services that are tailored to the needs of families and parents 
269.18 	prioritized in the community needs assessment; and
269.19 	(8) provide information about and, if needed, assist in making arrangements for an 
269.20 	early childhood health and developmental screening under sections 121A.16 and 121A.17, 
269.21 	when the child nears the third birthday.
269.22 	Early childhood family education programs should prioritize programming and 
269.23 	services for families and parents identified in the community needs assessment, particularly 
269.24 	those families and parents with children with the most risk factors birth to age three.
269.25 	Early childhood family education programs are encouraged to provide parents of 
269.26 	English learners with translated oral and written information to monitor the program's 
269.27 	impact on their children's English language development, to know whether their children 
269.28 	are progressing in developing their English and native language proficiency, and to 
269.29 	actively engage with and support their children in developing their English and native 
269.30 	language proficiency.
269.31 	The programs must include learning experiences for children, parents, and other 
269.32 	relatives that promote children's early literacy and, where practicable, their native language 
269.33 	skills and activities for children that require substantial involvement of the children's 
269.34 	parents or other relatives. The program may provide parenting education programming or 
269.35 	services to anyone identified in the community needs assessment. Providers must review 
269.36 	the program periodically to assure the instruction and materials are not racially, culturally, 
270.1 	or sexually biased. The programs must encourage parents to be aware of practices that 
270.2 	may affect equitable development of children.
270.3 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
270.4 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
270.5 	placement, excluding parents.

270.6 	Sec. 2. Minnesota Statutes 2012, section 124D.13, subdivision 4, is amended to read:
270.7 		Subd. 4.Home visiting program. A district that levies for home visiting under 
270.8 	section 124D.135, subdivision 6, shall use this revenue to include as part of the early 
270.9 	childhood family education programs a parent education component that is designed to 
270.10 	reach isolated or at-risk families.
270.11 	The home visiting program must use:
270.12 	(1) an established risk assessment tool to determine the family's level of risk
270.13 	 incorporate evidence-informed parenting education practices designed to support the 
270.14 	healthy growth and development of children, with a priority focus on those children 
270.15 	who have high needs;
270.16 	(2) establish clear objectives and protocols for home visits;
270.17 	(3) encourage families to make a transition from home visits to site-based parenting 
270.18 	programs;
270.19 	(4) provide program services that are community-based, accessible, and culturally 
270.20 	relevant; and
270.21 	(5) foster collaboration among existing agencies and community-based organizations 
270.22 	that serve young children and their families, such as public health evidence-based models 
270.23 	of home visiting and Head Start home visiting; and
270.24 	(6) provide information about and assist in making arrangements for an early 
270.25 	childhood health and developmental screening when the child nears his or her third 
270.26 	birthday.
270.27 	Home visitors The home visiting program  should  be provided by licensed parenting 
270.28 	educators, certified family life educators, or professionals with an equivalent license that 
270.29 	reflect the demographic composition of the community to the extent possible.

270.30 	Sec. 3. Minnesota Statutes 2012, section 124D.13, subdivision 9, is amended to read:
270.31 		Subd. 9.District advisory councils. The board must appoint an advisory council 
270.32 	from the area in which the program is provided. A majority of the council must be 
270.33 	parents participating in the program, who represent the demographics of the community. 
270.34 	The district must ensure, to the extent possible, that the council includes representation 
271.1 	of families who are racially, culturally, linguistically, and economically diverse. The 
271.2 	council must assist the board in developing, planning, and monitoring the early childhood 
271.3 	family education program. The council must report to the board and the community 
271.4 	education advisory council.

271.5 	Sec. 4. Minnesota Statutes 2012, section 124D.13, subdivision 13, is amended to read:
271.6 		Subd. 13. Program data submission requirements.  Districts receiving early 
271.7 	childhood family education revenue under section 124D.135 must submit annual program 
271.8 	data, including data that demonstrates the program response to the community needs 
271.9 	assessment,  to the department by July 15 in the form and manner prescribed by the 
271.10 	commissioner.

271.11 	Sec. 5. Minnesota Statutes 2012, section 124D.13, is amended by adding a subdivision 
271.12 	to read:
271.13 		Subd. 14.Supervision. A program provided by a board must be supervised by a 
271.14 	licensed early childhood teacher or a licensed parent educator.

271.15 	Sec. 6. Minnesota Statutes 2012, section 124D.13, is amended by adding a subdivision 
271.16 	to read:
271.17 		Subd. 15.Parenting education transition program. To the extent that funds are 
271.18 	sufficient, early childhood family education may provide parenting education transition 
271.19 	programming for parents of children birth to grade three in districts in which there is a 
271.20 	prekindergarten-grade three initiative in order to facilitate continued parent engagement 
271.21 	in children's learning and development. Early childhood family education programs are 
271.22 	encouraged to develop partnerships to provide a parenting education liaison to providers 
271.23 	of other public and nonpublic early learning programs, such as Head Start, school 
271.24 	readiness, child care, early childhood special education, local public health programs, 
271.25 	and health care providers.

271.26 	Sec. 7. Minnesota Statutes 2012, section 124D.135, subdivision 1, is amended to read:
271.27 		Subdivision 1.Revenue. The revenue for early childhood family education 
271.28 	programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year 
271.29 	2008$120 for fiscal year 2014 and the formula allowance for the year times 0.023 for 
271.30 	fiscal year 2015 and later, times the greater of:
271.31 	(1) 150; or
272.1 	(2) the number of people under five years of age residing in the district on October 1 
272.2 	of the previous school year.

272.3 	Sec. 8. Minnesota Statutes 2012, section 124D.135, subdivision 3, is amended to read:
272.4 		Subd. 3.Early childhood family education levy. (a) By September 30 of each year, 
272.5 	the commissioner shall establish a tax rate for early childhood family education revenue 
272.6 	that raises $22,135,000 in each fiscal year. If the amount of the early childhood family 
272.7 	education levy would exceed the early childhood family education revenue, the early 
272.8 	childhood family education levy must equal the early childhood family education revenue. 
272.9 	A district may not certify an early childhood family education levy unless it has met the 
272.10 	annual program data reporting requirements under section 124D.13, subdivision 13.
272.11 	(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall 
272.12 	establish a tax rate for early education revenue that raises $13,565,000.

272.13 	Sec. 9. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
272.14 		Subd. 2.Amount of aid. (a) A district is eligible to receive school readiness aid 
272.15 	for eligible prekindergarten pupils enrolled in a school readiness program under section 
272.16 	124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been 
272.17 	approved by the commissioner.
272.18 	(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid 
272.19 	equal to:
272.20 	(1) the number of four-year-old children in the district on October 1 for the previous 
272.21 	school year times the ratio of 50 percent of the total school readiness aid for that year to 
272.22 	the total number of four-year-old children reported to the commissioner for the previous 
272.23 	school year; plus
272.24 	(2) the number of pupils enrolled in the school district from families eligible for the 
272.25 	free or reduced school lunch program for the previous school year times the ratio of 
272.26 	50 percent of the total school readiness aid for that year to the total number of pupils 
272.27 	in the state from families eligible for the free or reduced school lunch program for the 
272.28 	previous school year.
272.29 	(c) For fiscal year 2015 and later, the total school readiness aid entitlement equals 
272.30 	$12,170,000.

272.31 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
272.32 	and later.

273.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3, 
273.2 	is amended to read:
273.3 		Subd. 3.Administration. (a) The commissioner shall establish application 
273.4 	timelines and determine the schedule for awarding scholarships that meets operational 
273.5 	needs of eligible families and programs. The commissioner may prioritize applications on 
273.6 	factors including family income, geographic location, and whether the child's family is on a 
273.7 	waiting list for a publicly funded program providing early education or child care services.
273.8 	(b) For fiscal years 2014 and 2015 only, scholarships may be awarded up to not 
273.9 	exceed $5,000 per year for each eligible child per year. For fiscal year 2016 and later, the 
273.10 	commissioner shall establish a target for the average scholarship amount per child based 
273.11 	on the results of the rate survey conducted under section 119B.02.
273.12 	(c) A four-star rated program that has children eligible for a scholarship enrolled 
273.13 	in or on a waiting list for a program beginning in July, August, or September may notify 
273.14 	the commissioner, in the form and manner prescribed by the commissioner, each year 
273.15 	of the program's desire to enhance program services or to serve more children than 
273.16 	current funding provides. The commissioner may designate a predetermined number of 
273.17 	scholarship slots for that program and notify the program of that number. Beginning July 
273.18 	1, 2016, a school district or Head Start program qualifying under this paragraph may 
273.19 	use its established registration process to enroll scholarship recipients and may verify a 
273.20 	scholarship recipient's family income in the same manner as for other program participants.
273.21 	(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has 
273.22 	not been accepted and subsequently enrolled in a rated program within ten months of the 
273.23 	awarding of the scholarship, the scholarship cancels and the recipient must reapply in 
273.24 	order to be eligible for another scholarship. A child may not be awarded more than one 
273.25 	scholarship in a 12-month period.
273.26 	(e) A child who receives a scholarship who has not completed development 
273.27 	screening under sections 121A.16 to 121A.19 must complete that screening within 90 
273.28 	days of first attending an eligible program.
273.29 	(f) For fiscal year 2017 and later, a school district or Head Start program enrolling 
273.30 	scholarship recipients under paragraph (c) may apply to the commissioner, in the form 
273.31 	and manner prescribed by the commissioner, for direct payment of state aid. Upon receipt 
273.32 	of the application, the commissioner must pay each program directly for each approved 
273.33 	scholarship recipient enrolled under paragraph (c) according to the metered payment 
273.34 	system or another schedule established by the commissioner.

274.1 	Sec. 11. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 4, 
274.2 	is amended to read:
274.3 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept 
274.4 	an early childhood education scholarship, a program must:
274.5 	(1) participate in the quality rating and improvement system under section 
274.6 	124D.142; and
274.7 	(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating 
274.8 	and improvement system.
274.9 	(b) Any program accepting scholarships must use the revenue to supplement and not 
274.10 	supplant federal funding.
274.11 	(c) Notwithstanding paragraph (a), all Minnesota early learning foundation 
274.12 	scholarship program pilot sites are eligible to accept an early learning scholarship under 
274.13 	this section.

274.14 	Sec. 12. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, 
274.15 	is amended to read:
274.16 		Subd. 5.Report required. The commissioner shall contract with an independent 
274.17 	contractor to evaluate the early learning scholarship program. The evaluation must 
274.18 	include recommendations regarding the appropriate scholarship amount, efficiency, and 
274.19 	effectiveness of the administration, and impact on kindergarten readiness. By January 
274.20 	15, 2016, the commissioner shall submit a written copy of the evaluation to the chairs 
274.21 	and ranking minority members of the legislative committees and divisions with primary 
274.22 	jurisdiction over kindergarten through grade 12 education.

274.23 	Sec. 13. Minnesota Statutes 2012, section 124D.522, is amended to read:
274.24 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
274.25 	GRANTS.
274.26 	(a) The commissioner, in consultation with the policy review task force under 
274.27 	section 124D.521, may make grants to nonprofit organizations to provide services that 
274.28 	are not offered by a district adult basic education program or that are supplemental to 
274.29 	either the statewide adult basic education program, or a district's adult basic education 
274.30 	program. The commissioner may make grants for: staff development for adult basic 
274.31 	education teachers and administrators; training for volunteer tutors; training, services, and 
274.32 	materials for serving disabled students through adult basic education programs; statewide 
274.33 	promotion of adult basic education services and programs; development and dissemination 
274.34 	of instructional and administrative technology for adult basic education programs; 
275.1 	programs which primarily serve communities of color; adult basic education distance 
275.2 	learning projects, including television instruction programs; and other supplemental 
275.3 	services to support the mission of adult basic education and innovative delivery of adult 
275.4 	basic education services.
275.5 	(b) The commissioner must establish eligibility criteria and grant application 
275.6 	procedures. Grants under this section must support services throughout the state, focus on 
275.7 	educational results for adult learners, and promote outcome-based achievement through 
275.8 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
275.9 	make grants under this section from the state total adult basic education aid set aside for 
275.10 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
275.11 	for supplemental service grants must be used for grants for adult basic education programs 
275.12 	to encourage and support innovations in adult basic education instruction and service 
275.13 	delivery. A grant to a single organization cannot exceed 20 40 percent of the total 
275.14 	supplemental services aid. Nothing in this section prevents an approved adult basic 
275.15 	education program from using state or federal aid to purchase supplemental services.

275.16 	Sec. 14. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, 
275.17 	is amended to read:
275.18 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
275.19 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
275.20 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
275.21 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
275.22 	fiscal years equals:
275.23 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
275.24 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
275.25 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
275.26 	(2) the lesser of:
275.27 	(i) 1.025 1.03; or
275.28 	(ii) the average growth in state total contact hours over the prior ten program years.
275.29 	Beginning in fiscal year 2002, two Three percent of the state total adult basic 
275.30 	education aid must be set aside for adult basic education supplemental service grants 
275.31 	under section 124D.522.
275.32 	(b) The state total adult basic education aid, excluding basic population aid, equals 
275.33 	the difference between the amount computed in paragraph (a), and the state total basic 
275.34 	population aid under subdivision 2.

276.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
276.2 	and later.

276.3 	Sec. 15. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
276.4 		Subd. 3.Program revenue. Adult basic education programs established under 
276.5 	section 124D.52 and approved by the commissioner are eligible for revenue under this 
276.6 	subdivision. For fiscal year 2001 and later, adult basic education revenue for each 
276.7 	approved program equals the sum of:
276.8 	(1) the basic population aid under subdivision 2 for districts participating in the 
276.9 	program during the current program year; plus
276.10 	(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the 
276.11 	ratio of the contact hours for students participating in the program during the first prior 
276.12 	program year to the state total contact hours during the first prior program year; plus
276.13 	(3) eight percent times the amount computed in subdivision 1, paragraph (b), times 
276.14 	the ratio of the enrollment of English learners during the second prior school year in 
276.15 	districts participating in the program during the current program year to the state total 
276.16 	enrollment of English learners during the second prior school year in districts participating 
276.17 	in adult basic education programs during the current program year; plus
276.18 	(4) eight percent times the amount computed in subdivision 1, paragraph (b), times 
276.19 	the ratio of the latest federal census count of the number of adults aged 20 25 or older 
276.20 	with no diploma residing in the districts participating in the program during the current 
276.21 	program year to the latest federal census count of the state total number of adults aged 20
276.22 	 25 or older with no diploma residing in the districts participating in adult basic education 
276.23 	programs during the current program year.

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

276.27
276.28		$
	10,095,000
10,458,000
	.....
	2014
	
276.29
276.30		$
	10,159,000
11,962,000
	.....
	2015
	
276.31 	The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
276.32 	 for 2014.
276.33 	The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
276.34 	 $10,953,000 for 2015.

277.1 	Sec. 17. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
277.2 		Subd. 3.Early childhood family education aid. For early childhood family 
277.3 	education aid under Minnesota Statutes, section 124D.135:

277.4
277.5		$
	22,078,000
22,797,000
	.....
	2014
	
277.6
277.7		$
	22,425,000
 26,651,000
	.....
	2015
	
277.8 	The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
277.9 	 for 2014.
277.10 	The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
277.11 	 $24,453,000 for 2015.

277.12 	Sec. 18. Laws 2013, chapter 116, article 8, section 5, subdivision 8, is amended to read:
277.13 		Subd. 8.Early childhood education learning scholarships. For transfer to 
277.14 	the Office of Early Learning for early learning scholarships under Minnesota Statutes, 
277.15 	section 124D.165:

277.16		$
	23,000,000
	.....
	2014
	
277.17
277.18		$
	23,000,000
 27,650,000
	.....
	2015
	
277.19 	Up to $950,000 each year is for administration of this program.
277.20 	Any balance in the first year does not cancel but is available in the second year.
277.21 	The base for fiscal year 2016 and later is $27,884,000.

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

277.23 	Sec. 19. Laws 2013, chapter 116, article 8, section 5, subdivision 9, is amended to read:
277.24 		Subd. 9.Parent-child home program. For a grant to the parent-child home 
277.25 	program:

277.26		$
	250,000
	.....
	2014
	
277.27
277.28		$
	250,000
350,000
	.....
	2015
	
277.29 	The grant must be used for an evidence-based and research-validated early childhood 
277.30 	literacy and school readiness program for children ages 16 months to four years at its 
277.31 	existing suburban program location. The program must expand to one additional urban 
277.32 	and one additional rural program location for fiscal years 2014 and 2015. The base for 
277.33 	fiscal year 2016 and later is $250,000.

277.34 	Sec. 20. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
278.1 		Subd. 14.Adult basic education aid. For adult basic education aid under 
278.2 	Minnesota Statutes, section 124D.531:

278.3
278.4		$
	47,005,000
48,776,000
	.....
	2014
	
278.5
278.6		$
	48,145,000
48,415,000
	.....
	2015
	
278.7 	The 2014 appropriation includes $6,284,000 $6,278,000 for 2013 and $40,721,000
278.8 	 $42,498,000 for 2014.
278.9 	The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
278.10 	 $43,693,000 for 2015.

278.11 	Sec. 21. APPROPRIATIONS.
 278.12 		Subdivision 1.Department of Education. The sums indicated in this section 
278.13 	are appropriated from the general fund to the Department of Education for the fiscal 
278.14 	year designated.
278.15 		Subd. 2.Northside Achievement Zone. For a grant to the Northside Achievement 
278.16 	Zone.

278.17		$
	350,000
	.....
	2015
	
278.18 	(a) Funds appropriated in this section are to reduce multigenerational poverty and 
278.19 	the educational achievement gap through increased enrollment of families within the zone, 
278.20 	and may be used for Northside Achievement Zone programming and services consistent 
278.21 	with federal Promise Neighborhood program agreements and requirements. The base 
278.22 	appropriation for fiscal year 2016 and later is $200,000.
278.23 	(b) The Northside Achievement Zone shall submit a report to the chairs of the 
278.24 	legislative committees with jurisdiction over early childhood through grade 12 education 
278.25 	policy and finance that, at a minimum, summarizes program activities, specifies 
278.26 	performance measures, and analyzes program outcomes. The report must be submitted by 
278.27 	January 15, 2016.
278.28 		Subd. 3.Saint Paul Promise Neighborhood. For a grant to the Saint Paul Promise 
278.29 	Neighborhood. 

278.30		$
	350,000
	.....
	2015
	
278.31 	(a) Funds appropriated in this section are to reduce multigenerational poverty and 
278.32 	the educational achievement gap through increased enrollment of families within the 
278.33 	zone, and may be used for Saint Paul Promise Neighborhood programming and services 
278.34 	consistent with federal Promise Neighborhood program agreements and requirements.
279.1 	(b) The Saint Paul Promise Neighborhood shall submit a report on January 15, 2016, 
279.2 	to the chairs of the legislative committees with jurisdiction over early childhood through 
279.3 	grade 12 education policy and finance. The report, at a minimum, must summarize 
279.4 	program activities, specify performance measures, and analyze program outcomes.
279.5 	(c) The base appropriation for fiscal year 2016 and later is $200,000.

279.6 	ARTICLE 21
279.7 	STATE AGENCIES

279.8 	Section 1. 2014 H.F. No. 2180, section 11, if enacted, is amended to read:

279.9 	Sec. 11. Minnesota Statutes 2012, section 471.6161, is amended by adding a 
279.10 	subdivision to read:
279.11 		Subd. 8.School districts; group health insurance coverage. (a) Any entity 
279.12 	providing group health insurance coverage to a school district must provide the school 
279.13 	district with school district-specific nonidentifiable aggregate claims records for the most 
279.14 	recent 24 months within 30 days of the request.
279.15 	(b) School districts shall request proposals for group health insurance coverage as 
279.16 	provided in subdivision 2 from a minimum of three potential sources of coverage. One of 
279.17 	these requests must go to an administrator governed by chapter 43A. Entities referenced 
279.18 	in subdivision 1 must respond to requests for proposals received directly from a school 
279.19 	district. School districts that are self-insured must also follow these provisions, except 
279.20 	as provided in paragraph (f). School districts must make requests for proposals at least 
279.21 	150 days prior to the expiration of the existing contract but not more frequently than once 
279.22 	every 24 months. The request for proposals must include the most recently available 
279.23 	24 months of nonidentifiable aggregate claims data. The request for proposals must be 
279.24 	publicly released at or prior to its release to potential sources of coverage.
279.25 	(c) School district contracts for group health insurance must not be longer than 
279.26 	two years unless the exclusive representative of the largest employment group and the 
279.27 	school district agree otherwise.
279.28 	(d) All initial proposals shall be sealed upon receipt until they are all opened no less 
279.29 	than 90 days prior to the plan's renewal date in the presence of up to three representatives 
279.30 	selected by the exclusive representative of the largest group of employees. Section 13.591, 
279.31 	subdivision 3, paragraph (b), applies to data in the proposals. The representatives of 
279.32 	the exclusive representative must maintain the data according to this classification and 
279.33 	are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation 
279.34 	of this requirement.
280.1 	(e) A school district, in consultation with the same representatives referenced in 
280.2 	paragraph (d), may continue to negotiate with any entity that submitted a proposal under 
280.3 	paragraph (d) in order to reduce costs or improve services under the proposal. Following 
280.4 	the negotiations any entity that submitted an initial proposal may submit a final proposal 
280.5 	incorporating the negotiations, which is due no less than 75 days prior to the plan's 
280.6 	renewal date. All the final proposals submitted must be opened at the same time in the 
280.7 	presence of up to three representatives selected by the exclusive representative of the 
280.8 	largest group of employees. Notwithstanding section 13.591, subdivision 3, paragraph (b), 
280.9 	following the opening of the final proposals, all the proposals, including any made under 
280.10 	paragraph (d), and other data submitted in connection with the proposals are public data. 
280.11 	The school district may choose from any of the initial or final proposals without further 
280.12 	negotiations and in accordance with subdivision 5, but not sooner than 15 days after 
280.13 	the proposals become public data.
280.14 	(f) School districts that are self-insured shall follow all of the requirements of this 
280.15 	section, except that:
280.16 	(1) their requests for proposals may be for third-party administrator services, where 
280.17 	applicable;
280.18 	(2) these requests for proposals must be from a minimum of three different sources, 
280.19 	which may include both entities referenced in subdivision 1 and providers of third-party 
280.20 	administrator services;
280.21 	(3) for purposes of fulfilling the requirement to request a proposal for group 
280.22 	insurance coverage from an administrator governed by chapter 43A, self-insured districts 
280.23 	are not required to include in the request for proposal the coverage to be provided;
280.24 	(4) a district that is self-insured on or before the date of enactment, or that is 
280.25 	self-insured with more than 1,000 insured lives, or a district in which the school board 
280.26 	adopted a motion on or before May 14, 2014, to approve a self-insured health care plan 
280.27 	to be effective July 1, 2014, may, but need not, request a proposal from an administrator 
280.28 	governed by chapter 43A;
280.29 	(5) requests for proposals must be sent to providers no less than 90 days prior to 
280.30 	the expiration of the existing contract; and
280.31 	(6) proposals must be submitted at least 60 days prior to the plan's renewal date 
280.32 	and all proposals shall be opened at the same time and in the presence of the exclusive 
280.33 	representative, where applicable.
280.34 	(g) Nothing in this section shall restrict the authority granted to school district boards 
280.35 	of education by section 471.59, except that districts will not be considered self-insured for 
280.36 	purposes of this subdivision solely through participation in a joint powers arrangement.
281.1 	(h) An entity providing group health insurance to a school district under a multiyear 
281.2 	contract must give notice of any rate or plan design changes applicable under the contract 
281.3 	at least 90 days before the effective date of any change. The notice must be given to the 
281.4 	school district and to the exclusive representatives of employees.

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

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

281.8		$
	20,058,000
	.....
	2014
	
281.9281.10
		$
	19,308,000
 19,716,000
	.....
	2015
	
281.11 	Any balance in the first year does not cancel but is available in the second year.
281.12 	(b) $260,000 each year is for the Minnesota Children's Museum.
281.13 	(c) $41,000 each year is for the Minnesota Academy of Science.
281.14 	(d) $50,000 each year is for the Duluth Children's Museum.
281.15 	(e) $618,000 eachin fiscal year 2014 and $718,000 in fiscal year is2015 only are
281.16 	 for the Board of Teaching. Any balance in the first year does not cancel but is available 
281.17 	in the second year.
281.18 	(f) $167,000 eachin fiscal year 2014 and $225,000 in fiscal year is2015 are for 
281.19 	the Board of School Administrators. Any balance in the first year does not cancel but 
281.20 	is available in the second year.
281.21 	(g) $75,000 in fiscal year 2015 only is for The Works Museum.
281.22 	(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center 
281.23 	for hands-on science, technology, engineering, and math (STEM) education.
281.24 	(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263, 
281.25 	section 1.
281.26 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
281.27 	document and its supplements are approved and appropriated and shall be spent as 
281.28 	indicated.
281.29 	(h) (k) None of the amounts appropriated under this subdivision may be used for 
281.30 	Minnesota's Washington, D.C. office.
281.31 	(i) (l) $250,000 each year is for the School Finance Division to enhance financial 
281.32 	data analysis.
281.33 	(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with 
281.34 	teacher development and evaluation. Any balance in the first year does not cancel and 
281.35 	is available in the second year.
282.1 	(n) The base budget for fiscal year 2016 and later is $19,451,000.

282.2 	Sec. 3. Laws 2013, chapter 116, article 9, section 2, is amended to read:
282.3 	Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 282.4 	The sums indicated in this section are appropriated from the general fund to the 
282.5 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

282.6		$
	11,749,000
	.....
	2014
	
282.7
282.8		$
	11,664,000
11,964,000
	.....
	2015
	
282.9 	$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 
282.10 	kitchen facilities. Any balance in the first year does not cancel but is available in the 
282.11 	second year.

282.12 	Sec. 4. APPROPRIATION; RESPONSES TO HEALTH INSURANCE 
282.13 	TRANSPARENCY ACT BID REQUESTS.
 282.14 	(a) $294,000 is appropriated for fiscal year 2015 from the general fund to the 
282.15 	commissioner of management and budget to comply with the requirements relating to 
282.16 	health insurance transparency in Laws 2014, chapter 279, if enacted. This is a onetime 
282.17 	appropriation.
282.18 	(b) If Laws 2014, chapter 279, is enacted, the commissioner of management and 
282.19 	budget shall report by January 15, 2015, to the legislative chairs and ranking minority 
282.20 	members with jurisdiction over state government finance on the ongoing costs incurred 
282.21 	by the public employees insurance program in compliance with the requirements of the 
282.22 	health insurance transparency act and may request additional appropriations, if necessary.

282.23 	ARTICLE 22
282.24 	FORECAST ADJUSTMENTS
282.25 	A. GENERAL EDUCATION

282.26 	Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to 
282.27 	read:
282.28 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
282.29 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
282.30 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

283.1
283.2		$
	44,000
37,000
	.....
	2014
	
283.3
283.4		$
	48,000
40,000
	.....
	2015

283.5 	Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
283.6 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
283.7 	127A.49:

283.8
283.9		$
	2,747,000
2,876,000
	.....
	2014
	
283.10
283.11		$
	3,136,000
3,103,000
	.....
	2015
	
283.12 	The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
283.13 	 for 2014.
283.14 	The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
283.15 	 $2,817,000 for 2015.

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

283.19
283.20		$
	472,000
585,000
	.....
	2014
	
283.21
283.22		$
	480,000
254,000
	.....
	2015
	
283.23 	The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
283.24 	The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
283.25 	 for 2015.

283.26 	Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
283.27 		Subd. 11.Career and technical aid. For career and technical aid under Minnesota 
283.28 	Statutes, section 124D.4531, subdivision 1b:

283.29
283.30		$
	4,320,000
3,959,000
	.....
	2014
	
283.31
283.32		$
	5,680,000
5,172,000
	.....
	2015
	
283.33 	The 2014 appropriation includes $0 for 2014 2013 and $4,320,000 $3,959,000
283.34 	 for 2015 2014.
283.35 	The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
283.36 	 $4,733,000 for 2015.
284.1 	B. EDUCATION EXCELLENCE

284.2 	Sec. 5. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
284.3 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
284.4 	under Minnesota Statutes, section 124D.862:

284.5
284.6		$
	58,911,000
55,609,000
	.....
	2014
	
284.7
284.8		$
	68,623,000
62,692,000
	.....
	2015
	
284.9 	The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
284.10 	The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
284.11 	 $56,514,000 for 2015.

284.12 	Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
284.13 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
284.14 	Statutes, section 124D.98:

284.15
284.16		$
	52,514,000
50,998,000
	.....
	2014
	
284.17
284.18		$
	53,818,000
47,458,000
	.....
	2015
	
284.19 	The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
284.20 	 for 2014.
284.21 	The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
284.22 	 $42,526,000 for 2015.

284.23 	Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
284.24 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
284.25 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
284.26 	section 124D.87:

284.27
284.28		$
	13,968,000
13,521,000
	.....
	2014
	
284.29
284.30		$
	14,712,000
14,248,000
	.....
	2015

284.31 	Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
284.32 		Subd. 6.Success for the future. For American Indian success for the future grants 
284.33 	under Minnesota Statutes, section 124D.81:

285.1
285.2		$
	2,137,000
2,214,000
	.....
	2014
	
285.3		$
	2,137,000
	.....
	2015
	
285.4 	The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
285.5 	 for 2014.
285.6 	The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
285.7 	 $1,924,000 for 2015.

285.8 	Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to read:
285.9 		Subd. 20.Alternative compensation. For alternative teacher compensation aid 
285.10 	under Minnesota Statutes, section 122A.415, subdivision 4:

285.11
285.12		$
	60,340,000
71,599,000
	.....
	2015
	
285.13 	The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.
285.14 	C. CHARTER SCHOOLS

285.15 	Sec. 10. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
285.16 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
285.17 	Statutes, section 124D.11, subdivision 4: 

285.18
285.19		$
	54,484,000
 54,625,000
	.....
	2014
	
285.20
285.21		$
	59,533,000
58,294,000
	.....
	2015
	
285.22 	The 2014 appropriation includes $6,819,000 $6,681,000 for 2013 and $47,665,000
285.23 	 $47,944,000 for 2014.
285.24 	The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
285.25 	 $52,967,000 for 2015.
285.26 	D. SPECIAL PROGRAMS

285.27 	Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
285.28 		Subd. 2.Special education; regular. For special education aid under Minnesota 
285.29 	Statutes, section 125A.75:

285.30
285.31		$
	997,725,000
 1,038,465,000
	.....
	2014
	
285.32
285.33		$
	1,108,211,000
1,111,641,000
	.....
	2015
	
286.1 	The 2014 appropriation includes $118,232,000 $118,183,000 for 2013 and 
286.2 	$802,884,000 $920,282,000 for 2014.
286.3 	The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and 
286.4 	$938,282,000 $982,092,000 for 2015.

286.5 	Sec. 12. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
286.6 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
286.7 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
286.8 	within the district boundaries for whom no district of residence can be determined:

286.9286.10
		$
	1,655,000
1,548,000
	.....
	2014
	
286.11
286.12		$
	1,752,000
1,674,000
	.....
	2015
	
286.13 	If the appropriation for either year is insufficient, the appropriation for the other 
286.14 	year is available.

286.15 	Sec. 13. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
286.16 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
286.17 	services under Minnesota Statutes, section 125A.75, subdivision 1:

286.18
286.19		$
	345,000
351,000
	.....
	2014
	
286.20
286.21		$
	355,000
346,000
	.....
	2015
	
286.22 	The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
286.23 	The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
286.24 	 for 2015.

286.25 	Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 5, is amended to read:
286.26 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
286.27 	Statutes, section 125A.79, subdivision 7:

286.28
286.29		$
	42,030,000
42,016,000
	.....
	2014
	
286.30 	The 2014 appropriation includes $42,030,000 $42,016,000 for 2013 and $0 for 2014.
286.31 	E. FACILITIES AND TECHNOLOGY

286.32 	Sec. 15. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
287.1 		Subd. 2.Health and safety revenue. For health and safety aid according to 
287.2 	Minnesota Statutes, section 123B.57, subdivision 5:

287.3		$
	463,000 471,000
	.....
	2014
	
287.4		$
	434,000651,000
	.....
	2015
	
287.5 	The 2014 appropriation includes $26,000 $24,000 for 2013 and $437,000 $447,000
287.6 	 for 2014.
287.7 	The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
287.8 	 for 2015.

287.9 	Sec. 16. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
287.10 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
287.11 	Statutes, section 123B.53, subdivision 6:

287.12
287.13		$
	19,083,000
19,778,000
	.....
	2014
	
287.14
287.15		$
	25,060,000
22,591,000
	.....
	2015
	
287.16 	The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
287.17 	 for 2014.
287.18 	The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
287.19 	 $20,660,000 for 2015.

287.20 	Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
287.21 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
287.22 	according to Minnesota Statutes, section 123B.59, subdivision 1:

287.23
287.24		$
	19,287,000
19,982,000
	.....
	2014
	
287.25		$
	19,287,000
	.....
	2015
	
287.26 	The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
287.27 	 for 2014.
287.28 	The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
287.29 	 $17,359,000 for 2015.

287.30 	Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
287.31 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
287.32 	Minnesota Statutes, section 123B.591, subdivision 4:

288.1
288.2		$
	3,564,000
 3,877,000
	.....
	2014
	
288.3
288.4		$
	3,730,000
4,024,000
	.....
	2015
	
288.5 	The 2014 appropriation includes $456,000 $475,000 for 2013 and $3,108,000
288.6 	 $3,402,000 for 2014.
288.7 	The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
288.8 	 $3,646,000 for 2015.
288.9 	F. NUTRITION AND LIBRARIES

288.10 	Sec. 19. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
288.11 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
288.12 	section 124D.118:

288.13
288.14		$
	1,039,000
992,000
	.....
	2014
	
288.15
288.16		$
	1,049,000
1,002,000
	.....
	2015

288.17 	Sec. 20. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
288.18 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
288.19 	Statutes, section 134.355:

288.20
288.21		$
	13,570,000
14,058,000
	.....
	2014
	
288.22
288.23		$
	13,570,000
13,570,000
	.....
	2015
	
288.24 	The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
288.25 	 for 2014.
288.26 	The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
288.27 	 $12,213,000 for 2015.

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

288.31
288.32		$
	1,300,000
1,346,000
	.....
	2014
	
288.33		$
	1,300,000
	.....
	2015
	
288.34 	The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
288.35 	 for 2014.
289.1 	The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
289.2 	 $1,170,000 for 2015.

289.3 	Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
289.4 		Subd. 9.Regional library telecommunications aid. For regional library 
289.5 	telecommunications aid under Minnesota Statutes, section 134.355:

289.6
289.7		$
	2,300,000
2,382,000
	.....
	2014
	
289.8		$
	2,300,000
	.....
	2015
	
289.9 	The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
289.10 	 for 2014.
289.11 	The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
289.12 	 $2,070,000 for 2015.
289.13 	G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 
289.14 	AND LIFELONG LEARNING

289.15 	Sec. 23. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
289.16 		Subd. 4.Health and developmental screening aid. For health and developmental 
289.17 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

289.18
289.19		$
	3,421,000
3,524,000
	.....
	2014
	
289.20
289.21		$
	3,344,000
3,330,000
	.....
	2015
	
289.22 	The 2014 appropriation includes $474,000 $471,000 for 2013 and $2,947,000
289.23 	 $3,053,000 for 2014.
289.24 	The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000
289.25 	 $2,991,000 for 2015.

289.26 	Sec. 24. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
289.27 		Subd. 10.Community education aid. For community education aid under 
289.28 	Minnesota Statutes, section 124D.20:

289.29
289.30		$
	935,000
955,000
	.....
	2014
	
289.31
289.32		$
	1,056,000
1,060,000
	.....
	2015
	
289.33 	The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
290.1 	The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
290.2 	 for 2015.

290.3 	Sec. 25. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
290.4 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
290.5 	programs under Minnesota Statutes, section 124D.56:

290.6		$
	710,000 734,000
	.....
	2014
	
290.7		$
	710,000
	.....
	2015
	
290.8 	The 2014 appropriation includes $96,000 $95,000 for 2013 and $614,000 $639,000
290.9 	 for 2014.
290.10 	The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
290.11 	 for 2015.

290.12 	ARTICLE 23
290.13 	HEALTH DEPARTMENT

290.14 	Section 1. Minnesota Statutes 2013 Supplement, section 103I.205, subdivision 4, 
290.15 	is amended to read:
290.16 		Subd. 4.License required. (a) Except as provided in paragraph (b), (c), (d), or (e), 
290.17 	section 103I.401, subdivision 2, or section 103I.601, subdivision 2, a person may not 
290.18 	drill, construct, repair, or seal a well or boring unless the person has a well contractor's 
290.19 	license in possession.
290.20 	(b) A person may construct, repair, and seal a monitoring well if the person:
290.21 	(1) is a professional engineer licensed under sections 326.02 to 326.15 in the 
290.22 	branches of civil or geological engineering;
290.23 	(2) is a hydrologist or hydrogeologist certified by the American Institute of 
290.24 	Hydrology;
290.25 	(3) is a professional geoscientist licensed under sections 326.02 to 326.15;
290.26 	(4) is a geologist certified by the American Institute of Professional Geologists; or
290.27 	(5) meets the qualifications established by the commissioner in rule.
290.28 	A person must register with the commissioner as a monitoring well contractor on 
290.29 	forms provided by the commissioner.
290.30 	(c) A person may do the following work with a limited well/boring contractor's 
290.31 	license in possession. A separate license is required for each of the six activities:
290.32 	(1) installing or repairing well screens or pitless units or pitless adaptors and well 
290.33 	casings from the pitless adaptor or pitless unit to the upper termination of the well casing;
291.1 	(2) constructing, repairing, and sealing drive point wells or dug wells;
291.2 	(3) installing well pumps or pumping equipment;
291.3 	(4) sealing wells;
291.4 	(5) constructing, repairing, or sealing dewatering wells; or
291.5 	(6) constructing, repairing, or sealing bored geothermal heat exchangers.
291.6 	(d) A person may construct, repair, and seal an elevator boring with an elevator 
291.7 	boring contractor's license.
291.8 	(e) Notwithstanding other provisions of this chapter requiring a license or 
291.9 	registration, a license or registration is not required for a person who complies with the 
291.10 	other provisions of this chapter if the person is:
291.11 	(1) an individual who constructs a well on land that is owned or leased by the 
291.12 	individual and is used by the individual for farming or agricultural purposes or as the 
291.13 	individual's place of abode; or
291.14 	(2) an individual who performs labor or services for a contractor licensed or 
291.15 	registered under the provisions of this chapter in connection with the construction, sealing, 
291.16 	or repair of a well or boring at the direction and under the personal supervision of a 
291.17 	contractor licensed or registered under the provisions of this chapter; or
291.18 	(3) a licensed plumber who is repairing submersible pumps or water pipes associated 
291.19 	with well water systems if the repair location is within an area where there is no licensed 
291.20 	or registered well contractor within 25 miles.

291.21 	Sec. 2. Minnesota Statutes 2012, section 144.1501, subdivision 1, is amended to read:
291.22 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
291.23 	apply.
291.24 	(b) "Dentist" means an individual who is licensed to practice dentistry.
291.25 	(c) "Designated rural area" means an area defined as a small rural area or 
291.26 	isolated rural area according to the four category classifications of the Rural Urban 
291.27 	Commuting Area system developed for the United States Health Resources and Services 
291.28 	Administration a city or township that is:
291.29 	(1) outside the seven-county metropolitan area as defined in section 473.121, 
291.30 	subdivision 2; and
291.31 	(2) has a population under 15,000.
291.32 	(d) "Emergency circumstances" means those conditions that make it impossible for 
291.33 	the participant to fulfill the service commitment, including death, total and permanent 
291.34 	disability, or temporary disability lasting more than two years.
292.1 	(e) "Medical resident" means an individual participating in a medical residency in 
292.2 	family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
292.3 	(f) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse 
292.4 	anesthetist, advanced clinical nurse specialist, or physician assistant.
292.5 	(g) "Nurse" means an individual who has completed training and received all 
292.6 	licensing or certification necessary to perform duties as a licensed practical nurse or 
292.7 	registered nurse.
292.8 	(h) "Nurse-midwife" means a registered nurse who has graduated from a program of 
292.9 	study designed to prepare registered nurses for advanced practice as nurse-midwives.
292.10 	(i) "Nurse practitioner" means a registered nurse who has graduated from a program 
292.11 	of study designed to prepare registered nurses for advanced practice as nurse practitioners.
292.12 	(j) "Pharmacist" means an individual with a valid license issued under chapter 151.
292.13 	(k) "Physician" means an individual who is licensed to practice medicine in the areas 
292.14 	of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
292.15 	(l) "Physician assistant" means a person licensed under chapter 147A.
292.16 	(m) "Qualified educational loan" means a government, commercial, or foundation 
292.17 	loan for actual costs paid for tuition, reasonable education expenses, and reasonable living 
292.18 	expenses related to the graduate or undergraduate education of a health care professional.
292.19 	(n) "Underserved urban community" means a Minnesota urban area or population 
292.20 	included in the list of designated primary medical care health professional shortage areas 
292.21 	(HPSAs), medically underserved areas (MUAs), or medically underserved populations 
292.22 	(MUPs) maintained and updated by the United States Department of Health and Human 
292.23 	Services.

292.24 	Sec. 3. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
292.25 		Subdivision 1.Restricted construction or modification. (a) The following 
292.26 	construction or modification may not be commenced:
292.27 	(1) any erection, building, alteration, reconstruction, modernization, improvement, 
292.28 	extension, lease, or other acquisition by or on behalf of a hospital that increases the bed 
292.29 	capacity of a hospital, relocates hospital beds from one physical facility, complex, or site 
292.30 	to another, or otherwise results in an increase or redistribution of hospital beds within 
292.31 	the state; and
292.32 	(2) the establishment of a new hospital.
292.33 	(b) This section does not apply to:
292.34 	(1) construction or relocation within a county by a hospital, clinic, or other health 
292.35 	care facility that is a national referral center engaged in substantial programs of patient 
293.1 	care, medical research, and medical education meeting state and national needs that 
293.2 	receives more than 40 percent of its patients from outside the state of Minnesota;
293.3 	(2) a project for construction or modification for which a health care facility held 
293.4 	an approved certificate of need on May 1, 1984, regardless of the date of expiration of 
293.5 	the certificate;
293.6 	(3) a project for which a certificate of need was denied before July 1, 1990, if a 
293.7 	timely appeal results in an order reversing the denial;
293.8 	(4) a project exempted from certificate of need requirements by Laws 1981, chapter 
293.9 	200, section 2;
293.10 	(5) a project involving consolidation of pediatric specialty hospital services within 
293.11 	the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the 
293.12 	number of pediatric specialty hospital beds among the hospitals being consolidated;
293.13 	(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds 
293.14 	to an existing licensed hospital that will allow for the reconstruction of a new philanthropic, 
293.15 	pediatric-orthopedic hospital on an existing site and that will not result in a net increase in 
293.16 	the number of hospital beds. Upon completion of the reconstruction, the licenses of both 
293.17 	hospitals must be reinstated at the capacity that existed on each site before the relocation;
293.18 	(7) the relocation or redistribution of hospital beds within a hospital building or 
293.19 	identifiable complex of buildings provided the relocation or redistribution does not result 
293.20 	in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds 
293.21 	from one physical site or complex to another; or (iii) redistribution of hospital beds within 
293.22 	the state or a region of the state;
293.23 	(8) relocation or redistribution of hospital beds within a hospital corporate system 
293.24 	that involves the transfer of beds from a closed facility site or complex to an existing site 
293.25 	or complex provided that: (i) no more than 50 percent of the capacity of the closed facility 
293.26 	is transferred; (ii) the capacity of the site or complex to which the beds are transferred 
293.27 	does not increase by more than 50 percent; (iii) the beds are not transferred outside of a 
293.28 	federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or 
293.29 	redistribution does not involve the construction of a new hospital building;
293.30 	(9) a construction project involving up to 35 new beds in a psychiatric hospital in 
293.31 	Rice County that primarily serves adolescents and that receives more than 70 percent of its 
293.32 	patients from outside the state of Minnesota;
293.33 	(10) a project to replace a hospital or hospitals with a combined licensed capacity 
293.34 	of 130 beds or less if: (i) the new hospital site is located within five miles of the current 
293.35 	site; and (ii) the total licensed capacity of the replacement hospital, either at the time of 
294.1 	construction of the initial building or as the result of future expansion, will not exceed 70 
294.2 	licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
294.3 	(11) the relocation of licensed hospital beds from an existing state facility operated 
294.4 	by the commissioner of human services to a new or existing facility, building, or complex 
294.5 	operated by the commissioner of human services; from one regional treatment center 
294.6 	site to another; or from one building or site to a new or existing building or site on the 
294.7 	same campus;
294.8 	(12) the construction or relocation of hospital beds operated by a hospital having a 
294.9 	statutory obligation to provide hospital and medical services for the indigent that does not 
294.10 	result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27 
294.11 	beds, of which 12 serve mental health needs, may be transferred from Hennepin County 
294.12 	Medical Center to Regions Hospital under this clause;
294.13 	(13) a construction project involving the addition of up to 31 new beds in an existing 
294.14 	nonfederal hospital in Beltrami County;
294.15 	(14) a construction project involving the addition of up to eight new beds in an 
294.16 	existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
294.17 	(15) a construction project involving the addition of 20 new hospital beds 
294.18 	used for rehabilitation services in an existing hospital in Carver County serving the 
294.19 	southwest suburban metropolitan area. Beds constructed under this clause shall not be 
294.20 	eligible for reimbursement under medical assistance, general assistance medical care, 
294.21 	or MinnesotaCare;
294.22 	(16) a project for the construction or relocation of up to 20 hospital beds for the 
294.23 	operation of up to two psychiatric facilities or units for children provided that the operation 
294.24 	of the facilities or units have received the approval of the commissioner of human services;
294.25 	(17) a project involving the addition of 14 new hospital beds to be used for 
294.26 	rehabilitation services in an existing hospital in Itasca County;
294.27 	(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin 
294.28 	County that closed 20 rehabilitation beds in 2002, provided that the beds are used only 
294.29 	for rehabilitation in the hospital's current rehabilitation building. If the beds are used for 
294.30 	another purpose or moved to another location, the hospital's licensed capacity is reduced 
294.31 	by 20 beds;
294.32 	(19) a critical access hospital established under section 144.1483, clause (9), and 
294.33 	section 1820 of the federal Social Security Act, United States Code, title 42, section 
294.34 	1395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public 
294.35 	Law 105-33, to the extent that the critical access hospital does not seek to exceed the 
294.36 	maximum number of beds permitted such hospital under federal law;
295.1 	(20) notwithstanding section 144.552, a project for the construction of a new hospital 
295.2 	in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
295.3 	(i) the project, including each hospital or health system that will own or control the 
295.4 	entity that will hold the new hospital license, is approved by a resolution of the Maple 
295.5 	Grove City Council as of March 1, 2006;
295.6 	(ii) the entity that will hold the new hospital license will be owned or controlled by 
295.7 	one or more not-for-profit hospitals or health systems that have previously submitted a 
295.8 	plan or plans for a project in Maple Grove as required under section 144.552, and the 
295.9 	plan or plans have been found to be in the public interest by the commissioner of health 
295.10 	as of April 1, 2005;
295.11 	(iii) the new hospital's initial inpatient services must include, but are not limited 
295.12 	to, medical and surgical services, obstetrical and gynecological services, intensive 
295.13 	care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics, 
295.14 	behavioral health services, and emergency room services;
295.15 	(iv) the new hospital:
295.16 	(A) will have the ability to provide and staff sufficient new beds to meet the growing 
295.17 	needs of the Maple Grove service area and the surrounding communities currently being 
295.18 	served by the hospital or health system that will own or control the entity that will hold 
295.19 	the new hospital license;
295.20 	(B) will provide uncompensated care;
295.21 	(C) will provide mental health services, including inpatient beds;
295.22 	(D) will be a site for workforce development for a broad spectrum of 
295.23 	health-care-related occupations and have a commitment to providing clinical training 
295.24 	programs for physicians and other health care providers;
295.25 	(E) will demonstrate a commitment to quality care and patient safety;
295.26 	(F) will have an electronic medical records system, including physician order entry;
295.27 	(G) will provide a broad range of senior services;
295.28 	(H) will provide emergency medical services that will coordinate care with regional 
295.29 	providers of trauma services and licensed emergency ambulance services in order to 
295.30 	enhance the continuity of care for emergency medical patients; and
295.31 	(I) will be completed by December 31, 2009, unless delayed by circumstances 
295.32 	beyond the control of the entity holding the new hospital license; and
295.33 	(v) as of 30 days following submission of a written plan, the commissioner of health 
295.34 	has not determined that the hospitals or health systems that will own or control the entity 
295.35 	that will hold the new hospital license are unable to meet the criteria of this clause;
295.36 	(21) a project approved under section 144.553;
296.1 	(22) a project for the construction of a hospital with up to 25 beds in Cass County 
296.2 	within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's 
296.3 	license holder is approved by the Cass County Board;
296.4 	(23) a project for an acute care hospital in Fergus Falls that will increase the bed 
296.5 	capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16 
296.6 	and closing a separately licensed 13-bed skilled nursing facility; or
296.7 	(24) notwithstanding section 144.552, a project for the construction and expansion 
296.8 	of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for 
296.9 	patients who are under 21 years of age on the date of admission. The commissioner 
296.10 	conducted a public interest review of the mental health needs of Minnesota and the Twin 
296.11 	Cities metropolitan area in 2008. No further public interest review shall be conducted for 
296.12 	the construction or expansion project under this clause; or
296.13 	(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if 
296.14 	the commissioner finds the project is in the public interest after the public interest review 
296.15 	conducted under section 144.552 is complete.

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

296.17 	Sec. 4. [144.9513] HEALTHY HOUSING GRANTS.
296.18 		Subdivision 1.Definitions. For purposes of this section and sections 144.9501 to 
296.19 	144.9512, the following terms have the meanings given.
296.20 	(a) "Housing" means a room or group of rooms located within a dwelling forming 
296.21 	a single habitable unit with facilities used or intended to be used for living, sleeping, 
296.22 	cooking, and eating.
296.23 	(b) "Healthy housing" means housing that is sited, designed, built, renovated, and 
296.24 	maintained in ways that supports the health of residents.
296.25 	(c) "Housing-based health threat" means a chemical, biologic, or physical agent 
296.26 	in the immediate housing environment, including toxic lead, mold, radon, and indoor 
296.27 	allergens and contaminants in carpets, which constitutes a potential or actual hazard to 
296.28 	human health at acute or chronic exposure levels.
296.29 	(d) "Primary prevention" means preventing exposure to housing-based health threats 
296.30 	before seeing clinical symptoms or a diagnosis.
296.31 	(e) "Secondary prevention" means intervention to mitigate health effects on people 
296.32 	with housing-based health threats.
296.33 		Subd. 2.Grants; administration. Grant applicants shall submit applications to 
296.34 	the commissioner as directed by a request for proposals. Grants must be competitively 
296.35 	awarded and recipients of a grant under this section must prepare and submit a quarterly 
297.1 	progress report to the commissioner beginning three months after receipt of the grant. The 
297.2 	commissioner shall provide technical assistance and program support as needed to ensure 
297.3 	that housing-based health threats are effectively identified, mitigated, and evaluated by 
297.4 	grantees.
297.5 		Subd. 3.Healthy housing and implementation grants; eligible activities. (a) 
297.6 	Within the limits of available appropriations, the commissioner shall make grants to 
297.7 	support implementation of healthy housing programs to local boards of health, community 
297.8 	action agencies under section 256E.31, and nonprofit organizations with expertise in 
297.9 	providing outreach, education, and training on healthy housing subjects and in providing 
297.10 	comprehensive healthy housing assessments and interventions. 
297.11 	(b) The grantee may conduct the following activities: 
297.12 	(1) implement and maintain primary prevention programs to reduce housing-based 
297.13 	health threats that include the following:
297.14 	(i) providing education materials to the general public and to property owners, 
297.15 	contractors, code officials, health care providers, public health professionals, health 
297.16 	educators, nonprofit organizations, and other persons and organizations engaged in 
297.17 	housing and health issues; 
297.18 	(ii) promoting awareness of community, legal, and housing resources; and 
297.19 	(iii) promoting the use of hazard reduction measures in new housing construction 
297.20 	and housing rehabilitation programs;
297.21 	(2) provide training on identifying and addressing housing-based health threats;  
297.22 	(3) provide technical assistance on the implementation of mitigation measures;
297.23 	(4) promote adoption of evidence-based best practices for mitigation of 
297.24 	housing-based health threats; 
297.25 	(5) develop work practices for addressing specific housing-based health threats;
297.26 	(6) identify, characterize, and mitigate hazards in housing that contribute to adverse 
297.27 	health outcomes;
297.28 	(7) ensure screening services and other secondary prevention measures are provided 
297.29 	to populations at high risk for housing-related health threats;
297.30 	(8) promote compliance with Department of Health guidelines and other best 
297.31 	practices, as identified by the commissioner, for preventing or reducing housing-based 
297.32 	health threats;
297.33 	(9) establish local or regional collaborative groups to ensure that resources for 
297.34 	addressing housing-based health threats are coordinated; or
297.35 	(10) develop model programs for addressing housing-based health threats.

298.1 	Sec. 5. [144A.484] INTEGRATED LICENSURE; HOME AND 
298.2 	COMMUNITY-BASED SERVICES DESIGNATION.
298.3 		Subdivision 1.Integrated licensing established. (a) From January 1, 2014, to 
298.4 	June 30, 2015, the commissioner of health shall enforce the home and community-based 
298.5 	services standards under chapter 245D for those providers who also have a home care 
298.6 	license pursuant to this chapter as required under Laws 2013, chapter 108, article 8, section 
298.7 	60, and article 11, section 31. During this period, the commissioner shall provide technical 
298.8 	assistance to achieve and maintain compliance with applicable law or rules governing the 
298.9 	provision of home and community-based services, including complying with the service 
298.10 	recipient rights notice in subdivision 4, clause (4). If during the survey, the commissioner 
298.11 	finds that the licensee has failed to achieve compliance with an applicable law or rule 
298.12 	under chapter 245D and this failure does not imminently endanger the health, safety, or 
298.13 	rights of the persons served by the program, the commissioner may issue a licensing 
298.14 	survey report with recommendations for achieving and maintaining compliance.
298.15 	(b) Beginning July 1, 2015, a home care provider applicant or license holder may 
298.16 	apply to the commissioner of health for a home and community-based services designation 
298.17 	for the provision of basic support services identified under section 245D.03, subdivision 1, 
298.18 	paragraph (b). The designation allows the license holder to provide basic support services 
298.19 	that would otherwise require licensure under chapter 245D, under the license holder's 
298.20 	home care license governed by sections 144A.43 to 144A.481.
298.21 		Subd. 2.Application for home and community-based services designation. An 
298.22 	application for a home and community-based services designation must be made on the 
298.23 	forms and in the manner prescribed by the commissioner. The commissioner shall provide 
298.24 	the applicant with instruction for completing the application and provide information 
298.25 	about the requirements of other state agencies that affect the applicant. Application for 
298.26 	the home and community-based services designation is subject to the requirements under 
298.27 	section 144A.473.
298.28 		Subd. 3.Home and community-based services designation fees. A home care 
298.29 	provider applicant or licensee applying for the home and community-based services 
298.30 	designation or renewal of a home and community-based services designation must submit 
298.31 	a fee in the amount specified in subdivision 8.
298.32 		Subd. 4.Applicability of home and community-based services requirements. A 
298.33 	home care provider with a home and community-based services designation must comply 
298.34 	with the requirements for home care services governed by this chapter. For the provision 
298.35 	of basic support services, the home care provider must also comply with the following 
298.36 	home and community-based services licensing requirements:
299.1 	(1) service planning and delivery requirements in section 245D.07;
299.2 	(2) protection standards in section 245D.06;
299.3 	(3) emergency use of manual restraints in section 245D.061; and
299.4 	(4) protection-related rights in section 245D.04, subdivision 3, paragraph (a), clauses 
299.5 	(5), (7), (8), (12), and (13), and paragraph (b).
299.6 	A home care provider with the integrated license-home and community-based services 
299.7 	designation may utilize a bill of rights which incorporates the service recipient rights in 
299.8 	section 245D.04, subdivision 3, paragraph (a), clauses (5), (7), (8), (12), and (13), and 
299.9 	paragraph (b) with the home care bill of rights in section 144A.44.
299.10 		Subd. 5.Monitoring and enforcement. (a) The commissioner shall monitor for 
299.11 	compliance with the home and community-based services requirements identified in 
299.12 	subdivision 4, in accordance with this section and any agreements by the commissioners 
299.13 	of health and human services.
299.14 	(b) The commissioner shall enforce compliance with applicable home and 
299.15 	community-based services licensing requirements as follows:
299.16 	(1) the commissioner may deny a home and community-based services designation 
299.17 	in accordance with section 144A.473 or 144A.475; and
299.18 	(2) if the commissioner finds that the applicant or license holder has failed to comply 
299.19 	with the applicable home and community-based services designation requirements, the 
299.20 	commissioner may issue:
299.21 	(i) a correction order in accordance with section 144A.474;
299.22 	(ii) an order of conditional license in accordance with section 144A.475;
299.23 	(iii) a sanction in accordance with section 144A.475; or
299.24 	(iv) any combination of clauses (i) to (iii).
299.25 		Subd. 6.Appeals. A home care provider applicant that has been denied a temporary 
299.26 	license will also be denied their application for the home and community-based services 
299.27 	designation. The applicant may request reconsideration in accordance with section 
299.28 	144A.473, subdivision 3. A licensed home care provider whose application for a home 
299.29 	and community-based services designation has been denied or whose designation has been 
299.30 	suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a 
299.31 	home and community-based services designation in accordance with section 144A.475. 
299.32 	A license holder may request reconsideration of a correction order in accordance with 
299.33 	section 144A.474, subdivision 12.
299.34 		Subd. 7.Agreements. The commissioners of health and human services shall enter 
299.35 	into any agreements necessary to implement this section.
300.1 		Subd. 8.Fees; home and community-based services designation. (a) The 
300.2 	initial fee for a home and community-based services designation is $155. A home care 
300.3 	provider renewing the home and community-based services designation must pay an 
300.4 	annual nonrefundable fee, in addition to the annual home care license fee, according to the 
300.5 	following schedule and based on revenues from the home and community-based services 
300.6 	that require licensure under chapter 245D during the calendar year immediately preceding 
300.7 	the year in which the license fee is paid:

300.8
300.9	Provider Annual Revenue from HCBS
	HCBS 
Designation

300.10	greater than $1,500,000
	$320
	
300.11	greater than $1,275,000 and no more than $1,500,000
	$300
	
300.12	greater than $1,100,000 and no more than $1,275,000
	$280
	
300.13	greater than $950,000 and no more than $1,100,000
	$260
	
300.14	greater than $850,000 and no more than $950,000
	$240
	
300.15	greater than $750,000 and no more than $850,000
	$220
	
300.16	greater than $650,000 and no more than $750,000
	$200
	
300.17	greater than $550,000 and no more than $650,000
	$180
	
300.18	greater than $450,000 and no more than $550,000
	$160
	
300.19	greater than $350,000 and no more than $450,000
	$140
	
300.20	greater than $250,000 and no more than $350,000
	$120
	
300.21	greater than $100,000 and no more than $250,000
	$100
	
300.22	greater than $50,000 and no more than $100,000
	$80
	
300.23	greater than $25,000 and no more than $50,000
	$60
	
300.24	no more than $25,000
	$40
	
300.25 	(b) Fees and penalties collected under this section shall be deposited in the state 
300.26 	treasury and credited to the state government special revenue fund.

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

300.29 	Sec. 6. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is 
300.30 	amended to read:
300.31 		Subd. 2.Duties of director. The director of child sex trafficking prevention is 
300.32 	responsible for the following:
300.33 	(1) developing and providing comprehensive training on sexual exploitation of 
300.34 	youth for social service professionals, medical professionals, public health workers, and 
300.35 	criminal justice professionals;
301.1 	(2) collecting, organizing, maintaining, and disseminating information on sexual 
301.2 	exploitation and services across the state, including maintaining a list of resources on the 
301.3 	Department of Health Web site;
301.4 	(3) monitoring and applying for federal funding for antitrafficking efforts that may 
301.5 	benefit victims in the state;
301.6 	(4) managing grant programs established under sections 145.4716 to 145.4718;
301.7 	(5) managing the request for proposals for grants for comprehensive services, 
301.8 	including trauma-informed, culturally specific services;
301.9 	(6) identifying best practices in serving sexually exploited youth, as defined in 
301.10 	section 260C.007, subdivision 31;
301.11 	(6)(7) providing oversight of and technical support to regional navigators pursuant 
301.12 	to section 145.4717;
301.13 	(7)(8) conducting a comprehensive evaluation of the statewide program for safe 
301.14 	harbor of sexually exploited youth; and
301.15 	(8)(9) developing a policy consistent with the requirements of chapter 13 for sharing 
301.16 	data related to sexually exploited youth, as defined in section 260C.007, subdivision 31, 
301.17 	among regional navigators and community-based advocates.

301.18 	Sec. 7. [145.929] HEALTH CARE GRANTS FOR THE UNINSURED.
301.19 		Subdivision 1.Dental providers. (a) A dental provider is eligible for a grant under 
301.20 	this section if:
301.21 	(1) the provider is a nonprofit organization not affiliated with a hospital or medical 
301.22 	group that offers free or reduced-cost oral health care to low-income patients under the 
301.23 	age of 21 with family incomes below 275 percent of the federal poverty guidelines who do 
301.24 	not have insurance coverage for oral health care services;
301.25 	(2) the provider is eligible for critical access dental provider payments under section 
301.26 	256B.76, subdivision 4; and
301.27 	(3) more than 80 percent of the dental provider's patient encounters per year are with 
301.28 	patients who are uninsured or covered by medical assistance or MinnesotaCare.
301.29 	(b) Grants shall be distributed by the commissioner of health to each eligible 
301.30 	provider based on the proportion of that provider's number of low-income uninsured 
301.31 	patients under the age of 21 served in the reporting year to the total number of low-income 
301.32 	uninsured patients under the age of 21 served by all eligible providers, except that no 
301.33 	single eligible provider shall receive less than two percent or more than 30 percent of the 
301.34 	total appropriation provided under this subdivision. If the number of eligible providers 
301.35 	is such that the minimum of two percent cannot be provided to each eligible provider, 
302.1 	the commissioner shall limit eligibility for the subsidy to the top 20 eligible oral health 
302.2 	providers.
302.3 		Subd. 2.Community mental health programs. A community mental health 
302.4 	program is eligible for a grant under this section if it is a community mental health center 
302.5 	established under section 245.62, or a nonprofit community mental health clinic that is 
302.6 	designated as an essential community provider under section 62Q.19, and the center or 
302.7 	clinic offers free or reduced-cost mental health care to low-income patients under the age 
302.8 	of 21 with family incomes below 275 percent of the federal poverty guidelines who do not 
302.9 	have health insurance coverage. The grants shall be distributed by the commissioner of 
302.10 	health to each eligible mental health center or clinic based on the proportion of that mental 
302.11 	health center's or clinic's number of low-income uninsured patients under the age of 21 
302.12 	served in the reporting year to the total number of low-income uninsured patients under 
302.13 	the age of 21 served by all mental health centers and clinics eligible for a grant under this 
302.14 	subdivision, except that no single eligible provider shall receive less than two percent or 
302.15 	more than 30 percent of the total appropriation provided under this subdivision.
302.16 		Subd. 3.Emergency medical assistance outlier grant program. (a) The 
302.17 	commissioner of health shall establish a grant program for hospitals for the purpose of 
302.18 	defraying underpayments associated with the emergency medical assistance program. 
302.19 	Grants shall be made for the services provided beginning July 1, 2014, to an individual 
302.20 	who is enrolled in emergency medical assistance, and when an emergency medical 
302.21 	assistance reimbursement claim is in excess of $50,000.
302.22 	(b) Hospitals seeking a grant from this program must submit an application that 
302.23 	includes the number and dollar amount of hospital claims for emergency medical 
302.24 	assistance in excess of $50,000 to the commissioner in a form prescribed by the 
302.25 	commissioner. Grant payments shall be in proportion to the total hospital emergency 
302.26 	medical assistance claims submitted by all applicant hospitals each state fiscal year. 
302.27 	Claims for inpatient hospital, outpatient services, and hospital emergency department 
302.28 	services shall be considered when determining the value of the grants.
302.29 		Subd. 4.Grant process. The commissioner of health may use data submitted 
302.30 	by organizations seeking a grant under this section, without further verification, for 
302.31 	purposes of determining eligibility for a grant and allocating grant money among eligible 
302.32 	organizations. The chief executive or chief financial officer must certify that the data 
302.33 	submitted is accurate and that no changes were made in the organization's accounting and 
302.34 	record-keeping practices or policies for providing free or reduced-cost care to uninsured 
302.35 	patients for the purpose of creating eligibility or increasing the organization's allocation. 
302.36 	The commissioner may audit or verify the data submitted. Grant funds must be used to 
303.1 	defray the organization's costs of providing care and services to uninsured patients as 
303.2 	identified under subdivision 1, 2, or 3. An organization must not receive more than one 
303.3 	grant under subdivision 1, 2, or 3, even though the organization is potentially eligible for 
303.4 	a grant under two or more subdivisions. Organizations eligible for a grant under this 
303.5 	section may join together to submit a combined application provided the data submitted is 
303.6 	certified by each individual organization.

303.7 	Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is 
303.8 	amended to read:
303.9 		Subd. 21.Provider enrollment. (a) If the commissioner or the Centers for 
303.10 	Medicare and Medicaid Services determines that a provider is designated "high-risk," the 
303.11 	commissioner may withhold payment from providers within that category upon initial 
303.12 	enrollment for a 90-day period. The withholding for each provider must begin on the date 
303.13 	of the first submission of a claim.
303.14 	(b) An enrolled provider that is also licensed by the commissioner under chapter 
303.15 	245A, or is licensed as a home care provider by the Department of Health under chapter 
303.16 	144A and has a home and community-based services designation on the home care license 
303.17 	under section 144A.484,  must designate an individual as the entity's compliance officer. 
303.18 	The compliance officer must:
303.19 	(1) develop policies and procedures to assure adherence to medical assistance laws 
303.20 	and regulations and to prevent inappropriate claims submissions;
303.21 	(2) train the employees of the provider entity, and any agents or subcontractors of 
303.22 	the provider entity including billers, on the policies and procedures under clause (1);
303.23 	(3) respond to allegations of improper conduct related to the provision or billing of 
303.24 	medical assistance services, and implement action to remediate any resulting problems;
303.25 	(4) use evaluation techniques to monitor compliance with medical assistance laws 
303.26 	and regulations;
303.27 	(5) promptly report to the commissioner any identified violations of medical 
303.28 	assistance laws or regulations; and
303.29 	(6) within 60 days of discovery by the provider of a medical assistance 
303.30 	reimbursement overpayment, report the overpayment to the commissioner and make 
303.31 	arrangements with the commissioner for the commissioner's recovery of the overpayment.
303.32 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
303.33 	provider within a particular industry sector or category establish a compliance program that 
303.34 	contains the core elements established by the Centers for Medicare and Medicaid Services.
304.1 	(c) The commissioner may revoke the enrollment of an ordering or rendering 
304.2 	provider for a period of not more than one year, if the provider fails to maintain and, upon 
304.3 	request from the commissioner, provide access to documentation relating to written orders 
304.4 	or requests for payment for durable medical equipment, certifications for home health 
304.5 	services, or referrals for other items or services written or ordered by such provider, when 
304.6 	the commissioner has identified a pattern of a lack of documentation. A pattern means a 
304.7 	failure to maintain documentation or provide access to documentation on more than one 
304.8 	occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a 
304.9 	provider under the provisions of section 256B.064.
304.10 	(d) The commissioner shall terminate or deny the enrollment of any individual or 
304.11 	entity if the individual or entity has been terminated from participation in Medicare or 
304.12 	under the Medicaid program or Children's Health Insurance Program of any other state.
304.13 	(e) As a condition of enrollment in medical assistance, the commissioner shall 
304.14 	require that a provider designated "moderate" or "high-risk" by the Centers for Medicare 
304.15 	and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
304.16 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
304.17 	designated contractors to conduct unannounced on-site inspections of any provider location. 
304.18 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
304.19 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
304.20 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
304.21 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
304.22 	The commissioner's designations are not subject to administrative appeal.
304.23 	(f) As a condition of enrollment in medical assistance, the commissioner shall 
304.24 	require that a high-risk provider, or a person with a direct or indirect ownership interest in 
304.25 	the provider of five percent or higher, consent to criminal background checks, including 
304.26 	fingerprinting, when required to do so under state law or by a determination by the 
304.27 	commissioner or the Centers for Medicare and Medicaid Services that a provider is 
304.28 	designated high-risk for fraud, waste, or abuse.
304.29 	(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical 
304.30 	equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in 
304.31 	Minnesota and receiving Medicaid funds must purchase a surety bond that is annually 
304.32 	renewed and designates the Minnesota Department of Human Services as the obligee, and 
304.33 	must be submitted in a form approved by the commissioner.
304.34 	(2) At the time of initial enrollment or reenrollment, the provider agency must 
304.35 	purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 
304.36 	in the previous calendar year is up to and including $300,000, the provider agency must 
305.1 	purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue 
305.2 	in the previous calendar year is over $300,000, the provider agency must purchase a 
305.3 	performance bond of $100,000. The performance bond must allow for recovery of costs 
305.4 	and fees in pursuing a claim on the bond.
305.5 	(h) The Department of Human Services may require a provider to purchase a 
305.6 	performance surety bond as a condition of initial enrollment, reenrollment, reinstatement, 
305.7 	or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the 
305.8 	department determines there is significant evidence of or potential for fraud and abuse by 
305.9 	the provider, or (3) the provider or category of providers is designated high-risk pursuant 
305.10 	to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The 
305.11 	performance bond must be in an amount of $100,000 or ten percent of the provider's 
305.12 	payments from Medicaid during the immediately preceding 12 months, whichever is 
305.13 	greater. The performance bond must name the Department of Human Services as an 
305.14 	obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

305.15 	Sec. 9. LEGISLATIVE HEALTH CARE WORKFORCE COMMISSION.
 305.16 		Subdivision 1.Legislative oversight. The Legislative Health Care Workforce 
305.17 	Commission is created to study and make recommendations to the legislature on how to 
305.18 	achieve the goal of strengthening the workforce in health care.
305.19 		Subd. 2.Membership. The Legislative Health Care Workforce Commission 
305.20 	consists of five members of the senate appointed by the Subcommittee on Committees 
305.21 	of the Committee on Rules and Administration and five members of the house of 
305.22 	representatives appointed by the speaker of the house. The Legislative Health Care 
305.23 	Workforce Commission must include three members of the majority party and two 
305.24 	members of the minority party in each house.
305.25 		Subd. 3.Officers. The commission must elect a chair and may elect other officers 
305.26 	as it determines are necessary. The chair shall alternate between a member of the senate 
305.27 	and a member of the house of representatives in January of each odd-numbered year.
305.28 		Subd. 4.Initial appointments and meeting. Appointing authorities for the 
305.29 	Legislative Health Care Workforce Commission must make initial appointments by June 
305.30 	1, 2014. The speaker of the house of representatives must designate one member of the 
305.31 	commission to convene the first meeting of the commission by June 15, 2014.
305.32 		Subd. 5.Report to the legislature. The Legislative Health Care Workforce 
305.33 	Commission must provide a preliminary report making recommendations to the legislature 
305.34 	by December 31, 2014. The commissioner must provide a final report to the legislature by 
305.35 	December 31, 2016. The final report must:
306.1 	(1) identify current and anticipated health care workforce shortages, by both 
306.2 	provider type and geography;
306.3 	(2) evaluate the effectiveness of incentives currently available to develop, attract, 
306.4 	and retain a highly skilled health care workforce;
306.5 	(3) study alternative incentives to develop, attract, and retain a highly skilled and 
306.6 	diverse health care workforce; and
306.7 	(4) identify current causes and potential solutions to barriers related to the primary 
306.8 	care workforce, including, but not limited to:
306.9 	(i) training and residency shortages;
306.10 	(ii) disparities in income between primary care and other providers; and
306.11 	(iii) negative perceptions of primary care among students.
306.12 		Subd. 6.Assistance to the commission. The commissioners of health, human 
306.13 	services, commerce, and other state agencies shall provide assistance and technical 
306.14 	support to the commission at the request of the commission. The Minnesota Medical 
306.15 	Association and other stakeholder groups shall also provide advice to the commission as 
306.16 	needed. The commission may convene subcommittees to provide additional assistance 
306.17 	and advice to the commission.
306.18 		Subd. 7.Commission member expenses. Members of the commission may receive 
306.19 	per diem and expense reimbursement from money appropriated for the commission in 
306.20 	the manner and amount prescribed for per diem and expense payments by the senate 
306.21 	Committee on Rules and Administration and the House Committee on Rules and 
306.22 	Legislative Administration.
306.23 		Subd. 8.Expiration. The Legislative Health Care Workforce Commission expires 
306.24 	on January 1, 2017.

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

306.26 	Sec. 10. QUALITY TRANSPARENCY.
 306.27 	(a) The commissioner of health shall develop an implementation plan for stratifying 
306.28 	measures based on disability, race, ethnicity, language, and other sociodemographic factors 
306.29 	that are correlated with health disparities and impact performance on quality measures.  
306.30 	The plan must be designed so that quality measures can be stratified beginning January 1, 
306.31 	2017, in order to advance work aimed at identifying and eliminating health disparities.  
306.32 	By January 15, 2015, the commissioner shall submit a report to the chairs and ranking 
306.33 	minority members of the senate and house of representatives committees and divisions 
306.34 	with jurisdiction on health and human services and finance with the plan, including an 
306.35 	estimated budget, timeline, and processes to be used for implementation.
307.1 	(b) The commissioner of health shall assess the risk adjustment methodology 
307.2 	established under Minnesota Statutes, section 62U.02, subdivision 3, for the potential 
307.3 	for harm and unintended consequences for patient populations who experience health 
307.4 	disparities, and the providers who serve them, and identify changes that may be needed 
307.5 	to alleviate harm and unintended consequences. By January 15, 2016, the commissioner 
307.6 	shall submit a report to the chairs and ranking minority members of the senate and house 
307.7 	of representatives committees and divisions with jurisdiction on health and human 
307.8 	services and finance with  the result of the assessment of the risk-adjustment methodology 
307.9 	and  any recommended changes.
307.10 	(c) The commissioner shall develop the plan described in paragraph (a), in 
307.11 	consultation with consumer, community and advocacy organizations representing diverse 
307.12 	communities; health plan companies; providers; quality measurement organizations; and 
307.13 	safety net providers that primarily serve communities and patient populations with health 
307.14 	disparities.  The commissioner shall use culturally appropriate methods of consultation and 
307.15 	engagement with consumer and advocacy organizations led by and representing diverse 
307.16 	communities by race, ethnicity, language, and sociodemographic factors.

307.17 	Sec. 11. DATA ON CHRONIC PAIN THERAPIES.
 307.18 	(a) The commissioner of health shall gather the following data on the provision of 
307.19 	chronic pain treatment procedures by physicians, doctors of osteopathy, and certified 
307.20 	registered nurse anesthetists who perform these procedures:
307.21 	(1) the types and number of chronic pain management procedures performed within 
307.22 	the last 36 months;
307.23 	(2) the types of health professionals who perform chronic pain treatment procedures 
307.24 	and the professional licenses they hold; and
307.25 	(3) the location and type of facility in which the chronic pain treatment procedures 
307.26 	are performed.
307.27 	(b) The commissioner shall submit a report with the compiled data to the chairs and 
307.28 	ranking minority members of the house and senate committees with jurisdiction over 
307.29 	health and human services finance and policy by January 15, 2015.
307.30 	(c) The commissioner of health may use the data submitted under Minnesota Statutes, 
307.31 	section 62U.04, subdivision 4, paragraph (a), to carry out the requirements of this section.

307.32 	Sec. 12. STUDY AND REPORT ABOUT CLIENT BILLS OF RIGHTS.
 307.33 	The commissioner of health shall consult with Aging Services of Minnesota, Care 
307.34 	Providers of Minnesota, Minnesota Home Care Association, the commissioner of human 
308.1 	services, the Office of the Ombudsman for Long-Term Care, and other stakeholders to 
308.2 	evaluate and determine how to streamline the requirements related to the clients' rights in 
308.3 	Minnesota Statutes, sections 144A.44, 144A.441, and 245D.04, for applicable providers, 
308.4 	while assuring and maintaining the health and safety of clients. The evaluation must 
308.5 	consider the federal client bill of rights requirements for Medicare-certified home care 
308.6 	providers. The evaluation must determine if there are duplications or conflicts of client 
308.7 	rights, evaluate how to reduce the complexity of the requirements related to clients' rights 
308.8 	for providers and consumers, determine which rights must be included in a consolidated 
308.9 	client bill of rights document, and develop options to inform consumers of their rights. 
308.10 	The commissioner shall report to the chairs and ranking minority members of the health 
308.11 	and human services committees of the legislature no later than February 15, 2015, and 
308.12 	include any recommendations for legislative changes.

308.13 	ARTICLE 24
308.14 	HEALTH CARE

308.15 	Section 1. Minnesota Statutes 2013 Supplement, section 16A.724, subdivision 3, 
308.16 	is amended to read:
308.17 		Subd. 3.MinnesotaCare federal receipts. All federal funding received by 
308.18 	Minnesota for implementation and administration of MinnesotaCare as a basic health 
308.19 	program, as authorized in section 1331 of the Affordable Care Act, Public Law 111-148, 
308.20 	as amended by Public Law 111-152, is dedicated to that program and shall be deposited 
308.21 	into the health care access fund is appropriated to the commissioner of human services 
308.22 	to be used only for the MinnesotaCare program under chapter 256L. Federal funding 
308.23 	that is received for implementing and administering MinnesotaCare as a basic health 
308.24 	program and deposited in the fund shall be used only for that program to purchase health 
308.25 	care coverage for enrollees and reduce enrollee premiums and cost-sharing or provide 
308.26 	additional enrollee benefits.

308.27 	Sec. 2. Minnesota Statutes 2012, section 256.01, is amended by adding a subdivision 
308.28 	to read:
308.29 		Subd. 38.Contract to match recipient third-party liability information. The 
308.30 	commissioner may enter into a contract with a national organization to match recipient 
308.31 	third-party liability information and provide coverage and insurance primacy information 
308.32 	to the department at no charge to providers and the clearinghouses.

308.33 	Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
309.1 		Subdivision 1.Authority. (a) The commissioner shall establish procedures for 
309.2 	determining medical assistance and general assistance medical care payment rates under 
309.3 	a prospective payment system for inpatient hospital services in hospitals that qualify as 
309.4 	vendors of medical assistance. The commissioner shall establish, by rule, procedures for 
309.5 	implementing this section and sections 256.9686, 256.969, and 256.9695. Services must 
309.6 	meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7, 
309.7 	paragraph (b), to be eligible for payment.
309.8 	(b) The commissioner may reduce the types of inpatient hospital admissions that 
309.9 	are required to be certified as medically necessary after notice in the State Register and a 
309.10 	30-day comment period.

309.11 	Sec. 4. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
309.12 		Subd. 1a.Administrative reconsideration. Notwithstanding sections section
309.13 	256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish 
309.14 	an administrative reconsideration process for appeals of inpatient hospital services 
309.15 	determined to be medically unnecessary. A physician or hospital may request a 
309.16 	reconsideration of the decision that inpatient hospital services are not medically necessary 
309.17 	by submitting a written request for review to the commissioner within 30 days after 
309.18 	receiving notice of the decision. The reconsideration process shall take place prior to the 
309.19 	procedures of subdivision 1b and shall be conducted by physicians that are independent 
309.20 	of the case under reconsideration. A majority decision by the physicians is necessary to 
309.21 	make a determination that the services were not medically necessary.

309.22 	Sec. 5. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
309.23 		Subd. 2.Base year. "Base year" means a hospital's fiscal year or years that 
309.24 	is recognized by the Medicare program or a hospital's fiscal year specified by the 
309.25 	commissioner if a hospital is not required to file information by the Medicare program 
309.26 	from which cost and statistical data are used to establish medical assistance and general 
309.27 	assistance medical care payment rates.

