Minnesota Legislature
HF 351
Conference Committee Report - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - Conference Committee Report
1.1 CONFERENCE COMMITTEE REPORT ON H.F. NO. 351 1.2 A bill for an act 1.3 relating to the operation of state government; crime 1.4 prevention and judiciary finance; appropriating money 1.5 for the judicial branch, public defense, human rights, 1.6 corrections, public safety, crime victims, and related 1.7 purposes; establishing and expanding grant programs, 1.8 task forces, and pilot projects; requiring reports and 1.9 studies; transferring, modifying, and expanding 1.10 responsibility for various governmental 1.11 responsibilities; providing procedures and policies 1.12 for integrated criminal justice information systems; 1.13 adopting various provisions relating to corrections; 1.14 imposing, clarifying, and expanding certain criminal 1.15 and civil provisions and penalties; regulating 1.16 dangerous dogs; providing for protection of public 1.17 safety in bail determinations; making certain changes 1.18 related to sex offenders and sex offender 1.19 registration; providing for state funding of certain 1.20 programs and personnel; abolishing the office of the 1.21 ombudsman for corrections; eliminating the Camp Ripley 1.22 weekend camp program; increasing certain fees and 1.23 modifying the allocation of certain fees; establishing 1.24 a theft prevention advisory board; establishing a 1.25 felony-level penalty for driving while impaired; 1.26 modifying certain policies and procedures relating to 1.27 domestic violence; making technical changes to the 1.28 driving while impaired laws; reforming and recodifying 1.29 the law relating to marriage dissolution, child 1.30 custody, child support, maintenance, and property 1.31 division; clarifying certain medical support bonus 1.32 incentive provisions; making style and form changes; 1.33 amending Minnesota Statutes 2000, sections 2.724, 1.34 subdivision 3; 8.16, subdivision 1; 13.87, by adding a 1.35 subdivision; 15A.083, subdivision 4; 169A.03, 1.36 subdivision 12, by adding subdivisions; 169A.20, 1.37 subdivision 3; 169A.25; 169A.26; 169A.27; 169A.275, 1.38 subdivisions 3, 5; 169A.277, subdivision 2; 169A.28, 1.39 subdivision 2; 169A.283, subdivision 1; 169A.37, 1.40 subdivision 1; 169A.40, subdivision 3; 169A.41, 1.41 subdivision 2; 169A.51, subdivision 7; 169A.54, 1.42 subdivision 6; 169A.60, subdivisions 1, 13, 14; 1.43 169A.63, subdivision 1; 171.09; 171.186, by adding a 1.44 subdivision; 171.29, subdivision 2; 171.30, 1.45 subdivision 1; 241.272, subdivision 6; 242.192; 2.1 243.166, subdivisions 1, 3, 4a, 6; 243.167, 2.2 subdivision 1; 243.51, subdivisions 1, 3; 256.9791; 2.3 299A.75, subdivision 1, by adding subdivisions; 2.4 299C.10, subdivision 1; 299C.11; 299C.147, subdivision 2.5 2; 299C.65, subdivisions 1, 2; 299F.058, subdivision 2.6 2; 343.20, by adding subdivisions; 343.21, 2.7 subdivisions 9, 10; 518.002; 518.003, subdivisions 1, 2.8 3; 518.005; 518.01; 518.02; 518.03; 518.04; 518.05; 2.9 518.055; 518.06; 518.07; 518.09; 518.10; 518.11; 2.10 518.12; 518.13; 518.131; 518.14, subdivision 1; 2.11 518.148; 518.155; 518.156; 518.157, subdivisions 1, 2, 2.12 3, 5, 6; 518.158, subdivisions 2, 4; 518.165; 518.166; 2.13 518.167, subdivisions 3, 4, 5; 518.168; 518.1705, 2.14 subdivision 6; 518.175, subdivisions 1, 1a, 2, 3, 5, 2.15 6, 7, 8; 518.1751, subdivisions 1b, 2, 2a, 2b, 2c, 3; 2.16 518.176; 518.177; 518.178; 518.179, subdivision 1; 2.17 518.18; 518.24; 518.25; 518.54, subdivisions 1, 5, 6, 2.18 7, 8; 518.55; 518.552; 518.58; 518.581; 518.582; 2.19 518.612; 518.619; 518.62; 518.64, subdivisions 1, 2; 2.20 518.641; 518.642; 518.646; 518.65; 518B.01, 2.21 subdivisions 2, 3, 6, 14; 609.02, by adding a 2.22 subdivision; 609.035, subdivision 2; 609.117; 609.224, 2.23 subdivisions 2, 4; 609.2242, subdivisions 2, 4; 2.24 609.343, subdivision 2; 609.487, subdivision 4; 2.25 609.495, subdivisions 1, 3; 609.521; 609.748, 2.26 subdivisions 6, 8; 609.749, subdivisions 4, 5; 611.23; 2.27 611.272; 611A.201, subdivision 2; 611A.32, by adding a 2.28 subdivision; 611A.74, subdivisions 1, 1a; 617.247, 2.29 subdivisions 3, 4; 626.55, subdivision 1; 629.471, 2.30 subdivision 2; 629.72; Laws 1996, chapter 408, article 2.31 2, section 16; proposing coding for new law in 2.32 Minnesota Statutes, chapters 8; 169A; 299A; 299C; 347; 2.33 518; 518B; 609; 626; proposing coding for new law as 2.34 Minnesota Statutes, chapters 517A; 517B; 517C; 2.35 repealing Minnesota Statutes 2000, sections 169A.275, 2.36 subdivision 4; 241.41; 241.42; 241.43; 241.44; 2.37 241.441; 241.45; 243.166, subdivision 10; 518.111; 2.38 518.17; 518.171; 518.185; 518.255; 518.54, 2.39 subdivisions 2, 4a, 13, 14; 518.551; 518.5513; 2.40 518.553; 518.57; 518.575; 518.585; 518.5851; 518.5852; 2.41 518.5853; 518.61; 518.6111; 518.614; 518.615; 518.616; 2.42 518.617; 518.618; 518.6195; 518.64, subdivisions 4, 2.43 4a, 5; 518.66; 609.2244, subdivision 4; 626.55, 2.44 subdivision 2. 2.45 February 20, 2002 2.46 The Honorable Steve Sviggum 2.47 Speaker of the House of Representatives 2.49 The Honorable Don Samuelson 2.50 President of the Senate 2.52 We, the undersigned conferees for H.F. No. 351, report that 2.53 we have agreed upon the items in dispute and recommend as 2.54 follows: 2.55 2.56 That the Senate recede from its amendments and that H.F. 2.57 No. 351 be further amended as follows: 2.58 Delete everything after the enacting clause and insert: 2.59 "ARTICLE 1 2.60 SUMMARY 3.1 (General Fund Only, After Forecast Adjustments) 3.2 BIENNIAL 3.3 2002 2003 TOTAL 3.4 APPROPRIATIONS 3.5 Early Education $ (100,000) $ (3,900,000) $ (4,000,000) 3.6 K-12 Education (4,979,000) (9,947,000) (14,926,000) 3.7 Higher Education (2,744,000) (47,256,000) (50,000,000) 3.8 Corrections (5,165,000) (11,489,000) (16,654,000) 3.9 Transportation 3.10 and Public Safety (2,018,000) (6,932,000) (8,950,000) 3.11 Environment and 3.12 Natural Resources (103,000) (12,797,000) (12,900,000) 3.13 Agriculture (469,000) (1,227,000) (1,696,000) 3.14 State Government (14,695,000) (30,005,000) (44,700,000) 3.15 Courts (1,592,000) (1,592,000) 3.16 Economic Development (1,899,000) (3,594,000) (5,943,000) 3.17 Health and 3.18 Human Services (1,386,000) (54,038,000) (55,424,000) 3.19 SUBTOTAL $ (33,558,000) $ (182,777,000)$ (216,335,000) 3.20 CANCELLATIONS (1,167,667,000) (108,000,000) (1,275,667,000) 3.21 TRANSFERS IN (84,168,000) (233,946,000) (318,114,000) 3.22 TOTAL $(1,285,393,000) $ (524,723,000)$(1,810,116,000) 3.23 ARTICLE 2 3.24 FAMILY AND EARLY CHILDHOOD EDUCATION 3.25 APPROPRIATION ADJUSTMENTS 3.26 Section 1. Laws 2000, chapter 489, article 1, section 36, 3.27 is amended to read: 3.28 Sec. 36. [MFIP SOCIAL SERVICES CHILD CARE SUNSET AND 3.29 REPORT.] 3.30 Minnesota Statutes, section 119B.05, subdivision 1, clause 3.31 (5), expires on June 30, 2003. MFIP social services child care 3.32 must be paid for with the appropriations under section 45, 3.33 subdivision 3. Priority must be given to mental health services 3.34 and chemical dependency services.Any amount that is not needed3.35for MFIP social services child care must be used for child care3.36assistance under Minnesota Statutes, section 119B.03.The 3.37 commissioner of children, families, and learning must notify the 3.38 chairs of the family and early childhood committees in the house 4.1 and the senate if expenditures for MFIP social services child 4.2 care are expected to exceed appropriations under section 45, 4.3 subdivision 3. The commissioner shall report to the legislature 4.4 by January 15, 2003, on the use of MFIP social services child 4.5 care with recommendations on the need for social services child 4.6 care and its effectiveness in promoting self-sufficiency. 4.7[EFFECTIVE DATE.] This section is effective the day 4.8 following final enactment. 4.9 Sec. 2. Laws 2001, First Special Session chapter 3, 4.10 article 1, section 17, subdivision 3, is amended to read: 4.11 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 4.12 childhood family education aid according to Minnesota Statutes, 4.13 section 124D.135: 4.14$20,758,000$20,725,000 ..... 2002 4.15$20,663,000$20,624,000 ..... 2003 4.16 The 2002 appropriation includes $2,036,000 for 2001 and 4.17$18,722,000$18,689,000 for 2002. 4.18 The 2003 appropriation includes$2,081,000$2,076,000 for 4.19 2002 and$18,582,000$18,548,000 for 2003. 4.20 Any balance in the first year does not cancel but is 4.21 available in the second year. 4.22[EFFECTIVE DATE.] This section is effective the day 4.23 following final enactment. 4.24 Sec. 3. Laws 2001, First Special Session chapter 3, 4.25 article 1, section 17, subdivision 7, is amended to read: 4.26 Subd. 7. [SCHOOL AGE CARE AID.] For school age care aid 4.27 according to Minnesota Statutes, section 124D.22: 4.28 $221,000 ..... 2002 4.29$133,000$100,000 ..... 2003 4.30 The 2002 appropriation includes $30,000 for 2001 and 4.31 $191,000 for 2002. 4.32 The 2003 appropriation includes $21,000 for 2002 and 4.33$112,000$79,000 for 2003. 4.34 Any balance in the first year does not cancel but is 4.35 available in the second year. 4.36 Sec. 4. Laws 2001, First Special Session chapter 3, 5.1 article 1, section 17, subdivision 8, is amended to read: 5.2 Subd. 8. [BASIC SLIDING FEE.] For child care assistance 5.3 according to Minnesota Statutes, section 119B.03: 5.4 $51,999,000 ..... 2002 5.5$51,999,000$48,499,000 ..... 2003 5.6 Beginning in fiscal year 2004, the base appropriation is 5.7 $48,499,000. 5.8 Any balance in the first year does not cancel but is 5.9 available in the second year. 5.10 Sec. 5. Laws 2001, First Special Session chapter 3, 5.11 article 1, section 17, subdivision 9, is amended to read: 5.12 Subd. 9. [MFIP CHILD CARE.] For child care assistance 5.13 according to Minnesota Statutes, section 119B.05: 5.14$82,253,000$69,201,000 ..... 2002 5.15$78,606,000$77,122,000 ..... 