309.28 	Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
309.29 		Subdivision 1.Hospital cost index. (a) The hospital cost index shall be the change 
309.30 	in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted 
309.31 	by Data Resources, Inc. The commissioner shall use the indices as forecasted in the 
309.32 	third quarter of the calendar year prior to the rate year. The hospital cost index may be 
310.1 	used to adjust the base year operating payment rate through the rate year on an annually 
310.2 	compounded basis.
310.3 	(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human 
310.4 	services shall not provide automatic annual inflation adjustments for hospital payment 
310.5 	rates under medical assistance, nor under general assistance medical care, except that 
310.6 	the inflation adjustments under paragraph (a) for medical assistance, excluding general 
310.7 	assistance medical care, shall apply through calendar year 2001. The index for calendar 
310.8 	year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index 
310.9 	from 1994 to 1996. The commissioner of management and budget shall include as a 
310.10 	budget change request in each biennial detailed expenditure budget submitted to the 
310.11 	legislature under section 16A.11 annual adjustments in hospital payment rates under 
310.12 	medical assistance and general assistance medical care, based upon the hospital cost index.

310.13 	Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
310.14 		Subd. 2.Diagnostic categories. The commissioner shall use to the extent possible 
310.15 	existing diagnostic classification systems, including such as the system used by the 
310.16 	Medicare program all patient-refined diagnosis-related groups (APR-DRGs) or other 
310.17 	similar classification programs  to determine the relative values of inpatient services 
310.18 	and case mix indices. The commissioner may combine diagnostic classifications into 
310.19 	diagnostic categories and may establish separate categories and numbers of categories 
310.20 	based on program eligibility or hospital peer group. Relative values shall be recalculated
310.21 	 recalibrated when the base year is changed. Relative value determinations shall include 
310.22 	paid claims for admissions during each hospital's base year. The commissioner may 
310.23 	extend the time period forward to obtain sufficiently valid information to establish relative 
310.24 	values supplement the diagnostic classification systems data with national averages. 
310.25 	Relative value determinations shall not include property cost data, Medicare crossover 
310.26 	data, and data on admissions that are paid a per day transfer rate under subdivision 14. The 
310.27 	computation of the base year cost per admission must include identified outlier cases and 
310.28 	their weighted costs up to the point that they become outlier cases, but must exclude costs 
310.29 	recognized in outlier payments beyond that point. The commissioner may recategorize the 
310.30 	diagnostic classifications and recalculate recalibrate relative values and case mix indices 
310.31 	to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce 
310.32 	variances within the diagnostic categories after notice in the State Register and a 30-day 
310.33 	comment period. The commissioner shall recategorize the diagnostic classifications and 
310.34 	recalculate relative values and case mix indices based on the two-year schedule in effect 
310.35 	prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur 
311.1 	January 1, 2013, and shall occur every two years after. When rates are not rebased under 
311.2 	subdivision 2b, the commissioner may establish relative values and case mix indices based 
311.3 	on charge data and may update the base year to the most recent data available.

311.4 	Sec. 8. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
311.5 		Subd. 2b.Operating Hospital payment rates. In determining operating payment 
311.6 	rates for admissions occurring on or after the rate year beginning January 1, 1991, 
311.7 	and every two years after, or more frequently as determined by the commissioner, 
311.8 	the commissioner shall obtain operating data from an updated base year and establish 
311.9 	operating payment rates per admission for each hospital based on the cost-finding methods 
311.10 	and allowable costs of the Medicare program in effect during the base year. Rates under 
311.11 	the general assistance medical care, medical assistance, and MinnesotaCare programs shall 
311.12 	not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 
311.13 	months of the rebased period beginning January 1, 2009 (a) For discharges occurring on 
311.14 	or after November 1, 2014, hospital inpatient services for hospitals located in Minnesota 
311.15 	shall be paid according to the following:
311.16 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
311.17 	methodology;
311.18 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem 
311.19 	methodology under subdivision 25;
311.20 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
311.21 	distinct parts as defined by Medicare shall be paid according to the methodology under 
311.22 	subdivision 12; and
311.23 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
311.24 	(b) For the rebased period beginning January 1, 2011, through October 31, 2014, 
311.25 	rates shall not be rebased, except that a Minnesota long-term hospital shall be rebased 
311.26 	effective January 1, 2011, based on its most recent Medicare cost report ending on or 
311.27 	before September 1, 2008, with the provisions under subdivisions 9 and 23, based on the 
311.28 	rates in effect on December 31, 2010. For subsequent rate setting periods after November 
311.29 	1, 2014, in which the base years are updated, a Minnesota long-term hospital's base year 
311.30 	shall remain within the same period as other hospitals. Effective January 1, 2013, and 
311.31 	after, rates shall not be rebased.
311.32 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
311.33 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
311.34 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
311.35 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
312.1 	manner similar to Medicare. The base year for the rates effective November 1, 2014, shall 
312.2 	be calendar year 2012. The rebasing under this paragraph shall be budget neutral, ensuring 
312.3 	that the total aggregate payments under the rebased system are equal to the total aggregate 
312.4 	payments that were made for the same number and types of services in the base year. 
312.5 	Separate budget neutrality calculations shall be determined for payments made to critical 
312.6 	access hospitals and payments made to hospitals paid under the DRG system. Only the rate 
312.7 	increases or decreases under subdivision 3a or 3c that applied to the hospitals being rebased 
312.8 	during the entire base period shall be incorporated into the budget neutrality calculation.
312.9 	(d) For discharges occurring on or after November 1, 2014, through June 30, 2016, 
312.10 	the rebased rates under paragraph (c) shall include adjustments to the projected rates that 
312.11 	result in no greater than a five percent increase or decrease from the base year payments 
312.12 	for any hospital. Any adjustments to the rates made by the commissioner under this 
312.13 	paragraph and paragraph (e) shall maintain budget neutrality as described in paragraph (c). 
312.14 	(e) For discharges occurring on or after November 1, 2014, through June 30, 2016, 
312.15 	the commissioner may make additional adjustments to the rebased rates, and when 
312.16 	evaluating whether additional adjustments should be made, the commissioner shall 
312.17 	consider the impact of the rates on the following:
312.18 	(1) pediatric services;
312.19 	(2) behavioral health services;
312.20 	(3) trauma services as defined by the National Uniform Billing Committee;
312.21 	(4) transplant services;
312.22 	(5) obstetric services, newborn services, and behavioral health services provided 
312.23 	by hospitals outside the seven-county metropolitan area;
312.24 	(6) outlier admissions;
312.25 	(7) low-volume providers; and
312.26 	(8) services provided by small rural hospitals that are not critical access hospitals.
312.27 	(f) Hospital payment rates established under paragraph (c) must incorporate the 
312.28 	following:
312.29 	(1) for hospitals paid under the DRG methodology, the base year operating payment 
312.30 	rate per admission is standardized by the case mix index and adjusted by the hospital cost 
312.31 	index, relative values, and disproportionate population adjustment. applicable Medicare 
312.32 	wage index and adjusted by the hospital's disproportionate population adjustment;
312.33 	(2) for critical access hospitals, interim per diem payment rates shall be based on the 
312.34 	ratio of cost and charges reported on the base year Medicare cost report or reports and 
312.35 	applied to medical assistance utilization data. Final settlement payments for a state fiscal 
313.1 	year must be determined based on a review of the medical assistance cost report required 
313.2 	under subdivision 4b for the applicable state fiscal year;
313.3 	(3)  the cost and charge data used to establish operating hospital payment  rates shall
313.4 	 must only reflect inpatient services covered by medical assistance and shall not include 
313.5 	property cost information and costs recognized in outlier payments; and
313.6 	(4) in determining hospital payment rates for discharges occurring on or after the 
313.7 	rate year beginning January 1, 2011, through December 31, 2012, the hospital payment 
313.8 	rate per discharge shall be based on the cost-finding methods and allowable costs of the 
313.9 	Medicare program in effect during the base year or years.
313.10 	(g) The commissioner shall validate the rates effective November 1, 2014, by 
313.11 	applying the rates established under paragraph (c), and any adjustments made to the rates 
313.12 	under paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine 
313.13 	whether the total aggregate payments for the same number and types of services under the 
313.14 	rebased rates are equal to the total aggregate payments made during calendar year 2013.
313.15 	(h) Effective for discharges occurring on or after July 1, 2017, and every two 
313.16 	years thereafter, payment rates under this section shall be rebased to reflect only those 
313.17 	changes in hospital costs between the existing base year and the next base year. The 
313.18 	commissioner shall establish the base year for each rebasing period considering the most 
313.19 	recent year for which filed Medicare cost reports are available. The estimated change in 
313.20 	the average payment per hospital discharge resulting from a scheduled rebasing must be 
313.21 	calculated and made available to the legislature by January 15 of each year in which 
313.22 	rebasing is scheduled to occur, and must include by hospital the differential in payment 
313.23 	rates compared to the individual hospital's costs.

313.24 	Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
313.25 	to read:
313.26 		Subd. 2d.Interim payments. Notwithstanding subdivision 2b, paragraph (c), 
313.27 	for discharges occurring on or after November 1, 2014, through June 30, 2015, the 
313.28 	commissioner may implement an interim payment process to pay hospitals, including 
313.29 	payments based on each hospital's average payments per claim for state fiscal years 
313.30 	2011 and 2012. These interim payments may be used to pay hospitals if the rebasing 
313.31 	under subdivision 2b, paragraph (c), is not implemented by November 1, 2014. Claims 
313.32 	paid at interim payment rates shall be reprocessed and paid at the rates established under 
313.33 	subdivision 2b, paragraphs (c) and (d), upon implementation of the rebased rates.

314.1 	Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
314.2 	to read:
314.3 		Subd. 2e.Report required. (a) The commissioner shall report to the legislature by 
314.4 	March 1, 2015, and by March 1, 2016, on the financial impacts by hospital and policy 
314.5 	ramifications, if any, resulting from payment methodology changes implemented after 
314.6 	October 31, 2014, and before December 15, 2015.
314.7 	(b) The commissioner shall report, at a minimum, the following information:
314.8 	(1) case-mix adjusted calculations of net payment impacts for each hospital resulting 
314.9 	from the difference between the payments each hospital would have received under the 
314.10 	payment methodology for discharges before October 31, 2014, and the payments each 
314.11 	hospital has received or is expected to receive for the same number and types of services 
314.12 	under the payment methodology implemented effective November 1, 2014;
314.13 	(2) any adjustments that the commissioner made and the impacts of those 
314.14 	adjustments for each hospital;
314.15 	(3) any difference in total aggregate payments resulting from the validation process 
314.16 	under calendar year 2013 claims; and
314.17 	(4) recommendations for further refinement or improvement of the hospital inpatient 
314.18 	payment system or methodologies.

314.19 	Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
314.20 		Subd. 3a.Payments. (a) Acute care hospital billings under the medical 
314.21 	assistance program must not be submitted until the recipient is discharged. However, 
314.22 	the commissioner shall establish monthly interim payments for inpatient hospitals that 
314.23 	have individual patient lengths of stay over 30 days regardless of diagnostic category. 
314.24 	Except as provided in section 256.9693, medical assistance reimbursement for treatment 
314.25 	of mental illness shall be reimbursed based on diagnostic classifications. Individual 
314.26 	hospital payments established under this section and sections 256.9685, 256.9686, and 
314.27 	256.9695, in addition to third-party and recipient liability, for discharges occurring during 
314.28 	the rate year shall not exceed, in aggregate, the charges for the medical assistance covered 
314.29 	inpatient services paid for the same period of time to the hospital. This payment limitation 
314.30 	shall be calculated separately for medical assistance and general assistance medical 
314.31 	care services. The limitation on general assistance medical care shall be effective for 
314.32 	admissions occurring on or after July 1, 1991. Services that have rates established under 
314.33 	subdivision 11 or 12, must be limited separately from other services. After consulting with 
314.34 	the affected hospitals, the commissioner may consider related hospitals one entity and may 
314.35 	merge the payment rates while maintaining separate provider numbers. The operating and 
315.1 	property base rates per admission or per day shall be derived from the best Medicare and 
315.2 	claims data available when rates are established. The commissioner shall determine the 
315.3 	best Medicare and claims data, taking into consideration variables of recency of the data, 
315.4 	audit disposition, settlement status, and the ability to set rates in a timely manner. The 
315.5 	commissioner shall notify hospitals of payment rates by December 1 of the year preceding 
315.6 	the rate year 30 days prior to implementation. The rate setting data must reflect the 
315.7 	admissions data used to establish relative values. Base year changes from 1981 to the base 
315.8 	year established for the rate year beginning January 1, 1991, and for subsequent rate years, 
315.9 	shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase 
315.10 	under subdivision 1. The commissioner may adjust base year cost, relative value, and case 
315.11 	mix index data to exclude the costs of services that have been discontinued by the October 
315.12 	1 of the year preceding the rate year or that are paid separately from inpatient services. 
315.13 	Inpatient stays that encompass portions of two or more rate years shall have payments 
315.14 	established based on payment rates in effect at the time of admission unless the date of 
315.15 	admission preceded the rate year in effect by six months or more. In this case, operating 
315.16 	payment rates for services rendered during the rate year in effect and established based on 
315.17 	the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
315.18 	(b) For fee-for-service admissions occurring on or after July 1, 2002, the total 
315.19 	payment, before third-party liability and spenddown, made to hospitals for inpatient 
315.20 	services is reduced by .5 percent from the current statutory rates.
315.21 	(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service 
315.22 	admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before 
315.23 	third-party liability and spenddown, is reduced five percent from the current statutory 
315.24 	rates. Mental health services within diagnosis related groups 424 to 432 or corresponding 
315.25 	APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.
315.26 	(d) In addition to the reduction in paragraphs (b) and (c), the total payment for 
315.27 	fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for 
315.28 	inpatient services before third-party liability and spenddown, is reduced 6.0 percent from 
315.29 	the current statutory rates. Mental health services within diagnosis related groups 424 
315.30 	to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are 
315.31 	excluded from this paragraph. Notwithstanding section 256.9686, subdivision 7, for 
315.32 	purposes of this paragraph, medical assistance does not include general assistance medical 
315.33 	care. Payments made to managed care plans shall be reduced for services provided on or 
315.34 	after January 1, 2006, to reflect this reduction.
315.35 	(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for 
315.36 	fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made 
316.1 	to hospitals for inpatient services before third-party liability and spenddown, is reduced 
316.2 	3.46 percent from the current statutory rates. Mental health services with diagnosis 
316.3 	related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under 
316.4 	subdivision 16 are excluded from this paragraph. Payments made to managed care plans 
316.5 	shall be reduced for services provided on or after January 1, 2009, through June 30, 2009, 
316.6 	to reflect this reduction.
316.7 	(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
316.8 	for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011, 
316.9 	made to hospitals for inpatient services before third-party liability and spenddown, is 
316.10 	reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis 
316.11 	related groups 424 to 432 or corresponding APR-DRGs,  and facilities defined under 
316.12 	subdivision 16 are excluded from this paragraph. Payments made to managed care plans 
316.13 	shall be reduced for services provided on or after July 1, 2009, through June 30, 2011, 
316.14 	to reflect this reduction.
316.15 	(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment 
316.16 	for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for 
316.17 	inpatient services before third-party liability and spenddown, is reduced 1.79 percent from 
316.18 	the current statutory rates. Mental health services with diagnosis related groups 424 to 432
316.19 	 or corresponding APR-DRGs,  and facilities defined under subdivision 16 are excluded 
316.20 	from this paragraph. Payments made to managed care plans shall be reduced for services 
316.21 	provided on or after July 1, 2011, to reflect this reduction.
316.22 	(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total 
316.23 	payment for fee-for-service admissions occurring on or after July 1, 2009, made to 
316.24 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
316.25 	one percent from the current statutory rates. Facilities defined under subdivision 16 are 
316.26 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
316.27 	services provided on or after October 1, 2009, to reflect this reduction.
316.28 	(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total 
316.29 	payment for fee-for-service admissions occurring on or after July 1, 2011, made to 
316.30 	hospitals for inpatient services before third-party liability and spenddown, is reduced 
316.31 	1.96 percent from the current statutory rates. Facilities defined under subdivision 16 are 
316.32 	excluded from this paragraph. Payments made to managed care plans shall be reduced for 
316.33 	services provided on or after January 1, 2011, to reflect this reduction.
316.34 	(j) Effective for discharges on and after November 1, 2014, from hospitals paid 
316.35 	under subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this 
317.1 	subdivision must be incorporated into the rebased rates established under subdivision 2b, 
317.2 	paragraph (c), and must not be applied to each claim.

317.3 	Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
317.4 		Subd. 3b.Nonpayment for hospital-acquired conditions and for certain 
317.5 	treatments. (a) The commissioner must not make medical assistance payments to a 
317.6 	hospital for any costs of care that result from a condition listed identified in paragraph 
317.7 	(c), if the condition was hospital acquired.
317.8 	(b) For purposes of this subdivision, a condition is hospital acquired if it is not 
317.9 	identified by the hospital as present on admission. For purposes of this subdivision, 
317.10 	medical assistance includes general assistance medical care and MinnesotaCare.
317.11 	(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired 
317.12 	condition listed in this paragraph that isidentified in this paragraph that is represented 
317.13 	by an ICD-9-CM  or ICD-10-CM diagnosis code and is designated as a complicating 
317.14 	condition or a major complicating condition:
317.15 	(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
317.16 	(2) air embolism (ICD-9-CM code 999.1);
317.17 	(3) blood incompatibility (ICD-9-CM code 999.6);
317.18 	(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
317.19 	(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing 
317.20 	injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating 
317.21 	condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929; 
317.22 	940-949; and 991-994);
317.23 	(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
317.24 	(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
317.25 	(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11; 
317.26 	249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and 
317.27 	251.0);
317.28 	(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain 
317.29 	orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07; 
317.30 	81.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and 
317.31 	81.85);
317.32 	(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery 
317.33 	(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity 
317.34 	(ICD-9-CM code 278.01);
318.1 	(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary 
318.2 	artery bypass graft (procedure codes 36.10 to 36.19); and
318.3 	(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary 
318.4 	embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement 
318.5 	(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 to 
318.6 	81.52). The list of conditions shall be the hospital-acquired conditions (HAC) list defined 
318.7 	by the Centers for Medicare and Medicaid Services on an annual basis.
318.8 	(d) The prohibition in paragraph (a) applies to any additional payments that result 
318.9 	from a hospital-acquired condition listed identified in paragraph (c), including, but not 
318.10 	limited to, additional treatment or procedures, readmission to the facility after discharge, 
318.11 	increased length of stay, change to a higher diagnostic category, or transfer to another 
318.12 	hospital. In the event of a transfer to another hospital, the hospital where the condition 
318.13 	listed identified under paragraph (c) was acquired is responsible for any costs incurred at 
318.14 	the hospital to which the patient is transferred.
318.15 	(e) A hospital shall not bill a recipient of services for any payment disallowed under 
318.16 	this subdivision.

318.17 	Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 3c, is amended to read:
318.18 		Subd. 3c.Rateable reduction and readmissions reduction. (a) The total payment 
318.19 	for fee for service admissions occurring on or after September 1, 2011, through June 30, 
318.20 	2015 to October 31, 2014, made to hospitals for inpatient services before third-party 
318.21 	liability and spenddown, is reduced ten percent from the current statutory rates. Facilities 
318.22 	defined under subdivision 16, long-term hospitals as determined under the Medicare 
318.23 	program, children's hospitals whose inpatients are predominantly under 18 years of age, 
318.24 	and payments under managed care are excluded from this paragraph.
318.25 	(b) Effective for admissions occurring during calendar year 2010 and each year 
318.26 	after, the commissioner shall calculate a regional readmission rate for admissions to all 
318.27 	hospitals occurring within 30 days of a previous discharge using data from the Reducing 
318.28 	Avoidable Readmissions Effectively (RARE) campaign. The commissioner may adjust 
318.29 	the readmission rate taking into account factors such as the medical relationship, 
318.30 	complicating conditions, and sequencing of treatment between the initial admission and 
318.31 	subsequent readmissions.
318.32 	(c) Effective for payments to all hospitals on or after July 1, 2013, through June 30, 
318.33 	2015 October 31, 2014, the reduction in paragraph (a) is reduced one percentage point for 
318.34 	every percentage point reduction in the overall readmissions rate between the two previous 
318.35 	calendar years to a maximum of five percent.
319.1 	(d) The exclusion from the rate reduction in paragraph (a) shall apply to a hospital 
319.2 	located in Hennepin County with a licensed capacity of 1,700 beds as of September 1, 
319.3 	2011, for admissions of children under 18 years of age occurring on or after September 1, 
319.4 	2011, through August 31, 2013, but shall not apply to payments for admissions occurring 
319.5 	on or after September 1, 2013, through October 31, 2014.
319.6 	(e) Effective for discharges on or after November 1, 2014, from hospitals paid under 
319.7 	subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision 
319.8 	must be incorporated into the rebased rates established under subdivision 2b, paragraph 
319.9 	(c), and must not be applied to each claim.

319.10 	EFFECTIVE DATE. Paragraph (d) is effective retroactively from September 1, 
319.11 	2011, and applies to admissions on or after that date.

319.12 	Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
319.13 	to read:
319.14 		Subd. 4b.Medical assistance cost reports for services. (a) A hospital that meets 
319.15 	one of the following criteria must annually submit to the commissioner medical assistance 
319.16 	cost reports within six months of the end of the hospital's fiscal year:
319.17 	(1) a hospital designated as a critical access hospital that receives medical assistance 
319.18 	payments; or
319.19 	(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local 
319.20 	trade area that receives a disproportionate population adjustment under subdivision 9.
319.21 	For purposes of this subdivision, local trade area has the meaning given in 
319.22 	subdivision 17.
319.23 	(b) The commissioner shall suspend payments to any hospital that fails to submit a 
319.24 	report required under this subdivision. Payments must remain suspended until the report 
319.25 	has been filed with and accepted by the commissioner.

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

319.29 	Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:
319.30 		Subd. 8.Unusual length of stay experience. (a) The commissioner shall establish 
319.31 	day outlier thresholds for each diagnostic category established under subdivision 2 at 
319.32 	two standard deviations beyond the mean length of stay. Payment for the days beyond 
319.33 	the outlier threshold shall be in addition to the operating and property payment rates per 
320.1 	admission established under subdivisions 2, and 2b, and 2c. Payment for outliers shall 
320.2 	be at 70 percent of the allowable operating cost, after adjustment by the case mix index, 
320.3 	hospital cost index, relative values and the disproportionate population adjustment. The 
320.4 	outlier threshold for neonatal and burn diagnostic categories shall be established at one 
320.5 	standard deviation beyond the mean length of stay, and payment shall be at 90 percent 
320.6 	of allowable operating cost calculated in the same manner as other outliers. A hospital 
320.7 	may choose an alternative to the 70 percent outlier payment that is at a minimum of 60 
320.8 	percent and a maximum of 80 percent if the commissioner is notified in writing of the 
320.9 	request by October 1 of the year preceding the rate year. The chosen percentage applies 
320.10 	to all diagnostic categories except burns and neonates. The percentage of allowable cost 
320.11 	that is unrecognized by the outlier payment shall be added back to the base year operating 
320.12 	payment rate per admission.
320.13 	(b) Effective for transfers occurring on and after November 1, 2014, the commissioner 
320.14 	shall establish payment rates for acute transfers that are based on Medicare methodologies.

320.15 	Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:
320.16 		Subd. 8a.Short length of stay Neonatal admissions. Except as provided in 
320.17 	subdivision 13, for admissions occurring on or after July 1, 1995, payment shall be 
320.18 	determined as follows and shall be included in the base year for rate setting purposes:
320.19 	(1) for an admission that is categorized to a neonatal diagnostic related group 
320.20 	in which the length of stay is less than 50 percent of the average length of stay for the 
320.21 	category in the base year and the patient at admission is equal to or greater than the age of 
320.22 	one, payments shall be established according to the methods of subdivision 14;
320.23 	(2) For an admission that is categorized to a diagnostic category that includes 
320.24 	neonatal respiratory distress syndrome, the hospital must have a level II or level III 
320.25 	nursery and the patient must receive treatment in that unit or payment will be made 
320.26 	without regard to the syndrome condition.

320.27 	EFFECTIVE DATE. This section is effective November 1, 2014.

320.28 	Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision 
320.29 	to read:
320.30 		Subd. 8c.Hospital residents. For discharges occurring on or after November 1, 
320.31 	2014, payments for hospital residents shall be made as follows:
320.32 	(1) payments for the first 180 days of inpatient care shall be the APR-DRG system 
320.33 	plus any outliers; and
321.1 	(2) payment for all medically necessary patient care subsequent to the first 180 days 
321.2 	shall be reimbursed at a rate computed by multiplying the statewide average cost-to-charge 
321.3 	ratio by the usual and customary charges.

321.4 	Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
321.5 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For 
321.6 	admissions occurring on or after October 1, 1992, through December 31, 1992, the 
321.7 	medical assistance disproportionate population adjustment shall comply with federal law 
321.8 	and shall be paid to a hospital, excluding regional treatment centers and facilities of the 
321.9 	federal Indian Health Service, with a medical assistance inpatient utilization rate in excess 
321.10 	of the arithmetic mean. The adjustment must be determined as follows:
321.11 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
321.12 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
321.13 	federal Indian Health Service but less than or equal to one standard deviation above the 
321.14 	mean, the adjustment must be determined by multiplying the total of the operating and 
321.15 	property payment rates by the difference between the hospital's actual medical assistance 
321.16 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
321.17 	treatment centers and facilities of the federal Indian Health Service; and
321.18 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
321.19 	standard deviation above the mean, the adjustment must be determined by multiplying 
321.20 	the adjustment that would be determined under clause (1) for that hospital by 1.1. If 
321.21 	federal matching funds are not available for all adjustments under this subdivision, the 
321.22 	commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for 
321.23 	federal match. The commissioner may establish a separate disproportionate population 
321.24 	operating payment rate adjustment under the general assistance medical care program. 
321.25 	For purposes of this subdivision medical assistance does not include general assistance 
321.26 	medical care. The commissioner shall report annually on the number of hospitals likely to 
321.27 	receive the adjustment authorized by this paragraph. The commissioner shall specifically 
321.28 	report on the adjustments received by public hospitals and public hospital corporations 
321.29 	located in cities of the first class.
321.30 	(b) For admissions occurring on or after July 1, 1993, the medical assistance 
321.31 	disproportionate population adjustment shall comply with federal law and shall be paid to 
321.32 	a hospital, excluding regional treatment centers and facilities of the federal Indian Health 
321.33 	Service, with a medical assistance inpatient utilization rate in excess of the arithmetic 
321.34 	mean. The adjustment must be determined as follows:
322.1 	(1) for a hospital with a medical assistance inpatient utilization rate above the 
322.2 	arithmetic mean for all hospitals excluding regional treatment centers and facilities of the 
322.3 	federal Indian Health Service but less than or equal to one standard deviation above the 
322.4 	mean, the adjustment must be determined by multiplying the total of the operating and 
322.5 	property payment rates by the difference between the hospital's actual medical assistance 
322.6 	inpatient utilization rate and the arithmetic mean for all hospitals excluding regional 
322.7 	treatment centers and facilities of the federal Indian Health Service; and
322.8 	(2) for a hospital with a medical assistance inpatient utilization rate above one 
322.9 	standard deviation above the mean, the adjustment must be determined by multiplying 
322.10 	the adjustment that would be determined under clause (1) for that hospital by 1.1. The 
322.11 	commissioner may establish a separate disproportionate population operating payment 
322.12 	rate adjustment under the general assistance medical care program. For purposes of 
322.13 	this subdivision, medical assistance does not include general assistance medical care
322.14 	 for critical access hospitals. The commissioner shall report annually on the number of 
322.15 	hospitals likely to receive the adjustment authorized by this paragraph. The commissioner 
322.16 	shall specifically report on the adjustments received by public hospitals and public hospital 
322.17 	corporations located in cities of the first class;.
322.18 	(3) for a hospital that had medical assistance fee-for-service payment volume during 
322.19 	calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service 
322.20 	payment volume, a medical assistance disproportionate population adjustment shall be 
322.21 	paid in addition to any other disproportionate payment due under this subdivision as 
322.22 	follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995. 
322.23 	For a hospital that had medical assistance fee-for-service payment volume during calendar 
322.24 	year 1991 in excess of eight percent of total medical assistance fee-for-service payment 
322.25 	volume and was the primary hospital affiliated with the University of Minnesota, a 
322.26 	medical assistance disproportionate population adjustment shall be paid in addition to any 
322.27 	other disproportionate payment due under this subdivision as follows: $505,000 due on 
322.28 	the 15th of each month after noon, beginning July 15, 1995; and
322.29 	(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be 
322.30 	reduced to zero.
322.31 	(c) The commissioner shall adjust rates paid to a health maintenance organization 
322.32 	under contract with the commissioner to reflect rate increases provided in paragraph (b), 
322.33 	clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those 
322.34 	rates to reflect payments provided in clause (3).
323.1 	(d) If federal matching funds are not available for all adjustments under paragraph 
323.2 	(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a 
323.3 	pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
323.4 	(e) For purposes of this subdivision, medical assistance does not include general 
323.5 	assistance medical care.
323.6 	(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
323.7 	(1) general assistance medical care expenditures for fee-for-service inpatient and 
323.8 	outpatient hospital payments made by the department shall be considered Medicaid 
323.9 	disproportionate share hospital payments, except as limited below:
323.10 	 (i) only the portion of Minnesota's disproportionate share hospital allotment under 
323.11 	section 1923(f) of the Social Security Act that is not spent on the disproportionate 
323.12 	population adjustments in paragraph (b), clauses (1) and (2), may be used for general 
323.13 	assistance medical care expenditures;
323.14 	 (ii) only those general assistance medical care expenditures made to hospitals that 
323.15 	qualify for disproportionate share payments under section 1923 of the Social Security Act 
323.16 	and the Medicaid state plan may be considered disproportionate share hospital payments;
323.17 	 (iii) only those general assistance medical care expenditures made to an individual 
323.18 	hospital that would not cause the hospital to exceed its individual hospital limits under 
323.19 	section 1923 of the Social Security Act may be considered; and
323.20 	 (iv) general assistance medical care expenditures may be considered only to the 
323.21 	extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
323.22 	All hospitals and prepaid health plans participating in general assistance medical care 
323.23 	must provide any necessary expenditure, cost, and revenue information required by the 
323.24 	commissioner as necessary for purposes of obtaining federal Medicaid matching funds for 
323.25 	general assistance medical care expenditures; and
323.26 	(2) (c) Certified public expenditures made by Hennepin County Medical Center shall 
323.27 	be considered Medicaid disproportionate share hospital payments. Hennepin County 
323.28 	and Hennepin County Medical Center shall report by June 15, 2007, on payments made 
323.29 	beginning July 1, 2005, or another date specified by the commissioner, that may qualify 
323.30 	for reimbursement under federal law. Based on these reports, the commissioner shall 
323.31 	apply for federal matching funds.
323.32 	(g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
323.33 	 is effective retroactively from July 1, 2005, or the earliest effective date approved by the 
323.34 	Centers for Medicare and Medicaid Services.

323.35 	Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
324.1 		Subd. 10.Separate billing by certified registered nurse anesthetists. Hospitals 
324.2 	may must exclude certified registered nurse anesthetist costs from the operating payment 
324.3 	rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must 
324.4 	notify the commissioner in writing by October 1 of even-numbered years to exclude 
324.5 	certified registered nurse anesthetist costs. The hospital must agree that all hospital 
324.6 	claims for the cost and charges of certified registered nurse anesthetist services will not 
324.7 	be included as part of the rates for inpatient services provided during the rate year. In 
324.8 	this case, the operating payment rate shall be adjusted to exclude the cost of certified 
324.9 	registered nurse anesthetist services.
324.10 	For admissions occurring on or after July 1, 1991, and until the expiration date of 
324.11 	section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided 
324.12 	on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when 
324.13 	the hospital's base year did not include the cost of these services. To be eligible, a hospital 
324.14 	must notify the commissioner in writing by July 1, 1991, of the request and must comply 
324.15 	with all other requirements of this subdivision.

324.16 	Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:
324.17 		Subd. 12.Rehabilitation hospitals and distinct parts. (a) Units of hospitals that 
324.18 	are recognized as rehabilitation distinct parts by the Medicare program shall have separate 
324.19 	provider numbers under the medical assistance program for rate establishment and billing 
324.20 	purposes only. These units shall also have operating and property payment rates and the 
324.21 	disproportionate population adjustment, if allowed by federal law, established separately 
324.22 	from other inpatient hospital services. 
324.23 	(b) The commissioner may shall establish separate relative values under subdivision 
324.24 	2 for rehabilitation hospitals and distinct parts as defined by the Medicare program. 
324.25 	Effective for discharges occurring on and after November 1, 2014, the commissioner, to 
324.26 	the extent possible, shall replicate the existing payment rate methodology under the new 
324.27 	diagnostic classification system. The result must be budget neutral, ensuring that the total 
324.28 	aggregate payments under the new system are equal to the total aggregate payments made 
324.29 	for the same number and types of services in the base year, calendar year 2012.
324.30 	(c) For individual hospitals that did not have separate medical assistance 
324.31 	rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals 
324.32 	shall provide the information needed to separate rehabilitation distinct part cost and claims 
324.33 	data from other inpatient service data.

324.34 	Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
325.1 		Subd. 14.Transfers. Except as provided in subdivisions 11 and 13,(a) Operating 
325.2 	and property payment rates for admissions that result in transfers and transfers shall be 
325.3 	established on a per day payment system. The per day payment rate shall be the sum of 
325.4 	the adjusted operating and property payment rates determined under this subdivision and 
325.5 	subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length 
325.6 	of stay for the diagnostic category. Each admission that results in a transfer and each 
325.7 	transfer is considered a separate admission to each hospital, and the total of the admission 
325.8 	and transfer payments to each hospital must not exceed the total per admission payment 
325.9 	that would otherwise be made to each hospital under this subdivision and subdivisions 
325.10 	2, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.
325.11 	(b) Effective for transfers occurring on and after November 1, 2014, the commissioner 
325.12 	shall establish payment rates for acute transfers that are based on Medicare methodologies.

325.13 	Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
325.14 		Subd. 17.Out-of-state hospitals in local trade areas. Out-of-state hospitals that 
325.15 	are located within a Minnesota local trade area and that have more than 20 admissions in 
325.16 	the base year or years shall have rates established using the same procedures and methods 
325.17 	that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area 
325.18 	means a county contiguous to Minnesota and located in a metropolitan statistical area as 
325.19 	determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals 
325.20 	that are not required by law to file information in a format necessary to establish rates shall 
325.21 	have rates established based on the commissioner's estimates of the information. Relative 
325.22 	values of the diagnostic categories shall not be redetermined under this subdivision until 
325.23 	required by rule statute. Hospitals affected by this subdivision shall then be included in 
325.24 	determining relative values. However, hospitals that have rates established based upon 
325.25 	the commissioner's estimates of information shall not be included in determining relative 
325.26 	values. This subdivision is effective for hospital fiscal years beginning on or after July 
325.27 	1, 1988. A hospital shall provide the information necessary to establish rates under this 
325.28 	subdivision at least 90 days before the start of the hospital's fiscal year.

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

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

326.13 	Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
326.14 		Subd. 30.Payment rates for births. (a) For admissions occurring on or after 
326.15 	October 1, 2009 November 1, 2014, the total operating and property payment rate, 
326.16 	excluding disproportionate population adjustment, for the following diagnosis-related 
326.17 	groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section 
326.18 	without complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372 
326.19 	vaginal delivery with complicating diagnosis; and (3) 373 vaginal delivery without 
326.20 	complicating diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater 
326.21 	than $3,528.
326.22 	(b) The rates described in this subdivision do not include newborn care.
326.23 	(c) Payments to managed care and county-based purchasing plans under section 
326.24 	256B.69, 256B.692, or 256L.12 shall be reduced for services provided on or after October 
326.25 	1, 2009, to reflect the adjustments in paragraph (a).
326.26 	(d) Prior authorization shall not be required before reimbursement is paid for a 
326.27 	cesarean section delivery.

326.28 	Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a 
326.29 	subdivision to read:
326.30 		Subd. 24.Medicaid waiver requests and state plan amendments. Prior to 
326.31 	submitting any Medicaid waiver request or Medicaid state plan amendment to the federal 
326.32 	government for approval, the commissioner shall publish the text of the waiver request or 
326.33 	state plan amendment, and a summary of and explanation of the need for the request, on 
327.1 	the agency's Web site and provide a 30-day public comment period. The commissioner 
327.2 	shall notify the public of the availability of this information through the agency's electronic 
327.3 	subscription service. The commissioner shall consider public comments when preparing 
327.4 	the final waiver request or state plan amendment that is to be submitted to the federal 
327.5 	government for approval. The commissioner shall also publish on the agency's Web site 
327.6 	notice of any federal decision related to the state request for approval, within 30 days of 
327.7 	the decision. This notice must describe any modifications to the state request that have 
327.8 	been agreed to by the commissioner as a condition of receiving federal approval.

327.9 	Sec. 28. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 17, 
327.10 	is amended to read:
327.11 		Subd. 17.Transportation costs. (a) "Nonemergency medical transportation 
327.12 	service" means motor vehicle transportation provided by a public or private person 
327.13 	that serves Minnesota health care program beneficiaries who do not require emergency 
327.14 	ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered 
327.15 	medical services. Nonemergency medical transportation service includes, but is not 
327.16 	limited to, special transportation service, defined in section 174.29, subdivision 1.
327.17 	(a)(b) Medical assistance covers medical transportation costs incurred solely for 
327.18 	obtaining emergency medical care or transportation costs incurred by eligible persons in 
327.19 	obtaining emergency or nonemergency medical care when paid directly to an ambulance 
327.20 	company, common carrier, or other recognized providers of transportation services. 
327.21 	Medical transportation must be provided by:
327.22 	(1) an ambulance nonemergency medical transportation providers who meet the 
327.23 	requirements of this subdivision;
327.24 	(2) ambulances, as defined in section 144E.001, subdivision 2;
327.25 	(2) special transportation; or
327.26 	(3) common carrier including, but not limited to, bus, taxicab, other commercial 
327.27 	carrier, or private automobile taxicabs and public transit, as defined in section 174.22, 
327.28 	subdivision 7; or
327.29 	(4) not-for-hire vehicles, including volunteer drivers.
327.30 	(b)(c) Medical assistance covers special transportation, as defined in Minnesota 
327.31 	Rules, part 9505.0315, subpart 1, item F, if the recipient has a physical or mental 
327.32 	impairment that would prohibit the recipient from safely accessing and using a bus, 
327.33 	taxi, other commercial transportation, or private automobile. nonemergency medical 
327.34 	transportation provided by nonemergency medical transportation providers enrolled in 
327.35 	the Minnesota health care programs.  All nonemergency medical transportation providers 
328.1 	must comply with the operating standards for special transportation service as defined in 
328.2 	sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and in consultation with 
328.3 	the Minnesota Department of Transportation. All nonemergency medical transportation 
328.4 	providers shall bill for nonemergency medical transportation services in accordance with 
328.5 	Minnesota health care programs criteria.  Publicly operated transit systems, volunteers, 
328.6 	and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.
328.7 	(d) The administrative agency of nonemergency medical transportation must:
328.8 	(1) adhere to the policies defined by the commissioner in consultation with the 
328.9 	Nonemergency Medical Transportation Advisory Committee;
328.10 	(2) pay nonemergency medical transportation providers for services provided to 
328.11 	Minnesota health care programs beneficiaries to obtain covered medical services;
328.12 	(3) provide data monthly to the commissioner on appeals, complaints, no-shows, 
328.13 	canceled trips, and number of trips by mode; and
328.14 	(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single 
328.15 	administrative structure assessment tool that meets the technical requirements established 
328.16 	by the commissioner, reconciles trip information with claims being submitted by 
328.17 	providers, and ensures prompt payment for nonemergency medical transportation services.
328.18 	(e) Until the commissioner implements the single administrative structure and 
328.19 	delivery system under subdivision 18e, clients shall obtain their level-of-service certificate 
328.20 	from the commissioner or an entity approved by the commissioner that does not dispatch 
328.21 	rides for clients using modes under paragraph (h), clauses (4), (5), (6), and (7).
328.22 	(f) The commissioner may use an order by the recipient's attending physician
328.23 	 or a medical or mental health professional to certify that the recipient requires 
328.24 	special transportation services nonemergency medical transportation services. Special
328.25 	Nonemergency medical transportation providers shall perform driver-assisted services for 
328.26 	eligible individuals, when appropriate. Driver-assisted service includes passenger pickup 
328.27 	at and return to the individual's residence or place of business, assistance with admittance 
328.28 	of the individual to the medical facility, and assistance in passenger securement or in 
328.29 	securing of wheelchairs or stretchers in the vehicle. SpecialNonemergency medical 
328.30 	transportation providers must obtain written documentation from the health care service 
328.31 	provider who is serving the recipient being transported, identifying the time that the 
328.32 	recipient arrived. Specialhave trip logs, which include pickup and drop-off times, signed 
328.33 	by the medical provider or client attesting mileage traveled to obtain covered medical 
328.34 	services, whichever is deemed most appropriate. Nonemergency medical transportation 
328.35 	providers may not bill for separate base rates for the continuation of a trip beyond the 
328.36 	original destination. SpecialNonemergency medical transportation providers must take 
329.1 	recipientsclients to the health care provider, using the most direct route, and must not 
329.2 	exceed 30 miles for a trip to a primary care provider or 60 miles for a trip to a specialty 
329.3 	care provider, unless the recipientclient receives authorization from the local agency. The 
329.4 	minimum medical assistance reimbursement rates for special transportation services are:
329.5 	(1)(i) $17 for the base rate and $1.35 per mile for special transportation services to 
329.6 	eligible persons who need a wheelchair-accessible van;
329.7 	(ii) $11.50 for the base rate and $1.30 per mile for special transportation services to 
329.8 	eligible persons who do not need a wheelchair-accessible van; and
329.9 	(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip, 
329.10 	for special transportation services to eligible persons who need a stretcher-accessible 
329.11 	vehicle; and
329.12 	(2) clients requesting client mileage reimbursement must sign the trip log attesting 
329.13 	mileage traveled to obtain covered medical services.
329.14 	(g) The covered modes of nonemergency medical transportation include 
329.15 	transportation provided directly by clients or family members of clients with their own 
329.16 	transportation, volunteers using their own vehicles, taxicabs, and public transit, or 
329.17 	provided to a client who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle, 
329.18 	or a vehicle that is not stretcher-accessible or lift/ramp equipped designed to transport ten 
329.19 	or fewer persons. Upon implementation of a new rate structure, a new covered mode of 
329.20 	nonemergency medical transportation shall include transportation provided to a client who 
329.21 	needs a protected vehicle that is not an ambulance or police car and has safety locks, a 
329.22 	video recorder, and a transparent thermoplastic partition between the passenger and the 
329.23 	vehicle driver.
329.24 	(h) The administrative agency shall use the level of service process established by the 
329.25 	commissioner in consultation with the Nonemergency Medical Transportation Advisory 
329.26 	Committee to determine the client's most appropriate mode of transportation.  If public 
329.27 	transit or a certified transportation provider is not available to provide the appropriate 
329.28 	service mode for the client, the client may receive a onetime service upgrade. The new 
329.29 	modes of transportation, which may not be implemented without a new rate structure, are:
329.30 	(1) client reimbursement, which includes client mileage reimbursement provided 
329.31 	to clients who have their own transportation or family who provides transportation to 
329.32 	the client;
329.33 	(2) volunteer transport, which includes transportation by volunteers using their 
329.34 	own vehicle;
329.35 	(3) unassisted transport, which includes transportation provided to a client by a 
329.36 	taxicab or public transit. If a taxicab or publicly operated transit system is not available, 
330.1 	the client can receive transportation from another nonemergency medical transportation 
330.2 	provider;
330.3 	(4) assisted transport, which includes transport provided to clients who require 
330.4 	assistance by a nonemergency medical transportation provider;
330.5 	(5) lift-equipped/ramp transport, which includes transport provided to a client who 
330.6 	is dependent on a device and requires a nonemergency medical transportation provider 
330.7 	with a vehicle containing a lift or ramp;
330.8 	(6) protected transport, which includes transport to a client who has received a 
330.9 	prescreening that has deemed other forms of transportation inappropriate and who requires 
330.10 	a provider certified as a protected transport provider; and
330.11 	(7) stretcher transport, which includes transport for a client in a prone or supine 
330.12 	position and requires a nonemergency medical transportation provider with a vehicle that 
330.13 	can transport a client in a prone or supine position.
330.14 	(i) In accordance with subdivision 18e, by July 1, 2016, the local agency shall be 
330.15 	the single administrative agency and shall administer and reimburse for modes defined in 
330.16 	paragraph (h) according to a new rate structure, once this is adopted.
330.17 	(j) The commissioner shall:
330.18 	(1) in consultation with the Nonemergency Medical Transportation Advisory 
330.19 	Committee, verify that the mode and use of nonemergency medical transportation is 
330.20 	appropriate;
330.21 	(2) verify that the client is going to an approved medical appointment; and
330.22 	(3) investigate all complaints and appeals.
330.23 	(k) The administrative agency shall pay for the services provided in this subdivision 
330.24 	and seek reimbursement from the commissioner, if appropriate. As vendors of medical 
330.25 	care, local agencies are subject to the provisions in section 256B.041, the sanctions and 
330.26 	monetary recovery actions in section 256B.064, and Minnesota Rules parts 9505.2160 
330.27 	to 9505.2245.
330.28 	(l) The base rates for special transportation services in areas defined under RUCA 
330.29 	to be super rural shall be equal to the reimbursement rate established in paragraph (f), 
330.30 	clause (1),  plus 11.3 percent;,  and
330.31 	(3) for special transportation services in areas defined under RUCA to be rural 
330.32 	or super rural areas:
330.33 	(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125 
330.34 	percent of the respective mileage rate in paragraph (f), clause (1); and
330.35 	(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to 
330.36 	112.5 percent of the respective mileage rate in paragraph (f), clause (1).
331.1 	(c)(m) For purposes of reimbursement rates for special transportation services under 
331.2 	paragraph (b), the zip code of the recipient's place of residence shall determine whether 
331.3 	the urban, rural, or super rural reimbursement rate applies.
331.4 	(d)(n) For purposes of this subdivision, "rural urban commuting area" or "RUCA" 
331.5 	means a census-tract based classification system under which a geographical area is 
331.6 	determined to be urban, rural, or super rural.
331.7 	(e)(o) Effective for services provided on or after September 1, 2011, nonemergency 
331.8 	transportation rates, including special transportation, taxi, and other commercial carriers, 
331.9 	are reduced 4.5 percent. Payments made to managed care plans and county-based 
331.10 	purchasing plans must be reduced for services provided on or after January 1, 2012, 
331.11 	to reflect this reduction.

331.12 	Sec. 29. Minnesota Statutes 2012, section 256B.0625, subdivision 18b, is amended to 
331.13 	read:
331.14 		Subd. 18b.Broker dispatching prohibition. Except for establishing level of 
331.15 	service process, the commissioner shall not use a broker or coordinator for any purpose 
331.16 	related to nonemergency medical transportation services under subdivision 18.

331.17 	Sec. 30. Minnesota Statutes 2012, section 256B.0625, subdivision 18c, is amended to 
331.18 	read:
331.19 		Subd. 18c.Nonemergency Medical Transportation Advisory Committee.
 331.20 	(a) The Nonemergency Medical Transportation Advisory Committee shall advise the 
331.21 	commissioner on the administration of nonemergency medical transportation covered 
331.22 	under medical assistance. The advisory committee shall meet at least quarterly the first 
331.23 	year following January 1, 2015, and at least biannually thereafter and may meet more 
331.24 	frequently as required by the commissioner. The advisory committee shall annually 
331.25 	elect a chair from among its members, who shall work with the commissioner or the 
331.26 	commissioner's designee to establish the agenda for each meeting. The commissioner, or 
331.27 	the commissioner's designee, shall attend all advisory committee meetings.
331.28 	(b) The Nonemergency Medical Transportation Advisory Committee shall advise 
331.29 	and make recommendations to the commissioner on:
331.30 	(1) the development of, and periodic updates to, athe nonemergency medical 
331.31 	transportation policy manual for nonemergency medical transportation services;
331.32 	(2) policies and a funding source for reimbursing no-load miles;
331.33 	(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the 
331.34 	nonemergency medical transportation system;
332.1 	(4) other issues identified in the 2011 evaluation report by the Office of the 
332.2 	Legislative Auditor on medical nonemergency transportation; and
332.3 	(5)(2) other aspects of the nonemergency medical transportation system, as 
332.4 	requested by the commissioner.; and
332.5 	(3) other aspects of the nonemergency medical transportation system, as requested by:
332.6 	(i) a committee member, who may request an item to be placed on the agenda for 
332.7 	a future meeting. The request may be considered by the committee and voted upon. 
332.8 	If the motion carries, the meeting agenda item may be developed for presentation to 
332.9 	the committee; and
332.10 	(ii) a member of the public, who may approach the committee by letter or e-mail 
332.11 	requesting that an item be placed on a future meeting agenda. The request may be 
332.12 	considered by the committee and voted upon. If the motion carries, the agenda item may 
332.13 	be developed for presentation to the committee.
332.14 	(c) The Nonemergency Medical Transportation Advisory Committee shall 
332.15 	coordinate its activities with the Minnesota Council on Transportation Access established 
332.16 	under section 174.285. The chair of the advisory committee, or the chair's designee, shall 
332.17 	attend all meetings of the Minnesota Council on Transportation Access.
332.18 	(d) The Nonemergency Medical Transportation Advisory Committee shall expire 
332.19 	December 1, 2014 2019.

332.20 	Sec. 31. Minnesota Statutes 2012, section 256B.0625, subdivision 18d, is amended to 
332.21 	read:
332.22 		Subd. 18d.Advisory committee members. (a) The Nonemergency Medical 
332.23 	Transportation Advisory Committee consists of:
332.24 	(1) two voting members who represent counties, at least one of whom must represent 
332.25 	a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 
332.26 	Ramsey, Scott, Sherburne, Washington, and Wright four voting members who represent 
332.27 	counties, utilizing the rural urban commuting area classification system. As defined in 
332.28 	subdivision 17, these members shall be designated as follows:
332.29 	(i) two counties within the 11-county metropolitan area;
332.30 	(ii) one county representing the rural area of the state; and
332.31 	(iii) one county representing the super rural area of the state.
332.32 	The Association of Minnesota Counties shall appoint one county within the 11-county 
332.33 	metropolitan area and one county representing the super rural area of the state. The 
332.34 	Minnesota Inter-County Association shall appoint one county within the 11-county 
332.35 	metropolitan area and one county representing the rural area of the state;
333.1 	(2) fourthree voting members who represent medical assistance recipients, including 
333.2 	persons with physical and developmental disabilities, persons with mental illness, seniors, 
333.3 	children, and low-income individuals;
333.4 	(3) four voting members who represent providers that deliver nonemergency medical 
333.5 	transportation services to medical assistance enrollees;
333.6 	(4) two voting members of the house of representatives, one from the majority 
333.7 	party and one from the minority party, appointed by the speaker of the house, and two 
333.8 	voting members from the senate, one from the majority party and one from the minority 
333.9 	party, appointed by the Subcommittee on Committees of the Committee on Rules and 
333.10 	Administration;
333.11 	(5) one voting member who represents demonstration providers as defined in section 
333.12 	256B.69, subdivision 2;
333.13 	(6) one voting member who represents an organization that contracts with state or 
333.14 	local governments to coordinate transportation services for medical assistance enrollees; 
333.15 	and
333.16 	(7) one voting member who represents the Minnesota State Council on Disability;
333.17 	(8) the commissioner of transportation or the commissioner's designee, who shall 
333.18 	serve as a voting member;
333.19 	(9) one voting member appointed by the Minnesota Ambulance Association; and
333.20 	(10) one voting member appointed by the Minnesota Hospital Association.
333.21 	(b) Members of the advisory committee shall not be employed by the Department of 
333.22 	Human Services. Members of the advisory committee shall receive no compensation.

333.23 	Sec. 32. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18e, 
333.24 	is amended to read:
333.25 		Subd. 18e.Single administrative structure and delivery system. (a) The 
333.26 	commissioner shall implement a single administrative structure and delivery system 
333.27 	for nonemergency medical transportation, beginning the latter of the date the single 
333.28 	administrative assessment tool required in this paragraph is available for use, as 
333.29 	determined by the commissioner or by July 1, 2014 2016. The single administrative 
333.30 	structure and delivery system must:
333.31 	(1) eliminate the distinction between access transportation services and special 
333.32 	transportation services;
333.33 	(2) enable all medical assistance recipients to follow the same process to obtain 
333.34 	nonemergency medical transportation, regardless of their level of need;
334.1 	(3) provide a single oversight framework for all providers of nonemergency medical 
334.2 	transportation; and
334.3 	(4) provide flexibility in service delivery, recognizing that clients fall along a 
334.4 	continuum of needs and resources.
334.5 	(b) The commissioner shall present to the legislature, by January 15, 2014, 
334.6 	legislation necessary to implement the single administrative structure and delivery system 
334.7 	for nonemergency medical transportation.
334.8 	(c) In developing the single administrative structure and delivery system and the draft 
334.9 	legislation, the commissioner shall consult with the Nonemergency Medical Transportation 
334.10 	Advisory Committee. In coordination with the Department of Transportation, the 
334.11 	commissioner shall develop and authorize a Web-based single administrative structure 
334.12 	and assessment tool, which must operate 24 hours a day, seven days a week, to facilitate 
334.13 	the enrollee assessment process for nonemergency medical transportation services.  
334.14 	The Web-based tool shall facilitate the transportation eligibility determination process 
334.15 	initiated by clients and client advocates; shall include an accessible automated intake 
334.16 	and assessment process and real-time identification of level of service eligibility; and 
334.17 	shall authorize an appropriate and auditable mode of transportation authorization.  The 
334.18 	tool shall provide a single framework for reconciling trip information with claiming and 
334.19 	collecting complaints regarding inappropriate level of need determinations, inappropriate 
334.20 	transportation modes utilized, and interference with accessing nonemergency medical 
334.21 	transportation.  The Web-based single administrative structure shall operate on a trial 
334.22 	basis for one year from implementation and, if approved by the commissioner, shall be 
334.23 	permanent thereafter. The commissioner shall seek input from the Nonemergency Medical 
334.24 	Transportation Advisory Committee to ensure the software is effective and user-friendly 
334.25 	and make recommendations regarding funding of the single administrative system.

334.26 	Sec. 33. Minnesota Statutes 2012, section 256B.0625, subdivision 18g, is amended to 
334.27 	read:
334.28 		Subd. 18g.Use of standardized measures. The commissioner, in consultation 
334.29 	with the Nonemergency Medical Transportation Advisory Committee, shall establish 
334.30 	performance measures to assess the cost-effectiveness and quality of nonemergency 
334.31 	medical transportation. At a minimum, performance measures should include the number 
334.32 	of unique participants served by type of transportation provider, number of trips provided 
334.33 	by type of transportation provider, and cost per trip by type of transportation provider. The 
334.34 	commissioner must also consider the measures identified in the January 2012 Department 
334.35 	of Human Services report to the legislature on nonemergency medical transportation.
335.1 	 Beginning in calendar year 2013 2015, the commissioner shall collect, audit, and analyze 
335.2 	performance data on nonemergency medical transportation annually and report this 
335.3 	information on the agency's Web site. The commissioner shall periodically supplement 
335.4 	this information with the results of consumer surveys of the quality of services, and shall 
335.5 	make these survey findings available to the public on the agency Web site.

335.6 	Sec. 34. Minnesota Statutes 2012, section 256B.0625, is amended by adding a 
335.7 	subdivision to read:
335.8 		Subd. 18h.Managed care. The following subdivisions do not apply to managed 
335.9 	care plans and county-based purchasing plans:
335.10 	(1) subdivision 17, paragraphs (d) to (k);
335.11 	(2) subdivision 18e; and
335.12 	(3) subdivision 18g.

335.13 	Sec. 35. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to 
335.14 	read:
335.15 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic 
335.16 	services, federally qualified health center services, nonprofit community health clinic 
335.17 	services, and public health clinic services. Rural health clinic services and federally 
335.18 	qualified health center services mean services defined in United States Code, title 42, 
335.19 	section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 
335.20 	health center services shall be made according to applicable federal law and regulation.
335.21 	(b) A federally qualified health center that is beginning initial operation shall submit 
335.22 	an estimate of budgeted costs and visits for the initial reporting period in the form and 
335.23 	detail required by the commissioner. A federally qualified health center that is already in 
335.24 	operation shall submit an initial report using actual costs and visits for the initial reporting 
335.25 	period. Within 90 days of the end of its reporting period, a federally qualified health 
335.26 	center shall submit, in the form and detail required by the commissioner, a report of 
335.27 	its operations, including allowable costs actually incurred for the period and the actual 
335.28 	number of visits for services furnished during the period, and other information required 
335.29 	by the commissioner. Federally qualified health centers that file Medicare cost reports 
335.30 	shall provide the commissioner with a copy of the most recent Medicare cost report filed 
335.31 	with the Medicare program intermediary for the reporting year which support the costs 
335.32 	claimed on their cost report to the state.
335.33 	(c) In order to continue cost-based payment under the medical assistance program 
335.34 	according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 
336.1 	must apply for designation as an essential community provider within six months of final 
336.2 	adoption of rules by the Department of Health according to section 62Q.19, subdivision 
336.3 	7. For those federally qualified health centers and rural health clinics that have applied 
336.4 	for essential community provider status within the six-month time prescribed, medical 
336.5 	assistance payments will continue to be made according to paragraphs (a) and (b) for the 
336.6 	first three years after application. For federally qualified health centers and rural health 
336.7 	clinics that either do not apply within the time specified above or who have had essential 
336.8 	community provider status for three years, medical assistance payments for health services 
336.9 	provided by these entities shall be according to the same rates and conditions applicable 
336.10 	to the same service provided by health care providers that are not federally qualified 
336.11 	health centers or rural health clinics.
336.12 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 
336.13 	qualified health center or a rural health clinic to make application for an essential 
336.14 	community provider designation in order to have cost-based payments made according 
336.15 	to paragraphs (a) and (b) no longer apply.
336.16 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 
336.17 	shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
336.18 	(f) Effective January 1, 2001, each federally qualified health center and rural health 
336.19 	clinic may elect to be paid either under the prospective payment system established 
336.20 	in United States Code, title 42, section 1396a(aa), or under an alternative payment 
336.21 	methodology consistent with the requirements of United States Code, title 42, section 
336.22 	1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 
336.23 	alternative payment methodology shall be 100 percent of cost as determined according to 
336.24 	Medicare cost principles.
336.25 	(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
336.26 	(1) has nonprofit status as specified in chapter 317A;
336.27 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
336.28 	(3) is established to provide health services to low-income population groups, 
336.29 	uninsured, high-risk and special needs populations, underserved and other special needs 
336.30 	populations;
336.31 	(4) employs professional staff at least one-half of which are familiar with the 
336.32 	cultural background of their clients;
336.33 	(5) charges for services on a sliding fee scale designed to provide assistance to 
336.34 	low-income clients based on current poverty income guidelines and family size; and
336.35 	(6) does not restrict access or services because of a client's financial limitations or 
336.36 	public assistance status and provides no-cost care as needed.
337.1 	(h) Effective for services provided on or after January 1, 2015, all claims for 
337.2 	payment of clinic services provided by federally qualified health centers and rural health 
337.3 	clinics shall be paid by the commissioner. The commissioner shall determine the most 
337.4 	feasible method for paying claims from the following options:
337.5 	(1) federally qualified health centers and rural health clinics submit claims directly 
337.6 	to the commissioner for payment, and the commissioner provides claims information for 
337.7 	recipients enrolled in a managed care or county-based purchasing plan to the plan, on 
337.8 	a regular basis; or
337.9 	(2) federally qualified health centers and rural health clinics submit claims for 
337.10 	recipients enrolled in a managed care or county-based purchasing plan to the plan, and 
337.11 	those claims are submitted by the plan to the commissioner for payment to the clinic.
337.12 	(i) For clinic services provided prior to January 1, 2015, the commissioner shall 
337.13 	calculate and pay monthly the proposed managed care supplemental payments to clinics, 
337.14 	and clinics shall conduct a timely review of the payment calculation data in order to 
337.15 	finalize all supplemental payments in accordance with federal law. Any issues arising 
337.16 	from a clinic's review must be reported to the commissioner by January 1, 2017. Upon 
337.17 	final agreement between the commissioner and a clinic on issues identified under this 
337.18 	subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no 
337.19 	supplemental payments for managed care plan or county-based purchasing plan claims 
337.20 	for services provided prior to January 1, 2015, shall be made after June 30, 2017. If the 
337.21 	commissioner and clinics are unable to resolve issues under this subdivision, the parties 
337.22 	shall submit the dispute to the arbitration process under section 14.57.

337.23 	Sec. 36. Minnesota Statutes 2012, section 256B.0751, is amended by adding a 
337.24 	subdivision to read:
337.25 		Subd. 10.Health care homes advisory committee. (a) The commissioners of 
337.26 	health and human services shall establish a health care homes advisory committee to 
337.27 	advise the commissioners on the ongoing statewide implementation of the health care 
337.28 	homes program authorized in this section.
337.29 	(b) The commissioners shall establish an advisory committee that includes 
337.30 	representatives of the health care professions such as primary care providers; mental 
337.31 	health providers; nursing and care coordinators; certified health care home clinics with 
337.32 	statewide representation; health plan companies; state agencies; employers; academic 
337.33 	researchers; consumers; and organizations that work to improve health care quality in 
337.34 	Minnesota. At least 25 percent of the committee members must be consumers or patients 
338.1 	in health care homes. The commissioners, in making appointments to the committee, shall 
338.2 	ensure geographic representation of all regions of the state.
338.3 	(c) The advisory committee shall advise the commissioners on ongoing 
338.4 	implementation of the health care homes program, including, but not limited to, the 
338.5 	following activities:
338.6 	(1) implementation of certified health care homes across the state on performance 
338.7 	management and implementation of benchmarking;
338.8 	(2) implementation of modifications to the health care homes program based on 
338.9 	results of the legislatively mandated health care home evaluation;
338.10 	(3) statewide solutions for engagement of employers and commercial payers;
338.11 	(4) potential modifications of the health care home rules or statutes;
338.12 	(5) consumer engagement, including patient and family-centered care, patient 
338.13 	activation in health care, and shared decision making;
338.14 	(6) oversight for health care home subject matter task forces or workgroups; and
338.15 	(7) other related issues as requested by the commissioners.
338.16 	(d) The advisory committee shall have the ability to establish subcommittees on 
338.17 	specific topics. The advisory committee is governed by section 15.059. Notwithstanding 
338.18 	section 15.059, the advisory committee does not expire.

338.19 	Sec. 37. Minnesota Statutes 2012, section 256B.199, is amended to read:
338.20 	256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
338.21 	(a) Effective July 1, 2007, The commissioner shall apply for federal matching 
338.22 	funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the 
338.23 	commissioner shall apply for matching funds for expenditures in paragraph (e).
338.24 	(b) The commissioner shall apply for federal matching funds for certified public 
338.25 	expenditures as follows:
338.26 	(1) Hennepin County, Hennepin County Medical Center, Ramsey County, and
338.27 	 Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
338.28 	 shall report quarterly to the commissioner beginning June 1, 2007, payments made during 
338.29 	the second previous quarter that may qualify for reimbursement under federal law;
338.30 	 (2) based on these reports, the commissioner shall apply for federal matching 
338.31 	funds. These funds are appropriated to the commissioner for the payments under section 
338.32 	256.969, subdivision 27; and
338.33 	 (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform 
338.34 	the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share 
338.35 	hospital payment money expected to be available in the current federal fiscal year.
339.1 	(c) The commissioner shall apply for federal matching funds for general assistance 
339.2 	medical care expenditures as follows:
339.3 	(1) for hospital services occurring on or after July 1, 2007, general assistance medical 
339.4 	care expenditures for fee-for-service inpatient and outpatient hospital payments made by 
339.5 	the department shall be used to apply for federal matching funds, except as limited below:
339.6 	(i) only those general assistance medical care expenditures made to an individual 
339.7 	hospital that would not cause the hospital to exceed its individual hospital limits under 
339.8 	section 1923 of the Social Security Act may be considered; and
339.9 	(ii) general assistance medical care expenditures may be considered only to the extent 
339.10 	of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
339.11 	(2) all hospitals must provide any necessary expenditure, cost, and revenue 
339.12 	information required by the commissioner as necessary for purposes of obtaining federal 
339.13 	Medicaid matching funds for general assistance medical care expenditures.
339.14 	(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner 
339.15 	shall apply for additional federal matching funds available as disproportionate share 
339.16 	hospital payments under the American Recovery and Reinvestment Act of 2009. These 
339.17 	funds shall be made available as the state share of payments under section 256.969, 
339.18 	subdivision 28. The entities required to report certified public expenditures under 
339.19 	paragraph (b), clause (1), shall report additional certified public expenditures as necessary 
339.20 	under this paragraph.
339.21 	(e) (d) For services provided on or after September 1, 2011, the commissioner shall 
339.22 	apply for additional federal matching funds available as disproportionate share hospital 
339.23 	payments under the MinnesotaCare program according to the requirements and conditions 
339.24 	of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate 
339.25 	share hospital for purposes of this paragraph, if the hospital does not qualify for a payment 
339.26 	under section 256.969, subdivision 9, paragraph (b).

339.27 	Sec. 38. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:
339.28 		Subdivision 1.Personal needs allowance. (a) Notwithstanding any law to the 
339.29 	contrary, welfare allowances for clothing and personal needs for individuals receiving 
339.30 	medical assistance while residing in any skilled nursing home, intermediate care facility, 
339.31 	or medical institution including recipients of Supplemental Security Income, in this state 
339.32 	shall not be less than $45 per month from all sources. When benefit amounts for Social 
339.33 	Security or Supplemental Security Income recipients are increased pursuant to United 
339.34 	States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the 
339.35 	month in which the increase takes effect, increase by the same percentage to the nearest 
340.1 	whole dollar the clothing and personal needs allowance for individuals receiving medical 
340.2 	assistance while residing in any skilled nursing home, medical institution, or intermediate 
340.3 	care facility. The commissioner shall provide timely notice to local agencies, providers, 
340.4 	and recipients of increases under this provision.
340.5 	(b) The personal needs allowance may be paid as part of the Minnesota supplemental 
340.6 	aid program, and payments to recipients of Minnesota supplemental aid may be made once 
340.7 	each three months covering liabilities that accrued during the preceding three months.
340.8 	(c) The personal needs allowance shall be increased to include income garnished 
340.9 	for child support under a court order, up to a maximum of $250 per month but only to 
340.10 	the extent that the amount garnished is not deducted as a monthly allowance for children 
340.11 	under section 256B.0575, paragraph (a), clause (5).
340.12 	(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause 
340.13 	(1), the personal needs allowance shall be increased to include income garnished for 
340.14 	spousal maintenance under a judgment and decree for dissolution of marriage, and any 
340.15 	administrative fees garnished for collection efforts.

340.16 	Sec. 39. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34, 
340.17 	is amended to read:
340.18 		Subd. 34.Supplemental recovery program. The commissioner shall conduct a 
340.19 	supplemental recovery program for third-party liabilities identified through coordination 
340.20 	of benefits not recovered by managed care plans and county-based purchasing plans for 
340.21 	state public health programs. Any third-party liability identified through coordination of 
340.22 	benefits and recovered by the commissioner more than six eight months after the date 
340.23 	a managed care plan or county-based purchasing plan receives adjudicates a health 
340.24 	care claim shall be retained by the commissioner and deposited in the general fund. 
340.25 	The commissioner shall establish a mechanism, including a reconciliation process, for 
340.26 	managed care plans and county-based purchasing plans to coordinate third-party liability 
340.27 	collections efforts resulting from coordination of benefits under this subdivision with the 
340.28 	commissioner to ensure there is no duplication of efforts. The coordination mechanism 
340.29 	must be consistent with the reporting requirements in subdivision 9c. The commissioner 
340.30 	shall share accurate and timely third-party liability data with managed care plans and 
340.31 	county-based purchasing plans.

340.32 	Sec. 40. Minnesota Statutes 2013 Supplement, section 256B.766, is amended to read:
340.33 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
341.1 	(a) Effective for services provided on or after July 1, 2009, total payments for basic 
341.2 	care services, shall be reduced by three percent, except that for the period July 1, 2009, 
341.3 	through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical 
341.4 	assistance and general assistance medical care programs, prior to third-party liability and 
341.5 	spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical 
341.6 	therapy services, occupational therapy services, and speech-language pathology and 
341.7 	related services as basic care services. The reduction in this paragraph shall apply to 
341.8 	physical therapy services, occupational therapy services, and speech-language pathology 
341.9 	and related services provided on or after July 1, 2010.
341.10 	(b) Payments made to managed care plans and county-based purchasing plans shall 
341.11 	be reduced for services provided on or after October 1, 2009, to reflect the reduction 
341.12 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
341.13 	1, 2010, to reflect the reduction effective July 1, 2010.
341.14 	(c) Effective for services provided on or after September 1, 2011, through June 30, 
341.15 	2013, total payments for outpatient hospital facility fees shall be reduced by five percent 
341.16 	from the rates in effect on August 31, 2011.
341.17 	(d) Effective for services provided on or after September 1, 2011, through June 
341.18 	30, 2013, total payments for ambulatory surgery centers facility fees, medical supplies 
341.19 	and durable medical equipment not subject to a volume purchase contract, prosthetics 
341.20 	and orthotics, renal dialysis services, laboratory services, public health nursing services, 
341.21 	physical therapy services, occupational therapy services, speech therapy services, 
341.22 	eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume 
341.23 	purchase contract, and anesthesia services shall be reduced by three percent from the 
341.24 	rates in effect on August 31, 2011.
341.25 	(e) Effective for services provided on or after September 1, 2014, payments for 
341.26 	ambulatory surgery centers facility fees, medical supplies and durable medical equipment 
341.27 	not subject to a volume purchase contract, prosthetics and orthotics, hospice services, renal 
341.28 	dialysis services, laboratory services, public health nursing services, eyeglasses not subject 
341.29 	to a volume purchase contract, and hearing aids not subject to a volume purchase contract 
341.30 	shall be increased by three percent and payments for outpatient hospital facility fees shall 
341.31 	be increased by three percent. Payments made to managed care plans and county-based 
341.32 	purchasing plans shall not be adjusted to reflect payments under this paragraph.
341.33 	(f) Payments for medical supplies and durable medical equipment not subject to a 
341.34 	volume purchase contract, prosthetics and orthotics, provided on or after July 1, 2014, 
341.35 	through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies 
341.36 	and durable medical equipment not subject to a volume purchase contract, prosthetics and 
342.1 	orthotics, provided on or after July 1, 2015, shall be increased by three percent from the 
342.2 	rates in effect on June 30, 2014.
342.3 	(f) (g) This section does not apply to physician and professional services, inpatient 
342.4 	hospital services, family planning services, mental health services, dental services, 
342.5 	prescription drugs, medical transportation, federally qualified health centers, rural health 
342.6 	centers, Indian health services, and Medicare cost-sharing.

342.7 	Sec. 41. Minnesota Statutes 2013 Supplement, section 256B.767, is amended to read:
342.8 	256B.767 MEDICARE PAYMENT LIMIT.
342.9 	(a) Effective for services rendered on or after July 1, 2010, fee-for-service payment 
342.10 	rates for physician and professional services under section 256B.76, subdivision 1, and 
342.11 	basic care services subject to the rate reduction specified in section 256B.766, shall not 
342.12 	exceed the Medicare payment rate for the applicable service, as adjusted for any changes 
342.13 	in Medicare payment rates after July 1, 2010. The commissioner shall implement this 
342.14 	section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates 
342.15 	under this section by first reducing or eliminating provider rate add-ons.
342.16 	(b) This section does not apply to services provided by advanced practice certified 
342.17 	nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter 
342.18 	147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates 
342.19 	for advanced practice certified nurse midwives and licensed traditional midwives shall 
342.20 	equal and shall not exceed the medical assistance payment rate to physicians for the 
342.21 	applicable service.
342.22 	(c) This section does not apply to mental health services or physician services billed 
342.23 	by a psychiatrist or an advanced practice registered nurse with a specialty in mental health.
342.24 	(d) Effective for durable medical equipment, prosthetics, orthotics, or supplies 
342.25 	provided on or after July 1, 2013, through June 30, 2014 2015, the payment rate for items 
342.26 	that are subject to the rates established under Medicare's National Competitive Bidding 
342.27 	Program shall be equal to the rate that applies to the same item when not subject to the 
342.28 	rate established under Medicare's National Competitive Bidding Program. This paragraph 
342.29 	does not apply to mail-order diabetic supplies and does not apply to items provided to 
342.30 	dually eligible recipients when Medicare is the primary payer of the item.

342.31 	Sec. 42. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to 
342.32 	read:

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

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

343.2 	Sec. 43. Laws 2014, chapter 235, section 43, is amended to read:
343.3 	Sec. 43. EFFECTIVE DATE.
 343.4 	Sections 1 to 40, and 42, are effective January 1, 2015.

343.5 	Sec. 44. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.
 343.6 	The commissioner of human services, in consultation with interested stakeholders, 
343.7 	shall review medical assistance spenddown requirements and processes, including those 
343.8 	used in other states, for individuals with disabilities and seniors age 65 years of age or 
343.9 	older. Based on this review, the commissioner shall recommend alternative medical 
343.10 	assistance spenddown payment requirements and processes that:
343.11 	(1) are practical for current and potential medical assistance recipients, providers, 
343.12 	and the Department of Human Services;
343.13 	(2) improve the medical assistance payment process for providers; and
343.14 	(3) allow current and potential medical assistance recipients to obtain consistent 
343.15 	and affordable medical coverage.
343.16 	The commissioner shall report these recommendations, along with the projected cost, 
343.17 	to the chairs and ranking minority members of the legislative committees and divisions 
343.18 	with jurisdiction over health and human services policy and finance by February 15, 2015.

343.19 	Sec. 45. WAIVER APPLICATIONS FOR NONEMERGENCY MEDICAL 
343.20 	TRANSPORTATION SERVICE PROVIDERS.
 343.21 		Subdivision 1.Definitions. For purposes of this section, the following definitions 
343.22 	apply:
343.23 	(1) "new provider" is a nonemergency medical transportation service provider that 
343.24 	has not been enrolled prior to the effective date of this act and is delivering a mode that 
343.25 	was not required to comply with special transportation service operating standards before 
343.26 	the effective date of this act; and
343.27 	(2) "commissioner" is the commissioner of human services.
343.28 		Subd. 2.Application for and terms of variance. A new provider may apply to the 
343.29 	commissioner, on a form supplied by the commissioner for this purpose, for a variance 
343.30 	from special transportation service operating standards. The commissioner may grant or 
343.31 	deny the variance application. Variances expire on the earlier of, February 1, 2016, or the 
343.32 	date that the commissioner of transportation begins certifying new providers under the 
343.33 	terms of this act and successor legislation.
344.1 		Subd. 3.Information concerning variances. The commissioner shall periodically 
344.2 	transmit to the Department of Transportation the number of variance applications received 
344.3 	and the number granted.
344.4 		Subd. 4.Report by commissioner of transportation. On or before February 
344.5 	1, 2015, the commissioner of transportation shall report to the chairs and ranking 
344.6 	minority members of the senate and house of representatives committees and divisions 
344.7 	with jurisdiction over transportation and human services concerning implementing the 
344.8 	nonemergency medical transportation services provisions. The report must contain 
344.9 	recommendations of the commissioner of transportation concerning statutes, session 
344.10 	laws, and rules that must be amended, repealed, enacted, or adopted to implement the 
344.11 	nonemergency medical transportation services provisions. The recommendations must 
344.12 	include, without limitation, the amount of the fee that would be required to cover the costs 
344.13 	of Department of Transportation supervision of inspection and certification, as well as 
344.14 	any needed statutory rulemaking or other authority to be granted to the commissioner of 
344.15 	transportation.

344.16 	Sec. 46. FEDERAL AUTHORITY; EMERGENCY MEDICAL ASSISTANCE 
344.17 	PROGRAM.
 344.18 	The commissioner, in consultation with providers who participate in the emergency 
344.19 	medical assistance program and representatives of patients served by the program, shall 
344.20 	assess the program's covered services, care plan requirements, conditions of eligibility 
344.21 	for covered services, and other program requirements to identify potential changes to 
344.22 	program requirements that are likely to reduce the use of more costly services, including 
344.23 	emergency and inpatient hospital services. The commissioner shall report any changes 
344.24 	to program requirements that produce credible savings to the cost of federally funded 
344.25 	services provided to eligible individuals, including the estimated fiscal effect of these 
344.26 	changes to the chairs and ranking minority members of the legislative committees and 
344.27 	divisions with jurisdiction over health and human services policy and finance by January 
344.28 	15, 2015. If additional resources are required to establish cost savings, the report shall 
344.29 	identify the necessary resources and anticipated costs associated with the analysis.

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

344.31 	Sec. 47. ORAL HEALTH DELIVERY AND REIMBURSEMENT SYSTEM.
 344.32 	(a) The commissioner of human services, in consultation with the commissioner of 
344.33 	health, shall convene a work group to develop a new delivery and reimbursement system 
344.34 	for oral health and dental services that are provided to enrollees of the state public health 
345.1 	care programs. The new system must ensure cost-effective delivery and an increase in 
345.2 	access to services.
345.3 	(b) The commissioner shall consult with dental providers enrolled in the state public 
345.4 	health programs, including providers who serve substantial numbers of low-income 
345.5 	and uninsured patients and are currently receiving critical access dental payments; 
345.6 	private practicing dentists; nonprofit community clinics; managed care and county-based 
345.7 	purchasing plans; and health plan companies that provide either directly or through 
345.8 	contracts with providers dental services to enrollees of state public health care programs.
345.9 	(c) The commissioner shall submit a report containing the proposed delivery and 
345.10 	reimbursement system, including draft legislation to the chairs and ranking minority 
345.11 	members of the legislative committees and divisions with jurisdiction over health and 
345.12 	human services policy and finance by January 15, 2015.

345.13 	Sec. 48.  REPEALER.
 345.14 	(a) Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 
345.15 	20, 21, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed effective 
345.16 	November 1, 2014.
345.17 	(b) Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18f, is 
345.18 	repealed.

345.19 	ARTICLE 25
345.20 	CHILDREN, FAMILIES, AND NORTHSTAR CARE FOR CHILDREN

345.21 	Section 1. Minnesota Statutes 2012, section 119B.09, subdivision 9a, is amended to 
345.22 	read:
345.23 		Subd. 9a.Child care centers; assistance. (a) For the purposes of this subdivision, 
345.24 	"qualifying child" means a child who satisfies both of the following:
345.25 	(1) is not a child or dependent of an employee of the child care provider; and
345.26 	(2) does not reside with an employee of the child care provider.
345.27 	(b) Funds distributed under this chapter must not be paid for child care services that 
345.28 	are provided for a child by a child care provider who employs either the parent of the child 
345.29 	or a person who resides with the child, or dependent of an employee under paragraph (a)
345.30 	 unless at all times at least 50 percent of the children for whom the child care provider is 
345.31 	providing care are qualifying children under paragraph (a).
345.32 	(c) If a child care provider satisfies the requirements for payment under paragraph 
345.33 	(b), but the percentage of qualifying children under paragraph (a) for whom the provider 
345.34 	is providing care falls below 50 percent, the provider shall have four weeks to raise the 
346.1 	percentage of qualifying children for whom the provider is providing care to at least 50 
346.2 	percent before payments to the provider are discontinued for child care services provided 
346.3 	for a child who is not a qualifying child.
346.4 	(d) This subdivision shall be implemented as follows:
346.5 	(1) no later than August 1, 2014, the commissioner shall issue a notice to providers 
346.6 	who have been identified as ineligible for funds distributed under this chapter as described 
346.7 	in paragraph (b); and
346.8 	(2) no later than January 5, 2015, payments to providers who do not comply with 
346.9 	paragraph (c) will be discontinued for child care services provided for children who are 
346.10 	not qualifying children.
346.11 	(e) If a child's authorization for child care assistance is terminated under this 
346.12 	subdivision, the county shall send a notice of adverse action to the provider and to the 
346.13 	child's parent or guardian, including information on the right to appeal, under Minnesota 
346.14 	Rules, part 3400.0185.
346.15 	(f) Funds paid to providers during the period of time between the issuance of a 
346.16 	notice under paragraph (d), clause (1), and discontinuation of payments under paragraph 
346.17 	(d), clause (2), must not be treated as overpayments under section 119B.11, subdivision 
346.18 	2a, due to noncompliance with this subdivision.
346.19 	(g) Nothing in this subdivision precludes the commissioner from conducting 
346.20 	fraud investigations relating to child care assistance, imposing sanctions, and obtaining 
346.21 	monetary recovery as otherwise provided by law.