2003 5.16 Any balance in the first year does not cancel but is 5.17 available in the second year. 5.18[EFFECTIVE DATE.] This section is effective the day 5.19 following final enactment. 5.20 Sec. 6. Laws 2001, First Special Session chapter 3, 5.21 article 1, section 17, subdivision 11, is amended to read: 5.22 Subd. 11. [CHILD CARE SERVICE GRANTS.] For child care 5.23 development activities under child care service grants according 5.24 to Minnesota Statutes, section 119B.21: 5.25 $1,865,000 ..... 2002 5.26$1,865,000$1,365,000 ..... 2003 5.27 Beginning in fiscal year 2004, the base is $1,365,000 from 5.28 the general fund. 5.29 Any balance in the first year does not cancel but is 5.30 available in the second year. 5.31 Sec. 7. Laws 2001, First Special Session chapter 3, 5.32 article 1, section 18, is amended to read: 5.33 Sec. 18. [SPECIAL REVENUE; CHILD SUPPORT COLLECTIONS.] 5.34 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 5.35 LEARNING.] Appropriations in this section are from child support 5.36 collection payments in the special revenue fund pursuant to 6.1 Minnesota Statutes, section 119B.074. The sums indicated are 6.2 appropriated to the department of children, families, and 6.3 learning for the fiscal years designated. 6.4 Subd. 2. [CHILD CARE ASSISTANCE.] For child care 6.5 assistance according to Minnesota Statutes, section 119B.03: 6.6 $2,441,439 ..... 2002 6.7$2,340,251$2,840,251 ..... 2003 6.8 Sec. 8. Laws 2001, First Special Session chapter 3, 6.9 article 1, section 19, subdivision 3, is amended to read: 6.10 Subd. 3. [TRANSITION YEAR FAMILIES.] To provide 6.11 uninterrupted assistance under Minnesota Statutes, section 6.12 119B.03, for families completing transition year child care 6.13 assistance: 6.14$3,620,000$1,404,000 ..... 2002 6.15$4,040,000$1,357,000 ..... 2003 6.16Any balance in the first year does not cancel but is6.17available in the second year.Any unspent balance from the 6.18 appropriations for 2002 and 2003 is returned to the TANF reserve. 6.19 TANF dollars appropriated for this purpose in 2001 which are not 6.20 encumbered by January 1, 2002, are returned to the TANF reserve. 6.21[EFFECTIVE DATE.] This section is effective the day 6.22 following final enactment. 6.23 Sec. 9. Laws 2001, First Special Session chapter 3, 6.24 article 1, section 19, subdivision 5, is amended to read: 6.25 Subd. 5. [MFIP SOCIAL SERVICES CHILD CARE.] For social 6.26 services child care costs of eligible MFIP participants under 6.27 Minnesota Statutes, section 119B.05, subdivision 1, clause (5): 6.28$3,297,000$973,000 ..... 2002 6.29$2,865,000$997,000 ..... 2003 6.30Any balance in the first year does not cancel but is6.31available in the second year.Any unspent balance from the 6.32 appropriations for 2002 and 2003 is returned to the TANF reserve. 6.33 TANF dollars appropriated for this purpose in 2001 which are not 6.34 encumbered by January 1, 2002, are returned to the TANF reserve. 6.35[EFFECTIVE DATE.] This section is effective the day 6.36 following final enactment. 7.1 Sec. 10. Laws 2001, First Special Session chapter 3, 7.2 article 2, section 15, subdivision 3, is amended to read: 7.3 Subd. 3. [COMMUNITY EDUCATION AID.] For community 7.4 education aid according to Minnesota Statutes, section 124D.20: 7.5$14,209,000$14,190,000 ..... 2002 7.6$13,111,000$ 8,186,000 ..... 2003 7.7 The 2002 appropriation includes $1,528,000 for 2001 and 7.8$12,681,000$12,662,000 for 2002. 7.9 The 2003 appropriation includes$1,409,000$1,406,000 for 7.10 2002 and$11,702,000$6,780,000 for 2003. 7.11 Any balance in the first year does not cancel but is 7.12 available in the second year. 7.13[EFFECTIVE DATE.] This section is effective the day 7.14 following final enactment. 7.15 Sec. 11. Laws 2001, First Special Session chapter 3, 7.16 article 3, section 9, subdivision 6, is amended to read: 7.17 Subd. 6. [ADULT BASIC EDUCATION AUDITS; STATE DIRECTOR.] 7.18 For adult basic education audits under Minnesota Statutes, 7.19 section 124D.531, and for a state adult basic education director: 7.20$100,000..... 2002 7.21$275,000$175,000 ..... 2003 7.22 The fiscal year 2004 appropriation is$275,000$175,000. 7.23 In fiscal year 2005 and thereafter, the base is$170,000$70,000 7.24 from the general fund each year. 7.25 Any balance in the first year does not cancel but is 7.26 available in the second year. 7.27[EFFECTIVE DATE.] This section is effective the day 7.28 following final enactment. 7.29 Sec. 12. Laws 2001, First Special Session chapter 3, 7.30 article 4, section 5, subdivision 2, is amended to read: 7.31 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 7.32 according to Minnesota Statutes, sections 134.32 to 134.35: 7.33 $8,570,000 ..... 2002 7.34 $8,570,000 ..... 2003 7.35 The 2002 appropriation includes $857,000 for 2001 and 7.36 $7,713,000 for 2002. 8.1 The 2003 appropriation includes $857,000 for 2002 and 8.2 $7,713,000 for 2003. 8.3 Base level funding for fiscal year 2004 is 8.4$9,723,000$9,823,000 and$9,722,000$9,822,000 for fiscal year 8.5 2005. 8.6 Sec. 13. Laws 2001, First Special Session chapter 3, 8.7 article 4, section 5, subdivision 4, is amended to read: 8.8 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 8.9 aid to regional public library systems under Minnesota Statutes, 8.10 section 134.47: 8.11 $1,200,000 ..... 2002 8.12$1,200,000$1,400,000 ..... 2003 8.13 This is a one-time appropriation. Any balance in the first 8.14 year does not cancel but is available in the second year. 8.15 Sec. 14. [TANF APPROPRIATIONS.] 8.16 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 8.17 LEARNING.] The sum indicated in this section is appropriated to 8.18 the commissioner of children, families, and learning from the 8.19 federal Temporary Assistance for Needy Families block grant for 8.20 the fiscal year designated. This amount is available for 8.21 expenditure until June 30, 2003. 8.22 Subd. 2. [BASIC SLIDING FEE CHILD CARE.] For child care 8.23 assistance according to Minnesota Statutes, section 119B.03: 8.24 $3,000,000 ..... 2003 8.25 Sec. 15. [REPEALER.] 8.26 Laws 2001, First Special Session chapter 3, article 3, 8.27 section 8, is repealed. 8.28 ARTICLE 3 8.29 K-12 APPROPRIATION ADJUSTMENTS 8.30 Section 1. Minnesota Statutes 2000, section 120B.13, 8.31 subdivision 3, is amended to read: 8.32 Subd. 3. [SUBSIDY FOR EXAMINATION FEES.] The state may pay 8.33 all or part of the fee for advanced placement or international 8.34 baccalaureate examinations for pupils of low-income families in 8.35 public and nonpublic schools. The commissioner shall adopt a 8.36 schedule for fee subsidies that may allow payment of the entire 9.1 fee for low-income families, as defined by the 9.2 commissioner.The commissioner may also determine the9.3circumstances under which the fee is subsidized, in whole or in9.4part.The commissioner shall determine procedures for state 9.5 payments of fees. 9.6 Sec. 2. Minnesota Statutes 2000, section 124D.86, 9.7 subdivision 4, is amended to read: 9.8 Subd. 4. [INTEGRATION LEVY.] A district may levy an amount 9.9 equal to3337 percent for fiscal year2000 and2003, 22 percent 9.10 for fiscal year20012004, 29 percent for fiscal year 2005, and 9.11 22 percent for fiscal year 2006 and thereafter of the district's 9.12 integration revenue as defined in subdivision 3. 9.13 Sec. 3. Minnesota Statutes 2000, section 124D.86, 9.14 subdivision 5, is amended to read: 9.15 Subd. 5. [INTEGRATION AID.] A district's integration aid 9.16 equals6763 percent for fiscal year2000 and2003, 78 percent 9.17 for fiscal year20012004, 71 percent for fiscal year 2005, and 9.18 78 percent for fiscal year 2006 and thereafter of the district's 9.19 integration revenue as defined in subdivision 3. 9.20 Sec. 4. Minnesota Statutes 2001 Supplement, section 9.21 126C.05, subdivision 15, is amended to read: 9.22 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 9.23 enrolled in a learning year program under section 124D.128, an 9.24 area learning center under sections 123A.05 and 123A.06, an 9.25 alternative program approved by the commissioner, or a contract 9.26 alternative program under section 124D.68, subdivision 3, 9.27 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 9.28 school year for a secondary student, more than 935 hours in a 9.29 school year for an elementary student, or more than 425 hours in 9.30 a school year for a kindergarten student without a disability, 9.31 that pupil may be counted as more than one pupil in average 9.32 daily membership. The amount in excess of one pupil must be 9.33 determined by the ratio of the number of hours of instruction 9.34 provided to that pupil in excess of: (i) the greater of 1,020 9.35 hours or the number of hours required for a full-time secondary 9.36 pupil in the district to 1,020 for a secondary pupil; (ii) the 10.1 greater of 935 hours or the number of hours required for a 10.2 full-time elementary pupil in the district to 935 for an 10.3 elementary pupil in grades 1 through 6; and (iii) the greater of 10.4 425 hours or the number of hours required for a full-time 10.5 kindergarten student without a disability in the district to 425 10.6 for a kindergarten student without a disability. Hours that 10.7 occur after the close of the instructional year in June shall be 10.8 attributable to the following fiscal year. A kindergarten 10.9 student must not be counted as more than 1.2 pupils in average 10.10 daily membership under this subdivision. A student in grades 1 10.11 through 12 must not be counted as more than 1.5 pupils in 10.12 average daily membership under this subdivision. 10.13 (b)(i) To receive general education revenue for a pupil in 10.14 an alternative program that has an independent study component, 10.15 a district must meet the requirements in this paragraph. The 10.16 district must develop, for the pupil, a continual learning plan 10.17 consistent with section 124D.128, subdivision 3. Each school 10.18 district that has a state-approved public alternative program 10.19 must reserve revenue in an amount equal to at least 90 percent 10.20 of the district average general education revenue per pupil unit 10.21 less compensatory revenue per pupil unit times the number of 10.22 pupil units generated by students attending a state-approved 10.23 public alternative program. The amount of reserved revenue 10.24 available under this subdivision may only be spent for program 10.25 costs associated with the state-approved public alternative 10.26 program. Compensatory revenue must be allocated according to 10.27 section 126C.15, subdivision 2. 10.28 (ii) General education revenue for a pupil in an approved 10.29 alternative program without an independent study component must 10.30 be prorated for a pupil participating for less than a full year, 10.31 or its equivalent. The district must develop a continual 10.32 learning plan for the pupil, consistent with section 124D.128, 10.33 subdivision 3. Each school district that has a state-approved 10.34 public alternative program must reserve revenue in an amount 10.35 equal to at least 90 percent of the district average general 10.36 education revenue per pupil unit less compensatory revenue per 11.1 pupil unit times the number of pupil units generated by students 11.2 attending a state-approved public alternative program. The 11.3 amount of reserved revenue available under this subdivision may 11.4 only be spent for program costs associated with the 11.5 state-approved public alternative program. Compensatory revenue 11.6 must be allocated according to section 126C.15, subdivision 2. 11.7 (iii) General education revenue for a pupil in an approved 11.8 alternative program that has an independent study component must 11.9 be paid for each hour of teacher contact time and each hour of 11.10 independent study time completed toward a credit or graduation 11.11 standards necessary for graduation. Average daily membership 11.12 for a pupil shall equal the number of hours of teacher contact 11.13 time and independent study time divided by 1,020. 11.14 (iv) For an alternative program having an independent study 11.15 component, the commissioner shall require a description of the 11.16 courses in the program, the kinds of independent study involved, 11.17 the expected learning outcomes of the courses, and the means of 11.18 measuring student performance against the expected outcomes. 11.19 Sec. 5. [126C.457] [CAREER AND TECHNICAL LEVY.] 11.20 For taxes payable in 2003 only, a school district may levy 11.21 an amount equal to the greater of (1) $10,000, or (2) the 11.22 district's fiscal year 2001 entitlement for career and technical 11.23 aid under section 124D.453. The district must recognize the 11.24 full amount of this levy as revenue for the fiscal year in which 11.25 it is certified. Revenue received under this section must be 11.26 reserved and used only for career and technical programs. 11.27 Sec. 6. Minnesota Statutes 2000, section 136F.68, is 11.28 amended to read: 11.29 136F.68 [STATE PROPERTY AGREEMENTS.] 11.30 Notwithstanding section 16B.24, or other law to the 11.31 contrary, the board may enter into an agreement with an 11.32 intermediate school district for the cooperative use of state 11.33 property foran initial period of ten years, which may be11.34renewed or extended for additional periods of up to ten years11.35eachany period of time specified in the agreement. 11.36[EFFECTIVE DATE.] This section is effective the day 12.1 following final enactment. 12.2 Sec. 7. Laws 1997, First Special Session chapter 4, 12.3 article 3, section 25, subdivision 7, is amended to read: 12.4 Subd. 7. [WORKSTUDY STUDENT COMPENSATION.] For enabling 12.5 school districts to pay the employer's share of work study 12.6 students compensation under Minnesota Statutes, section 12.7 136A.233, subdivision 3: 12.8 $50,000 ..... 1998 12.9 $50,000 ..... 1999 12.10 Money shall be available to districts upon request until 12.11the appropriation is exhaustedFebruary 14, 2002. The 12.12 commissioner may establish an application procedure for 12.13 allocating the money to districts. 12.14 Sec. 8. Laws 2001, First Special Session chapter 6, 12.15 article 1, section 54, subdivision 2, is amended to read: 12.16 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] (a) For 12.17 general and supplemental education aid: 12.18$3,364,596,000$3,404,787,000 ..... 2002 12.19$3,506,910,000$4,982,334,000 ..... 2003 12.20 The 2002 appropriation includes$318,932,000$323,767,000 12.21 for 2001 and$3,045,664,000$3,081,020,000 for 2002. 12.22 The 2003 appropriation includes$338,407,000$335,220,000 12.23 for 2002 and$3,168,503,000$4,647,114,000 for 2003. 12.24 (b) The fiscal year 2003 appropriation in paragraph (a) is 12.25 reduced by $1,901,000. 12.26[EFFECTIVE DATE.] This section is effective the day 12.27 following final enactment. 12.28 Sec. 9. Laws 2001, First Special Session chapter 6, 12.29 article 2, section 77, subdivision 2, is amended to read: 12.30 Subd. 2. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 12.31 PROGRAMS.] (a) For students' advanced placement and 12.32 international baccalaureate examination fees under Minnesota 12.33 Statutes 2000, section 120B.13, subdivision 3, and the training 12.34 and related costs for teachers and other interested educators 12.35 under Minnesota Statutes 2000, section 120B.13, subdivision 1: 12.36 $2,000,000 ..... 2002 13.1$2,000,000$1,000,000 ..... 2003 13.2 Any funds unexpended in the first year do not cancel and 13.3 are available in the second year. 13.4 (b) The advanced placement program shall receive 75 percent 13.5 of the appropriation each year and the international 13.6 baccalaureate program shall receive 25 percent of the 13.7 appropriation each year. The department, in consultation with 13.8 representatives of the advanced placement and international 13.9 baccalaureate programs selected by the advanced placement 13.10 advisory council and IBMN, respectively, shall determine the 13.11 amounts of the expenditures each year for examination fees and 13.12 training and support programs for each program. 13.13 (c) Notwithstanding Minnesota Statutes, section 120B.13, 13.14 subdivision 1, $375,000 each year is for teachers to attend 13.15 subject matter summer training programs and follow-up support 13.16 workshops approved by the advanced placement or international 13.17 baccalaureate programs. The amount of the subsidy for each 13.18 teacher attending an advanced placement or international 13.19 baccalaureate summer training program or workshop shall be the 13.20 same. The commissioner shall determine the payment process and 13.21 the amount of the subsidy. 13.22 (d)Notwithstanding Minnesota Statutes, section 120B.13,13.23subdivision 3, in each year to the extent of available13.24appropriations,The commissioner shall pay all examination fees 13.25 for all students of low-income families under Minnesota 13.26 Statutes, section 120B.13, subdivision 3, and to the extent of 13.27 available appropriations shall also pay examination fees for 13.28 students sitting for an advanced placement examination, 13.29 international baccalaureate examination, or both.If this13.30amount is not adequate, the commissioner may pay less than the13.31full examination fee.13.32 Any balance in the first year does not cancel but is 13.33 available in the second year. 13.34 Sec. 10. Laws 2001, First Special Session chapter 6, 13.35 article 2, section 77, subdivision 7, is amended to read: 13.36 Subd. 7. [BEST PRACTICES SEMINARS.] For best practices 14.1 graduation rule seminars and other professional development 14.2 capacity building activities that assure proficiency in teaching 14.3 and implementation of graduation rule standards: 14.4 $5,260,000 ..... 2002 14.5$3,480,000$2,180,000 ..... 2003 14.6 $1,000,000 in fiscal year 2002 is for arts via the Internet 14.7 collaborative project between the Walker Art Center and the 14.8 Minneapolis Institute of Arts; $500,000 each year is for best 14.9 practices grants to intermediate school districts Nos. 287, 916, 14.10 and 917 to train teachers of special needs students under Laws 14.11 1998, chapter 398, article 5, section 42; and $250,000 each year 14.12 is for a grant to A Chance to Grow/New Visions for the Minnesota 14.13 Learning Resource Center. 14.14 The commissioner shall consider a curriculum development 14.15 grant, consistent with the graduation rule, to develop curricula 14.16 in the area of natural sciences including botany, horticulture, 14.17 and zoology. The grant shall also be used to provide 14.18 instructional materials on the Internet. The commissioner shall 14.19 consider best practices grants to districts for developing 14.20 gifted and talented services that are integrated with the 14.21 state's graduation standards. The commissioner shall consider a 14.22 grant to independent school district No. 621, Mounds View, for a 14.23 pilot project to establish a parallel block schedule strategy in 14.24 grades 1 through 3. 14.25[EFFECTIVE DATE.] This section is effective the day 14.26 following final enactment. 14.27 Sec. 11. Laws 2001, First Special Session chapter 6, 14.28 article 2, section 77, subdivision 23, is amended to read: 14.29 Subd. 23. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 14.30 GRANTS.] For education and employment transitions programming 14.31 under Minnesota Statutes, section 124D.46: 14.32 $775,000 ..... 2002 14.33$775,000.....200314.34 $250,000each yearis for ISEEK. 14.35 $450,000each yearis for youth apprenticeship grants and 14.36 to conduct a high school follow-up survey to include first, 15.1 third, and sixth year graduates of Minnesota schools. 15.2 $75,000each yearis for grants to school districts for the 15.3 junior achievement program. 