346.22 	Sec. 2. Minnesota Statutes 2012, section 245A.03, subdivision 2c, is amended to read:
346.23 		Subd. 2c.School-age child care licensing moratorium. A school-age program 
346.24 	whose sole purpose is to provide only services to school-age children during out-of-school 
346.25 	times is exempt from the human services licensing requirements in this chapter until 
346.26 	July 1, 2014 2015. Nothing in this section prohibits an already licensed school-age-only 
346.27 	program from continuing its license or a school-age program from seeking licensure.

346.28 	Sec. 3. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
346.29 		Subd. 5.Fingerprints. (a) Except as provided in paragraph (c), for any background 
346.30 	study completed under this chapter, when the commissioner has reasonable cause to 
346.31 	believe that further pertinent information may exist on the subject of the background 
346.32 	study, the subject shall provide the commissioner with a set of classifiable fingerprints 
346.33 	obtained from an authorized agency.
347.1 	(b) For purposes of requiring fingerprints, the commissioner has reasonable cause 
347.2 	when, but not limited to, the:
347.3 	(1) information from the Bureau of Criminal Apprehension indicates that the subject 
347.4 	is a multistate offender;
347.5 	(2) information from the Bureau of Criminal Apprehension indicates that multistate 
347.6 	offender status is undetermined; or
347.7 	(3) commissioner has received a report from the subject or a third party indicating 
347.8 	that the subject has a criminal history in a jurisdiction other than Minnesota.
347.9 	(c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for 
347.10 	background studies conducted by the commissioner for child foster care or, adoptions, or a 
347.11 	transfer of permanent legal and physical custody of a child, the subject of the background 
347.12 	study, who is 18 years of age or older, shall provide the commissioner with a set of 
347.13 	classifiable fingerprints obtained from an authorized agency.

347.14 	Sec. 4. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is 
347.15 	amended to read:
347.16 		Subdivision 1.Background studies conducted by Department of Human 
347.17 	Services. (a) For a background study conducted by the Department of Human Services, 
347.18 	the commissioner shall review:
347.19 	(1) information related to names of substantiated perpetrators of maltreatment of 
347.20 	vulnerable adults that has been received by the commissioner as required under section 
347.21 	626.557, subdivision 9c, paragraph (j);
347.22 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
347.23 	programs, and from findings of maltreatment of minors as indicated through the social 
347.24 	service information system;
347.25 	(3) information from juvenile courts as required in subdivision 4 for individuals 
347.26 	listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
347.27 	(4) information from the Bureau of Criminal Apprehension, including information 
347.28 	regarding a background study subject's registration in Minnesota as a predatory offender 
347.29 	under section 243.166;
347.30 	(5) except as provided in clause (6), information from the national crime information 
347.31 	system when the commissioner has reasonable cause as defined under section 245C.05, 
347.32 	subdivision 5; and
347.33 	(6) for a background study related to a child foster care application for licensure, a 
347.34 	transfer of permanent legal and physical custody of a child under sections 260C.503 to 
347.35 	260C.515, or adoptions, the commissioner shall also review:
348.1 	(i) information from the child abuse and neglect registry for any state in which the 
348.2 	background study subject has resided for the past five years; and
348.3 	(ii) information from national crime information databases, when the background 
348.4 	study subject is 18 years of age or older.
348.5 	(b) Notwithstanding expungement by a court, the commissioner may consider 
348.6 	information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 
348.7 	received notice of the petition for expungement and the court order for expungement is 
348.8 	directed specifically to the commissioner.
348.9 	(c) The commissioner shall also review criminal case information received according 
348.10 	to section 245C.04, subdivision 4a, from the Minnesota court information system that 
348.11 	relates to individuals who have already been studied under this chapter and who remain 
348.12 	affiliated with the agency that initiated the background study.

348.13 	Sec. 5. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
348.14 		Subdivision 1.Adoption and transfer of permanent legal and physical custody;
348.15 	 Background studies conducted by commissionerstudy requirements. (a) Before 
348.16 	placement of a child for purposes of adoption, the commissioner shall conduct a 
348.17 	background study on individuals listed in section sections259.41, subdivision 3, and 
348.18 	260C.611, for county agencies and private agencies licensed to place children for adoption.
348.19 	 When a prospective adoptive parent is seeking to adopt a child who is currently placed in 
348.20 	the prospective adoptive parent's home and is under the guardianship of the commissioner 
348.21 	according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive 
348.22 	parent holds a child foster care license, a new background study is not required when:
348.23 	(1) a background study was completed on persons required to be studied under section 
348.24 	245C.03 in connection with the application for child foster care licensure after July 1, 2007;
348.25 	(2) the background study included a review of the information in section 245C.08, 
348.26 	subdivisions 1, 3, and 4; and
348.27 	(3) as a result of the background study, the individual was either not disqualified 
348.28 	or, if disqualified, the disqualification was set aside under section 245C.22, or a variance 
348.29 	was issued under section 245C.30.
348.30 	(b) Before the kinship placement agreement is signed for the purpose of transferring 
348.31 	permanent legal and physical custody to a relative under sections 260C.503 to 260C.515, 
348.32 	the commissioner shall conduct a background study on each person age 13 or older living 
348.33 	in the home. When a prospective relative custodian has a child foster care license, a new 
348.34 	background study is not required when:
349.1 	(1) a background study was completed on persons required to be studied under section 
349.2 	245C.03 in connection with the application for child foster care licensure after July 1, 2007;
349.3 	(2) the background study included a review of the information in section 245C.08, 
349.4 	subdivisions 1, 3, and 4; and
349.5 	(3) as a result of the background study, the individual was either not disqualified or, 
349.6 	if disqualified, the disqualification was set aside under section 245C.22, or a variance was 
349.7 	issued under section 245C.30. The commissioner and the county agency shall expedite any 
349.8 	request for a set-aside or variance for a background study required under chapter 256N.

349.9 	Sec. 6. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
349.10 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review 
349.11 	the following information regarding the background study subject:
349.12 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
349.13 	(2) information from the child abuse and neglect registry for any state in which the 
349.14 	subject has resided for the past five years; and
349.15 	(3) information from national crime information databases, when required under 
349.16 	section 245C.08.
349.17 	(b) The commissioner shall provide any information collected under this subdivision 
349.18 	to the county or private agency that initiated the background study. The commissioner 
349.19 	shall also provide the agency:
349.20 	(1) notice whether the information collected shows that the subject of the background 
349.21 	study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
349.22 	(2) for background studies conducted under subdivision 1, paragraph (a), the date of 
349.23 	all adoption-related background studies completed on the subject by the commissioner 
349.24 	after June 30, 2007, and the name of the county or private agency that initiated the 
349.25 	adoption-related background study.

349.26 	Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is 
349.27 	amended to read:
349.28 		Subdivision 1.Children eligible for subsidized adoption assistance. Medical 
349.29 	assistance may be paid for a child eligible for or receiving adoption assistance payments 
349.30 	under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 
349.31 	676, and to any child who is not title IV-E eligible but who was determined eligible for 
349.32 	adoption assistance under chapter 256N or section 259A.10, subdivision 2, and has a 
349.33 	special need for medical or rehabilitative care.

350.1 	Sec. 8. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:
350.2 		Subd. 13.Work activity. (a) "Work activity" means any activity in a participant's 
350.3 	approved employment plan that leads to employment. For purposes of the MFIP program, 
350.4 	this includes activities that meet the definition of work activity under the participation 
350.5 	requirements of TANF. Work activity includes:
350.6 	(1) unsubsidized employment, including work study and paid apprenticeships or 
350.7 	internships;
350.8 	(2) subsidized private sector or public sector employment, including grant diversion 
350.9 	as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid 
350.10 	work experience, and supported work when a wage subsidy is provided;
350.11 	(3) unpaid work experience, including community service, volunteer work, 
350.12 	the community work experience program as specified in section 256J.67, unpaid 
350.13 	apprenticeships or internships, and supported work when a wage subsidy is not provided. 
350.14 	Unpaid work experience is only an option if the participant has been unable to obtain or 
350.15 	maintain paid employment in the competitive labor market, and no paid work experience 
350.16 	programs are available to the participant. Prior to placing a participant in unpaid work, 
350.17 	the county must inform the participant that the participant will be notified if a paid work 
350.18 	experience or supported work position becomes available. Unless a participant consents in 
350.19 	writing to participate in unpaid work experience, the participant's employment plan may 
350.20 	only include unpaid work experience if including the unpaid work experience in the plan 
350.21 	will meet the following criteria:
350.22 	(i) the unpaid work experience will provide the participant specific skills or 
350.23 	experience that cannot be obtained through other work activity options where the 
350.24 	participant resides or is willing to reside; and
350.25 	(ii) the skills or experience gained through the unpaid work experience will result 
350.26 	in higher wages for the participant than the participant could earn without the unpaid 
350.27 	work experience;
350.28 	(4) job search including job readiness assistance, job clubs, job placement, 
350.29 	job-related counseling, and job retention services;
350.30 	(5) job readiness education, including English as a second language (ESL) or 
350.31 	functional work literacy classes as limited by the provisions of section 256J.531, 
350.32 	subdivision 2, general educational development (GED) or adult high school diploma 
350.33 	course work, high school completion, and adult basic education as limited by the 
350.34 	provisions of section 256J.531, subdivision 1;
351.1 	(6) job skills training directly related to employment, including postsecondary 
351.2 	education and training that can reasonably be expected to lead to employment, as limited 
351.3 	by the provisions of section 256J.53;
351.4 	(7) providing child care services to a participant who is working in a community 
351.5 	service program;
351.6 	(8) activities included in the employment plan that is developed under section 
351.7 	256J.521, subdivision 3; and
351.8 	(9) preemployment activities including chemical and mental health assessments, 
351.9 	treatment, and services; learning disabilities services; child protective services; family 
351.10 	stabilization services; or other programs designed to enhance employability.
351.11 	(b) "Work activity" does not include activities done for political purposes as defined 
351.12 	in section 211B.01, subdivision 6.

351.13 	Sec. 9. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:
351.14 		Subdivision 1.Length of program. (a) In order for a postsecondary education 
351.15 	or training program to be an approved work activity as defined in section 256J.49, 
351.16 	subdivision 13, clause (6), it must be a program lasting 24 monthsfour years or less, and 
351.17 	the participant must meet the requirements of subdivisions 2, 3, and 5.
351.18 	(b) Participants with a high school diploma, general educational development 
351.19 	(GED) credential, or an adult high school diploma must be informed of the opportunity 
351.20 	to participate in postsecondary education or training while in the Minnesota family 
351.21 	investment program.

351.22 	Sec. 10. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:
351.23 		Subd. 2.Approval of Postsecondary education or training. (a) In order for a 
351.24 	postsecondary education or training program to be an approved activity in an employment 
351.25 	plan, the plan must include additional work activities if the education and training 
351.26 	activities do not meet the minimum hours required to meet the federal work participation 
351.27 	rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.
351.28 	(b) Participants seeking approval of a postsecondary education or training plan 
351.29 	must provide documentation that:
351.30 	(1) the employment goal can only be met with the additional education or training;
351.31 	 Participants who are interested in participating in postsecondary education or training as 
351.32 	part of their employment plan must discuss their education plans with their job counselor. 
351.33 	Job counselors will work with participants to evaluate the options by:
352.1 	(2)(1) advising whether there are suitable employment opportunities that require 
352.2 	the specific education or training in the area in which the participant resides or is willing 
352.3 	to reside;
352.4 	(3) the education or training will result in significantly higher wages for the 
352.5 	participant than the participant could earn without the education or training;
352.6 	(4)(2) assisting the participant in exploring whether the participant can meet the 
352.7 	requirements for admission into the program; and
352.8 	(5) there is a reasonable expectation that the participant will complete the training 
352.9 	program based on such factors as(3) discussing the participant's strengths and challenges 
352.10 	based on the participant's MFIP assessment, previous education, training, and work 
352.11 	history; current motivation; and changes in previous circumstances.
352.12 	(b) The requirements of this subdivision do not apply to participants who are in:
352.13 	(1) a recognized career pathway program that leads to stackable credentials;
352.14 	(2) a training program lasting 12 weeks or fewer; or
352.15 	(3) the final year of a multiyear postsecondary education or training program.

352.16 	Sec. 11. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:
352.17 		Subd. 5.Requirements after postsecondary education or training. Upon 
352.18 	completion of an approved education or training program, a participant who does not meet 
352.19 	the participation requirements in section 256J.55, subdivision 1, through unsubsidized 
352.20 	employment must participate in job search. If, after six12 weeks of job search, the 
352.21 	participant does not find a full-time job consistent with the employment goal, the 
352.22 	participant must accept any offer of full-time suitable employment, or meet with the job 
352.23 	counselor to revise the employment plan to include additional work activities necessary to 
352.24 	meet hourly requirements.

352.25 	Sec. 12. Minnesota Statutes 2012, section 256J.531, is amended to read:
352.26 	256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
352.27 		Subdivision 1.Approval of adult basic education. With the exception of classes 
352.28 	related to obtaining a general educational development credential (GED), a participant 
352.29 	must have reading or mathematics proficiency below a ninth grade level in order for 
352.30 	adult basic education classes to be anA participant who lacks a high school diploma, 
352.31 	general educational development (GED) credential, or an adult high school diploma 
352.32 	must be allowed to pursue these credentials as an approved work activity, provided 
352.33 	that the participant is making satisfactory progress. Participants eligible to pursue 
352.34 	a general educational development (GED) credential or adult high school diploma 
353.1 	under this subdivision must be informed of the opportunity to participate while in the 
353.2 	Minnesota family investment program. The employment plan must also specify that 
353.3 	the participant fulfill no more than one-half of the participation requirements in section 
353.4 	256J.55, subdivision 1, through attending adult basic education or general educational 
353.5 	development classes.
353.6 		Subd. 2.Approval of English as a second language. In order for English as a 
353.7 	second language (ESL) classes to be an approved work activity in an employment plan, a 
353.8 	participant must be below a spoken language proficiency level of SPL6 or its equivalent, 
353.9 	as measured by a nationally recognized test. In approving ESL as a work activity, the job 
353.10 	counselor must give preference to enrollment in a functional work literacy program, 
353.11 	if one is available, over a regular ESL program. A participant may not be approved 
353.12 	for more than a combined total of 24 months of ESL classes while participating in the 
353.13 	diversionary work program and the employment and training services component of 
353.14 	MFIP. The employment plan must also specify that the participant fulfill no more than 
353.15 	one-half of the participation requirements in section 256J.55, subdivision 1, through 
353.16 	attending ESL classes. For participants enrolled in functional work literacy classes, no 
353.17 	more than two-thirds of the participation requirements in section 256J.55, subdivision 1, 
353.18 	may be met through attending functional work literacy classes.

353.19 	Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding 
353.20 	a subdivision to read:
353.21 		Subd. 14a.Licensed child foster parent. "Licensed child foster parent" means a 
353.22 	person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to 
353.23 	2960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.

353.24 	Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is 
353.25 	amended to read:
353.26 		Subd. 2.Placement in foster care. To be eligible for foster care benefits under this 
353.27 	section, the child must be in placement away from the child's legal parent or, guardian, or 
353.28 	Indian custodian as defined in section 260.755, subdivision 10, and all of the following 
353.29 	criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):
353.30 	(1) the legally responsible agency must have placement authority and care 
353.31 	responsibility, including for a child 18 years old or older and under age 21, who maintains 
353.32 	eligibility for foster care consistent with section 260C.451;
353.33 	(2) (1) the legally responsible agency must have placement authority to place the 
353.34 	child with: (i) a voluntary placement agreement or a court order, consistent with sections 
354.1 	260B.198, 260C.001, and260D.01, or continued eligibility consistent with section 
354.2 	260C.451 for a child 18 years old or older and under age 21 who maintains eligibility for 
354.3 	foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe 
354.4 	that is consistent with United States Code, title 42, section 672(a)(2); and
354.5 	(3) (2) the child must be is placed in an emergency relative placement under section 
354.6 	245A.035, with  a licensed foster family setting, foster residence setting, or treatment 
354.7 	foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a 
354.8 	family foster home licensed or approved by a tribal agency or, for a child 18 years old or 
354.9 	older and under age 21, child foster parent; or
354.10 	(3) the child is placed in one of the following unlicensed child foster care settings:
354.11 	(i) an emergency relative placement under tribal licensing regulations or section 
354.12 	245A.035, with the legally responsible agency ensuring the relative completes the required 
354.13 	child foster care application process;
354.14 	(ii) a licensed adult foster home with an approved age variance under section 
354.15 	245A.16 for no more than six months;
354.16 	(iii) for a child 18 years old or older and under age 21 who is eligible for extended 
354.17 	foster care under section 260C.451,  an unlicensed supervised independent living setting 
354.18 	approved by the agency responsible for the youth's child's care.; or
354.19 	(iv) a preadoptive placement in a home specified in section 245A.03, subdivision 
354.20 	2, paragraph (a), clause (9), with an approved adoption home study and signed adoption 
354.21 	placement agreement.

354.22 	Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.21, is amended by adding 
354.23 	a subdivision to read:
354.24 		Subd. 7.Background study. (a) A county or private agency conducting a 
354.25 	background study for purposes of child foster care licensing or approval must conduct 
354.26 	the study in accordance with chapter 245C and must meet the requirements in United 
354.27 	States Code, title 42, section 671(a)(20).
354.28 	(b) A Minnesota tribe conducting a background study for purposes of child foster 
354.29 	care licensing or approval must conduct the study in accordance with the requirements in 
354.30 	United States Code, title 42, section 671(a)(20), when applicable.

354.31 	Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is 
354.32 	amended to read:
354.33 		Subdivision 1.General eligibility requirements. (a) To be eligible for guardianship 
354.34 	assistance under this section, there must be a judicial determination under section 
355.1 	260C.515, subdivision 4, that a transfer of permanent legal and physical custody to a 
355.2 	relative is in the child's best interest. For a child under jurisdiction of a tribal court, a 
355.3 	judicial determination under a similar provision in tribal code indicating that a relative 
355.4 	will assume the duty and authority to provide care, control, and protection of a child who 
355.5 	is residing in foster care, and to make decisions regarding the child's education, health 
355.6 	care, and general welfare until adulthood, and that this is in the child's best interest is 
355.7 	considered equivalent. Additionally, a child must:
355.8 	(1) have been removed from the child's home pursuant to a voluntary placement 
355.9 	agreement or court order;
355.10 	(2)(i) have resided in with the prospective relative custodian who has been a 
355.11 	licensed child foster care parent for at least six consecutive months in the home of the 
355.12 	prospective relative custodian; or
355.13 	(ii) have received from the commissioner an exemption from the requirement in item 
355.14 	(i) from the court that the prospective relative custodian has been a licensed child foster 
355.15 	parent for at least six consecutive months, based on a determination that:
355.16 	(A) an expedited move to permanency is in the child's best interest;
355.17 	(B) expedited permanency cannot be completed without provision of guardianship 
355.18 	assistance; and
355.19 	(C) the prospective relative custodian is uniquely qualified to meet the child's needs, 
355.20 	as defined in section 260C.212, subdivision 2, on a permanent basis;
355.21 	(D) the child and prospective relative custodian meet the eligibility requirements 
355.22 	of this section; and
355.23 	(E) efforts were made by the legally responsible agency to place the child with the 
355.24 	prospective relative custodian as a licensed child foster parent for six consecutive months 
355.25 	before permanency, or an explanation why these efforts were not in the child's best interests;
355.26 	(3) meet the agency determinations regarding permanency requirements in 
355.27 	subdivision 2;
355.28 	(4) meet the applicable citizenship and immigration requirements in subdivision 3;
355.29 	(5) have been consulted regarding the proposed transfer of permanent legal and 
355.30 	physical custody to a relative, if the child is at least 14 years of age or is expected to attain 
355.31 	14 years of age prior to the transfer of permanent legal and physical custody; and
355.32 	(6) have a written, binding agreement under section 256N.25 among the caregiver or 
355.33 	caregivers, the financially responsible agency, and the commissioner established prior to 
355.34 	transfer of permanent legal and physical custody.
356.1 	(b) In addition to the requirements in paragraph (a), the child's prospective relative 
356.2 	custodian or custodians must meet the applicable background study requirements in 
356.3 	subdivision 4.
356.4 	(c) To be eligible for title IV-E guardianship assistance, a child must also meet any 
356.5 	additional criteria in section 473(d) of the Social Security Act. The sibling of a child 
356.6 	who meets the criteria for title IV-E guardianship assistance in section 473(d) of the 
356.7 	Social Security Act is eligible for title IV-E guardianship assistance if the child and 
356.8 	sibling are placed with the same prospective relative custodian or custodians, and the 
356.9 	legally responsible agency, relatives, and commissioner agree on the appropriateness of 
356.10 	the arrangement for the sibling. A child who meets all eligibility criteria except those 
356.11 	specific to title IV-E guardianship assistance is entitled to guardianship assistance paid 
356.12 	through funds other than title IV-E.

356.13 	Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is 
356.14 	amended to read:
356.15 		Subd. 2.Agency determinations regarding permanency. (a) To be eligible for 
356.16 	guardianship assistance, the legally responsible agency must complete the following 
356.17 	determinations regarding permanency for the child prior to the transfer of permanent 
356.18 	legal and physical custody:
356.19 	(1) a determination that reunification and adoption are not appropriate permanency 
356.20 	options for the child; and
356.21 	(2) a determination that the child demonstrates a strong attachment to the prospective 
356.22 	relative custodian and the prospective relative custodian has a strong commitment to 
356.23 	caring permanently for the child.
356.24 	(b) The legally responsible agency shall document the determinations in paragraph 
356.25 	(a) and the eligibility requirements in this section that comply with United States Code, 
356.26 	title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a 
356.27 	kinship placement agreement, which must be in the format prescribed by the commissioner 
356.28 	and must be signed by the prospective relative custodian and the legally responsible 
356.29 	agency. In the case of a Minnesota tribe, the determinations and eligibility requirements 
356.30 	in this section may be provided in an alternative format approved by the commissioner.
356.31 	 Supporting information for completing each determination must be documented in the 
356.32 	legally responsible agency's case file and make them available for review as requested 
356.33 	by the financially responsible agency and the commissioner during the guardianship 
356.34 	assistance eligibility determination process.

357.1 	Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is 
357.2 	amended to read:
357.3 		Subd. 4.Background study. (a) A background study under section 245C.33 must be 
357.4 	completed on each prospective relative custodian and any other adult residing in the home 
357.5 	of the prospective relative custodian. The background study must meet the requirements of 
357.6 	United States Code, title 42, section 671(a)(20). A study completed under section 245C.33 
357.7 	meets this requirement. A background study on the prospective relative custodian or adult 
357.8 	residing in the household previously completed under section 245C.04 chapter 245C for the 
357.9 	purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota 
357.10 	tribe, shall be used for the purposes of this section, provided that the background study is 
357.11 	current meets the requirements of this subdivision and the prospective relative custodian is 
357.12 	a licensed child foster parent at the time of the application for guardianship assistance.
357.13 	(b) If the background study reveals:
357.14 	(1) a felony conviction at any time for:
357.15 	(i) child abuse or neglect;
357.16 	(ii) spousal abuse;
357.17 	(iii) a crime against a child, including child pornography; or
357.18 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
357.19 	including other physical assault or battery; or
357.20 	(2) a felony conviction within the past five years for:
357.21 	(i) physical assault;
357.22 	(ii) battery; or
357.23 	(iii) a drug-related offense;
357.24 	the prospective relative custodian is prohibited from receiving guardianship assistance 
357.25 	on behalf of an otherwise eligible child.

357.26 	Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 6, is 
357.27 	amended to read:
357.28 		Subd. 6.Exclusions. (a) A child with a guardianship assistance agreement under 
357.29 	Northstar Care for Children is not eligible for the Minnesota family investment program 
357.30 	child-only grant under chapter 256J.
357.31 	(b) The commissioner shall not enter into a guardianship assistance agreement with:
357.32 	(1) a child's biological parent or stepparent;
357.33 	(2) an individual assuming permanent legal and physical custody of a child or the 
357.34 	equivalent under tribal code without involvement of the child welfare system; or
358.1 	(3) an individual assuming permanent legal and physical custody of a child who was 
358.2 	placed in Minnesota by another state or a tribe outside of Minnesota.

358.3 	Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 1, is 
358.4 	amended to read:
358.5 		Subdivision 1.General eligibility requirements. (a) To be eligible for Northstar 
358.6 	adoption assistance under this section, a child must:
358.7 	(1) be determined to be a child with special needs under subdivision 2;
358.8 	(2) meet the applicable citizenship and immigration requirements in subdivision 3;
358.9 	(3)(i) meet the criteria in section 473 of the Social Security Act; or
358.10 	(ii) have had foster care payments paid on the child's behalf while in out-of-home 
358.11 	placement through the county social service agency or tribe and be either under the
358.12 	 tribal social service agency prior to the issuance of a court order transferring the child's
358.13 	 guardianship of to the commissioner or under the jurisdiction of a Minnesota tribe and 
358.14 	adoption, according to tribal law, is in the child's documented permanency plan making 
358.15 	the child a ward of the tribe; and
358.16 	(4) have a written, binding agreement under section 256N.25 among the adoptive 
358.17 	parent, the financially responsible agency, or, if there is no financially responsible agency, 
358.18 	the agency designated by the commissioner, and the commissioner established prior to 
358.19 	finalization of the adoption.
358.20 	(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent 
358.21 	or parents must meet the applicable background study requirements in subdivision 4.
358.22 	(c) A child who meets all eligibility criteria except those specific to title IV-E adoption 
358.23 	assistance shall receive adoption assistance paid through funds other than title IV-E.
358.24 	(d) A child receiving Northstar kinship assistance payments under section 256N.22 
358.25 	is eligible for Northstar adoption assistance when the criteria in paragraph (a) are met and 
358.26 	the child's legal custodian is adopting the child.

358.27 	Sec. 21. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is 
358.28 	amended to read:
358.29 		Subd. 4.Background study. (a) A background study under section 259.41 must be 
358.30 	completed on each prospective adoptive parent. and all other adults residing in the home. 
358.31 	A background study must meet the requirements of United States Code, title 42, section 
358.32 	671(a)(20). A study completed under section 245C.33 meets this requirement. If the 
358.33 	prospective adoptive parent is a licensed child foster parent licensed under chapter 245A 
358.34 	or by a Minnesota tribe, the background study previously completed for the purposes of 
359.1 	child foster care licensure shall be used for the purpose of this section, provided that the 
359.2 	background study meets all other requirements of this subdivision and the prospective 
359.3 	adoptive parent is a licensed child foster parent at the time of the application for adoption 
359.4 	assistance.
359.5 	(b) If the background study reveals:
359.6 	(1) a felony conviction at any time for:
359.7 	(i) child abuse or neglect;
359.8 	(ii) spousal abuse;
359.9 	(iii) a crime against a child, including child pornography; or
359.10 	(iv) a crime involving violence, including rape, sexual assault, or homicide, but not 
359.11 	including other physical assault or battery; or
359.12 	(2) a felony conviction within the past five years for:
359.13 	(i) physical assault;
359.14 	(ii) battery; or
359.15 	(iii) a drug-related offense;
359.16 	the adoptive parent is prohibited from receiving adoption assistance on behalf of an 
359.17 	otherwise eligible child.

359.18 	Sec. 22. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 9, is 
359.19 	amended to read:
359.20 		Subd. 9.Timing of and requests for reassessments. Reassessments for an eligible 
359.21 	child must be completed within 30 days of any of the following events:
359.22 	(1) for a child in continuous foster care, when six months have elapsed since 
359.23 	completion of the last assessment the initial assessment, and annually thereafter;
359.24 	(2) for a child in continuous foster care, change of placement location;
359.25 	(3) for a child in foster care, at the request of the financially responsible agency or 
359.26 	legally responsible agency;
359.27 	(4) at the request of the commissioner; or
359.28 	(5) at the request of the caregiver under subdivision 9 10.

359.29 	Sec. 23. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 10, 
359.30 	is amended to read:
359.31 		Subd. 10.Caregiver requests for reassessments. (a) A caregiver may initiate 
359.32 	a reassessment request for an eligible child in writing to the financially responsible 
359.33 	agency or, if there is no financially responsible agency, the agency designated by the 
359.34 	commissioner. The written request must include the reason for the request and the 
360.1 	name, address, and contact information of the caregivers. For an eligible child with a 
360.2 	guardianship assistance or adoption assistance agreement, The caregiver may request a 
360.3 	reassessment if at least six months have elapsed since any previously requested review
360.4 	 previous assessment or reassessment. For an eligible foster child, a foster parent may 
360.5 	request reassessment in less than six months with written documentation that there have 
360.6 	been significant changes in the child's needs that necessitate an earlier reassessment.
360.7 	(b) A caregiver may request a reassessment of an at-risk child for whom a 
360.8 	guardianship assistance or an adoption assistance agreement has been executed if the 
360.9 	caregiver has satisfied the commissioner with written documentation from a qualified 
360.10 	expert that the potential disability upon which eligibility for the agreement was based has 
360.11 	manifested itself, consistent with section 256N.25, subdivision 3, paragraph (b).
360.12 	(c) If the reassessment cannot be completed within 30 days of the caregiver's request, 
360.13 	the agency responsible for reassessment must notify the caregiver of the reason for the 
360.14 	delay and a reasonable estimate of when the reassessment can be completed.
360.15 	(d) Notwithstanding any provision to the contrary in paragraph (a) or subdivision 9, 
360.16 	when a Northstar kinship assistance agreement or adoption assistance agreement under 
360.17 	section 256N.25 has been signed by all parties, no reassessment may be requested or 
360.18 	conducted until the court finalizes the transfer of permanent legal and physical custody or 
360.19 	finalizes the adoption, or the assistance agreement expires according to section 256N.25, 
360.20 	subdivision 1.

360.21 	Sec. 24. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is 
360.22 	amended to read:
360.23 		Subd. 2.Negotiation of agreement. (a) When a child is determined to be eligible 
360.24 	for guardianship assistance or adoption assistance, the financially responsible agency, or, 
360.25 	if there is no financially responsible agency, the agency designated by the commissioner, 
360.26 	must negotiate with the caregiver to develop an agreement under subdivision 1. If and when 
360.27 	the caregiver and agency reach concurrence as to the terms of the agreement, both parties 
360.28 	shall sign the agreement. The agency must submit the agreement, along with the eligibility 
360.29 	determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to 
360.30 	the commissioner for final review, approval, and signature according to subdivision 1.
360.31 	(b) A monthly payment is provided as part of the adoption assistance or guardianship 
360.32 	assistance agreement to support the care of children unless the child is eligible for adoption 
360.33 	assistance and determined to be an at-risk child, in which case the special at-risk monthly 
360.34 	payment under section 256N.26, subdivision 7, must no payment will be made unless and 
361.1 	until the caregiver obtains written documentation from a qualified expert that the potential 
361.2 	disability upon which eligibility for the agreement was based has manifested itself.
361.3 	(1) The amount of the payment made on behalf of a child eligible for guardianship 
361.4 	assistance or adoption assistance is determined through agreement between the prospective 
361.5 	relative custodian or the adoptive parent and the financially responsible agency, or, if there 
361.6 	is no financially responsible agency, the agency designated by the commissioner, using 
361.7 	the assessment tool established by the commissioner in section 256N.24, subdivision 2, 
361.8 	and the associated benefit and payments outlined in section 256N.26. Except as provided 
361.9 	under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes 
361.10 	the monthly benefit level for a child under foster care. The monthly payment under a 
361.11 	guardianship assistance agreement or adoption assistance agreement may be negotiated up 
361.12 	to the monthly benefit level under foster care. In no case may the amount of the payment 
361.13 	under a guardianship assistance agreement or adoption assistance agreement exceed the 
361.14 	foster care maintenance payment which would have been paid during the month if the 
361.15 	child with respect to whom the guardianship assistance or adoption assistance payment is 
361.16 	made had been in a foster family home in the state.
361.17 	(2) The rate schedule for the agreement is determined based on the age of the 
361.18 	child on the date that the prospective adoptive parent or parents or relative custodian or 
361.19 	custodians sign the agreement.
361.20 	(3) The income of the relative custodian or custodians or adoptive parent or parents 
361.21 	must not be taken into consideration when determining eligibility for guardianship 
361.22 	assistance or adoption assistance or the amount of the payments under section 256N.26.
361.23 	(4) With the concurrence of the relative custodian or adoptive parent, the amount of 
361.24 	the payment may be adjusted periodically using the assessment tool established by the 
361.25 	commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under 
361.26 	subdivision 3 when there is a change in the child's needs or the family's circumstances.
361.27 	(5) The guardianship assistance or adoption assistance agreement of a child who is 
361.28 	identified as at-risk receives the special at-risk monthly payment under section 256N.26, 
361.29 	subdivision 7, unless and until the potential disability manifests itself, as documented by 
361.30 	an appropriate professional, and the commissioner authorizes commencement of payment 
361.31 	by modifying the agreement accordingly. A relative custodian or An adoptive parent 
361.32 	of an at-risk child with a guardianship assistance or an adoption assistance agreement 
361.33 	may request a reassessment of the child under section 256N.24, subdivision 9 10, and 
361.34 	renegotiation of the guardianship assistance or adoption assistance agreement under 
361.35 	subdivision 3 to include a monthly payment, if the caregiver has written documentation 
361.36 	from a qualified expert that the potential disability upon which eligibility for the agreement 
362.1 	was based has manifested itself. Documentation of the disability must be limited to 
362.2 	evidence deemed appropriate by the commissioner.
362.3 	(c) For guardianship assistance agreements:
362.4 	(1) the initial amount of the monthly guardianship assistance payment must be 
362.5 	equivalent to the foster care rate in effect at the time that the agreement is signed less any 
362.6 	offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to 
362.7 	by the prospective relative custodian and specified in that agreement, unless the child is 
362.8 	identified as at-risk or the guardianship assistance agreement is entered into when a child 
362.9 	is under the age of six; and
362.10 	(2) an at-risk child must be assigned level A as outlined in section 256N.26 and 
362.11 	receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless 
362.12 	and until the potential disability manifests itself, as documented by a qualified expert, and 
362.13 	the commissioner authorizes commencement of payment by modifying the agreement 
362.14 	accordingly; and
362.15 	(3) (2) the amount of the monthly payment for a guardianship assistance agreement 
362.16 	for a child, other than an at-risk child, who is under the age of six must be as specified in 
362.17 	section 256N.26, subdivision 5.
362.18 	(d) For adoption assistance agreements:
362.19 	(1) for a child in foster care with the prospective adoptive parent immediately prior 
362.20 	to adoptive placement, the initial amount of the monthly adoption assistance payment 
362.21 	must be equivalent to the foster care rate in effect at the time that the agreement is signed 
362.22 	less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed 
362.23 	to by the prospective adoptive parents and specified in that agreement, unless the child is 
362.24 	identified as at-risk or the adoption assistance agreement is entered into when a child is 
362.25 	under the age of six;
362.26 	(2) for an at-risk child who must be assigned level A as outlined in section 
362.27 	256N.26and receive the special at-risk monthly payment under section 256N.26, 
362.28 	subdivision 7, no payment will be made  unless and until the potential disability manifests 
362.29 	itself, as documented by an appropriate professional, and the commissioner authorizes 
362.30 	commencement of payment by modifying the agreement accordingly;
362.31 	(3) the amount of the monthly payment for an adoption assistance agreement for 
362.32 	a child under the age of six, other than an at-risk child, must be as specified in section 
362.33 	256N.26, subdivision 5;
362.34 	(4) for a child who is in the guardianship assistance program immediately prior 
362.35 	to adoptive placement, the initial amount of the adoption assistance payment must be 
362.36 	equivalent to the guardianship assistance payment in effect at the time that the adoption 
363.1 	assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive 
363.2 	parent and specified in that agreement, unless the child is identified as an at-risk child; and
363.3 	(5) for a child who is not in foster care placement or the guardianship assistance 
363.4 	program immediately prior to adoptive placement or negotiation of the adoption assistance 
363.5 	agreement, the initial amount of the adoption assistance agreement must be determined 
363.6 	using the assessment tool and process in this section and the corresponding payment 
363.7 	amount outlined in section 256N.26.

363.8 	Sec. 25. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is 
363.9 	amended to read:
363.10 		Subd. 3.Renegotiation of agreement. (a) A relative custodian or adoptive 
363.11 	parent of a child with a guardianship assistance or adoption assistance agreement may 
363.12 	request renegotiation of the agreement when there is a change in the needs of the child 
363.13 	or in the family's circumstances. When a relative custodian or adoptive parent requests 
363.14 	renegotiation of the agreement, a reassessment of the child must be completed consistent 
363.15 	with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the 
363.16 	child's level has changed, the financially responsible agency or, if there is no financially 
363.17 	responsible agency, the agency designated by the commissioner or the commissioner's 
363.18 	designee, and the caregiver must renegotiate the agreement to include a payment with 
363.19 	the level determined through the reassessment process. The agreement must not be 
363.20 	renegotiated unless the commissioner, the financially responsible agency, and the caregiver 
363.21 	mutually agree to the changes. The effective date of any renegotiated agreement must be 
363.22 	determined by the commissioner.
363.23 	(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship 
363.24 	assistance or an adoption assistance agreement may request renegotiation of the agreement 
363.25 	to include a monthly payment higher than the special at-risk monthly payment under 
363.26 	section 256N.26, subdivision 7, if the caregiver has written documentation from a 
363.27 	qualified expert that the potential disability upon which eligibility for the agreement 
363.28 	was based has manifested itself. Documentation of the disability must be limited to 
363.29 	evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a 
363.30 	reassessment of the child must be conducted as outlined in section 256N.24, subdivision 
363.31 	9. The reassessment must be used to renegotiate the agreement to include an appropriate 
363.32 	monthly payment. The agreement must not be renegotiated unless the commissioner, the 
363.33 	financially responsible agency, and the caregiver mutually agree to the changes. The 
363.34 	effective date of any renegotiated agreement must be determined by the commissioner.
364.1 	(c) Renegotiation of a guardianship assistance or adoption assistance agreement is 
364.2 	required when one of the circumstances outlined in section 256N.26, subdivision 13, 
364.3 	occurs.

364.4 	Sec. 26. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is 
364.5 	amended to read:
364.6 		Subdivision 1.Benefits. (a) There are three benefits under Northstar Care for 
364.7 	Children: medical assistance, basic payment, and supplemental difficulty of care payment.
364.8 	(b) A child is eligible for medical assistance under subdivision 2.
364.9 	(c) A child is eligible for the basic payment under subdivision 3, except for a child 
364.10 	assigned level A under section 256N.24, subdivision 1, because the child is determined to 
364.11 	be an at-risk child receiving guardianship assistance or adoption assistance.
364.12 	(d) A child, including a foster child age 18 to 21, is eligible for an additional 
364.13 	supplemental difficulty of care payment under subdivision 4, as determined by the 
364.14 	assessment under section 256N.24.
364.15 	(e) An eligible child entering guardianship assistance or adoption assistance under 
364.16 	the age of six receives a basic payment and supplemental difficulty of care payment as 
364.17 	specified in subdivision 5.
364.18 	(f) A child transitioning in from a pre-Northstar Care for Children program under 
364.19 	section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental 
364.20 	payments according to those provisions.

364.21 	Sec. 27. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is 
364.22 	amended to read:
364.23 		Subd. 4.Nonfederal share. (a) The commissioner shall establish a percentage share 
364.24 	of the maintenance payments, reduced by federal reimbursements under title IV-E of the 
364.25 	Social Security Act, to be paid by the state and to be paid by the financially responsible 
364.26 	agency.
364.27 	(b) These state and local shares must initially be calculated based on the ratio of the 
364.28 	average appropriate expenditures made by the state and all financially responsible agencies 
364.29 	during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation, 
364.30 	appropriate expenditures for the financially responsible agencies must include basic and 
364.31 	difficulty of care payments for foster care reduced by federal reimbursements, but not 
364.32 	including any initial clothing allowance, administrative payments to child care agencies 
364.33 	specified in section 317A.907, child care, or other support or ancillary expenditures. For 
365.1 	purposes of this calculation, appropriate expenditures for the state shall include adoption 
365.2 	assistance and relative custody assistance, reduced by federal reimbursements.
365.3 	(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017, 
365.4 	2018, and 2019, the commissioner shall adjust this initial percentage of state and local 
365.5 	shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and 
365.6 	2014, taking into account appropriations for Northstar Care for Children and the turnover 
365.7 	rates of the components. In making these adjustments, the commissioner's goal shall be to 
365.8 	make these state and local expenditures other than the appropriations for Northstar Care 
365.9 	for Children to be the same as they would have been had Northstar Care for Children not 
365.10 	been implemented, or if that is not possible, proportionally higher or lower, as appropriate. 
365.11 	Except for adjustments so that the costs of the phase-in are borne by the state, the state and 
365.12 	local share percentages for fiscal year 2019 must be used for all subsequent years.

365.13 	Sec. 28. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
365.14 		Subd. 11.Financial considerations. (a) Payment of relative custody assistance 
365.15 	under a relative custody assistance agreement is subject to the availability of state funds 
365.16 	and payments may be reduced or suspended on order of the commissioner if insufficient 
365.17 	funds are available.
365.18 	(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner 
365.19 	shall reimburse the local agency in an amount equal to 100 percent of the relative custody 
365.20 	assistance payments provided to relative custodians. The A local agency may not seek and 
365.21 	the commissioner shall not provide reimbursement for the administrative costs associated 
365.22 	with performing the duties described in subdivision 4.
365.23 	(c) For the purposes of determining eligibility or payment amounts under MFIP, 
365.24 	relative custody assistance payments shall be excluded in determining the family's 
365.25 	available income.
365.26 	(d) For expenditures made on or before December 31, 2014, upon receipt from a 
365.27 	local agency of a claim for reimbursement, the commissioner shall reimburse the local 
365.28 	agency in an amount equal to 100 percent of the relative custody assistance payments 
365.29 	provided to relative custodians.
365.30 	(e) For expenditures made on or after January 1, 2015, upon receipt from a local 
365.31 	agency of a claim for reimbursement, the commissioner shall reimburse the local agency as 
365.32 	part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

365.33 	Sec. 29. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
366.1 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan 
366.2 	shall be prepared within 30 days after any child is placed in foster care by court order or a 
366.3 	voluntary placement agreement between the responsible social services agency and the 
366.4 	child's parent pursuant to section 260C.227 or chapter 260D.
366.5 	(b) An out-of-home placement plan means a written document which is prepared 
366.6 	by the responsible social services agency jointly with the parent or parents or guardian 
366.7 	of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 
366.8 	child is an Indian child, the child's foster parent or representative of the foster care facility, 
366.9 	and, where appropriate, the child. For a child in voluntary foster care for treatment under 
366.10 	chapter 260D, preparation of the out-of-home placement plan shall additionally include 
366.11 	the child's mental health treatment provider. As appropriate, the plan shall be:
366.12 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
366.13 	(2) ordered by the court, either as presented or modified after hearing, under section 
366.14 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
366.15 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad 
366.16 	litem, a representative of the child's tribe, the responsible social services agency, and, if 
366.17 	possible, the child.
366.18 	(c) The out-of-home placement plan shall be explained to all persons involved in its 
366.19 	implementation, including the child who has signed the plan, and shall set forth:
366.20 	(1) a description of the foster care home or facility selected, including how the 
366.21 	out-of-home placement plan is designed to achieve a safe placement for the child in the 
366.22 	least restrictive, most family-like, setting available which is in close proximity to the home 
366.23 	of the parent or parents or guardian of the child when the case plan goal is reunification, 
366.24 	and how the placement is consistent with the best interests and special needs of the child 
366.25 	according to the factors under subdivision 2, paragraph (b);
366.26 	(2) the specific reasons for the placement of the child in foster care, and when 
366.27 	reunification is the plan, a description of the problems or conditions in the home of the 
366.28 	parent or parents which necessitated removal of the child from home and the changes the 
366.29 	parent or parents must make in order for the child to safely return home;
366.30 	(3) a description of the services offered and provided to prevent removal of the child 
366.31 	from the home and to reunify the family including:
366.32 	(i) the specific actions to be taken by the parent or parents of the child to eliminate 
366.33 	or correct the problems or conditions identified in clause (2), and the time period during 
366.34 	which the actions are to be taken; and
366.35 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 
366.36 	to achieve a safe and stable home for the child including social and other supportive 
367.1 	services to be provided or offered to the parent or parents or guardian of the child, the 
367.2 	child, and the residential facility during the period the child is in the residential facility;
367.3 	(4) a description of any services or resources that were requested by the child or the 
367.4 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
367.5 	in the residential facility, and whether those services or resources were provided and if 
367.6 	not, the basis for the denial of the services or resources;
367.7 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined 
367.8 	in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed 
367.9 	together in foster care, and whether visitation is consistent with the best interest of the 
367.10 	child, during the period the child is in foster care;
367.11 	(6) when a child cannot return to or be in the care of either parent, documentation of 
367.12 	steps to finalize the permanency plan for the child, including:
367.13 	(i) reasonable efforts to place the child for adoption or legal guardianship of the child 
367.14 	if the court has issued an order terminating the rights of both parents of the child or of the 
367.15 	only known, living parent of the child. At a minimum, the documentation must include 
367.16 	consideration of whether adoption is in the best interests of the child, child-specific 
367.17 	recruitment efforts such as relative search and the use of state, regional, and national 
367.18 	adoption exchanges to facilitate orderly and timely placements in and outside of the state. 
367.19 	A copy of this documentation shall be provided to the court in the review required under 
367.20 	section 260C.317, subdivision 3, paragraph (b); and
367.21 	(ii) documentation necessary to support the requirements of the kinship placement 
367.22 	agreement under section 256N.22 when adoption is determined not to be in the child's 
367.23 	best interests;
367.24 	(7) efforts to ensure the child's educational stability while in foster care, including:
367.25 	(i) efforts to ensure that the child remains in the same school in which the child was 
367.26 	enrolled prior to placement or upon the child's move from one placement to another, 
367.27 	including efforts to work with the local education authorities to ensure the child's 
367.28 	educational stability; or
367.29 	(ii) if it is not in the child's best interest to remain in the same school that the child 
367.30 	was enrolled in prior to placement or move from one placement to another, efforts to 
367.31 	ensure immediate and appropriate enrollment for the child in a new school;
367.32 	(8) the educational records of the child including the most recent information 
367.33 	available regarding:
367.34 	(i) the names and addresses of the child's educational providers;
367.35 	(ii) the child's grade level performance;
367.36 	(iii) the child's school record;
368.1 	(iv) a statement about how the child's placement in foster care takes into account 
368.2 	proximity to the school in which the child is enrolled at the time of placement; and
368.3 	(v) any other relevant educational information;
368.4 	(9) the efforts by the local agency to ensure the oversight and continuity of health 
368.5 	care services for the foster child, including:
368.6 	(i) the plan to schedule the child's initial health screens;
368.7 	(ii) how the child's known medical problems and identified needs from the screens, 
368.8 	including any known communicable diseases, as defined in section 144.4172, subdivision 
368.9 	2, will be monitored and treated while the child is in foster care;
368.10 	(iii) how the child's medical information will be updated and shared, including 
368.11 	the child's immunizations;
368.12 	(iv) who is responsible to coordinate and respond to the child's health care needs, 
368.13 	including the role of the parent, the agency, and the foster parent;
368.14 	(v) who is responsible for oversight of the child's prescription medications;
368.15 	(vi) how physicians or other appropriate medical and nonmedical professionals 
368.16 	will be consulted and involved in assessing the health and well-being of the child and 
368.17 	determine the appropriate medical treatment for the child; and
368.18 	(vii) the responsibility to ensure that the child has access to medical care through 
368.19 	either medical insurance or medical assistance;
368.20 	(10) the health records of the child including information available regarding:
368.21 	(i) the names and addresses of the child's health care and dental care providers;
368.22 	(ii) a record of the child's immunizations;
368.23 	(iii) the child's known medical problems, including any known communicable 
368.24 	diseases as defined in section 144.4172, subdivision 2;
368.25 	(iv) the child's medications; and
368.26 	(v) any other relevant health care information such as the child's eligibility for 
368.27 	medical insurance or medical assistance;
368.28 	(11) an independent living plan for a child age 16 or older. The plan should include, 
368.29 	but not be limited to, the following objectives:
368.30 	(i) educational, vocational, or employment planning;
368.31 	(ii) health care planning and medical coverage;
368.32 	(iii) transportation including, where appropriate, assisting the child in obtaining a 
368.33 	driver's license;
368.34 	(iv) money management, including the responsibility of the agency to ensure that 
368.35 	the youth annually receives, at no cost to the youth, a consumer report as defined under 
368.36 	section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
369.1 	(v) planning for housing;
369.2 	(vi) social and recreational skills; and
369.3 	(vii) establishing and maintaining connections with the child's family and 
369.4 	community; and
369.5 	(12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 
369.6 	and assessment information, specific services relating to meeting the mental health care 
369.7 	needs of the child, and treatment outcomes.
369.8 	(d) The parent or parents or guardian and the child each shall have the right to legal 
369.9 	counsel in the preparation of the case plan and shall be informed of the right at the time 
369.10 	of placement of the child. The child shall also have the right to a guardian ad litem. 
369.11 	If unable to employ counsel from their own resources, the court shall appoint counsel 
369.12 	upon the request of the parent or parents or the child or the child's legal guardian. The 
369.13 	parent or parents may also receive assistance from any person or social services agency 
369.14 	in preparation of the case plan.
369.15 	After the plan has been agreed upon by the parties involved or approved or ordered 
369.16 	by the court, the foster parents shall be fully informed of the provisions of the case plan 
369.17 	and shall be provided a copy of the plan.
369.18 	Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 
369.19 	physical custodian, as appropriate, and the child, if appropriate, must be provided with 
369.20 	a current copy of the child's health and education record.

369.21 	Sec. 30. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
369.22 		Subd. 4.Custody to relative. The court may order permanent legal and physical 
369.23 	custody to a fit and willing relative in the best interests of the child according to the 
369.24 	following conditions requirements:
369.25 	(1) an order for transfer of permanent legal and physical custody to a relative shall 
369.26 	only be made after the court has reviewed the suitability of the prospective legal and 
369.27 	physical custodian;
369.28 	(2) in transferring permanent legal and physical custody to a relative, the juvenile 
369.29 	court shall follow the standards applicable under this chapter and chapter 260, and the 
369.30 	procedures in the Minnesota Rules of Juvenile Protection Procedure;
369.31 	(3) a transfer of legal and physical custody includes responsibility for the protection, 
369.32 	education, care, and control of the child and decision making on behalf of the child;
369.33 	(4) a permanent legal and physical custodian may not return a child to the permanent 
369.34 	care of a parent from whom the court removed custody without the court's approval and 
369.35 	without notice to the responsible social services agency;
370.1 	(5) the social services agency may file a petition naming a fit and willing relative as 
370.2 	a proposed permanent legal and physical custodian. A petition for transfer of permanent 
370.3 	legal and physical custody to a relative who is not a parent shall be accompanied by a 
370.4 	kinship placement agreement under section 256N.22, subdivision 2, between the agency 
370.5 	and proposed permanent legal and physical custodian;
370.6 	(6) another party to the permanency proceeding regarding the child may file a 
370.7 	petition to transfer permanent legal and physical custody to a relative, but the. The petition 
370.8 	must include facts upon which the court can make the determination required under clause 
370.9 	(7) and must be filed not later than the date for the required admit-deny hearing under 
370.10 	section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision 
370.11 	2, the petition must be filed not later than 30 days prior to the trial required under section 
370.12 	260C.509; and
370.13 	(7) where a petition is for transfer of permanent legal and physical custody to a 
370.14 	relative who is not a parent, the court must find that:
370.15 	(i) transfer of permanent legal and physical custody and receipt of Northstar kinship 
370.16 	assistance under chapter 256N, when requested and the child is eligible, is in the child's 
370.17 	best interests;
370.18 	(ii) adoption is not in the child's best interests based on the determinations in the 
370.19 	kinship placement agreement required under section 256N.22, subdivision 2;
370.20 	(iii) the agency made efforts to discuss adoption with the child's parent or parents, 
370.21 	or the agency did not make efforts to discuss adoption and the reasons why efforts were 
370.22 	not made; and
370.23 	(iv) there are reasons to separate siblings during placement, if applicable;
370.24 	(8) the court may defer finalization of an order transferring permanent legal and 
370.25 	physical custody to a relative when deferring finalization is necessary to determine 
370.26 	eligibility for Northstar kinship assistance under chapter 256N; 
370.27 	(9) the court may finalize a permanent transfer of physical and legal custody to a 
370.28 	relative regardless of eligibility for Northstar kinship assistance under chapter 256N; and
370.29 	(7) (10) the juvenile court may maintain jurisdiction over the responsible social 
370.30 	services agency, the parents or guardian of the child, the child, and the permanent legal 
370.31 	and physical custodian for purposes of ensuring appropriate services are delivered to the 
370.32 	child and permanent legal custodian for the purpose of ensuring conditions ordered by the 
370.33 	court related to the care and custody of the child are met.

370.34 	Sec. 31. Minnesota Statutes 2012, section 260C.611, is amended to read:
370.35 	260C.611 ADOPTION STUDY REQUIRED.
371.1 	(a) An adoption study under section 259.41 approving placement of the child in the 
371.2 	home of the prospective adoptive parent shall be completed before placing any child under 
371.3 	the guardianship of the commissioner in a home for adoption. If a prospective adoptive 
371.4 	parent has a current child foster care license under chapter 245A and is seeking to adopt 
371.5 	a foster child who is placed in the prospective adoptive parent's home and is under the 
371.6 	guardianship of the commissioner according to section 260C.325, subdivision 1, the child 
371.7 	foster care home study meets the requirements of this section for an approved adoption 
371.8 	home study if:
371.9 	(1) the written home study on which the foster care license was based is completed 
371.10 	in the commissioner's designated format, consistent with the requirements in sections 
371.11 	259.41, subdivision 2; and 260C.215, subdivision 4, clause (5); and Minnesota Rules, 
371.12 	part 2960.3060, subpart 4;
371.13 	(2) the background studies on each prospective adoptive parent and all required 
371.14 	household members were completed according to section 245C.33;
371.15 	(3) the commissioner has not issued, within the last three years, a sanction on the 
371.16 	license under section 245A.07 or an order of a conditional license under section 245A.06; 
371.17 	and
371.18 	(4) the legally responsible agency determines that the individual needs of the child 
371.19 	are being met by the prospective adoptive parent through an assessment under section 
371.20 	256N.24, subdivision 2, or a documented placement decision consistent with section 
371.21 	260C.212, subdivision 2.
371.22 	(b) If a prospective adoptive parent has previously held a foster care license or 
371.23 	adoptive home study, any update necessary to the foster care license, or updated or new 
371.24 	adoptive home study, if not completed by the licensing authority responsible for the 
371.25 	previous license or home study, shall include collateral information from the previous 
371.26 	licensing or approving agency, if available.

371.27 	Sec. 32. PARENT AWARE QUALITY RATING AND IMPROVEMENT 
371.28 	SYSTEM ACCESSIBILITY REPORT.
 371.29 		Subdivision 1.Recommendations. The commissioner of human services, in 
371.30 	consultation with representatives from the child care and early childhood advocacy 
371.31 	community, child care provider organizations, child care providers, organizations 
371.32 	administering Parent Aware, the Departments of Education and Health, counties, and 
371.33 	parents, shall make recommendations to the members of the legislative committees having 
371.34 	jurisdiction over health and human services provisions and funding on increasing statewide 
371.35 	accessibility for child care providers to the Parent Aware quality rating and improvement 
372.1 	system and for increasing access to Parent Aware-rated programs for families with 
372.2 	children. The recommendations must address the following factors impacting accessibility:
372.3 	(1) availability of rated and nonrated programs by child care provider type, within 
372.4 	rural and underserved areas, and for different cultural and non-English-speaking groups;
372.5 	(2) time and resources necessary for child care providers to participate in Parent 
372.6 	Aware at various rating levels, including cultural and linguistic considerations;
372.7 	(3) federal child care development fund regulations; and
372.8 	(4) other factors as determined by the commissioner.
372.9 		Subd. 2.Report. By February 15, 2015, the commissioner of human services 
372.10 	shall report to the legislative committees with jurisdiction over the child care 
372.11 	assistance programs and the Parent Aware quality rating and improvement system with 
372.12 	recommendations to increase access for families and child care providers to Parent Aware, 
372.13 	including benchmarks for achieving the maximum participation in Parent Aware-rated 
372.14 	child care programs by families receiving child care assistance.

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

372.16 	Sec. 33. RECOMMENDATIONS FOR CULTURALLY APPROPRIATE 
372.17 	OUTREACH.
 372.18 	The Cultural and Ethnic Communities Leadership Council under Laws 2013, 
372.19 	chapter 107, article 2, section 1, shall review with the commissioner of human services 
372.20 	the department's existing competencies and strategies and provide recommendations on 
372.21 	improving internal competencies for culturally appropriate outreach to New American 
372.22 	community providers impacted by Minnesota Statutes, section 119B.09, subdivision 9a.

372.23 	Sec. 34. REVISOR'S INSTRUCTION.
 372.24 	The revisor of statutes shall change the term "guardianship assistance" to "Northstar 
372.25 	kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to 
372.26 	refer to the program components related to Northstar Care for Children under Minnesota 
372.27 	Statutes, chapter 256N.

372.28 	Sec. 35.  REPEALER.
 372.29 	Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.

373.1 	ARTICLE 26
373.2 	COMMUNITY FIRST SERVICES AND SUPPORTS

373.3 	Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a 
373.4 	subdivision to read:
373.5 		Subd. 8.Community first services and supports organizations. The 
373.6 	commissioner shall conduct background studies on any individual required under section 
373.7 	256B.85 to have a background study completed under this chapter.

373.8 	Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision 
373.9 	to read:
373.10 		Subd. 7.Community first services and supports organizations. (a) The 
373.11 	commissioner shall conduct a background study of an individual required to be studied 
373.12 	under section 245C.03, subdivision 8, at least upon application for initial enrollment 
373.13 	under section 256B.85.
373.14 	(b) Before an individual described in section 245C.03, subdivision 8, begins a 
373.15 	position allowing direct contact with a person served by an organization required to initiate 
373.16 	a background study under section 256B.85, the organization must receive a notice from 
373.17 	the commissioner that the support worker is:
373.18 	(1) not disqualified under section 245C.14; or
373.19 	(2) disqualified, but the individual has received a set-aside of the disqualification 
373.20 	under section 245C.22.

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

373.30 	Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is 
373.31 	amended to read:
374.1 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in 
374.2 	this subdivision have the meanings given.
374.3 	(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming, 
374.4 	dressing, bathing, mobility, positioning, and transferring.
374.5 	(c) "Agency-provider model" means a method of CFSS under which a qualified 
374.6 	agency provides services and supports through the agency's own employees and policies. 
374.7 	The agency must allow the participant to have a significant role in the selection and 
374.8 	dismissal of support workers of their choice for the delivery of their specific services 
374.9 	and supports.
374.10 	(d) "Behavior" means a description of a need for services and supports used to 
374.11 	determine the home care rating and additional service units. The presence of Level I 
374.12 	behavior is used to determine the home care rating. "Level I behavior" means physical 
374.13 	aggression towards self or others or destruction of property that requires the immediate 
374.14 	response of another person. If qualified for a home care rating as described in subdivision 
374.15 	8, additional service units can be added as described in subdivision 8, paragraph (f), for 
374.16 	the following behaviors:
374.17 	(1) Level I behavior;
374.18 	(2) increased vulnerability due to cognitive deficits or socially inappropriate 
374.19 	behavior; or
374.20 	(3) increased need for assistance for recipients participants who are verbally 
374.21 	aggressive or resistive to care so that time needed to perform activities of daily living is 
374.22 	increased.
374.23 	(e) "Budget model" means a service delivery method of CFSS that allows the use of 
374.24 	a service budget and assistance from a financial management services (FMS) contractor 
374.25 	for a participant to directly employ support workers and purchase supports and goods.
374.26 	(e) (f) "Complex health-related needs" means an intervention listed in clauses (1) 
374.27 	to (8) that has been ordered by a physician, and is specified in a community support 
374.28 	plan, including:
374.29 	(1) tube feedings requiring:
374.30 	(i) a gastrojejunostomy tube; or
374.31 	(ii) continuous tube feeding lasting longer than 12 hours per day;
374.32 	(2) wounds described as:
374.33 	(i) stage III or stage IV;
374.34 	(ii) multiple wounds;
374.35 	(iii) requiring sterile or clean dressing changes or a wound vac; or
375.1 	(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require 
375.2 	specialized care;
375.3 	(3) parenteral therapy described as:
375.4 	(i) IV therapy more than two times per week lasting longer than four hours for 
375.5 	each treatment; or
375.6 	(ii) total parenteral nutrition (TPN) daily;
375.7 	(4) respiratory interventions, including:
375.8 	(i) oxygen required more than eight hours per day;
375.9 	(ii) respiratory vest more than one time per day;
375.10 	(iii) bronchial drainage treatments more than two times per day;
375.11 	(iv) sterile or clean suctioning more than six times per day;
375.12 	(v) dependence on another to apply respiratory ventilation augmentation devices 
375.13 	such as BiPAP and CPAP; and
375.14 	(vi) ventilator dependence under section 256B.0652;
375.15 	(5) insertion and maintenance of catheter, including:
375.16 	(i) sterile catheter changes more than one time per month;
375.17 	(ii) clean intermittent catheterization, and including self-catheterization more than 
375.18 	six times per day; or
375.19 	(iii) bladder irrigations;
375.20 	(6) bowel program more than two times per week requiring more than 30 minutes to 
375.21 	perform each time;
375.22 	(7) neurological intervention, including:
375.23 	(i) seizures more than two times per week and requiring significant physical 
375.24 	assistance to maintain safety; or
375.25 	(ii) swallowing disorders diagnosed by a physician and requiring specialized 
375.26 	assistance from another on a daily basis; and
375.27 	(8) other congenital or acquired diseases creating a need for significantly increased 
375.28 	direct hands-on assistance and interventions in six to eight activities of daily living.
375.29 	(f) (g) "Community first services and supports" or "CFSS" means the assistance and 
375.30 	supports program under this section needed for accomplishing activities of daily living, 
375.31 	instrumental activities of daily living, and health-related tasks through hands-on assistance 
375.32 	to accomplish the task or constant supervision and cueing to accomplish the task, or the 
375.33 	purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace 
375.34 	the need for human assistance.
375.35 	(g) (h) "Community first services and supports service delivery plan" or "service 
375.36 	delivery plan" means a written summary of document detailing the services and supports 
376.1 	chosen by the participant to meet assessed needs that is are within the approved CFSS 
376.2 	service authorization amount. Services and supports are based on the community support 
376.3 	plan identified in section 256B.0911 and coordinated services and support plan and budget 
376.4 	identified in section 256B.0915, subdivision 6, if applicable, that is determined by the 
376.5 	participant to meet the assessed needs, using a person-centered planning process.
376.6 	(i) "Consultation services" means a Minnesota health care program enrolled provider 
376.7 	organization that is under contract with the department and has the knowledge, skills, 
376.8 	and ability to assist CFSS participants in using either the agency-provider model under 
376.9 	subdivision 11 or the budget model under subdivision 13.
376.10 	(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and 
376.11 	toileting.
376.12 	(i) (k) "Dependency" in activities of daily living means a person requires hands-on 
376.13 	assistance or constant supervision and cueing to accomplish one or more of the activities 
376.14 	of daily living every day or on the days during the week that the activity is performed; 
376.15 	however, a child may not be found to be dependent in an activity of daily living if, 
376.16 	because of the child's age, an adult would either perform the activity for the child or assist 
376.17 	the child with the activity and the assistance needed is the assistance appropriate for 
376.18 	a typical child of the same age.
376.19 	(j) (l) "Extended CFSS" means CFSS services and supports under the
376.20 	agency-provider model included in a service plan through one of the home and 
376.21 	community-based services waivers and as approved and authorized under sections 
376.22 	256B.0915; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration, 
376.23 	and frequency of the state plan CFSS services for participants.
376.24 	(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
376.25 	 means a qualified organization having required for participants using the budget model 
376.26 	under subdivision 13 that has a written contract with the department to provide vendor 
376.27 	fiscal/employer agent financial management services necessary to use the budget model 
376.28 	under subdivision 13 that (FMS). Services include but are not limited to: participant 
376.29 	education and technical assistance; CFSS service delivery planning and budgeting;
376.30 	filing and payment of federal and state payroll taxes on behalf of the participant; 
376.31 	initiating criminal background checks; billing, making payments, and for approved CFSS 
376.32 	services with authorized funds; monitoring of spending expenditures; accounting for 
376.33 	and disbursing CFSS funds; providing assistance in obtaining and filing for liability, 
376.34 	workers' compensation, and unemployment coverage; and assisting providing participant 
376.35 	instruction and technical assistance to the participant in fulfilling employer-related 
376.36 	requirements in accordance with Section 3504 of the Internal Revenue Code and the 
377.1 	Internal Revenue Service Revenue Procedure 70-6 related regulations and interpretations, 
377.2 	including Code of Federal Regulations, title 26, section 31.3504-1.
377.3 	(l) "Budget model" means a service delivery method of CFSS that allows the use of 
377.4 	an individualized CFSS service delivery plan and service budget and provides assistance 
377.5 	from the financial management services contractor to facilitate participant employment of 
377.6 	support workers and the acquisition of supports and goods.
377.7 	(m) (n) "Health-related procedures and tasks" means procedures and tasks related 
377.8 	to the specific needs of an individual that can be delegated taught or assigned by a 
377.9 	state-licensed healthcare or mental health professional and performed by a support worker.
377.10 	(n) (o) "Instrumental activities of daily living" means activities related to 
377.11 	living independently in the community, including but not limited to: meal planning, 
377.12 	preparation, and cooking; shopping for food, clothing, or other essential items; laundry; 
377.13 	housecleaning; assistance with medications; managing finances; communicating needs 
377.14 	and preferences during activities; arranging supports; and assistance with traveling around 
377.15 	and participating in the community.
377.16 	(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian, 
377.17 	or another representative with legal authority to make decisions about services and 
377.18 	supports for the participant. Other representatives with legal authority to make decisions 
377.19 	include but are not limited to a health care agent or an attorney-in-fact authorized through 
377.20 	a health care directive or power of attorney.
377.21 	(p) (q) "Medication assistance" means providing verbal or visual reminders to take 
377.22 	regularly scheduled medication, and includes any of the following supports listed in clauses 
377.23 	(1) to (3) and other types of assistance, except that a support worker may not determine 
377.24 	medication dose or time for medication or inject medications into veins, muscles, or skin:
377.25 	(1) under the direction of the participant or the participant's representative, bringing 
377.26 	medications to the participant including medications given through a nebulizer, opening a 
377.27 	container of previously set-up medications, emptying the container into the participant's 
377.28 	hand, opening and giving the medication in the original container to the participant, or 
377.29 	bringing to the participant liquids or food to accompany the medication;
377.30 	(2) organizing medications as directed by the participant or the participant's 
377.31 	representative; and
377.32 	(3) providing verbal or visual reminders to perform regularly scheduled medications.
377.33 	(q) (r) "Participant's representative" means a parent, family member, advocate, 
377.34 	or other adult authorized by the participant to serve as a representative in connection 
377.35 	with the provision of CFSS. This authorization must be in writing or by another method 
377.36 	that clearly indicates the participant's free choice. The participant's representative must 
378.1 	have no financial interest in the provision of any services included in the participant's 
378.2 	service delivery plan and must be capable of providing the support necessary to assist 
378.3 	the participant in the use of CFSS. If through the assessment process described in 
378.4 	subdivision 5 a participant is determined to be in need of a participant's representative, one 
378.5 	must be selected. If the participant is unable to assist in the selection of a participant's 
378.6 	representative, the legal representative shall appoint one. Two persons may be designated 
378.7 	as a participant's representative for reasons such as divided households and court-ordered 
378.8 	custodies. Duties of a participant's representatives may include:
378.9 	(1) being available while care is services are provided in a method agreed upon by 
378.10 	the participant or the participant's legal representative and documented in the participant's 
378.11 	CFSS service delivery plan;
378.12 	(2) monitoring CFSS services to ensure the participant's CFSS service delivery 
378.13 	plan is being followed; and
378.14 	(3) reviewing and signing CFSS time sheets after services are provided to provide 
378.15 	verification of the CFSS services.
378.16 	(r) (s) "Person-centered planning process" means a process that is directed by the 
378.17 	participant to plan for services and supports. The person-centered planning process must:
378.18 	(1) include people chosen by the participant;
378.19 	(2) provide necessary information and support to ensure that the participant directs 
378.20 	the process to the maximum extent possible, and is enabled to make informed choices 
378.21 	and decisions;
378.22 	(3) be timely and occur at time and locations of convenience to the participant;
378.23 	(4) reflect cultural considerations of the participant;
378.24 	(5) include strategies for solving conflict or disagreement within the process, 
378.25 	including clear conflict-of-interest guidelines for all planning;
378.26 	(6) provide the participant choices of the services and supports they receive and the 
378.27 	staff providing those services and supports;
378.28 	(7) include a method for the participant to request updates to the plan; and
378.29 	(8) record the alternative home and community-based settings that were considered 
378.30 	by the participant.
378.31 	(s) (t) "Shared services" means the provision of CFSS services by the same CFSS 
378.32 	support worker to two or three participants who voluntarily enter into an agreement to 
378.33 	receive services at the same time and in the same setting by the same provider employer.
378.34 	(t) "Support specialist" means a professional with the skills and ability to assist the 
378.35 	participant using either the agency-provider model under subdivision 11 or the flexible 
379.1 	spending model under subdivision 13, in services including but not limited to assistance 
379.2 	regarding:
379.3 	(1) the development, implementation, and evaluation of the CFSS service delivery 
379.4 	plan under subdivision 6;
379.5 	(2) recruitment, training, or supervision, including supervision of health-related tasks 
379.6 	or behavioral supports appropriately delegated or assigned by a health care professional, 
379.7 	and evaluation of support workers; and
379.8 	(3) facilitating the use of informal and community supports, goods, or resources.
379.9 	(u) "Support worker" means an a qualified and trained employee of the agency 
379.10 	provider agency-provider or of the participant employer under the budget model who 
379.11 	has direct contact with the participant and provides services as specified within the 
379.12 	participant's service delivery plan.
379.13 	(v) "Wages and benefits" means the hourly wages and salaries, the employer's 
379.14 	share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' 
379.15 	compensation, mileage reimbursement, health and dental insurance, life insurance, 
379.16 	disability insurance, long-term care insurance, uniform allowance, contributions to 
379.17 	employee retirement accounts, or other forms of employee compensation and benefits.
379.18 	(w) "Worker training and development" means services for developing workers' 
379.19 	skills as required by the participant's individual CFSS delivery plan that are arranged for 
379.20 	or provided by the agency-provider or purchased by the participant employer. These 
379.21 	services include training, education, direct observation and supervision, and evaluation 
379.22 	and coaching of job skills and tasks, including supervision of health-related tasks or 
379.23 	behavioral supports.

379.24 	Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is 
379.25 	amended to read:
379.26 		Subd. 3.Eligibility. (a) CFSS is available to a person who meets one of the 
379.27 	following:
379.28 	(1) is a recipient an enrollee of medical assistance as determined under section 
379.29 	256B.055, 256B.056, or 256B.057, subdivisions 5 and 9;
379.30 	(2) is a recipient of participant in the alternative care program under section 
379.31 	256B.0913;
379.32 	(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092, 
379.33 	256B.093, or 256B.49; or
379.34 	(4) has medical services identified in a participant's individualized education 
379.35 	program and is eligible for services as determined in section 256B.0625, subdivision 26.
380.1 	(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also 
380.2 	meet all of the following:
380.3 	(1) require assistance and be determined dependent in one activity of daily living or 
380.4 	Level I behavior based on assessment under section 256B.0911; and
380.5 	(2) is not a recipient of participant under a family support grant under section 252.32;.
380.6 	(3) lives in the person's own apartment or home including a family foster care setting 
380.7 	licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a 
380.8 	noncertified boarding care home or a boarding and lodging establishment under chapter 
380.9 	157.

380.10 	Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is 
380.11 	amended to read:
380.12 		Subd. 5.Assessment requirements. (a) The assessment of functional need must:
380.13 	(1) be conducted by a certified assessor according to the criteria established in 
380.14 	section 256B.0911, subdivision 3a;
380.15 	(2) be conducted face-to-face, initially and at least annually thereafter, or when there 
380.16 	is a significant change in the participant's condition or a change in the need for services 
380.17 	and supports, or at the request of the participant when the participant experiences a change 
380.18 	in condition or needs a change in the services or supports; and
380.19 	(3) be completed using the format established by the commissioner.
380.20 	(b) A participant who is residing in a facility may be assessed and choose CFSS for 
380.21 	the purpose of using CFSS to return to the community as described in subdivisions 3 
380.22 	and 7, paragraph (a), clause (5).
380.23 	(c) (b) The results of the assessment and any recommendations and authorizations 
380.24 	for CFSS must be determined and communicated in writing by the lead agency's certified 
380.25 	assessor as defined in section 256B.0911 to the participant and the agency-provider or 
380.26 	financial management services provider FMS contractor chosen by the participant within 
380.27 	40 calendar days and must include the participant's right to appeal under section 256.045, 
380.28 	subdivision 3.
380.29 	(d) (c) The lead agency assessor may request authorize a temporary authorization 
380.30 	for CFSS services to be provided under the agency-provider model. Authorization for 
380.31 	a temporary level of CFSS services under the agency-provider model is limited to the 
380.32 	time specified by the commissioner, but shall not exceed 45 days. The level of services 
380.33 	authorized under this provision paragraph shall have no bearing on a future authorization.
380.34 	 Participants approved for a temporary authorization shall access the consultation service 
380.35 	to complete their orientation and selection of a service model.

381.1 	Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is 
381.2 	amended to read:
381.3 		Subd. 6.Community first services and support service delivery plan. (a) The 
381.4 	CFSS service delivery plan must be developed, implemented, and evaluated through a 
381.5 	person-centered planning process by the participant, or the participant's representative 
381.6 	or legal representative who may be assisted by a support specialist consultation services 
381.7 	provider. The CFSS service delivery plan must reflect the services and supports that 
381.8 	are important to the participant and for the participant to meet the needs assessed 
381.9 	by the certified assessor and identified in the community support plan under section 
381.10 	256B.0911, subdivision 3, or the coordinated services and support plan identified in 
381.11 	section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be 
381.12 	reviewed by the participant, the consultation services provider, and the agency-provider 
381.13 	or financial management services FMS contractor prior to starting services and at least 
381.14 	annually upon reassessment, or when there is a significant change in the participant's 
381.15 	condition, or a change in the need for services and supports.
381.16 	(b) The commissioner shall establish the format and criteria for the CFSS service 
381.17 	delivery plan.
381.18 	(c) The CFSS service delivery plan must be person-centered and:
381.19 	(1) specify the consultation services provider, agency-provider, or financial 
381.20 	management services FMS contractor selected by the participant;
381.21 	(2) reflect the setting in which the participant resides that is chosen by the participant;
381.22 	(3) reflect the participant's strengths and preferences;
381.23 	(4) include the means to address the clinical and support needs as identified through 
381.24 	an assessment of functional needs;
381.25 	(5) include individually identified goals and desired outcomes;
381.26 	(6) reflect the services and supports, paid and unpaid, that will assist the participant 
381.27 	to achieve identified goals, including the costs of the services and supports, and the 
381.28 	providers of those services and supports, including natural supports;
381.29 	(7) identify the amount and frequency of face-to-face supports and amount and 
381.30 	frequency of remote supports and technology that will be used;
381.31 	(8) identify risk factors and measures in place to minimize them, including 
381.32 	individualized backup plans;
381.33 	(9) be understandable to the participant and the individuals providing support;
381.34 	(10) identify the individual or entity responsible for monitoring the plan;
381.35 	(11) be finalized and agreed to in writing by the participant and signed by all 
381.36 	individuals and providers responsible for its implementation;
382.1 	(12) be distributed to the participant and other people involved in the plan; and
382.2 	(13) prevent the provision of unnecessary or inappropriate care.;
382.3 	(14) include a detailed budget for expenditures for budget model participants or 
382.4 	participants under the agency-provider model if purchasing goods; and
382.5 	(15) include a plan for worker training and development detailing what service 
382.6 	components will be used, when the service components will be used, how they will be 
382.7 	provided, and how these service components relate to the participant's individual needs 
382.8 	and CFSS support worker services.
382.9 	(d) The total units of agency-provider services or the service budget allocation
382.10 	 amount for the budget model include both annual totals and a monthly average amount 
382.11 	that cover the number of months of the service authorization. The amount used each 
382.12 	month may vary, but additional funds must not be provided above the annual service 
382.13 	authorization amount unless a change in condition is assessed and authorized by the 
382.14 	certified assessor and documented in the community support plan, coordinated services 
382.15 	and supports plan, and CFSS service delivery plan.
382.16 	(e) In assisting with the development or modification of the plan during the 
382.17 	authorization time period, the consultation services provider shall:
382.18 	(1) consult with the FMS contractor on the spending budget when applicable; and
382.19 	(2) consult with the participant or participant's representative, agency-provider, and 
382.20 	case manager/care coordinator.
382.21 	(f) The service plan must be approved by the consultation services provider for 
382.22 	participants without a case manager/care coordinator. A case manager/care coordinator 
382.23 	must approve the plan for a waiver or alternative care program participant.

382.24 	Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is 
382.25 	amended to read:
382.26 		Subd. 7.Community first services and supports; covered services. Within the 
382.27 	service unit authorization or service budget allocation amount, services and supports 
382.28 	covered under CFSS include:
382.29 	(1) assistance to accomplish activities of daily living (ADLs), instrumental activities 
382.30 	of daily living (IADLs), and health-related procedures and tasks through hands-on 
382.31 	assistance to accomplish the task or constant supervision and cueing to accomplish the task;
382.32 	(2) assistance to acquire, maintain, or enhance the skills necessary for the participant 
382.33 	to accomplish activities of daily living, instrumental activities of daily living, or 
382.34 	health-related tasks;
383.1 	(3) expenditures for items, services, supports, environmental modifications, or 
383.2 	goods, including assistive technology. These expenditures must:
383.3 	(i) relate to a need identified in a participant's CFSS service delivery plan;
383.4 	(ii) increase independence or substitute for human assistance to the extent that 
383.5 	expenditures would otherwise be made for human assistance for the participant's assessed 
383.6 	needs;
383.7 	(4) observation and redirection for behavior or symptoms where there is a need for 
383.8 	assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
383.9 	 participant qualifies as having a need for assistance due to behaviors if the recipient's
383.10 	 participant's behavior requires assistance at least four times per week and shows one or 
383.11 	more of the following behaviors:
383.12 	(i) physical aggression towards self or others, or destruction of property that requires 
383.13 	the immediate response of another person;
383.14 	(ii) increased vulnerability due to cognitive deficits or socially inappropriate 
383.15 	behavior; or
383.16 	(iii) increased need for assistance for recipients participants who are verbally 
383.17 	aggressive or resistive to care so that time needed to perform activities of daily living is 
383.18 	increased;
383.19 	(5) back-up systems or mechanisms, such as the use of pagers or other electronic 
383.20 	devices, to ensure continuity of the participant's services and supports;
383.21 	(6) transition costs, including:
383.22 	(i) deposits for rent and utilities;
383.23 	(ii) first month's rent and utilities;
383.24 	(iii) bedding;
383.25 	(iv) basic kitchen supplies;
383.26 	(v) other necessities, to the extent that these necessities are not otherwise covered 
383.27 	under any other funding that the participant is eligible to receive; and
383.28 	(vi) other required necessities for an individual to make the transition from a nursing 
383.29 	facility, institution for mental diseases, or intermediate care facility for persons with 
383.30 	developmental disabilities to a community-based home setting where the participant 
383.31 	resides; and
383.32 	(7) (6) services provided by a support specialist consultation services provider under 
383.33 	contract with the department and enrolled as a Minnesota health care program provider as 
383.34 	 defined under subdivision 2 that are chosen by the participant. 17;
383.35 	(7) services provided by an FMS contractor under contract with the department 
383.36 	as defined under subdivision 13;
384.1 	(8) CFSS services provided by a qualified support worker who is a parent, stepparent, 
384.2 	or legal guardian of a participant under age 18, or who is the participant's spouse. These 
384.3 	support workers shall not provide any medical assistance home and community-based 
384.4 	services in excess of 40 hours per seven-day period regardless of the number of parents, 
384.5 	combination of parents and spouses, or number of children who receive medical assistance 
384.6 	services; and
384.7 	(9) worker training and development services as defined in subdivision 2, paragraph 
384.8 	(w), and described in subdivision 18a.

384.9 	Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is 
384.10 	amended to read:
384.11 		Subd. 8.Determination of CFSS service methodology. (a) All community first 
384.12 	services and supports must be authorized by the commissioner or the commissioner's 
384.13 	designee before services begin, except for the assessments established in section 
384.14 	256B.0911. The authorization for CFSS must be completed as soon as possible following 
384.15 	an assessment but no later than 40 calendar days from the date of the assessment.
384.16 	(b) The amount of CFSS authorized must be based on the recipient's participant's
384.17 	 home care rating described in paragraphs (d) and (e) and any additional service units for 
384.18 	which the person participant qualifies as described in paragraph (f).
384.19 	(c) The home care rating shall be determined by the commissioner or the 
384.20 	commissioner's designee based on information submitted to the commissioner identifying 
384.21 	the following for a recipient participant:
384.22 	(1) the total number of dependencies of activities of daily living as defined in 
384.23 	subdivision 2, paragraph (b);
384.24 	(2) the presence of complex health-related needs as defined in subdivision 2, 
384.25 	paragraph (e); and
384.26 	(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d), 
384.27 	clause (1).
384.28 	(d) The methodology to determine the total service units for CFSS for each home 
384.29 	care rating is based on the median paid units per day for each home care rating from 
384.30 	fiscal year 2007 data for the PCA program.
384.31 	(e) Each home care rating is designated by the letters P through Z and EN and has 
384.32 	the following base number of service units assigned:
384.33 	(1) P home care rating requires Level I behavior or one to three dependencies in 
384.34 	ADLs and qualifies one for five service units;
385.1 	(2) Q home care rating requires Level I behavior and one to three dependencies in 
385.2 	ADLs and qualifies one for six service units;
385.3 	(3) R home care rating requires a complex health-related need and one to three 
385.4 	dependencies in ADLs and qualifies one for seven service units;
385.5 	(4) S home care rating requires four to six dependencies in ADLs and qualifies 
385.6 	one for ten service units;
385.7 	(5) T home care rating requires four to six dependencies in ADLs and Level I 
385.8 	behavior and qualifies one for 11 service units;
385.9 	(6) U home care rating requires four to six dependencies in ADLs and a complex 
385.10 	health-related need and qualifies one for 14 service units;
385.11 	(7) V home care rating requires seven to eight dependencies in ADLs and qualifies 
385.12 	one for 17 service units;
385.13 	(8) W home care rating requires seven to eight dependencies in ADLs and Level I 
385.14 	behavior and qualifies one for 20 service units;
385.15 	(9) Z home care rating requires seven to eight dependencies in ADLs and a complex 
385.16 	health-related need and qualifies one for 30 service units; and
385.17 	(10) EN home care rating includes ventilator dependency as defined in section 
385.18 	256B.0651, subdivision 1, paragraph (g). Recipients Participants who meet the definition 
385.19 	of ventilator-dependent and the EN home care rating and utilize a combination of 
385.20 	CFSS and other home care services are limited to a total of 96 service units per day for 
385.21 	those services in combination. Additional units may be authorized when a recipient's
385.22 	 participant's assessment indicates a need for two staff to perform activities. Additional 
385.23 	time is limited to 16 service units per day.
385.24 	(f) Additional service units are provided through the assessment and identification of 
385.25 	the following:
385.26 	(1) 30 additional minutes per day for a dependency in each critical activity of daily 
385.27 	living as defined in subdivision 2, paragraph (h) (j);
385.28 	(2) 30 additional minutes per day for each complex health-related function as 
385.29 	defined in subdivision 2, paragraph (e) (f); and
385.30 	(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2, 
385.31 	paragraph (d).
385.32 	(g) The service budget for budget model participants shall be based on:
385.33 	(1) assessed units as determined by the home care rating; and
385.34 	(2) an adjustment needed for administrative expenses.

386.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is 
386.2 	amended to read:
386.3 		Subd. 9.Noncovered services. (a) Services or supports that are not eligible for 
386.4 	payment under this section include those that:
386.5 	(1) are not authorized by the certified assessor or included in the written service 
386.6 	delivery plan;
386.7 	(2) are provided prior to the authorization of services and the approval of the written 
386.8 	CFSS service delivery plan;
386.9 	(3) are duplicative of other paid services in the written service delivery plan;
386.10 	(4) supplant natural unpaid supports that appropriately meet a need in the service 
386.11 	plan, are provided voluntarily to the participant, and are selected by the participant in lieu 
386.12 	of other services and supports;
386.13 	(5) are not effective means to meet the participant's needs; and
386.14 	(6) are available through other funding sources, including, but not limited to, funding 
386.15 	through title IV-E of the Social Security Act.
386.16 	(b) Additional services, goods, or supports that are not covered include:
386.17 	(1) those that are not for the direct benefit of the participant, except that services for 
386.18 	caregivers such as training to improve the ability to provide CFSS are considered to directly 
386.19 	benefit the participant if chosen by the participant and approved in the support plan;
386.20 	(2) any fees incurred by the participant, such as Minnesota health care programs fees 
386.21 	and co-pays, legal fees, or costs related to advocate agencies;
386.22 	(3) insurance, except for insurance costs related to employee coverage;
386.23 	(4) room and board costs for the participant with the exception of allowable 
386.24 	transition costs in subdivision 7, clause (6);
386.25 	(5) services, supports, or goods that are not related to the assessed needs;
386.26 	(6) special education and related services provided under the Individuals with 
386.27 	Disabilities Education Act and vocational rehabilitation services provided under the 
386.28 	Rehabilitation Act of 1973;
386.29 	(7) assistive technology devices and assistive technology services other than those 
386.30 	for back-up systems or mechanisms to ensure continuity of service and supports listed in 
386.31 	subdivision 7;
386.32 	(8) medical supplies and equipment covered under medical assistance;
386.33 	(9) environmental modifications, except as specified in subdivision 7;
386.34 	(10) expenses for travel, lodging, or meals related to training the participant, or the 
386.35 	participant's representative,or legal representative, or paid or unpaid caregivers that 
386.36 	exceed $500 in a 12-month period;
387.1 	(11) experimental treatments;
387.2 	(12) any service or good covered by other medical assistance state plan services, 
387.3 	including prescription and over-the-counter medications, compounds, and solutions and 
387.4 	related fees, including premiums and co-payments;
387.5 	(13) membership dues or costs, except when the service is necessary and appropriate 
387.6 	to treat a physical health condition or to improve or maintain the participant's physical
387.7 	 health condition. The condition must be identified in the participant's CFSS plan and 
387.8 	monitored by a physician enrolled in a Minnesota health care program enrolled physician;
387.9 	(14) vacation expenses other than the cost of direct services;
387.10 	(15) vehicle maintenance or modifications not related to the disability, health 
387.11 	condition, or physical need; and
387.12 	(16) tickets and related costs to attend sporting or other recreational or entertainment 
387.13 	events.;
387.14 	(17) services provided and billed by a provider who is not an enrolled CFSS provider;
387.15 	(18) CFSS provided by a participant's representative or paid legal guardian;
387.16 	(19) services that are used solely as a child care or babysitting service;
387.17 	(20) services that are the responsibility or in the daily rate of a residential or program 
387.18 	license holder under the terms of a service agreement and administrative rules;
387.19 	(21) sterile procedures;
387.20 	(22) giving of injections into veins, muscles, or skin;
387.21 	(23) homemaker services that are not an integral part of the assessed CFSS service;
387.22 	(24) home maintenance or chore services;
387.23 	(25) home care services, including hospice services if elected by the participant, 
387.24 	covered by Medicare or any other insurance held by the participant;
387.25 	(26) services to other members of the participant's household;
387.26 	(27) services not specified as covered under medical assistance as CFSS;
387.27 	(28) application of restraints or implementation of deprivation procedures;
387.28 	(29) assessments by CFSS provider organizations or by independently enrolled 
387.29 	registered nurses;
387.30 	(30) services provided in lieu of legally required staffing in a residential or child 
387.31 	care setting; and
387.32 	(31) services provided by the residential or program license holder in a residence for 
387.33 	more than four persons.

387.34 	Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10, 
387.35 	is amended to read:
388.1 		Subd. 10.Provider Agency-provider and FMS contractor qualifications and,
388.2 	 general requirements, and duties. (a) Agency-providers delivering services under the 
388.3 	agency-provider model under subdivision 11 or financial management service (FMS)
388.4 	 FMS contractors under subdivision 13 shall:
388.5 	(1) enroll as a medical assistance Minnesota health care programs provider and meet 
388.6 	all applicable provider standards and requirements;
388.7 	(2) comply with medical assistance provider enrollment requirements;
388.8 	(3) (2) demonstrate compliance with law federal and state laws and policies of for
388.9 	 CFSS as determined by the commissioner;
388.10 	(4) (3) comply with background study requirements under chapter 245C and 
388.11 	maintain documentation of background study requests and results;
388.12 	(5) (4) verify and maintain records of all services and expenditures by the participant, 
388.13 	including hours worked by support workers and support specialists;
388.14 	(6) (5) not engage in any agency-initiated direct contact or marketing in person, by 
388.15 	telephone, or other electronic means to potential participants, guardians, family members, 
388.16 	or participants' representatives;
388.17 	(6) directly provide services and not use a subcontractor or reporting agent;
388.18 	(7) meet the financial requirements established by the commissioner for financial 
388.19 	solvency;
388.20 	(8) have never had a lead agency contract or provider agreement discontinued due to 
388.21 	fraud, or have never had an owner, board member, or manager fail a state or FBI-based 
388.22 	criminal background check while enrolled or seeking enrollment as a Minnesota health 
388.23 	care programs provider;
388.24 	(9) have established business practices that include written policies and procedures, 
388.25 	internal controls, and a system that demonstrates the organization's ability to deliver 
388.26 	quality CFSS; and
388.27 	(10) have an office located in Minnesota.
388.28 	(b) In conducting general duties, agency-providers and FMS contractors shall:
388.29 	(7) (1) pay support workers and support specialists based upon actual hours of 
388.30 	services provided;
388.31 	(2) pay for worker training and development services based upon actual hours of 
388.32 	services provided or the unit cost of the training session purchased;
388.33 	(8) (3) withhold and pay all applicable federal and state payroll taxes;
388.34 	(9) (4) make arrangements and pay unemployment insurance, taxes, workers' 
388.35 	compensation, liability insurance, and other benefits, if any;
389.1 	(10) (5) enter into a written agreement with the participant, participant's 
389.2 	representative, or legal representative that assigns roles and responsibilities to be 
389.3 	performed before services, supports, or goods are provided using a format established by 
389.4 	the commissioner;
389.5 	(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
389.6 	(12) (7) provide the participant with a copy of the service-related rights under 
389.7 	subdivision 20 at the start of services and supports.; and
389.8 	(8) comply with any data requests from the department consistent with the 
389.9 	Minnesota Government Data Practices Act under chapter 13.

389.10 	Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11, 
389.11 	is amended to read:
389.12 		Subd. 11.Agency-provider model. (a) The agency-provider model is limited to 
389.13 	the includes services provided by support workers and support specialists staff providing 
389.14 	worker training and development services who are employed by an agency-provider 
389.15 	that is licensed according to chapter 245A or meets other criteria established by the 
389.16 	commissioner, including required training.
389.17 	(b) The agency-provider shall allow the participant to have a significant role in the 
389.18 	selection and dismissal of the support workers for the delivery of the services and supports 
389.19 	specified in the participant's service delivery plan.
389.20 	(c) A participant may use authorized units of CFSS services as needed within a 
389.21 	service authorization that is not greater than 12 months. Using authorized units in a 
389.22 	flexible manner in either the agency-provider model or the budget model does not increase 
389.23 	the total amount of services and supports authorized for a participant or included in the 
389.24 	participant's service delivery plan.
389.25 	(d) A participant may share CFSS services. Two or three CFSS participants may 
389.26 	share services at the same time provided by the same support worker.
389.27 	(e) The agency-provider must use a minimum of 72.5 percent of the revenue 
389.28 	generated by the medical assistance payment for CFSS for support worker wages and 
389.29 	benefits. The agency-provider must document how this requirement is being met. The 
389.30 	revenue generated by the support specialist worker training and development services
389.31 	 and the reasonable costs associated with the support specialist worker training and 
389.32 	development services must not be used in making this calculation.
389.33 	(f) The agency-provider model must be used by individuals who have been restricted 
389.34 	by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160 
389.35 	to 9505.2245.
390.1 	(g) Participants purchasing goods under this model, along with support worker 
390.2 	services, must:
390.3 	(1) specify the goods in the service delivery plan and detailed budget for 
390.4 	expenditures that must be approved by the consultation services provider or the case 
390.5 	manager/care coordinator; and
390.6 	(2) use the FMS contractor for the billing and payment of such goods.

390.7 	Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12, 
390.8 	is amended to read:
390.9 		Subd. 12.Requirements for enrollment of CFSS provider agency-provider
390.10 	 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of 
390.11 	enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in 
390.12 	a format determined by the commissioner, information and documentation that includes, 
390.13 	but is not limited to, the following:
390.14 	(1) the CFSS provider agency's agency-provider's current contact information 
390.15 	including address, telephone number, and e-mail address;
390.16 	(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
390.17 	 agency-provider's Medicaid revenue in the previous calendar year is less than or equal 
390.18 	to $300,000, the provider agency agency-provider must purchase a performance bond of 
390.19 	$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous 
390.20 	calendar year is greater than $300,000, the provider agency agency-provider must 
390.21 	purchase a performance bond of $100,000. The performance bond must be in a form 
390.22 	approved by the commissioner, must be renewed annually, and must allow for recovery of 
390.23 	costs and fees in pursuing a claim on the bond;
390.24 	(3) proof of fidelity bond coverage in the amount of $20,000;
390.25 	(4) proof of workers' compensation insurance coverage;
390.26 	(5) proof of liability insurance;
390.27 	(6) a description of the CFSS provider agency's agency-provider's organization 
390.28 	identifying the names of all owners, managing employees, staff, board of directors, and 
390.29 	the affiliations of the directors, and owners, or staff to other service providers;
390.30 	(7) a copy of the CFSS provider agency's agency-provider's written policies and 
390.31 	procedures including: hiring of employees; training requirements; service delivery; 
390.32 	and employee and consumer safety including process for notification and resolution 
390.33 	of consumer grievances, identification and prevention of communicable diseases, and 
390.34 	employee misconduct;
391.1 	(8) copies of all other forms the CFSS provider agency agency-provider uses in the 
391.2 	course of daily business including, but not limited to:
391.3 	(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time 
391.4 	sheet varies from the standard time sheet for CFSS services approved by the commissioner, 
391.5 	and a letter requesting approval of the CFSS provider agency's agency-provider's
391.6 	 nonstandard time sheet; and
391.7 	(ii) the a copy of the participant's individual CFSS provider agency's template for the 
391.8 	CFSS care service delivery plan;
391.9 	(9) a list of all training and classes that the CFSS provider agency agency-provider
391.10 	 requires of its staff providing CFSS services;
391.11 	(10) documentation that the CFSS provider agency agency-provider and staff have 
391.12 	successfully completed all the training required by this section;
391.13 	(11) documentation of the agency's agency-provider's marketing practices;
391.14 	(12) disclosure of ownership, leasing, or management of all residential properties 
391.15 	that are used or could be used for providing home care services;
391.16 	(13) documentation that the agency agency-provider will use at least the following 
391.17 	percentages of revenue generated from the medical assistance rate paid for CFSS services 
391.18 	for employee personal care assistant CFSS support worker wages and benefits: 72.5 
391.19 	percent of revenue from CFSS providers. The revenue generated by the support specialist
391.20 	 worker training and development services and the reasonable costs associated with the 
391.21 	support specialist worker training and development services shall not be used in making 
391.22 	this calculation; and
391.23 	(14) documentation that the agency agency-provider does not burden recipients'
391.24 	 participants' free exercise of their right to choose service providers by requiring personal 
391.25 	care assistants CFSS support workers to sign an agreement not to work with any particular 
391.26 	CFSS recipient participant or for another CFSS provider agency agency-provider after 
391.27 	leaving the agency and that the agency is not taking action on any such agreements or 
391.28 	requirements regardless of the date signed.
391.29 	(b) CFSS provider agencies agency-providers shall provide to the commissioner 
391.30 	the information specified in paragraph (a).
391.31 	(c) All CFSS provider agencies agency-providers shall require all employees in 
391.32 	management and supervisory positions and owners of the agency who are active in the 
391.33 	day-to-day management and operations of the agency to complete mandatory training as 
391.34 	determined by the commissioner. Employees in management and supervisory positions 
391.35 	and owners who are active in the day-to-day operations of an agency who have completed 
391.36 	the required training as an employee with a CFSS provider agency agency-provider do 
392.1 	not need to repeat the required training if they are hired by another agency, if they have 
392.2 	completed the training within the past three years. CFSS provider agency agency-provider
392.3 	 billing staff shall complete training about CFSS program financial management. Any new 
392.4 	owners or employees in management and supervisory positions involved in the day-to-day 
392.5 	operations are required to complete mandatory training as a requisite of working for the 
392.6 	agency. CFSS provider agencies certified for participation in Medicare as home health 
392.7 	agencies are exempt from the training required in this subdivision.
392.8 	(d) The commissioner shall send annual review notifications to agency-providers 30 
392.9 	days prior to renewal. The notification must:
392.10 	(1) list the materials and information the agency-provider is required to submit;
392.11 	(2) provide instructions on submitting information to the commissioner; and
392.12 	(3) provide a due date by which the commissioner must receive the requested 
392.13 	information.
392.14 	Agency-providers shall submit the required documentation for annual review within 
392.15 	30 days of notification from the commissioner. If no documentation is submitted, the 
392.16 	agency-provider enrollment number must be terminated or suspended.

392.17 	Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13, 
392.18 	is amended to read:
392.19 		Subd. 13.Budget model. (a) Under the budget model participants can may exercise 
392.20 	more responsibility and control over the services and supports described and budgeted 
392.21 	within the CFSS service delivery plan. Participants must use services provided by an FMS 
392.22 	contractor as defined in subdivision 2, paragraph (m). Under this model, participants may 
392.23 	use their approved service budget allocation to:
392.24 	(1) directly employ support workers, and pay wages, federal and state payroll taxes, 
392.25 	and premiums for workers' compensation, liability, and health insurance coverage; and
392.26 	(2) obtain supports and goods as defined in subdivision 7; and.
392.27 	(3) choose a range of support assistance services from the financial management 
392.28 	services (FMS) contractor related to:
392.29 	(i) assistance in managing the budget to meet the service delivery plan needs, 
392.30 	consistent with federal and state laws and regulations;
392.31 	(ii) the employment, training, supervision, and evaluation of workers by the 
392.32 	participant;
392.33 	(iii) acquisition and payment for supports and goods; and
392.34 	(iv) evaluation of individual service outcomes as needed for the scope of the 
392.35 	participant's degree of control and responsibility.
393.1 	(b) Participants who are unable to fulfill any of the functions listed in paragraph (a) 
393.2 	may authorize a legal representative or participant's representative to do so on their behalf.
393.3 	(c) The commissioner shall disenroll or exclude participants from the budget model 
393.4 	and transfer them to the agency-provider model under, but not limited to, the following 
393.5 	circumstances:
393.6 	(1) when a participant has been restricted by the Minnesota restricted recipient 
393.7 	program, in which case the participant may be excluded for a specified time period under 
393.8 	Minnesota Rules, parts 9505.2160 to 9505.2245;
393.9 	(2) when a participant exits the budget model during the participant's service plan 
393.10 	year. Upon transfer, the participant shall not access the budget model for the remainder of 
393.11 	that service plan year; or
393.12 	(3) when the department determines that the participant or participant's representative 
393.13 	or legal representative cannot manage participant responsibilities under the budget model. 
393.14 	The commissioner must develop policies for determining if a participant is unable to 
393.15 	manage responsibilities under the budget model.
393.16 	(d) A participant may appeal in writing to the department under section 256.045, 
393.17 	subdivision 3, to contest the department's decision under paragraph (c), clause (3), to 
393.18 	disenroll or exclude the participant from the budget model.
393.19 	(c) (e) The FMS contractor shall not provide CFSS services and supports under the 
393.20 	agency-provider service model. 
393.21 	(f) The FMS contractor shall provide service functions as determined by the 
393.22 	commissioner for budget model participants that include but are not limited to:
393.23 	(1) information and consultation about CFSS;
393.24 	(2) (1) assistance with the development of the detailed budget for expenditures 
393.25 	portion of the service delivery plan and budget model as requested by the consultation 
393.26 	services provider or participant;
393.27 	(3) (2) billing and making payments for budget model expenditures;
393.28 	(4) (3) assisting participants in fulfilling employer-related requirements according to 
393.29 	Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax 
393.30 	Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related 
393.31 	regulations and interpretations, including Code of Federal Regulations, title 26, section 
393.32 	31.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining 
393.33 	worker compensation coverage;
393.34 	(5) (4) data recording and reporting of participant spending; and
393.35 	(6) (5) other duties established in the contract with the department, including with 
393.36 	respect to providing assistance to the participant, participant's representative, or legal 
394.1 	representative in performing their employer responsibilities regarding support workers. 
394.2 	The support worker shall not be considered the employee of the financial management 
394.3 	services FMS contractor.; and
394.4 	(6) billing, payment, and accounting of approved expenditures for goods for 
394.5 	agency-provider participants.
394.6 	(d) A participant who requests to purchase goods and supports along with support 
394.7 	worker services under the agency-provider model must use the budget model with 
394.8 	a service delivery plan that specifies the amount of services to be authorized to the 
394.9 	agency-provider and the expenditures to be paid by the FMS contractor.
394.10 	(e) (g) The FMS contractor shall:
394.11 	(1) not limit or restrict the participant's choice of service or support providers or 
394.12 	service delivery models consistent with any applicable state and federal requirements;
394.13 	(2) provide the participant, consultation services provider, and the targeted case 
394.14 	manager or care coordinator, if applicable, with a monthly written summary of the 
394.15 	spending for services and supports that were billed against the spending budget;
394.16 	(3) be knowledgeable of state and federal employment regulations, including those 
394.17 	under the Fair Labor Standards Act of 1938, and comply with the requirements under the 
394.18 	Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the 
394.19 	Internal Revenue Code and related regulations and interpretations, including Code of 
394.20 	Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability 
394.21 	for vendor or fiscal employer agent, and any requirements necessary to process employer 
394.22 	and employee deductions, provide appropriate and timely submission of employer tax 
394.23 	liabilities, and maintain documentation to support medical assistance claims;
394.24 	(4) have current and adequate liability insurance and bonding and sufficient cash 
394.25 	flow as determined by the commissioner and have on staff or under contract a certified 
394.26 	public accountant or an individual with a baccalaureate degree in accounting;
394.27 	(5) assume fiscal accountability for state funds designated for the program and be 
394.28 	held liable for any overpayments or violations of applicable statutes or rules, including but 
394.29 	not limited to the Minnesota False Claims Act, chapter 15C; and
394.30 	(6) maintain documentation of receipts, invoices, and bills to track all services and 
394.31 	supports expenditures for any goods purchased and maintain time records of support 
394.32 	workers. The documentation and time records must be maintained for a minimum of 
394.33 	five years from the claim date and be available for audit or review upon request by the 
394.34 	commissioner. Claims submitted by the FMS contractor to the commissioner for payment 
394.35 	must correspond with services, amounts, and time periods as authorized in the participant's 
395.1 	spending service budget and service plan and must contain specific identifying information 
395.2 	as determined by the commissioner.
395.3 	(f) (h) The commissioner of human services shall:
395.4 	(1) establish rates and payment methodology for the FMS contractor;
395.5 	(2) identify a process to ensure quality and performance standards for the FMS 
395.6 	contractor and ensure statewide access to FMS contractors; and
395.7 	(3) establish a uniform protocol for delivering and administering CFSS services 
395.8 	to be used by eligible FMS contractors.
395.9 	(g) The commissioner of human services shall disenroll or exclude participants from 
395.10 	the budget model and transfer them to the agency-provider model under the following 
395.11 	circumstances that include but are not limited to:
395.12 	(1) when a participant has been restricted by the Minnesota restricted recipient 
395.13 	program, the participant may be excluded for a specified time period under Minnesota 
395.14 	Rules, parts 9505.2160 to 9505.2245;
395.15 	(2) when a participant exits the budget model during the participant's service plan 
395.16 	year. Upon transfer, the participant shall not access the budget model for the remainder of 
395.17 	that service plan year; or
395.18 	(3) when the department determines that the participant or participant's representative 
395.19 	or legal representative cannot manage participant responsibilities under the budget model. 
395.20 	The commissioner must develop policies for determining if a participant is unable to 
395.21 	manage responsibilities under a budget model.
395.22 	(h) A participant may appeal under section 256.045, subdivision 3, in writing to the 
395.23 	department to contest the department's decision under paragraph (c), clause (3), to remove 
395.24 	or exclude the participant from the budget model.

395.25 	Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15, 
395.26 	is amended to read:
395.27 		Subd. 15.Documentation of support services provided. (a) Support services 
395.28 	provided to a participant by a support worker employed by either an agency-provider 
395.29 	or the participant acting as the employer must be documented daily by each support 
395.30 	worker, on a time sheet form approved by the commissioner. All documentation may be 
395.31 	Web-based, electronic, or paper documentation. The completed form must be submitted 
395.32 	on a monthly regular basis to the provider or the participant and the FMS contractor 
395.33 	selected by the participant to provide assistance with meeting the participant's employer 
395.34 	obligations and kept in the recipient's health participant's record.
396.1 	(b) The activity documentation must correspond to the written service delivery plan 
396.2 	and be reviewed by the agency-provider or the participant and the FMS contractor when 
396.3 	the participant is acting as the employer of the support worker.
396.4 	(c) The time sheet must be on a form approved by the commissioner documenting 
396.5 	time the support worker provides services in the home to the participant. The following 
396.6 	criteria must be included in the time sheet:
396.7 	(1) full name of the support worker and individual provider number;
396.8 	(2) provider agency-provider name and telephone numbers, if an agency-provider is
396.9 	 responsible for delivery services under the written service plan;
396.10 	(3) full name of the participant;
396.11 	(4) consecutive dates, including month, day, and year, and arrival and departure 
396.12 	times with a.m. or p.m. notations;
396.13 	(5) signatures of the participant or the participant's representative;
396.14 	(6) personal signature of the support worker;
396.15 	(7) any shared care provided, if applicable;
396.16 	(8) a statement that it is a federal crime to provide false information on CFSS 
396.17 	billings for medical assistance payments; and
396.18 	(9) dates and location of recipient participant stays in a hospital, care facility, or 
396.19 	incarceration.

396.20 	Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16, 
396.21 	is amended to read:
396.22 		Subd. 16.Support workers requirements. (a) Support workers shall:
396.23 	(1) enroll with the department as a support worker after a background study under 
396.24 	chapter 245C has been completed and the support worker has received a notice from the 
396.25 	commissioner that:
396.26 	(i) the support worker is not disqualified under section 245C.14; or
396.27 	(ii) is disqualified, but the support worker has received a set-aside of the 
396.28 	disqualification under section 245C.22;
396.29 	(2) have the ability to effectively communicate with the participant or the 
396.30 	participant's representative;
396.31 	(3) have the skills and ability to provide the services and supports according to 
396.32 	the person's participant's CFSS service delivery plan and respond appropriately to the 
396.33 	participant's needs;
396.34 	(4) not be a participant of CFSS, unless the support services provided by the support 
396.35 	worker differ from those provided to the support worker;
397.1 	(5) complete the basic standardized training as determined by the commissioner 
397.2 	before completing enrollment. The training must be available in languages other than 
397.3 	English and to those who need accommodations due to disabilities. Support worker 
397.4 	training must include successful completion of the following training components: basic 
397.5 	first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles 
397.6 	and responsibilities of support workers including information about basic body mechanics, 
397.7 	emergency preparedness, orientation to positive behavioral practices, orientation to 
397.8 	responding to a mental health crisis, fraud issues, time cards and documentation, and an 
397.9 	overview of person-centered planning and self-direction. Upon completion of the training 
397.10 	components, the support worker must pass the certification test to provide assistance 
397.11 	to participants;
397.12 	(6) complete training and orientation on the participant's individual needs; and
397.13 	(7) maintain the privacy and confidentiality of the participant, and not independently 
397.14 	determine the medication dose or time for medications for the participant.
397.15 	(b) The commissioner may deny or terminate a support worker's provider enrollment 
397.16 	and provider number if the support worker:
397.17 	(1) lacks the skills, knowledge, or ability to adequately or safely perform the 
397.18 	required work;
397.19 	(2) fails to provide the authorized services required by the participant employer;
397.20 	(3) has been intoxicated by alcohol or drugs while providing authorized services to 
397.21 	the participant or while in the participant's home;
397.22 	(4) has manufactured or distributed drugs while providing authorized services to the 
397.23 	participant or while in the participant's home; or
397.24 	(5) has been excluded as a provider by the commissioner of human services, or the 
397.25 	United States Department of Health and Human Services, Office of Inspector General, 
397.26 	from participation in Medicaid, Medicare, or any other federal health care program.
397.27 	(c) A support worker may appeal in writing to the commissioner to contest the 
397.28 	decision to terminate the support worker's provider enrollment and provider number.
397.29 	(d) A support worker must not provide or be paid for more than 275 hours of 
397.30 	CFSS per month, regardless of the number of participants the support worker serves or 
397.31 	the number of agency-providers or participant employers by which the support worker 
397.32 	is employed. The department shall not disallow the number of hours per day a support 
397.33 	worker works unless it violates other law.

397.34 	Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
397.35 	a subdivision to read:
398.1 		Subd. 16a.Exception to support worker requirements for continuity of services.
 398.2 	The support worker for a participant may be allowed to enroll with a different CFSS 
398.3 	agency-provider or FMS contractor upon initiation, rather than completion, of a new 
398.4 	background study according to chapter 245C, if the following conditions are met:
398.5 	(1) the commissioner determines that the support worker's change in enrollment or 
398.6 	affiliation is needed to ensure continuity of services and protect the health and safety 
398.7 	of the participant;
398.8 	(2) the chosen agency-provider or FMS contractor has been continuously enrolled as 
398.9 	a CFSS agency-provider or FMS contractor for at least two years or since the inception of 
398.10 	the CFSS program, whichever is shorter;
398.11 	(3) the participant served by the support worker chooses to transfer to the CFSS 
398.12 	agency-provider or the FMS contractor to which the support worker is transferring;
398.13 	(4) the support worker has been continuously enrolled with the former CFSS 
398.14 	agency-provider or FMS contractor since the support worker's last background study 
398.15 	was completed; and
398.16 	(5) the support worker continues to meet requirements of subdivision 16, excluding 
398.17 	paragraph (a), clause (1). 

398.18 	Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17, 
398.19 	is amended to read:
398.20 		Subd. 17.Support specialist requirements and payments Consultation services 
398.21 	description and duties. The commissioner shall develop qualifications, scope of 
398.22 	functions, and payment rates and service limits for a support specialist that may provide 
398.23 	additional or specialized assistance necessary to plan, implement, arrange, augment, or 
398.24 	evaluate services and supports.
398.25 	(a) Consultation services means providing assistance to the participant in making 
398.26 	informed choices regarding CFSS services in general, and self-directed tasks in particular, 
398.27 	and in developing a person-centered service delivery plan to achieve quality service 
398.28 	outcomes.
398.29 	(b) Consultation services is a required service that may include but is not limited to:
398.30 	(1) an initial and annual orientation to CFSS information and policies, including 
398.31 	selecting a service model;
398.32 	(2) assistance with the development, implementation, management, and evaluation 
398.33 	of the person-centered service delivery plan;
398.34 	(3) consultation on recruiting, selecting, training, managing, directing, evaluating, 
398.35 	and supervising support workers;
399.1 	(4) reviewing the use of and access to informal and community supports, goods, or 
399.2 	resources;
399.3 	(5) assistance with fulfilling responsibilities and requirements of CFSS, including 
399.4 	modifying service delivery plans and changing service models; and
399.5 	(6) assistance with accessing FMS contractors or agency-providers.
399.6 	(c) Duties of a consultation services provider shall include but are not limited to:
399.7 	(1) review and finalization of the CFSS service delivery plan by the consultation 
399.8 	services provider organization;
399.9 	(2) distribution of copies of the final service delivery plan to the participant and 
399.10 	to the agency-provider or FMS contractor, case manager/care coordinator, and other 
399.11 	designated parties;
399.12 	(3) an evaluation of services upon receiving information from an FMS contractor 
399.13 	indicating spending or participant employer concerns;
399.14 	(4) a semiannual review of services if the participant does not have a case 
399.15 	manager/care coordinator and when the support worker is a paid parent of a minor 
399.16 	participant or the participant's spouse;
399.17 	(5) collection and reporting of data as required by the department; and
399.18 	(6) providing the participant with a copy of the service-related rights under 
399.19 	subdivision 20 at the start of consultation services.

399.20 	Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
399.21 	a subdivision to read:
399.22 		Subd. 17a.Consultation services provider qualifications and requirements.
 399.23 	The commissioner shall develop the qualifications and requirements for providers of 
399.24 	consultation services under subdivision 17. These providers must satisfy at least the 
399.25 	following qualifications and requirements:
399.26 	(1) are under contract with the department;
399.27 	(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the 
399.28 	CFSS or home and community-based services waiver agency-provider or vendor to the 
399.29 	participant, or a lead agency;
399.30 	(3) meet the service standards as established by the commissioner;
399.31 	(4) employ lead professional staff with a minimum of three years of experience 
399.32 	in providing support planning, support broker, or consultation services and consumer 
399.33 	education to participants using a self-directed program using FMS under medical 
399.34 	assistance;
400.1 	(5) are knowledgeable about CFSS roles and responsibilities including those of the 
400.2 	certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
400.3 	(6) comply with medical assistance provider requirements;
400.4 	(7) understand the CFSS program and its policies;
400.5 	(8) are knowledgeable about self-directed principles and the application of the 
400.6 	person-centered planning process;
400.7 	(9) have general knowledge of the FMS contractor duties and participant 
400.8 	employment model, including all applicable federal, state, and local laws and regulations 
400.9 	regarding tax, labor, employment, and liability and workers' compensation coverage for 
400.10 	household workers; and
400.11 	(10) have all employees, including lead professional staff, staff in management 
400.12 	and supervisory positions, and owners of the agency who are active in the day-to-day 
400.13 	management and operations of the agency, complete training as specified in the contract 
400.14 	with the department.

400.15 	Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18, 
400.16 	is amended to read:
400.17 		Subd. 18.Service unit and budget allocation requirements and limits. (a) For the 
400.18 	agency-provider model, services will be authorized in units of service. The total service 
400.19 	unit amount must be established based upon the assessed need for CFSS services, and must 
400.20 	not exceed the maximum number of units available as determined under subdivision 8.
400.21 	(b) For the budget model, the service budget allocation allowed for services and 
400.22 	supports is established by multiplying the number of units authorized under subdivision 8 
400.23 	by the payment rate established by the commissioner defined in subdivision 8, paragraph 
400.24 	(g).

400.25 	Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding 
400.26 	a subdivision to read:
400.27 		Subd. 18a.Worker training and development services. (a) The commissioner 
400.28 	shall develop the scope of tasks and functions, service standards, and service limits for 
400.29 	worker training and development services.
400.30 	(b) Worker training and development services are in addition to the participant's 
400.31 	assessed service units or service budget. Services provided according to this subdivision 
400.32 	must:
401.1 	(1) help support workers obtain and expand the skills and knowledge necessary to 
401.2 	ensure competency in providing quality services as needed and defined in the participant's 
401.3 	service delivery plan;
401.4 	(2) be provided or arranged for by the agency-provider under subdivision 11 or 
401.5 	purchased by the participant employer under the budget model under subdivision 13; and
401.6 	(3) be described in the participant's CFSS service delivery plan and documented in 
401.7 	the participant's file.
401.8 	(c) Services covered under worker training and development shall include:
401.9 	(1) support worker training on the participant's individual assessed needs, condition, 
401.10 	or both, provided individually or in a group setting by a skilled and knowledgeable trainer 
401.11 	beyond any training the participant or participant's representative provides;
401.12 	(2) tuition for professional classes and workshops for the participant's support 
401.13 	workers that relate to the participant's assessed needs, condition, or both;
401.14 	(3) direct observation, monitoring, coaching, and documentation of support worker 
401.15 	job skills and tasks, beyond any training the participant or participant's representative 
401.16 	provides, including supervision of health-related tasks or behavioral supports that is 
401.17 	conducted by an appropriate professional based on the participant's assessed needs. 
401.18 	These services must be provided within 14 days of the start of services or the start of a 
401.19 	new support worker except as provided in paragraph (d) and must be specified in the 
401.20 	participant's service delivery plan; and
401.21 	(4) reporting service and support concerns to the appropriate provider.
401.22 	(d) The services in paragraph (c), clause (3), are not required to be provided for a 
401.23 	new support worker providing services for a participant due to staffing failures, unless the 
401.24 	support worker is expected to provide ongoing backup staffing coverage.
401.25 	(e) Worker training and development services shall not include:
401.26 	(1) general agency training, worker orientation, or training on CFSS self-directed 
401.27 	models;
401.28 	(2) payment for preparation or development time for the trainer or presenter;
401.29 	(3) payment of the support worker's salary or compensation during the training;
401.30 	(4) training or supervision provided by the participant, the participant's support 
401.31 	worker, or the participant's informal supports, including the participant's representative; or
401.32 	(5) services in excess of 96 units per annual service authorization, unless approved 
401.33 	by the department.

401.34 	Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23, 
401.35 	is amended to read:
402.1 		Subd. 23.Commissioner's access. When the commissioner is investigating a 
402.2 	possible overpayment of Medicaid funds, the commissioner must be given immediate 
402.3 	access without prior notice to the agency provider agency-provider or FMS contractor's 
402.4 	office during regular business hours and to documentation and records related to services 
402.5 	provided and submission of claims for services provided. Denying the commissioner 
402.6 	access to records is cause for immediate suspension of payment and terminating the agency 
402.7 	provider's enrollment according to section 256B.064 or terminating the FMS contract.

402.8 	Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24, 
402.9 	is amended to read:
402.10 		Subd. 24.CFSS agency-providers; background studies. CFSS agency-providers 
402.11 	enrolled to provide personal care assistance CFSS services under the medical assistance 
402.12 	program shall comply with the following:
402.13 	(1) owners who have a five percent interest or more and all managing employees 
402.14 	are subject to a background study as provided in chapter 245C. This applies to currently 
402.15 	enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS 
402.16 	agency-provider. "Managing employee" has the same meaning as Code of Federal 
402.17 	Regulations, title 42, section 455. An organization is barred from enrollment if:
402.18 	(i) the organization has not initiated background studies on owners managing 
402.19 	employees; or
402.20 	(ii) the organization has initiated background studies on owners and managing 
402.21 	employees, but the commissioner has sent the organization a notice that an owner or 
402.22 	managing employee of the organization has been disqualified under section 245C.14, and 
402.23 	the owner or managing employee has not received a set-aside of the disqualification 
402.24 	under section 245C.22;
402.25 	(2) a background study must be initiated and completed for all support specialists
402.26 	 staff who will have direct contact with the participant to provide worker training and 
402.27 	development; and
402.28 	(3) a background study must be initiated and completed for all support workers.

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

402.31 	EFFECTIVE DATE. This section is effective upon federal approval but no earlier 
402.32 	than April 1, 2014. The service will begin 90 days after federal approval or April 1, 
402.33 	2014, whichever is later. The commissioner of human services shall notify the revisor of 
402.34 	statutes when this occurs.

403.1 	ARTICLE 27
403.2 	CONTINUING CARE

403.3 	Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
403.4 		Subd. 4.Licensing data. (a) As used in this subdivision:
403.5 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
403.6 	welfare system pertaining to persons licensed or registered or who apply for licensure 
403.7 	or registration or who formerly were licensed or registered under the authority of the 
403.8 	commissioner of human services;
403.9 	(2) "client" means a person who is receiving services from a licensee or from an 
403.10 	applicant for licensure; and
403.11 	(3) "personal and personal financial data" are Social Security numbers, identity 
403.12 	of and letters of reference, insurance information, reports from the Bureau of Criminal 
403.13 	Apprehension, health examination reports, and social/home studies.
403.14 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, 
403.15 	license holders, and former licensees are public: name, address, telephone number of 
403.16 	licensees, date of receipt of a completed application, dates of licensure, licensed capacity, 
403.17 	type of client preferred, variances granted, record of training and education in child care 
403.18 	and child development, type of dwelling, name and relationship of other family members, 
403.19 	previous license history, class of license, the existence and status of complaints, and the 
403.20 	number of serious injuries to or deaths of individuals in the licensed program as reported 
403.21 	to the commissioner of human services, the local social services agency, or any other 
403.22 	county welfare agency. For purposes of this clause, a serious injury is one that is treated 
403.23 	by a physician.
403.24 	(ii) When a correction order, an order to forfeit a fine, an order of license suspension, 
403.25 	an order of temporary immediate suspension, an order of license revocation, an order 
403.26 	of license denial, or an order of conditional license has been issued, or a complaint is 
403.27 	resolved, the following data on current and former licensees and applicants are public: the 
403.28 	substance and investigative findings of the licensing or maltreatment complaint, licensing 
403.29 	violation, or substantiated maltreatment; the record of informal resolution of a licensing 
403.30 	violation; orders of hearing; findings of fact; conclusions of law; specifications of the final 
403.31 	correction order, fine, suspension, temporary immediate suspension, revocation, denial, or 
403.32 	conditional license contained in the record of licensing action; whether a fine has been 
403.33 	paid; and the status of any appeal of these actions.
403.34 	(iii) When a license denial under section 245A.05 or a sanction under section 
403.35 	245A.07 is based on a determination that the license holder or applicant is responsible for 
404.1 	maltreatment under section 626.556 or 626.557, the identity of the applicant or license 
404.2 	holder as the individual responsible for maltreatment is public data at the time of the 
404.3 	issuance of the license denial or sanction.
404.4 	(iv) When a license denial under section 245A.05 or a sanction under section 
404.5 	245A.07 is based on a determination that the license holder or applicant is disqualified 
404.6 	under chapter 245C, the identity of the license holder or applicant as the disqualified 
404.7 	individual and the reason for the disqualification are public data at the time of the 
404.8 	issuance of the licensing sanction or denial. If the applicant or license holder requests 
404.9 	reconsideration of the disqualification and the disqualification is affirmed, the reason for 
404.10 	the disqualification and the reason to not set aside the disqualification are public data.
404.11 	(2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b, 
404.12 	when any person subject to disqualification under section 245C.14 in connection with a 
404.13 	license to provide family day care for children, child care center services, foster care for 
404.14 	children in the provider's home, or foster care or day care services for adults in the provider's 
404.15 	home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is 
404.16 	a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment 
404.17 	is public data. For purposes of this clause, a person is a substantiated perpetrator if the 
404.18 	maltreatment determination has been upheld under section 256.045; 626.556, subdivision 
404.19 	10i; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely 
404.20 	exercised appeal rights under these sections, except as provided under clause (1).
404.21 	(3) For applicants who withdraw their application prior to licensure or denial of a 
404.22 	license, the following data are public: the name of the applicant, the city and county in 
404.23 	which the applicant was seeking licensure, the dates of the commissioner's receipt of the 
404.24 	initial application and completed application, the type of license sought, and the date 
404.25 	of withdrawal of the application.
404.26 	(4) For applicants who are denied a license, the following data are public: the name 
404.27 	and address of the applicant, the city and county in which the applicant was seeking 
404.28 	licensure, the dates of the commissioner's receipt of the initial application and completed 
404.29 	application, the type of license sought, the date of denial of the application, the nature of 
404.30 	the basis for the denial, the record of informal resolution of a denial, orders of hearings, 
404.31 	findings of fact, conclusions of law, specifications of the final order of denial, and the 
404.32 	status of any appeal of the denial.
404.33 	(5) The following data on persons subject to disqualification under section 245C.14 in 
404.34 	connection with a license to provide family day care for children, child care center services, 
404.35 	foster care for children in the provider's home, or foster care or day care services for adults 
404.36 	in the provider's home, are public: the nature of any disqualification set aside under section 
405.1 	245C.22, subdivisions 2 and 4, and the reasons for setting aside the disqualification; the 
405.2 	nature of any disqualification for which a variance was granted under sections 245A.04, 
405.3 	subdivision 9; and 245C.30, and the reasons for granting any variance under section 
405.4 	245A.04, subdivision 9; and, if applicable, the disclosure that any person subject to 
405.5 	a background study under section 245C.03, subdivision 1, has successfully passed a 
405.6 	background study. If a licensing sanction under section 245A.07, or a license denial under 
405.7 	section 245A.05, is based on a determination that an individual subject to disqualification 
405.8 	under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction 
405.9 	or denial is public data. As specified in clause (1), item (iv), if the disqualified individual 
405.10 	is the license holder or applicant, the identity of the license holder or applicant and the 
405.11 	reason for the disqualification are public data; and, if the license holder or applicant 
405.12 	requested reconsideration of the disqualification and the disqualification is affirmed, the 
405.13 	reason for the disqualification and the reason to not set aside the disqualification are 
405.14 	public data. If the disqualified individual is an individual other than the license holder or 
405.15 	applicant, the identity of the disqualified individual shall remain private data.
405.16 	(6) When maltreatment is substantiated under section 626.556 or 626.557 and the 
405.17 	victim and the substantiated perpetrator are affiliated with a program licensed under 
405.18 	chapter 245A, the commissioner of human services, local social services agency, or 
405.19 	county welfare agency may inform the license holder where the maltreatment occurred of 
405.20 	the identity of the substantiated perpetrator and the victim.
405.21 	(7) Notwithstanding clause (1), for child foster care, only the name of the license 
405.22 	holder and the status of the license are public if the county attorney has requested that data 
405.23 	otherwise classified as public data under clause (1) be considered private data based on the 
405.24 	best interests of a child in placement in a licensed program.
405.25 	(c) The following are private data on individuals under section 13.02, subdivision 
405.26 	12, or nonpublic data under section 13.02, subdivision 9: personal and personal financial 
405.27 	data on family day care program and family foster care program applicants and licensees 
405.28 	and their family members who provide services under the license.
405.29 	(d) The following are private data on individuals: the identity of persons who have 
405.30 	made reports concerning licensees or applicants that appear in inactive investigative data, 
405.31 	and the records of clients or employees of the licensee or applicant for licensure whose 
405.32 	records are received by the licensing agency for purposes of review or in anticipation of a 
405.33 	contested matter. The names of reporters of complaints or alleged violations of licensing 
405.34 	standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged 
405.35 	maltreatment under sections 626.556 and 626.557, are confidential data and may be 
405.36 	disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
406.1 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under 
406.2 	this subdivision become public data if submitted to a court or administrative law judge as 
406.3 	part of a disciplinary proceeding in which there is a public hearing concerning a license 
406.4 	which has been suspended, immediately suspended, revoked, or denied.
406.5 	(f) Data generated in the course of licensing investigations that relate to an alleged 
406.6 	violation of law are investigative data under subdivision 3.
406.7 	(g) Data that are not public data collected, maintained, used, or disseminated under 
406.8 	this subdivision that relate to or are derived from a report as defined in section 626.556, 
406.9 	subdivision 2, or 626.5572, subdivision 18, are subject to the destruction provisions of 
406.10 	sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
406.11 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
406.12 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
406.13 	defined in section 626.556 or 626.557 may be exchanged with the Department of Health 
406.14 	for purposes of completing background studies pursuant to section 144.057 and with 
406.15 	the Department of Corrections for purposes of completing background studies pursuant 
406.16 	to section 241.021.
406.17 	(i) Data on individuals collected according to licensing activities under chapters 
406.18 	245A and 245C, data on individuals collected by the commissioner of human services 
406.19 	according to investigations under chapters 245A, 245B, and 245C, and 245D, and 
406.20 	sections 626.556 and 626.557 may be shared with the Department of Human Rights, the 
406.21 	Department of Health, the Department of Corrections, the ombudsman for mental health 
406.22 	and developmental disabilities, and the individual's professional regulatory board when 
406.23 	there is reason to believe that laws or standards under the jurisdiction of those agencies may 
406.24 	have been violated or the information may otherwise be relevant to the board's regulatory 
406.25 	jurisdiction. Background study data on an individual who is the subject of a background 
406.26 	study under chapter 245C for a licensed service for which the commissioner of human 
406.27 	services is the license holder may be shared with the commissioner and the commissioner's 
406.28 	delegate by the licensing division. Unless otherwise specified in this chapter, the identity 
406.29 	of a reporter of alleged maltreatment or licensing violations may not be disclosed.
406.30 	(j) In addition to the notice of determinations required under section 626.556, 
406.31 	subdivision 10f, if the commissioner or the local social services agency has determined 
406.32 	that an individual is a substantiated perpetrator of maltreatment of a child based on sexual 
406.33 	abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social 
406.34 	services agency knows that the individual is a person responsible for a child's care in 
406.35 	another facility, the commissioner or local social services agency shall notify the head 
406.36 	of that facility of this determination. The notification must include an explanation of the 
407.1 	individual's available appeal rights and the status of any appeal. If a notice is given under 
407.2 	this paragraph, the government entity making the notification shall provide a copy of the 
407.3 	notice to the individual who is the subject of the notice.
407.4 	(k) All not public data collected, maintained, used, or disseminated under this 
407.5 	subdivision and subdivision 3 may be exchanged between the Department of Human 
407.6 	Services, Licensing Division, and the Department of Corrections for purposes of 
407.7 	regulating services for which the Department of Human Services and the Department 
407.8 	of Corrections have regulatory authority.

407.9 	Sec. 2. Minnesota Statutes 2012, section 144.0724, as amended by Laws 2014, chapter 
407.10 	147, section 1, is amended to read:
407.11 	144.0724 RESIDENT REIMBURSEMENT CLASSIFICATION.
407.12 		Subdivision 1.Resident reimbursement case mix classifications. The 
407.13 	commissioner of health shall establish resident reimbursement classifications based upon 
407.14 	the assessments of residents of nursing homes and boarding care homes conducted under 
407.15 	this section and according to section 256B.438. 
407.16 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
407.17 	meanings given.
407.18 	(a) "Assessment reference date" or "ARD" means the specific end point for 
407.19 	look-back periods in the MDS assessment process. This look-back period is also called 
407.20 	the observation or assessment period.
407.21 	(b) "Case mix index" means the weighting factors assigned to the RUG-IV 
407.22 	classifications.
407.23 	(c) "Index maximization" means classifying a resident who could be assigned to 
407.24 	more than one category, to the category with the highest case mix index.
407.25 	(d) "Minimum data set" or "MDS" means a core set of screening, clinical assessment, 
407.26 	and functional status elements, that include common definitions and coding categories 
407.27 	specified by the Centers for Medicare and Medicaid Services and designated by the 
407.28 	Minnesota Department of Health.
407.29 	(e) "Representative" means a person who is the resident's guardian or conservator, 
407.30 	the person authorized to pay the nursing home expenses of the resident, a representative of 
407.31 	the Office of Ombudsman for Long-Term Care whose assistance has been requested, or 
407.32 	any other individual designated by the resident.
407.33 	(f) "Resource utilization groups" or "RUG" means the system for grouping a nursing 
407.34 	facility's residents according to their clinical and functional status identified in data 
407.35 	supplied by the facility's minimum data set.
408.1 	(g) "Activities of daily living" means grooming, dressing, bathing, transferring, 
408.2 	mobility, positioning, eating, and toileting.
408.3 	(h) "Nursing facility level of care determination" means the assessment process 
408.4 	that results in a determination of a resident's or prospective resident's need for nursing 
408.5 	facility level of care as established in subdivision 11 for purposes of medical assistance 
408.6 	payment of long-term care services for:
408.7 	(1) nursing facility services under section 256B.434 or 256B.441;
408.8 	(2) elderly waiver services under section 256B.0915;
408.9 	(3) CADI and BI waiver services under section 256B.49; and
408.10 	(4) state payment of alternative care services under section 256B.0913.
408.11 		Subd. 3a.Resident reimbursement classifications beginning January 1, 2012.
 408.12 	(a) Beginning January 1, 2012, resident reimbursement classifications shall be based 
408.13 	on the minimum data set, version 3.0 assessment instrument, or its successor version 
408.14 	mandated by the Centers for Medicare and Medicaid Services that nursing facilities are 
408.15 	required to complete for all residents. The commissioner of health shall establish resident 
408.16 	classifications according to the RUG-IV, 48 group, resource utilization groups. Resident 
408.17 	classification must be established based on the individual items on the minimum data set, 
408.18 	which must be completed according to the Long Term Care Facility Resident Assessment 
408.19 	Instrument User's Manual Version 3.0 or its successor issued by the Centers for Medicare 
408.20 	and Medicaid Services.
408.21 	(b) Each resident must be classified based on the information from the minimum 
408.22 	data set according to general categories as defined in the Case Mix Classification Manual 
408.23 	for Nursing Facilities issued by the Minnesota Department of Health.
408.24 		Subd. 4.Resident assessment schedule. (a) A facility must conduct and 
408.25 	electronically submit to the commissioner of health MDS assessments that conform with 
408.26 	the assessment schedule defined by Code of Federal Regulations, title 42, section 483.20, 
408.27 	and published by the United States Department of Health and Human Services, Centers for 
408.28 	Medicare and Medicaid Services, in the Long Term Care Assessment Instrument User's 
408.29 	Manual, version 3.0, and subsequent updates when issued by the Centers for Medicare 
408.30 	and Medicaid Services. The commissioner of health may substitute successor manuals or 
408.31 	question and answer documents published by the United States Department of Health and 
408.32 	Human Services, Centers for Medicare and Medicaid Services, to replace or supplement 
408.33 	the current version of the manual or document.
408.34 	(b) The assessments used to determine a case mix classification for reimbursement 
408.35 	include the following:
408.36 	(1) a new admission assessment;
409.1 	(2) an annual assessment which must have an assessment reference date (ARD) 
409.2 	within 92 days of the previous assessment and within 366 days of the ARD of the previous 
409.3 	comprehensive assessment;
409.4 	(3) a significant change in status assessment must be completed within 14 days of 
409.5 	the identification of a significant change; 
409.6 	(4) all quarterly assessments must have an assessment reference date (ARD) within 
409.7 	92 days of the ARD of the previous assessment;
409.8 	(5) any significant correction to a prior comprehensive assessment, if the assessment 
409.9 	being corrected is the current one being used for RUG classification; and
409.10 	(6) any significant correction to a prior quarterly assessment, if the assessment being 
409.11 	corrected is the current one being used for RUG classification.
409.12 	(c) In addition to the assessments listed in paragraph (b), the assessments used to 
409.13 	determine nursing facility level of care include the following:
409.14 	(1) preadmission screening completed under section 256B.0911, subdivision 4a, 
409.15 	by a county, tribe, or managed care organization under contract with the Department 
409.16 	of Human Services; and
409.17 	(2) a face-to-face long-term care consultation assessment completed under section 
409.18 	256B.0911, subdivision 3a, 3b, or 4d 256.975, subdivisions 7a to 7c, by a county, tribe, or 
409.19 	managed care organization under contract with the Department of Human Services.
409.20 		Subd. 5.Short stays. (a) A facility must submit to the commissioner of health an 
409.21 	admission assessment for all residents who stay in the facility 14 days or less.
409.22 	(b) Notwithstanding the admission assessment requirements of paragraph (a), a 
409.23 	facility may elect to accept a short stay rate with a case mix index of 1.0 for all facility 
409.24 	residents who stay 14 days or less in lieu of submitting an admission assessment. Facilities 
409.25 	shall make this election annually.
409.26 	(c) Nursing facilities must elect one of the options described in paragraphs (a) and 
409.27 	(b) by reporting to the commissioner of health, as prescribed by the commissioner. The 
409.28 	election is effective on July 1 each year.
409.29 		Subd. 6.Penalties for late or nonsubmission. (a) A facility that fails to complete 
409.30 	or submit an assessment according to subdivisions 4 and 5 for a RUG-IV classification 
409.31 	within seven days of the time requirements listed in the Long-Term Care Facility Resident 
409.32 	Assessment Instrument User's Manual is subject to a reduced rate for that resident. The 
409.33 	reduced rate shall be the lowest rate for that facility. The reduced rate is effective on the 
409.34 	day of admission for new admission assessments, on the ARD for significant change in 
409.35 	status assessments, or on the day that the assessment was due for all other assessments and 
410.1 	continues in effect until the first day of the month following the date of submission and 
410.2 	acceptance of the resident's assessment.
410.3 	(b) If loss of revenue due to penalties incurred by a facility for any period of 92 days 
410.4 	are equal to or greater than 1.0 percent of the total operating costs on the facility's most 
410.5 	recent annual statistical and cost report, a facility may apply to the commissioner of 
410.6 	human services for a reduction in the total penalty amount. The commissioner of human 
410.7 	services, in consultation with the commissioner of health, may, at the sole discretion of 
410.8 	the commissioner of human services, limit the penalty for residents covered by medical 
410.9 	assistance to 15 days.
410.10 		Subd. 7.Notice of resident reimbursement classification. (a) The commissioner 
410.11 	of health shall provide to a nursing facility a notice for each resident of the reimbursement 
410.12 	classification established under subdivision 1. The notice must inform the resident of the 
410.13 	classification that was assigned, the opportunity to review the documentation supporting 
410.14 	the classification, the opportunity to obtain clarification from the commissioner, and the 
410.15 	opportunity to request a reconsideration of the classification and the address and telephone 
410.16 	number of the Office of Ombudsman for Long-Term Care. The commissioner must 
410.17 	transmit the notice of resident classification by electronic means to the nursing facility. 
410.18 	A nursing facility is responsible for the distribution of the notice to each resident, to the 
410.19 	person responsible for the payment of the resident's nursing home expenses, or to another 
410.20 	person designated by the resident. This notice must be distributed within three working 
410.21 	days after the facility's receipt of the electronic file of notice of case mix classifications 
410.22 	from the commissioner of health.
410.23 	(b) If a facility submits a modification to the most recent assessment used to establish 
410.24 	a case mix classification conducted under subdivision 3 that results in a change in case 
410.25 	mix classification, the facility shall give written notice to the resident or the resident's 
410.26 	representative about the item that was modified and the reason for the modification. The 
410.27 	notice of modified assessment may be provided at the same time that the resident or 
410.28 	resident's representative is provided the resident's modified notice of classification.
410.29 		Subd. 8.Request for reconsideration of resident classifications. (a) The resident, 
410.30 	or resident's representative, or the nursing facility or boarding care home may request that 
410.31 	the commissioner of health reconsider the assigned reimbursement classification. The 
410.32 	request for reconsideration must be submitted in writing to the commissioner within 
410.33 	30 days of the day the resident or the resident's representative receives the resident 
410.34 	classification notice. The request for reconsideration must include the name of the 
410.35 	resident, the name and address of the facility in which the resident resides, the reasons 
410.36 	for the reconsideration, and documentation supporting the request. The documentation 
411.1 	accompanying the reconsideration request is limited to a copy of the MDS that determined 
411.2 	the classification and other documents that would support or change the MDS findings.
411.3 	(b) Upon request, the nursing facility must give the resident or the resident's 
411.4 	representative a copy of the assessment form and the other documentation that was given 
411.5 	to the commissioner of health to support the assessment findings. The nursing facility 
411.6 	shall also provide access to and a copy of other information from the resident's record that 
411.7 	has been requested by or on behalf of the resident to support a resident's reconsideration 
411.8 	request. A copy of any requested material must be provided within three working days of 
411.9 	receipt of a written request for the information. Notwithstanding any law to the contrary, 
411.10 	the facility may not charge a fee for providing copies of the requested documentation. 
411.11 	If a facility fails to provide the material within this time, it is subject to the issuance 
411.12 	of a correction order and penalty assessment under sections 144.653 and 144A.10. 
411.13 	Notwithstanding those sections, any correction order issued under this subdivision must 
411.14 	require that the nursing facility immediately comply with the request for information and 
411.15 	that as of the date of the issuance of the correction order, the facility shall forfeit to the 
411.16 	state a $100 fine for the first day of noncompliance, and an increase in the $100 fine by 
411.17 	$50 increments for each day the noncompliance continues.
411.18 	(c) In addition to the information required under paragraphs (a) and (b), a 
411.19 	reconsideration request from a nursing facility must contain the following information: (i) 
411.20 	the date the reimbursement classification notices were received by the facility; (ii) the date 
411.21 	the classification notices were distributed to the resident or the resident's representative; 
411.22 	and (iii) a copy of a notice sent to the resident or to the resident's representative. This 
411.23 	notice must inform the resident or the resident's representative that a reconsideration 
411.24 	of the resident's classification is being requested, the reason for the request, that the 
411.25 	resident's rate will change if the request is approved by the commissioner, the extent of the 
411.26 	change, that copies of the facility's request and supporting documentation are available 
411.27 	for review, and that the resident also has the right to request a reconsideration. If the 
411.28 	facility fails to provide the required information listed in item (iii) with the reconsideration 
411.29 	request, the commissioner may request that the facility provide the information within 14 
411.30 	calendar days. The reconsideration request must be denied if the information is then not 
411.31 	provided, and the facility may not make further reconsideration requests on that specific 
411.32 	reimbursement classification.
411.33 	(d) Reconsideration by the commissioner must be made by individuals not 
411.34 	involved in reviewing the assessment, audit, or reconsideration that established the 
411.35 	disputed classification. The reconsideration must be based upon the assessment that 
411.36 	determined the classification and upon the information provided to the commissioner 
412.1 	under paragraphs (a) and (b). If necessary for evaluating the reconsideration request, the 
412.2 	commissioner may conduct on-site reviews. Within 15 working days of receiving the 
412.3 	request for reconsideration, the commissioner shall affirm or modify the original resident 
412.4 	classification. The original classification must be modified if the commissioner determines 
412.5 	that the assessment resulting in the classification did not accurately reflect characteristics 
412.6 	of the resident at the time of the assessment. The resident and the nursing facility or 
412.7 	boarding care home shall be notified within five working days after the decision is made. 
412.8 	A decision by the commissioner under this subdivision is the final administrative decision 
412.9 	of the agency for the party requesting reconsideration.
412.10 	(e) The resident classification established by the commissioner shall be the 
412.11 	classification that applies to the resident while the request for reconsideration is pending. 
412.12 	If a request for reconsideration applies to an assessment used to determine nursing facility 
412.13 	level of care under subdivision 4, paragraph (c), the resident shall continue to be eligible 
412.14 	for nursing facility level of care while the request for reconsideration is pending.
412.15 	(f) The commissioner may request additional documentation regarding a 
412.16 	reconsideration necessary to make an accurate reconsideration determination.
412.17 		Subd. 9.Audit authority. (a) The commissioner shall audit the accuracy of resident 
412.18 	assessments performed under section 256B.438 through any of the following: desk 
412.19 	audits; on-site review of residents and their records; and interviews with staff, residents, 
412.20 	or residents' families. The commissioner shall reclassify a resident if the commissioner 
412.21 	determines that the resident was incorrectly classified.
412.22 	(b) The commissioner is authorized to conduct on-site audits on an unannounced 
412.23 	basis.
412.24 	(c) A facility must grant the commissioner access to examine the medical records 
412.25 	relating to the resident assessments selected for audit under this subdivision. The 
412.26 	commissioner may also observe and speak to facility staff and residents.
412.27 	(d) The commissioner shall consider documentation under the time frames for 
412.28 	coding items on the minimum data set as set out in the Long-Term Care Facility Resident 
412.29 	Assessment Instrument User's Manual published by the Centers for Medicare and 
412.30 	Medicaid Services.
412.31 	(e) The commissioner shall develop an audit selection procedure that includes the 
412.32 	following factors:
412.33 	(1) Each facility shall be audited annually. If a facility has two successive audits in 
412.34 	which the percentage of change is five percent or less and the facility has not been the 
412.35 	subject of a special audit in the past 36 months, the facility may be audited biannually. 
412.36 	A stratified sample of 15 percent, with a minimum of ten assessments, of the most 
413.1 	current assessments shall be selected for audit. If more than 20 percent of the RUG-IV 
413.2 	classifications are changed as a result of the audit, the audit shall be expanded to a second 
413.3 	15 percent sample, with a minimum of ten assessments. If the total change between 
413.4 	the first and second samples is 35 percent or greater, the commissioner may expand the 
413.5 	audit to all of the remaining assessments.
413.6 	(2) If a facility qualifies for an expanded audit, the commissioner may audit the 
413.7 	facility again within six months. If a facility has two expanded audits within a 24-month 
413.8 	period, that facility will be audited at least every six months for the next 18 months.
413.9 	(3) The commissioner may conduct special audits if the commissioner determines 
413.10 	that circumstances exist that could alter or affect the validity of case mix classifications of 
413.11 	residents. These circumstances include, but are not limited to, the following:
413.12 	(i) frequent changes in the administration or management of the facility;
413.13 	(ii) an unusually high percentage of residents in a specific case mix classification;
413.14 	(iii) a high frequency in the number of reconsideration requests received from 
413.15 	a facility;
413.16 	(iv) frequent adjustments of case mix classifications as the result of reconsiderations 
413.17 	or audits;
413.18 	(v) a criminal indictment alleging provider fraud; 
413.19 	(vi) other similar factors that relate to a facility's ability to conduct accurate 
413.20 	assessments;
413.21 	(vii) an atypical pattern of scoring minimum data set items;
413.22 	(viii) nonsubmission of assessments;
413.23 	(ix) late submission of assessments; or
413.24 	(x) a previous history of audit changes of 35 percent or greater.
413.25 	(f) Within 15 working days of completing the audit process, the commissioner shall 
413.26 	make available electronically the results of the audit to the facility. If the results of the 
413.27 	audit reflect a change in the resident's case mix classification, a case mix classification 
413.28 	notice will be made available electronically to the facility, using the procedure in 
413.29 	subdivision 7, paragraph (a). The notice must contain the resident's classification and a 
413.30 	statement informing the resident, the resident's authorized representative, and the facility 
413.31 	of their right to review the commissioner's documents supporting the classification and to 
413.32 	request a reconsideration of the classification. This notice must also include the address 
413.33 	and telephone number of the Office of Ombudsman for Long-Term Care.
413.34 		Subd. 10.Transition. After implementation of this section, reconsiderations 
413.35 	requested for classifications made under section 144.0722, subdivision 1, shall be 
413.36 	determined under section 144.0722, subdivision 3.
414.1 		Subd. 11.Nursing facility level of care. (a) For purposes of medical assistance 
414.2 	payment of long-term care services, a recipient must be determined, using assessments 
414.3 	defined in subdivision 4, to meet one of the following nursing facility level of care criteria:
414.4 	(1) the person requires formal clinical monitoring at least once per day;
414.5 	(2) the person needs the assistance of another person or constant supervision to begin 
414.6 	and complete at least four of the following activities of living: bathing, bed mobility, 
414.7 	dressing, eating, grooming, toileting, transferring, and walking;
414.8 	(3) the person needs the assistance of another person or constant supervision to begin 
414.9 	and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
414.10 	(4) the person has significant difficulty with memory, using information, daily 
414.11 	decision making, or behavioral needs that require intervention;
414.12 	(5) the person has had a qualifying nursing facility stay of at least 90 days;
414.13 	(6) the person meets the nursing facility level of care criteria determined 90 days 
414.14 	after admission or on the first quarterly assessment after admission, whichever is later; or
414.15 	(7) the person is determined to be at risk for nursing facility admission or readmission 
414.16 	through a face-to-face long-term care consultation assessment as specified in section 
414.17 	256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or managed care organization 
414.18 	under contract with the Department of Human Services. The person is considered at risk 
414.19 	under this clause if the person currently lives alone or will live alone upon discharge or be 
414.20 	homeless without the person's current housing and also meets one of the following criteria:
414.21 	(i) the person has experienced a fall resulting in a fracture;
414.22 	(ii) the person has been determined to be at risk of maltreatment or neglect, 
414.23 	including self-neglect; or
414.24 	(iii) the person has a sensory impairment that substantially impacts functional ability 
414.25 	and maintenance of a community residence.
414.26 	(b) The assessment used to establish medical assistance payment for nursing facility 
414.27 	services must be the most recent assessment performed under subdivision 4, paragraph 
414.28 	(b), that occurred no more than 90 calendar days before the effective date of medical 
414.29 	assistance eligibility for payment of long-term care services. In no case shall medical 
414.30 	assistance payment for long-term care services occur prior to the date of the determination 
414.31 	of nursing facility level of care.
414.32 	(c) The assessment used to establish medical assistance payment for long-term care 
414.33 	services provided under sections 256B.0915 and 256B.49 and alternative care payment 
414.34 	for services provided under section 256B.0913 must be the most recent face-to-face 
414.35 	assessment performed under section 256B.0911, subdivision 3a, 3b, or 4d, that occurred 
415.1 	no more than 60 calendar days before the effective date of medical assistance eligibility 
415.2 	for payment of long-term care services.
415.3 		Subd. 12.Appeal of nursing facility level of care determination. (a) A resident or 
415.4 	prospective resident whose level of care determination results in a denial of long-term care 
415.5 	services can appeal the determination as outlined in section 256B.0911, subdivision 3a, 
415.6 	paragraph (h), clause (9).
415.7 	(b) The commissioner of human services shall ensure that notice of changes in 
415.8 	eligibility due to a nursing facility level of care determination is provided to each affected 
415.9 	recipient or the recipient's guardian at least 30 days before the effective date of the change. 
415.10 	The notice shall include the following information:
415.11 	(1) how to obtain further information on the changes;
415.12 	(2) how to receive assistance in obtaining other services;
415.13 	(3) a list of community resources; and
415.14 	(4) appeal rights.
415.15 	A recipient who meets the criteria in section 256B.0922, subdivision 2, paragraph (a), 
415.16 	clauses (1) and (2), may request continued services pending appeal within the time period 
415.17 	allowed to request an appeal under section 256.045, subdivision 3, paragraph (h). This 
415.18 	paragraph is in effect for appeals filed between January 1, 2015, and December 31, 2016.

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

415.20 	Sec. 3. Minnesota Statutes 2012, section 144A.073, is amended by adding a 
415.21 	subdivision to read:
415.22 		Subd. 14.Moratorium exception funding. In fiscal year 2015, the commissioner 
415.23 	of health may approve moratorium exception projects under this section for which the full 
415.24 	annualized state share of medical assistance costs does not exceed $1,000,000.

415.25 	Sec. 4. Minnesota Statutes 2012, section 144A.33, subdivision 2, is amended to read:
415.26 		Subd. 2.Providing educational services. The Minnesota Board on Aging shall 
415.27 	provide a grant-in-aid to a statewide, independent, nonprofit, consumer-sponsored agency 
415.28 	to provide educational services to councils.

415.29 	Sec. 5. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
415.30 	245.8251 RULES FOR POSITIVE SUPPORT STRATEGIES AND 
415.31 	EMERGENCY MANUAL RESTRAINT PROHIBITIONS AND LIMITS ON 
415.32 	RESTRICTIVE INTERVENTIONS; LICENSED FACILITIES AND PROGRAMS.
416.1 		Subdivision 1.Rules governing the use of positive support strategies and 
416.2 	restrictive interventions. The commissioner of human services shall, within 24 months 
416.3 	of May 23, 2013 by August 31, 2015, adopt rules governing to govern the use of positive 
416.4 	support strategies, safety interventions, and ensure the applicability of chapter 245D 
416.5 	prohibitions and limits on the emergency use of manual restraint inand on the use of 
416.6 	restrictive interventions to facilities and services governed by the rules. The rules apply 
416.7 	to all facilities and services licensed under chapter 245D., and all licensed facilities and 
416.8 	licensed services serving persons with a developmental disability or related condition. 
416.9 	For the purposes of this section, "developmental disability or related condition" has the 
416.10 	meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
416.11 		Subd. 2.Data collection. (a) The commissioner shall, with stakeholder input, 
416.12 	develop identify data collection elements specific to incidents of emergency use of 
416.13 	manual restraint and positive support transition plans for persons receiving services from 
416.14 	providers governed licensed facilities and licensed services  under chapter 245D and in 
416.15 	licensed facilities and licensed services serving persons with a developmental disability 
416.16 	or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective 
416.17 	January 1, 2014. Providers Licensed facilities and licensed services shall report the data in 
416.18 	a format and at a frequency determined by the commissioner of human services. Providers 
416.19 	shall submit the data to the commissioner and the Office of the Ombudsman for Mental 
416.20 	Health and Developmental Disabilities.
416.21 	(b) Beginning July 1, 2013, providers licensed facilities and licensed services
416.22 	 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data 
416.23 	regarding the use of all controlled procedures identified in Minnesota Rules, part 
416.24 	9525.2740, in a format and at a frequency determined by the commissioner. Providers 
416.25 	shall submit the data to the commissioner and the Office of the Ombudsman for Mental 
416.26 	Health and Developmental Disabilities.
416.27 		Subd. 3.External program review committee. Rules adopted according to this 
416.28 	section shall establish requirements for an external program review committee appointed by 
416.29 	the commissioner to monitor the implementation of the rules and make recommendations 
416.30 	to the commissioner about any needed policy changes after adoption of the rules.
416.31 		Subd. 4.Interim review panel. (a) The commissioner shall establish an interim 
416.32 	review panel by August 15, 2014, for the purpose of reviewing requests for emergency 
416.33 	use of procedures that have been part of an approved positive support transition plan 
416.34 	when necessary to protect a person from imminent risk of serious injury as defined in 
416.35 	section 245.91, subdivision 6, due to self-injurious behavior. The panel must make 
416.36 	recommendations to the commissioner to approve or deny these requests based on criteria 
417.1 	to be established by the interim review panel. The interim review panel shall operate until 
417.2 	the external program review committee is established as required under subdivision 3.
417.3 	(b) Members of the interim review panel shall be selected based on their expertise 
417.4 	and knowledge related to the use of positive support strategies as alternatives to the use 
417.5 	of restrictive interventions. The commissioner shall seek input and recommendations in 
417.6 	establishing the interim review panel. Members of the interim review panel shall include 
417.7 	the following representatives:
417.8 	(1) an expert in positive supports;
417.9 	(2) a mental health professional, as defined in section 245.462;
417.10 	(3) a licensed health professional as defined in section 245D.02, subdivision 14; and
417.11 	(4) a representative of the Department of Health.

417.12 	Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is 
417.13 	amended to read:
417.14 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an initial 
417.15 	license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, 
417.16 	or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under 
417.17 	this chapter for a physical location that will not be the primary residence of the license 
417.18 	holder for the entire period of licensure. If a license is issued during this moratorium, and 
417.19 	the license holder changes the license holder's primary residence away from the physical 
417.20 	location of the foster care license, the commissioner shall revoke the license according 
417.21 	to section 245A.07. The commissioner shall not issue an initial license for a community 
417.22 	residential setting licensed under chapter 245D. Exceptions to the moratorium include:
417.23 	(1) foster care settings that are required to be registered under chapter 144D;
417.24 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 
417.25 	community residential setting licenses replacing adult foster care licenses in existence on 
417.26 	December 31, 2013, and determined to be needed by the commissioner under paragraph (b);
417.27 	(3) new foster care licenses or community residential setting licenses determined to 
417.28 	be needed by the commissioner under paragraph (b) for the closure of a nursing facility, 
417.29 	ICF/DD, or regional treatment center; restructuring of state-operated services that limits 
417.30 	the capacity of state-operated facilities; or allowing movement to the community for 
417.31 	people who no longer require the level of care provided in state-operated facilities as 
417.32 	provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;
417.33 	(4) new foster care licenses or community residential setting licenses determined 
417.34 	to be needed by the commissioner under paragraph (b) for persons requiring hospital 
417.35 	level care; or
418.1 	(5) new foster care licenses or community residential setting licenses determined to 
418.2 	be needed by the commissioner for the transition of people from personal care assistance 
418.3 	to the home and community-based services.
418.4 	(b) The commissioner shall determine the need for newly licensed foster care 
418.5 	homes or community residential settings as defined under this subdivision. As part of the 
418.6 	determination, the commissioner shall consider the availability of foster care capacity in 
418.7 	the area in which the licensee seeks to operate, and the recommendation of the local 
418.8 	county board. The determination by the commissioner must be final. A determination of 
418.9 	need is not required for a change in ownership at the same address.
418.10 	(c) When an adult resident served by the program moves out of a foster home that is 
418.11 	not the primary residence of the license holder according to section 256B.49, subdivision 
418.12 	15, paragraph (f), or the adult community residential setting, the county shall immediately 
418.13 	inform the Department of Human Services Licensing Division. The department shall 
418.14 	decrease the statewide licensed capacity for adult foster care settings where the physical 
418.15 	location is not the primary residence of the license holder, or for adult community 
418.16 	residential settings, if the voluntary changes described in paragraph (e) are not sufficient to 
418.17 	meet the savings required by reductions in licensed bed capacity under Laws 2011, First 
418.18 	Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), and maintain statewide 
418.19 	long-term care residential services capacity within budgetary limits. Implementation of 
418.20 	the statewide licensed capacity reduction shall begin on July 1, 2013. The commissioner 
418.21 	shall delicense up to 128 beds by June 30, 2014, using the needs determination process. 
418.22 	Prior to any involuntary reduction of licensed capacity, the commissioner shall consult 
418.23 	with lead agencies and license holders to determine which adult foster care settings, where 
418.24 	the physical location is not the primary residence of the license holder, or community 
418.25 	residential settings, are licensed for up to five beds, but have operated at less than full 
418.26 	capacity for 12 or more months as of March 1, 2014. The settings that meet these criteria 
418.27 	must be the first to be considered for an involuntary decrease in statewide licensed capacity, 
418.28 	up to a maximum of 35 beds. If more than 35 beds are identified that meet these criteria, the 
418.29 	commissioner shall prioritize the selection of those beds to be closed based on the length 
418.30 	of time the beds have been vacant. The longer a bed has been vacant, the higher priority 
418.31 	it must be given for closure. Under this paragraph, the commissioner has the authority 
418.32 	to reduce unused licensed capacity of a current foster care program, or the community 
418.33 	residential settings, to accomplish the consolidation or closure of settings. Under this 
418.34 	paragraph, the commissioner has the authority to manage statewide capacity, including 
418.35 	adjusting the capacity available to each county and adjusting statewide available capacity, 
419.1 	to meet the statewide needs identified through the process in paragraph (e). A decreased 
419.2 	licensed capacity according to this paragraph is not subject to appeal under this chapter.
419.3 	(d) Residential settings that would otherwise be subject to the decreased license 
419.4 	capacity established in paragraph (c) shall be exempt under the following circumstances:
419.5 	(1) until August 1, 2013, the license holder's beds occupied by residents whose 
419.6 	primary diagnosis is mental illness and the license holder is:
419.7 	(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental 
419.8 	health services (ARMHS) as defined in section 256B.0623;
419.9 	(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to 
419.10 	9520.0870;
419.11 	(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to 
419.12 	9520.0870; or
419.13 	(iv) a provider of intensive residential treatment services (IRTS) licensed under 
419.14 	Minnesota Rules, parts 9520.0500 to 9520.0670; or
419.15 	(2) the license holder's beds occupied by residents whose primary diagnosis is 
419.16 	mental illness and the license holder is certified under the requirements in subdivision 6a 
419.17 	or section 245D.33.
419.18 	(e) A resource need determination process, managed at the state level, using the 
419.19 	available reports required by section 144A.351, and other data and information shall 
419.20 	be used to determine where the reduced capacity required under paragraph (c) will be 
419.21 	implemented. The commissioner shall consult with the stakeholders described in section 
419.22 	144A.351, and employ a variety of methods to improve the state's capacity to meet 
419.23 	long-term care service needs within budgetary limits, including seeking proposals from 
419.24 	service providers or lead agencies to change service type, capacity, or location to improve 
419.25 	services, increase the independence of residents, and better meet needs identified by the 
419.26 	long-term care services reports and statewide data and information. By February 1, 2013, 
419.27 	and August 1, 2014, and each following year, the commissioner shall provide information 
419.28 	and data on the overall capacity of licensed long-term care services, actions taken under 
419.29 	this subdivision to manage statewide long-term care services and supports resources, and 
419.30 	any recommendations for change to the legislative committees with jurisdiction over 
419.31 	health and human services budget.
419.32 	(f) At the time of application and reapplication for licensure, the applicant and the 
419.33 	license holder that are subject to the moratorium or an exclusion established in paragraph 
419.34 	(a) are required to inform the commissioner whether the physical location where the foster 
419.35 	care will be provided is or will be the primary residence of the license holder for the entire 
419.36 	period of licensure. If the primary residence of the applicant or license holder changes, the 
420.1 	applicant or license holder must notify the commissioner immediately. The commissioner 
420.2 	shall print on the foster care license certificate whether or not the physical location is the 
420.3 	primary residence of the license holder.
420.4 	(g) License holders of foster care homes identified under paragraph (f) that are not 
420.5 	the primary residence of the license holder and that also provide services in the foster care 
420.6 	home that are covered by a federally approved home and community-based services 
420.7 	waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the 
420.8 	human services licensing division that the license holder provides or intends to provide 
420.9 	these waiver-funded services.