15.4 Any balance in the first year does not cancel but is 15.5 available in the second year. 15.6 Sec. 12. Laws 2001, First Special Session chapter 6, 15.7 article 2, section 77, subdivision 25, as amended by Laws 2001, 15.8 First Special Session chapter 13, section 14, is amended to read: 15.9 Subd. 25. [SCHOOL EVALUATION SERVICES.] For contracting 15.10 with an independent school evaluation services contractor to 15.11 evaluate and report on school districts' academic and financial 15.12 performance under section 64: 15.13$2,500,000$1,500,000 ..... 2002 15.14 Any balance in the first year does not cancel but is 15.15 available in the second year. The base for this program is 15.16 $1,500,000 in fiscal year 2004 only. 15.17 Sec. 13. Laws 2001, First Special Session chapter 6, 15.18 article 2, section 77, subdivision 29, is amended to read: 15.19 Subd. 29. [ALTERNATIVE TEACHER COMPENSATION.] For 15.20 alternative teacher compensation established under Minnesota 15.21 Statutes, sections 124D.945 to 124D.947: 15.22$4,000,000$3,000,000 ..... 2002 15.23$4,000,000$3,700,000 ..... 2003 15.24 If the appropriations under this subdivision are 15.25 insufficient to fund all program participants, the participants 15.26 shall be prioritized by the commissioner by the date of receipt 15.27 of the application. A participant may receive less than the 15.28 maximum per pupil amount available under Minnesota Statutes, 15.29 section 124D.945, subdivision 3. 15.30 Any balance in the first year does not cancel but is 15.31 available in the second year. 15.32[EFFECTIVE DATE.] This section is effective the day 15.33 following final enactment. 15.34 Sec. 14. Laws 2001, First Special Session chapter 6, 15.35 article 3, section 21, subdivision 11, is amended to read: 15.36 Subd. 11. [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 16.1 PLAN.] For ongoing development, administration, and interagency 16.2 training costs associated with a statewide, Web-based 16.3 application for the individual interagency intervention plan 16.4 required in Minnesota Statutes, section 125A.023: 16.5 $250,000 ..... 2002 16.6$250,000.....200316.7 This is a onetime appropriation. 16.8 Sec. 15. Laws 2001, First Special Session chapter 6, 16.9 article 7, section 13, as amended by Laws 2001, First Special 16.10 Session chapter 13, section 15, is amended to read: 16.11 Sec. 13. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 16.12 FAMILIES, AND LEARNING.] 16.13 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 16.14 LEARNING.] Unless otherwise indicated, the sums indicated in 16.15 this section are appropriated from the general fund to the 16.16 department of children, families, and learning for the fiscal 16.17 years designated. 16.18 Subd. 2. [DEPARTMENT.] (a) For the department of children, 16.19 families, and learning: 16.20$31,530,000$28,801,000 ..... 2002 16.21$31,748,000$27,827,000 ..... 2003 16.22 Any balance in the first year does not cancel but is 16.23 available in the second year. 16.24 (b)$684,000$616,000 in 2002 and$690,000$621,000 in 2003 16.25 are for the board of teaching. 16.26 (c) $165,000 each year is for the board of school 16.27 administrators. 16.28 (d)$500,000 in 2002 and $250,000 in 2003 and thereafter16.29are for the Minnesota Academic Excellence Foundation.16.30(e)$260,000 each year is for the Minnesota Children's 16.31 Museum; $50,000 in fiscal year 2002 is for the Duluth Children's 16.32 Museum. 16.33(f)(e) The expenditures of federal grants and aids as 16.34 shown in the biennial budget document and its supplements are 16.35 approved and appropriated and shall be spent as indicated. 16.36(g)(f) In preparing the department budget for fiscal years 17.1 2004-2005, the department shall shift all administrative funding 17.2 from aids appropriations into the appropriation for the 17.3 department. 17.4[EFFECTIVE DATE.] This section is effective the day 17.5 following final enactment. 17.6 Sec. 16. Laws 2001, First Special Session chapter 6, 17.7 article 7, section 14, is amended to read: 17.8 Sec. 14. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 17.9 EDUCATION.] 17.10 The sums indicated in this section are appropriated from 17.11 the general fund to the Perpich Center for Arts Education for 17.12 the fiscal years designated: 17.13$7,681,000$7,431,000 ..... 2002 17.14$7,816,000$7,316,000 ..... 2003 17.15 $150,000 each year is to extend the partnership network to 17.16 up to five new partnership sites and for developing 17.17 whole-school, arts-based teaching and learning curriculum at new 17.18 sites. 17.19 Any balance in the first year does not cancel but is 17.20 available in the second year. 17.21[EFFECTIVE DATE.] This section is effective the day 17.22 following final enactment. 17.23 Sec. 17. [EXCESS COST AID ADJUSTMENT; CAMBRIDGE-ISANTI.] 17.24 For fiscal year 2002 only, the commissioner of children, 17.25 families, and learning must make a positive adjustment of 17.26 $400,000 to the special education excess cost-aid payment to 17.27 independent school district No. 911, Cambridge-Isanti. 17.28[EFFECTIVE DATE.] This section is effective the day 17.29 following final enactment. 17.30 Sec. 18. [REPEALER.] 17.31 Laws 2001, First Special Session chapter 6, article 1, 17.32 section 31, is repealed retroactive to July 1, 2001. 17.33 ARTICLE 4 17.34 K-12 FORECAST ADJUSTMENTS 17.35 Section 1. Minnesota Statutes 2001 Supplement, section 17.36 123B.54, is amended to read: 18.1 123B.54 [DEBT SERVICE APPROPRIATION.] 18.2 (a)$25,989,000$25,987,000 in fiscal year 2002, 18.3$35,163,000$31,892,000 in fiscal year 2003, 18.4$31,787,000$36,629,000 in fiscal year 2004, and 18.5$26,453,000$36,931,000 in fiscal years 2005 and later are 18.6 appropriated from the general fund to the commissioner of 18.7 children, families, and learning for payment of debt service 18.8 equalization aid under section 123B.53. 18.9 (b) The appropriations in paragraph (a) must be reduced by 18.10 the amount of any money specifically appropriated for the same 18.11 purpose in any year from any state fund. 18.12[EFFECTIVE DATE.] This section is effective the day 18.13 following final enactment. 18.14 Sec. 2. Laws 2001, First Special Session chapter 5, 18.15 article 2, section 29, subdivision 2, is amended to read: 18.16 Subd. 2. [REFERENDUM TAX BASE REPLACEMENT AID.] For 18.17 referendum tax base replacement aid according to Minnesota 18.18 Statutes, section 126C.17, subdivision 7a: 18.19$7,851,000$7,616,000 ..... 2003 18.20 The 2003 appropriation includes $0 for 2002 and$7,851,00018.21 $7,616,000 for 2003. 18.22[EFFECTIVE DATE.] This section is effective the day 18.23 following final enactment. 18.24 Sec. 3. Laws 2001, First Special Session chapter 6, 18.25 article 1, section 54, subdivision 4, is amended to read: 18.26 Subd. 4. [ABATEMENT AID.] For abatement aid according to 18.27 Minnesota Statutes, section 127A.49: 18.28$7,098,000$5,698,000 ..... 2002 18.29$7,692,000$2,990,000 ..... 2003 18.30 The 2002 appropriation includes $640,000 for 2001 and 18.31$6,458,000$5,058,000 for 2002. 18.32 The 2003 appropriation includes$717,000$562,000 for 2002 18.33 and$6,975,000$2,428,000 for 2003. 18.34[EFFECTIVE DATE.] This section is effective the day 18.35 following final enactment. 18.36 Sec. 4. Laws 2001, First Special Session chapter 6, 19.1 article 1, section 54, subdivision 5, is amended to read: 19.2 Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil 19.3 education aid according to Minnesota Statutes, sections 123.79 19.4 and 123B.40 to 123B.43: 19.5$14,099,000$14,441,000 ..... 2002 19.6$16,472,000$15,977,000 ..... 2003 19.7 The 2002 appropriation includes $1,330,000 for 2001 and 19.8$12,769,000$13,111,000 for 2002. 19.9 The 2003 appropriation includes$1,419,000$1,457,000 for 19.10 2002 and$15,053,000$14,520,000 for 2003. 19.11[EFFECTIVE DATE.] This section is effective the day 19.12 following final enactment. 19.13 Sec. 5. Laws 2001, First Special Session chapter 6, 19.14 article 1, section 54, subdivision 6, is amended to read: 19.15 Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 19.16 pupil transportation aid under Minnesota Statutes, section 19.17 123B.92, subdivision 9: 19.18$20,488,000$20,635,000 ..... 2002 19.19$24,802,000$25,347,000 ..... 2003 19.20 The 2002 appropriation includes $2,000,000 for 2001 and 19.21$18,488,000$18,635,000 for 2002. 19.22 The 2003 appropriation includes$2,054,000$2,070,000 for 19.23 2002 and$22,748,000$23,277,000 for 2003. 19.24[EFFECTIVE DATE.] This section is effective the day 19.25 following final enactment. 19.26 Sec. 6. Laws 2001, First Special Session chapter 6, 19.27 article 1, section 54, subdivision 7, is amended to read: 19.28 Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts 19.29 consolidating under Minnesota Statutes, section 123A.485: 19.30$675,000$531,000 ..... 2002 19.31$669,000$736,000 ..... 2003 19.32 The 2002 appropriation includes $44,000 for 2001 and 19.33$631,000$487,000 for 2002. 19.34 The 2003 appropriation includes$70,000$54,000 for 2002 19.35 and$599,000$682,000 for 2003. 19.36 Any balance in the first year does not cancel but is 20.1 available in the second year. 20.2[EFFECTIVE DATE.] This section is effective the day 20.3 following final enactment. 20.4 Sec. 7. Laws 2001, First Special Session chapter 6, 20.5 article 2, section 77, subdivision 4, is amended to read: 20.6 Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building 20.7 lease aid under Minnesota Statutes, section 124D.11, subdivision 20.8 4: 20.9$16,554,000$12,323,000 ..... 2002 20.10$25,176,000$15,330,000 ..... 2003 20.11 The 2002 appropriation includes $1,114,000 for 2001 and 20.12$15,440,000$11,209,000 for 2002. 20.13 The 2003 appropriation includes$1,715,000$1,245,000 for 20.14 2002 and$23,461,000$14,085,000 for 2003. 20.15[EFFECTIVE DATE.] This section is effective the day 20.16 following final enactment. 