420.10 	Sec. 7. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is 
420.11 	amended to read:
420.12 		Subd. 3.Implementation. (a) The commissioner shall implement the 
420.13 	responsibilities of this chapter according to the timelines in paragraphs (b) and (c) 
420.14 	only within the limits of available appropriations or other administrative cost recovery 
420.15 	methodology.
420.16 	(b) The licensure of home and community-based services according to this section 
420.17 	shall be implemented January 1, 2014. License applications shall be received and 
420.18 	processed on a phased-in schedule as determined by the commissioner beginning July 
420.19 	1, 2013. Licenses will be issued thereafter upon the commissioner's determination that 
420.20 	the application is complete according to section 245A.04.
420.21 	(c) Within the limits of available appropriations or other administrative cost recovery 
420.22 	methodology, implementation of compliance monitoring must be phased in after January 
420.23 	1, 2014.
420.24 	(1) Applicants who do not currently hold a license issued under chapter 245B must 
420.25 	receive an initial compliance monitoring visit after 12 months of the effective date of the 
420.26 	initial license for the purpose of providing technical assistance on how to achieve and 
420.27 	maintain compliance with the applicable law or rules governing the provision of home and 
420.28 	community-based services under chapter 245D. If during the review the commissioner 
420.29 	finds that the license holder has failed to achieve compliance with an applicable law or 
420.30 	rule and this failure does not imminently endanger the health, safety, or rights of the 
420.31 	persons served by the program, the commissioner may issue a licensing review report with 
420.32 	recommendations for achieving and maintaining compliance.
420.33 	(2) Applicants who do currently hold a license issued under this chapter must receive 
420.34 	a compliance monitoring visit after 24 months of the effective date of the initial license.
421.1 	(d) Nothing in this subdivision shall be construed to limit the commissioner's 
421.2 	authority to suspend or revoke a license or issue a fine at any time under section 245A.07, 
421.3 	or issue correction orders and make a license conditional for failure to comply with 
421.4 	applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity 
421.5 	of the violation of law or rule and the effect of the violation on the health, safety, or 
421.6 	rights of persons served by the program.
421.7 	(e) License holders governed under chapter 245D must ensure compliance with the 
421.8 	following requirements within the stated timelines:
421.9 	(1) service initiation and service planning requirements must be met at the next 
421.10 	annual meeting of the person's support team or by January 1, 2015, whichever is later, 
421.11 	for the following:
421.12 	(i) provision of a written notice that identifies the service recipient rights and an 
421.13 	explanation of those rights as required under section 245D.04, subdivision 1;
421.14 	(ii) service planning for basic support services as required under section 245D.07, 
421.15 	subdivision 2; and
421.16 	(iii) service planning for intensive support services under section 245D.071, 
421.17 	subdivisions 3 and 4;
421.18 	(2) staff orientation to program requirements as required under section 245D.09, 
421.19 	subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015. 
421.20 	The license holder may otherwise provide documentation verifying these requirements 
421.21 	were met before January 1, 2014;
421.22 	(3) development of policy and procedures as required under section 245D.11, must 
421.23 	be completed no later than August 31, 2014;
421.24 	(4) written or electronic notice and copies of policies and procedures must be 
421.25 	provided to all persons or their legal representatives and case managers as required under 
421.26 	section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within 
421.27 	30 days of development of the required policies and procedures, whichever is earlier; and
421.28 	(5) all employees must be informed of the revisions and training must be provided on 
421.29 	implementation of the revised policies and procedures as required under section 245D.10, 
421.30 	subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of 
421.31 	the required policies and procedures, whichever is earlier.

421.32 	Sec. 8. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is 
421.33 	amended to read:
421.34 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
421.35 	private agencies that have been designated or licensed by the commissioner to perform 
422.1 	licensing functions and activities under section 245A.04 and background studies for family 
422.2 	child care under chapter 245C; to recommend denial of applicants under section 245A.05; 
422.3 	to issue correction orders, to issue variances, and recommend a conditional license under 
422.4 	section 245A.06, or to recommend suspending or revoking a license or issuing a fine under 
422.5 	section 245A.07, shall comply with rules and directives of the commissioner governing 
422.6 	those functions and with this section. The following variances are excluded from the 
422.7 	delegation of variance authority and may be issued only by the commissioner:
422.8 	(1) dual licensure of family child care and child foster care, dual licensure of child 
422.9 	and adult foster care, and adult foster care and family child care;
422.10 	(2) adult foster care maximum capacity;
422.11 	(3) adult foster care minimum age requirement;
422.12 	(4) child foster care maximum age requirement;
422.13 	(5) variances regarding disqualified individuals except that county agencies may 
422.14 	issue variances under section 245C.30 regarding disqualified individuals when the county 
422.15 	is responsible for conducting a consolidated reconsideration according to sections 245C.25 
422.16 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
422.17 	and a disqualification based on serious or recurring maltreatment;
422.18 	(6) the required presence of a caregiver in the adult foster care residence during 
422.19 	normal sleeping hours; and
422.20 	(7) variances for community residential setting licenses under chapter 245D.
422.21 	Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency 
422.22 	must not grant a license holder a variance to exceed the maximum allowable family child 
422.23 	care license capacity of 14 children.
422.24 	(b) County agencies must report information about disqualification reconsiderations 
422.25 	under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances 
422.26 	granted under paragraph (a), clause (5), to the commissioner at least monthly in a format 
422.27 	prescribed by the commissioner.
422.28 	(c) For family day care programs, the commissioner may authorize licensing reviews 
422.29 	every two years after a licensee has had at least one annual review.
422.30 	(d) For family adult day services programs, the commissioner may authorize 
422.31 	licensing reviews every two years after a licensee has had at least one annual review.
422.32 	(e) A license issued under this section may be issued for up to two years.
422.33 	(f) During implementation of chapter 245D, the commissioner shall consider:
422.34 	(1) the role of counties in quality assurance;
422.35 	(2) the duties of county licensing staff; and
423.1 	(3) the possible use of joint powers agreements, according to section 471.59, with 
423.2 	counties through which some licensing duties under chapter 245D may be delegated by 
423.3 	the commissioner to the counties.
423.4 	Any consideration related to this paragraph must meet all of the requirements of the 
423.5 	corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
423.6 	(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
423.7 	successor provisions; and section 245D.061 or successor provisions, for family child 
423.8 	foster care programs providing out-of-home respite, as identified in section 245D.03, 
423.9 	subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority 
423.10 	to county and private agencies.

423.11 	Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is 
423.12 	amended to read:
423.13 		Subd. 3.Case manager. "Case manager" means the individual designated 
423.14 	to provide waiver case management services, care coordination, or long-term care 
423.15 	consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49, 
423.16 	or successor provisions. For purposes of this chapter, "case manager" includes case 
423.17 	management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

423.18 	Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, 
423.19 	is amended to read:
423.20 		Subd. 4b.Coordinated service and support plan. "Coordinated service and 
423.21 	support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915, 
423.22 	subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor 
423.23 	provisions. For purposes of this chapter, "coordinated service and support plan" includes 
423.24 	the individual program plan or individual treatment plan as defined in Minnesota Rules, 
423.25 	part 9520.0510, subpart 12.

423.26 	Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, 
423.27 	is amended to read:
423.28 		Subd. 8b.Expanded support team. "Expanded support team" means the members 
423.29 	of the support team defined in subdivision 46 34 and a licensed health or mental health 
423.30 	professional or other licensed, certified, or qualified professionals or consultants working 
423.31 	with the person and included in the team at the request of the person or the person's legal 
423.32 	representative.

424.1 	Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11, 
424.2 	is amended to read:
424.3 		Subd. 11.Incident. "Incident" means an occurrence which involves a person and 
424.4 	requires the program to make a response that is not a part of the program's ordinary 
424.5 	provision of services to that person, and includes:
424.6 	(1) serious injury of a person as determined by section 245.91, subdivision 6;
424.7 	(2) a person's death;
424.8 	(3) any medical emergency, unexpected serious illness, or significant unexpected 
424.9 	change in an illness or medical condition of a person that requires the program to call 
424.10 	911, physician treatment, or hospitalization;
424.11 	(4) any mental health crisis that requires the program to call 911 or, a mental 
424.12 	health crisis intervention team, or a similar mental health response team or service when 
424.13 	available and appropriate;
424.14 	(5) an act or situation involving a person that requires the program to call 911, 
424.15 	law enforcement, or the fire department;
424.16 	(6) a person's unauthorized or unexplained absence from a program;
424.17 	(7) conduct by a person receiving services against another person receiving services 
424.18 	that:
424.19 	(i) is so severe, pervasive, or objectively offensive that it substantially interferes with 
424.20 	a person's opportunities to participate in or receive service or support;
424.21 	(ii) places the person in actual and reasonable fear of harm;
424.22 	(iii) places the person in actual and reasonable fear of damage to property of the 
424.23 	person; or
424.24 	(iv) substantially disrupts the orderly operation of the program;
424.25 	(8) any sexual activity between persons receiving services involving force or 
424.26 	coercion as defined under section 609.341, subdivisions 3 and 14;
424.27 	(9) any emergency use of manual restraint as identified in section 245D.061 or 
424.28 	successor provisions; or
424.29 	(10) a report of alleged or suspected child or vulnerable adult maltreatment under 
424.30 	section 626.556 or 626.557.

424.31 	Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b, 
424.32 	is amended to read:
424.33 		Subd. 15b.Mechanical restraint. (a) Except for devices worn by the person that 
424.34 	trigger electronic alarms to warn staff that a person is leaving a room or area, which 
424.35 	do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids 
425.1 	or equipment or orthotic devices ordered by a health care professional used to treat or 
425.2 	manage a medical condition, "Mechanical restraint" means the use of devices, materials, 
425.3 	or equipment attached or adjacent to the person's body, or the use of practices that are 
425.4 	intended to restrict freedom of movement or normal access to one's body or body parts, 
425.5 	or limits a person's voluntary movement or holds a person immobile as an intervention 
425.6 	precipitated by a person's behavior. The term applies to the use of mechanical restraint 
425.7 	used to prevent injury with persons who engage in self-injurious behaviors, such as 
425.8 	head-banging, gouging, or other actions resulting in tissue damage that have caused or 
425.9 	could cause medical problems resulting from the self-injury.
425.10 	(b) Mechanical restraint does not include the following:
425.11 	(1) devices worn by the person that trigger electronic alarms to warn staff that a 
425.12 	person is leaving a room or area, which do not, in and of themselves, restrict freedom of 
425.13 	movement; or
425.14 	(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care 
425.15 	professional used to treat or manage a medical condition.

425.16 	Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 23, 
425.17 	is amended to read:
425.18 		Subd. 23.Person with a disability. "Person with a disability" means a person 
425.19 	determined to have a disability by the commissioner's state medical review team as 
425.20 	identified in section 256B.055, subdivision 7, the Social Security Administration, or the 
425.21 	person is determined to have a developmental disability as defined in Minnesota Rules, 
425.22 	part 9525.0016, subpart 2, item B, or a related condition as defined in section 252.27, 
425.23 	subdivision 1a Minnesota Rules, part 9525.0016, subpart 2, items A to E.

425.24 	Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29, 
425.25 	is amended to read:
425.26 		Subd. 29.Seclusion. "Seclusion" means the placement of a person alone in: (1) 
425.27 	removing a person involuntarily to a room from which exit is prohibited by a staff person 
425.28 	or a mechanism such as a lock, a device, or an object positioned to hold the door closed 
425.29 	or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily 
425.30 	removing or separating a person from an area, activity, situation, or social contact with 
425.31 	others and blocking or preventing the person's return.

425.32 	Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34, 
425.33 	is amended to read:
426.1 		Subd. 34.Support team. "Support team" means the service planning team 
426.2 	identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in 
426.3 	Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in 
426.4 	Minnesota Rules, part 9520.0902, subpart 6.

426.5 	Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a, 
426.6 	is amended to read:
426.7 		Subd. 34a.Time out. "Time out" means removing a person involuntarily from an 
426.8 	ongoing activity to a room, either locked or unlocked, or otherwise separating a person 
426.9 	from others in a way that prevents social contact and prevents the person from leaving the 
426.10 	situation if the person chooses the involuntary removal of a person for a period of time to 
426.11 	a designated area from which the person is not prevented from leaving. For the purpose of 
426.12 	this chapter, "time out" does not mean voluntary removal or self-removal for the purpose 
426.13 	of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15 
426.14 	minutes. "Time out" does not include a person voluntarily moving from an ongoing activity 
426.15 	to an unlocked room or otherwise separating from a situation or social contact with others 
426.16 	if the person chooses. For the purposes of this definition, "voluntarily" means without 
426.17 	being forced, compelled, or coerced.; nor does it mean taking a brief break or rest from an 
426.18 	activity for the purpose of providing the person an opportunity to regain self-control. 

426.19 	Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding 
426.20 	a subdivision to read:
426.21 		Subd. 35b.Unlicensed staff. "Unlicensed staff" means individuals not otherwise 
426.22 	licensed or certified by a governmental health board or agency.

426.23 	Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is 
426.24 	amended to read:
426.25 		Subdivision 1.Applicability.  (a) The commissioner shall regulate the provision of 
426.26 	home and community-based services to persons with disabilities and persons age 65 and 
426.27 	older pursuant to this chapter. The licensing standards in this chapter govern the provision 
426.28 	of basic support services and intensive support services.
426.29 	(b) Basic support services provide the level of assistance, supervision, and care that 
426.30 	is necessary to ensure the health and safety of the person and do not include services that 
426.31 	are specifically directed toward the training, treatment, habilitation, or rehabilitation of 
426.32 	the person. Basic support services include:
427.1 	(1) in-home and out-of-home respite care services as defined in section 245A.02, 
427.2 	subdivision 15, and under the brain injury, community alternative care, community 
427.3 	alternatives for disabled individuals, developmental disability, and elderly waiver plans, 
427.4 	excluding out-of-home respite care provided to children in a family child foster care home 
427.5 	licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care 
427.6 	license holder complies with the requirements under section 245D.06, subdivisions 5, 6, 
427.7 	7, and 8, or successor provisions; and section 245D.061 or successor provisions, which 
427.8 	must be stipulated in the statement of intended use required under Minnesota Rules, 
427.9 	part 2960.3000, subpart 4;
427.10 	(2) adult companion services as defined under the brain injury, community 
427.11 	alternatives for disabled individuals, and elderly waiver plans, excluding adult companion 
427.12 	services provided under the Corporation for National and Community Services Senior 
427.13 	Companion Program established under the Domestic Volunteer Service Act of 1973, 
427.14 	Public Law 98-288;
427.15 	(3) personal support as defined under the developmental disability waiver plan;
427.16 	(4) 24-hour emergency assistance, personal emergency response as defined under the 
427.17 	community alternatives for disabled individuals and developmental disability waiver plans;
427.18 	(5) night supervision services as defined under the brain injury waiver plan; and
427.19 	(6) homemaker services as defined under the community alternatives for disabled 
427.20 	individuals, brain injury, community alternative care, developmental disability, and elderly 
427.21 	waiver plans, excluding providers licensed by the Department of Health under chapter 
427.22 	144A and those providers providing cleaning services only.
427.23 	(c) Intensive support services provide assistance, supervision, and care that is 
427.24 	necessary to ensure the health and safety of the person and services specifically directed 
427.25 	toward the training, habilitation, or rehabilitation of the person. Intensive support services 
427.26 	include:
427.27 	(1) intervention services, including:
427.28 	(i) behavioral support services as defined under the brain injury and community 
427.29 	alternatives for disabled individuals waiver plans;
427.30 	(ii) in-home or out-of-home crisis respite services as defined under the developmental 
427.31 	disability waiver plan; and
427.32 	(iii) specialist services as defined under the current developmental disability waiver 
427.33 	plan;
427.34 	(2) in-home support services, including:
427.35 	(i) in-home family support and supported living services as defined under the 
427.36 	developmental disability waiver plan;
428.1 	(ii) independent living services training as defined under the brain injury and 
428.2 	community alternatives for disabled individuals waiver plans; and
428.3 	(iii) semi-independent living services;
428.4 	(3) residential supports and services, including:
428.5 	(i) supported living services as defined under the developmental disability waiver 
428.6 	plan provided in a family or corporate child foster care residence, a family adult foster 
428.7 	care residence, a community residential setting, or a supervised living facility;
428.8 	(ii) foster care services as defined in the brain injury, community alternative care, 
428.9 	and community alternatives for disabled individuals waiver plans provided in a family or 
428.10 	corporate child foster care residence, a family adult foster care residence, or a community 
428.11 	residential setting; and
428.12 	(iii) residential services provided to more than four persons with developmental 
428.13 	disabilities in a supervised living facility that is certified by the Department of Health as 
428.14 	an ICF/DD, including ICFs/DD;
428.15 	(4) day services, including:
428.16 	(i) structured day services as defined under the brain injury waiver plan;
428.17 	(ii) day training and habilitation services under sections 252.40 to 252.46, and as 
428.18 	defined under the developmental disability waiver plan; and
428.19 	(iii) prevocational services as defined under the brain injury and community 
428.20 	alternatives for disabled individuals waiver plans; and
428.21 	(5) supported employment as defined under the brain injury, developmental 
428.22 	disability, and community alternatives for disabled individuals waiver plans.

428.23 	Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding 
428.24 	a subdivision to read:
428.25 		Subd. 1a.Effect. The home and community-based services standards establish 
428.26 	health, safety, welfare, and rights protections for persons receiving services governed by 
428.27 	this chapter. The standards recognize the diversity of persons receiving these services and 
428.28 	require that these services are provided in a manner that meets each person's individual 
428.29 	needs and ensures continuity in service planning, care, and coordination between the 
428.30 	license holder and members of each person's support team or expanded support team.

428.31 	Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is 
428.32 	amended to read:
429.1 		Subd. 2.Relationship to other standards governing home and community-based 
429.2 	services. (a) A license holder governed by this chapter is also subject to the licensure 
429.3 	requirements under chapter 245A.
429.4 	(b) A corporate or family child foster care site controlled by a license holder and 
429.5 	providing services governed by this chapter is exempt from compliance with section 
429.6 	245D.04. This exemption applies to foster care homes where at least one resident is 
429.7 	receiving residential supports and services licensed according to this chapter. This chapter 
429.8 	does not apply to corporate or family child foster care homes that do not provide services 
429.9 	licensed under this chapter.
429.10 	(c) A family adult foster care site controlled by a license holder and providing 
429.11 	services governed by this chapter is exempt from compliance with Minnesota Rules, 
429.12 	parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These 
429.13 	exemptions apply to family adult foster care homes where at least one resident is receiving 
429.14 	residential supports and services licensed according to this chapter. This chapter does 
429.15 	not apply to family adult foster care homes that do not provide services licensed under 
429.16 	this chapter.
429.17 	(d) A license holder providing services licensed according to this chapter in a 
429.18 	supervised living facility is exempt from compliance with sectionssection 245D.04; 
429.19 	245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
429.20 	(e) A license holder providing residential services to persons in an ICF/DD is exempt 
429.21 	from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision 
429.22 	2, clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09, 
429.23 	subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
429.24 	(f) A license holder providing homemaker services licensed according to this chapter 
429.25 	and registered according to chapter 144A is exempt from compliance with section 245D.04.
429.26 	(g) Nothing in this chapter prohibits a license holder from concurrently serving 
429.27 	persons without disabilities or people who are or are not age 65 and older, provided this 
429.28 	chapter's standards are met as well as other relevant standards.
429.29 	(h) The documentation required under sections 245D.07 and 245D.071 must meet 
429.30 	the individual program plan requirements identified in section 256B.092 or successor 
429.31 	provisions.

429.32 	Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is 
429.33 	amended to read:
429.34 		Subd. 3.Variance. If the conditions in section 245A.04, subdivision 9, are met, 
429.35 	the commissioner may grant a variance to any of the requirements in this chapter, except 
430.1 	sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor 
430.2 	provisions; and 245D.061, subdivision 3, or provisions governing data practices and 
430.3 	information rights of persons.

430.4 	Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is 
430.5 	amended to read:
430.6 		Subd. 3.Protection-related rights. (a) A person's protection-related rights include 
430.7 	the right to:
430.8 	(1) have personal, financial, service, health, and medical information kept private, 
430.9 	and be advised of disclosure of this information by the license holder;
430.10 	(2) access records and recorded information about the person in accordance with 
430.11 	applicable state and federal law, regulation, or rule;
430.12 	(3) be free from maltreatment;
430.13 	(4) be free from restraint, time out, or seclusion, restrictive intervention, or other 
430.14 	prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions,
430.15 	 except for: (i) emergency use of manual restraint to protect the person from imminent 
430.16 	danger to self or others according to the requirements in section 245D.06; 245D.061 or 
430.17 	successor provisions; or (ii) the use of safety interventions as part of a positive support 
430.18 	transition plan under section 245D.06, subdivision 8, or successor provisions;
430.19 	(5) receive services in a clean and safe environment when the license holder is the 
430.20 	owner, lessor, or tenant of the service site;
430.21 	(6) be treated with courtesy and respect and receive respectful treatment of the 
430.22 	person's property;
430.23 	(7) reasonable observance of cultural and ethnic practice and religion;
430.24 	(8) be free from bias and harassment regarding race, gender, age, disability, 
430.25 	spirituality, and sexual orientation;
430.26 	(9) be informed of and use the license holder's grievance policy and procedures, 
430.27 	including knowing how to contact persons responsible for addressing problems and to 
430.28 	appeal under section 256.045;
430.29 	(10) know the name, telephone number, and the Web site, e-mail, and street 
430.30 	addresses of protection and advocacy services, including the appropriate state-appointed 
430.31 	ombudsman, and a brief description of how to file a complaint with these offices;
430.32 	(11) assert these rights personally, or have them asserted by the person's family, 
430.33 	authorized representative, or legal representative, without retaliation;
430.34 	(12) give or withhold written informed consent to participate in any research or 
430.35 	experimental treatment;
431.1 	(13) associate with other persons of the person's choice;
431.2 	(14) personal privacy; and
431.3 	(15) engage in chosen activities.
431.4 	(b) For a person residing in a residential site licensed according to chapter 245A, 
431.5 	or where the license holder is the owner, lessor, or tenant of the residential service site, 
431.6 	protection-related rights also include the right to:
431.7 	(1) have daily, private access to and use of a non-coin-operated telephone for local 
431.8 	calls and long-distance calls made collect or paid for by the person;
431.9 	(2) receive and send, without interference, uncensored, unopened mail or electronic 
431.10 	correspondence or communication;
431.11 	(3) have use of and free access to common areas in the residence; and
431.12 	(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious 
431.13 	advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including 
431.14 	privacy in the person's bedroom.
431.15 	(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a), 
431.16 	clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure 
431.17 	the health, safety, and well-being of the person. Any restriction of those rights must be 
431.18 	documented in the person's coordinated service and support plan or coordinated service 
431.19 	and support plan addendum. The restriction must be implemented in the least restrictive 
431.20 	alternative manner necessary to protect the person and provide support to reduce or 
431.21 	eliminate the need for the restriction in the most integrated setting and inclusive manner. 
431.22 	The documentation must include the following information:
431.23 	(1) the justification for the restriction based on an assessment of the person's 
431.24 	vulnerability related to exercising the right without restriction;
431.25 	(2) the objective measures set as conditions for ending the restriction;
431.26 	(3) a schedule for reviewing the need for the restriction based on the conditions 
431.27 	for ending the restriction to occur semiannually from the date of initial approval, at a 
431.28 	minimum, or more frequently if requested by the person, the person's legal representative, 
431.29 	if any, and case manager; and
431.30 	(4) signed and dated approval for the restriction from the person, or the person's 
431.31 	legal representative, if any. A restriction may be implemented only when the required 
431.32 	approval has been obtained. Approval may be withdrawn at any time. If approval is 
431.33 	withdrawn, the right must be immediately and fully restored.

431.34 	Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is 
431.35 	amended to read:
432.1 		Subdivision 1.Health needs. (a) The license holder is responsible for meeting 
432.2 	health service needs assigned in the coordinated service and support plan or the 
432.3 	coordinated service and support plan addendum, consistent with the person's health needs. 
432.4 	The license holder is responsible for promptly notifying the person's legal representative, 
432.5 	if any, and the case manager of changes in a person's physical and mental health needs 
432.6 	affecting health service needs assigned to the license holder in the coordinated service and 
432.7 	support plan or the coordinated service and support plan addendum, when discovered by 
432.8 	the license holder, unless the license holder has reason to know the change has already 
432.9 	been reported. The license holder must document when the notice is provided.
432.10 	(b) If responsibility for meeting the person's health service needs has been assigned 
432.11 	to the license holder in the coordinated service and support plan or the coordinated service 
432.12 	and support plan addendum, the license holder must maintain documentation on how the 
432.13 	person's health needs will be met, including a description of the procedures the license 
432.14 	holder will follow in order to:
432.15 	(1) provide medication setup, assistance, or medication administration according 
432.16 	to this chapter. Unlicensed staff responsible for medication setup or medication 
432.17 	administration under this section must complete training according to section 245D.09, 
432.18 	subdivision 4a, paragraph (d);
432.19 	(2) monitor health conditions according to written instructions from a licensed 
432.20 	health professional;
432.21 	(3) assist with or coordinate medical, dental, and other health service appointments; or
432.22 	(4) use medical equipment, devices, or adaptive aides or technology safely and 
432.23 	correctly according to written instructions from a licensed health professional.

432.24 	Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a, 
432.25 	is amended to read:
432.26 		Subd. 1a.Medication setup. (a) For the purposes of this subdivision, "medication 
432.27 	setup" means the arranging of medications according to instructions from the pharmacy, 
432.28 	the prescriber, or a licensed nurse, for later administration when the license holder 
432.29 	is assigned responsibility for medication assistance or medication administration in 
432.30 	the coordinated service and support plan or the coordinated service and support plan 
432.31 	addendum. A prescription label or the prescriber's written or electronically recorded order 
432.32 	for the prescription is sufficient to constitute written instructions from the prescriber.
432.33 	(b) If responsibility for medication setup is assigned to the license holder in 
432.34 	the coordinated service and support plan or the coordinated service and support plan 
432.35 	addendum, or if the license holder provides it as part of medication assistance or 
433.1 	medication administration, the license holder must document in the person's medication 
433.2 	administration record: dates of setup, name of medication, quantity of dose, times to be 
433.3 	administered, and route of administration at time of setup; and, when the person will be 
433.4 	away from home, to whom the medications were given.

433.5 	Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b, 
433.6 	is amended to read:
433.7 		Subd. 1b.Medication assistance. (a) For purposes of this subdivision, "medication 
433.8 	assistance" means any of the following:
433.9 	(1) bringing to the person and opening a container of previously set up medications, 
433.10 	emptying the container into the person's hand, or opening and giving the medications in 
433.11 	the original container to the person under the direction of the person;
433.12 	(2) bringing to the person liquids or food to accompany the medication; or
433.13 	(3) providing reminders, in person, remotely, or through programming devices 
433.14 	such as telephones, alarms, or medication boxes, to take regularly scheduled medication 
433.15 	or perform regularly scheduled treatments and exercises.
433.16 	(b) If responsibility for medication assistance is assigned to the license holder 
433.17 	in the coordinated service and support plan or the coordinated service and support 
433.18 	plan addendum, the license holder must ensure that the requirements of subdivision 2, 
433.19 	paragraph (b), have been met when staff provides medication assistance to enableis 
433.20 	provided in a manner that enables a person to self-administer medication or treatment 
433.21 	when the person is capable of directing the person's own care, or when the person's legal 
433.22 	representative is present and able to direct care for the person. For the purposes of this 
433.23 	subdivision, "medication assistance" means any of the following:
433.24 	(1) bringing to the person and opening a container of previously set up medications, 
433.25 	emptying the container into the person's hand, or opening and giving the medications in 
433.26 	the original container to the person;
433.27 	(2) bringing to the person liquids or food to accompany the medication; or
433.28 	(3) providing reminders to take regularly scheduled medication or perform regularly 
433.29 	scheduled treatments and exercises.

433.30 	Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is 
433.31 	amended to read:
433.32 		Subd. 2.Medication administration. (a) If responsibility for medication 
433.33 	administration is assigned to the license holder in the coordinated service and support 
433.34 	plan or the coordinated service and support plan addendum, the license holder must 
434.1 	implement the following medication administration procedures to ensure a person takes 
434.2 	medications and treatments as prescribed For purposes of this subdivision, "medication 
434.3 	administration" means:
434.4 	(1) checking the person's medication record;
434.5 	(2) preparing the medication as necessary;
434.6 	(3) administering the medication or treatment to the person;
434.7 	(4) documenting the administration of the medication or treatment or the reason for 
434.8 	not administering the medication or treatment; and
434.9 	(5) reporting to the prescriber or a nurse any concerns about the medication or 
434.10 	treatment, including side effects, effectiveness, or a pattern of the person refusing to 
434.11 	take the medication or treatment as prescribed. Adverse reactions must be immediately 
434.12 	reported to the prescriber or a nurse.
434.13 	(b)(1) If responsibility for medication administration is assigned to the license holder 
434.14 	in the coordinated service and support plan or the coordinated service and support plan 
434.15 	addendum, the license holder must implement medication administration procedures 
434.16 	to ensure a person takes medications and treatments as prescribed. The license holder 
434.17 	must ensure that the requirements in clauses (2) to (4) and (3) have been met before 
434.18 	administering medication or treatment.
434.19 	(2) The license holder must obtain written authorization from the person or the 
434.20 	person's legal representative to administer medication or treatment and must obtain 
434.21 	reauthorization annually as needed. This authorization shall remain in effect unless it is 
434.22 	withdrawn in writing and may be withdrawn at any time. If the person or the person's 
434.23 	legal representative refuses to authorize the license holder to administer medication, the 
434.24 	medication must not be administered. The refusal to authorize medication administration 
434.25 	must be reported to the prescriber as expediently as possible.
434.26 	(3) The staff person responsible for administering the medication or treatment must 
434.27 	complete medication administration training according to section 245D.09, subdivision
434.28 	 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
434.29 	(4) (3) For a license holder providing intensive support services, the medication or 
434.30 	treatment must be administered according to the license holder's medication administration 
434.31 	policy and procedures as required under section 245D.11, subdivision 2, clause (3).
434.32 	(c) The license holder must ensure the following information is documented in the 
434.33 	person's medication administration record:
434.34 	(1) the information on the current prescription label or the prescriber's current 
434.35 	written or electronically recorded order or prescription that includes the person's name, 
434.36 	description of the medication or treatment to be provided, and the frequency and other 
435.1 	information needed to safely and correctly administer the medication or treatment to 
435.2 	ensure effectiveness;
435.3 	(2) information on any risks or other side effects that are reasonable to expect, and 
435.4 	any contraindications to its use. This information must be readily available to all staff 
435.5 	administering the medication;
435.6 	(3) the possible consequences if the medication or treatment is not taken or 
435.7 	administered as directed;
435.8 	(4) instruction on when and to whom to report the following:
435.9 	(i) if a dose of medication is not administered or treatment is not performed as 
435.10 	prescribed, whether by error by the staff or the person or by refusal by the person; and
435.11 	(ii) the occurrence of possible adverse reactions to the medication or treatment;
435.12 	(5) notation of any occurrence of a dose of medication not being administered or 
435.13 	treatment not performed as prescribed, whether by error by the staff or the person or by 
435.14 	refusal by the person, or of adverse reactions, and when and to whom the report was 
435.15 	made; and
435.16 	(6) notation of when a medication or treatment is started, administered, changed, or 
435.17 	discontinued.

435.18 	Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is 
435.19 	amended to read:
435.20 		Subd. 4.Reviewing and reporting medication and treatment issues. (a) When 
435.21 	assigned responsibility for medication administration, the license holder must ensure 
435.22 	that the information maintained in the medication administration record is current and 
435.23 	is regularly reviewed to identify medication administration errors. At a minimum, the 
435.24 	review must be conducted every three months, or more frequently as directed in the 
435.25 	coordinated service and support plan or coordinated service and support plan addendum 
435.26 	or as requested by the person or the person's legal representative. Based on the review, 
435.27 	the license holder must develop and implement a plan to correct patterns of medication 
435.28 	administration errors when identified.
435.29 	(b) If assigned responsibility for medication assistance or medication administration, 
435.30 	the license holder must report the following to the person's legal representative and case 
435.31 	manager as they occur or as otherwise directed in the coordinated service and support plan 
435.32 	or the coordinated service and support plan addendum:
435.33 	(1) any reports made to the person's physician or prescriber required under 
435.34 	subdivision 2, paragraph (c), clause (4);
436.1 	(2) a person's refusal or failure to take or receive medication or treatment as 
436.2 	prescribed; or
436.3 	(3) concerns about a person's self-administration of medication or treatment.

436.4 	Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is 
436.5 	amended to read:
436.6 		Subd. 5.Injectable medications. Injectable medications may be administered 
436.7 	according to a prescriber's order and written instructions when one of the following 
436.8 	conditions has been met:
436.9 	(1) a registered nurse or licensed practical nurse will administer the subcutaneous or 
436.10 	intramuscular injection;
436.11 	(2) a supervising registered nurse with a physician's order has delegated the 
436.12 	administration of subcutaneous injectable medication to an unlicensed staff member 
436.13 	and has provided the necessary training; or
436.14 	(3) there is an agreement signed by the license holder, the prescriber, and the 
436.15 	person or the person's legal representative specifying what subcutaneous injections may 
436.16 	be given, when, how, and that the prescriber must retain responsibility for the license 
436.17 	holder's giving the injections. A copy of the agreement must be placed in the person's 
436.18 	service recipient record.
436.19 	Only licensed health professionals are allowed to administer psychotropic 
436.20 	medications by injection.

436.21 	Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
436.22 	245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
436.23 		Subdivision 1.Conditions for psychotropic medication administration. (a) 
436.24 	When a person is prescribed a psychotropic medication and the license holder is assigned 
436.25 	responsibility for administration of the medication in the person's coordinated service 
436.26 	and support plan or the coordinated service and support plan addendum, the license 
436.27 	holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05, 
436.28 	subdivision 2, are met.
436.29 	(b) Use of the medication must be included in the person's coordinated service and 
436.30 	support plan or in the coordinated service and support plan addendum and based on a 
436.31 	prescriber's current written or electronically recorded prescription.
436.32 	(c) (b) The license holder must develop, implement, and maintain the following 
436.33 	documentation in the person's coordinated service and support plan addendum according 
436.34 	to the requirements in sections 245D.07 and 245D.071:
437.1 	(1) a description of the target symptoms that the psychotropic medication is to 
437.2 	alleviate; and
437.3 	(2) documentation methods the license holder will use to monitor and measure 
437.4 	changes in the target symptoms that are to be alleviated by the psychotropic medication if 
437.5 	required by the prescriber. The license holder must collect and report on medication and 
437.6 	symptom-related data as instructed by the prescriber. The license holder must provide 
437.7 	the monitoring data to the expanded support team for review every three months, or as 
437.8 	otherwise requested by the person or the person's legal representative.
437.9 	For the purposes of this section, "target symptom" refers to any perceptible 
437.10 	diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic 
437.11 	and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or 
437.12 	successive editions, that has been identified for alleviation.
437.13 		Subd. 2.Refusal to authorize psychotropic medication. If the person or the 
437.14 	person's legal representative refuses to authorize the administration of a psychotropic 
437.15 	medication as ordered by the prescriber, the license holder must follow the requirement in 
437.16 	section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication. 
437.17 	The refusal to authorize medication administration must be reported to the prescriber as 
437.18 	expediently as possible. After reporting the refusal to the prescriber, the license holder 
437.19 	must follow any directives or orders given by the prescriber. A court order must be 
437.20 	obtained to override the refusal.A refusal may not be overridden without a court order. 
437.21 	Refusal to authorize administration of a specific psychotropic medication is not grounds 
437.22 	for service termination and does not constitute an emergency. A decision to terminate 
437.23 	services must be reached in compliance with section 245D.10, subdivision 3.

437.24 	Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is 
437.25 	amended to read:
437.26 		Subdivision 1.Incident response and reporting.  (a) The license holder must 
437.27 	respond to incidents under section 245D.02, subdivision 11, that occur while providing 
437.28 	services to protect the health and safety of and minimize risk of harm to the person.
437.29 	(b) The license holder must maintain information about and report incidents to the 
437.30 	person's legal representative or designated emergency contact and case manager within 
437.31 	24 hours of an incident occurring while services are being provided, within 24 hours of 
437.32 	discovery or receipt of information that an incident occurred, unless the license holder 
437.33 	has reason to know that the incident has already been reported, or as otherwise directed 
437.34 	in a person's coordinated service and support plan or coordinated service and support 
437.35 	plan addendum. An incident of suspected or alleged maltreatment must be reported as 
438.1 	required under paragraph (d), and an incident of serious injury or death must be reported 
438.2 	as required under paragraph (e).
438.3 	(c) When the incident involves more than one person, the license holder must not 
438.4 	disclose personally identifiable information about any other person when making the report 
438.5 	to each person and case manager unless the license holder has the consent of the person.
438.6 	(d) Within 24 hours of reporting maltreatment as required under section 626.556 
438.7 	or 626.557, the license holder must inform the case manager of the report unless there is 
438.8 	reason to believe that the case manager is involved in the suspected maltreatment. The 
438.9 	license holder must disclose the nature of the activity or occurrence reported and the 
438.10 	agency that received the report.
438.11 	(e) The license holder must report the death or serious injury of the person as 
438.12 	required in paragraph (b) and to the Department of Human Services Licensing Division, 
438.13 	and the Office of Ombudsman for Mental Health and Developmental Disabilities as 
438.14 	required under section 245.94, subdivision 2a, within 24 hours of the death, or receipt of 
438.15 	information that the death occurred, unless the license holder has reason to know that the 
438.16 	death has already been reported.
438.17 	(f) When a death or serious injury occurs in a facility certified as an intermediate 
438.18 	care facility for persons with developmental disabilities, the death or serious injury must 
438.19 	be reported to the Department of Health, Office of Health Facility Complaints, and the 
438.20 	Office of Ombudsman for Mental Health and Developmental Disabilities, as required 
438.21 	under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to 
438.22 	know that the death has already been reported.
438.23 	(g) The license holder must conduct an internal review of incident reports of deaths 
438.24 	and serious injuries that occurred while services were being provided and that were not 
438.25 	reported by the program as alleged or suspected maltreatment, for identification of incident 
438.26 	patterns, and implementation of corrective action as necessary to reduce occurrences. 
438.27 	The review must include an evaluation of whether related policies and procedures were 
438.28 	followed, whether the policies and procedures were adequate, whether there is a need for 
438.29 	additional staff training, whether the reported event is similar to past events with the 
438.30 	persons or the services involved, and whether there is a need for corrective action by the 
438.31 	license holder to protect the health and safety of persons receiving services. Based on 
438.32 	the results of this review, the license holder must develop, document, and implement a 
438.33 	corrective action plan designed to correct current lapses and prevent future lapses in 
438.34 	performance by staff or the license holder, if any.
438.35 	(h) The license holder must verbally report the emergency use of manual restraint 
438.36 	of a person as required in paragraph (b) within 24 hours of the occurrence. The license 
439.1 	holder must ensure the written report and internal review of all incident reports of the 
439.2 	emergency use of manual restraints are completed according to the requirements in section 
439.3 	245D.061 or successor provisions.

439.4 	Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is 
439.5 	amended to read:
439.6 		Subd. 2.Environment and safety. The license holder must:
439.7 	(1) ensure the following when the license holder is the owner, lessor, or tenant 
439.8 	of the service site:
439.9 	(i) the service site is a safe and hazard-free environment;
439.10 	(ii) that toxic substances or dangerous items are inaccessible to persons served by 
439.11 	the program only to protect the safety of a person receiving services when a known safety 
439.12 	threat exists and not as a substitute for staff supervision or interactions with a person who 
439.13 	is receiving services. If toxic substances or dangerous items are made inaccessible, the 
439.14 	license holder must document an assessment of the physical plant, its environment, and its 
439.15 	population identifying the risk factors which require toxic substances or dangerous items 
439.16 	to be inaccessible and a statement of specific measures to be taken to minimize the safety 
439.17 	risk to persons receiving services and to restore accessibility to all persons receiving 
439.18 	services at the service site;
439.19 	(iii) doors are locked from the inside to prevent a person from exiting only when 
439.20 	necessary to protect the safety of a person receiving services and not as a substitute for 
439.21 	staff supervision or interactions with the person. If doors are locked from the inside, the 
439.22 	license holder must document an assessment of the physical plant, the environment and 
439.23 	the population served, identifying the risk factors which require the use of locked doors, 
439.24 	and a statement of specific measures to be taken to minimize the safety risk to persons 
439.25 	receiving services at the service site; and
439.26 	(iv) a staff person is available at the service site who is trained in basic first aid and, 
439.27 	when required in a person's coordinated service and support plan or coordinated service 
439.28 	and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are 
439.29 	present and staff are required to be at the site to provide direct support service. The CPR 
439.30 	training must include in-person instruction, hands-on practice, and an observed skills 
439.31 	assessment under the direct supervision of a CPR instructor;
439.32 	(2) maintain equipment, vehicles, supplies, and materials owned or leased by the 
439.33 	license holder in good condition when used to provide services;
440.1 	(3) follow procedures to ensure safe transportation, handling, and transfers of the 
440.2 	person and any equipment used by the person, when the license holder is responsible for 
440.3 	transportation of a person or a person's equipment;
440.4 	(4) be prepared for emergencies and follow emergency response procedures to 
440.5 	ensure the person's safety in an emergency; and
440.6 	(5) follow universal precautions and sanitary practices, including hand washing, for 
440.7 	infection prevention and control, and to prevent communicable diseases.

440.8 	Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is 
440.9 	amended to read:
440.10 		Subd. 4.Funds and property; legal representative restrictions. (a) Whenever the 
440.11 	license holder assists a person with the safekeeping of funds or other property according 
440.12 	to section 245A.04, subdivision 13, the license holder must obtain written authorization 
440.13 	to do so from the person or the person's legal representative and the case manager. 
440.14 	Authorization must be obtained within five working days of service initiation and renewed 
440.15 	annually thereafter. At the time initial authorization is obtained, the license holder must 
440.16 	survey, document, and implement the preferences of the person or the person's legal 
440.17 	representative and the case manager for frequency of receiving a statement that itemizes 
440.18 	receipts and disbursements of funds or other property. The license holder must document 
440.19 	changes to these preferences when they are requested.
440.20 	(b) A license holder or staff person may not accept powers-of-attorney from a person 
440.21 	receiving services from the license holder for any purpose. This does not apply to license 
440.22 	holders that are Minnesota counties or other units of government or to staff persons 
440.23 	employed by license holders who were acting as attorney-in-fact for specific individuals 
440.24 	prior to implementation of this chapter. The license holder must maintain documentation 
440.25 	of the power-of-attorney in the service recipient record.
440.26 	(c) A license holder or staff person is restricted from accepting an appointment 
440.27 	as a guardian as follows:
440.28 	(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency 
440.29 	that provides residence, custodial care, medical care, employment training, or other care 
440.30 	or services for which the individual or agency receives a fee may not be appointed as 
440.31 	guardian unless related to the respondent by blood, marriage, or adoption; and
440.32 	(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related 
440.33 	individual as defined under section 245A.02, subdivision 13, is excluded from licensure. 
440.34 	Services provided by a license holder to a person under the license holder's guardianship 
440.35 	are not licensed services.
441.1 	(c) (d) Upon the transfer or death of a person, any funds or other property of the 
441.2 	person must be surrendered to the person or the person's legal representative, or given to 
441.3 	the executor or administrator of the estate in exchange for an itemized receipt.

441.4 	Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is 
441.5 	amended to read:
441.6 		Subd. 6.Restricted procedures. (a) The following procedures are allowed when 
441.7 	the procedures are implemented in compliance with the standards governing their use as 
441.8 	identified in clauses (1) to (3). Allowed but restricted procedures include:
441.9 	(1) permitted actions and procedures subject to the requirements in subdivision 7;
441.10 	(2) procedures identified in a positive support transition plan subject to the 
441.11 	requirements in subdivision 8; or
441.12 	(3) emergency use of manual restraint subject to the requirements in section 
441.13 	245D.061.
441.14 	For purposes of this chapter, this section supersedes the requirements identified in 
441.15 	Minnesota Rules, part 9525.2740.
441.16 	(b) A restricted procedure identified in paragraph (a) must not:
441.17 	(1) be implemented with a child in a manner that constitutes sexual abuse, neglect, 
441.18 	physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
441.19 	(2) be implemented with an adult in a manner that constitutes abuse or neglect as 
441.20 	defined in section 626.5572, subdivision 2 or 17;
441.21 	(3) be implemented in a manner that violates a person's rights identified in section 
441.22 	245D.04;
441.23 	(4) restrict a person's normal access to a nutritious diet, drinking water, adequate 
441.24 	ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping 
441.25 	conditions, necessary clothing, or any protection required by state licensing standards or 
441.26 	federal regulations governing the program;
441.27 	(5) deny the person visitation or ordinary contact with legal counsel, a legal 
441.28 	representative, or next of kin;
441.29 	(6) be used for the convenience of staff, as punishment, as a substitute for adequate 
441.30 	staffing, or as a consequence if the person refuses to participate in the treatment or services 
441.31 	provided by the program;
441.32 	(7) use prone restraint. For purposes of this section, "prone restraint" means use 
441.33 	of manual restraint that places a person in a face-down position. Prone restraint does 
441.34 	not include brief physical holding of a person who, during an emergency use of manual 
442.1 	restraint, rolls into a prone position, if the person is restored to a standing, sitting, or 
442.2 	side-lying position as quickly as possible;
442.3 	(8) apply back or chest pressure while a person is in a prone position as identified in 
442.4 	clause (7), supine position, or side-lying position; or
442.5 	(9) be implemented in a manner that is contraindicated for any of the person's known 
442.6 	medical or psychological limitations.

442.7 	Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is 
442.8 	amended to read:
442.9 		Subd. 7.Permitted actions and procedures. (a) Use of the instructional techniques 
442.10 	and intervention procedures as identified in paragraphs (b) and (c) is permitted when used 
442.11 	on an intermittent or continuous basis. When used on a continuous basis, it must be 
442.12 	addressed in a person's coordinated service and support plan addendum as identified in 
442.13 	sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this 
442.14 	subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
442.15 	(b) Physical contact or instructional techniques must use the least restrictive 
442.16 	alternative possible to meet the needs of the person and may be used:
442.17 	(1) to calm or comfort a person by holding that person with no resistance from 
442.18 	that person;
442.19 	(2) to protect a person known to be at risk or of  injury due to frequent falls as a result 
442.20 	of a medical condition;
442.21 	(3) to facilitate the person's completion of a task or response when the person does 
442.22 	not resist or the person's resistance is minimal in intensity and duration; or
442.23 	(4) to briefly block or redirect a person's limbs or body without holding the person or 
442.24 	limiting the person's movement to interrupt the person's behavior that may result in injury 
442.25 	to self or others. with less than 60 seconds of physical contact by staff; or
442.26 	(5) to redirect a person's behavior when the behavior does not pose a serious threat 
442.27 	to the person or others and the behavior is effectively redirected with less than 60 seconds 
442.28 	of physical contact by staff.
442.29 	(c) Restraint may be used as an intervention procedure to:
442.30 	(1) allow a licensed health care professional to safely conduct a medical examination 
442.31 	or to provide medical treatment ordered by a licensed health care professional to a person 
442.32 	necessary to promote healing or recovery from an acute, meaning short-term, medical 
442.33 	condition;
442.34 	(2) assist in the safe evacuation or redirection of a person in the event of an 
442.35 	emergency and the person is at imminent risk of harm.; or
443.1 	Any use of manual restraint as allowed in this paragraph must comply with the restrictions 
443.2 	identified in section 245D.061, subdivision 3; or
443.3 	(3) position a person with physical disabilities in a manner specified in the person's 
443.4 	coordinated service and support plan addendum.
443.5 	Any use of manual restraint as allowed in this paragraph must comply with the restrictions 
443.6 	identified in subdivision 6, paragraph (b).
443.7 	(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment 
443.8 	ordered by a licensed health professional to treat a diagnosed medical condition do not in 
443.9 	and of themselves constitute the use of mechanical restraint.

443.10 	Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is 
443.11 	amended to read:
443.12 		Subd. 8.Positive support transition plan. (a) License holders must develop 
443.13 	a positive support transition plan on the forms and in the manner prescribed by the 
443.14 	commissioner for a person who requires intervention in order to maintain safety when 
443.15 	it is known that the person's behavior poses an immediate risk of physical harm to self 
443.16 	or others. The positive support transition plan forms and instructions will supersede the 
443.17 	requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The 
443.18 	positive support transition plan must phase out any existing plans for the emergency 
443.19 	or programmatic use of aversive or deprivation procedures restrictive interventions
443.20 	 prohibited under this chapter within the following timelines:
443.21 	(1) for persons receiving services from the license holder before January 1, 2014, 
443.22 	the plan must be developed and implemented by February 1, 2014, and phased out no 
443.23 	later than December 31, 2014; and
443.24 	(2) for persons admitted to the program on or after January 1, 2014, the plan must be 
443.25 	developed and implemented within 30 calendar days of service initiation and phased out 
443.26 	no later than 11 months from the date of plan implementation.
443.27 	(b) The commissioner has limited authority to grant approval for the emergency use 
443.28 	of procedures identified in subdivision 6 that had been part of an approved positive support 
443.29 	transition plan when a person is at imminent risk of serious injury as defined in section 
443.30 	245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
443.31 	(1) the person's expanded support team approves the emergency use of the 
443.32 	procedures; and
443.33 	(2) the interim review panel established in section 245.8251, subdivision 4, 
443.34 	recommends commissioner approval of the emergency use of the procedures.
444.1 	(c) Written requests for the emergency use of the procedures must be developed 
444.2 	and submitted to the commissioner by the designated coordinator with input from the 
444.3 	person's expanded support team in accordance with the requirements set by the interim 
444.4 	review panel, in addition to the following:
444.5 	(1) a copy of the person's current positive support transition plan and copies of 
444.6 	each positive support transition plan review containing data on the progress of the plan 
444.7 	from the previous year;
444.8 	(2) documentation of a good faith effort to eliminate the use of the procedures that 
444.9 	had been part of an approved positive support transition plan;
444.10 	(3) justification for the continued use of the procedures that identifies the imminent 
444.11 	risk of serious injury due to the person's self-injurious behavior if the procedures were 
444.12 	eliminated;
444.13 	(4) documentation of the clinicians consulted in creating and maintaining the 
444.14 	positive support transition plan; and
444.15 	(5) documentation of the expanded support team's approval and the recommendation 
444.16 	from the interim panel required under paragraph (b).
444.17 	(d) A copy of the written request, supporting documentation, and the commissioner's 
444.18 	final determination on the request must be maintained in the person's service recipient 
444.19 	record.

444.20 	Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3, 
444.21 	is amended to read:
444.22 		Subd. 3.Assessment and initial service planning. (a) Within 15 days of service 
444.23 	initiation the license holder must complete a preliminary coordinated service and support 
444.24 	plan addendum based on the coordinated service and support plan.
444.25 	(b) Within 45 days of service initiation the license holder must meet with the person, 
444.26 	the person's legal representative, the case manager, and other members of the support team 
444.27 	or expanded support team to assess and determine the following based on the person's 
444.28 	coordinated service and support plan and the requirements in subdivision 4 and section 
444.29 	245D.07, subdivision 1a:
444.30 	(1) the scope of the services to be provided to support the person's daily needs 
444.31 	and activities;
444.32 	(2) the person's desired outcomes and the supports necessary to accomplish the 
444.33 	person's desired outcomes;
444.34 	(3) the person's preferences for how services and supports are provided;
445.1 	(4) whether the current service setting is the most integrated setting available and 
445.2 	appropriate for the person; and
445.3 	(5) how services must be coordinated across other providers licensed under this 
445.4 	chapter serving the same person to ensure continuity of care for the person.
445.5 	(c) Within the scope of services, the license holder must, at a minimum, assess 
445.6 	the following areas:
445.7 	(1) the person's ability to self-manage health and medical needs to maintain or 
445.8 	improve physical, mental, and emotional well-being, including, when applicable, allergies, 
445.9 	seizures, choking, special dietary needs, chronic medical conditions, self-administration 
445.10 	of medication or treatment orders, preventative screening, and medical and dental 
445.11 	appointments;
445.12 	(2) the person's ability to self-manage personal safety to avoid injury or accident in 
445.13 	the service setting, including, when applicable, risk of falling, mobility, regulating water 
445.14 	temperature, community survival skills, water safety skills, and sensory disabilities; and
445.15 	(3) the person's ability to self-manage symptoms or behavior that may otherwise 
445.16 	result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to 
445.17 	(7), suspension or termination of services by the license holder, or other symptoms 
445.18 	or behaviors that may jeopardize the health and safety of the person or others. The 
445.19 	assessments must produce information about the person that is descriptive of the person's 
445.20 	overall strengths, functional skills and abilities, and behaviors or symptoms.
445.21 	(b) Within the scope of services, the license holder must, at a minimum, complete 
445.22 	assessments in the following areas before the 45-day planning meeting:
445.23 	(1) the person's ability to self-manage health and medical needs to maintain or 
445.24 	improve physical, mental, and emotional well-being, including, when applicable, allergies, 
445.25 	seizures, choking, special dietary needs, chronic medical conditions, self-administration 
445.26 	of medication or treatment orders, preventative screening, and medical and dental 
445.27 	appointments;
445.28 	(2) the person's ability to self-manage personal safety to avoid injury or accident in 
445.29 	the service setting, including, when applicable, risk of falling, mobility, regulating water 
445.30 	temperature, community survival skills, water safety skills, and sensory disabilities; and
445.31 	(3) the person's ability to self-manage symptoms or behavior that may otherwise 
445.32 	result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7), 
445.33 	suspension or termination of services by the license holder, or other symptoms or 
445.34 	behaviors that may jeopardize the health and safety of the person or others.
445.35 	Assessments must produce information about the person that describes the person's overall 
445.36 	strengths, functional skills and abilities, and behaviors or symptoms. Assessments must 
446.1 	be based on the person's status within the last 12 months at the time of service initiation. 
446.2 	Assessments based on older information must be documented and justified. Assessments 
446.3 	must be conducted annually at a minimum or within 30 days of a written request from the 
446.4 	person or the person's legal representative or case manager. The results must be reviewed 
446.5 	by the support team or expanded support team as part of a service plan review.
446.6 	(c) Within 45 days of service initiation, the license holder must meet with the 
446.7 	person, the person's legal representative, the case manager, and other members of the 
446.8 	support team or expanded support team to determine the following based on information 
446.9 	obtained from the assessments identified in paragraph (b), the person's identified needs 
446.10 	in the coordinated service and support plan, and the requirements in subdivision 4 and 
446.11 	section 245D.07, subdivision 1a:
446.12 	(1) the scope of the services to be provided to support the person's daily needs 
446.13 	and activities;
446.14 	(2) the person's desired outcomes and the supports necessary to accomplish the 
446.15 	person's desired outcomes;
446.16 	(3) the person's preferences for how services and supports are provided;
446.17 	(4) whether the current service setting is the most integrated setting available and 
446.18 	appropriate for the person; and
446.19 	(5) how services must be coordinated across other providers licensed under this 
446.20 	chapter serving the person and members of the support team or expanded support team to 
446.21 	ensure continuity of care and coordination of services for the person.

446.22 	Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4, 
446.23 	is amended to read:
446.24 		Subd. 4.Service outcomes and supports. (a) Within ten working days of the 
446.25 	45-day planning meeting, the license holder must develop and document a service plan that 
446.26 	documents the service outcomes and supports based on the assessments completed under 
446.27 	subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and 
446.28 	supports must be included in the coordinated service and support plan addendum.
446.29 	(b) The license holder must document the supports and methods to be implemented 
446.30 	to support the accomplishment of person and accomplish outcomes related to acquiring, 
446.31 	retaining, or improving skills and physical, mental, and emotional health and well-being. 
446.32 	The documentation must include:
446.33 	(1) the methods or actions that will be used to support the person and to accomplish 
446.34 	the service outcomes, including information about:
447.1 	(i) any changes or modifications to the physical and social environments necessary 
447.2 	when the service supports are provided;
447.3 	(ii) any equipment and materials required; and
447.4 	(iii) techniques that are consistent with the person's communication mode and 
447.5 	learning style;
447.6 	(2) the measurable and observable criteria for identifying when the desired outcome 
447.7 	has been achieved and how data will be collected;
447.8 	(3) the projected starting date for implementing the supports and methods and 
447.9 	the date by which progress towards accomplishing the outcomes will be reviewed and 
447.10 	evaluated; and
447.11 	(4) the names of the staff or position responsible for implementing the supports 
447.12 	and methods.
447.13 	(c) Within 20 working days of the 45-day meeting, the license holder must obtain 
447.14 	dated signatures from the person or the person's legal representative and case manager 
447.15 	to document completion and approval of the assessment and coordinated service and 
447.16 	support plan addendum.

447.17 	Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5, 
447.18 	is amended to read:
447.19 		Subd. 5.Progress reviews Service plan review and evaluation. (a) The license 
447.20 	holder must give the person or the person's legal representative and case manager an 
447.21 	opportunity to participate in the ongoing review and development of the service plan 
447.22 	and the methods used to support the person and accomplish outcomes identified in 
447.23 	subdivisions 3 and 4. The license holder, in coordination with the person's support team 
447.24 	or expanded support team, must meet with the person, the person's legal representative, 
447.25 	and the case manager, and participate in progress service plan review meetings following 
447.26 	stated timelines established in the person's coordinated service and support plan or 
447.27 	coordinated service and support plan addendum or within 30 days of a written request 
447.28 	by the person, the person's legal representative, or the case manager, at a minimum of 
447.29 	once per year. The purpose of the service plan review is to determine whether changes 
447.30 	are needed to the service plan based on the assessment information, the license holder's 
447.31 	evaluation of progress towards accomplishing outcomes, or other information provided by 
447.32 	the support team or expanded support team.
447.33 	(b) The license holder must summarize the person's status and progress toward 
447.34 	achieving the identified outcomes and make recommendations and identify the rationale 
447.35 	for changing, continuing, or discontinuing implementation of supports and methods 
448.1 	identified in subdivision 4 in a written report sent to the person or the person's legal 
448.2 	representative and case manager five working days prior to the review meeting, unless 
448.3 	the person, the person's legal representative, or the case manager requests to receive the 
448.4 	report at the time of the meeting.
448.5 	(c) Within ten working days of the progress review meeting, the license holder 
448.6 	must obtain dated signatures from the person or the person's legal representative and 
448.7 	the case manager to document approval of any changes to the coordinated service and 
448.8 	support plan addendum.

448.9 	Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2, 
448.10 	is amended to read:
448.11 		Subd. 2.Coordination and evaluation of individual service delivery. (a) Delivery 
448.12 	and evaluation of services provided by the license holder must be coordinated by a 
448.13 	designated staff person. The designated coordinator must provide supervision, support, 
448.14 	and evaluation of activities that include:
448.15 	(1) oversight of the license holder's responsibilities assigned in the person's 
448.16 	coordinated service and support plan and the coordinated service and support plan 
448.17 	addendum;
448.18 	(2) taking the action necessary to facilitate the accomplishment of the outcomes 
448.19 	according to the requirements in section 245D.07;
448.20 	(3) instruction and assistance to direct support staff implementing the coordinated 
448.21 	service and support plan and the service outcomes, including direct observation of service 
448.22 	delivery sufficient to assess staff competency; and
448.23 	(4) evaluation of the effectiveness of service delivery, methodologies, and progress on 
448.24 	the person's outcomes based on the measurable and observable criteria for identifying when 
448.25 	the desired outcome has been achieved according to the requirements in section 245D.07.
448.26 	(b) The license holder must ensure that the designated coordinator is competent to 
448.27 	perform the required duties identified in paragraph (a) through education and, training 
448.28 	in human services and disability-related fields, and work experience in providing direct 
448.29 	care services and supports to persons with disabilities relevant to the primary disability of 
448.30 	persons served by the license holder and the individual persons for whom the designated 
448.31 	coordinator is responsible. The designated coordinator must have the skills and ability 
448.32 	necessary to develop effective plans and to design and use data systems to measure 
448.33 	effectiveness of services and supports. The license holder must verify and document 
448.34 	competence according to the requirements in section 245D.09, subdivision 3. The 
448.35 	designated coordinator must minimally have:
449.1 	(1) a baccalaureate degree in a field related to human services, and one year of 
449.2 	full-time work experience providing direct care services to persons with disabilities or 
449.3 	persons age 65 and older;
449.4 	(2) an associate degree in a field related to human services, and two years of 
449.5 	full-time work experience providing direct care services to persons with disabilities or 
449.6 	persons age 65 and older;
449.7 	(3) a diploma in a field related to human services from an accredited postsecondary 
449.8 	institution and three years of full-time work experience providing direct care services to 
449.9 	persons with disabilities or persons age 65 and older; or
449.10 	(4) a minimum of 50 hours of education and training related to human services 
449.11 	and disabilities; and
449.12 	(5) four years of full-time work experience providing direct care services to persons 
449.13 	with disabilities or persons age 65 and older under the supervision of a staff person who 
449.14 	meets the qualifications identified in clauses (1) to (3).

449.15 	Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is 
449.16 	amended to read:
449.17 		Subd. 3.Staff qualifications. (a) The license holder must ensure that staff providing 
449.18 	direct support, or staff who have responsibilities related to supervising or managing the 
449.19 	provision of direct support service, are competent as demonstrated through skills and 
449.20 	knowledge training, experience, and education relevant to the primary disability of the 
449.21 	person and to meet the person's needs and additional requirements as written in the 
449.22 	coordinated service and support plan or coordinated service and support plan addendum, 
449.23 	or when otherwise required by the case manager or the federal waiver plan. The license 
449.24 	holder must verify and maintain evidence of staff competency, including documentation of:
449.25 	(1) education and experience qualifications relevant to the job responsibilities 
449.26 	assigned to the staff and to the needs of the general population primary disability of 
449.27 	persons served by the program, including a valid degree and transcript, or a current license, 
449.28 	registration, or certification, when a degree or licensure, registration, or certification is 
449.29 	required by this chapter or in the coordinated service and support plan or coordinated 
449.30 	service and support plan addendum;
449.31 	(2) demonstrated competency in the orientation and training areas required under 
449.32 	this chapter, and when applicable, completion of continuing education required to 
449.33 	maintain professional licensure, registration, or certification requirements. Competency in 
449.34 	these areas is determined by the license holder through knowledge testing and or observed 
449.35 	skill assessment conducted by the trainer or instructor; and
450.1 	(3) except for a license holder who is the sole direct support staff, periodic 
450.2 	performance evaluations completed by the license holder of the direct support staff 
450.3 	person's ability to perform the job functions based on direct observation.
450.4 	(b) Staff under 18 years of age may not perform overnight duties or administer 
450.5 	medication.

450.6 	Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a, 
450.7 	is amended to read:
450.8 		Subd. 4a.Orientation to individual service recipient needs. (a) Before having 
450.9 	unsupervised direct contact with a person served by the program, or for whom the staff 
450.10 	person has not previously provided direct support, or any time the plans or procedures 
450.11 	identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive 
450.12 	instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff 
450.13 	person's job functions for that person.
450.14 	(b) Training and competency evaluations must include the following:
450.15 	(1) appropriate and safe techniques in personal hygiene and grooming, including 
450.16 	hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of 
450.17 	daily living (ADLs) as defined under section 256B.0659, subdivision 1;
450.18 	(2) an understanding of what constitutes a healthy diet according to data from the 
450.19 	Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
450.20 	(3) skills necessary to provide appropriate support in instrumental activities of daily 
450.21 	living (IADLs) as defined under section 256B.0659, subdivision 1; and
450.22 	(4) demonstrated competence in providing first aid.
450.23 	(c) The staff person must review and receive instruction on the person's coordinated 
450.24 	service and support plan or coordinated service and support plan addendum as it relates 
450.25 	to the responsibilities assigned to the license holder, and when applicable, the person's 
450.26 	individual abuse prevention plan, to achieve and demonstrate an understanding of the 
450.27 	person as a unique individual, and how to implement those plans.
450.28 	(d) The staff person must review and receive instruction on medication setup, 
450.29 	assistance, or administration procedures established for the person when medication 
450.30 	administration is assigned to the license holder according to section 245D.05, subdivision 
450.31 	1, paragraph (b). Unlicensed staff may administer medications perform medication setup 
450.32 	or medication administration only after successful completion of a medication setup or 
450.33 	medication administration training, from a training curriculum developed by a registered 
450.34 	nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse 
450.35 	practitioner, physician's assistant, or physician or appropriate licensed health professional. 
451.1 	The training curriculum must incorporate an observed skill assessment conducted by the 
451.2 	trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow 
451.3 	medication procedures.
451.4 	Medication administration must be taught by a registered nurse, clinical nurse 
451.5 	specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of 
451.6 	service initiation or any time thereafter, the person has or develops a health care condition 
451.7 	that affects the service options available to the person because the condition requires:
451.8 	(1) specialized or intensive medical or nursing supervision; and
451.9 	(2) nonmedical service providers to adapt their services to accommodate the health 
451.10 	and safety needs of the person.
451.11 	(e) The staff person must review and receive instruction on the safe and correct 
451.12 	operation of medical equipment used by the person to sustain life, including but not 
451.13 	limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided 
451.14 	by a licensed health care professional or a manufacturer's representative and incorporate 
451.15 	an observed skill assessment to ensure staff demonstrate the ability to safely and correctly 
451.16 	operate the equipment according to the treatment orders and the manufacturer's instructions.
451.17 	(f) The staff person must review and receive instruction on what constitutes use of 
451.18 	restraints, time out, and seclusion, including chemical restraint, and staff responsibilities 
451.19 	related to the prohibitions of their use according to the requirements in section 245D.06, 
451.20 	subdivision 5 or successor provisions, why such procedures are not effective for reducing 
451.21 	or eliminating symptoms or undesired behavior and why they are not safe, and the safe 
451.22 	and correct use of manual restraint on an emergency basis according to the requirements 
451.23 	in section 245D.061or successor provisions.
451.24 	(g) The staff person must review and receive instruction on mental health crisis 
451.25 	response, de-escalation techniques, and suicide intervention when providing direct support 
451.26 	to a person with a serious mental illness.
451.27 	(g)(h) In the event of an emergency service initiation, the license holder must ensure 
451.28 	the training required in this subdivision occurs within 72 hours of the direct support staff 
451.29 	person first having unsupervised contact with the person receiving services. The license 
451.30 	holder must document the reason for the unplanned or emergency service initiation and 
451.31 	maintain the documentation in the person's service recipient record.
451.32 	(h)(i) License holders who provide direct support services themselves must 
451.33 	complete the orientation required in subdivision 4, clauses (3) to (7).

451.34 	Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2, 
451.35 	is amended to read:
452.1 		Subd. 2.Behavior professional qualifications. A behavior professional providing 
452.2 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 
452.3 	clause (1), item (i), as defined in the brain injury and community alternatives for disabled 
452.4 	individuals waiver plans or successor plans, must have competencies in the following 
452.5 	areas related to as required under the brain injury and community alternatives for disabled 
452.6 	individuals waiver plans or successor plans:
452.7 	(1) ethical considerations;
452.8 	(2) functional assessment;
452.9 	(3) functional analysis;
452.10 	(4) measurement of behavior and interpretation of data;
452.11 	(5) selecting intervention outcomes and strategies;
452.12 	(6) behavior reduction and elimination strategies that promote least restrictive 
452.13 	approved alternatives;
452.14 	(7) data collection;
452.15 	(8) staff and caregiver training;
452.16 	(9) support plan monitoring;
452.17 	(10) co-occurring mental disorders or neurocognitive disorder;
452.18 	(11) demonstrated expertise with populations being served; and
452.19 	(12) must be a:
452.20 	(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the 
452.21 	Board of Psychology competencies in the above identified areas;
452.22 	(ii) clinical social worker licensed as an independent clinical social worker under 
452.23 	chapter 148D, or a person with a master's degree in social work from an accredited college 
452.24 	or university, with at least 4,000 hours of post-master's supervised experience in the 
452.25 	delivery of clinical services in the areas identified in clauses (1) to (11);
452.26 	(iii) physician licensed under chapter 147 and certified by the American Board 
452.27 	of Psychiatry and Neurology or eligible for board certification in psychiatry with 
452.28 	competencies in the areas identified in clauses (1) to (11);
452.29 	(iv) licensed professional clinical counselor licensed under sections 148B.29 to 
452.30 	148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery 
452.31 	of clinical services who has demonstrated competencies in the areas identified in clauses 
452.32 	(1) to (11);
452.33 	(v) person with a master's degree from an accredited college or university in one 
452.34 	of the behavioral sciences or related fields, with at least 4,000 hours of post-master's 
452.35 	supervised experience in the delivery of clinical services with demonstrated competencies 
452.36 	in the areas identified in clauses (1) to (11); or
453.1 	(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is 
453.2 	certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 
453.3 	mental health nursing by a national nurse certification organization, or who has a master's 
453.4 	degree in nursing or one of the behavioral sciences or related fields from an accredited 
453.5 	college or university or its equivalent, with at least 4,000 hours of post-master's supervised 
453.6 	experience in the delivery of clinical services.

453.7 	Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3, 
453.8 	is amended to read:
453.9 		Subd. 3.Behavior analyst qualifications. (a) A behavior analyst providing 
453.10 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph 
453.11 	(c), clause (1), item (i), as defined in the brain injury and community alternatives for 
453.12 	disabled individuals waiver plans or successor plans, must have competencies in the 
453.13 	following areas as required under the brain injury and community alternatives for disabled 
453.14 	individuals waiver plans or successor plans:
453.15 	(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services 
453.16 	discipline; or
453.17 	(2) meet the qualifications of a mental health practitioner as defined in section 
453.18 	245.462, subdivision 17.
453.19 	(b) In addition, a behavior analyst must:
453.20 	(1) have four years of supervised experience working with individuals who exhibit 
453.21 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
453.22 	(2) have received ten hours of instruction in functional assessment and functional 
453.23 	analysis;
453.24 	(3) have received 20 hours of instruction in the understanding of the function of 
453.25 	behavior;
453.26 	(4) have received ten hours of instruction on design of positive practices behavior 
453.27 	support strategies;
453.28 	(5) have received 20 hours of instruction on the use of behavior reduction approved 
453.29 	strategies used only in combination with behavior positive practices strategies;
453.30 	(6) be determined by a behavior professional to have the training and prerequisite 
453.31 	skills required to provide positive practice strategies as well as behavior reduction 
453.32 	approved and permitted intervention to the person who receives behavioral support; and
453.33 	(7) be under the direct supervision of a behavior professional.

454.1 	Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4, 
454.2 	is amended to read:
454.3 		Subd. 4.Behavior specialist qualifications. (a) A behavior specialist providing 
454.4 	behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c), 
454.5 	clause (1), item (i), as defined in the brain injury and community alternatives for disabled 
454.6 	individuals waiver plans or successor plans, must meet the following qualifications have 
454.7 	competencies in the following areas as required under the brain injury and community 
454.8 	alternatives for disabled individuals waiver plans or successor plans:
454.9 	(1) have an associate's degree in a social services discipline; or
454.10 	(2) have two years of supervised experience working with individuals who exhibit 
454.11 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
454.12 	(b) In addition, a behavior specialist must:
454.13 	(1) have received a minimum of four hours of training in functional assessment;
454.14 	(2) have received 20 hours of instruction in the understanding of the function of 
454.15 	behavior;
454.16 	(3) have received ten hours of instruction on design of positive practices behavioral 
454.17 	support strategies;
454.18 	(4) be determined by a behavior professional to have the training and prerequisite 
454.19 	skills required to provide positive practices strategies as well as behavior reduction 
454.20 	approved intervention to the person who receives behavioral support; and
454.21 	(5) be under the direct supervision of a behavior professional.

454.22 	Sec. 46. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is 
454.23 	amended to read:
454.24 		Subd. 3.Service suspension and service termination. (a) The license holder must 
454.25 	establish policies and procedures for temporary service suspension and service termination 
454.26 	that promote continuity of care and service coordination with the person and the case 
454.27 	manager and with other licensed caregivers, if any, who also provide support to the person.
454.28 	(b) The policy must include the following requirements:
454.29 	(1) the license holder must notify the person or the person's legal representative and 
454.30 	case manager in writing of the intended termination or temporary service suspension, and 
454.31 	the person's right to seek a temporary order staying the termination of service according to 
454.32 	the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
454.33 	(2) notice of the proposed termination of services, including those situations that 
454.34 	began with a temporary service suspension, must be given at least 60 days before the 
454.35 	proposed termination is to become effective when a license holder is providing intensive 
455.1 	supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30 
455.2 	days prior to termination for all other services licensed under this chapter. This notice 
455.3 	may be given in conjunction with a notice of temporary service suspension;
455.4 	(3) notice of temporary service suspension must be given on the first day of the 
455.5 	service suspension;
455.6 	(3) (4) the license holder must provide information requested by the person or case 
455.7 	manager when services are temporarily suspended or upon notice of termination;
455.8 	(4) (5) prior to giving notice of service termination or temporary service suspension, 
455.9 	the license holder must document actions taken to minimize or eliminate the need for 
455.10 	service suspension or termination;
455.11 	(5) (6) during the temporary service suspension or service termination notice period, 
455.12 	the license holder will must work with the appropriate county agency support team or 
455.13 	expanded support team to develop reasonable alternatives to protect the person and others;
455.14 	(6) (7) the license holder must maintain information about the service suspension or 
455.15 	termination, including the written termination notice, in the service recipient record; and
455.16 	(7) (8) the license holder must restrict temporary service suspension to situations in 
455.17 	which the person's conduct poses an imminent risk of physical harm to self or others and 
455.18 	less restrictive or positive support strategies would not achieve and maintain safety.

455.19 	Sec. 47. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is 
455.20 	amended to read:
455.21 		Subd. 4.Availability of current written policies and procedures. (a) The license 
455.22 	holder must review and update, as needed, the written policies and procedures required 
455.23 	under this chapter.
455.24 	(b) (1) The license holder must inform the person and case manager of the policies 
455.25 	and procedures affecting a person's rights under section 245D.04, and provide copies of 
455.26 	those policies and procedures, within five working days of service initiation.
455.27 	(2) If a license holder only provides basic services and supports, this includes the:
455.28 	(i) grievance policy and procedure required under subdivision 2; and
455.29 	(ii) service suspension and termination policy and procedure required under 
455.30 	subdivision 3.
455.31 	(3) For all other license holders this includes the:
455.32 	(i) policies and procedures in clause (2);
455.33 	(ii) emergency use of manual restraints policy and procedure required under section 
455.34 	245D.061, subdivision 10, or successor provisions; and
455.35 	(iii) data privacy requirements under section 245D.11, subdivision 3.
456.1 	(c) The license holder must provide a written notice to all persons or their legal 
456.2 	representatives and case managers at least 30 days before implementing any procedural 
456.3 	revisions to policies affecting a person's service-related or protection-related rights under 
456.4 	section 245D.04 and maltreatment reporting policies and procedures. The notice must 
456.5 	explain the revision that was made and include a copy of the revised policy and procedure. 
456.6 	The license holder must document the reasonable cause for not providing the notice at 
456.7 	least 30 days before implementing the revisions.
456.8 	(d) Before implementing revisions to required policies and procedures, the license 
456.9 	holder must inform all employees of the revisions and provide training on implementation 
456.10 	of the revised policies and procedures.
456.11 	(e) The license holder must annually notify all persons, or their legal representatives, 
456.12 	and case managers of any procedural revisions to policies required under this chapter, 
456.13 	other than those in paragraph (c). Upon request, the license holder must provide the 
456.14 	person, or the person's legal representative, and case manager with copies of the revised 
456.15 	policies and procedures.

456.16 	Sec. 48. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is 
456.17 	amended to read:
456.18 		Subd. 2.Health and safety. The license holder must establish policies and 
456.19 	procedures that promote health and safety by ensuring:
456.20 	(1) use of universal precautions and sanitary practices in compliance with section 
456.21 	245D.06, subdivision 2, clause (5);
456.22 	(2) if the license holder operates a residential program, health service coordination 
456.23 	and care according to the requirements in section 245D.05, subdivision 1;
456.24 	(3) safe medication assistance and administration according to the requirements 
456.25 	in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in 
456.26 	consultation with a registered nurse, nurse practitioner, physician's assistant, or medical 
456.27 	doctor and require completion of medication administration training according to the 
456.28 	requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance 
456.29 	and administration includes, but is not limited to:
456.30 	(i) providing medication-related services for a person;
456.31 	(ii) medication setup;
456.32 	(iii) medication administration;
456.33 	(iv) medication storage and security;
456.34 	(v) medication documentation and charting;
457.1 	(vi) verification and monitoring of effectiveness of systems to ensure safe medication 
457.2 	handling and administration;
457.3 	(vii) coordination of medication refills;
457.4 	(viii) handling changes to prescriptions and implementation of those changes;
457.5 	(ix) communicating with the pharmacy; and
457.6 	(x) coordination and communication with prescriber;
457.7 	(4) safe transportation, when the license holder is responsible for transportation of 
457.8 	persons, with provisions for handling emergency situations according to the requirements 
457.9 	in section 245D.06, subdivision 2, clauses (2) to (4);
457.10 	(5) a plan for ensuring the safety of persons served by the program in emergencies as 
457.11 	defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies 
457.12 	to the license holder. A license holder with a community residential setting or a day service 
457.13 	facility license must ensure the policy and procedures comply with the requirements in 
457.14 	section 245D.22, subdivision 4;
457.15 	(6) a plan for responding to all incidents as defined in section 245D.02, subdivision 
457.16 	11; and reporting all incidents required to be reported according to section 245D.06, 
457.17 	subdivision 1. The plan must:
457.18 	(i) provide the contact information of a source of emergency medical care and 
457.19 	transportation; and
457.20 	(ii) require staff to first call 911 when the staff believes a medical emergency may 
457.21 	be life threatening, or to call the mental health crisis intervention team or similar mental 
457.22 	health response team or service when such a team is available and appropriate when the 
457.23 	person is experiencing a mental health crisis; and
457.24 	(7) a procedure for the review of incidents and emergencies to identify trends or 
457.25 	patterns, and corrective action if needed. The license holder must establish and maintain 
457.26 	a record-keeping system for the incident and emergency reports. Each incident and 
457.27 	emergency report file must contain a written summary of the incident. The license holder 
457.28 	must conduct a review of incident reports for identification of incident patterns, and 
457.29 	implementation of corrective action as necessary to reduce occurrences. Each incident 
457.30 	report must include:
457.31 	(i) the name of the person or persons involved in the incident. It is not necessary 
457.32 	to identify all persons affected by or involved in an emergency unless the emergency 
457.33 	resulted in an incident;
457.34 	(ii) the date, time, and location of the incident or emergency;
457.35 	(iii) a description of the incident or emergency;
458.1 	(iv) a description of the response to the incident or emergency and whether a person's 
458.2 	coordinated service and support plan addendum or program policies and procedures were 
458.3 	implemented as applicable;
458.4 	(v) the name of the staff person or persons who responded to the incident or 
458.5 	emergency; and
458.6 	(vi) the determination of whether corrective action is necessary based on the results 
458.7 	of the review.

458.8 	Sec. 49. Minnesota Statutes 2013 Supplement, section 252.27, subdivision 2a, is 
458.9 	amended to read:
458.10 		Subd. 2a.Contribution amount. (a) The natural or adoptive parents of a minor 
458.11 	child, including a child determined eligible for medical assistance without consideration of 
458.12 	parental income, must contribute to the cost of services used by making monthly payments 
458.13 	on a sliding scale based on income, unless the child is married or has been married, parental 
458.14 	rights have been terminated, or the child's adoption is subsidized according to chapter 
458.15 	259A or through title IV-E of the Social Security Act. The parental contribution is a partial 
458.16 	or full payment for medical services provided for diagnostic, therapeutic, curing, treating, 
458.17 	mitigating, rehabilitation, maintenance, and personal care services as defined in United 
458.18 	States Code, title 26, section 213, needed by the child with a chronic illness or disability.
458.19 	(b) For households with adjusted gross income equal to or greater than 275 percent 
458.20 	of federal poverty guidelines, the parental contribution shall be computed by applying the 
458.21 	following schedule of rates to the adjusted gross income of the natural or adoptive parents:
458.22 	(1) if the adjusted gross income is equal to or greater than 275 percent of federal 
458.23 	poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, 
458.24 	the parental contribution shall be determined using a sliding fee scale established by the 
458.25 	commissioner of human services which begins at 2.762.48 percent of adjusted gross 
458.26 	income at 275 percent of federal poverty guidelines and increases to 7.56.75 percent of 
458.27 	adjusted gross income for those with adjusted gross income up to 545 percent of federal 
458.28 	poverty guidelines;
458.29 	(2) if the adjusted gross income is greater than 545 percent of federal poverty 
458.30 	guidelines and less than 675 percent of federal poverty guidelines, the parental 
458.31 	contribution shall be 7.56.75 percent of adjusted gross income;
458.32 	(3) if the adjusted gross income is equal to or greater than 675 percent of federal 
458.33 	poverty guidelines and less than 975 percent of federal poverty guidelines, the parental 
458.34 	contribution shall be determined using a sliding fee scale established by the commissioner 
458.35 	of human services which begins at 7.56.75 percent of adjusted gross income at 675 percent 
459.1 	of federal poverty guidelines and increases to tennine percent of adjusted gross income 
459.2 	for those with adjusted gross income up to 975 percent of federal poverty guidelines; and
459.3 	(4) if the adjusted gross income is equal to or greater than 975 percent of federal 
459.4 	poverty guidelines, the parental contribution shall be 12.511.25 percent of adjusted 
459.5 	gross income.
459.6 	If the child lives with the parent, the annual adjusted gross income is reduced by 
459.7 	$2,400 prior to calculating the parental contribution. If the child resides in an institution 
459.8 	specified in section 256B.35, the parent is responsible for the personal needs allowance 
459.9 	specified under that section in addition to the parental contribution determined under this 
459.10 	section. The parental contribution is reduced by any amount required to be paid directly to 
459.11 	the child pursuant to a court order, but only if actually paid.
459.12 	(c) The household size to be used in determining the amount of contribution under 
459.13 	paragraph (b) includes natural and adoptive parents and their dependents, including the 
459.14 	child receiving services. Adjustments in the contribution amount due to annual changes 
459.15 	in the federal poverty guidelines shall be implemented on the first day of July following 
459.16 	publication of the changes.
459.17 	(d) For purposes of paragraph (b), "income" means the adjusted gross income of the 
459.18 	natural or adoptive parents determined according to the previous year's federal tax form, 
459.19 	except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds 
459.20 	have been used to purchase a home shall not be counted as income.
459.21 	(e) The contribution shall be explained in writing to the parents at the time eligibility 
459.22 	for services is being determined. The contribution shall be made on a monthly basis 
459.23 	effective with the first month in which the child receives services. Annually upon 
459.24 	redetermination or at termination of eligibility, if the contribution exceeded the cost of 
459.25 	services provided, the local agency or the state shall reimburse that excess amount to 
459.26 	the parents, either by direct reimbursement if the parent is no longer required to pay a 
459.27 	contribution, or by a reduction in or waiver of parental fees until the excess amount is 
459.28 	exhausted. All reimbursements must include a notice that the amount reimbursed may be 
459.29 	taxable income if the parent paid for the parent's fees through an employer's health care 
459.30 	flexible spending account under the Internal Revenue Code, section 125, and that the 
459.31 	parent is responsible for paying the taxes owed on the amount reimbursed.
459.32 	(f) The monthly contribution amount must be reviewed at least every 12 months; 
459.33 	when there is a change in household size; and when there is a loss of or gain in income 
459.34 	from one month to another in excess of ten percent. The local agency shall mail a written 
459.35 	notice 30 days in advance of the effective date of a change in the contribution amount. 
460.1 	A decrease in the contribution amount is effective in the month that the parent verifies a 
460.2 	reduction in income or change in household size.
460.3 	(g) Parents of a minor child who do not live with each other shall each pay the 
460.4 	contribution required under paragraph (a). An amount equal to the annual court-ordered 
460.5 	child support payment actually paid on behalf of the child receiving services shall be 
460.6 	deducted from the adjusted gross income of the parent making the payment prior to 
460.7 	calculating the parental contribution under paragraph (b).
460.8 	(h) The contribution under paragraph (b) shall be increased by an additional five 
460.9 	percent if the local agency determines that insurance coverage is available but not 
460.10 	obtained for the child. For purposes of this section, "available" means the insurance is a 
460.11 	benefit of employment for a family member at an annual cost of no more than five percent 
460.12 	of the family's annual income. For purposes of this section, "insurance" means health 
460.13 	and accident insurance coverage, enrollment in a nonprofit health service plan, health 
460.14 	maintenance organization, self-insured plan, or preferred provider organization.
460.15 	Parents who have more than one child receiving services shall not be required 
460.16 	to pay more than the amount for the child with the highest expenditures. There shall 
460.17 	be no resource contribution from the parents. The parent shall not be required to pay 
460.18 	a contribution in excess of the cost of the services provided to the child, not counting 
460.19 	payments made to school districts for education-related services. Notice of an increase in 
460.20 	fee payment must be given at least 30 days before the increased fee is due.
460.21 	(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, 
460.22 	in the 12 months prior to July 1:
460.23 	(1) the parent applied for insurance for the child;
460.24 	(2) the insurer denied insurance;
460.25 	(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted 
460.26 	a complaint or appeal, in writing, to the commissioner of health or the commissioner of 
460.27 	commerce, or litigated the complaint or appeal; and
460.28 	(4) as a result of the dispute, the insurer reversed its decision and granted insurance.
460.29 	For purposes of this section, "insurance" has the meaning given in paragraph (h).
460.30 	A parent who has requested a reduction in the contribution amount under this 
460.31 	paragraph shall submit proof in the form and manner prescribed by the commissioner or 
460.32 	county agency, including, but not limited to, the insurer's denial of insurance, the written 
460.33 	letter or complaint of the parents, court documents, and the written response of the insurer 
460.34 	approving insurance. The determinations of the commissioner or county agency under this 
460.35 	paragraph are not rules subject to chapter 14.

461.1 	Sec. 50. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
461.2 		Subd. 2.Vendor participation and reimbursement. Notwithstanding requirements 
461.3 	in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501, 
461.4 	vendors of day training and habilitation services may enter into written agreements with 
461.5 	qualified businesses to provide additional training and supervision needed by individuals 
461.6 	to maintain their employment.

461.7 	Sec. 51. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:
461.8 		Subd. 2.Authority. The Minnesota Board on Aging shall allocate to area agencies 
461.9 	on aging the state and federal funds which are received for the senior nutrition programs 
461.10 	of congregate dining and home-delivered meals in a manner consistent with federal 
461.11 	requirements.

461.12 	Sec. 52. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 4, 
461.13 	is amended to read:
461.14 		Subd. 4.Diagnosis. (a) A diagnosis must:
461.15 	(1) be based upon current DSM criteria including direct observations of the child 
461.16 	and reports from parents or primary caregivers; and
461.17 	(2) be completed by both either (i) a licensed physician or advanced practice 
461.18 	registered nurse and or (ii) a mental health professional.
461.19 	(b) Additional diagnostic assessment information may be considered including from 
461.20 	special education evaluations and licensed school personnel, and from professionals 
461.21 	licensed in the fields of medicine, speech and language, psychology, occupational therapy, 
461.22 	and physical therapy.
461.23 	(c) If the commissioner determines there are access problems or delays in diagnosis 
461.24 	for a geographic area due to the lack of qualified professionals, the commissioner shall 
461.25 	waive the requirement in paragraph (a), clause (2), for two professionals and allow a 
461.26 	diagnosis to be made by one professional for that geographic area. This exception must be 
461.27 	limited to a specific period of time until, with stakeholder input as described in subdivision 
461.28 	8, there is a determination of an adequate number of professionals available to require two 
461.29 	professionals for each diagnosis.

461.30 	Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 5, 
461.31 	is amended to read:
462.1 		Subd. 5.Diagnostic assessment. The following information and assessments must 
462.2 	be performed, reviewed, and relied upon for the eligibility determination, treatment and 
462.3 	services recommendations, and treatment plan development for the child:
462.4 	(1) an assessment of the child's developmental skills, functional behavior, needs, 
462.5 	and capacities based on direct observation of the child which must be administered by 
462.6 	a licensed mental health professional, must include medical or assessment information 
462.7 	from the child's physician or advanced practice registered nurse and may also include 
462.8 	observations from family members, school personnel, child care providers, or other 
462.9 	caregivers, as well as any medical or assessment information from other licensed 
462.10 	professionals such as the child's physician, rehabilitation therapists, licensed school 
462.11 	personnel, or mental health professionals; and
462.12 	(2) an assessment of parental or caregiver capacity to participate in therapy including 
462.13 	the type and level of parental or caregiver involvement and training recommended.

462.14 	Sec. 54. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 11, 
462.15 	is amended to read:
462.16 		Subd. 11.Federal approval of the autism benefit. (a) The provisions of 
462.17 	subdivision 9 this section shall apply to state plan services under title XIX of the Social 
462.18 	Security Act when federal approval is granted under a 1915(i) waiver or other authority 
462.19 	which allows children eligible for medical assistance through the TEFRA option under 
462.20 	section 256B.055, subdivision 12, to qualify and includes children eligible for medical 
462.21 	assistance in families over 150 percent of the federal poverty guidelines.
462.22 	(b) The commissioner may use the federal authority for a Medicaid state plan 
462.23 	amendment under Early and Periodic Screening Diagnosis and Treatment (EPSDT), 
462.24 	United States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any 
462.25 	aspect or type of treatment covered in this section if new federal guidance is helpful 
462.26 	in achieving one or more of the purposes of this section in a cost-effective manner. 
462.27 	Notwithstanding subdivisions 2 and 3, any treatment services submitted for federal 
462.28 	approval under EPSDT shall include appropriate medical criteria to qualify for the service 
462.29 	and shall cover children through age 20.

462.30 	Sec. 55. Minnesota Statutes 2013 Supplement, section 256B.0949, is amended by 
462.31 	adding a subdivision to read:
462.32 		Subd. 12.Autism benefit; training provided. After approval of the autism early 
462.33 	intensive intervention benefit under this section by the Centers for Medicare and Medicaid 
462.34 	Services, the commissioner shall provide statewide training on the benefit for culturally 
463.1 	and linguistically diverse communities. Training for autism service providers on culturally 
463.2 	appropriate practices must be online, accessible, and available in multiple languages. The 
463.3 	training for families, lead agencies, advocates, and other interested parties must provide 
463.4 	information about the benefit and how to access it.

463.5 	Sec. 56. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1, 
463.6 	is amended to read:
463.7 		Subdivision 1.Development and implementation of quality profiles. (a) The 
463.8 	commissioner of human services, in cooperation with the commissioner of health, shall 
463.9 	develop and implement quality profiles for nursing facilities and, beginning not later than 
463.10 	July 1, 2014, for home and community-based services providers, except when the quality 
463.11 	profile system would duplicate requirements under section 256B.5011, 256B.5012, or 
463.12 	256B.5013. For purposes of this section, home and community-based services providers 
463.13 	are defined as providers of home and community-based services under sections 256B.0625, 
463.14 	subdivisions 6a, 7, and 19a; 256B.0913,;256B.0915,;256B.092, and;256B.49,; and 
463.15 	256B.85, and intermediate care facilities for persons with developmental disabilities 
463.16 	providers under section 256B.5013. To the extent possible, quality profiles must be 
463.17 	developed for providers of services to older adults and people with disabilities, regardless 
463.18 	of payor source, for the purposes of providing information to consumers. The quality 
463.19 	profiles must be developed using existing data sets maintained by the commissioners of 
463.20 	health and human services to the extent possible. The profiles must incorporate or be 
463.21 	coordinated with information on quality maintained by area agencies on aging, long-term 
463.22 	care trade associations, the ombudsman offices, counties, tribes, health plans, and other 
463.23 	entities and the long-term care database maintained under section 256.975, subdivision 7. 
463.24 	The profiles must be designed to provide information on quality to:
463.25 	(1) consumers and their families to facilitate informed choices of service providers;
463.26 	(2) providers to enable them to measure the results of their quality improvement 
463.27 	efforts and compare quality achievements with other service providers; and
463.28 	(3) public and private purchasers of long-term care services to enable them to 
463.29 	purchase high-quality care.
463.30 	(b) The profiles must be developed in consultation with the long-term care task 
463.31 	force, area agencies on aging, and representatives of consumers, providers, and labor 
463.32 	unions. Within the limits of available appropriations, the commissioners may employ 
463.33 	consultants to assist with this project.

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

464.1 	Sec. 57. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7, 
464.2 	is amended to read:
464.3 		Subd. 7.Calculation of home and community-based services quality add-on. 
 464.4 	Effective On July 1, 2015, the commissioner shall determine the quality add-on rate 
464.5 	change and adjust payment rates for participating all home and community-based services 
464.6 	providers for services rendered on or after that date. The adjustment to a provider payment 
464.7 	rate determined under this subdivision shall become part of the ongoing rate paid to that 
464.8 	provider. The payment rate for the quality add-on shall be a variable amount based on 
464.9 	each provider's quality score as determined in subdivisions 1 and 2a. All home and 
464.10 	community-based services providers shall receive a minimum rate increase under this 
464.11 	subdivision. In addition to a minimum rate increase, a home and community-based 
464.12 	services provider shall receive a quality add-on payment. The commissioner shall limit 
464.13 	the types of home and community-based services providers that may receive the quality 
464.14 	add-on and based on availability of quality measures and outcome data. The commissioner 
464.15 	shall limit the amount of the minimum rate increase and quality add-on payments to 
464.16 	operate the quality add-on within funds appropriated for this purpose and based on the 
464.17 	availability of the quality measures the equivalent of a one percent rate increase for all 
464.18 	home and community-based services providers.

464.19 	Sec. 58. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 63, 
464.20 	is amended to read:
464.21 		Subd. 63.Critical access nursing facilities. (a) The commissioner, in consultation 
464.22 	with the commissioner of health, may designate certain nursing facilities as critical access 
464.23 	nursing facilities. The designation shall be granted on a competitive basis, within the 
464.24 	limits of funds appropriated for this purpose.
464.25 	(b) The commissioner shall request proposals from nursing facilities every 
464.26 	two years. Proposals must be submitted in the form and according to the timelines 
464.27 	established by the commissioner. In selecting applicants to designate, the commissioner, 
464.28 	in consultation with the commissioner of health, and with input from stakeholders, shall 
464.29 	develop criteria designed to preserve access to nursing facility services in isolated areas, 
464.30 	rebalance long-term care, and improve quality. Beginning in fiscal year 2015, to the 
464.31 	extent practicable, the commissioner shall ensure an even distribution of designations 
464.32 	across the state.
464.33 	(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing 
464.34 	facilities designated as critical access nursing facilities:
465.1 	(1) partial rebasing, with the commissioner allowing a designated facility operating 
465.2 	payment rates being the sum of  up to 60 percent of the operating payment rate determined 
465.3 	in accordance with subdivision 54 and at least 40 percent, with the sum of the two portions 
465.4 	being equal to 100 percent, of the operating payment rate that would have been allowed 
465.5 	had the facility not been designated. The commissioner may adjust these percentages by 
465.6 	up to 20 percent and may approve a request for less than the amount allowed;
465.7 	(2) enhanced payments for leave days. Notwithstanding section 256B.431, 
465.8 	subdivision 2r, upon designation as a critical access nursing facility, the commissioner 
465.9 	shall limit payment for leave days to 60 percent of that nursing facility's total payment rate 
465.10 	for the involved resident, and shall allow this payment only when the occupancy of the 
465.11 	nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;
465.12 	(3) two designated critical access nursing facilities, with up to 100 beds in active 
465.13 	service, may jointly apply to the commissioner of health for a waiver of Minnesota 
465.14 	Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The 
465.15 	commissioner of health will consider each waiver request independently based on the 
465.16 	criteria under Minnesota Rules, part 4658.0040;
465.17 	(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e), 
465.18 	shall be 40 percent of the amount that would otherwise apply; and
465.19 	(5) notwithstanding subdivision 58, beginning October 1, 2014, the quality-based 
465.20 	rate limits under subdivision 50 shall apply to designated critical access nursing facilities.
465.21 	(d) Designation of a critical access nursing facility shall be for a period of two 
465.22 	years, after which the benefits allowed under paragraph (c) shall be removed. Designated 
465.23 	facilities may apply for continued designation.

465.24 	Sec. 59. Minnesota Statutes 2012, section 256B.441, is amended by adding a 
465.25 	subdivision to read:
465.26 		Subd. 64.Rate adjustments for compensation-related costs. (a) Operating 
465.27 	payment rates of all nursing facilities that are reimbursed under this section or section 
465.28 	256B.434 shall be increased effective for rate years beginning on and after October 1, 
465.29 	2014, to address changes in compensation costs for nursing facility employees paid less 
465.30 	than $14 per hour in accordance with this subdivision.
465.31 	(b) Based on the application in paragraph (d), the commissioner shall calculate the 
465.32 	allowable annualized compensation costs by adding the totals of clauses (1), (2), and (3). 
465.33 	The result must be divided by the standardized or resident days from the most recently 
465.34 	available cost report to determine per diem amounts, which must be included in the 
466.1 	operating portion of the total payment rate and allocated to direct care or other operating 
466.2 	as determined by the commissioner: 
466.3 	(1) the sum of the difference between $8 and any hourly wage rate less than $8 for 
466.4 	October 1, 2014; between $9 and any hourly wage rate less than $9 for October 1, 2015; 
466.5 	between $9.50 and any hourly wage rate less than $9.50 for October 1, 2016; and between 
466.6 	the indexed value of the minimum wage, as defined in section 177.24, subdivision 1, 
466.7 	paragraph (f), and any hourly wage less than that indexed value for rate years beginning on 
466.8 	and after October 1, 2017; multiplied by the number of compensated hours at that wage rate;
466.9 	(2) using wages and hours in effect during the first three months of calendar year 
466.10 	2014, beginning with the first pay period beginning on or after January 1, 2014; 33.3 
466.11 	percent of the sum of items (i) to (viii) for October 1, 2014; 44.4 percent of the sum of 
466.12 	items (i) to (viii) for October 1, 2015; and 22.2 percent of the sum of items (i) to (viii) 
466.13 	for October 1, 2016;
466.14 	(i) for all compensated hours from $8 to $8.49 per hour, the number of compensated 
466.15 	hours is multiplied by $0.13;
466.16 	(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of 
466.17 	compensated hours is multiplied by $0.25;
466.18 	(iii) for all compensated hours from $9 to $9.49 per hour, the number of compensated 
466.19 	hours is multiplied by $0.38;
466.20 	(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of 
466.21 	compensated hours is multiplied by $0.50;
466.22 	(v) for all compensated hours from $10.50 to $10.99 per hour, the number of 
466.23 	compensated hours is multiplied by $0.40;
466.24 	(vi) for all compensated hours from $11 to $11.49 per hour, the number of 
466.25 	compensated hours is multiplied by $0.30;
466.26 	(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of 
466.27 	compensated hours is multiplied by $0.20; and
466.28 	(viii) for all compensated hours from $12 to $13.00 per hour, the number of 
466.29 	compensated hours is multiplied by $0.10; and
466.30 	(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal 
466.31 	unemployment taxes, workers' compensation, pensions, and contributions to employee 
466.32 	retirement accounts attributable to the amounts in clauses (1) and (2).
466.33 	(c) For the rate years beginning October 1, 2014, and later, nursing facilities that 
466.34 	receive approval of the applications in paragraph (d) must receive rate adjustments 
466.35 	according to paragraph (b). The rate adjustments must be used to pay compensation costs 
466.36 	for nursing facility employees paid less than $14 per hour.
467.1 	(d) To receive a rate adjustment, nursing facilities must submit applications to the 
467.2 	commissioner in a form and manner determined by the commissioner. The applications for 
467.3 	the rate adjustments shall include specified data, and spending plans that describe how the 
467.4 	funds from the rate adjustments will be allocated for compensation to employees paid less 
467.5 	than $14 per hour. The applications must be submitted within three months of the effective 
467.6 	date of any operating payment rate adjustment under this subdivision. The commissioner 
467.7 	may request any additional information needed to determine the rate adjustment within 
467.8 	three weeks of receiving a complete application. The nursing facility must provide any 
467.9 	additional information requested by the commissioner within six months of the effective 
467.10 	date of any operating payment rate adjustment under this subdivision. The commissioner 
467.11 	may waive the deadlines in this subdivision under extraordinary circumstances.
467.12 	(e) For nursing facilities in which employees are represented by an exclusive 
467.13 	bargaining representative, the commissioner shall approve the applications submitted 
467.14 	under this subdivision only upon receipt of a letter or letters of acceptance of the spending 
467.15 	plans in regard to members of the bargaining unit, signed by the exclusive bargaining 
467.16 	agent and dated after May 31, 2014. Upon receipt of the letter or letters of acceptance, 
467.17 	the commissioner shall deem all requirements of this subdivision as having been met in 
467.18 	regard to the members of the bargaining unit.

467.19 	Sec. 60. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1, 
467.20 	is amended to read:
467.21 		Subdivision 1.Provider qualifications. (a) For the home and community-based 
467.22 	waivers providing services to seniors and individuals with disabilities under sections 
467.23 	256B.0913, 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
467.24 	(1) agreements with enrolled waiver service providers to ensure providers meet 
467.25 	Minnesota health care program requirements;
467.26 	(2) regular reviews of provider qualifications, and including requests of proof of 
467.27 	documentation; and
467.28 	(3) processes to gather the necessary information to determine provider qualifications.
467.29 	(b) Beginning July 1, 2012, staff that provide direct contact, as defined in section 
467.30 	245C.02, subdivision 11, for services specified in the federally approved waiver plans 
467.31 	must meet the requirements of chapter 245C prior to providing waiver services and as 
467.32 	part of ongoing enrollment. Upon federal approval, this requirement must also apply to 
467.33 	consumer-directed community supports.
467.34 	(c) Beginning January 1, 2014, service owners and managerial officials overseeing 
467.35 	the management or policies of services that provide direct contact as specified in the 
468.1 	federally approved waiver plans must meet the requirements of chapter 245C prior to 
468.2 	reenrollment or revalidation or, for new providers, prior to initial enrollment if they have 
468.3 	not already done so as a part of service licensure requirements.

468.4 	Sec. 61. Minnesota Statutes 2013 Supplement, section 256B.4913, subdivision 4a, 
468.5 	is amended to read:
468.6 		Subd. 4a.Rate stabilization adjustment. (a) For purposes of this subdivision, 
468.7 	"implementation period" shall mean means the period beginning January 1, 2014, and 
468.8 	ending on the last day of the month in which the rate management system is populated 
468.9 	with the data necessary to calculate rates for substantially all individuals receiving home 
468.10 	and community-based waiver services under sections 256B.092 and 256B.49. "Banding 
468.11 	period" means the time period beginning on January 1, 2014, and ending upon the 
468.12 	expiration of the 12-month period defined in paragraph (c), clause (5).
468.13 	(b) For purposes of this subdivision, the banding value historical rate for all service 
468.14 	recipients shall mean means the individual reimbursement rate for a recipient in effect on 
468.15 	December 1, 2013, except that:
468.16 	(1)(i) for day training and habilitation pilot program service recipients, the banding 
468.17 	value shall be the authorized rate for the provider in the county of service effective 
468.18 	December 1, 2013, if thefor a day service recipient:who was not authorized to receive 
468.19 	these waiver services prior to January 1, 2014; added a new service or services on or after 
468.20 	January 1, 2014; or changed providers on or after January 1, 2014, the historical rate 
468.21 	must be the authorized rate for the provider in the county of service, effective December 
468.22 	1, 2013; and or
468.23 	(ii) for all other unit or day service recipients, the banding value shall be the 
468.24 	weighted average authorized rate for each provider number in the county of service 
468.25 	effective December 1, 2013, if the(2) for a unit-based service with programming or 
468.26 	a unit-based service without programming recipient:who was not authorized to receive 
468.27 	these waiver services prior to January 1, 2014; added a new service or services on or after 
468.28 	January 1, 2014; or changed providers on or after January 1, 2014, the historical rate 
468.29 	must be the weighted average authorized rate for each provider number in the county of 
468.30 	service, effective December 1, 2013; and or
468.31 	(2) (3) for residential service recipients who change providers on or after January 
468.32 	1, 2014, the banding value shall historical rate must be set by each lead agency within 
468.33 	their county aggregate budget using their respective methodology for residential services 
468.34 	effective December 1, 2013, for determining the provider rate for a similarly situated 
468.35 	recipient being served by that provider.
469.1 	(c) The commissioner shall adjust individual reimbursement rates determined under 
469.2 	this section so that the unit rate is no higher or lower than:
469.3 	(1) 0.5 percent from the banding value historical rate for the implementation period;
469.4 	(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period 
469.5 	immediately following the time period of clause (1);
469.6 	(3) 1.0 percent from the rate in effect in clause (2), for the 12-month period 
469.7 	immediately following the time period of clause (2);
469.8 	(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period 
469.9 	immediately following the time period of clause (3); and
469.10 	(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period 
469.11 	immediately following the time period of clause (4).
469.12 	(d) The commissioner shall review all changes to rates that were in effect on 
469.13 	December 1, 2013, to verify that  the rates in effect produce the equivalent level of spending 
469.14 	and service unit utilization on an annual basis as those in effect on October 31, 2013.
469.15 	(e) By December 31, 2014, the commissioner shall complete the review in paragraph 
469.16 	(d), adjust rates to provide equivalent annual spending and make appropriate adjustments. 
469.17 	(f) During the banding period, the Medicaid Management Information System 
469.18 	(MMIS) service agreement rate must be adjusted to account for change in an individual's 
469.19 	need. The commissioner shall adjust the Medicaid Management Information System 
469.20 	(MMIS) service agreement rate by:
469.21 	(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for 
469.22 	the individual with variables reflecting the level of service in effect on December 1, 2013;
469.23 	(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 
469.24 	9, for the individual with variables reflecting the updated level of service at the time 
469.25 	of application; and
469.26 	(3) adding to or subtracting from the Medicaid Management Information System 
469.27 	(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).
469.28 	(g) This subdivision shall must not apply to rates for recipients served by providers 
469.29 	new to a given county after January 1, 2014. Providers of personal supports services who 
469.30 	also acted as fiscal support entities must be treated as new providers as of January 1, 2014.

469.31 	Sec. 62. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 2, 
469.32 	is amended to read:
469.33 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
469.34 	meanings given them, unless the context clearly indicates otherwise.
469.35 	(b) "Commissioner" means the commissioner of human services.
470.1 	(c) "Component value" means underlying factors that are part of the cost of providing 
470.2 	services that are built into the waiver rates methodology to calculate service rates.
470.3 	(d) "Customized living tool" means a methodology for setting service rates that 
470.4 	delineates and documents the amount of each component service included in a recipient's 
470.5 	customized living service plan.
470.6 	(e) "Disability waiver rates system" means a statewide system that establishes rates 
470.7 	that are based on uniform processes and captures the individualized nature of waiver 
470.8 	services and recipient needs.
470.9 	(f) "Individual staffing" means the time spent as a one-to-one interaction specific to 
470.10 	an individual recipient by staff brought in solely to provide direct support and assistance 
470.11 	with activities of daily living, instrumental activities of daily living, and training to 
470.12 	participants, and is based on the requirements in each individual's coordinated service and 
470.13 	support plan under section 245D.02, subdivision 4b; any coordinated service and support 
470.14 	plan addendum under section 245D.02, subdivision 4c; an assessment tool; and provider 
470.15 	observation of an individual's needs.
470.16 	(g) "Lead agency" means a county, partnership of counties, or tribal agency charged 
470.17 	with administering waivered services under sections 256B.092 and 256B.49.
470.18 	(g) (h) "Median" means the amount that divides distribution into two equal groups, 
470.19 	one-half above the median and one-half below the median.
470.20 	(h) (i) "Payment or rate" means reimbursement to an eligible provider for services 
470.21 	provided to a qualified individual based on an approved service authorization.
470.22 	(i) (j) "Rates management system" means a Web-based software application that 
470.23 	uses a framework and component values, as determined by the commissioner, to establish 
470.24 	service rates.
470.25 	(j) (k) "Recipient" means a person receiving home and community-based services 
470.26 	funded under any of the disability waivers.
470.27 	(l) "Shared staffing" means time spent by employees, not defined under paragraph 
470.28 	(f), providing or available to provide more than one individual with direct support and 
470.29 	assistance with activities of daily living as defined under section 256B.0659, subdivision 1, 
470.30 	paragraph (b); instrumental activities of daily living as defined under section 256B.0659, 
470.31 	subdivision 1, paragraph (i); ancillary activities needed to support individual services; and 
470.32 	training to participants, and is based on the requirements in each individual's coordinated 
470.33 	service and support plan under section 245D.02, subdivision 4b; any coordinated service 
470.34 	and support plan addendum under section 245D.02, subdivision 4c; an assessment tool; and 
470.35 	provider observation of an individual's service need. Total shared staffing hours are divided 
470.36 	proportionally by the number of individuals who receive the shared service provisions. 
471.1 	(m) "Staffing ratio" means the number of recipients a service provider employee 
471.2 	supports during a unit of service based on a uniform assessment tool, provider observation, 
471.3 	case history, and the recipient's services of choice, and not based on the staffing ratios 
471.4 	under section 245D.31.
471.5 	(n) "Unit of service" means the following:
471.6 	(1) for residential support services under subdivision 6, a unit of service is a day. 
471.7 	Any portion of any calendar day, within allowable Medicaid rules, where an individual 
471.8 	spends time in a residential setting is billable as a day;
471.9 	(2) for day services under subdivision 7:
471.10 	(i) for day training and habilitation services, a unit of service is either:
471.11 	(A) a day unit of service is defined as six or more hours of time spent providing 
471.12 	direct services and transportation; or
471.13 	(B) a partial day unit of service is defined as fewer than six hours of time spent 
471.14 	providing direct services and transportation; and
471.15 	(C) for new day service recipients after January 1, 2014, 15 minute units of 
471.16 	service must be used for fewer than six hours of time spent providing direct services 
471.17 	and transportation;
471.18 	(ii) for adult day and structured day services, a unit of service is a day or 15 minutes. 
471.19 	A day unit of service is six or more hours of time spent providing direct services;
471.20 	(iii) for prevocational services, a unit of service is a day or an hour. A day unit of 
471.21 	service is six or more hours of time spent providing direct service;
471.22 	(3) for unit-based services with programming under subdivision 8:
471.23 	(i) for supported living services, a unit of service is a day or 15 minutes. When a 
471.24 	day rate is authorized, any portion of a calendar day where an individual receives services 
471.25 	is billable as a day; and
471.26 	(ii) for all other services, a unit of service is 15 minutes; and
471.27 	(4) for unit-based services without programming under subdivision 9:
471.28 	(i) for respite services, a unit of service is a day or 15 minutes. When a day rate is 
471.29 	authorized, any portion of a calendar day when an individual receives services is billable 
471.30 	as a day; and
471.31 	(ii) for all other services, a unit of service is 15 minutes.

471.32 	Sec. 63. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 4, 
471.33 	is amended to read:
472.1 		Subd. 4.Data collection for rate determination. (a) Rates for applicable home 
472.2 	and community-based waivered services, including rate exceptions under subdivision 12, 
472.3 	are set by the rates management system.
472.4 	(b) Data for services under section 256B.4913, subdivision 4a, shall be collected in a 
472.5 	manner prescribed by the commissioner.
472.6 	(c) Data and information in the rates management system may be used to calculate 
472.7 	an individual's rate.
472.8 	(d) Service providers, with information from the community support plan and 
472.9 	oversight by lead agencies, shall provide values and information needed to calculate an 
472.10 	individual's rate into the rates management system. TheseThe determination of service 
472.11 	levels must be part of a discussion with members of the support team as defined in section 
472.12 	245D.02, subdivision 34.This discussion must occur prior to the final establishment of 
472.13 	each individual's rate. The values and information include:
472.14 	(1) shared staffing hours;
472.15 	(2) individual staffing hours;
472.16 	(3) direct RN registered nurse hours;
472.17 	(4) direct LPN licensed practical nurse hours;
472.18 	(5) staffing ratios;
472.19 	(6) information to document variable levels of service qualification for variable 
472.20 	levels of reimbursement in each framework;
472.21 	(7) shared or individualized arrangements for unit-based services, including the 
472.22 	staffing ratio;
472.23 	(8) number of trips and miles for transportation services; and
472.24 	(9) service hours provided through monitoring technology.
472.25 	(e) Updates to individual data shall must include:
472.26 	(1) data for each individual that is updated annually when renewing service plans; and
472.27 	(2) requests by individuals or lead agencies to update a rate whenever there is a 
472.28 	change in an individual's service needs, with accompanying documentation.
472.29 	(f) Lead agencies shall review and approve all services reflecting each individual's 
472.30 	needs, and the values to calculate the final payment rate for services with variables under 
472.31 	subdivisions 6, 7, 8, and 9 for each individual. Lead agencies must notify the individual 
472.32 	and the service provider of the final agreed-upon values and rate, and provide information 
472.33 	that is identical to what was entered into the rates management system. If a value used 
472.34 	was mistakenly or erroneously entered and used to calculate a rate, a provider may 
472.35 	petition lead agencies to correct it. Lead agencies must respond to these requests. When 
472.36 	responding to the request, the lead agency must consider:
473.1 	(1) meeting the health and welfare needs of the individual or individuals receiving 
473.2 	services by service site, identified in their coordinated service and support plan under 
473.3 	section 245D.02, subdivision 4b, and any addendum under section 245D.02, subdivision 
473.4 	4c;
473.5 	(2) meeting the requirements for staffing under subdivision 2, paragraphs (f), (i), 
473.6 	and (m); and meeting or exceeding the licensing standards for staffing required under 
473.7 	section 245D.09, subdivision 1; and
473.8 	(3) meeting the staffing ratio requirements under subdivision 2, paragraph (n), and 
473.9 	meeting or exceeding the licensing standards for staffing required under section 245D.31.

473.10 	Sec. 64. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 5, 
473.11 	is amended to read:
473.12 		Subd. 5.Base wage index and standard component values. (a) The base wage 
473.13 	index is established to determine staffing costs associated with providing services to 
473.14 	individuals receiving home and community-based services. For purposes of developing 
473.15 	and calculating the proposed base wage, Minnesota-specific wages taken from job 
473.16 	descriptions and standard occupational classification (SOC) codes from the Bureau of 
473.17 	Labor Statistics as defined in the most recent edition of the Occupational Handbook shall
473.18 	 must be used. The base wage index shall must be calculated as follows:
473.19 	(1) for residential direct care staff, the sum of:
473.20 	(i) 15 percent of the subtotal of 50 percent of the median wage for personal and 
473.21 	home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide 
473.22 	(SOC code 31-1012); and 20 percent of the median wage for social and human services 
473.23 	aide (SOC code 21-1093); and
473.24 	(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide 
473.25 	(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 
473.26 	(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012); 
473.27 	20 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20 
473.28 	percent of the median wage for social and human services aide (SOC code 21-1093);
473.29 	(2) for day services, 20 percent of the median wage for nursing aide (SOC code 
473.30 	31-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053); 
473.31 	and 60 percent of the median wage for social and human services aide (SOC code 21-1093);
473.32 	(3) for residential asleep-overnight staff, the wage will be $7.66 per hour, except in 
473.33 	a family foster care setting, the wage is $2.80 per hour;
473.34 	(4) for behavior program analyst staff, 100 percent of the median wage for mental 
473.35 	health counselors (SOC code 21-1014);
474.1 	(5) for behavior program professional staff, 100 percent of the median wage for 
474.2 	clinical counseling and school psychologist (SOC code 19-3031);
474.3 	(6) for behavior program specialist staff, 100 percent of the median wage for 
474.4 	psychiatric technicians (SOC code 29-2053);
474.5 	(7) for supportive living services staff, 20 percent of the median wage for nursing 
474.6 	aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC 
474.7 	code 29-2053); and 60 percent of the median wage for social and human services aide 
474.8 	(SOC code 21-1093);
474.9 	(8) for housing access coordination staff, 50 percent of the median wage for 
474.10 	community and social services specialist (SOC code 21-1099); and 50 percent of the 
474.11 	median wage for social and human services aide (SOC code 21-1093);
474.12 	(9) for in-home family support staff, 20 percent of the median wage for nursing 
474.13 	aide (SOC code 31-1012); 30 percent of the median wage for community social service 
474.14 	specialist (SOC code 21-1099); 40 percent of the median wage for social and human 
474.15 	services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric 
474.16 	technician (SOC code 29-2053);
474.17 	(10) for independent living skills staff, 40 percent of the median wage for community 
474.18 	social service specialist (SOC code 21-1099); 50 percent of the median wage for social 
474.19 	and human services aide (SOC code 21-1093); and ten percent of the median wage for 
474.20 	psychiatric technician (SOC code 29-2053);
474.21 	(11) for supported employment staff, 20 percent of the median wage for nursing aide 
474.22 	(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC 
474.23 	code 29-2053); and 60 percent of the median wage for social and human services aide 
474.24 	(SOC code 21-1093);
474.25 	(12) for adult companion staff, 50 percent of the median wage for personal and home 
474.26 	care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides, 
474.27 	orderlies, and attendants (SOC code 31-1012);
474.28 	(13) for night supervision staff, 20 percent of the median wage for home health aide 
474.29 	(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 
474.30 	(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012); 
474.31 	20 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20 
474.32 	percent of the median wage for social and human services aide (SOC code 21-1093);
474.33 	(14) for respite staff, 50 percent of the median wage for personal and home care aide 
474.34 	(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and 
474.35 	attendants (SOC code 31-1012);
475.1 	(15) for personal support staff, 50 percent of the median wage for personal and home 
475.2 	care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides, 
475.3 	orderlies, and attendants (SOC code 31-1012);
475.4 	(16) for supervisory staff, the basic wage is $17.43 per hour with exception of 
475.5 	the supervisor of behavior analyst and behavior specialists, which shall must be $30.75 
475.6 	per hour;
475.7 	(17) for RN registered nurse, the basic wage is $30.82 per hour; and
475.8 	(18) for LPN licensed practical nurse, the basic wage is $18.64 per hour.
475.9 	(b) Component values for residential support services are:
475.10 	(1) supervisory span of control ratio: 11 percent;
475.11 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.12 	(3) employee-related cost ratio: 23.6 percent;
475.13 	(4) general administrative support ratio: 13.25 percent;
475.14 	(5) program-related expense ratio: 1.3 percent; and
475.15 	(6) absence and utilization factor ratio: 3.9 percent.
475.16 	(c) Component values for family foster care are:
475.17 	(1) supervisory span of control ratio: 11 percent;
475.18 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.19 	(3) employee-related cost ratio: 23.6 percent;
475.20 	(4) general administrative support ratio: 3.3 percent;
475.21 	(5) program-related expense ratio: 1.3 percent; and
475.22 	(6) absence factor: 1.7 percent.
475.23 	(d) Component values for day services for all services are:
475.24 	(1) supervisory span of control ratio: 11 percent;
475.25 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.26 	(3) employee-related cost ratio: 23.6 percent;
475.27 	(4) program plan support ratio: 5.6 percent;
475.28 	(5) client programming and support ratio: ten percent;
475.29 	(6) general administrative support ratio: 13.25 percent;
475.30 	(7) program-related expense ratio: 1.8 percent; and
475.31 	(8) absence and utilization factor ratio: 3.9 percent.
475.32 	(e) Component values for unit-based services with programming are:
475.33 	(1) supervisory span of control ratio: 11 percent;
475.34 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.35 	(3) employee-related cost ratio: 23.6 percent;
475.36 	(4) program plan supports ratio: 3.1 percent;
476.1 	(5) client programming and supports ratio: 8.6 percent;
476.2 	(6) general administrative support ratio: 13.25 percent;
476.3 	(7) program-related expense ratio: 6.1 percent; and
476.4 	(8) absence and utilization factor ratio: 3.9 percent.
476.5 	(f) Component values for unit-based services without programming except respite 
476.6 	are:
476.7 	(1) supervisory span of control ratio: 11 percent;
476.8 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
476.9 	(3) employee-related cost ratio: 23.6 percent;
476.10 	(4) program plan support ratio: 3.1 percent;
476.11 	(5) client programming and support ratio: 8.6 percent;
476.12 	(6) general administrative support ratio: 13.25 percent;
476.13 	(7) program-related expense ratio: 6.1 percent; and
476.14 	(8) absence and utilization factor ratio: 3.9 percent.
476.15 	(g) Component values for unit-based services without programming for respite are:
476.16 	(1) supervisory span of control ratio: 11 percent;
476.17 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
476.18 	(3) employee-related cost ratio: 23.6 percent;
476.19 	(4) general administrative support ratio: 13.25 percent;
476.20 	(5) program-related expense ratio: 6.1 percent; and
476.21 	(6) absence and utilization factor ratio: 3.9 percent.
476.22 	(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph 
476.23 	(b) (a) based on the wage data by standard occupational code (SOC) from the Bureau of 
476.24 	Labor Statistics available on December 31, 2016. The commissioner shall publish these 
476.25 	updated values and load them into the rate management system. This adjustment occurs 
476.26 	every five years. For adjustments in 2021 and beyond, the commissioner shall use the data 
476.27 	available on December 31 of the calendar year five years prior.
476.28 	(i) On July 1, 2017, the commissioner shall update the framework components in 
476.29 	paragraph (c) paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision 
476.30 	7, clauses (16) and (17), for changes in the Consumer Price Index. The commissioner 
476.31 	will adjust these values higher or lower by the percentage change in the Consumer Price 
476.32 	Index-All Items, United States city average (CPI-U) from January 1, 2014, to January 1, 
476.33 	2017. The commissioner shall publish these updated values and load them into the rate 
476.34 	management system. This adjustment occurs every five years. For adjustments in 2021 
476.35 	and beyond, the commissioner shall use the data available on January 1 of the calendar 
476.36 	year four years prior and January 1 of the current calendar year.

477.1 	Sec. 65. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 6, 
477.2 	is amended to read:
477.3 		Subd. 6.Payments for residential support services. (a) Payments for residential 
477.4 	support services, as defined in sections 256B.092, subdivision 11, and 256B.49, 
477.5 	subdivision 22, must be calculated as follows:
477.6 	(1) determine the number of shared staffing and individual direct staff hours to meet 
477.7 	a recipient's needs provided on-site or through monitoring technology;
477.8 	(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics 
477.9 	Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 
477.10 	5. This is defined as the direct-care rate;
477.11 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
477.12 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
477.13 	to the result of clause (2). This is defined as the customized direct-care rate;
477.14 	(4) multiply the number of shared and individual direct staff hours provided on-site 
477.15 	or through monitoring technology and direct nursing hours by the appropriate staff wages 
477.16 	in subdivision 5, paragraph (a), or the customized direct-care rate;
477.17 	(5) multiply the number of shared and individual direct staff hours provided 
477.18 	on-site or through monitoring technology and direct nursing hours by the product of 
477.19 	the supervision span of control ratio in subdivision 5, paragraph (b), clause (1), and the 
477.20 	appropriate supervision wage in subdivision 5, paragraph (a), clause (16);
477.21 	(6) combine the results of clauses (4) and (5), excluding any shared and individual 
477.22 	direct staff hours provided through monitoring technology, and multiply the result by one 
477.23 	plus the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph 
477.24 	(b), clause (2). This is defined as the direct staffing cost;
477.25 	(7) for employee-related expenses, multiply the direct staffing cost, excluding any 
477.26 	shared and individual direct staff hours provided through monitoring technology, by one 
477.27 	plus the employee-related cost ratio in subdivision 5, paragraph (b), clause (3);
477.28 	(8) for client programming and supports, the commissioner shall add $2,179; and
477.29 	(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000 
477.30 	if customized for adapted transport, per year based on the resident with the highest 
477.31 	assessed need.
477.32 	(b) The total rate shall must be calculated using the following steps:
477.33 	(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any 
477.34 	shared and individual direct staff hours provided through monitoring technology that 
477.35 	was excluded in clause (7);
478.1 	(2) sum the standard general and administrative rate, the program-related expense 
478.2 	ratio, and the absence and utilization ratio;
478.3 	(3) divide the result of clause (1) by one minus the result of clause (2). This is 
478.4 	the total payment amount; and
478.5 	(4) adjust the result of clause (3) by a factor to be determined by the commissioner 
478.6 	to adjust for regional differences in the cost of providing services.
478.7 	(c) The payment methodology for customized living, 24-hour customized living, 
478.8 	and residential care services shall must be the customized living tool. Revisions to the 
478.9 	customized living tool shall must be made to reflect the services and activities unique to 
478.10 	disability-related recipient needs.
478.11 	(d) The commissioner shall establish a Monitoring Technology Review Panel to 
478.12 	annually review and approve the plans, safeguards, and rates that include residential 
478.13 	direct care provided remotely through monitoring technology. Lead agencies shall submit 
478.14 	individual service plans that include supervision using monitoring technology to the 
478.15 	Monitoring Technology Review Panel for approval. Individual service plans that include 
478.16 	supervision using monitoring technology as of December 31, 2013, shall be submitted to 
478.17 	the Monitoring Technology Review Panel, but the plans are not subject to approval.
478.18 	(e) For individuals enrolled prior to January 1, 2014, the days of service authorized 
478.19 	must meet or exceed the days of service used to convert service agreements in effect on 
478.20 	December 1, 2013, and must not result in a reduction in spending or service utilization due 
478.21 	to conversion during the implementation period under section 256B.4913, subdivision 4a. 
478.22 	If during the implementation period, an individual's historical rate, including adjustments 
478.23 	required under section 256B.4913, subdivision 4a, paragraph (c), is equal to or greater 
478.24 	than the rate determined in this subdivision, the number of days authorized for the 
478.25 	individual is 365.
478.26 	(f) The number of days authorized for all individuals enrolling after January 1, 2014, 
478.27 	in residential services must include every day that services start and end.

478.28 	Sec. 66. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 7, 
478.29 	is amended to read:
478.30 		Subd. 7.Payments for day programs. Payments for services with day programs 
478.31 	including adult day care, day treatment and habilitation, prevocational services, and 
478.32 	structured day services must be calculated as follows:
478.33 	(1) determine the number of units of service and staffing ratio to meet a recipient's 
478.34 	needs:
479.1 	(i) the staffing ratios for the units of service provided to a recipient in a typical week 
479.2 	must be averaged to determine an individual's staffing ratio; and
479.3 	(ii) the commissioner, in consultation with service providers, shall develop a uniform 
479.4 	staffing ratio worksheet to be used to determine staffing ratios under this subdivision;
479.5 	(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 
479.6 	Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 5;
479.7 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
479.8 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
479.9 	to the result of clause (2). This is defined as the customized direct-care rate;
479.10 	(4) multiply the number of day program direct staff hours and direct nursing hours 
479.11 	by the appropriate staff wage in subdivision 5, paragraph (a), or the customized direct-care 
479.12 	rate;
479.13 	(5) multiply the number of day direct staff hours by the product of the supervision 
479.14 	span of control ratio in subdivision 5, paragraph (d), clause (1), and the appropriate 
479.15 	supervision wage in subdivision 5, paragraph (a), clause (16);
479.16 	(6) combine the results of clauses (4) and (5), and multiply the result by one plus 
479.17 	the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (d), 
479.18 	clause (2). This is defined as the direct staffing rate;
479.19 	(7) for program plan support, multiply the result of clause (6) by one plus the 
479.20 	program plan support ratio in subdivision 5, paragraph (d), clause (4);
479.21 	(8) for employee-related expenses, multiply the result of clause (7) by one plus the 
479.22 	employee-related cost ratio in subdivision 5, paragraph (d), clause (3);
479.23 	(9) for client programming and supports, multiply the result of clause (8) by one plus 
479.24 	the client programming and support ratio in subdivision 5, paragraph (d), clause (5);
479.25 	(10) for program facility costs, add $19.30 per week with consideration of staffing 
479.26 	ratios to meet individual needs;
479.27 	(11) for adult day bath services, add $7.01 per 15 minute unit;
479.28 	(12) this is the subtotal rate;
479.29 	(13) sum the standard general and administrative rate, the program-related expense 
479.30 	ratio, and the absence and utilization factor ratio;
479.31 	(14) divide the result of clause (12) by one minus the result of clause (13). This is 
479.32 	the total payment amount;
479.33 	(15) adjust the result of clause (14) by a factor to be determined by the commissioner 
479.34 	to adjust for regional differences in the cost of providing services;
479.35 	(16) for transportation provided as part of day training and habilitation for an 
479.36 	individual who does not require a lift, add:
480.1 	(i) $10.50 for a trip between zero and ten miles for a nonshared ride in a vehicle 
480.2 	without a lift, $8.83 for a shared ride in a vehicle without a lift, and $9.25 for a shared 
480.3 	ride in a vehicle with a lift;
480.4 	(ii) $15.75 for a trip between 11 and 20 miles for a nonshared ride in a vehicle 
480.5 	without a lift, $10.58 for a shared ride in a vehicle without a lift, and $11.88 for a shared 
480.6 	ride in a vehicle with a lift;
480.7 	(iii) $25.75 for a trip between 21 and 50 miles for a nonshared ride in a vehicle 
480.8 	without a lift, $13.92 for a shared ride in a vehicle without a lift, and $16.88 for a shared 
480.9 	ride in a vehicle with a lift; or
480.10 	(iv) $33.50 for a trip of 51 miles or more for a nonshared ride in a vehicle without a 
480.11 	lift, $16.50 for a shared ride in a vehicle without a lift, and $20.75 for a shared ride in a 
480.12 	vehicle with a lift;
480.13 	(17) for transportation provided as part of day training and habilitation for an 
480.14 	individual who does require a lift, add:
480.15 	(i) $19.05 for a trip between zero and ten miles for a nonshared ride in a vehicle with 
480.16 	a lift, and $15.05 for a shared ride in a vehicle with a lift;
480.17 	(ii) $32.16 for a trip between 11 and 20 miles for a nonshared ride in a vehicle with a 
480.18 	lift, and $28.16 for a shared ride in a vehicle with a lift;
480.19 	(iii) $58.76 for a trip between 21 and 50 miles for a nonshared ride in a vehicle with 
480.20 	a lift, and $58.76 for a shared ride in a vehicle with a lift; or
480.21 	(iv) $80.93 for a trip of 51 miles or more for a nonshared ride in a vehicle with a 
480.22 	lift, and $80.93 for a shared ride in a vehicle with a lift.

480.23 	Sec. 67. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 9, 
480.24 	is amended to read:
480.25 		Subd. 9.Payments for unit-based services without programming. Payments 
480.26 	for unit-based without program services, including night supervision, personal support, 
480.27 	respite, and companion care provided to an individual outside of any day or residential 
480.28 	service plan must be calculated as follows unless the services are authorized separately 
480.29 	under subdivision 6 or 7:
480.30 	(1) for all services except respite, determine the number of units of service to meet 
480.31 	a recipient's needs;
480.32 	(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 
480.33 	Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
481.1 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
481.2 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
481.3 	to the result of clause (2). This is defined as the customized direct care rate;
481.4 	(4) multiply the number of direct staff hours by the appropriate staff wage in 
481.5 	subdivision 5 or the customized direct care rate;
481.6 	(5) multiply the number of direct staff hours by the product of the supervision span 
481.7 	of control ratio in subdivision 5, paragraph (f), clause (1), and the appropriate supervision 
481.8 	wage in subdivision 5, paragraph (a), clause (16);
481.9 	(6) combine the results of clauses (4) and (5), and multiply the result by one plus 
481.10 	the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (f), 
481.11 	clause (2). This is defined as the direct staffing rate;
481.12 	(7) for program plan support, multiply the result of clause (6) by one plus the 
481.13 	program plan support ratio in subdivision 5, paragraph (f), clause (4);
481.14 	(8) for employee-related expenses, multiply the result of clause (7) by one plus the 
481.15 	employee-related cost ratio in subdivision 5, paragraph (f), clause (3);
481.16 	(9) for client programming and supports, multiply the result of clause (8) by one plus 
481.17 	the client programming and support ratio in subdivision 5, paragraph (f), clause (5);
481.18 	(10) this is the subtotal rate;
481.19 	(11) sum the standard general and administrative rate, the program-related expense 
481.20 	ratio, and the absence and utilization factor ratio;
481.21 	(12) divide the result of clause (10) by one minus the result of clause (11). This is 
481.22 	the total payment amount;
481.23 	(13) for respite services, determine the number of daily day  units of service to meet 
481.24 	an individual's needs;
481.25 	(14) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 
481.26 	Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
481.27 	(15) for a recipient requiring deaf and hard-of-hearing customization under 
481.28 	subdivision 12, add the customization rate provided in subdivision 12 to the result of 
481.29 	clause (14). This is defined as the customized direct care rate;
481.30 	(16) multiply the number of direct staff hours by the appropriate staff wage in 
481.31 	subdivision 5, paragraph (a);
481.32 	(17) multiply the number of direct staff hours by the product of the supervisory span 
481.33 	of control ratio in subdivision 5, paragraph (g), clause (1), and the appropriate supervision 
481.34 	wage in subdivision 5, paragraph (a), clause (16);
482.1 	(18) combine the results of clauses (16) and (17), and multiply the result by one plus 
482.2 	the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (g), 
482.3 	clause (2). This is defined as the direct staffing rate;
482.4 	(19) for employee-related expenses, multiply the result of clause (18) by one plus 
482.5 	the employee-related cost ratio in subdivision 5, paragraph (g), clause (3);
482.6 	(20) this is the subtotal rate;
482.7 	(21) sum the standard general and administrative rate, the program-related expense 
482.8 	ratio, and the absence and utilization factor ratio;
482.9 	(22) divide the result of clause (20) by one minus the result of clause (21). This is 
482.10 	the total payment amount; and
482.11 	(23) adjust the result of clauses (12) and (22) by a factor to be determined by the 
482.12 	commissioner to adjust for regional differences in the cost of providing services.

482.13 	Sec. 68. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 10, 
482.14 	is amended to read:
482.15 		Subd. 10.Updating payment values and additional information. (a) From 
482.16 	January 1, 2014, through December 31, 2017, the commissioner shall develop and 
482.17 	implement uniform procedures to refine terms and adjust values used to calculate payment 
482.18 	rates in this section.
482.19 	(b) No later than July 1, 2014, the commissioner shall, within available resources, 
482.20 	begin to conduct research and gather data and information from existing state systems or 
482.21 	other outside sources on the following items:
482.22 	(1) differences in the underlying cost to provide services and care across the state; and
482.23 	(2) mileage and utilization, vehicle type, lift requirements, incidents of individual 
482.24 	and shared rides, and units of transportation for all day and unit-based services, which 
482.25 	must be collected from providers using the rate management worksheet and entered into 
482.26 	the rates management system; and
482.27 	(3) the distinct underlying costs for services provided by a license holder certified 
482.28 	under section 245D.33.
482.29 	(c) Using a statistically valid set of rates management system data, the commissioner, 
482.30 	in consultation with stakeholders, shall analyze for each service the average difference 
482.31 	in the rate on December 31, 2013, and the framework rate at the individual, provider, 
482.32 	lead agency, and state levels. The commissioner shall issue semiannual reports to the 
482.33 	stakeholders on the difference in rates by service and by county during the banding period 
482.34 	under section 256B.4913, subdivision 4a. The commissioner shall issue the first report 
482.35 	by October 1, 2014.
483.1 	(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders, 
483.2 	shall begin the review and evaluate evaluation of the following values already in 
483.3 	subdivisions 6 to 9, or issues that impact all services, including, but not limited to:
483.4 	(1) values for transportation rates for day services;
483.5 	(2) values for transportation rates in residential services;
483.6 	(3) values for services where monitoring technology replaces staff time;
483.7 	(4) values for indirect services;
483.8 	(5) values for nursing;
483.9 	(6) component values for independent living skills;
483.10 	(7) component values for family foster care that reflect licensing requirements;
483.11 	(8) adjustments to other components to replace the budget neutrality factor;
483.12 	(9) remote monitoring technology for nonresidential services;
483.13 	(10) values for basic and intensive services in residential services;
483.14 	(11) values for the facility use rate in day services;
483.15 	(12) values for workers' compensation as part of employee-related expenses;
483.16 	(13) values for unemployment insurance as part of employee-related expenses;
483.17 	(14) a component value to reflect costs for individuals with rates previously adjusted 
483.18 	for the inclusion of group residential housing rate 3 costs, only for any individual enrolled 
483.19 	as of December 31, 2013; and
483.20 	(15) any changes in state or federal law with an impact on the underlying cost of 
483.21 	providing home and community-based services.
483.22 	(e) The commissioner shall report to the chairs and the ranking minority members of 
483.23 	the legislative committees and divisions with jurisdiction over health and human services 
483.24 	policy and finance with the information and data gathered under paragraphs (b) to (d) 
483.25 	on the following dates:
483.26 	(1) January 15, 2015, with preliminary results and data;
483.27 	(2) January 15, 2016, with a status implementation update, and additional data 
483.28 	and summary information;
483.29 	(3) January 15, 2017, with the full report; and
483.30 	(4) January 15, 2019, with another full report, and a full report once every four 
483.31 	years thereafter.
483.32 	(f) Based on the commissioner's evaluation of the information and data collected 
483.33 	in paragraphs (b) to (d), the commissioner may shall make recommendations to 
483.34 	the legislature to address any potential issues by January 15, 2015, to address any 
483.35 	issues identified during the first year of implementation. After January 15, 2015, the 
483.36 	commissioner may make recommendations to the legislature to address potential issues.
484.1 	(g) The commissioner shall implement a regional adjustment factor to all rate 
484.2 	calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to 
484.3 	implementation, the commissioner shall consult with stakeholders on the methodology to 
484.4 	calculate the adjustment.
484.5 	(h) The commissioner shall provide a public notice via LISTSERV in October of 
484.6 	each year beginning October 1, 2014, containing information detailing legislatively 
484.7 	approved changes in:
484.8 	(1) calculation values including derived wage rates and related employee and 
484.9 	administrative factors;
484.10 	(2) service utilization;
484.11 	(3) county and tribal allocation changes; and
484.12 	(4) information on adjustments made to calculation values and the timing of those 
484.13 	adjustments.
484.14 	The information in this notice shall must be effective January 1 of the following year.

484.15 	Sec. 69. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 15, 
484.16 	is amended to read:
484.17 		Subd. 15.County or tribal allocations. (a) Upon implementation of the disability 
484.18 	waiver rates management system on January 1, 2014, the commissioner shall establish 
484.19 	a method of tracking and reporting the fiscal impact of the disability waiver rates 
484.20 	management system on individual lead agencies.
484.21 	(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to 
484.22 	lead agencies' home and community-based waivered service budget allocations to adjust 
484.23 	for rate differences and the resulting impact on county allocations upon implementation of 
484.24 	the disability waiver rates system.
484.25 	(c) During the first two years of implementation under section 256B.4913, lead 
484.26 	agencies exceeding their allocations under sections 256B.092 and 256B.49 shall only be 
484.27 	held liable for spending in excess of their allocations after a reallocation of resources by 
484.28 	the commissioner under paragraph (b). The commissioner shall reallocate resources under 
484.29 	sections 256B.092, subdivision 12, and 256B.49, subdivision 11a. The commissioner 
484.30 	shall notify lead agencies of this process by July 1, 2014.

484.31 	Sec. 70. Minnesota Statutes 2013 Supplement, section 256B.492, is amended to read:
484.32 	256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE 
484.33 	WITH DISABILITIES.
485.1 	(a) Individuals receiving services under a home and community-based waiver under 
485.2 	section 256B.092 or 256B.49 may receive services in the following settings:
485.3 	(1) an individual's own home or family home;
485.4 	(2) a licensed adult foster care or child foster care setting of up to five people; and
485.5 	(3) community living settings as defined in section 256B.49, subdivision 23, where 
485.6 	individuals with disabilities may reside in all of the units in a building of four or fewer units, 
485.7 	and  who receive services under a home and community-based waiver occupy no more 
485.8 	than the greater of four or 25 percent of the units in a multifamily building of more than 
485.9 	four units, unless required by the Housing Opportunities for Persons with AIDS Program.
485.10 	(b) The settings in paragraph (a) must not:
485.11 	(1) be located in a building that is a publicly or privately operated facility that 
485.12 	provides institutional treatment or custodial care;
485.13 	(2) be located in a building on the grounds of or adjacent to a public or private 
485.14 	institution;
485.15 	(3) be a housing complex designed expressly around an individual's diagnosis or 
485.16 	disability, unless required by the Housing Opportunities for Persons with AIDS Program;
485.17 	(4) be segregated based on a disability, either physically or because of setting 
485.18 	characteristics, from the larger community; and
485.19 	(5) have the qualities of an institution which include, but are not limited to: 
485.20 	regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions 
485.21 	agreed to and documented in the person's individual service plan shall not result in a 
485.22 	residence having the qualities of an institution as long as the restrictions for the person are 
485.23 	not imposed upon others in the same residence and are the least restrictive alternative, 
485.24 	imposed for the shortest possible time to meet the person's needs.
485.25 	(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which 
485.26 	individuals receive services under a home and community-based waiver as of July 1, 
485.27 	2012, and the setting does not meet the criteria of this section.
485.28 	(d) Notwithstanding paragraph (c), a program in Hennepin County established as 
485.29 	part of a Hennepin County demonstration project is qualified for the exception allowed 
485.30 	under paragraph (c).
485.31 	(e)  Notwithstanding paragraphs (a) and (b), a program in Hennepin County, located 
485.32 	in the city of Golden Valley, within the city of Golden Valley's Highway 55 West 
485.33 	redevelopment area, that is not a provider-owned or controlled home and community-based 
485.34 	setting, and is scheduled to open by July 1, 2016, is exempt from the restrictions in 
485.35 	paragraphs (a) and (b). If the program fails to comply with the Centers for Medicare and 
485.36 	Medicaid Services rules for home and community-based settings, the exemption is void.
486.1 	(f) The commissioner shall submit an amendment to the waiver plan no later than 
486.2 	December 31, 2012.

486.3 	Sec. 71. Minnesota Statutes 2012, section 256B.5012, is amended by adding a 
486.4 	subdivision to read:
486.5 		Subd. 16.ICF/DD rate increases effective July 1, 2014.  (a) For the rate period 
486.6 	beginning July 1, 2014, the commissioner shall increase operating payments for each 
486.7 	facility reimbursed under this section equal to five percent of the operating payment 
486.8 	rates in effect on June 30, 2014.
486.9 	(b) For each facility, the commissioner shall apply the rate increase based on 
486.10 	occupied beds, using the percentage specified in this subdivision multiplied by the total 
486.11 	payment rate, including the variable rate but excluding the property-related payment rate 
486.12 	in effect on June 30, 2014. The total rate increase shall include the adjustment provided in 
486.13 	section 256B.501, subdivision 12.
486.14 	(c) To receive the rate increase under paragraph (a), each facility reimbursed under 
486.15 	this section must submit to the commissioner documentation that identifies a quality 
486.16 	improvement project that the facility will implement by June 30, 2015. Documentation 
486.17 	must be provided in a format specified by the commissioner. Projects must:
486.18 	(1) improve the quality of life of intermediate care facility residents in a meaningful 
486.19 	way;
486.20 	(2) improve the quality of services in a measurable way; or
486.21 	(3) deliver good quality service more efficiently while using the savings to enhance 
486.22 	services for the participants served.
486.23 	(d) For a facility that fails to submit the documentation described in paragraph (c) 
486.24 	by a date or in a format specified by the commissioner, the commissioner shall reduce 
486.25 	the facility's rate by one percent effective January 1, 2015.
486.26 	(e) Facilities that receive a rate increase under this subdivision shall use 80 percent 
486.27 	of the additional revenue to increase compensation-related costs for employees directly 
486.28 	employed by the facility on or after July 1, 2014, except:
486.29 	(1) persons employed in the central office of a corporation or entity that has an 
486.30 	ownership interest in the facility or exercises control over the facility; and
486.31 	(2) persons paid by the facility under a management contract.
486.32 	This requirement is subject to audit by the commissioner.
486.33 	(f) Compensation-related costs include:
486.34 	(1) wages and salaries;
487.1 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
487.2 	unemployment taxes, workers' compensation, and mileage reimbursement;
487.3 	(3) the employer's share of health and dental insurance, life insurance, disability 
487.4 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
487.5 	employee retirement accounts; and
487.6 	(4) other benefits provided and workforce needs, including the recruiting and 
487.7 	training of employees as specified in the distribution plan required under paragraph (i).
487.8 	(g) For public employees under a collective bargaining agreement, the increase for 
487.9 	wages and benefits is available and pay rates must be increased only to the extent that the 
487.10 	increases comply with laws governing public employees' collective bargaining. Money 
487.11 	received by a facility under paragraph (e) for pay increases for public employees must be 
487.12 	used only for pay increases implemented between July 1, 2014, and August 1, 2014.
487.13 	(h) For a facility that has employees that are represented by an exclusive bargaining 
487.14 	representative, the provider shall obtain a letter of acceptance of the distribution plan 
487.15 	required under paragraph (i), in regard to the members of the bargaining unit, signed by 
487.16 	the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall 
487.17 	be deemed to have met all the requirements of this subdivision in regard to the members 
487.18 	of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for 
487.19 	the commissioner.
487.20 	(i) A facility that receives a rate adjustment under paragraph (a) that is subject to 
487.21 	paragraph (e) shall prepare, and upon request submit to the commissioner, a distribution 
487.22 	plan that specifies the amount of money the facility expects to receive that is subject to the 
487.23 	requirements of paragraph (e), including how that money will be distributed to increase 
487.24 	compensation for employees. The commissioner may recover funds from a facility that 
487.25 	fails to comply with this requirement.
487.26 	(j) By January 1, 2015, the facility shall post the distribution plan required under 
487.27 	paragraph (i) for a period of at least six weeks in an area of the facility's operation to 
487.28 	which all eligible employees have access and shall provide instructions for employees 
487.29 	who do not believe they have received the wage and other compensation-related increases 
487.30 	specified in the distribution plan. The instructions must include a mailing address, e-mail 
487.31 	address, and telephone number that an employee may use to contact the commissioner or 
487.32 	the commissioner's representative.

487.33 	Sec. 72. Laws 2012, chapter 247, article 4, section 47, is amended to read:
488.1 	Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION 
488.2 	TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET 
488.3 	METHODOLOGY.
 488.4 	By July 1, 2012 2014, if necessary, the commissioner shall request an amendment to 
488.5 	the home and community-based services waivers authorized under Minnesota Statutes, 
488.6 	sections 256B.092 and 256B.49, to establish an exception to the consumer-directed 
488.7 	community supports budget methodology to provide up to 20 percent more funds for those 
488.8 	participants who have their 21st birthday and graduate from high school during between 
488.9 	 2013 to 2015 and are authorized for more services under consumer-directed community 
488.10 	supports prior to graduation than what the amount  they are eligible to receive under the 
488.11 	current consumer-directed community supports budget methodology. The exception is 
488.12 	limited to those who can demonstrate that they will have to leave consumer-directed 
488.13 	community supports and use other waiver services because their need for day or 
488.14 	employment supports cannot be met within the consumer-directed community supports 
488.15 	budget limits. The commissioner shall consult with the stakeholder group authorized 
488.16 	under Minnesota Statutes, section 256B.0657, subdivision 11, to implement this provision. 
488.17 	The exception process shall be effective upon federal approval for persons eligible during 
488.18 	2013 and 2014 through June 30, 2017.

488.19 	Sec. 73. Laws 2013, chapter 108, article 7, section 14, the effective date, is amended to 
488.20 	read:

488.21 	EFFECTIVE DATE. Subdivisions 1 to 7 and 9, are effective upon federal approval 
488.22 	consistent with subdivision 11, but no earlier than March July 1, 2014. Subdivisions 
488.23 	8, 10, and 11 are effective July 1, 2013.

488.24 	EFFECTIVE DATE. This section is effective retroactively from March 1, 2014.

488.25 	Sec. 74. HOME AND COMMUNITY-BASED SETTINGS TRANSITION PLAN.
 488.26 	The commissioner of human services shall develop a transition plan to comply 
488.27 	with the Centers for Medicare and Medicaid Services final rule defining home and 
488.28 	community-based settings published on January 16, 2014, Code of Federal Regulations, 
488.29 	title 42, section 441.301(c)(4)-(5).  In developing the plan, the commissioner shall consult 
488.30 	with individuals with disabilities, seniors, and other stakeholders, including, but not 
488.31 	limited to advocates, providers, lead agencies, other state agencies, and the Olmstead 
488.32 	subcabinet.  The commissioner shall submit the plan to the Centers for Medicare and 
488.33 	Medicaid Services by December 31, 2014. 
489.1 	By January 15, 2015, the commissioner shall provide a report with the plan 
489.2 	submitted to the Centers for Medicare and Medicaid Services, as well as any changes as 
489.3 	a result of negotiations that have occurred with the Centers for Medicare and Medicaid 
489.4 	Services, to the chairs and ranking minority members of the house of representatives and 
489.5 	senate policy and finance committees with jurisdiction over health and human services.  
489.6 	This report must contain any recommended legislation and funding requests necessary 
489.7 	to implement the transition plan.

489.8 	Sec. 75.  PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 
489.9 	1, 2014.
 489.10 	(a) The commissioner of human services shall increase reimbursement rates, grants, 
489.11 	allocations, individual limits, and rate limits, as applicable, by five percent for the rate 
489.12 	period beginning July 1, 2014, for services rendered on or after July 1, 2014. County or 
489.13 	tribal contracts for services, grants, and programs under paragraph (b) must be amended to 
489.14 	pass through these rate increases by September 1, 2014.
489.15 	(b) The rate changes described in this section must be provided to:
489.16 	(1) home and community-based waivered services for persons with developmental 
489.17 	disabilities, including consumer-directed community supports, under Minnesota Statutes, 
489.18 	section 256B.092;
489.19 	(2) waivered services under community alternatives for disabled individuals, 
489.20 	including consumer-directed community supports, under Minnesota Statutes, section 
489.21 	256B.49;
489.22 	(3) community alternative care waivered services, including consumer-directed 
489.23 	community supports, under Minnesota Statutes, section 256B.49;
489.24 	(4) brain injury waivered services, including consumer-directed community 
489.25 	supports, under Minnesota Statutes, section 256B.49;
489.26 	(5) home and community-based waivered services for the elderly under Minnesota 
489.27 	Statutes, section 256B.0915;
489.28 	(6) nursing services and home health services under Minnesota Statutes, section 
489.29 	256B.0625, subdivision 6a;
489.30 	(7) personal care services and qualified professional supervision of personal care 
489.31 	services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
489.32 	(8) private duty nursing services under Minnesota Statutes, section 256B.0625, 
489.33 	subdivision 7;
489.34 	(9) community first services and supports under Minnesota Statutes, section 256B.85;
489.35 	(10) essential community supports under Minnesota Statutes, section 256B.0922;
490.1 	(11) day training and habilitation services for adults with developmental disabilities 
490.2 	under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to 
490.3 	counties of the rate adjustments on day training and habilitation services, provided as a 
490.4 	social service;
490.5 	(12) alternative care services under Minnesota Statutes, section 256B.0913;
490.6 	(13) living skills training programs for persons with intractable epilepsy who need 
490.7 	assistance in the transition to independent living under Laws 1988, chapter 689;
490.8 	(14) semi-independent living services (SILS) under Minnesota Statutes, section 
490.9 	252.275;
490.10 	(15) consumer support grants under Minnesota Statutes, section 256.476;
490.11 	(16) family support grants under Minnesota Statutes, section 252.32;
490.12 	(17) housing access grants under Minnesota Statutes, section 256B.0658;
490.13 	(18) self-advocacy grants under Laws 2009, chapter 101;
490.14 	(19) technology grants under Laws 2009, chapter 79;
490.15 	(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and 
490.16 	256B.0917;
490.17 	(21) deaf and hard-of-hearing grants, including community support services for deaf 
490.18 	and hard-of-hearing adults with mental illness who use or wish to use sign language as their 
490.19 	primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
490.20 	(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233, 
490.21 	256C.25, and 256C.261;
490.22 	(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01, 
490.23 	subdivision 24;
490.24 	(24) transition initiative grants under Minnesota Statutes, section 256.478;
490.25 	(25) employment support grants under Minnesota Statutes, section 256B.021, 
490.26 	subdivision 6; and
490.27 	(26) grants provided to people who are eligible for the Housing Opportunities for 
490.28 	Persons with AIDS program under Minnesota Statutes, section 256B.492.
490.29 	(c) A managed care plan or county-based purchasing plan receiving state payments 
490.30 	for the services grants and programs in paragraph (b) must include these increases in their 
490.31 	payments to providers. To implement the rate increase in paragraph (a), capitation rates 
490.32 	paid by the commissioner to managed care plans and county-based purchasing plans under 
490.33 	Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the services 
490.34 	and programs specified in paragraph (b) for the period beginning July 1, 2014.
490.35 	(d) Counties shall increase the budget for each recipient of consumer-directed 
490.36 	community supports by the amount in paragraph (a) on July 1, 2014.
491.1 	(e) To receive the rate increase described in this section, providers under paragraphs 
491.2 	(a) and (b) must submit to the commissioner documentation that identifies a quality 
491.3 	improvement project that the provider will implement by June 30, 2015. Documentation 
491.4 	must be provided in a format specified by the commissioner. Projects must:
491.5 	(1) improve the quality of life of home and community-based services recipients in 
491.6 	a meaningful way;
491.7 	(2) improve the quality of services in a measurable way; or
491.8 	(3) deliver good quality service more efficiently while using the savings to enhance 
491.9 	services for the participants served.
491.10 	Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject 
491.11 	to this requirement.
491.12 	(f) For a provider that fails to submit documentation described in paragraph (e) by 
491.13 	a date or in a format specified by the commissioner, the commissioner shall reduce the 
491.14 	provider's rate by one percent effective January 1, 2015.
491.15 	(g) Providers that receive a rate increase under paragraph (a) shall use 80 percent 
491.16 	of the additional revenue to increase compensation-related costs for employees directly 
491.17 	employed by the program on or after July 1, 2014, except:
491.18 	(1) persons employed in the central office of a corporation or entity that has an 
491.19 	ownership interest in the provider or exercises control over the provider; and
491.20 	(2) persons paid by the provider under a management contract.
491.21 	This requirement is subject to audit by the commissioner.
491.22 	(h) Compensation-related costs include:
491.23 	(1) wages and salaries;
491.24 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
491.25 	unemployment taxes, workers' compensation, and mileage reimbursement;
491.26 	(3) the employer's share of health and dental insurance, life insurance, disability 
491.27 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
491.28 	employee retirement accounts; and
491.29 	(4) other benefits provided and workforce needs, including the recruiting and 
491.30 	training of employees as specified in the distribution plan required under paragraph (m).
491.31 	(i) For public employees under a collective bargaining agreement, the increase for 
491.32 	wages and benefits is available and pay rates must be increased only to the extent that the 
491.33 	increases comply with laws governing public employees' collective bargaining. Money 
491.34 	received by a provider for pay increases for public employees under paragraph (g) must be 
491.35 	used only for pay increases implemented between July 1, 2014, and August 1, 2014.
492.1 	(j) For a provider that has employees that are represented by an exclusive bargaining 
492.2 	representative, the provider shall obtain a letter of acceptance of the distribution plan 
492.3 	required under paragraph (m), in regard to the members of the bargaining unit, signed by 
492.4 	the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall 
492.5 	be deemed to have met all the requirements of this section in regard to the members of 
492.6 	the bargaining unit. Upon request, the provider shall produce the letter of acceptance for 
492.7 	the commissioner.
492.8 	(k) The commissioner shall amend state grant contracts that include direct 
492.9 	personnel-related grant expenditures to include the allocation for the portion of the 
492.10 	contract related to employee compensation. Grant contracts for compensation-related 
492.11 	services must be amended to pass through these adjustments by September 1, 2014, and 
492.12 	must be retroactive to July 1, 2014.
492.13 	(l) The Board on Aging and its area agencies on aging shall amend their grants that 
492.14 	include direct personnel-related grant expenditures to include the rate adjustment for the 
492.15 	portion of the grant related to employee compensation. Grants for compensation-related 
492.16 	services must be amended to pass through these adjustments by September 1, 2014, and 
492.17 	must be retroactive to July 1, 2014.
492.18 	(m) A provider that receives a rate adjustment under paragraph (a) that is subject to 
492.19 	paragraph (g) shall prepare, and upon request submit to the commissioner, a distribution 
492.20 	plan that specifies the amount of money the provider expects to receive that is subject 
492.21 	to the requirements of paragraph (g), including how that money will be distributed to 
492.22 	increase compensation for employees. The commissioner may recover funds from a 
492.23 	provider that fails to comply with this requirement.
492.24 	(n) By January 1, 2015, the provider shall post the distribution plan required under 
492.25 	paragraph (m) for a period of at least six weeks in an area of the provider's operation to 
492.26 	which all eligible employees have access and shall provide instructions for employees 
492.27 	who do not believe they have received the wage and other compensation-related increases 
492.28 	specified in the distribution plan. The instructions must include a mailing address, e-mail 
492.29 	address, and telephone number that the employee may use to contact the commissioner or 
492.30 	the commissioner's representative.
492.31 	(o) For providers with rates established under Minnesota Statutes, section 
492.32 	256B.4914, and with a historical rate established under Minnesota Statutes, section 
492.33 	256B.4913, subdivision 4a, paragraph (b), that is greater than the rate established under 
492.34 	Minnesota Statutes, section 256B.4914, the requirements in paragraph (g) must only apply 
492.35 	to the portion of the rate increase that exceeds the difference between the rate established 
493.1 	under Minnesota Statutes, section 256B.4914, and the banding value established under 
493.2 	Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b).