20.17 Sec. 8. Laws 2001, First Special Session chapter 6, 20.18 article 2, section 77, subdivision 5, is amended to read: 20.19 Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter 20.20 school startup cost aid under Minnesota Statutes, section 20.21 124D.11: 20.22$2,738,000$2,090,000 ..... 2002 20.23$3,143,000$1,549,000 ..... 2003 20.24 The 2002 appropriation includes$273,000$258,000 for 2001 20.25 and$2,465,000$1,832,000 for 2002. 20.26 The 2003 appropriation includes$274,000$204,000 for 2002 20.27 and$2,869,000$1,345,000 for 2003. 20.28[EFFECTIVE DATE.] This section is effective the day 20.29 following final enactment. 20.30 Sec. 9. Laws 2001, First Special Session chapter 6, 20.31 article 2, section 77, subdivision 8, is amended to read: 20.32 Subd. 8. [INTEGRATION AID.] For integration aid: 20.33$65,478,000$63,421,000 ..... 2002 20.34$51,996,000$53,890,000 ..... 2003 20.35 The 2002 appropriation includes $5,729,000 for 2001 and 20.36$59,749,000$57,692,000 for 2002. 21.1 The 2003 appropriation includes$6,639,000$6,410,000 for 21.2 2002 and$45,357,000$47,480,000 for 2003. 21.3[EFFECTIVE DATE.] This section is effective the day 21.4 following final enactment. 21.5 Sec. 10. Laws 2001, First Special Session chapter 6, 21.6 article 2, section 77, subdivision 11, is amended to read: 21.7 Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school 21.8 startup aid under Minnesota Statutes, section 124D.88: 21.9$482,000$475,000 ..... 2002 21.10$326,000$298,000 ..... 2003 21.11 The 2002 appropriation includes $25,000 for 2001 and 21.12$457,000$450,000 for 2002. 21.13 The 2003 appropriation includes$51,000$50,000 for 2002 21.14 and$275,000$248,000 for 2003. 21.15[EFFECTIVE DATE.] This section is effective the day 21.16 following final enactment. 21.17 Sec. 11. Laws 2001, First Special Session chapter 6, 21.18 article 2, section 77, subdivision 15, is amended to read: 21.19 Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian 21.20 success for the future grants according to Minnesota Statutes, 21.21 section 124D.81: 21.22$2,047,000$1,924,000 ..... 2002 21.23 $2,137,000 ..... 2003 21.24 The 2002 appropriation includes $0 for 2001 and$2,047,00021.25 $1,924,000 for 2002. 21.26 The 2003 appropriation includes$255,000$213,000 for 2002 21.27 and$2,132,000$1,924,000 for 2003. 21.28[EFFECTIVE DATE.] This section is effective the day 21.29 following final enactment. 21.30 Sec. 12. Laws 2001, First Special Session chapter 6, 21.31 article 2, section 77, subdivision 18, is amended to read: 21.32 Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 21.33 school aid under Minnesota Statutes, section 124D.83: 21.34$2,520,000$2,304,000 ..... 2002 21.35$2,767,000$2,408,000 ..... 2003 21.36 The 2002 appropriation includes $192,000 for 2001 and 22.1$2,328,000$2,112,000 for 2002. 22.2 The 2003 appropriation includes$258,000$235,000 for 2002 22.3 and$2,509,000$2,173,000 for 2003. 22.4[EFFECTIVE DATE.] This section is effective the day 22.5 following final enactment. 22.6 Sec. 13. Laws 2001, First Special Session chapter 6, 22.7 article 3, section 21, subdivision 2, is amended to read: 22.8 Subd. 2. [SPECIAL EDUCATION AID.] For special education 22.9 aid according to Minnesota Statutes, section 125A.75: 22.10$507,448,000$507,841,000 ..... 2002 22.11$531,481,000$532,282,000 ..... 2003 22.12 The 2002 appropriation includes $47,400,000 for 2001 and 22.13$460,048,000$460,441,000 for 2002. 22.14 The 2003 appropriation includes$51,116,000$51,160,000 for 22.15 2002 and$480,365,000$481,122,000 for 2003. 22.16[EFFECTIVE DATE.] This section is effective the day 22.17 following final enactment. 22.18 Sec. 14. Laws 2001, First Special Session chapter 6, 22.19 article 3, section 21, subdivision 3, is amended to read: 22.20 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 22.21 according to Minnesota Statutes, section 125A.75, subdivision 3, 22.22 for children with a disability placed in residential facilities 22.23 within the district boundaries for whom no district of residence 22.24 can be determined: 22.25$1,877,000$1,358,000 ..... 2002 22.26$2,033,000$3,161,000 ..... 2003 22.27 If the appropriation for either year is insufficient, the 22.28 appropriation for the other year is available. 22.29 Any balance in the first year does not cancel but is 22.30 available in the second year. 22.31[EFFECTIVE DATE.] This section is effective the day 22.32 following final enactment. 22.33 Sec. 15. Laws 2001, First Special Session chapter 6, 22.34 article 3, section 21, subdivision 4, is amended to read: 22.35 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 22.36 teacher travel for home-based services according to Minnesota 23.1 Statutes, section 125A.75, subdivision 1: 23.2$135,000$143,000 ..... 2002 23.3$138,000$148,000 ..... 2003 23.4 The 2002 appropriation includes$13,000$14,000 for 2001 23.5 and$122,000$129,000 for 2002. 23.6 The 2003 appropriation includes$13,000$15,000 for 2002 23.7 and$125,000$133,000 for 2003. 23.8[EFFECTIVE DATE.] This section is effective the day 23.9 following final enactment. 23.10 Sec. 16. Laws 2001, First Special Session chapter 6, 23.11 article 3, section 21, subdivision 5, is amended to read: 23.12 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 23.13 cost aid: 23.14$102,665,000$103,061,000 ..... 2002 23.15$104,773,000$105,289,000 ..... 2003 23.16 The 2002 appropriation includes $9,889,000 for 2001 and 23.17$92,776,000$93,172,000 for 2002. 23.18 The 2003 appropriation includes$10,308,000$10,352,000 for 23.19 2002 and$94,465,000$94,937,000 for 2003. 23.20[EFFECTIVE DATE.] This section is effective the day 23.21 following final enactment. 23.22 Sec. 17. Laws 2001, First Special Session chapter 6, 23.23 article 3, section 21, subdivision 7, is amended to read: 23.24 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 23.25 DISABILITIES.] For aid for transition programs for pupils with 23.26 disabilities according to Minnesota Statutes, section 124D.454: 23.27$8,954,000$8,960,000 ..... 2002 23.28$8,939,000$8,952,000 ..... 2003 23.29 The 2002 appropriation includes $896,000 for 2001 and 23.30$8,058,000$8,064,000 for 2002. 23.31 The 2003 appropriation includes$895,000$896,000 for 2002 23.32 and$8,044,000$8,056,000 for 2003. 23.33[EFFECTIVE DATE.] This section is effective the day 23.34 following final enactment. 23.35 Sec. 18. Laws 2001, First Special Session chapter 6, 23.36 article 4, section 27, subdivision 2, is amended to read: 24.1 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 24.2 aid according to Minnesota Statutes, section 123B.57, 24.3 subdivision 5: 24.4$14,980,000$13,630,000 ..... 2002 24.5$14,550,000$10,800,000 ..... 2003 24.6 The 2002 appropriation includes $1,480,000 for 2001 and 24.7$13,500,000$12,150,000 for 2002. 24.8 The 2003 appropriation includes$1,500,000$1,350,000 for 24.9 2002 and$13,050,000$9,450,000 for 2003. 24.10[EFFECTIVE DATE.] This section is effective the day 24.11 following final enactment. 24.12 Sec. 19. Laws 2001, First Special Session chapter 6, 24.13 article 4, section 27, subdivision 3, is amended to read: 24.14 Subd. 3. [DEBT SERVICE AID.] For debt service aid 24.15 according to Minnesota Statutes, section 123B.53, subdivision 6: 24.16$25,989,000$25,987,000 ..... 2002 24.17$35,523,000$31,892,000 ..... 2003 24.18 The 2002 appropriation includes $2,890,000 for 2001 and 24.19$23,099,000$23,097,000 for 2002. 24.20 The 2003 appropriation includes$2,567,000$2,566,000 for 24.21 2002 and$32,956,000$29,326,000 for 2003. 24.22[EFFECTIVE DATE.] This section is effective the day 24.23 following final enactment. 24.24 Sec. 20. Laws 2001, First Special Session chapter 6, 24.25 article 4, section 27, subdivision 5, is amended to read: 24.26 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 24.27 alternative facilities bonding aid, according to Minnesota 24.28 Statutes, section 123B.59, subdivision 1: 24.29$19,279,000$19,280,000 ..... 2002 24.30 $19,287,000 ..... 2003 24.31 The 2002 appropriation includes $1,921,000 for 2001 and 24.32$17,358,000$17,359,000 for 2002. 24.33 The 2003 appropriation includes$1,929,000$1,928,000 for 24.34 2002 and$17,358,000$17,359,000 for 2003. 24.35[EFFECTIVE DATE.] This section is effective the day 24.36 following final enactment. 25.1 Sec. 21. Laws 2001, First Special Session chapter 6, 25.2 article 4, section 27, subdivision 6, is amended to read: 25.3 Subd. 6. [TELECOMMUNICATION ACCESS COST REVENUE.] For 25.4 telecommunication access cost revenue under Minnesota Statutes, 25.5 section 125B.25: 25.6$15,387,000$14,800,000 ..... 2002 25.7$ 1,565,000$ 1,500,000 ..... 2003 25.8 The 2002 appropriation includes $1,300,000 for 2001 and 25.9$14,087,000$13,500,000 for 2002. 25.10 The 2003 appropriation includes$1,565,000$1,500,000 for 25.11 2002 and $0 for 2003. 25.12 If the appropriation amount is insufficient, the 25.13 commissioner shall reduce the reimbursement rate in Minnesota 25.14 Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 25.15 for the 2001-2002 school year shall be prorated. The 25.16 reimbursement rate shall not exceed 100 percent. 25.17[EFFECTIVE DATE.] This section is effective the day 25.18 following final enactment. 25.19 Sec. 22. Laws 2001, First Special Session chapter 6, 25.20 article 5, section 13, subdivision 2, is amended to read: 25.21 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 25.22 according to Minnesota Statutes, section 124D.111, and Code of 25.23 Federal Regulations, title 7, section 210.17, and for school 25.24 milk aid according to Minnesota Statutes, section 124D.118: 25.25 $8,710,000 ..... 2002 25.26$8,950,000$8,500,000 ..... 2003 25.27 (b) Not more than $800,000 of the amount appropriated each 25.28 year may be used for school milk aid. 25.29 Sec. 23. Laws 2001, First Special Session chapter 6, 25.30 article 5, section 13, subdivision 5, is amended to read: 25.31 Subd. 5. [FAST BREAK TO LEARNING GRANTS.] For fast break 25.32 to learning grants under Minnesota Statutes, section 124D.1156: 25.33 $2,446,000 ..... 2002 25.34 $2,839,000 ..... 2003 25.35 The 2002 appropriation includes $0 for 2001 and $2,446,000 25.36 for 2002. 26.1 The 2003 appropriation includes$272,000$271,000 for 2002 26.2 and$2,567,000$2,568,000 for 2003. 26.3 ARTICLE 5 26.4 HIGHER EDUCATION 26.5 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 26.6 The dollar amounts in the columns marked "APPROPRIATIONS" 26.7 are added to or, if shown in parentheses, are subtracted from 26.8 the appropriations in Laws 2001, First Special Session chapter 26.9 1, or other law to the specified agencies. The appropriations 26.10 are from the general fund or any other named fund and are 26.11 available for the fiscal years indicated for each purpose. The 26.12 figure 2002 or 2003 means that the addition to or subtraction 26.13 from the appropriations listed under the figure are for the 26.14 fiscal year ending June 30, 2002, or June 30, 2003, 26.15 respectively. If only one figure is shown in the text for a 26.16 specified purpose, the addition or subtraction is for 2002 26.17 unless the context intends another fiscal year. 26.18 SUMMARY BY FUND 26.19 2002 2003 TOTAL 26.20 General $ ( 2,744,000) $ (47,256,000) $ (50,000,000) 26.21 SUMMARY BY AGENCY - ALL FUNDS 26.22 2002 2003 TOTAL 26.23 Higher Education 26.24 Services Office $ ( 2,744,000) $ ( 931,000) $ ( 3,675,000) 26.25 Board of Trustees of 26.26 the Minnesota State Colleges 26.27 and Universities $ (22,692,000) $ (22,692,000) 26.28 Board of Regents of the 26.29 University of Minnesota $ (23,633,000) $ (23,633,000) 26.30 APPROPRIATIONS 26.31 Available for the Year 26.32 Ending June 30 26.33 2002 2003 26.34 Sec. 2. HIGHER EDUCATION 26.35 SERVICES OFFICE 26.36 Subdivision 1. Total 26.37 Appropriation Changes (2,744,000) ( 931,000) ( 3,675,000) 26.38 Subd. 2. State Grants 1,460,000 2,995,000 4,455,000 26.39 Notwithstanding Laws 2001, First 26.40 Special Session chapter 1, article 1, 26.41 section 2, subdivision 2, savings in 26.42 the state grant program in fiscal year 27.1 2003 resulting from any increase in the 27.2 maximum federal grant over $3,750 or 27.3 from any other source, after use to 27.4 provide additional decreases in the 27.5 family responsibility for independent 27.6 students as provided by law, shall 27.7 remain in the state grant program. 27.8 A reduction of $75,000 each year is 27.9 made to appropriations for the summer 27.10 scholarship program. A reduction of 27.11 $125,000 each year is made to 27.12 appropriations for the national service 27.13 scholars program. The appropriation 27.14 for the advanced placement scholarship 27.15 is reduced by $75,000 in fiscal year 27.16 2003. 27.17 Subd. 3. Interstate Tuition 27.18 Reciprocity (1,500,000) (1,000,000) (2,500,000) 27.19 Subd. 4. MnLink ( 822,000) -0- ( 822,000) 27.20 For fiscal year 2002, $822,000 of the 27.21 remaining appropriation in Laws 1997, 27.22 chapter 183, article 1, section 2, 27.23 subdivision 8, cancels to the general 27.24 fund. 27.25 Subd. 5. Minitex ( 382,000) ( 737,000) (1,119,000) 27.26 Subd. 6. Learning 27.27 Network of Minnesota ( 270,000) ( 900,000) (1,170,000) 27.28 Subd. 7. Minnesota College 27.29 Savings Plan (1,100,000) ( 900,000) (2,000,000) 27.30 Beginning in fiscal year 2004, the base 27.31 appropriation for this program is 27.32 $1,520,000 each year. 27.33 Subd. 8. Agency 27.34 Administration -0- ( 389,000) ( 389,000) 27.35 Notwithstanding Laws 2001, First 27.36 Special Session chapter 1, article 1, 27.37 section 2, subdivision 9, remaining 27.38 appropriations after final payments to 27.39 Youthworks grantees in an amount 27.40 estimated to be $130,000 cancels to the 27.41 general fund. 27.42 Sec. 3. BOARD OF TRUSTEES OF THE 27.43 MINNESOTA STATE COLLEGES AND UNIVERSITIES 27.44 Total Appropriation Changes (22,692,000) (22,692,000) 27.45 For fiscal years 2004 and 2005, the 27.46 base appropriation is reduced an 27.47 additional $1,786,000 each year. 27.48 The legislature intends that the board 27.49 of trustees should minimize the impact 27.50 of reductions in this section on 27.51 students by decreasing administrative 27.52 expenditures and reserve balances and 27.53 through programmatic restructuring 27.54 before increasing student tuition. 27.55 Sec. 4. BOARD OF REGENTS OF 27.56 THE UNIVERSITY OF MINNESOTA 28.1 Total Appropriation Changes (23,633,000) (23,633,000) 28.2 For fiscal years 2004 and 2005, the 28.3 base appropriation is reduced an 28.4 additional $1,858,000 each year. 28.5 The legislature intends that the board 28.6 of regents should minimize the impact 28.7 of reductions in this section on 28.8 students by decreasing administrative 28.9 expenditures and reserve balances and 28.10 through programmatic restructuring 28.11 before increasing student tuition. 28.12 Reductions under this section may be 28.13 made to general fund appropriations in 28.14 Laws 2001, First Special Session 28.15 chapter 1, article 1, section 4, except 28.16 for appropriations to the agricultural 28.17 and extension service under Laws 2001, 28.18 First Special Session chapter 1, 28.19 article 1, section 4, subdivision 4, 28.20 paragraph (a). 28.21 Sec. 5. Minnesota Statutes 2001 Supplement, section 28.22 136A.121, subdivision 6, is amended to read: 28.23 Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of 28.24 attendance consists of allowances specified in law for living 28.25 and miscellaneous expenses, and 28.26(1) for public institutions, the actual tuition and fees28.27charged by the institution; or28.28(2) for private institutions,an allowance for tuition and 28.29 fees equal to the lesser of the actual tuition and fees charged 28.30 by the institution, or the private institution tuition and fee 28.31 maximums established in law. 28.32 (b) For the purpose of paragraph (a),clause (2),the 28.33 private institution tuition and fee maximum for two- and 28.34 four-year, private, residential, liberal arts, degree-granting 28.35 colleges and universities must be the same. 28.36 (c) For a student registering for less than full time, the 28.37 office shall prorate the living and miscellaneous expense 28.38 allowance to the actual number of credits for which the student 28.39 is enrolled. 28.40 The recognized cost of attendance for a student who is 28.41 confined to a Minnesota correctional institution shall consist 28.42 of the tuition and fee component in paragraph (a),clause (1) or28.43(2),with no allowance for living and miscellaneous expenses. 28.44[EFFECTIVE DATE.] This section is effective July 1, 2002. 29.1 Sec. 6. Minnesota Statutes 2001 Supplement, section 29.2 136A.124, subdivision 2, is amended to read: 29.3 Subd. 2. [ELIGIBILITY.] A grant must be awarded to a 29.4 student scoring an average of three or higher on five or more 29.5 advanced placement examinations on full-year courses or an 29.6 average of four or higher on five or more international 29.7 baccalaureate examinations on full-year courses. Two half-year 29.8 courses may be considered as one full-year course. The annual 29.9 amount of each grant must be based on the student's scores on 29.10 the examinations and the funds available under this section. 29.11 A grant under this subdivision must not affect a 29.12 recipient's eligibility for a state grant under section 136A.121. 29.13 Sec. 7. Minnesota Statutes 2001 Supplement, section 29.14 136A.124, subdivision 4, is amended to read: 29.15 Subd. 4. [ELIGIBLE INSTITUTION.] An "eligible institution" 29.16 under this section is a public or private four-year 29.17 degree-granting college or university or a two-year public 29.18 college in Minnesota that has a credit and placement policy for 29.19 either advanced placement or international baccalaureate 29.20 scholarship recipients, or both. Each eligible institution must 29.21 annually certify its policies to theofficecommissioner of 29.22 children, families, and learning. Theofficecommissioner of 29.23 children, families, and learning must provide each Minnesota 29.24 secondary school with a copy of the post-secondary advanced 29.25 placement and international baccalaureate policies of eligible 29.26 institutions. 29.27 Sec. 8. Minnesota Statutes 2001 Supplement, section 29.28 136G.03, subdivision 25, is amended to read: 29.29 Subd. 25. [PENALTY.] "Penalty" means the amount 29.30 established by the office that is applied against the earnings 29.31 portion of a nonqualified distribution. The amount established 29.32 by the office must be the minimum required to be a more than de 29.33 minimis penalty under section 529 of the Internal Revenue Code. 29.34 The office must impose, collect, and apply penalties consistent 29.35 with section 529 of the Internal Revenue Code. 29.36[EFFECTIVE DATE.] This section is effective the day 30.1 following final enactment. 30.2 Sec. 9. Minnesota Statutes 2001 Supplement, section 30.3 136G.07, subdivision 1, is amended to read: 30.4 Subdivision 1. [STATE BOARD TO INVEST.] The state board of 30.5 investment shall invest the money deposited in accounts in the 30.6 planand all investments are directed by the board. Except as 30.7 permitted by the Internal Revenue Code, neither persons making 30.8 contributions to an account nor beneficiaries may direct the 30.9 investment of contributions to the plan or plan earnings. 30.10[EFFECTIVE DATE.] This section is effective the day 30.11 following final enactment. 30.12 Sec. 10. Minnesota Statutes 2001 Supplement, section 30.13 136G.09, subdivision 8, is amended to read: 30.14 Subd. 8. [MAXIMUM ACCOUNT BALANCE LIMIT.] (a) When a 30.15 contribution is made, the total account balance of all accounts 30.16 held for the same beneficiary, including matching grant 30.17 accounts, must not exceed the maximum account balance limit as 30.18 determined under this subdivision. 