493.3 	Sec. 76. DISABILITY WAIVER REIMBURSEMENT RATE ADJUSTMENTS.
 493.4 		Subdivision 1.Historical rate. The commissioner of human services shall adjust 
493.5 	the historical rates calculated in Minnesota Statutes, section 256B.4913, subdivision 4a, 
493.6 	paragraph (b), in effect during the banding period under Minnesota Statutes, section 
493.7 	256B.4913, subdivision 4a, paragraph (a), for the reimbursement rate increases effective 
493.8 	April 1, 2014, and any rate modification enacted during the 2014 legislative session.
493.9 		Subd. 2.Residential support services. The commissioner of human services 
493.10 	shall adjust the rates calculated in Minnesota Statutes, section 256B.4914, subdivision 6, 
493.11 	paragraphs (b), clause (4), and (c), for the reimbursement rate increases effective April 1, 
493.12 	2014, and any rate modification enacted during the 2014 legislative session.
493.13 		Subd. 3.Day programs. The commissioner of human services shall adjust the rates 
493.14 	calculated in Minnesota Statutes, section 256B.4914, subdivision 7, paragraph (a), clauses 
493.15 	(15) to (17), for the reimbursement rate increases effective April 1, 2014, and any rate 
493.16 	modification enacted during the 2014 legislative session.
493.17 		Subd. 4.Unit-based services with programming. The commissioner of human 
493.18 	services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, 
493.19 	subdivision 8, paragraph (a), clause (14), for the reimbursement rate increases effective 
493.20 	April 1, 2014, and any rate modification enacted during the 2014 legislative session.
493.21 		Subd. 5.Unit-based services without programming. The commissioner of 
493.22 	human services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, 
493.23 	subdivision 9, paragraph (a), clause (23), for the reimbursement rate increases effective 
493.24 	April 1, 2014, and any rate modification enacted during the 2014 legislative session.

493.25 	Sec. 77. REVISOR'S INSTRUCTION.
 493.26 	(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to 
493.27 	in column A, the revisor of statutes shall delete the word or phrase in column B and 
493.28 	insert the phrase in column C. The revisor shall also make related grammatical changes 
493.29 	and changes in headnotes.

493.30	Column A
	Column B
	Column C
	
493.31
493.32	section 158.13
	defective persons
	persons with developmental 
disabilities
	
493.33
493.34	section 158.14
	defective persons
	persons with developmental 
disabilities
	
493.35
493.36	section 158.17
	defective persons
	persons with developmental 
disabilities
	
494.1
494.2	section 158.18
	persons not defective
	persons without 
developmental disabilities
	
494.3
494.4		defective person
	person with developmental 
disabilities
	
494.5
494.6		defective persons
	persons with developmental 
disabilities
	
494.7
494.8	section 158.19
	defective
	person with developmental 
disabilities
	
494.9494.10
	section 256.94
	defective
	children with developmental 
disabilities and
	
494.11
494.12	section 257.175
	defective
	children with developmental 
disabilities and
	
494.13	part 2911.1350
	retardation
	developmental disability
	
494.14 	(b) The revisor of statutes shall change the term "health and safety" to "health and 
494.15 	welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061, 
494.16 	245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.

494.17 	ARTICLE 28
494.18 	PUBLIC ASSISTANCE SIMPLIFICATION

494.19 	Section 1. Minnesota Statutes 2012, section 254B.04, subdivision 3, is amended to read:
494.20 		Subd. 3.Amount of contribution. The commissioner shall adopt a sliding fee scale 
494.21 	to determine the amount of contribution to be required from persons under this section. 
494.22 	The commissioner may adopt rules to amend existing fee scales. The commissioner 
494.23 	may establish a separate fee scale for recipients of chemical dependency transitional and 
494.24 	extended care rehabilitation services that provides for the collection of fees for board and 
494.25 	lodging expenses. The fee schedule shall ensure that employed persons are allowed the 
494.26 	income disregards and savings accounts that are allowed residents of community mental 
494.27 	illness facilities under section 256D.06, subdivisions subdivision 1 and 1b. The fee scale 
494.28 	must not provide assistance to persons whose income is more than 115 percent of the 
494.29 	state median income. Payments of liabilities under this section are medical expenses for 
494.30 	purposes of determining spenddown under sections 256B.055, 256B.056, 256B.06, and 
494.31 	256D.01 to 256D.21. The required amount of contribution established by the fee scale in 
494.32 	this subdivision is also the cost of care responsibility subject to collection under section 
494.33 	254B.06, subdivision 1.

494.34 	EFFECTIVE DATE. This section is effective October 1, 2015.

494.35 	Sec. 2. Minnesota Statutes 2012, section 256D.02, subdivision 8, is amended to read:
495.1 		Subd. 8.Income. "Income" means any form of income, including remuneration 
495.2 	for services performed as an employee and net earnings earned income from rental 
495.3 	income and self-employment earnings, reduced by the amount attributable to employment 
495.4 	expenses as defined by the commissioner. The amount attributable to employment 
495.5 	expenses shall include amounts paid or withheld for federal and state personal income 
495.6 	taxes and federal Social Security taxes as described under section 256P.05.
495.7 	Income includes any payments received as an annuity, retirement, or disability 
495.8 	benefit, including veteran's or workers' compensation; old age, survivors, and disability 
495.9 	insurance; railroad retirement benefits; unemployment benefits; and benefits under any 
495.10 	federally aided categorical assistance program, supplementary security income, or other 
495.11 	assistance program; rents, dividends, interest and royalties; and support and maintenance 
495.12 	payments. Such payments may not be considered as available to meet the needs of any 
495.13 	person other than the person for whose benefit they are received, unless that person is 
495.14 	a family member or a spouse and the income is not excluded under section 256D.01, 
495.15 	subdivision 1a. Goods and services provided in lieu of cash payment shall be excluded 
495.16 	from the definition of income, except that payments made for room, board, tuition or 
495.17 	fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary 
495.18 	institution, and payments made on behalf of an applicant or recipient participant which 
495.19 	the applicant or recipient participant could legally demand to receive personally in cash, 
495.20 	must be included as income. Benefits of an applicant or recipient participant, such as those 
495.21 	administered by the Social Security Administration, that are paid to a representative 
495.22 	payee, and are spent on behalf of the applicant or recipient participant, are considered 
495.23 	available income of the applicant or recipient participant.

495.24 	EFFECTIVE DATE. This section is effective February 1, 2015.

495.25 	Sec. 3. Minnesota Statutes 2012, section 256D.02, subdivision 12, is amended to read:
495.26 		Subd. 12.County Agency. "County agency" means the agency designated by the 
495.27 	county board of commissioners, human services boards, local social services agencies 
495.28 	in the several counties of the state or multicounty local social services agencies or 
495.29 	departments where those have been established in accordance with law "Agency" has the 
495.30 	meaning given in section 256P.01, subdivision 2.

495.31 	Sec. 4. Minnesota Statutes 2012, section 256D.05, subdivision 5, is amended to read:
495.32 		Subd. 5.Transfers of property. The equity value of real and personal property 
495.33 	transferred without reasonable compensation within 12 months preceding the date of 
495.34 	application for general assistance must be included in determining the resources of an 
496.1 	assistance unit in the same manner as in the Minnesota family investment program under 
496.2 	chapter 256J as described in section 256P.02, subdivision 1, paragraph (c).

496.3 	EFFECTIVE DATE. This section is effective June 1, 2016.

496.4 	Sec. 5. Minnesota Statutes 2012, section 256D.06, subdivision 1, is amended to read:
496.5 		Subdivision 1.Eligibility; amount of assistance. General assistance shall be 
496.6 	granted in an amount that when added to the nonexempt income actually available to the 
496.7 	assistance unit, the total amount equals the applicable standard of assistance for general 
496.8 	assistance. In determining eligibility for and the amount of assistance for an individual or 
496.9 	married couple, the county agency shall apply the earned income disregard the first $50 of 
496.10 	earned income per month as determined in section 256P.03.

496.11 	EFFECTIVE DATE. This section is effective October 1, 2015.

496.12 	Sec. 6. Minnesota Statutes 2012, section 256D.08, subdivision 1, is amended to read:
496.13 		Subdivision 1.Eligibility; excluded resources. In determining eligibility of an 
496.14 	assistance unit, the following resources shall be excluded:
496.15 	(1) real or personal property or liquid assets which do not exceed $1,000; and
496.16 	(2) other property which has been determined, according to limitations contained in 
496.17 	rules promulgated by the commissioner, to be essential to the assistance unit as a means of 
496.18 	self-support or self-care or which is producing income that is being used for the support 
496.19 	of the assistance unit. The commissioner shall further provide by rule the conditions for 
496.20 	those situations in which property not excluded under this subdivision may be retained by 
496.21 	the assistance unit where there is a reasonable probability that in the foreseeable future the 
496.22 	property will be used for the self-support of the assistance unit; and
496.23 	(3) payments, made according to litigation and subsequent appropriation by the 
496.24 	United States Congress, of funds to compensate members of Indian tribes for the taking of 
496.25 	tribal land by the federal government. To establish eligibility for general assistance under 
496.26 	this chapter, an agency must use the procedures established in section 256P.02.

496.27 	EFFECTIVE DATE. This section is effective June 1, 2016.

496.28 	Sec. 7. Minnesota Statutes 2012, section 256D.08, is amended by adding a subdivision 
496.29 	to read:
496.30 		Subd. 3.Verification.  To verify eligibility for general assistance under this chapter, 
496.31 	an agency must use the procedures established in section 256P.04.

497.1 	EFFECTIVE DATE. This section is effective February 1, 2015.

497.2 	Sec. 8. Minnesota Statutes 2012, section 256D.10, is amended to read:
497.3 	256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION.
497.4 	No grant of general assistance except one made pursuant to section 256D.06, 
497.5 	subdivision 2; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended 
497.6 	unless the recipient receives notice and is afforded an opportunity to be heard prior to 
497.7 	any action by the county agency.
497.8 	Nothing herein shall deprive a recipient of the right to full administrative and judicial 
497.9 	review of an order or determination of a county agency as provided for in section 256.045
497.10 	subsequent to any action taken by a county agency after a prior hearing.

497.11 	EFFECTIVE DATE. This section is effective June 1, 2016.

497.12 	Sec. 9. Minnesota Statutes 2012, section 256D.405, subdivision 1, is amended to read:
497.13 		Subdivision 1.Verification of information. The county agency shall request, and 
497.14 	applicants and recipients shall provide and verify, all information necessary to determine 
497.15 	initial and continuing eligibility and assistance payment amounts. If necessary, the county 
497.16 	agency shall assist the applicant or recipient in obtaining verifications. If the applicant or 
497.17 	recipient refuses or fails without good cause to provide the information or verification, the 
497.18 	county agency shall deny or terminate assistance An agency must apply section 256P.04 
497.19 	when documenting, verifying, and recertifying eligibility under this chapter. An agency 
497.20 	must only require verification of information necessary to determine eligibility under this 
497.21 	chapter and the amount of the assistance payment.

497.22 	EFFECTIVE DATE. This section is effective February 1, 2015.

497.23 	Sec. 10. Minnesota Statutes 2012, section 256D.405, subdivision 3, is amended to read:
497.24 		Subd. 3.Reports. Recipients Participants must report changes in circumstances that 
497.25 	affect eligibility or assistance payment amounts within ten days of the change. Recipients
497.26 	 Participants who do not receive SSI because of excess income must complete a monthly 
497.27 	report form if they have earned income, if they have income deemed to them from a 
497.28 	financially responsible relative with whom the recipient participant resides, or if they have 
497.29 	income deemed to them by a sponsor. If the report form is not received before the end of 
497.30 	the month in which it is due, the county agency must terminate assistance. The termination 
497.31 	shall be effective on the first day of the month following the month in which the report 
497.32 	was due. If a complete report is received within the month the assistance was terminated, 
498.1 	the assistance unit is considered to have continued its application for assistance, effective 
498.2 	the first day of the month the assistance was terminated.

498.3 	EFFECTIVE DATE. This section is effective February 1, 2015.

498.4 	Sec. 11. Minnesota Statutes 2012, section 256D.425, subdivision 2, is amended to read:
498.5 		Subd. 2.Resource standards. (a) For persons receiving supplemental security 
498.6 	income benefits, the resource standards and restrictions for supplemental aid under 
498.7 	this section shall be those used to determine eligibility for disabled individuals in the 
498.8 	supplemental security income program.
498.9 	(b) For persons not receiving supplemental security income benefits due to excess 
498.10 	income or resources, but whose income and resources are within the limits of the Minnesota 
498.11 	supplemental aid program, the resource standards shall be those in section 256P.02.

498.12 	EFFECTIVE DATE. This section is effective June 1, 2016.

498.13 	Sec. 12. Minnesota Statutes 2012, section 256I.03, is amended by adding a subdivision 
498.14 	to read:
498.15 		Subd. 1a.Agency. "Agency" has the meaning given in section 256P.01, subdivision 
498.16 	2.

498.17 	Sec. 13. Minnesota Statutes 2012, section 256I.04, subdivision 1, is amended to read:
498.18 		Subdivision 1.Individual eligibility requirements. An individual is eligible for 
498.19 	and entitled to a group residential housing payment to be made on the individual's behalf 
498.20 	if the county agency has approved the individual's residence in a group residential housing 
498.21 	setting and the individual meets the requirements in paragraph (a) or (b).
498.22 	(a) The individual is aged, blind, or is over 18 years of age and disabled as 
498.23 	determined under the criteria used by the title II program of the Social Security Act, and 
498.24 	meets the resource restrictions and standards of the supplemental security income program
498.25 	 section 256P.02, and the individual's countable income after deducting the (1) exclusions 
498.26 	and disregards of the SSI program, (2) the medical assistance personal needs allowance 
498.27 	under section 256B.35, and (3) an amount equal to the income actually made available to 
498.28 	a community spouse by an elderly waiver recipient participant under the provisions of 
498.29 	sections 256B.0575, paragraph (a), clause (4), and 256B.058, subdivision 2, is less than 
498.30 	the monthly rate specified in the county agency's agreement with the provider of group 
498.31 	residential housing in which the individual resides.
499.1 	(b) The individual meets a category of eligibility under section 256D.05, subdivision 
499.2 	1, paragraph (a), and the individual's resources are less than the standards specified by 
499.3 	section 256D.08 256P.02, and the individual's countable income as determined under 
499.4 	sections 256D.01 to 256D.21, less the medical assistance personal needs allowance under 
499.5 	section 256B.35 is less than the monthly rate specified in the county agency's agreement 
499.6 	with the provider of group residential housing in which the individual resides.

499.7 	EFFECTIVE DATE. This section is effective June 1, 2016.

499.8 	Sec. 14. Minnesota Statutes 2012, section 256J.08, is amended by adding a subdivision 
499.9 	to read:
499.10 		Subd. 2a.Agency. "Agency" has the meaning given in section 256P.01, subdivision 
499.11 	2.

499.12 	Sec. 15. Minnesota Statutes 2012, section 256J.08, subdivision 47, is amended to read:
499.13 		Subd. 47.Income. "Income" means cash or in-kind benefit, whether earned or 
499.14 	unearned, received by or available to an applicant or participant that is not an asset
499.15 	 property under section 256J.20 256P.02.

499.16 	EFFECTIVE DATE. This section is effective June 1, 2016.

499.17 	Sec. 16. Minnesota Statutes 2012, section 256J.08, subdivision 57, is amended to read:
499.18 		Subd. 57.Minnesota family investment program or MFIP. "Minnesota family 
499.19 	investment program" or "MFIP" means the assistance program authorized in this chapter 
499.20 	and chapter 256K.

499.21 	Sec. 17. Minnesota Statutes 2012, section 256J.08, subdivision 83, is amended to read:
499.22 		Subd. 83.Significant change. "Significant change" means a decline in gross 
499.23 	income of the amount of the disregard as defined in subdivision 24 section 256P.03 or 
499.24 	more from the income used to determine the grant for the current month.

499.25 	EFFECTIVE DATE. This section is effective October 1, 2015.

499.26 	Sec. 18. Minnesota Statutes 2012, section 256J.10, is amended to read:
499.27 	256J.10 MFIP ELIGIBILITY REQUIREMENTS.
500.1 	To be eligible for MFIP, applicants must meet the general eligibility requirements 
500.2 	in sections 256J.11 to 256J.15, the property limitations in section 256J.20 256P.02, and 
500.3 	the income limitations in section 256J.21.

500.4 	EFFECTIVE DATE. This section is effective June 1, 2016.

500.5 	Sec. 19. Minnesota Statutes 2013 Supplement, section 256J.21, subdivision 3, is 
500.6 	amended to read:
500.7 		Subd. 3.Initial income test. The county agency shall determine initial eligibility 
500.8 	by considering all earned and unearned income that is not excluded under subdivision 2. 
500.9 	To be eligible for MFIP, the assistance unit's countable income minus the earned income 
500.10 	disregards in paragraphs paragraph (a) and (b) section 256P.03 must be below the family 
500.11 	wage level according to section 256J.24 for that size assistance unit.
500.12 	(a) The initial eligibility determination must disregard the following items:
500.13 	(1) the employment earned income disregard is 18 percent of the gross earned 
500.14 	income whether or not the member is working full time or part time as determined in 
500.15 	section 256P.03;
500.16 	(2) dependent care costs must be deducted from gross earned income for the actual 
500.17 	amount paid for dependent care up to a maximum of $200 per month for each child less 
500.18 	than two years of age, and $175 per month for each child two years of age and older under 
500.19 	this chapter and chapter 119B;
500.20 	(3) all payments made according to a court order for spousal support or the support 
500.21 	of children not living in the assistance unit's household shall be disregarded from the 
500.22 	income of the person with the legal obligation to pay support, provided that, if there has 
500.23 	been a change in the financial circumstances of the person with the legal obligation to pay 
500.24 	support since the support order was entered, the person with the legal obligation to pay 
500.25 	support has petitioned for a modification of the support order; and
500.26 	(4) an allocation for the unmet need of an ineligible spouse or an ineligible child 
500.27 	under the age of 21 for whom the caregiver is financially responsible and who lives with 
500.28 	the caregiver according to section 256J.36.
500.29 	(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant 
500.30 	units when at least one member has received MFIP in this state within four months of 
500.31 	the most recent application for MFIP, apply the disregard as defined in section 256J.08, 
500.32 	subdivision 24, for all unit members.
500.33 	After initial eligibility is established, the assistance payment calculation is based on 
500.34 	the monthly income test.

501.1 	EFFECTIVE DATE. This section is effective October 1, 2015.

501.2 	Sec. 20. Minnesota Statutes 2012, section 256J.21, subdivision 4, is amended to read:
501.3 		Subd. 4.Monthly income test and determination of assistance payment.
 501.4 	The county agency shall determine ongoing eligibility and the assistance payment 
501.5 	amount according to the monthly income test. To be eligible for MFIP, the result of the 
501.6 	computations in paragraphs (a) to (e) must be at least $1.
501.7 	(a) Apply an income disregard as defined in section 256J.08, subdivision 24 256P.03, 
501.8 	to gross earnings and subtract this amount from the family wage level. If the difference is 
501.9 	equal to or greater than the MFIP transitional standard of need, the assistance payment is 
501.10 	equal to the MFIP transitional standard of need. If the difference is less than the MFIP 
501.11 	transitional standard of need, the assistance payment is equal to the difference. The 
501.12 	employment earned income disregard in this paragraph must be deducted every month 
501.13 	there is earned income.
501.14 	(b) All payments made according to a court order for spousal support or the support 
501.15 	of children not living in the assistance unit's household must be disregarded from the 
501.16 	income of the person with the legal obligation to pay support, provided that, if there has 
501.17 	been a change in the financial circumstances of the person with the legal obligation to pay 
501.18 	support since the support order was entered, the person with the legal obligation to pay 
501.19 	support has petitioned for a modification of the court order.
501.20 	(c) An allocation for the unmet need of an ineligible spouse or an ineligible child 
501.21 	under the age of 21 for whom the caregiver is financially responsible and who lives with 
501.22 	the caregiver must be made according to section 256J.36.
501.23 	(d) Subtract unearned income dollar for dollar from the MFIP transitional standard 
501.24 	of need to determine the assistance payment amount.
501.25 	(e) When income is both earned and unearned, the amount of the assistance payment 
501.26 	must be determined by first treating gross earned income as specified in paragraph (a). 
501.27 	After determining the amount of the assistance payment under paragraph (a), unearned 
501.28 	income must be subtracted from that amount dollar for dollar to determine the assistance 
501.29 	payment amount.
501.30 	(f) When the monthly income is greater than the MFIP transitional standard of need
501.31 	 after deductions and the income will only exceed the standard for one month, the county 
501.32 	agency must suspend the assistance payment for the payment month.

501.33 	EFFECTIVE DATE. This section is effective October 1, 2015.

501.34 	Sec. 21. Minnesota Statutes 2012, section 256J.30, subdivision 4, is amended to read:
502.1 		Subd. 4.Participant's completion of recertification of eligibility form. A 
502.2 	participant must complete forms prescribed by the commissioner which are required 
502.3 	for recertification of eligibility according to section 256J.32, subdivision 6 256P.04, 
502.4 	subdivisions 8 and 9.

502.5 	EFFECTIVE DATE. This section is effective February 1, 2015.

502.6 	Sec. 22. Minnesota Statutes 2013 Supplement, section 256J.30, subdivision 9, is 
502.7 	amended to read:
502.8 		Subd. 9.Changes that must be reported. A caregiver must report the changes 
502.9 	or anticipated changes specified in clauses (1) to (16) (15) within ten days of the date 
502.10 	they occur, at the time of the periodic recertification of eligibility under section 256J.32, 
502.11 	subdivision 6 256P.04, subdivisions 8 and 9, or within eight calendar days of a reporting 
502.12 	period as in subdivision 5, whichever occurs first. A caregiver must report other changes 
502.13 	at the time of the periodic recertification of eligibility under section 256J.32, subdivision 
502.14 	6 256P.04, subdivisions 8 and 9, or at the end of a reporting period under subdivision 
502.15 	5, as applicable. A caregiver must make these reports in writing to the county agency. 
502.16 	When a county an agency could have reduced or terminated assistance for one or more 
502.17 	payment months if a delay in reporting a change specified under clauses (1) to (15) (14)
502.18 	 had not occurred, the county agency must determine whether a timely notice under section 
502.19 	256J.31, subdivision 4, could have been issued on the day that the change occurred. When 
502.20 	a timely notice could have been issued, each month's overpayment subsequent to that 
502.21 	notice must be considered a client error overpayment under section 256J.38. Calculation 
502.22 	of overpayments for late reporting under clause (16) (15) is specified in section 256J.09, 
502.23 	subdivision 9. Changes in circumstances which must be reported within ten days must 
502.24 	also be reported on the MFIP household report form for the reporting period in which 
502.25 	those changes occurred. Within ten days, a caregiver must report:
502.26 	(1) a change in initial employment;
502.27 	(2) a change in initial receipt of unearned income;
502.28 	(3) a recurring change in unearned income;
502.29 	(4) a nonrecurring change of unearned income that exceeds $30;
502.30 	(5) the receipt of a lump sum;
502.31 	(6) an increase in assets that may cause the assistance unit to exceed asset limits;
502.32 	(7) a change in the physical or mental status of an incapacitated member of the 
502.33 	assistance unit if the physical or mental status is the basis for reducing the hourly 
502.34 	participation requirements under section 256J.55, subdivision 1, or the type of activities 
502.35 	included in an employment plan under section 256J.521, subdivision 2;
503.1 	(8) a change in employment status;
503.2 	(9) information affecting an exception under section 256J.24, subdivision 9;
503.3 	(10) (9) the marriage or divorce of an assistance unit member;
503.4 	(11) (10) the death of a parent, minor child, or financially responsible person;
503.5 	(12) (11) a change in address or living quarters of the assistance unit;
503.6 	(13) (12) the sale, purchase, or other transfer of property;
503.7 	(14) (13) a change in school attendance of a caregiver under age 20 or an employed 
503.8 	child;
503.9 	(15) (14) filing a lawsuit, a workers' compensation claim, or a monetary claim 
503.10 	against a third party; and
503.11 	(16) (15) a change in household composition, including births, returns to and 
503.12 	departures from the home of assistance unit members and financially responsible persons, 
503.13 	or a change in the custody of a minor child.

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

503.15 	Sec. 23. Minnesota Statutes 2012, section 256J.32, subdivision 1, is amended to read:
503.16 		Subdivision 1.Verification of information. A county An agency must apply section 
503.17 	256P.04 when documenting, verifying, and recertifying MFIP eligibility. An agency must 
503.18 	only require verification of information necessary to determine MFIP eligibility and the 
503.19 	amount of the assistance payment.

503.20 	EFFECTIVE DATE. This section is effective February 1, 2015.

503.21 	Sec. 24. Minnesota Statutes 2012, section 256J.33, subdivision 2, is amended to read:
503.22 		Subd. 2.Prospective eligibility. A county An agency must determine whether the 
503.23 	eligibility requirements that pertain to an assistance unit, including those in sections 
503.24 	256J.11 to 256J.15 and 256J.20 256P.02, will be met prospectively for the payment 
503.25 	month. Except for the provisions in section 256J.34, subdivision 1, the income test will be 
503.26 	applied retrospectively.

503.27 	EFFECTIVE DATE. This section is effective June 1, 2016.

503.28 	Sec. 25. Minnesota Statutes 2012, section 256J.37, as amended by Laws 2013, chapter 
503.29 	107, article 4, section 15, is amended to read:
503.30 	256J.37 TREATMENT OF INCOME AND LUMP SUMS.
504.1 		Subdivision 1.Deemed income from ineligible household assistance unit
504.2 	 members. Unless otherwise provided under subdivision 1a or 1b, The income of ineligible 
504.3 	household assistance unit members must be deemed after allowing the following disregards:
504.4 	(1) the first 18 percent of the ineligible family member's gross an earned income
504.5 	 disregard as determined under section 256P.03;
504.6 	(2) amounts the ineligible person actually paid to individuals not living in the 
504.7 	same household but whom the ineligible person claims or could claim as dependents for 
504.8 	determining federal personal income tax liability;
504.9 	(3) (2) all payments made by the ineligible person according to a court order for 
504.10 	spousal support or the support of children not living in the assistance unit's household, 
504.11 	provided that, if there has been a change in the financial circumstances of the ineligible 
504.12 	person since the support order was entered, the ineligible person has petitioned for a 
504.13 	modification of the support order; and
504.14 	(4) (3) an amount for the unmet needs of the ineligible person and other persons 
504.15 	who live in the household but are not included in the assistance unit and are or could be 
504.16 	claimed by an ineligible person as dependents for determining federal personal income 
504.17 	tax liability who, if eligible, would be assistance unit members under section 256J.24, 
504.18 	subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the 
504.19 	MFIP transitional standard of need when the ineligible person is persons are included in 
504.20 	the assistance unit and the MFIP transitional standard of need when the ineligible person 
504.21 	is persons are not included in the assistance unit.
504.22 		Subd. 1a.Deemed income from disqualified assistance unit members. The 
504.23 	income of disqualified members must be deemed after allowing the following disregards:
504.24 	(1) the first 18 percent of the disqualified member's gross an earned income disregard 
504.25 	as determined under section 256P.03;
504.26 	(2) amounts the disqualified member actually paid to individuals not living in the 
504.27 	same household but whom the disqualified member claims or could claim as dependents 
504.28 	for determining federal personal income tax liability;
504.29 	(3) (2) all payments made by the disqualified member according to a court order for 
504.30 	spousal support or the support of children not living in the assistance unit's household, 
504.31 	provided that, if there has been a change in the financial circumstances of the disqualified 
504.32 	member's legal obligation to pay support since the support order was entered, the 
504.33 	disqualified member has petitioned for a modification of the support order; and
504.34 	(4) (3) an amount for the unmet needs of other ineligible persons who live in the 
504.35 	household but are not included in the assistance unit and are or could be claimed by the 
504.36 	disqualified member as dependents for determining federal personal income tax liability
505.1 	 who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or 
505.2 	4, paragraph (b). This amount is equal to the difference between the MFIP transitional 
505.3 	standard of need when the ineligible person is persons are included in the assistance unit 
505.4 	and the MFIP transitional standard of need when the ineligible person is persons are
505.5 	 not included in the assistance unit. An amount shall not be allowed for the needs of a
505.6 	 disqualified member members.
505.7 		Subd. 1b.Deemed income from parents of minor caregivers. In households 
505.8 	where minor caregivers live with a parent or parents who do not receive MFIP for 
505.9 	themselves or their minor children, the income of the parents must be deemed after 
505.10 	allowing the following disregards:
505.11 	(1) income of the parents equal to 200 percent of the federal poverty guideline for a 
505.12 	family size not including the minor parent and the minor parent's child in the household 
505.13 	according to section 256J.21, subdivision 2, clause (43); and
505.14 	(2) 18 percent of the parents' gross earned income;
505.15 	(3) amounts the parents actually paid to individuals not living in the same household 
505.16 	but whom the parents claim or could claim as dependents for determining federal personal 
505.17 	income tax liability; and
505.18 	(4) (2) all payments made by parents according to a court order for spousal support 
505.19 	or the support of children not living in the parent's household, provided that, if there has 
505.20 	been a change in the financial circumstances of the parent's legal obligation to pay support 
505.21 	since the support order was entered, the parents have petitioned for a modification of 
505.22 	the support order.
505.23 		Subd. 2.Deemed income and assets of sponsor of noncitizens. (a) If a noncitizen 
505.24 	applies for or receives MFIP, the county agency must deem the income and assets of the 
505.25 	noncitizen's sponsor and the sponsor's spouse as provided in this paragraph and paragraph 
505.26 	(b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor's 
505.27 	spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor 
505.28 	and the sponsor's spouse are considered available assets of the noncitizen.
505.29 	(b) The income and assets of a sponsor who signed an affidavit of support under title 
505.30 	IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and 
505.31 	Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor's 
505.32 	spouse, must be deemed to the noncitizen to the extent required by those sections of 
505.33 	Public Law 104-193.
505.34 	(c) The income and assets of a sponsor and the sponsor's spouse to whom the 
505.35 	provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full 
506.1 	extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget 
506.2 	Act of 1997.
506.3 		Subd. 3.Earned income of wage, salary, and contractual employees. The county
506.4 	 agency must include gross earned income less any disregards in the initial and monthly 
506.5 	income test. Gross earned income received by persons employed on a contractual basis 
506.6 	must be prorated over the period covered by the contract even when payments are received 
506.7 	over a lesser period of time.
506.8 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the 
506.9 	county agency shall count $50 of the value of public and assisted rental subsidies provided 
506.10 	through the Department of Housing and Urban Development (HUD) as unearned income 
506.11 	to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 
506.12 	unearned income when the subsidy is less than $50. The income from this subsidy shall 
506.13 	be budgeted according to section 256J.34.
506.14 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 
506.15 	which includes a participant who is:
506.16 	(1) age 60 or older;
506.17 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
506.18 	certified by a qualified professional when the illness, injury, or incapacity is expected 
506.19 	to continue for more than 30 days and severely limits the person's ability to obtain or 
506.20 	maintain suitable employment; or
506.21 	(3) a caregiver whose presence in the home is required due to the illness or 
506.22 	incapacity of another member in the assistance unit, a relative in the household, or a foster 
506.23 	child in the household when the illness or incapacity and the need for the participant's 
506.24 	presence in the home has been certified by a qualified professional and is expected to 
506.25 	continue for more than 30 days.
506.26 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 
506.27 	where the parental caregiver is an SSI recipient participant.
506.28 		Subd. 4.Self-employment. Self-employed individuals are those who are 
506.29 	responsible for their own work schedule and do not have coverage under an employer's 
506.30 	liability insurance or workers' compensation. Self-employed individuals generally work 
506.31 	for themselves rather than an employer. However, individuals employed in some types of 
506.32 	services may be self-employed even if they have an employer or work out of another's 
506.33 	business location. For example, real estate sales people, individuals who work for 
506.34 	commission sales, manufacturer's representatives, and independent contractors may be 
506.35 	self-employed. Self-employed individuals may or may not have FICA deducted from the 
506.36 	check issued to them by an employer or another party.
507.1 	Self-employed individuals may own a business singularly or in partnership. 
507.2 	Individuals operating more than one self-employment business may use the loss from 
507.3 	one business to offset self-employment income from another business. A loss from a 
507.4 	self-employment business may not offset income earned under subdivision 3.
507.5 	Self-employment has the meaning given in section 256P.01, subdivision 7.
507.6 		Subd. 5.Self-employment earnings. The county agency must determine 
507.7 	self-employment income according to the following: section 256P.05, subdivision 2.
507.8 	(a) Subtract allowable business expenses from total gross receipts. Allowable 
507.9 	business expenses include:
507.10 	(1) interest on mortgages and loans;
507.11 	(2) employee wages, except for persons who are part of the assistance unit or whose 
507.12 	income is deemed to the participant;
507.13 	(3) FICA funds paid on employees' wages, payment of employee workers' 
507.14 	compensation, and unemployment benefits;
507.15 	(4) livestock and veterinary or breeding fees;
507.16 	(5) raw material;
507.17 	(6) seed and fertilizer;
507.18 	(7) maintenance and repairs that are not capital expenditures;
507.19 	(8) tax return preparation fees;
507.20 	(9) license fees, professional fees, franchise fees, and professional dues;
507.21 	(10) tools and supplies that are not capital expenditures;
507.22 	(11) fuel and transportation expenses other than fuel costs covered by the flat rate 
507.23 	transportation deduction;
507.24 	(12) advertising costs;
507.25 	(13) meals eaten when required to be away from the local work site;
507.26 	(14) property expenses such as rent, insurance, taxes, and utilities;
507.27 	(15) postage;
507.28 	(16) purchase cost of inventory at time of sale;
507.29 	(17) loss from another self-employment business;
507.30 	(18) attorney fees allowed by the Internal Revenue Service; and
507.31 	(19) tuition for classes necessary to maintain or improve job skills or required by 
507.32 	law to maintain job status or salary as allowed by the Internal Revenue Service.
507.33 	(b) The county agency shall not allow a deduction for the following expenses:
507.34 	(1) purchases of capital assets;
507.35 	(2) payments on the principals of loans for capital assets;
507.36 	(3) depreciation;
508.1 	(4) amortization;
508.2 	(5) the wholesale costs of items purchased, processed, or manufactured which are 
508.3 	unsold inventory;
508.4 	(6) transportation costs that exceed the maximum standard mileage rate allowed for 
508.5 	use of a personal car in the Internal Revenue Code;
508.6 	(7) costs, in any amount, for mileage between an applicant's or participant's home 
508.7 	and place of employment;
508.8 	(8) salaries and other employment deductions made for members of an assistance 
508.9 	unit or persons who live in the household for whom an employer is legally responsible;
508.10 	(9) monthly expenses in excess of $71 for each roomer;
508.11 	(10) monthly expenses in excess of the Thrifty Food Plan amount for one person for 
508.12 	each boarder. For purposes of this clause and clause (11), "Thrifty Food Plan" has the 
508.13 	meaning given it in Code of Federal Regulations;
508.14 	(11) monthly expenses in excess of the roomer rate plus the Thrifty Food Plan 
508.15 	amount for one person for each roomer-boarder. If there is more than one boarder or 
508.16 	roomer-boarder, use the total number of boarders as the unit size to determine the Thrifty 
508.17 	Food Plan amount;
508.18 	(12) an amount greater than actual expenses or two percent of the estimated market 
508.19 	value on a county tax assessment form, whichever is greater, as a deduction for upkeep 
508.20 	and repair against rental income;
508.21 	(13) expenses not allowed by the Internal Revenue Code;
508.22 	(14) expenses in excess of 60 percent of gross receipts for in-home child care unless 
508.23 	a higher amount can be documented; and
508.24 	(15) expenses that are reimbursed under the child and adult care food program as 
508.25 	authorized under the National School Lunch Act, United States Code, title 42.
508.26 		Subd. 6.Self-employment budget period. The self-employment budget period 
508.27 	begins in the month of application or in the first month of self-employment. Gross receipts 
508.28 	must be budgeted in the month received. Expenses must be budgeted against gross 
508.29 	receipts in the month the expenses are paid, except for paragraphs (a) to (c).
508.30 	(a) The purchase cost of inventory items, including materials which are processed 
508.31 	or manufactured, must be deducted as an expense at the time payment is received for 
508.32 	the sale of the inventory items.
508.33 	(b) A 12-month rolling average based on clauses (1) to (3) must be used to budget 
508.34 	monthly income.
508.35 	(1) For a business in operation for at least 12 months, the county agency shall use 
508.36 	the average monthly self-employment income from the most current income tax report for 
509.1 	the 12 months before the month of application. The county agency shall determine a new 
509.2 	monthly average by adding in the actual self-employment income and expenses from the 
509.3 	previous month and dropping the first month from the averaging period.
509.4 	(2) For a business in operation for less than 12 months, the county agency shall 
509.5 	compute the average for the number of months the business has been in operation to 
509.6 	determine a monthly average. When data are available for 12 or more months, average 
509.7 	monthly self-employment income is determined under clause (1).
509.8 	(3) If the business undergoes a major change, the county agency shall compute a new 
509.9 	rolling average beginning with the first month of the major change. For the purpose of this 
509.10 	clause, major change means a change that affects the nature and scale of the business and 
509.11 	is not merely the result of normal business fluctuations.
509.12 	(c) For seasonal self-employment, the caregiver may choose whether to use actual 
509.13 	income in the month of receipt and expenses in the month incurred or the rolling average 
509.14 	method of computation. The choice must be made once per year at the time of application 
509.15 	or recertification. For the purpose of this paragraph, seasonal means working six or less 
509.16 	months per year.
509.17 	The agency must budget self-employment earned income according to section 
509.18 	256P.05, subdivision 3.
509.19 		Subd. 7.Farm income. Farm income is the difference between gross receipts 
509.20 	and operating expenses. The county agency must not allow a deduction for expenses 
509.21 	listed in subdivision 5, paragraph (b). Gross receipts include sales, rents, subsidies, 
509.22 	soil conservation payments, production derived from livestock, and income from 
509.23 	home-produced food Farm income shall be treated as self-employment income under 
509.24 	section 256P.05, subdivision 2. The agency must budget farm income as self-employment 
509.25 	earned income according to section 256P.05, subdivision 3.
509.26 		Subd. 8.Rental income. The county agency must treat income from rental property 
509.27 	as earned or unearned income. Income from rental property is unearned income unless the 
509.28 	assistance unit spends an average of ten hours per week on maintenance or management 
509.29 	of the property. When the owner spends more than ten hours per week on maintenance 
509.30 	or repairs, the earnings are considered self-employment earnings. An amount must be 
509.31 	deducted for upkeep and repairs, as specified in subdivision 5, paragraph (b), clause 
509.32 	(12), real estate taxes, insurance, utilities, and interest on principal payments. When the 
509.33 	applicant or participant lives on the rental property, expenses for upkeep, taxes, insurance, 
509.34 	utilities, and interest must be divided by the number of rooms to determine expense per 
509.35 	room and expenses deducted must be deducted only for the number of rooms rented
509.36 	 Rental income is subject to the requirements of section 256P.05.
510.1 		Subd. 9.Unearned income. (a) The county agency must apply unearned income 
510.2 	to the MFIP transitional standard of need. When determining the amount of unearned 
510.3 	income, the county agency must deduct the costs necessary to secure payments of 
510.4 	unearned income. These costs include legal fees, medical fees, and mandatory deductions 
510.5 	such as federal and state income taxes.
510.6 	(b) The county agency must convert unearned income received on a periodic basis to 
510.7 	monthly amounts by prorating the income over the number of months represented by the 
510.8 	frequency of the payments. The county agency must begin counting the monthly amount 
510.9 	in the month the periodic payment is received and budget it according to the assistance 
510.10 	unit's budget cycle.
510.11 		Subd. 10.Treatment of lump sums. (a) The county agency must treat lump-sum 
510.12 	payments as earned or unearned income. If the lump-sum payment is included in the 
510.13 	category of income identified in subdivision 9, it must be treated as unearned income. A 
510.14 	lump sum is counted as income in the month received and budgeted either prospectively or 
510.15 	retrospectively depending on the budget cycle at the time of receipt. When an individual 
510.16 	receives a lump-sum payment, that lump sum must be combined with all other earned and 
510.17 	unearned income received in the same budget month, and it must be applied according to 
510.18 	paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any 
510.19 	funds that remain in the third month after the month of receipt are counted in the asset limit.
510.20 	(b) For a lump sum received by an applicant during the first two months, prospective 
510.21 	budgeting is used to determine the payment and the lump sum must be combined with 
510.22 	other earned or unearned income received and budgeted in that prospective month.
510.23 	(c) For a lump sum received by a participant after the first two months of MFIP 
510.24 	eligibility, the lump sum must be combined with other income received in that budget 
510.25 	month, and the combined amount must be applied retrospectively against the applicable 
510.26 	payment month.
510.27 	(d) When a lump sum, combined with other income under paragraphs (b) and (c), is 
510.28 	less than the MFIP transitional standard of need for the appropriate payment month, the 
510.29 	assistance payment must be reduced according to the amount of the countable income. 
510.30 	When the countable income is greater than the MFIP standard or family wage level, the 
510.31 	assistance payment must be suspended for the payment month.

510.32 	EFFECTIVE DATE. The amendments to subdivisions 1, 1a, 1b, and 2 are effective 
510.33 	October 1, 2015. The amendments to subdivisions 4, 5, 6, 7, and 8 are effective February 
510.34 	1, 2015. The amendments to subdivisions 9 and 10 are effective January 1, 2015.

510.35 	Sec. 26. Minnesota Statutes 2012, section 256J.425, subdivision 1, is amended to read:
511.1 		Subdivision 1.Eligibility. (a) To be eligible for a hardship extension, a participant 
511.2 	in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must 
511.3 	be in compliance in the participant's 60th counted month. For purposes of determining 
511.4 	eligibility for a hardship extension, a participant is in compliance in any month that the 
511.5 	participant has not been sanctioned. In order to maintain eligibility for any of the hardship 
511.6 	extension categories a participant shall develop and comply with either an employment 
511.7 	plan or a family stabilization services plan, whichever is appropriate.
511.8 	(b) If one participant in a two-parent assistance unit is determined to be ineligible for 
511.9 	a hardship extension, the county shall give the assistance unit the option of disqualifying 
511.10 	the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 
511.11 	one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using 
511.12 	the shared household standard under section 256J.08, subdivision 82a.
511.13 	(c) Prior to denying an extension, the county must review the sanction status and 
511.14 	determine whether the sanction is appropriate or if good cause exists under section 256J.57. 
511.15 	If the sanction was inappropriately applied or the participant is granted a good cause 
511.16 	exception before the end of month 60, the participant shall be considered for an extension.

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

511.18 	Sec. 27. Minnesota Statutes 2012, section 256J.425, subdivision 7, is amended to read:
511.19 		Subd. 7.Status of disqualified participants. (a) An assistance unit that is 
511.20 	disqualified under subdivision 6, paragraph (a), may be approved for MFIP if the 
511.21 	participant complies with MFIP program requirements and demonstrates compliance for 
511.22 	up to one month. No assistance shall be paid during this period.
511.23 	(b) An assistance unit that is disqualified under subdivision 6, paragraph (a), and that 
511.24 	reapplies under paragraph (a) is subject to sanction under section 256J.46, subdivision 
511.25 	1, paragraph (c), clause (1), for a first occurrence of noncompliance. A subsequent 
511.26 	occurrence of noncompliance results in a permanent disqualification.
511.27 	(c) If one participant in a two-parent assistance unit receiving assistance under a 
511.28 	hardship extension under subdivision 3 or 4 is determined to be out of compliance with 
511.29 	the employment and training services requirements under sections 256J.521 to 256J.57, 
511.30 	the county shall give the assistance unit the option of disqualifying the noncompliant 
511.31 	participant from MFIP. In that case, the assistance unit shall be treated as a one-parent 
511.32 	assistance unit for the purposes of meeting the work requirements under subdivision 
511.33 	4 and the assistance unit's MFIP grant shall be calculated using the shared household 
511.34 	standard under section 256J.08, subdivision 82a. An applicant who is disqualified 
511.35 	from receiving assistance under this paragraph may reapply under paragraph (a). If a 
512.1 	participant is disqualified from MFIP under this subdivision a second time, the participant 
512.2 	is permanently disqualified from MFIP.
512.3 	(d) Prior to a disqualification under this subdivision, a county agency must review 
512.4 	the participant's case to determine if the employment plan is still appropriate and attempt 
512.5 	to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the 
512.6 	county agency must send the participant a notice of adverse action as provided in section 
512.7 	256J.31. During the face-to-face meeting, the county agency must:
512.8 	(1) determine whether the continued noncompliance can be explained and mitigated 
512.9 	by providing a needed preemployment activity, as defined in section 256J.49, subdivision 
512.10 	13, clause (9);
512.11 	(2) determine whether the participant qualifies for a good cause exception under 
512.12 	section 256J.57;
512.13 	(3) inform the participant of the family violence waiver criteria and make appropriate 
512.14 	referrals if the waiver is requested;
512.15 	(4) inform the participant of the participant's sanction status and explain the 
512.16 	consequences of continuing noncompliance;
512.17 	(5) identify other resources that may be available to the participant to meet the 
512.18 	needs of the family; and
512.19 	(6) inform the participant of the right to appeal under section 256J.40.

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

512.21 	Sec. 28. Minnesota Statutes 2012, section 256J.95, subdivision 8, is amended to read:
512.22 		Subd. 8.Verification requirements. (a) A county agency must only require 
512.23 	verification of information necessary to determine DWP eligibility and the amount of 
512.24 	the payment. The applicant or participant must document the information required or 
512.25 	authorize the county agency to verify the information. The applicant or participant has the 
512.26 	burden of providing documentary evidence to verify eligibility. The county agency shall 
512.27 	assist the applicant or participant in obtaining required documents when the applicant 
512.28 	or participant is unable to do so.
512.29 	(b) A county agency must not request information about an applicant or participant 
512.30 	that is not a matter of public record from a source other than county agencies, the 
512.31 	Department of Human Services, or the United States Department of Health and Human 
512.32 	Services without the person's prior written consent. An applicant's signature on an 
512.33 	application form constitutes consent for contact with the sources specified on the 
512.34 	application. A county agency may use a single consent form to contact a group of similar 
513.1 	sources, but the sources to be contacted must be identified by the county agency prior to 
513.2 	requesting an applicant's consent.
513.3 	(c) Factors to be verified shall follow section 256J.32, subdivision 256P.04, 
513.4 	subdivisions 4 and 5. Except for personal needs, family maintenance needs must be 
513.5 	verified before the expense can be allowed in the calculation of the DWP grant.

513.6 	EFFECTIVE DATE. This section is effective February 1, 2015.

513.7 	Sec. 29. Minnesota Statutes 2012, section 256J.95, subdivision 9, is amended to read:
513.8 		Subd. 9.Property and income limitations. The asset limits and exclusions in 
513.9 	section 256J.20 256P.02 apply to applicants and recipients participants of DWP. All 
513.10 	payments, unless excluded in section 256J.21, must be counted as income to determine 
513.11 	eligibility for the diversionary work program. The county agency shall treat income as 
513.12 	outlined in section 256J.37, except for subdivision 3a. The initial income test and the 
513.13 	disregards in section 256J.21, subdivision 3, shall be followed for determining eligibility 
513.14 	for the diversionary work program.

513.15 	EFFECTIVE DATE. This section is effective June 1, 2016.

513.16 	Sec. 30. Minnesota Statutes 2012, section 256J.95, subdivision 10, is amended to read:
513.17 		Subd. 10.Diversionary work program grant. (a) The amount of cash benefits that 
513.18 	a family unit is eligible for under the diversionary work program is based on the number 
513.19 	of persons in the family unit, the family maintenance needs, personal needs allowance, 
513.20 	and countable income. The county agency shall evaluate the income of the family unit 
513.21 	that is requesting payments under the diversionary work program. Countable income 
513.22 	means gross earned and unearned income not excluded or disregarded under MFIP. 
513.23 	The same disregards for earned income that are allowed under MFIP are allowed for 
513.24 	the diversionary work program.
513.25 	(b) The DWP grant is based on the family maintenance needs for which the DWP 
513.26 	family unit is responsible plus a personal needs allowance. Housing and utilities, except 
513.27 	for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual 
513.28 	housing and utility expenses shall be used when determining the amount of the DWP grant.
513.29 	(c) The maximum monthly benefit amount available under the diversionary work 
513.30 	program is the difference between the family unit's needs under paragraph (b) and the 
513.31 	family unit's countable income not to exceed the cash portion of the MFIP transitional 
513.32 	standard of need as defined in section sections256J.08, subdivision 55a 85, and 256J.24, 
513.33 	subdivision 5, for the family unit's size.
514.1 	(d) Once the county has determined a grant amount, the DWP grant amount will 
514.2 	not be decreased if the determination is based on the best information available at the 
514.3 	time of approval and shall not be decreased because of any additional income to the 
514.4 	family unit. The grant must be increased if a participant later verifies an increase in family 
514.5 	maintenance needs or family unit size. The minimum cash benefit amount, if income and 
514.6 	asset tests are met, is $10. Benefits of $10 shall not be vendor paid.
514.7 	(e) When all criteria are met, including the development of an employment plan as 
514.8 	described in subdivision 14 and eligibility exists for the month of application, the amount 
514.9 	of benefits for the diversionary work program retroactive to the date of application is as 
514.10 	specified in section 256J.35, paragraph (a).
514.11 	(f) Any month during the four-month DWP period that a person receives a DWP 
514.12 	benefit directly or through a vendor payment made on the person's behalf, that person is 
514.13 	ineligible for MFIP or any other TANF cash assistance program except for benefits defined 
514.14 	in section 256J.626, subdivision 2, clause (1).
514.15 	If during the four-month period a family unit that receives DWP benefits moves to 
514.16 	a county that has not established a diversionary work program, the family unit may be 
514.17 	eligible for MFIP the month following the last month of the issuance of the DWP benefit.

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

514.19 	Sec. 31. [256P.001] APPLICABILITY.
514.20 	General assistance and Minnesota supplemental aid under chapter 256D and 
514.21 	programs governed by chapter 256I or 256J are subject to the requirements of this chapter, 
514.22 	unless otherwise specified or exempted.

514.23 	Sec. 32. [256P.01] DEFINITIONS.
514.24 		Subdivision 1.Scope. For purposes of this chapter, the terms defined in this section 
514.25 	have the meanings given them.
514.26 		Subd. 2.Agency. "Agency" means any county, federally recognized Indian tribe, or 
514.27 	multicounty social services collaboratives.
514.28 		Subd. 3.Earned income. "Earned income" means cash or in-kind income earned 
514.29 	through the receipt of wages, salary, commissions, profit from employment activities, net 
514.30 	profit from self-employment activities, payments made by an employer for regularly 
514.31 	accrued vacation or sick leave, and any other profit from activity earned through effort or 
514.32 	labor. The income must be in return for, or as a result of, legal activity.
515.1 		Subd. 4.Earned income disregard. "Earned income disregard" means earned 
515.2 	income that is not counted according to section 256P.03 when determining eligibility and 
515.3 	calculating the amount of the assistance payment.
515.4 		Subd. 5.Equity value. "Equity value" means the amount of equity in personal 
515.5 	property owned by a person and is determined by subtracting any outstanding 
515.6 	encumbrances from the fair market value of the personal property.
515.7 		Subd. 6.Personal property. "Personal property" means an item of value that 
515.8 	is not real property.
515.9 		Subd. 7.Self-employment. "Self-employment" means employment by an 
515.10 	individual who:
515.11 	(1) incurs costs in producing income and deducts these costs in order to equate the 
515.12 	individual's income with income from sources where there are no production costs; and
515.13 	(2) controls the individual's work by working either independently of an employer or 
515.14 	freelance, or by running the business; or
515.15 	(3) pays self-employment taxes.

515.16 	Sec. 33. [256P.02] PERSONAL PROPERTY LIMITATIONS.
515.17 		Subdivision 1.Property ownership. (a) The agency must apply paragraphs (b) to 
515.18 	(e) to determine the value of personal property. The agency must use the equity value 
515.19 	of legally available personal property to determine whether an applicant or participant 
515.20 	is eligible for assistance.
515.21 	(b) When personal property is jointly owned by two or more persons, the agency 
515.22 	shall assume that each person owns an equal share, except that either person owns 
515.23 	the entire sum of a joint personal checking or savings account. When an applicant or 
515.24 	participant documents greater or lesser ownership, the agency must use that greater or 
515.25 	lesser share to determine the equity value held by the applicant or participant. Other types 
515.26 	of ownership must be evaluated according to law.
515.27 	(c) Personal property owned by the applicant or participant must be presumed legally 
515.28 	available to the applicant or participant unless the applicant or participant documents 
515.29 	that the property is not legally available to the applicant or participant. When personal 
515.30 	property is not legally available, its equity value must not be applied against the limits of 
515.31 	subdivision 2.
515.32 	(d) An applicant must disclose whether the applicant has transferred personal 
515.33 	property valued in excess of the property limits in subdivision 2 for which reasonable 
515.34 	compensation was not received within one year prior to application. A participant must 
515.35 	disclose all transfers of property valued in excess of these limits, according to the reporting 
516.1 	requirements in section 256J.30, subdivision 9. When a transfer of personal property 
516.2 	without reasonable compensation has occurred:
516.3 	(1) the person who transferred the property must provide the property's description, 
516.4 	information needed to determine the property's equity value, the names of the persons who 
516.5 	received the property, and the circumstances of and reasons for the transfer; and
516.6 	(2) when the transferred property can be reasonably reacquired, or when reasonable 
516.7 	compensation can be secured, the property is presumed legally available to the applicant 
516.8 	or participant.
516.9 	(e) A participant may build the equity value of personal property to the limits in 
516.10 	subdivision 2.
516.11 		Subd. 2.Personal property limitations. (a) The equity value of an assistance unit's 
516.12 	personal property listed in clauses (1) to (4) must not exceed $10,000 for applicants and 
516.13 	participants. For purposes of this subdivision, personal property is limited to:
516.14 	(1) cash;
516.15 	(2) bank accounts;
516.16 	(3) liquid stocks and bonds that can be readily accessed without a financial penalty; 
516.17 	and
516.18 	(4) vehicles not excluded under subdivision 3.
516.19 		Subd. 3.Vehicle exception. One vehicle per assistance unit member age 16 or older 
516.20 	shall be excluded when determining the equity value of personal property. If the assistance 
516.21 	unit owns more than one vehicle per assistance unit member age 16 or older, the agency 
516.22 	shall determine the trade-in values of all additional vehicles and apply the values to the 
516.23 	personal property limitations in subdivision 2. To establish the trade-in values of vehicles, 
516.24 	an agency must use the National Automobile Dealers Association online car values and 
516.25 	car prices guide. When a vehicle is not listed in the online guide, or when the applicant or 
516.26 	participant disputes the trade-in value listed in the online guide as unreasonable given the 
516.27 	condition of the particular vehicle, the agency may require the applicant or participant to 
516.28 	document the trade-in value by securing a written statement from a motor vehicle dealer 
516.29 	licensed under section 168.27, stating the amount that the dealer would pay to purchase 
516.30 	the vehicle. The agency shall reimburse the applicant or participant for the cost of a 
516.31 	written statement that documents a lower loan value.

516.32 	EFFECTIVE DATE. This section is effective June 1, 2016.

516.33 	Sec. 34. [256P.03] EARNED INCOME DISREGARD.
517.1 		Subdivision 1.Exempted programs. Participants who qualify for Minnesota 
517.2 	supplemental aid under chapter 256D and for group residential housing under chapter 256I 
517.3 	on the basis of eligibility for Supplemental Security Income are exempt from this section.
517.4 		Subd. 2.Earned income disregard. The agency shall disregard the first $65 of 
517.5 	earned income plus one-half of the remaining earned income per month.

517.6 	EFFECTIVE DATE. This section is effective October 1, 2015.

517.7 	Sec. 35. [256P.04] DOCUMENTING, VERIFYING, AND RECERTIFYING 
517.8 	ELIGIBILITY.
517.9 		Subdivision 1.Exemption. Participants who receive Minnesota supplemental aid 
517.10 	and who maintain Supplemental Security Income eligibility under chapters 256D and 
517.11 	256I are exempt from the reporting requirements of this section, except that the policies 
517.12 	and procedures for transfers of assets are those used by the medical assistance program 
517.13 	under section 256B.0595.
517.14 		Subd. 2.Verification of information. An agency must only require verification of 
517.15 	information necessary to determine eligibility and the amount of the assistance payment. 
517.16 	If necessary, the agency shall assist the applicant or participant in obtaining verifications 
517.17 	and required documents when the applicant or participant is unable to do so.
517.18 		Subd. 3.Documentation. The applicant or participant must document the 
517.19 	information required under subdivisions 4 to 7 or authorize the agency to verify the 
517.20 	information. The applicant or participant has the burden of providing documentary 
517.21 	evidence to verify eligibility. The agency must accept a signed personal statement from 
517.22 	the applicant or participant when determining personal property values under section 
517.23 	256P.02. The signed personal statement must include general penalty warnings and a 
517.24 	disclaimer that any false or misrepresented information is subject to prosecution for fraud 
517.25 	under sections 609.52 and 609.821 and perjury under section 609.48.
517.26 		Subd. 4.Factors to be verified. (a) The agency shall verify the following at 
517.27 	application:
517.28 	(1) identity of adults;
517.29 	(2) age, if necessary to determine eligibility;
517.30 	(3) immigration status;
517.31 	(4) income;
517.32 	(5) spousal support and child support payments made to persons outside the 
517.33 	household;
517.34 	(6) vehicles;
517.35 	(7) checking and savings accounts;
518.1 	(8) inconsistent information, if related to eligibility;
518.2 	(9) residence; and
518.3 	(10) Social Security number.
518.4 	(b) Applicants who are qualified noncitizens and victims of domestic violence as 
518.5 	defined under section 256J.08, subdivision 73, clause (7), are not required to verify the 
518.6 	information in paragraph (a), clause (10). When a Social Security number is not provided 
518.7 	to the agency for verification, this requirement is satisfied when each member of the 
518.8 	assistance unit cooperates with the procedures for verification of Social Security numbers, 
518.9 	issuance of duplicate cards, and issuance of new numbers which have been established 
518.10 	jointly between the Social Security Administration and the commissioner.
518.11 		Subd. 5.MFIP-only verifications. In addition to subdivision 4, the agency shall 
518.12 	verify the following for programs under chapter 256J:
518.13 	(1) the presence of the minor child in the home, if questionable;
518.14 	(2) the relationship of a minor child to caregivers in the assistance unit;
518.15 	(3) pregnancy, if related to eligibility;
518.16 	(4) school attendance, if related to eligibility;
518.17 	(5) a claim of family violence, if used as a basis to qualify for the family violence 
518.18 	waiver under chapter 256J; and
518.19 	(6) disability, if used as the basis for reducing the hourly participation requirements 
518.20 	under section 256J.55, subdivision 1, or for the type of activity included in an employment 
518.21 	plan under section 256J.521, subdivision 2.
518.22 		Subd. 6.Personal property inconsistent information. If there is inconsistent 
518.23 	information known to the agency when reporting personal property under section 256P.02, 
518.24 	an agency must require the applicant or participant to document the information required 
518.25 	under section 256P.02 or authorize the county agency to verify the information. The 
518.26 	applicant or participant has the burden of providing documentary evidence to verify 
518.27 	eligibility. The agency shall assist the applicant or participant in obtaining required 
518.28 	documents when the applicant or participant is unable to do so.
518.29 		Subd. 7.Documenting and verifying inconsistent information. When the 
518.30 	agency verifies inconsistent information under subdivision 4, paragraph (a), clause (8); 
518.31 	subdivision 6; or subdivision 8, clause (3), the reason for verifying the information must 
518.32 	be documented in the financial case record.
518.33 		Subd. 8.Recertification. The agency shall recertify eligibility in an annual 
518.34 	interview with the participant. The interview may be conducted by telephone, by Internet 
518.35 	telepresence, or face-to-face in the county office or in another location mutually agreed 
518.36 	upon. A participant must be given the option of a telephone interview or Internet 
519.1 	telepresence to recertify eligibility. During the interview, the agency shall verify the 
519.2 	following:
519.3 	(1) income, unless excluded, including self-employment earnings;
519.4 	(2) assets when the value is within $200 of the asset limit; and
519.5 	(3) inconsistent information, if related to eligibility.
519.6 		Subd. 9.MFIP-only recertification. In addition to subdivision 8, the agency shall 
519.7 	verify the following for programs under chapter 256J:
519.8 	(1) the presence of the minor child in the home, if questionable; and
519.9 	(2) whether a single-caregiver household meets the requirements in section 
519.10 	256J.575, subdivision 3.
519.11 		Subd. 10.Participant's completion of form for recertification of eligibility. A 
519.12 	participant must complete forms prescribed by the commissioner which are required 
519.13 	for recertification of eligibility according to subdivisions 8 and 9. An agency must end 
519.14 	benefits when the participant fails to submit the recertification form and verifications 
519.15 	before the end of the certification period. If the participant submits the recertification 
519.16 	form within 30 days of the termination of benefits, benefits must be reinstated and made 
519.17 	available retroactively for the full benefit month.
519.18 		Subd. 11.Participant's completion of household report form. (a) When a 
519.19 	participant is required to complete a household report form, the following paragraphs apply.
519.20 	(b) If the agency receives an incomplete household report form, the agency must 
519.21 	immediately return the incomplete form and clearly state what the participant must do for 
519.22 	the form to be complete.
519.23 	(c) The automated eligibility system must send a notice of proposed termination of 
519.24 	assistance to the participant if a complete household report form is not received by the 
519.25 	agency. The automated notice must be mailed to the participant by approximately the 16th 
519.26 	of the month. When a participant submits an incomplete form on or after the date a notice 
519.27 	of proposed termination has been sent, the termination is valid unless the participant 
519.28 	submits a complete form before the end of the month.
519.29 	(d) The submission of a household report form is considered to have continued the 
519.30 	participant's application for assistance if a complete household report form is received 
519.31 	within a calendar month after the month in which the form was due. Assistance shall be 
519.32 	paid for the period beginning with the first day of that calendar month.
519.33 	(e) An agency must allow good cause exemptions for a participant required to 
519.34 	complete a household report form when any of the following factors cause a participant to 
519.35 	fail to submit a completed household report form before the end of the month in which 
519.36 	the form is due:
520.1 	(1) an employer delays completion of employment verification;
520.2 	(2) the agency does not help a participant complete the household report form when 
520.3 	the participant asks for help;
520.4 	(3) a participant does not receive a household report form due to a mistake on the 
520.5 	part of the department or the agency or a reported change in address;
520.6 	(4) a participant is ill or physically or mentally incapacitated; or
520.7 	(5) some other circumstance occurs that a participant could not avoid with reasonable 
520.8 	care which prevents the participant from providing a completed household report form 
520.9 	before the end of the month in which the form is due.
520.10 		Subd. 12.Contacting third parties. An agency must not request information 
520.11 	about an applicant or participant that is not of public record from a source other than 
520.12 	agencies, the department, or the United States Department of Health and Human Services 
520.13 	without the applicant's or participant's prior written consent. An applicant's signature 
520.14 	on an application form constitutes consent for contact with the sources specified on the 
520.15 	application. An agency may use a single consent form to contact a group of similar 
520.16 	sources, such as banks or insurance agencies, but the sources to be contacted must be 
520.17 	identified by the agency prior to requesting an applicant's consent.
520.18 		Subd. 13.Notice to undocumented persons; release of private data. Agencies, 
520.19 	in consultation with the commissioner of human services, shall provide notification 
520.20 	to undocumented persons regarding the release of personal data to the United States 
520.21 	Citizenship and Immigration Services and develop protocols regarding the release or 
520.22 	sharing of data about undocumented persons with the United States Citizenship and 
520.23 	Immigration Services as required under sections 404, 411A, and 434 of the Personal 
520.24 	Responsibility and Work Opportunity Reconciliation Act of 1996.
520.25 		Subd. 14.Requirement to report to United States Citizenship and Immigration 
520.26 	Services. The commissioner shall comply with the reporting requirements under United 
520.27 	States Code, title 42, section 611a, and any federal regulation or guidance adopted under 
520.28 	that law.
520.29 		Subd. 15.Personal statement. The agency may accept a signed personal statement 
520.30 	from the applicant or participant explaining the reasons that the documentation requested 
520.31 	in subdivision 3 is unavailable as sufficient documentation at the time of application, 
520.32 	recertification, or change related to eligibility only for the following factors:
520.33 	(1) a claim of family violence, if used as a basis to qualify for the family violence 
520.34 	waiver;
520.35 	(2) relationship of a minor child to caregivers in the assistance unit;
521.1 	(3) citizenship status from a noncitizen who reports to be, or is identified as, a victim 
521.2 	of severe forms of trafficking in persons, if the noncitizen reports that the noncitizen's 
521.3 	immigration documents are being held by an individual or group of individuals against the 
521.4 	noncitizen's will. The noncitizen must follow up with the Office of Refugee Resettlement 
521.5 	(ORR) to pursue certification. If verification that certification is being pursued is 
521.6 	not received within 30 days, the case must be closed and the agency shall pursue 
521.7 	overpayments. The ORR documents certifying the noncitizen's status as a victim of severe 
521.8 	forms of trafficking in persons, or the reason for the delay in processing, must be received 
521.9 	within 90 days, or the case must be closed and the agency shall pursue overpayments; and
521.10 	(4) other documentation unavailable for reasons beyond the control of the applicant 
521.11 	or participant. The applicant or participant must have made reasonable attempts to obtain 
521.12 	the documents requested under subdivision 3.
521.13 		Subd. 16.Excluded resources. Payments of funds made according to litigation and 
521.14 	subsequent appropriation by the United States Congress to compensate members of Indian 
521.15 	tribes for the taking of tribal lands by the federal government are excluded.

521.16 	EFFECTIVE DATE. This section is effective February 1, 2015.

521.17 	Sec. 36. [256P.05] SELF-EMPLOYMENT EARNINGS.
521.18 		Subdivision 1.Exempted programs. Participants who qualify for Minnesota 
521.19 	supplemental aid under chapter 256D and for group residential housing under chapter 256I 
521.20 	on the basis of eligibility for Supplemental Security Income are exempt from this section.
521.21 		Subd. 2.Self-employment income determinations. An agency must determine 
521.22 	self-employment income, which is either:
521.23 	(1) one-half of gross earnings from self-employment; or
521.24 	(2) taxable income as determined from an Internal Revenue Service tax form that 
521.25 	has been filed with the Internal Revenue Service within the last year. A 12-month average 
521.26 	using net taxable income shall be used to budget monthly income.
521.27 		Subd. 3.Self-employment budgeting. (a) The self-employment budget period 
521.28 	begins in the month of application or in the first month of self-employment. Applicants 
521.29 	and participants must choose one of the methods described in subdivision 2 for 
521.30 	determining self-employment earned income.
521.31 	(b) Applicants and participants who elect to use taxable income as described in 
521.32 	subdivision 2, clause (2), to determine self-employment income must continue to use this 
521.33 	method until recertification, unless there is an unforeseen significant change in gross 
521.34 	income equaling a decline in gross income of the amount equal to or greater than the 
522.1 	earned income disregard as defined in section 256P.03 from the income used to determine 
522.2 	the benefit for the current month.
522.3 	(c) For applicants and participants who elect to use one-half of gross earnings as 
522.4 	described in subdivision 2, clause (1), to determine self-employment income, earnings 
522.5 	must be counted as income in the month received.

522.6 	EFFECTIVE DATE. This section is effective February 1, 2015.

522.7 	Sec. 37.  REPEALER.
 522.8 	(a) Minnesota Statutes 2012, sections 256J.08, subdivisions 55a and 82a; and 
522.9 	256J.24, subdivision 9, are repealed effective January 1, 2015.
522.10 	(b) Minnesota Statutes 2012, sections 256D.405, subdivisions 1a and 2; 256J.08, 
522.11 	subdivision 42; and 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, and 8, are repealed effective 
522.12 	February 1, 2015.
522.13 	(c) Minnesota Statutes 2012, section 256D.06, subdivision 1b, is repealed effective 
522.14 	October 1, 2015.
522.15 	(d) Minnesota Statutes 2013 Supplement, section 256J.08, subdivision 24, is 
522.16 	repealed effective October 1, 2015.
522.17 	(e) Minnesota Statutes 2012, sections 256D.08, subdivision 2; and 256J.20, are 
522.18 	repealed effective June 1, 2016.

522.19 	ARTICLE 29
522.20 	CHEMICAL AND MENTAL HEALTH

522.21 	Section 1. Minnesota Statutes 2012, section 245.466, is amended by adding a 
522.22 	subdivision to read:
522.23 		Subd. 3a.Transition plan related to termination of contract. Counties must 
522.24 	prepare a transition plan that provides for continuity of care in the event of contract 
522.25 	termination with a community mental health center under section 245.715, or a community 
522.26 	support services program under section 245.462, subdivision 6. The county shall provide 
522.27 	at least 90 days' notice of the termination to the contracted agency and the commissioner 
522.28 	of human services. The transition plan must provide information to clients on how to 
522.29 	access medical records and how to transfer to other providers.

522.30 	Sec. 2. Minnesota Statutes 2012, section 245A.04, is amended by adding a subdivision 
522.31 	to read:
523.1 		Subd. 15a.Plan for transfer of clients and records upon closure. (a) Except for 
523.2 	child care providers, an applicant for initial or continuing licensure must submit a written 
523.3 	plan indicating how the agency will provide for the transfer of clients and records for both 
523.4 	open and closed cases if the agency closes. The plan must provide for managing private 
523.5 	and confidential information concerning agency clients. The plan must also provide 
523.6 	for notifying affected clients of the closure at least 25 days prior to closure, including 
523.7 	information on how to access their medical records. A controlling individual of the agency 
523.8 	must annually review and sign the plan.
523.9 	(b) Plans for the transfer of open cases and case records must specify arrangements 
523.10 	the agency will make to transfer clients to another agency or county agency for 
523.11 	continuation of services and to transfer the case record with the client.
523.12 	(c) Plans for the transfer of closed case records must be accompanied by a signed 
523.13 	agreement or other documentation indicating that a county or a similarly licensed agency 
523.14 	has agreed to accept and maintain the agency's closed case records and to provide 
523.15 	follow-up services as necessary to affected clients.

523.16 	Sec. 3. Minnesota Statutes 2012, section 253B.066, subdivision 1, is amended to read:
523.17 		Subdivision 1.Treatment alternatives. If the court orders early intervention 
523.18 	under section 253B.065, subdivision 5, the court may include in its order a variety of 
523.19 	treatment alternatives including, but not limited to, day treatment, medication compliance 
523.20 	monitoring, assertive community treatment, crisis assessment and stabilization, partial 
523.21 	hospitalization, and short-term hospitalization not to exceed 21 days.
523.22 	If the court orders short-term hospitalization and the proposed patient will not go 
523.23 	voluntarily, the court may direct a health officer, peace officer, or other person to take the 
523.24 	person into custody and transport the person to the hospital.

523.25 	Sec. 4. Minnesota Statutes 2012, section 254B.12, is amended to read:
523.26 	254B.12 RATE METHODOLOGY.
523.27 		Subdivision 1.CCDTF rate methodology established. The commissioner shall 
523.28 	establish a new rate methodology for the consolidated chemical dependency treatment 
523.29 	fund. The new methodology must replace county-negotiated rates with a uniform 
523.30 	statewide methodology that must include a graduated reimbursement scale based on the 
523.31 	patients' level of acuity and complexity. At least biennially, the commissioner shall review 
523.32 	the financial information provided by vendors to determine the need for rate adjustments.
523.33 		Subd. 2.Payment methodology for highly specialized vendors. (a) 
523.34 	Notwithstanding subdivision 1, the commissioner shall seek federal authority to develop 
524.1 	separate payment methodologies for chemical dependency treatment services provided 
524.2 	under the consolidated chemical dependency treatment fund: (1) by a state-operated 
524.3 	vendor; or (2) for persons who have been civilly committed to the commissioner, present 
524.4 	the most complex and difficult care needs, and are a potential threat to the community. A 
524.5 	payment methodology under this subdivision is effective for services provided on or after 
524.6 	October 1, 2015, or on or after the receipt of federal approval, whichever is later.
524.7 	(b) Before implementing an approved payment methodology under paragraph 
524.8 	(a), the commissioner must also receive any necessary legislative approval of required 
524.9 	changes to state law or funding.

524.10 	Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.06, subdivision 4, is 
524.11 	amended to read:
524.12 		Subd. 4.Citizenship requirements. (a) Eligibility for medical assistance is limited 
524.13 	to citizens of the United States, qualified noncitizens as defined in this subdivision, and 
524.14 	other persons residing lawfully in the United States. Citizens or nationals of the United 
524.15 	States must cooperate in obtaining satisfactory documentary evidence of citizenship or 
524.16 	nationality according to the requirements of the federal Deficit Reduction Act of 2005, 
524.17 	Public Law 109-171.
524.18 	(b) "Qualified noncitizen" means a person who meets one of the following 
524.19 	immigration criteria:
524.20 	(1) admitted for lawful permanent residence according to United States Code, title 8;
524.21 	(2) admitted to the United States as a refugee according to United States Code, 
524.22 	title 8, section 1157;
524.23 	(3) granted asylum according to United States Code, title 8, section 1158;
524.24 	(4) granted withholding of deportation according to United States Code, title 8, 
524.25 	section 1253(h);
524.26 	(5) paroled for a period of at least one year according to United States Code, title 8, 
524.27 	section 1182(d)(5);
524.28 	(6) granted conditional entrant status according to United States Code, title 8, 
524.29 	section 1153(a)(7);
524.30 	(7) determined to be a battered noncitizen by the United States Attorney General 
524.31 	according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 
524.32 	title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
524.33 	(8) is a child of a noncitizen determined to be a battered noncitizen by the United 
524.34 	States Attorney General according to the Illegal Immigration Reform and Immigrant 
525.1 	Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 
525.2 	Public Law 104-200; or
525.3 	(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 
525.4 	Law 96-422, the Refugee Education Assistance Act of 1980.
525.5 	(c) All qualified noncitizens who were residing in the United States before August 
525.6 	22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 
525.7 	medical assistance with federal financial participation.
525.8 	(d) Beginning December 1, 1996, qualified noncitizens who entered the United 
525.9 	States on or after August 22, 1996, and who otherwise meet the eligibility requirements 
525.10 	of this chapter are eligible for medical assistance with federal participation for five years 
525.11 	if they meet one of the following criteria:
525.12 	(1) refugees admitted to the United States according to United States Code, title 8, 
525.13 	section 1157;
525.14 	(2) persons granted asylum according to United States Code, title 8, section 1158;
525.15 	(3) persons granted withholding of deportation according to United States Code, 
525.16 	title 8, section 1253(h);
525.17 	(4) veterans of the United States armed forces with an honorable discharge for 
525.18 	a reason other than noncitizen status, their spouses and unmarried minor dependent 
525.19 	children; or
525.20 	(5) persons on active duty in the United States armed forces, other than for training, 
525.21 	their spouses and unmarried minor dependent children.
525.22 	 Beginning July 1, 2010, children and pregnant women who are noncitizens 
525.23 	described in paragraph (b) or who are lawfully present in the United States as defined 
525.24 	in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet 
525.25 	eligibility requirements of this chapter, are eligible for medical assistance with federal 
525.26 	financial participation as provided by the federal Children's Health Insurance Program 
525.27 	Reauthorization Act of 2009, Public Law 111-3.
525.28 	(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 
525.29 	are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this 
525.30 	subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 
525.31 	Code, title 8, section 1101(a)(15).
525.32 	(f) Payment shall also be made for care and services that are furnished to noncitizens, 
525.33 	regardless of immigration status, who otherwise meet the eligibility requirements of 
525.34 	this chapter, if such care and services are necessary for the treatment of an emergency 
525.35 	medical condition.
526.1 	(g) For purposes of this subdivision, the term "emergency medical condition" means 
526.2 	a medical condition that meets the requirements of United States Code, title 42, section 
526.3 	1396b(v).
526.4 	(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment 
526.5 	of an emergency medical condition are limited to the following:
526.6 	(i) services delivered in an emergency room or by an ambulance service licensed 
526.7 	under chapter 144E that are directly related to the treatment of an emergency medical 
526.8 	condition;
526.9 	(ii) services delivered in an inpatient hospital setting following admission from an 
526.10 	emergency room or clinic for an acute emergency condition; and
526.11 	(iii) follow-up services that are directly related to the original service provided 
526.12 	to treat the emergency medical condition and are covered by the global payment made 
526.13 	to the provider.
526.14 	(2) Services for the treatment of emergency medical conditions do not include:
526.15 	(i) services delivered in an emergency room or inpatient setting to treat a 
526.16 	nonemergency condition;
526.17 	(ii) organ transplants, stem cell transplants, and related care;
526.18 	(iii) services for routine prenatal care;
526.19 	(iv) continuing care, including long-term care, nursing facility services, home health 
526.20 	care, adult day care, day training, or supportive living services;
526.21 	(v) elective surgery;
526.22 	(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as 
526.23 	part of an emergency room visit;
526.24 	(vii) preventative health care and family planning services;
526.25 	(viii) rehabilitation services;
526.26 	(ix) physical, occupational, or speech therapy;
526.27 	(x) transportation services;
526.28 	(xi) case management;
526.29 	(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;
526.30 	(xiii) dental services;
526.31 	(xiv) hospice care;
526.32 	(xv) audiology services and hearing aids;
526.33 	(xvi) podiatry services;
526.34 	(xvii) chiropractic services;
526.35 	(xviii) immunizations;
526.36 	(xix) vision services and eyeglasses;
527.1 	(xx) waiver services;
527.2 	(xxi) individualized education programs; or
527.3 	(xxii) chemical dependency treatment.
527.4 	(i) Pregnant noncitizens who are ineligible for federally funded medical assistance 
527.5 	because of immigration status, are not covered by a group health plan or health insurance 
527.6 	coverage according to Code of Federal Regulations, title 42, section 457.310, and who 
527.7 	otherwise meet the eligibility requirements of this chapter, are eligible for medical 
527.8 	assistance through the period of pregnancy, including labor and delivery, and 60 days 
527.9 	postpartum, to the extent federal funds are available under title XXI of the Social Security 
527.10 	Act, and the state children's health insurance program.
527.11 	(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation 
527.12 	services from a nonprofit center established to serve victims of torture and are otherwise 
527.13 	ineligible for medical assistance under this chapter are eligible for medical assistance 
527.14 	without federal financial participation. These individuals are eligible only for the period 
527.15 	during which they are receiving services from the center. Individuals eligible under this 
527.16 	paragraph shall not be required to participate in prepaid medical assistance. The nonprofit 
527.17 	center referenced under this paragraph may establish itself as a provider of mental health 
527.18 	targeted case management services through a county contract under section 256.0112, 
527.19 	subdivision 6. If the nonprofit center is unable to secure a contract with a lead county in its 
527.20 	service area, then, notwithstanding the requirements of section 256B.0625, subdivision 
527.21 	20, the commissioner may negotiate a contract with the nonprofit center for provision of 
527.22 	mental health targeted case management services. When serving clients who are not the 
527.23 	financial responsibility of their contracted lead county, the nonprofit center must gain the 
527.24 	concurrence of the county of financial responsibility prior to providing mental health 
527.25 	targeted case management services for those clients.
527.26 	(k) Notwithstanding paragraph (h), clause (2), the following services are covered as 
527.27 	emergency medical conditions under paragraph (f) except where coverage is prohibited 
527.28 	under federal law:
527.29 	(1) dialysis services provided in a hospital or freestanding dialysis facility; and
527.30 	(2) surgery and the administration of chemotherapy, radiation, and related services 
527.31 	necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission 
527.32 	and requires surgery, chemotherapy, or radiation treatment.
527.33 	(l) Effective July 1, 2013, recipients of emergency medical assistance under this 
527.34 	subdivision are eligible for coverage of the elderly waiver services provided under section 
527.35 	256B.0915, and coverage of rehabilitative services provided in a nursing facility. The 
527.36 	age limit for elderly waiver services does not apply. In order to qualify for coverage, a 
528.1 	recipient of emergency medical assistance is subject to the assessment and reassessment 
528.2 	requirements of section 256B.0911. Initial and continued enrollment under this paragraph 
528.3 	is subject to the limits of available funding.