30.19 (b) The maximum account balance limit is reduced for 30.20 withdrawals from any account for the same beneficiary that are 30.21 qualified distributions, distributions due to the death or 30.22 disability of the beneficiary, or distributions due to the 30.23 beneficiary receiving a scholarship. Subsequent contributions 30.24 must not be made to replenish an account if the contribution 30.25 results in the total account balance of all accounts held for 30.26 the beneficiary to exceed the reduced maximum account balance 30.27 limit. Any subsequent contributions must be rejected. A 30.28 subsequent contribution accepted in error must be returned to 30.29 the account owner plus any earnings on the contribution less any 30.30 applicable penalties. 30.31 (c) The maximum account balance limit is not reduced for a 30.32 nonqualified distribution or a rollover distribution. When such 30.33 distributions are taken, subsequent contributions may be made to 30.34 replenish an account up to the maximum account balance limit. 30.35 (d) The office must establish a maximum account balance 30.36 limit.The maximum account balance limit is four times the cost31.1of one year of qualified higher education expenses at the most31.2expensive eligible educational institution in Minnesota.The 31.3 office must adjust the maximum account balance limit, as 31.4 necessary, or on January 1 of each year.Qualified higher31.5education expenses for the academic year prior to January 1 of31.6each year must be used in calculating the maximum account31.7balance limit.The maximum account balance limit must not 31.8 exceed the amount permitted for the plan to qualify as a 31.9 qualified state tuition program under section 529 of the 31.10 Internal Revenue Code. For calendar years 2002 and 2003, the 31.11 maximum account balance is $235,000. 31.12 (e) If the total account balance of all accounts held for a 31.13 single beneficiary reaches the maximum account balance limit 31.14 prior to the end of that calendar year, the beneficiary may 31.15 receive an applicable matching grant for that calendar year. 31.16[EFFECTIVE DATE.] This section is effective the day 31.17 following final enactment. 31.18 Sec. 11. [REPEALER.] 31.19 Laws 1997, chapter 183, article 2, section 19, is repealed. 31.20 ARTICLE 6 31.21 CORRECTIONS 31.22 Section 1. [APPROPRIATIONS/REDUCTIONS.] 31.23 The dollar amounts in the columns under "APPROPRIATIONS" 31.24 are added to or, if shown in parentheses, are subtracted from 31.25 the appropriations in Laws 2001, First Special Session chapters 31.26 8, 9, or other law to the specified agencies. The 31.27 appropriations are from the general fund or other named fund and 31.28 are available for the fiscal years indicated for each purpose. 31.29 The figure "2002" or "2003" means that the addition to or 31.30 subtraction from the appropriations listed under the figure are 31.31 for the fiscal year ending June 30, 2002, or June 30, 2003, 31.32 respectively. 31.33 2002 2003 31.34 APPROPRIATION REDUCTIONS (5,165,000) (11,489,000) 31.35 APPROPRIATIONS 31.36 2002 2003 32.1 Sec. 2. BOARD OF PUBLIC 32.2 DEFENSE -0- (1,153,000) 32.3 Sec. 3. CORRECTIONS 32.4 Subdivision 1. Total 32.5 Appropriation Changes (5,165,000) (10,113,000) 32.6 Subd. 2. Adult Institutions (5,200,000) (1,750,000) 32.7 The base for fiscal year 2004 shall be 32.8 reduced by $8,145,000, and for fiscal 32.9 year 2005 by $8,145,000. The 32.10 commissioner of corrections shall 32.11 develop an agencywide spending plan for 32.12 the 2004-2005 biennium and report to 32.13 the chairs and ranking minority members 32.14 of the house and senate committees with 32.15 jurisdiction over criminal justice 32.16 policy and funding on its 32.17 recommendations by January 15, 2003. 32.18 Subd. 3. Juvenile Services -0- (115,000) 32.19 Subd. 4. Community Services 35,000 (7,948,000) 32.20 [CLEARWATER COUNTY PROBATION SERVICES.] 32.21 $35,000 the first year and $74,000 the 32.22 second year are for an increase to 32.23 probation services provided to 32.24 Clearwater county. It is anticipated 32.25 that the county will reimburse the 32.26 state for these costs and that these 32.27 proceeds will be deposited in the 32.28 general fund. 32.29 [JUVENILE RESIDENTIAL TREATMENT 32.30 GRANTS.] $5,000,000 the second year is 32.31 to reduce juvenile residential 32.32 treatment grants. 32.33 [EXTENDED JUVENILE JURISDICTION 32.34 REIMBURSEMENT.] $1,200,000 the second 32.35 year is to reduce extended juvenile 32.36 jurisdiction reimbursement grants. 32.37 [PRETRIAL BAIL EVALUATION 32.38 REIMBURSEMENT.] $322,000 the second 32.39 year is to eliminate pretrial bail 32.40 evaluation reimbursement. 32.41 [COMMUNITY REENTRY PROGRAM.] $200,000 32.42 the second year is to eliminate the 32.43 community reentry program. 32.44 [PROBATION SERVICES.] $800,000 the 32.45 second year is to reduce the Community 32.46 Corrections Act subsidy funding. 32.47 $80,000 the second year is to reduce 32.48 county probation officer 32.49 reimbursement. $320,000 the second 32.50 year is to reduce probation and 32.51 supervised release services provided by 32.52 the department. These are onetime 32.53 reductions. 32.54 $100,000 the second year is to reduce 32.55 funding for the remote electronic 32.56 alcohol monitoring project. 32.57 Subd. 5. Management Services (300,000) 33.1 Sec. 4. OMBUDSMAN FOR CORRECTIONS -0- (168,000) 33.2 Sec. 5. SENTENCING GUIDELINES 33.3 COMMISSION -0- (55,000) 33.4 The base for fiscal year 2004 shall be 33.5 reduced by $60,000 and for fiscal year 33.6 2005 by $60,000. 33.7 Sec. 6. ADMINISTRATION 33.8 [ISSUANCE OF REQUEST FOR PROPOSALS; 33.9 FELONY-LEVEL DWI OFFENDERS.](a) The 33.10 commissioner of administration shall 33.11 issue a request for proposals by March 33.12 1, 2004, and shall select a vendor by 33.13 July 1, 2004, to provide housing and 33.14 chemical dependency treatment for 33.15 felony-level driving while impaired 33.16 offenders. 33.17 (b) In establishing the criteria a 33.18 vendor must meet and in specifying 33.19 preferences for vendors to meet, the 33.20 commissioner of administration shall 33.21 consult with the executive director of 33.22 the sentencing guidelines commission, 33.23 the commissioner of corrections, and 33.24 the commissioner of human services, as 33.25 appropriate. The commissioner of 33.26 administration shall consider the 33.27 following factors in issuing the 33.28 request for proposals: 33.29 (1) the level of security required for 33.30 housing felony-level DWI offenders 33.31 based upon the offense pattern of 33.32 current repeat DWI offenders; 33.33 (2) the type and length of chemical 33.34 dependency treatment and aftercare 33.35 needed for felony-level DWI offenders; 33.36 (3) the area of the state from which 33.37 offenders will come based upon the 33.38 offense pattern of current DWI 33.39 offenders; 33.40 (4) other treatment and rehabilitation 33.41 programs appropriate for offenders in a 33.42 detention facility focused on housing 33.43 felony-level DWI offenders; and 33.44 (5) other factors deemed appropriate 33.45 for consideration by the commissioner 33.46 of administration, corrections, or 33.47 human services, or by the executive 33.48 director of the sentencing guidelines 33.49 commission. 33.50 (c) The department of corrections shall 33.51 respond to the request for proposals. 33.52 Sec. 7. Minnesota Statutes 2000, section 120A.34, is 33.53 amended to read: 33.54 120A.34 [VIOLATIONS; PENALTIES.] 33.55 Any person who fails or refuses to provide for instruction 34.1 of a child of whom the person has legal custody, and who is 34.2 required by section 120A.22, subdivision 5, to receive 34.3 instruction, when notified so to do by a truant officer or other 34.4 official, or any person who induces or attempts to induce any 34.5 child unlawfully to be absent from school, or who knowingly 34.6 harbors or employs, while school is in session, any child 34.7 unlawfully absent from school, shall be guilty of a petty 34.8 misdemeanor. Any fines collected shall be paid into the county 34.9 treasury for the benefit of the school district in which the 34.10 offense is committed. 34.11 Sec. 8. Minnesota Statutes 2001 Supplement, section 34.12 242.192, is amended to read: 34.13 242.192 [CHARGES TO COUNTIES.] 34.14(a) Until June 30, 2002,The commissioner shall charge 34.15 counties or other appropriate jurisdictions 65 percent of the 34.16 per diem cost of confinement, excluding educational costs and 34.17 nonbillable service, of juveniles at the Minnesota correctional 34.18 facility-Red Wing and of juvenile females committed to the 34.19 commissioner of corrections. This charge applies to juveniles 34.20 committed to the commissioner of corrections and juveniles 34.21 admitted to the Minnesota correctional facility-Red Wing under 34.22 established admissions criteria. This charge applies to both 34.23 counties that participate in the Community Corrections Act and 34.24 those that do not. The commissioner shall determine the per 34.25 diem cost of confinement based on projected population, pricing 34.26 incentives, market conditions, and the requirement that expense 34.27 and revenue balance out over a period of two years. All money 34.28 received under this section must be deposited in the state 34.29 treasury and credited to the general fund. 34.30(b) Until June 30, 2002, the department of corrections34.31shall be responsible for 35 percent of the per diem cost of34.32confinement described in this section.34.33 Sec. 9. Minnesota Statutes 2001 Supplement, section 34.34 244.054, subdivision 2, is amended to read: 34.35 Subd. 2. [CONTENT OF PLAN.] If an offender chooses to have 34.36 a discharge plan developed, the commissioner of human services 35.1 shall develop and implement a discharge plan, which must include 35.2 at least the following: 35.3 (1) at least 90 days before the offender is due to be 35.4 discharged, the commissioner of human services shall designate 35.5 an agent of the department of human services with mental health 35.6 training to serve as the primary person