528.4 	Sec. 6. Minnesota Statutes 2012, section 256B.0615, subdivision 3, is amended to read:
528.5 		Subd. 3.Eligibility. Peer support services may be made available to consumers of 
528.6 	(1) the intensive rehabilitative mental health services under section 256B.0622; (2) adult 
528.7 	rehabilitative mental health services under section 256B.0623; and (3) crisis stabilization 
528.8 	and mental health mobile crisis intervention services under section 256B.0624.

528.9 	Sec. 7. Minnesota Statutes 2012, section 256B.0624, subdivision 2, is amended to read:
528.10 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
528.11 	meanings given them.
528.12 	(a) "Mental health crisis" is an adult behavioral, emotional, or psychiatric situation 
528.13 	which, but for the provision of crisis response services, would likely result in significantly 
528.14 	reduced levels of functioning in primary activities of daily living, or in an emergency 
528.15 	situation, or in the placement of the recipient in a more restrictive setting, including, but 
528.16 	not limited to, inpatient hospitalization.
528.17 	(b) "Mental health emergency" is an adult behavioral, emotional, or psychiatric 
528.18 	situation which causes an immediate need for mental health services and is consistent 
528.19 	with section 62Q.55.
528.20 	A mental health crisis or emergency is determined for medical assistance service 
528.21 	reimbursement by a physician, a mental health professional, or crisis mental health 
528.22 	practitioner with input from the recipient whenever possible.
528.23 	(c) "Mental health crisis assessment" means an immediate face-to-face assessment 
528.24 	by a physician, a mental health professional, or mental health practitioner under the 
528.25 	clinical supervision of a mental health professional, following a screening that suggests 
528.26 	that the adult may be experiencing a mental health crisis or mental health emergency 
528.27 	situation. It includes, when feasible, assessing whether the person might be willing to 
528.28 	voluntarily accept treatment, determining whether the person has an advance directive, 
528.29 	and obtaining information and history from involved family members or caretakers.
528.30 	(d) "Mental health mobile crisis intervention services" means face-to-face, 
528.31 	short-term intensive mental health services initiated during a mental health crisis or mental 
528.32 	health emergency to help the recipient cope with immediate stressors, identify and utilize 
528.33 	available resources and strengths, engage in voluntary treatment, and begin to return to the 
529.1 	recipient's baseline level of functioning. The services, including screening and treatment 
529.2 	plan recommendations, must be culturally and linguistically appropriate.
529.3 	(1) This service is provided on site by a mobile crisis intervention team outside of 
529.4 	an inpatient hospital setting. Mental health mobile crisis intervention services must be 
529.5 	available 24 hours a day, seven days a week.
529.6 	(2) The initial screening must consider other available services to determine which 
529.7 	service intervention would best address the recipient's needs and circumstances.
529.8 	(3) The mobile crisis intervention team must be available to meet promptly 
529.9 	face-to-face with a person in mental health crisis or emergency in a community setting or 
529.10 	hospital emergency room.
529.11 	(4) The intervention must consist of a mental health crisis assessment and a crisis 
529.12 	treatment plan.
529.13 	(5) The team must be available to individuals who are experiencing a co-occurring 
529.14 	substance use disorder, who do not need the level of care provided in a detoxification 
529.15 	facility.
529.16 	(5) (6) The treatment plan must include recommendations for any needed crisis 
529.17 	stabilization services for the recipient, including engagement in treatment planning and 
529.18 	family psychoeducation.
529.19 	(e) "Mental health crisis stabilization services" means individualized mental 
529.20 	health services provided to a recipient following crisis intervention services which are 
529.21 	designed to restore the recipient to the recipient's prior functional level. Mental health 
529.22 	crisis stabilization services may be provided in the recipient's home, the home of a family 
529.23 	member or friend of the recipient, another community setting, or a short-term supervised, 
529.24 	licensed residential program. Mental health crisis stabilization does not include partial 
529.25 	hospitalization or day treatment. Mental health crisis stabilization services includes 
529.26 	family psychoeducation.

529.27 	Sec. 8. Minnesota Statutes 2012, section 256B.0624, subdivision 5, is amended to read:
529.28 		Subd. 5.Mobile crisis intervention staff qualifications. For provision of adult 
529.29 	mental health mobile crisis intervention services, a mobile crisis intervention team is 
529.30 	comprised of at least two mental health professionals as defined in section 245.462, 
529.31 	subdivision 18, clauses (1) to (6), or a combination of at least one mental health 
529.32 	professional and one mental health practitioner as defined in section 245.462, subdivision 
529.33 	17, with the required mental health crisis training and under the clinical supervision of 
529.34 	a mental health professional on the team. The team must have at least two people with 
529.35 	at least one member providing on-site crisis intervention services when needed. Team 
530.1 	members must be experienced in mental health assessment, crisis intervention techniques, 
530.2 	treatment engagement strategies, working with families, and clinical decision-making 
530.3 	under emergency conditions and have knowledge of local services and resources. 
530.4 	The team must recommend and coordinate the team's services with appropriate local 
530.5 	resources such as the county social services agency, mental health services, and local 
530.6 	law enforcement when necessary.

530.7 	Sec. 9. Minnesota Statutes 2012, section 256B.0624, subdivision 6, is amended to read:
530.8 		Subd. 6.Crisis assessment and mobile intervention treatment planning. (a) 
530.9 	Prior to initiating mobile crisis intervention services, a screening of the potential crisis 
530.10 	situation must be conducted. The screening may use the resources of crisis assistance 
530.11 	and emergency services as defined in sections 245.462, subdivision 6, and 245.469, 
530.12 	subdivisions 1 and 2. The screening must gather information, determine whether a crisis 
530.13 	situation exists, identify parties involved, and determine an appropriate response.
530.14 	(b) If a crisis exists, a crisis assessment must be completed. A crisis assessment 
530.15 	evaluates any immediate needs for which emergency services are needed and, as time 
530.16 	permits, the recipient's current life situation, sources of stress, mental health problems 
530.17 	and symptoms, strengths, cultural considerations, support network, vulnerabilities, current 
530.18 	functioning, and the recipient's preferences as communicated directly by the recipient, 
530.19 	or as communicated in a health care directive as described in chapters 145C and 253B, 
530.20 	the treatment plan described under paragraph (d), a crisis prevention plan, or a wellness 
530.21 	recovery action plan.
530.22 	(c) If the crisis assessment determines mobile crisis intervention services are needed, 
530.23 	the intervention services must be provided promptly. As opportunity presents during the 
530.24 	intervention, at least two members of the mobile crisis intervention team must confer 
530.25 	directly or by telephone about the assessment, treatment plan, and actions taken and 
530.26 	needed. At least one of the team members must be on site providing crisis intervention 
530.27 	services. If providing on-site crisis intervention services, a mental health practitioner must 
530.28 	seek clinical supervision as required in subdivision 9.
530.29 	(d) The mobile crisis intervention team must develop an initial, brief crisis treatment 
530.30 	plan as soon as appropriate but no later than 24 hours after the initial face-to-face 
530.31 	intervention. The plan must address the needs and problems noted in the crisis assessment 
530.32 	and include measurable short-term goals, cultural considerations, and frequency and type 
530.33 	of services to be provided to achieve the goals and reduce or eliminate the crisis. The 
530.34 	treatment plan must be updated as needed to reflect current goals and services.
531.1 	(e) The team must document which short-term goals have been met and when no 
531.2 	further crisis intervention services are required.
531.3 	(f) If the recipient's crisis is stabilized, but the recipient needs a referral to other 
531.4 	services, the team must provide referrals to these services. If the recipient has a case 
531.5 	manager, planning for other services must be coordinated with the case manager. If the 
531.6 	recipient is unable to follow up on the referral, the team must link the recipient to the 
531.7 	service and follow up to ensure the recipient is receiving the service.
531.8 	(g) If the recipient's crisis is stabilized and the recipient does not have an advance 
531.9 	directive, the case manager or crisis team shall offer to work with the recipient to develop 
531.10 	one.

531.11 	Sec. 10. Minnesota Statutes 2012, section 256B.0624, subdivision 10, is amended to 
531.12 	read:
531.13 		Subd. 10.Recipient file. Providers of mobile crisis intervention or crisis stabilization 
531.14 	services must maintain a file for each recipient containing the following information:
531.15 	(1) individual crisis treatment plans signed by the recipient, mental health 
531.16 	professional, and mental health practitioner who developed the crisis treatment plan, or 
531.17 	if the recipient refused to sign the plan, the date and reason stated by the recipient as to 
531.18 	why the recipient would not sign the plan;
531.19 	(2) signed release forms;
531.20 	(3) recipient health information and current medications;
531.21 	(4) emergency contacts for the recipient;
531.22 	(5) case records which document the date of service, place of service delivery, 
531.23 	signature of the person providing the service, and the nature, extent, and units of service. 
531.24 	Direct or telephone contact with the recipient's family or others should be documented;
531.25 	(6) required clinical supervision by mental health professionals;
531.26 	(7) summary of the recipient's case reviews by staff; and
531.27 	(8) any written information by the recipient that the recipient wants in the file; and
531.28 	(9) an advance directive, if there is one available.
531.29 	Documentation in the file must comply with all requirements of the commissioner.

531.30 	Sec. 11. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
531.31 		Subd. 2.Monthly rates; exemptions. The maximum group residential housing rate 
531.32 	does not apply This subdivision applies to a residence that on August 1, 1984, was licensed 
531.33 	by the commissioner of health only as a boarding care home, certified by the commissioner 
531.34 	of health as an intermediate care facility, and licensed by the commissioner of human 
532.1 	services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the 
532.2 	provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision 
532.3 	shall be determined under section 256B.431, or under section 256B.434 if the facility is 
532.4 	accepted by the commissioner for participation in the alternative payment demonstration 
532.5 	project. The rate paid to this facility shall also include adjustments to the group residential 
532.6 	housing rate according to subdivision 1, and any adjustments applicable to supplemental 
532.7 	service rates statewide.

532.8 	Sec. 12. DIRECTION TO COMMISSIONER; REPORT ON PROGRAM 
532.9 	WAITING LISTS.
 532.10 	In preparing background materials for the 2016-2017 biennium, the commissioner 
532.11 	of human services shall prepare a listing of all of the waiting lists for services that the 
532.12 	department oversees and directs. The listing shall identify the number of persons on those 
532.13 	waiting lists as of October 1, 2014, and an estimate of the cost of serving them based on 
532.14 	current average costs. The commissioner is encouraged to engage postsecondary students 
532.15 	in the assembly, analysis, and reporting of this information. The information shall be 
532.16 	provided to the governor, the chairs and ranking minority members of the legislative 
532.17 	committees with jurisdiction over health and human services policy and finance, and the 
532.18 	Legislative Reference Library in electronic form by December 1, 2014.

532.19 	Sec. 13. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO 
532.20 	ARREST; WORKING GROUP.
 532.21 		Subdivision 1.Working group established; study and draft legislation required.
 532.22 	The commissioner of human services may convene a working group to address issues 
532.23 	related to offenders with mental illness who are arrested or subject to arrest. The working 
532.24 	group shall consider the special needs of these offenders and determine how best to 
532.25 	provide for these needs. Specifically, the group shall consider the efficacy of a facility 
532.26 	that would serve as a central point for accepting, assessing, and addressing the needs of 
532.27 	offenders with mental illness brought in by law enforcement as an alternative to arrest or 
532.28 	following arrest. The facility would consolidate and coordinate existing resources as well 
532.29 	as offer new resources that would provide a continuum of care addressing the immediate, 
532.30 	short-term, and long-term needs of these offenders. The facility would do the following for 
532.31 	these offenders: perform timely, credible, and useful mental health assessments; identify 
532.32 	community placement opportunities; coordinate community care; make recommendations 
532.33 	concerning pretrial release when appropriate; and, in some cases, provide direct services 
532.34 	to offenders at the facility or in nearby jails. The working group shall establish criteria 
533.1 	to determine which offenders may be admitted to the facility. The facility would be 
533.2 	located in the metropolitan region and serve the needs of nearby counties. The facility 
533.3 	would represent a partnership between the state, local units of government, and the private 
533.4 	sector. In addition, the working group may consider how similar facilities could function 
533.5 	in outstate areas. When studying this issue, the working group shall examine what other 
533.6 	states have done in this area to determine what programs have been successful and use 
533.7 	those programs as models in developing the program in Minnesota. The working group 
533.8 	may also study and make recommendations on other ways to improve the process for 
533.9 	addressing and assisting these offenders. The commissioner shall enter into an agreement 
533.10 	with NAMI Minnesota to carry out the work of the working group.
533.11 		Subd. 2.Membership. The commissioner shall ensure that the working group 
533.12 	has expertise and a broad range of interests represented, including, but not limited to: 
533.13 	prosecutors; law enforcement, including jail staff; correctional officials; community 
533.14 	corrections staff; probation officials; criminal defense attorneys; judges; county and city 
533.15 	officials; mental health advocates; mental health professionals; and hospital and health 
533.16 	care officials.
533.17 		Subd. 3.Administrative issues. (a) The commissioner shall convene the first 
533.18 	meeting of the working group by September 1, 2014. NAMI Minnesota shall provide 
533.19 	meeting space and administrative support to the working group. The working group shall 
533.20 	select a chair from among its members.
533.21 	(b) The commissioner may solicit in-kind support from work group member 
533.22 	agencies to accomplish its assigned duties.
533.23 		Subd. 4.Report required. By January 1, 2015, the working group shall submit a 
533.24 	report to the chairs and ranking minority members of the senate and house of representatives 
533.25 	committees and divisions having jurisdiction over human services and public safety. The 
533.26 	report must summarize the working group's activities and include its recommendations 
533.27 	and draft legislation. The recommendations must be specific and include estimates of the 
533.28 	costs involved in implementing the recommendations, including the funding sources that 
533.29 	might be used to pay for it. The working group shall explore potential funding sources 
533.30 	at the federal, local, and private levels, and provide this information in the report. In 
533.31 	addition, the report must include draft legislation to implement the recommendations.

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

533.33 	Sec. 14. DETOXIFICATION SERVICES PLAN.
 533.34 	The commissioner of human services shall develop a plan to include detoxification 
533.35 	services as a covered medical assistance benefit and present the plan to the members of the 
534.1 	legislative committees having jurisdiction over health and human services provisions and 
534.2 	funding by December 15, 2014.

534.3 	Sec. 15. REPORT ON RATE SETTING METHODOLOGY FOR MENTAL 
534.4 	HEALTH SERVICES.
 534.5 	The commissioner of human services shall provide a report to the chairs of the 
534.6 	Health and Human Services Finance Division by February 1, 2015, that assesses the 
534.7 	current rate setting methodology for intensive residential treatment services (IRTS), adult 
534.8 	crisis, and assertive community treatment (ACT). The report will include an assessment 
534.9 	of alternative payment structures consistent with the intent and direction of the federal 
534.10 	centers for Medicare and Medicaid services which could provide adequate reimbursement 
534.11 	to sustain community-based mental health services regardless of geographic location. 
534.12 	Stakeholders will be included in the development of the report and the report will also 
534.13 	include concerns regarding payment rates for other mental health services that may 
534.14 	require further analysis in the future.

534.15 	ARTICLE 30
534.16 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

534.17	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
534.18 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
534.19 	in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14 
534.20 	and 15, to the agencies and for the purposes specified in this article. The appropriations 
534.21 	are from the general fund and are available for the fiscal years indicated for each purpose. 
534.22 	The figures "2014" and "2015" used in this article mean that the addition to or subtraction 
534.23 	from the appropriation listed under them is available for the fiscal year ending June 30, 
534.24 	2014, or June 30, 2015, respectively. Supplemental appropriations and reductions to 
534.25 	appropriations for the fiscal year ending June 30, 2014, are effective the day following 
534.26 	final enactment unless a different effective date is explicit.

534.27				APPROPRIATIONS
	
534.28				Available for the Year
	
534.29				Ending June 30
	
534.30					2014
		2015

534.31
534.32	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

534.33	Subdivision 1.Total Appropriation
 		(2,120,000)
		105,844,000

535.1	Appropriations by Fund
	
535.2	General
	(2,120,000)
	104,944,000
	
535.3	Federal TANF
	-0-
	 900,000
	
535.4 	The appropriation modifications for 
535.5 	each purpose are shown in the following 
535.6 	subdivisions.

535.7	Subd. 2.Central Office Operations

535.8	(a) Operations
		-0-
		 99,000
	
535.9 	Base adjustment. The general fund base is 
535.10 	increased by $112,000 in fiscal year 2016 
535.11 	and decreased by $45,000 in fiscal year 2017.

535.12	(b) Health Care
		-0-
		113,000
	
535.13 	Base adjustment. The general fund base is 
535.14 	increased by $112,000 in fiscal years 2016 
535.15 	and 2017.

535.16	(c) Continuing Care
		-0-
		2,668,000
	
535.17 	Autism resource Web site. $769,000 is for 
535.18 	the development of an interagency Web site 
535.19 	with autism-related resources for children 
535.20 	and adults with autism spectrum disorder, 
535.21 	their family members, and other interested 
535.22 	parties. The commissioners of education, 
535.23 	employment and economic development, 
535.24 	and health are requested to provide technical 
535.25 	assistance to the commissioner in the 
535.26 	development of the Web site in order to 
535.27 	consolidate autism-related resources that are 
535.28 	under the jurisdiction of affected agencies, 
535.29 	and any other related resources of which 
535.30 	the agencies are aware, in an effort to 
535.31 	provide a comprehensive intra-agency Web 
535.32 	site for interested users. This is a onetime 
535.33 	appropriation and expires on June 30, 2017.
536.1 	Base adjustment. The general fund base is 
536.2 	decreased by $2,220,000 in fiscal year 2016 
536.3 	and $2,362,000 in fiscal year 2017.

536.4	(d) Chemical and Mental Health
		-0-
		115,000
	
536.5 	Base adjustment. The general fund base is 
536.6 	decreased by $115,000 in fiscal years 2016 
536.7 	and 2017.

536.8	Subd. 3.Forecasted Programs

536.9	(a) MFIP/DWP

536.10	Appropriations by Fund
	
536.11	General
	-0-
	122,000
	
536.12	Federal TANF
	-0-
	 548,000

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

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

536.15	(d) Medical Assistance
		(2,930,000)
		77,863,000
	
536.16 	Critical access nursing facilities.
536.17 	 $1,500,000 in fiscal year 2015 is for critical 
536.18 	access nursing facilities under Minnesota 
536.19 	Statutes, section 256.441, subdivision 63.
536.20 	Base adjustment. The health care 
536.21 	access fund base for medical assistance 
536.22 	is $221,035,000 in fiscal year 2016 and 
536.23 	$221,035,000 in fiscal year 2017.

536.24	(e) Alternative Care
		-0-
		965,000

536.25	Subd. 4.Grant Programs

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

536.29	(b) Child and Economic Support Grants
		-0-
		1,526,000
	
536.30 	Stearns County.$26,000 in fiscal year 2015 
536.31 	is for a grant to Stearns County to provide 
536.32 	administrative funding to support a group 
537.1 	residential housing services provider serving 
537.2 	veterans in Stearns County. This is a onetime 
537.3 	appropriation.
537.4 	Safe harbor.  $500,000 in fiscal year 2015 
537.5 	from the general fund is for housing and 
537.6 	supportive services for sexually exploited 
537.7 	youth.
537.8 	Homeless youth.  $1,000,000 in fiscal year 
537.9 	2015 is for purposes of Minnesota Statutes, 
537.10 	section 256K.45.
537.11 	Base adjustment. The general fund base is 
537.12 	decreased by $26,000 in fiscal years 2016 
537.13 	and 2017.

537.14	(c) Aging and Adult Services Grants
		(15,000)
		1,212,000
	
537.15 	Senior nutrition. $250,000 in fiscal year 
537.16 	2015 from the general fund is for congregate 
537.17 	dining services under Minnesota Statutes, 
537.18 	section 256.9752. This is a onetime 
537.19 	appropriation.
537.20 	Base adjustment. The general fund base is 
537.21 	decreased by $5,000 in fiscal year 2016 and 
537.22 	is increased by $8,000 in fiscal year 2017.

537.23	(d) Deaf and Hard-of-Hearing Grants
		-0-
		81,000
	
537.24 	Base adjustment. The general fund base is 
537.25 	increased by $9,000 in fiscal years 2016 and 
537.26 	2017.

537.27	(e) Disabilities Grants
		-0-
		1,548,000
	
537.28 	Autism respite services development. 
537.29 	$2,500,000 in fiscal year 2015 is to establish 
537.30 	service development grants for in-home 
537.31 	and out-of-home respite for children and 
537.32 	adults with autism spectrum disorder. In 
537.33 	developing out-of-home respite services, 
538.1 	the commissioner may authorize exceptions 
538.2 	to the licensing moratorium in Minnesota 
538.3 	Statutes, section 245A.03, subdivision 7, 
538.4 	of up to eight beds. This is a onetime 
538.5 	appropriation and expires on June 30, 2017.
538.6 	HIV grants. The general fund appropriation 
538.7 	for the HIV drug and insurance grant 
538.8 	program is reduced by $2,219,000 in fiscal 
538.9 	year 2015. This reduction is onetime and 
538.10 	must not be applied to the base.
538.11 	Services for individuals living with 
538.12 	HIV/AIDS. The commissioner shall work 
538.13 	with community stakeholders, including 
538.14 	the HIV Planning Council, to identify 
538.15 	gaps in services for individuals living with 
538.16 	HIV/AIDS and, within allowable state and 
538.17 	federal law and guidelines, develop and 
538.18 	implement a plan to use funds in the ADAP 
538.19 	drug rebates special revenue account to 
538.20 	enhance existing service levels and establish 
538.21 	an amount to retain in the account to 
538.22 	ensure long-term stability of services. The 
538.23 	commissioner shall report the results of this 
538.24 	work with stakeholders and the progress 
538.25 	on implementing the plan to the chairs and 
538.26 	ranking minority members of the senate 
538.27 	health and human services finance division 
538.28 	and the house of representatives health 
538.29 	and human services finance committee by 
538.30 	December 15, 2014.
538.31 	Base adjustment. The general fund base is 
538.32 	increased by $11,000 in fiscal year 2017.

538.33	(f) Adult Mental Health Grants
		-0-
		-0-
	
538.34 	Intensive community rehabilitation 
538.35 	services. The commissioner shall continue 
539.1 	to fund intensive community rehabilitation 
539.2 	services with existing funds through fiscal 
539.3 	year 2015.

539.4	(g) CD Treatment Support Grants
		(175,000)
		(175,000)

539.5	Subd. 5.State-Operated Services

539.6	(a) SOS Mental Health
		-0-
		8,111,000
	
539.7 	Online training program. $35,000 in 
539.8 	fiscal year 2015 is to develop an online 
539.9 	training program to promote better clarity 
539.10 	and interpretation of the civil commitment 
539.11 	laws for interested individuals and personnel, 
539.12 	specifically county and hospital staff and 
539.13 	mental health providers, to understand, 
539.14 	clarify, and interpret the Civil Commitment 
539.15 	Act under Minnesota Statutes, chapter 
539.16 	253B, as it pertains to persons with mental 
539.17 	illnesses. The training must be developed 
539.18 	in collaboration with the ombudsman for 
539.19 	mental health and developmental disabilities, 
539.20 	Minnesota County Attorneys Association, 
539.21 	National Alliance on Mental Illness of 
539.22 	Minnesota, State Advisory Council on Mental 
539.23 	Health, Mental Health Consumer/Survivor 
539.24 	Network of Minnesota, Mental Health 
539.25 	Association, Minnesota Psychiatric Society, 
539.26 	Hennepin Commitment Defense Panel, 
539.27 	Minnesota Disability Law Center, Minnesota 
539.28 	Association of Community Mental Health 
539.29 	Programs, Minnesota Hospital Association, 
539.30 	and Minnesota Board of Public Defense. 
539.31 	This is a onetime appropriation.
539.32 	Base adjustment. The general fund base is 
539.33 	increased by $178,000 in fiscal years 2016 
539.34 	and 2017.

540.1	(b) SOS Enterprise Services
		1,000,000
		1,000,000
	
540.2 	Community Addiction Recovery 
540.3 	Enterprise (C.A.R.E.) deficiency funding.
540.4 	(1) Notwithstanding Minnesota Statutes, 
540.5 	section 254B.06, subdivision 1, the 
540.6 	commissioner shall transfer up to $4,000,000, 
540.7 	if available, in each of fiscal years 2014 and 
540.8 	2015 only from the consolidated chemical 
540.9 	dependency treatment fund administrative 
540.10 	account in the special revenue fund to the 
540.11 	enterprise fund for the Community Addiction 
540.12 	Recovery Enterprise.
540.13 	(2) $1,000,000 in fiscal year 2014 and 
540.14 	$1,000,000 in fiscal year 2015 from the 
540.15 	general fund is for the C.A.R.E. program. 
540.16 	The commissioner must transfer $1,000,000 
540.17 	in fiscal year 2014 and $1,000,000 in fiscal 
540.18 	year 2015 to the enterprise fund for the 
540.19 	Community Addiction Recovery Enterprise. 
540.20 	This is a onetime appropriation.
540.21 	(3) Clauses (1) and (2) are effective the day 
540.22 	following final enactment.
540.23 	Base adjustment. The general fund base is 
540.24 	reduced by $1,000,000 in fiscal years 2016 
540.25 	and 2017.

540.26	(c) SOS Minnesota Security Hospital
		-0-
		4,820,000

540.27	Subd. 6.Sex Offender Program
 		-0-
		4,177,000
	
540.28 	Court-ordered experts.  $3,000,000 in 
540.29 	fiscal year 2015 is for the commissioner to 
540.30 	comply with the United States District Court 
540.31 	order of February 20, 2014, in the matter of 
540.32 	Karsjens et al. v. Jesson et al. For purposes 
540.33 	of Minnesota Statutes, section 246B.10, 
540.34 	activities funded by this appropriation are 
541.1 	not considered part of the cost of care. This 
541.2 	appropriation is onetime and is available 
541.3 	until June 30, 2017. This paragraph expires 
541.4 	June 30, 2017.
541.5 	Base adjustment. The general fund base is 
541.6 	decreased by $4,177,000 in fiscal years 2016 
541.7 	and 2017.

541.8	Subd. 7.Technical Activities
 		-0-
		352,000
	
541.9 	This appropriation is from the federal TANF 
541.10 	fund.
541.11 	Base adjustment. The federal TANF fund 
541.12 	base is increased by $684,000 in fiscal year 
541.13 	2016 and $1,207,000 in fiscal year 2017.

541.14	Subd. 8.Transfer
 					
541.15 	Supplemental security interim assistance 
541.16 	reimbursement funds. $642,000 in fiscal 
541.17 	year 2015 and $637,000 in fiscal year 2016 
541.18 	of uncommitted revenue available to the 
541.19 	commissioner of human services under 
541.20 	Minnesota Statutes, section 256D.06, must 
541.21 	be transferred to and deposited into the 
541.22 	general fund. This paragraph expires on June 
541.23 	30, 2016.

541.24	Sec. 3. COMMISSIONER OF HEALTH.

541.25	Subdivision 1.Total Appropriation
 	$
	767,000
	$
	3,418,000

541.26	Appropriations by Fund
	
541.27		2014
	2015
	
541.28	General
	950,000
	3,611,000
	
541.29
541.30	State Government 
Special Revenue
	817,000
	807,000
	
541.31	Health Care Access
	(1,000,000)
	(1,000,000)

541.32	Subd. 2.Health Improvement
 		(25,000)
		1,526,000
	
541.33 	Health equity grants. $501,000 in fiscal year 
541.34 	2015 is for grants under Minnesota Statutes, 
542.1 	section 145.928, subdivision 8, except that 
542.2 	grants are not limited to the conditions listed 
542.3 	in Minnesota Statutes, section 145.928, 
542.4 	subdivision 8, paragraph (a), or for other 
542.5 	activities to address health equity issues, 
542.6 	with an emphasis on refugee populations. A 
542.7 	portion of the funds must be used to address 
542.8 	health equity issues facing East African 
542.9 	communities, conduct a conference focused 
542.10 	on mental health in immigrant and refugee 
542.11 	communities, and fund women's reproductive 
542.12 	health and dementia outreach projects. This 
542.13 	is a onetime appropriation and is available 
542.14 	until expended. The commissioner may use 
542.15 	up to $10,000 to administer these grants.
542.16 	Safe harbor. $1,000,000 of the general fund 
542.17 	appropriation is for grants for comprehensive 
542.18 	services, including trauma-informed, 
542.19 	culturally specific services, for youth who are 
542.20 	sexually exploited. The commissioner may 
542.21 	use up to $100,000 for the administration of 
542.22 	these grants.
542.23 	Base level adjustment. The general fund 
542.24 	base is decreased by $551,000 in fiscal year 
542.25 	2016 and $501,000 in fiscal year 2017. 

542.26	Subd. 3.Policy Quality and Compliance

542.27	Appropriations by Fund
	
542.28	General
	-0-
	1,785,000
	
542.29
542.30	State Government 
Special Revenue
	-0-
	159,000
	
542.31	Health Care Access
	(1,000,000)
	(1,000,000)
	
542.32 	Legislative health care workforce 
542.33 	commission. $75,000 in fiscal year 2015 is 
542.34 	for the health care workforce commission 
542.35 	in article 23, section 9. This is a onetime 
542.36 	appropriation and expires on June 30, 2017. 
543.1 	The commissioner may transfer part of this 
543.2 	appropriation to the Legislative Coordinating 
543.3 	Commission to provide per diem and expense 
543.4 	reimbursements to health care workforce 
543.5 	commission members.
543.6 	Spoken language health care interpreters. 
543.7 	$81,000 in fiscal year 2015 from the 
543.8 	state government special revenue fund is 
543.9 	to develop a proposal to promote health 
543.10 	equity and quality health outcomes through 
543.11 	changes to laws governing spoken language 
543.12 	health care interpreters. The commissioner 
543.13 	shall consult with a broad range of spoken 
543.14 	language health care interpreters, including 
543.15 	independent contractors and those who 
543.16 	speak rare languages, organizations that 
543.17 	employ these interpreters, organizations 
543.18 	that pay for interpreter services, health 
543.19 	care providers who use interpreters, 
543.20 	clients who use interpreters, community 
543.21 	organizations serving non-English-speaking 
543.22 	populations, and other relevant organizations 
543.23 	including but not limited to Interpreter 
543.24 	Agencies of Minnesota and the Interpreters 
543.25 	Stakeholder Group.  The commissioner shall 
543.26 	draft legislation and submit a report that 
543.27 	documents the process followed and the 
543.28 	rationale for the recommendations to the 
543.29 	committees with jurisdiction over health 
543.30 	and human services by January 15, 2015.  
543.31 	In drafting the legislation and report, the 
543.32 	commissioner must consider input received 
543.33 	from individuals and organizations consulted 
543.34 	and must address issues related to:
543.35 	(1) qualifications for spoken language health 
543.36 	care interpreters that assure quality service 
544.1 	to health care providers and their patients, 
544.2 	considering differences for common and rare 
544.3 	languages;
544.4 	(2) methods to support the education and 
544.5 	skills development of spoken language health 
544.6 	care interpreters serving Minnesotans;
544.7 	(3) the role of an advisory council in 
544.8 	maintaining a quality system for spoken 
544.9 	language health care interpreting in 
544.10 	Minnesota;
544.11 	(4) management of complaints regarding 
544.12 	spoken language health care interpreters, 
544.13 	including investigation and enforcement 
544.14 	actions;
544.15 	(5) an appropriate structure for oversight of 
544.16 	spoken language health care interpreters, 
544.17 	including administrative and technology 
544.18 	requirements; and
544.19 	(6) other issues that address qualifications, 
544.20 	quality, access, and affordability of spoken 
544.21 	language interpreter services.
544.22 	This is a onetime appropriation.
544.23 	Health care grants for uninsured 
544.24 	individuals. (a) $100,000 of the general 
544.25 	fund appropriation in fiscal year 2015 is for 
544.26 	dental provider grants in Minnesota Statutes, 
544.27 	section 145.929, subdivision 1. The base for 
544.28 	this appropriation is $50,000 in fiscal years 
544.29 	2016 and 2017.
544.30 	(b) $300,000 of the general fund 
544.31 	appropriation in fiscal year 2015 is for 
544.32 	community mental health program grants 
544.33 	in Minnesota Statutes, section 145.929, 
545.1 	subdivision 2. The base for this appropriation 
545.2 	is $175,000 in fiscal years 2016 and 2017.
545.3 	(c) $1,000,000 of the general fund 
545.4 	appropriation in fiscal year 2015 is for the 
545.5 	emergency medical assistance outlier grant 
545.6 	program in Minnesota Statutes, section 
545.7 	145.929, subdivision 3. The base for this 
545.8 	appropriation is $600,000 in fiscal years 
545.9 	2016 and 2017.
545.10 	(d) $300,000 of the general fund 
545.11 	appropriation in fiscal year 2015 is for 
545.12 	community health center grants under 
545.13 	Minnesota Statutes, section 145.9269. A 
545.14 	community health center that receives a 
545.15 	grant from this appropriation is not eligible 
545.16 	for a grant under paragraph (b).  The base for 
545.17 	this appropriation is $175,000 in fiscal years 
545.18 	2016 and 2017.
545.19 	(e) The commissioner may use up to $20,000 
545.20 	of the appropriations for health care grants 
545.21 	for uninsured individuals in fiscal year 2015 
545.22 	and up to $10,000 in fiscal years 2016 and 
545.23 	2017 for grant administration.
545.24 	Base level adjustment. The general fund 
545.25 	base is decreased by $775,000 in fiscal years 
545.26 	2016 and 2017. The state government special 
545.27 	revenue fund base is decreased by $77,000 in 
545.28 	fiscal years 2016 and 2017.

545.29	Subd. 4.Health Protection

545.30	Appropriations by Fund
	
545.31	General
	0
	300,000
	
545.32
545.33	State Government 
Special Revenue
	817,000
	648,000
	
545.34 	Healthy housing grants. (a) $60,000 of 
545.35 	the general fund appropriation in fiscal year 
546.1 	2015 is for lead poisoning prevention and 
546.2 	healthy homes activities under Minnesota 
546.3 	Statutes, sections 144.9501 to 144.9513.
546.4 	(b) $240,000 of the general fund 
546.5 	appropriation in fiscal year 2015 is for 
546.6 	healthy housing implementation grants 
546.7 	under Minnesota Statutes, section 144.9513, 
546.8 	subdivision 3. The commissioner is 
546.9 	encouraged to geographically balance the 
546.10 	distribution of the grant funding between 
546.11 	the seven-county metropolitan area and 
546.12 	nonmetropolitan communities.

546.13	Subd. 5.Administrative Support Services
 		975,000
		-0-
	
546.14 	Lawsuit settlement. In fiscal year 2014, 
546.15 	$975,000 from the general fund is a onetime 
546.16 	appropriation for the cost of settling the 
546.17 	lawsuit Bearder v. State.

546.18	Sec. 4. BOARD OF NURSING.
 	$
	-0-
	$
	75,000
	
546.19 	Chronic pain therapies. $75,000 in 
546.20 	fiscal year 2015 from the state government 
546.21 	special revenue fund is transferred to the 
546.22 	commissioner of health to gather data and 
546.23 	complete a report on the provision of chronic 
546.24 	pain therapies by physicians, doctors of 
546.25 	osteopathy, and certified registered nurse 
546.26 	anesthetists.

546.27
546.28
546.29	Sec. 5. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES.
 	$
	-0-
	$
	150,000

546.30 	Sec. 6. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108, 
546.31 	article 6, section 32, is amended to read:
546.32 	Sec. 6. TRANSFER.
 547.1 	(a) The commissioner of management and budget shall transfer from the health care 
547.2 	access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000 
547.3 	in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal 
547.4 	year 2017.
547.5 	(b) The commissioner of human services shall determine the difference between the 
547.6 	actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds 
547.7 	and parents and relative caretaker populations with income between 100 and 138 percent of 
547.8 	the federal poverty guidelines and the cost of adding those populations that was estimated 
547.9 	during the 2013 legislative session based on the data from the February 2013 forecast.
547.10 	(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall 
547.11 	certify and report to the commissioner of management and budget the actual or forecasted
547.12 	 estimated  cost difference of adding 19- and 20-year-olds and parents and relative caretaker 
547.13 	populations with income between 100 and 138 percent of the federal poverty guidelines, 
547.14 	as determined under paragraph (b), to the commissioner of management and budget at 
547.15 	least four weeks prior to the release of a forecast under Minnesota Statutes, section 
547.16 	16A.103, of each fiscal year.
547.17 	(d) No later than three weeks before the release of the forecast For fiscal years 2014 to 
547.18 	2017, forecasts  under Minnesota Statutes, section 16A.103, prepared by the commissioner 
547.19 	of management and budget shall reduce the include actual or estimated adjustments to 
547.20 	health care access fund transfer transfers  in paragraph (a), by the cumulative differences in 
547.21 	costs reported by the commissioner of human services under according to  paragraph (c)
547.22 	 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under 
547.23 	paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year, 
547.24 	the amount of the cumulative cost differences determined under paragraph (b) is less than 
547.25 	the amount of the original appropriation, the appropriation for that year must be zero.
547.26 	(e) For each fiscal year from 2014 to 2017, the commissioner of management and 
547.27 	budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in 
547.28 	costs reported by the commissioner of human services under paragraph (c). If, for any 
547.29 	fiscal year, the amount of the cumulative difference in costs reported under paragraph (c) 
547.30 	is positive, no adjustment shall be made.

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

547.32 	Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 3, is amended to read:

547.33
547.34	Subd. 3.TANF Transfer to Federal Child Care 
and Development Fund
 					
548.1 	(a) The following TANF fund amounts 
548.2 	are appropriated to the commissioner for 
548.3 	purposes of MFIP/transition year child care 
548.4 	assistance under Minnesota Statutes, section 
548.5 	119B.05:
548.6 	(1) fiscal year 2014; $14,020,000; and
548.7 	(2) fiscal year 2015, $14,020,000; 
548.8 	$14,372,000; 
548.9 	(3) fiscal year 2016; $1,036,000; and
548.10 	(4) fiscal year 2017; $1,559,000.
548.11 	(b) The commissioner shall authorize the 
548.12 	transfer of sufficient TANF funds to the 
548.13 	federal child care and development fund to 
548.14 	meet this appropriation and shall ensure that 
548.15 	all transferred funds are expended according 
548.16 	to federal child care and development fund 
548.17 	regulations.

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

548.19
548.20	Subdivision 1.Total Appropriation
 	$
	169,326,000
169,026,000
	$
	165,531,000
165,231,000

548.21	Appropriations by Fund
	
548.22		2014
	2015
	
548.23	General
	79,476,000
	74,256,000
	
548.24
548.25	State Government 
Special Revenue
	48,094,000
	50,119,000
	
548.26	Health Care Access
	29,743,000
	29,143,000
	
548.27	Federal TANF
	11,713,000
	11,713,000
	
548.28	Special Revenue
	300,000
	300,000
	
548.29 	The amounts that may be spent for each 
548.30 	purpose are specified in the following 
548.31 	subdivisions.

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

548.33	Subd. 4.Health Protection

549.1	Appropriations by Fund
	
549.2	General
	9,201,000
	9,201,000
	
549.3
549.4	State Government 
Special Revenue
	32,633,000
	32,636,000
	
549.5	Special Revenue
	300,000
	300,000
	
549.6 	Infectious Disease Laboratory. Of the 
549.7 	general fund appropriation, $200,000 in 
549.8 	fiscal year 2014 and $200,000 in fiscal year 
549.9 	2015 are to monitor infectious disease trends 
549.10 	and investigate infectious disease outbreaks.
549.11 	Surveillance for Elevated Blood Lead 
549.12 	Levels. Of the general fund appropriation, 
549.13 	$100,000 in fiscal year 2014 and $100,000 
549.14 	in fiscal year 2015 are for the blood lead 
549.15 	surveillance system under Minnesota 
549.16 	Statutes, section 144.9502.
549.17 	Base Level Adjustment. The state 
549.18 	government special revenue base is increased 
549.19 	by $6,000 in fiscal year 2016 and by $13,000 
549.20 	in fiscal year 2017.

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

549.22
549.23	Subd. 8.Board of Nursing Home 
Administrators
 		3,742,000
		2,252,000
	
549.24 	Administrative Services Unit - Operating 
549.25 	Costs. Of this appropriation, $676,000 
549.26 	in fiscal year 2014 and $626,000 in 
549.27 	fiscal year 2015 are for operating costs 
549.28 	of the administrative services unit. The 
549.29 	administrative services unit may receive 
549.30 	and expend reimbursements for services 
549.31 	performed by other agencies.
549.32 	Administrative Services Unit - Volunteer 
549.33 	Health Care Provider Program. Of this 
549.34 	appropriation, $150,000 in fiscal year 2014 
549.35 	and $150,000 in fiscal year 2015 are to pay 
550.1 	for medical professional liability coverage 
550.2 	required under Minnesota Statutes, section 
550.3 	214.40.
550.4 	Administrative Services Unit - Contested 
550.5 	Cases and Other Legal Proceedings. Of 
550.6 	this appropriation, $200,000 in fiscal year 
550.7 	2014 and $200,000 in fiscal year 2015 are 
550.8 	for costs of contested case hearings and other 
550.9 	unanticipated costs of legal proceedings 
550.10 	involving health-related boards funded 
550.11 	under this section. Upon certification of a 
550.12 	health-related board to the administrative 
550.13 	services unit that the costs will be incurred 
550.14 	and that there is insufficient money available 
550.15 	to pay for the costs out of money currently 
550.16 	available to that board, the administrative 
550.17 	services unit is authorized to transfer money 
550.18 	from this appropriation to the board for 
550.19 	payment of those costs with the approval 
550.20 	of the commissioner of management and 
550.21 	budget. This appropriation does not cancel 
550.22 	and is available until expended.
550.23 	This appropriation includes $44,000 in 
550.24 	fiscal year 2014 for rulemaking. This is 
550.25 	a onetime appropriation. $1,441,000 in 
550.26 	fiscal year 2014 and $420,000 in fiscal year 
550.27 	2015 are for the development of a shared 
550.28 	disciplinary, regulatory, licensing, and 
550.29 	information management system. $391,000 
550.30 	in fiscal year 2014 is a onetime appropriation 
550.31 	for retirement costs in the health-related 
550.32 	boards. This funding may be transferred to 
550.33 	the health boards incurring retirement costs. 
550.34 	These funds are available either year of the 
550.35 	biennium.
551.1 	This appropriation includes $16,000 in fiscal 
551.2 	years 2014 and 2015 for evening security, 
551.3 	$2,000 in fiscal years 2014 and 2015 for a 
551.4 	state vehicle lease, and $18,000 in fiscal 
551.5 	years 2014 and 2015 for shared office space 
551.6 	and administrative support. $205,000 in 
551.7 	fiscal year 2014 and $221,000 in fiscal year 
551.8 	2015 are for shared information technology 
551.9 	services, equipment, and maintenance.
551.10 	The remaining balance of the state 
551.11 	government special revenue fund 
551.12 	appropriation in Laws 2011, First Special 
551.13 	Session chapter 9, article 10, section 8, 
551.14 	subdivision 8, for Board of Nursing Home 
551.15 	Administrators rulemaking, estimated to 
551.16 	be $44,000, is canceled, and the remaining 
551.17 	balance of the state government special 
551.18 	revenue fund appropriation in Laws 2011, 
551.19 	First Special Session chapter 9, article 10, 
551.20 	section 8, subdivision 8, for electronic 
551.21 	licensing system adaptors, estimated to be 
551.22 	$761,000, and for the development and 
551.23 	implementation of a disciplinary, regulatory, 
551.24 	licensing, and information management 
551.25 	system, estimated to be $1,100,000, are 
551.26 	canceled. This paragraph is effective the day 
551.27 	following final enactment.
551.28 	Base Adjustment. The base is decreased by 
551.29 	$370,000 in fiscal years 2016 and 2017.

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

551.31 	Sec. 11. Laws 2013, chapter 108, article 14, section 12, is amended to read:
551.32 	Sec. 12. APPROPRIATION ADJUSTMENTS.
 551.33 	(a) The general fund appropriation in section 2, subdivision 5, paragraph (g), 
551.34 	includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015; 
552.1 	$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical 
552.2 	assistance eligibility and administration changes related to:
552.3 	(1) eligibility for children age two to 18 with income up to 275 percent of the federal 
552.4 	poverty guidelines;
552.5 	(2) eligibility for pregnant women with income up to 275 percent of the federal 
552.6 	poverty guidelines;
552.7 	(3) Affordable Care Act enrollment and renewal processes, including elimination 
552.8 	of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes 
552.9 	in verification requirements, and other changes in the eligibility determination and 
552.10 	enrollment and renewal process;
552.11 	(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
552.12 	(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
552.13 	(6) presumptive eligibility determinations by hospitals.
552.14 	(b) the commissioner of human services shall determine the difference between the 
552.15 	actual or forecasted estimated  costs to the medical assistance program attributable to 
552.16 	the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a), 
552.17 	clauses (1) to (6), that were estimated during the 2013 legislative session based on data 
552.18 	from the 2013 February forecast. The costs in this paragraph must be calculated between 
552.19 	January 1, 2014, and June 30, 2017.
552.20 	(c) For each fiscal year from 2014 to 2017, the commissioner of human services 
552.21 	shall certify the actual or forecasted estimated  cost differences to the medical assistance 
552.22 	program determined under paragraph (b), and report the difference in costs to the 
552.23 	commissioner of management and budget at least four weeks prior to a forecast under 
552.24 	Minnesota Statutes, section 16A.103. No later than three weeks before the release of 
552.25 	the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section 
552.26 	16A.103, prepared by the commissioner of management and budget shall reduce include 
552.27 	actual or estimated adjustments to  the health care access fund appropriation in section 
552.28 	2, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
552.29 	according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost 
552.30 	differences determined under paragraph (b) is positive, no adjustment shall be made to the 
552.31 	health care access fund appropriation. If for any fiscal year, the amount of the cumulative 
552.32 	cost differences determined under paragraph (b) is less than the original appropriation, the 
552.33 	appropriation for that fiscal year is zero.
552.34 	(d) For each fiscal year from 2014 to 2017, the commissioner of management and 
552.35 	budget must adjust the health care access fund appropriation by the cumulative difference 
552.36 	in costs reported by the commissioner of human services under paragraph (b). If, for any 
553.1 	fiscal year, the amount of the cumulative difference in costs determined under paragraph 
553.2 	(b) is positive, no adjustment shall be made to the health care access fund appropriation.
553.3 	(e) This section expires on January 1, 2018.

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

553.5 	Sec. 12. DEDICATED FUNDS REPORT.
 553.6 	By October 1, 2014, and with each February forecast thereafter, the commissioner of 
553.7 	human services must provide to the chairs and ranking minority members of the house of 
553.8 	representatives and senate committees with jurisdiction over health and human services 
553.9 	finance a report of all dedicated funds and accounts. The report must include the name 
553.10 	of the dedicated fund or account; a description of its purpose, and the legal citation for 
553.11 	its creation; the beginning balance, projected receipts, and expenditures; and the ending 
553.12 	balance for each fund and account. This section shall not expire.

553.13 	Sec. 13. EXPIRATION OF UNCODIFIED LANGUAGE.
 553.14 	All uncodified language in this article expires on June 30, 2015, unless a different 
553.15 	expiration date is specified.

553.16 	ARTICLE 31
553.17 	HUMAN SERVICES FORECAST ADJUSTMENTS

553.18	Section 1. HUMAN SERVICES APPROPRIATION.
 	
553.19 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
553.20 	in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article 
553.21 	14, from the general fund or any fund named to the Department of Human Services for 
553.22 	the purposes specified in this article, to be available for the fiscal year indicated for each 
553.23 	purpose. The figures "2014" and "2015" used in this article mean that the appropriations 
553.24 	listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015, 
553.25 	respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. 
553.26 	"The biennium" is fiscal years 2014 and 2015.

553.27				APPROPRIATIONS
	
553.28				Available for the Year
	
553.29				Ending June 30
	
553.30					2014
		2015

553.31
553.32	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

554.1	Subdivision 1.Total Appropriation
 	$
	(196,275,000)
	$
	64,288,000

554.2	Appropriations by Fund
	
554.3	General Fund
	(152,845,000)
	(25,282,000)
	
554.4
554.5	Health Care Access 
Fund
	(36,533,000)
	 91,294,000
	
554.6	Federal TANF
	(6,897,000)
	(1,724,000)

554.7	Subd. 2.Forecasted Programs

554.8	(a) MFIP/DWP

554.9	Appropriations by Fund
	
554.10	General Fund
	 3,571,000
	173,000
	
554.11	Federal TANF
	(6,475,000)
	(1,298,000)

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

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

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

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

554.16	(f) MinnesotaCare
		(34,838,000)
		 96,340,000
	
554.17 	These appropriations are from the health care 
554.18 	access fund.

554.19	(g) Medical Assistance

554.20	Appropriations by Fund
	
554.21	General Fund
	(149,494,000)
	(27,075,000)
	
554.22
554.23	Health Care Access 
Fund
	(1,695,000)
	(5,046,000)

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

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

554.26	Subd. 3.Technical Activities
 		(422,000)
		(426,000)
	
554.27 	These appropriations are from the federal 
554.28 	TANF fund.

554.29 	Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

554.30
554.31	Subdivision 1.Total Appropriation
 	$
	6,438,485,000
 6,437,815,000
	$
	6,457,117,000
 6,456,311,000

555.1	Appropriations by Fund
	
555.2		2014
	2015
	
555.3
555.4	General
	5,654,765,000
 5,654,095,000
	5,677,458,000
 5,676,652,000
	
555.5
555.6	State Government 
Special Revenue
	4,099,000
	4,510,000
	
555.7	Health Care Access
	519,816,000
	518,446,000
	
555.8	Federal TANF
	257,915,000
	254,813,000
	
555.9	Lottery Prize Fund
	1,890,000
	1,890,000
	
555.10 	Receipts for Systems Projects. 
555.11 	Appropriations and federal receipts for 
555.12 	information systems projects for MAXIS, 
555.13 	PRISM, MMIS, and SSIS must be deposited 
555.14 	in the state system account authorized 
555.15 	in Minnesota Statutes, section 256.014. 
555.16 	Money appropriated for computer projects 
555.17 	approved by the commissioner of Minnesota 
555.18 	information technology services, funded 
555.19 	by the legislature, and approved by the 
555.20 	commissioner of management and budget, 
555.21 	may be transferred from one project to 
555.22 	another and from development to operations 
555.23 	as the commissioner of human services 
555.24 	considers necessary. Any unexpended 
555.25 	balance in the appropriation for these 
555.26 	projects does not cancel but is available for 
555.27 	ongoing development and operations.
555.28 	Nonfederal Share Transfers. The 
555.29 	nonfederal share of activities for which 
555.30 	federal administrative reimbursement is 
555.31 	appropriated to the commissioner may be 
555.32 	transferred to the special revenue fund.
555.33 	ARRA Supplemental Nutrition Assistance 
555.34 	Benefit Increases. The funds provided for 
555.35 	food support benefit increases under the 
555.36 	Supplemental Nutrition Assistance Program 
555.37 	provisions of the American Recovery and 
556.1 	Reinvestment Act (ARRA) of 2009 must be 
556.2 	used for benefit increases beginning July 1, 
556.3 	2009.
556.4 	Supplemental Nutrition Assistance 
556.5 	Program Employment and Training. 
556.6 	(1) Notwithstanding Minnesota Statutes, 
556.7 	sections 256D.051, subdivisions 1a, 6b, 
556.8 	and 6c, and 256J.626, federal Supplemental 
556.9 	Nutrition Assistance employment and 
556.10 	training funds received as reimbursement of 
556.11 	MFIP consolidated fund grant expenditures 
556.12 	for diversionary work program participants 
556.13 	and child care assistance program 
556.14 	expenditures must be deposited in the general 
556.15 	fund. The amount of funds must be limited to 
556.16 	$4,900,000 per year in fiscal years 2014 and 
556.17 	2015, and to $4,400,000 per year in fiscal 
556.18 	years 2016 and 2017, contingent on approval 
556.19 	by the federal Food and Nutrition Service.
556.20 	(2) Consistent with the receipt of the federal 
556.21 	funds, the commissioner may adjust the 
556.22 	level of working family credit expenditures 
556.23 	claimed as TANF maintenance of effort. 
556.24 	Notwithstanding any contrary provision in 
556.25 	this article, this rider expires June 30, 2017.
556.26 	TANF Maintenance of Effort. (a) In order 
556.27 	to meet the basic maintenance of effort 
556.28 	(MOE) requirements of the TANF block grant 
556.29 	specified under Code of Federal Regulations, 
556.30 	title 45, section 263.1, the commissioner may 
556.31 	only report nonfederal money expended for 
556.32 	allowable activities listed in the following 
556.33 	clauses as TANF/MOE expenditures:
557.1 	(1) MFIP cash, diversionary work program, 
557.2 	and food assistance benefits under Minnesota 
557.3 	Statutes, chapter 256J;
557.4 	(2) the child care assistance programs 
557.5 	under Minnesota Statutes, sections 119B.03
557.6 	and 119B.05, and county child care 
557.7 	administrative costs under Minnesota 
557.8 	Statutes, section 119B.15;
557.9 	(3) state and county MFIP administrative 
557.10 	costs under Minnesota Statutes, chapters 
557.11 	256J and 256K;
557.12 	(4) state, county, and tribal MFIP 
557.13 	employment services under Minnesota 
557.14 	Statutes, chapters 256J and 256K;
557.15 	(5) expenditures made on behalf of legal 
557.16 	noncitizen MFIP recipients who qualify for 
557.17 	the MinnesotaCare program under Minnesota 
557.18 	Statutes, chapter 256L;
557.19 	(6) qualifying working family credit 
557.20 	expenditures under Minnesota Statutes, 
557.21 	section 290.0671;
557.22 	(7) qualifying Minnesota education credit 
557.23 	expenditures under Minnesota Statutes, 
557.24 	section 290.0674; and
557.25 	(8) qualifying Head Start expenditures under 
557.26 	Minnesota Statutes, section 119A.50.
557.27 	(b) The commissioner shall ensure that 
557.28 	sufficient qualified nonfederal expenditures 
557.29 	are made each year to meet the state's 
557.30 	TANF/MOE requirements. For the activities 
557.31 	listed in paragraph (a), clauses (2) to 
557.32 	(8), the commissioner may only report 
557.33 	expenditures that are excluded from the 
558.1 	definition of assistance under Code of 
558.2 	Federal Regulations, title 45, section 260.31.
558.3 	(c) For fiscal years beginning with state fiscal 
558.4 	year 2003, the commissioner shall ensure 
558.5 	that the maintenance of effort used by the 
558.6 	commissioner of management and budget 
558.7 	for the February and November forecasts 
558.8 	required under Minnesota Statutes, section 
558.9 	16A.103, contains expenditures under 
558.10 	paragraph (a), clause (1), equal to at least 16 
558.11 	percent of the total required under Code of 
558.12 	Federal Regulations, title 45, section 263.1.
558.13 	(d) The requirement in Minnesota Statutes, 
558.14 	section 256.011, subdivision 3, that federal 
558.15 	grants or aids secured or obtained under that 
558.16 	subdivision be used to reduce any direct 
558.17 	appropriations provided by law, do not apply 
558.18 	if the grants or aids are federal TANF funds.
558.19 	(e) For the federal fiscal years beginning on 
558.20 	or after October 1, 2007, the commissioner 
558.21 	may not claim an amount of TANF/MOE in 
558.22 	excess of the 75 percent standard in Code 
558.23 	of Federal Regulations, title 45, section 
558.24 	263.1(a)(2), except:
558.25 	(1) to the extent necessary to meet the 80 
558.26 	percent standard under Code of Federal 
558.27 	Regulations, title 45, section 263.1(a)(1), 
558.28 	if it is determined by the commissioner 
558.29 	that the state will not meet the TANF work 
558.30 	participation target rate for the current year;
558.31 	(2) to provide any additional amounts 
558.32 	under Code of Federal Regulations, title 45, 
558.33 	section 264.5, that relate to replacement of 
558.34 	TANF funds due to the operation of TANF 
558.35 	penalties; and
559.1 	(3) to provide any additional amounts that 
559.2 	may contribute to avoiding or reducing 
559.3 	TANF work participation penalties through 
559.4 	the operation of the excess MOE provisions 
559.5 	of Code of Federal Regulations, title 45, 
559.6 	section 261.43 (a)(2).
559.7 	For the purposes of clauses (1) to (3), 
559.8 	the commissioner may supplement the 
559.9 	MOE claim with working family credit 
559.10 	expenditures or other qualified expenditures 
559.11 	to the extent such expenditures are otherwise 
559.12 	available after considering the expenditures 
559.13 	allowed in this subdivision and subdivisions 
559.14 	2 and 3.
559.15 	(f) Notwithstanding any contrary provision 
559.16 	in this article, paragraphs (a) to (e) expire 
559.17 	June 30, 2017.
559.18 	Working Family Credit Expenditures 
559.19 	as TANF/MOE. The commissioner may 
559.20 	claim as TANF maintenance of effort up to 
559.21 	$6,707,000 per year of working family credit 
559.22 	expenditures in each fiscal year.

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

559.24 	Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by 
559.25 	Laws 2013, chapter 144, section 24, is amended to read:

559.26	Subd. 4.Central Office
 					
559.27 	The amounts that may be spent from this 
559.28 	appropriation for each purpose are as follows:

559.29	(a) Operations

559.30	Appropriations by Fund
	
559.31	General
	101,979,000
	96,858,000
	
559.32
559.33	State Government 
Special Revenue
	3,974,000
	4,385,000
	
560.1	Health Care Access
	13,177,000
	13,004,000
	
560.2	Federal TANF
	100,000
	100,000
	
560.3 	DHS Receipt Center Accounting. The 
560.4 	commissioner is authorized to transfer 
560.5 	appropriations to, and account for DHS 
560.6 	receipt center operations in, the special 
560.7 	revenue fund.
560.8 	Administrative Recovery; Set-Aside. The 
560.9 	commissioner may invoice local entities 
560.10 	through the SWIFT accounting system as an 
560.11 	alternative means to recover the actual cost 
560.12 	of administering the following provisions:
560.13 	(1) Minnesota Statutes, section 125A.744, 
560.14 	subdivision 3;
560.15 	(2) Minnesota Statutes, section 245.495, 
560.16 	paragraph (b);
560.17 	(3) Minnesota Statutes, section 256B.0625, 
560.18 	subdivision 20, paragraph (k);
560.19 	(4) Minnesota Statutes, section 256B.0924, 
560.20 	subdivision 6, paragraph (g);
560.21 	(5) Minnesota Statutes, section 256B.0945, 
560.22 	subdivision 4, paragraph (d); and
560.23 	(6) Minnesota Statutes, section 256F.10, 
560.24 	subdivision 6, paragraph (b).
560.25 	Systems Modernization. The following 
560.26 	amounts are appropriated for transfer to 
560.27 	the state systems account authorized in 
560.28 	Minnesota Statutes, section 256.014:
560.29 	(1) $1,825,000 in fiscal year 2014 and 
560.30 	$2,502,000 in fiscal year 2015 is for the 
560.31 	state share of Medicaid-allocated costs of 
560.32 	the health insurance exchange information 
560.33 	technology and operational structure. The 
561.1 	funding base is $3,222,000 in fiscal year 2016 
561.2 	and $3,037,000 in fiscal year 2017 but shall 
561.3 	not be included in the base thereafter; and
561.4 	(2) $9,344,000 in fiscal year 2014 and 
561.5 	$3,660,000 in fiscal year 2015 are for the 
561.6 	modernization and streamlining of agency 
561.7 	eligibility and child support systems. The 
561.8 	funding base is $5,921,000 in fiscal year 
561.9 	2016 and $1,792,000 in fiscal year 2017 but 
561.10 	shall not be included in the base thereafter.
561.11 	The unexpended balance of the $9,344,000 
561.12 	appropriation in fiscal year 2014 and the 
561.13 	$3,660,000 appropriation in fiscal year 2015 
561.14 	must be transferred from the Department of 
561.15 	Human Services state systems account to 
561.16 	the Office of Enterprise Technology when 
561.17 	the Office of Enterprise Technology has 
561.18 	negotiated a federally approved internal 
561.19 	service fund rates and billing process with 
561.20 	sufficient internal accounting controls to 
561.21 	properly maximize federal reimbursement 
561.22 	to Minnesota for human services system 
561.23 	modernization projects, but not later than 
561.24 	June 30, 2015.
561.25 	If contingent funding is fully or partially 
561.26 	disbursed under article 15, section 3, and 
561.27 	transferred to the state systems account, the 
561.28 	unexpended balance of that appropriation 
561.29 	must be transferred to the Office of Enterprise 
561.30 	Technology in accordance with this clause. 
561.31 	Contingent funding must not exceed 
561.32 	$11,598,000 for the biennium.
561.33 	Base Adjustment. The general fund base 
561.34 	is increased by $2,868,000 in fiscal year 
561.35 	2016 and decreased by $1,206,000 in fiscal 
562.1 	year 2017. The health access fund base is 
562.2 	decreased by $551,000 in fiscal years 2016 
562.3 	and 2017. The state government special 
562.4 	revenue fund base is increased by $4,000 in 
562.5 	fiscal year 2016 and decreased by $236,000 
562.6 	in fiscal year 2017.

562.7	(b) Children and Families

562.8	Appropriations by Fund
	
562.9	General
	8,023,000
	8,015,000
	
562.10	Federal TANF
	2,282,000
	2,282,000
	
562.11 	Financial Institution Data Match and 
562.12 	Payment of Fees. The commissioner is 
562.13 	authorized to allocate up to $310,000 each 
562.14 	year in fiscal years 2014 and 2015 from the 
562.15 	PRISM special revenue account to make 
562.16 	payments to financial institutions in exchange 
562.17 	for performing data matches between account 
562.18 	information held by financial institutions 
562.19 	and the public authority's database of child 
562.20 	support obligors as authorized by Minnesota 
562.21 	Statutes, section 13B.06, subdivision 7.
562.22 	Base Adjustment. The general fund base is 
562.23 	decreased by $300,000 in fiscal years 2016 
562.24 	and 2017. The TANF fund base is increased 
562.25 	by $300,000 in fiscal years 2016 and 2017.

562.26	(c) Health Care

562.27	Appropriations by Fund
	
562.28	General
	14,028,000
	13,826,000
	
562.29	Health Care Access
	28,442,000
	31,137,000
	
562.30 	Base Adjustment. The general fund base 
562.31 	is decreased by $86,000 in fiscal year 2016 
562.32 	and by $86,000 in fiscal year 2017. The 
562.33 	health care access fund base is increased 
562.34 	by $6,954,000 in fiscal year 2016 and by 
562.35 	$5,489,000 in fiscal year 2017.

563.1	(d) Continuing Care

563.2	Appropriations by Fund
	
563.3	General
	20,993,000
	22,359,000
	
563.4
563.5	State Government 
Special Revenue
	125,000
	125,000
	
563.6 	Base Adjustment. The general fund base is 
563.7 	increased by $1,690,000 in fiscal year 2016 
563.8 	and by $798,000 in fiscal year 2017.

563.9	(e) Chemical and Mental Health

563.10	Appropriations by Fund
	
563.11
563.12	General
	4,639,000
 4,571,000
	4,490,000
 4,431,000
	
563.13	Lottery Prize Fund
	157,000
	157,000
	
563.14 	Of the general fund appropriation, $68,000 
563.15 	in fiscal year 2014 and $59,000 in fiscal year 
563.16 	2015 are for compulsive gambling treatment 
563.17 	under Minnesota Statutes, section 297E.02, 
563.18 	subdivision 3, paragraph (c).

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

563.20 	Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by 
563.21 	Laws 2013, chapter 144, section 25, is amended to read:

563.22	Subd. 6.Grant Programs
 					
563.23 	The amounts that may be spent from this 
563.24 	appropriation for each purpose are as follows:

563.25	(a) Support Services Grants

563.26	Appropriations by Fund
	
563.27	General
	8,915,000
	13,333,000
	
563.28	Federal TANF
	94,611,000
	94,611,000
	
563.29 	Paid Work Experience. $2,168,000 
563.30 	each year in fiscal years 2015 and 2016 
563.31 	is from the general fund for paid work 
563.32 	experience for long-term MFIP recipients. 
563.33 	Paid work includes full and partial wage 
564.1 	subsidies and other related services such as 
564.2 	job development, marketing, preworksite 
564.3 	training, job coaching, and postplacement 
564.4 	services. These are onetime appropriations. 
564.5 	Unexpended funds for fiscal year 2015 do not 
564.6 	cancel, but are available to the commissioner 
564.7 	for this purpose in fiscal year 2016.
564.8 	Work Study Funding for MFIP 
564.9 	Participants. $250,000 each year in fiscal 
564.10 	years 2015 and 2016 is from the general fund 
564.11 	to pilot work study jobs for MFIP recipients 
564.12 	in approved postsecondary education 
564.13 	programs. This is a onetime appropriation. 
564.14 	Unexpended funds for fiscal year 2015 do 
564.15 	not cancel, but are available for this purpose 
564.16 	in fiscal year 2016.
564.17 	Local Strategies to Reduce Disparities.
564.18 	$2,000,000 each year in fiscal years 2015 
564.19 	and 2016 is from the general fund for 
564.20 	local projects that focus on services for 
564.21 	subgroups within the MFIP caseload 
564.22 	who are experiencing poor employment 
564.23 	outcomes. These are onetime appropriations. 
564.24 	Unexpended funds for fiscal year 2015 do not 
564.25 	cancel, but are available to the commissioner 
564.26 	for this purpose in fiscal year 2016.
564.27 	Home Visiting Collaborations for MFIP 
564.28 	Teen Parents. $200,000 per year in fiscal 
564.29 	years 2014 and 2015 is from the general fund 
564.30 	and $200,000 in fiscal year 2016 is from the 
564.31 	federal TANF fund for technical assistance 
564.32 	and training to support local collaborations 
564.33 	that provide home visiting services for 
564.34 	MFIP teen parents. The general fund 
565.1 	appropriation is onetime. The federal TANF 
565.2 	fund appropriation is added to the base.
565.3 	Performance Bonus Funds for Counties.
565.4 	The TANF fund base is increased by 
565.5 	$1,500,000 each year in fiscal years 2016 
565.6 	and 2017. The commissioner must allocate 
565.7 	this amount each year to counties that exceed 
565.8 	their expected range of performance on the 
565.9 	annualized three-year self-support index 
565.10 	as defined in Minnesota Statutes, section 
565.11 	256J.751, subdivision 2, clause (6). This is a 
565.12 	permanent base adjustment. Notwithstanding 
565.13 	any contrary provisions in this article, this 
565.14 	provision expires June 30, 2016.
565.15 	Base Adjustment. The general fund base is 
565.16 	decreased by $200,000 in fiscal year 2016 
565.17 	and $4,618,000 in fiscal year 2017. The 
565.18 	TANF fund base is increased by $1,700,000 
565.19 	in fiscal years 2016 and 2017.

565.20
565.21	(b) Basic Sliding Fee Child Care Assistance 
Grants
		36,836,000
		42,318,000
	
565.22 	Base Adjustment. The general fund base is 
565.23 	increased by $3,778,000 in fiscal year 2016 
565.24 	and by $3,849,000 in fiscal year 2017.

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

565.26	(d) Child Support Enforcement Grants
		50,000
		50,000
	
565.27 	Federal Child Support Demonstration 
565.28 	Grants. Federal administrative 
565.29 	reimbursement resulting from the federal 
565.30 	child support grant expenditures authorized 
565.31 	under United States Code, title 42, section 
565.32 	1315, is appropriated to the commissioner 
565.33 	for this activity.

565.34	(e) Children's Services Grants

566.1	Appropriations by Fund
	
566.2	General
	49,760,000
	52,961,000
	
566.3	Federal TANF
	140,000
	140,000
	
566.4 	Adoption Assistance and Relative Custody 
566.5 	Assistance. $37,453,000 in fiscal year 2014 
566.6 	and $37,453,000 in fiscal year 2015 is for 
566.7 	the adoption assistance and relative custody 
566.8 	assistance programs. The commissioner 
566.9 	shall determine with the commissioner of 
566.10 	Minnesota Management and Budget the 
566.11 	appropriation for Northstar Care for Children 
566.12 	effective January 1, 2015. The commissioner 
566.13 	may transfer appropriations for adoption 
566.14 	assistance, relative custody assistance, and 
566.15 	Northstar Care for Children between fiscal 
566.16 	years and among programs to adjust for 
566.17 	transfers across the programs.
566.18 	Title IV-E Adoption Assistance. Additional 
566.19 	federal reimbursements to the state as a result 
566.20 	of the Fostering Connections to Success 
566.21 	and Increasing Adoptions Act's expanded 
566.22 	eligibility for Title IV-E adoption assistance 
566.23 	are appropriated for postadoption services, 
566.24 	including a parent-to-parent support network.
566.25 	Privatized Adoption Grants. Federal 
566.26 	reimbursement for privatized adoption grant 
566.27 	and foster care recruitment grant expenditures 
566.28 	is appropriated to the commissioner for 
566.29 	adoption grants and foster care and adoption 
566.30 	administrative purposes.
566.31 	Adoption Assistance Incentive Grants.
566.32 	Federal funds available during fiscal years 
566.33 	2014 and 2015 for adoption incentive grants 
566.34 	are appropriated for postadoption services, 
566.35 	including a parent-to-parent support network.
567.1 	Base Adjustment. The general fund base is 
567.2 	increased by $5,913,000 in fiscal year 2016 
567.3 	and by $10,297,000 in fiscal year 2017.

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

567.5	(g) Child and Economic Support Grants
		21,047,000
		20,848,000
	
567.6 	Minnesota Food Assistance Program. 
567.7 	Unexpended funds for the Minnesota food 
567.8 	assistance program for fiscal year 2014 do 
567.9 	not cancel but are available for this purpose 
567.10 	in fiscal year 2015.
567.11 	Transitional Housing. $250,000 each year 
567.12 	is for the transitional housing programs under 
567.13 	Minnesota Statutes, section 256E.33.
567.14 	Emergency Services. $250,000 each year 
567.15 	is for emergency services grants under 
567.16 	Minnesota Statutes, section 256E.36.
567.17 	Family Assets for Independence. $250,000 
567.18 	each year is for the Family Assets for 
567.19 	Independence Minnesota program. This 
567.20 	appropriation is available in either year of the 
567.21 	biennium and may be transferred between 
567.22 	fiscal years.
567.23 	Food Shelf Programs. $375,000 in fiscal 
567.24 	year 2014 and $375,000 in fiscal year 
567.25 	2015 are for food shelf programs under 
567.26 	Minnesota Statutes, section 256E.34. If the 
567.27 	appropriation for either year is insufficient, 
567.28 	the appropriation for the other year is 
567.29 	available for it. Notwithstanding Minnesota 
567.30 	Statutes, section 256E.34, subdivision 4, no 
567.31 	portion of this appropriation may be used 
567.32 	by Hunger Solutions for its administrative 
567.33 	expenses, including but not limited to rent 
567.34 	and salaries.
568.1 	Homeless Youth Act. $2,000,000 in fiscal 
568.2 	year 2014 and $2,000,000 in fiscal year 2015 
568.3 	is for purposes of Minnesota Statutes, section 
568.4 	256K.45.
568.5 	Safe Harbor Shelter and Housing. 
568.6 	$500,000 in fiscal year 2014 and $500,000 in 
568.7 	fiscal year 2015 is for a safe harbor shelter 
568.8 	and housing fund for housing and supportive 
568.9 	services for youth who are sexually exploited. 

568.10	(h) Health Care Grants

568.11	Appropriations by Fund
	
568.12	General
	190,000
	190,000
	
568.13	Health Care Access
	190,000
	190,000
	
568.14 	Emergency Medical Assistance Referral 
568.15 	and Assistance Grants. (a) The 
568.16 	commissioner of human services shall 
568.17 	award grants to nonprofit programs that 
568.18 	provide immigration legal services based 
568.19 	on indigency to provide legal services for 
568.20 	immigration assistance to individuals with 
568.21 	emergency medical conditions or complex 
568.22 	and chronic health conditions who are not 
568.23 	currently eligible for medical assistance 
568.24 	or other public health care programs, but 
568.25 	who may meet eligibility requirements with 
568.26 	immigration assistance.
568.27 	(b) The grantees, in collaboration with 
568.28 	hospitals and safety net providers, shall 
568.29 	provide referral assistance to connect 
568.30 	individuals identified in paragraph (a) with 
568.31 	alternative resources and services to assist in 
568.32 	meeting their health care needs. $100,000 
568.33 	is appropriated in fiscal year 2014 and 
568.34 	$100,000 in fiscal year 2015. This is a 
568.35 	onetime appropriation.
569.1 	Base Adjustment. The general fund is 
569.2 	decreased by $100,000 in fiscal year 2016 
569.3 	and $100,000 in fiscal year 2017.

569.4	(i) Aging and Adult Services Grants
		14,827,000
		15,010,000
	
569.5 	Base Adjustment. The general fund is 
569.6 	increased by $1,150,000 in fiscal year 2016 
569.7 	and $1,151,000 in fiscal year 2017.
569.8 	Community Service Development 
569.9 	Grants and Community Services Grants.
569.10 	Community service development grants and 
569.11 	community services grants are reduced by 
569.12 	$1,150,000 each year. This is a onetime 
569.13 	reduction.

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

569.15	(k) Disabilities Grants
		18,605,000
		18,823,000
	
569.16 	Advocating Change Together. $310,000 in 
569.17 	fiscal year 2014 is for a grant to Advocating 
569.18 	Change Together (ACT) to maintain and 
569.19 	promote services for persons with intellectual 
569.20 	and developmental disabilities throughout 
569.21 	the state. This appropriation is onetime. Of 
569.22 	this appropriation:
569.23 	(1) $120,000 is for direct costs associated 
569.24 	with the delivery and evaluation of 
569.25 	peer-to-peer training programs administered 
569.26 	throughout the state, focusing on education, 
569.27 	employment, housing, transportation, and 
569.28 	voting;
569.29 	(2) $100,000 is for delivery of statewide 
569.30 	conferences focusing on leadership and 
569.31 	skill development within the disability 
569.32 	community; and
569.33 	(3) $90,000 is for administrative and general 
569.34 	operating costs associated with managing 
570.1 	or maintaining facilities, program delivery, 
570.2 	staff, and technology.
570.3 	Base Adjustment. The general fund base 
570.4 	is increased by $535,000 in fiscal year 2016 
570.5 	and by $709,000 in fiscal year 2017.

570.6	(l) Adult Mental Health Grants

570.7	Appropriations by Fund
	
570.8
570.9	General
	71,199,000
 70,597,000
	69,530,000
 68,783,000
	
570.10	Health Care Access
	750,000
	750,000
	
570.11	Lottery Prize
	1,733,000
	1,733,000
	
570.12 	Compulsive Gambling Treatment. Of the 
570.13 	general fund appropriation, $602,000 in 
570.14 	fiscal year 2014 and $747,000 in fiscal year 
570.15 	2015 are for compulsive gambling treatment 
570.16 	under Minnesota Statutes, section 297E.02, 
570.17 	subdivision 3, paragraph (c).
570.18 	Problem Gambling. $225,000 in fiscal year 
570.19 	2014 and $225,000 in fiscal year 2015 is 
570.20 	appropriated from the lottery prize fund for a 
570.21 	grant to the state affiliate recognized by the 
570.22 	National Council on Problem Gambling. The 
570.23 	affiliate must provide services to increase 
570.24 	public awareness of problem gambling, 
570.25 	education and training for individuals and 
570.26 	organizations providing effective treatment 
570.27 	services to problem gamblers and their 
570.28 	families, and research relating to problem 
570.29 	gambling. 
570.30 	Funding Usage. Up to 75 percent of a fiscal 
570.31 	year's appropriations for adult mental health 
570.32 	grants may be used to fund allocations in that 
570.33 	portion of the fiscal year ending December 
570.34 	31.
571.1 	Base Adjustment. The general fund base is 
571.2 	decreased by $4,427,000 $4,441,000  in fiscal 
571.3 	years 2016 and 2017.
571.4 	Mental Health Pilot Project. $230,000 
571.5 	each year is for a grant to the Zumbro 
571.6 	Valley Mental Health Center. The grant 
571.7 	shall be used to implement a pilot project 
571.8 	to test an integrated behavioral health care 
571.9 	coordination model. The grant recipient must 
571.10 	report measurable outcomes and savings 
571.11 	to the commissioner of human services 
571.12 	by January 15, 2016. This is a onetime 
571.13 	appropriation.
571.14 	High-risk adults. $200,000 in fiscal 
571.15 	year 2014 is for a grant to the nonprofit 
571.16 	organization selected to administer the 
571.17 	demonstration project for high-risk adults 
571.18 	under Laws 2007, chapter 54, article 1, 
571.19 	section 19, in order to complete the project. 
571.20 	This is a onetime appropriation.

571.21	(m) Child Mental Health Grants
		18,246,000
		20,636,000
	
571.22 	Text Message Suicide Prevention 
571.23 	Program. $625,000 in fiscal year 2014 and 
571.24 	$625,000 in fiscal year 2015 is for a grant 
571.25 	to a nonprofit organization to establish and 
571.26 	implement a statewide text message suicide 
571.27 	prevention program. The program shall 
571.28 	implement a suicide prevention counseling 
571.29 	text line designed to use text messaging to 
571.30 	connect with crisis counselors and to obtain 
571.31 	emergency information and referrals to 
571.32 	local resources in the local community. The 
571.33 	program shall include training within schools 
571.34 	and communities to encourage the use of the 
571.35 	program.
572.1 	Mental Health First Aid Training. $22,000 
572.2 	in fiscal year 2014 and $23,000 in fiscal 
572.3 	year 2015 is to train teachers, social service 
572.4 	personnel, law enforcement, and others who 
572.5 	come into contact with children with mental 
572.6 	illnesses, in children and adolescents mental 
572.7 	health first aid training.
572.8 	Funding Usage. Up to 75 percent of a fiscal 
572.9 	year's appropriation for child mental health 
572.10 	grants may be used to fund allocations in that 
572.11 	portion of the fiscal year ending December 
572.12 	31.

572.13	(n) CD Treatment Support Grants
		1,816,000
		1,816,000
	
572.14 	SBIRT Training. (1) $300,000 each year is 
572.15 	for grants to train primary care clinicians to 
572.16 	provide substance abuse brief intervention 
572.17 	and referral to treatment (SBIRT). This is a 
572.18 	onetime appropriation. The commissioner of 
572.19 	human services shall apply to SAMHSA for 
572.20 	an SBIRT professional training grant.
572.21 	(2) If the commissioner of human services 
572.22 	receives a grant under clause (1) funds 
572.23 	appropriated under this clause, equal to 
572.24 	the grant amount, up to the available 
572.25 	appropriation, shall be transferred to the 
572.26 	Minnesota Organization on Fetal Alcohol 
572.27 	Syndrome (MOFAS). MOFAS must use 
572.28 	the funds for grants. Grant recipients must 
572.29 	be selected from communities that are 
572.30 	not currently served by federal Substance 
572.31 	Abuse Prevention and Treatment Block 
572.32 	Grant funds. Grant money must be used to 
572.33 	reduce the rates of fetal alcohol syndrome 
572.34 	and fetal alcohol effects, and the number of 
572.35 	drug-exposed infants. Grant money may be 
573.1 	used for prevention and intervention services 
573.2 	and programs, including, but not limited to, 
573.3 	community grants, professional eduction, 
573.4 	public awareness, and diagnosis.
573.5 	Fetal Alcohol Syndrome Grant. $180,000 
573.6 	each year from the general fund is for a 
573.7 	grant to the Minnesota Organization on Fetal 
573.8 	Alcohol Syndrome (MOFAS) to support 
573.9 	nonprofit Fetal Alcohol Spectrum Disorders 
573.10 	(FASD) outreach prevention programs 
573.11 	in Olmsted County. This is a onetime 
573.12 	appropriation.
573.13 	Base Adjustment. The general fund base is 
573.14 	decreased by $480,000 in fiscal year 2016 
573.15 	and $480,000 in fiscal year 2017.

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

573.17 	Sec. 6. EFFECTIVE DATE.
 573.18 	Sections 1 and 2 are effective the day following final enactment.