responsible for carrying 35.7 out discharge planning activities; 35.8 (2) at least 75 days before the offender is due to be 35.9 discharged, the offender's designated agent shall: 35.10 (i) obtain informed consent and releases of information 35.11 from the offender that are needed for transition services; 35.12 (ii) contact the county human services department in the 35.13 community where the offender expects to reside following 35.14 discharge, and inform the department of the offender's impending 35.15 discharge and the planned date of the offender's return to the 35.16 community; determine whether the county or a designated 35.17 contracted provider will provide case management services to the 35.18 offender; refer the offender to the case management services 35.19 provider; and confirm that the case management services provider 35.20 will have opened the offender's case prior to the offender's 35.21 discharge; and 35.22 (iii) refer the offender to appropriate staff in the county 35.23 human services department in the community where the offender 35.24 expects to reside following discharge, for enrollment of the 35.25 offender if eligible in medical assistance or general assistance 35.26 medical care, using special procedures established by process 35.27 and department of human services bulletin; 35.28 (3) at least 2-1/2 months before discharge, the offender's 35.29 designated agent shall secure timely appointments for the 35.30 offender with a psychiatrist no later than 30 days following 35.31 discharge, and with other program staff at a community mental 35.32 health provider that is able to serve former offenders with 35.33 serious and persistent mental illness; 35.34 (4) at least 30 days before discharge, the offender's 35.35 designated agent shall convene a predischarge assessment and 35.36 planning meeting of key staff from the programs in which the 36.1 offender has participated while in the correctional facility, 36.2 the offender,andthe supervising agent, and the mental health 36.3 case management services provider assigned to the offender. At 36.4 the meeting, attendees shall provide background information and 36.5 continuing care recommendations for the offender, including 36.6 information on the offender's risk for relapse; current 36.7 medications, including dosage and frequency; therapy and 36.8 behavioral goals; diagnostic and assessment information, 36.9 including results of a chemical dependency evaluation; 36.10 confirmation of appointments with a psychiatrist and other 36.11 program staff in the community; a relapse prevention plan; 36.12 continuing care needs; needs for housing, employment, and 36.13 finance support and assistance; and recommendations for 36.14 successful community integration, including chemical dependency 36.15 treatment or support if chemical dependency is a risk factor. 36.16 Immediately following this meeting, the offender's designated 36.17 agent shall summarize this background information and continuing 36.18 care recommendations in a written report; 36.19 (5) immediately following the predischarge assessment and 36.20 planning meeting, the provider of mental health case management 36.21 services who will serve the offender following discharge shall 36.22 offer to make arrangements and referrals for housing, financial 36.23 support, benefits assistance, employment counseling, and other 36.24 services required in sections 245.461 to 245.486; 36.25 (6) at least ten days before the offender's first scheduled 36.26 postdischarge appointment with a mental health provider, the 36.27 offender's designated agent shall transfer the following records 36.28 to the offender's case management services provider and 36.29 psychiatrist: the predischarge assessment and planning report, 36.30 medical records, and pharmacy records. These records may be 36.31 transferred only if the offender provides informed consent for 36.32 their release; 36.33 (7) upon discharge, the offender's designated agent shall 36.34 ensure that the offender leaves the correctional facility with 36.35 at least a ten-day supply of all necessary medications; and 36.36 (8) upon discharge, the prescribing authority at the 37.1 offender's correctional facility shall telephone in 37.2 prescriptions for all necessary medications to a pharmacy in the 37.3 community where the offender plans to reside. The prescriptions 37.4 must provide at least a 30-day supply of all necessary 37.5 medications, and must be able to be refilled once for one 37.6 additional 30-day supply. 37.7 Sec. 10. Minnesota Statutes 2001 Supplement, section 37.8 260B.007, subdivision 16, is amended to read: 37.9 Subd. 16. [JUVENILE PETTY OFFENDER; JUVENILE PETTY 37.10 OFFENSE.] (a) "Juvenile petty offense" includes a juvenile 37.11 alcohol offense, a juvenile controlled substance offense, a 37.12 violation of section 609.685, or a violation of a local 37.13 ordinance, which by its terms prohibits conduct by a child under 37.14 the age of 18 years which would be lawful conduct if committed 37.15 by an adult. "Juvenile petty offense" also includes a habitual 37.16 truant, as defined in section 260C.007, subdivision 19, unless a 37.17 petition brought under chapter 260C states that an out-of-home 37.18 placement is sought for the child. 37.19 (b) Except as otherwise provided in paragraph (c), 37.20 "juvenile petty offense" also includes an offense that would be 37.21 a misdemeanor if committed by an adult. 37.22 (c) "Juvenile petty offense" does not include any of the 37.23 following: 37.24 (1) a misdemeanor-level violation of section 518B.01, 37.25 588.20, 609.224, 609.2242, 609.324, 609.563, 609.576, 609.66, 37.26 609.746, 609.748, 609.79, or 617.23; 37.27 (2) a major traffic offense or an adult court traffic 37.28 offense, as described in section 260B.225; 37.29 (3) a misdemeanor-level offense committed by a child whom 37.30 the juvenile court previously has found to have committed a 37.31 misdemeanor, gross misdemeanor, or felony offense; or 37.32 (4) a misdemeanor-level offense committed by a child whom 37.33 the juvenile court has found to have committed a 37.34 misdemeanor-level juvenile petty offense on two or more prior 37.35 occasions, unless the county attorney designates the child on 37.36 the petition as a juvenile petty offender notwithstanding this 38.1 prior record. As used in this clause, "misdemeanor-level 38.2 juvenile petty offense" includes a misdemeanor-level offense 38.3 that would have been a juvenile petty offense if it had been 38.4 committed on or after July 1, 1995. 38.5 (d) A child who commits a juvenile petty offense is a 38.6 "juvenile petty offender." 38.7 Sec. 11. Minnesota Statutes 2001 Supplement, section 38.8 260C.141, subdivision 3, is amended to read: 38.9 Subd. 3. [CHILD IN NEED OF PROTECTION OR SERVICES; 38.10 HABITUAL TRUANT.] (a) If there is a school attendance review 38.11 board or county attorney mediation program operating in the 38.12 child's school district, a petition alleging that a child is in 38.13 need of protection or services as a habitual truant under 38.14 section 260C.007, subdivision 6, clause (14), may not be filed 38.15 until the applicable procedures under section 260A.06 or 260A.07 38.16 have been followed. 38.17 (b) A petition alleging that a child is in need of 38.18 protection or services as a habitual truant under section 38.19 260C.007, subdivision 6, clause (14), must give notice that the 38.20 petitioner is seeking an out-of-home placement of the child. If 38.21 the petition does not state that an out-of-home placement is 38.22 sought for the child, the matter must proceed as a juvenile 38.23 petty offense action under chapter 260B. 38.24 Sec. 12. Minnesota Statutes 2000, section 260C.163, 38.25 subdivision 3, is amended to read: 38.26 Subd. 3. [APPOINTMENT OF COUNSEL.] (a) The child, parent, 38.27 guardian or custodian has the right to effective assistance of 38.28 counsel in connection with a proceeding in juvenile court. 38.29 (b) If they desire counsel but are unable to employ it, the 38.30 court shall appoint counsel to represent the child who is ten 38.31 years of age or older or the parents or guardian in any case in 38.32 which it feels that such an appointment is appropriate. 38.33 (c) Counsel for the child shall not also act as the child's 38.34 guardian ad litem. 38.35 (d) In any proceeding where the subject of a petition for a 38.36 child in need of protection or services is not represented by an 39.1 attorney, the court shall determine the child's preferences 39.2 regarding the proceedings, if the child is of suitable age to 39.3 express a preference. 39.4 (e) A child, parent, guardian, or custodian is not entitled 39.5 to counsel at public expense in a case involving a child alleged 39.6 to be in need of protection or services as a habitual truant 39.7 under section 260C.007, subdivision 6, clause (14), unless the 39.8 petition states that an out-of-home placement is sought for the 39.9 child. 39.10 Sec. 13. Minnesota Statutes 2000, section 611.17, is 39.11 amended to read: 39.12 611.17 [FINANCIAL INQUIRY; STATEMENTS; CO-PAYMENT.] 39.13 (a) Each judicial district must screen requests under 39.14 paragraph (b). 39.15 (b) Upon a request for the appointment of counsel, the 39.16 court shall make appropriate inquiry into the financial 39.17 circumstances of the applicant, who shall submit a financial 39.18 statement under oath or affirmation setting forth the 39.19 applicant's assets and liabilities, including the value of any 39.20 real property owned by the applicant, whether homestead or 39.21 otherwise, less the amount of any encumbrances on the real 39.22 property, the source or sources of income, and any other 39.23 information required by the court. The applicant shall be under 39.24 a continuing duty while represented by a public defender to 39.25 disclose any changes in the applicant's financial circumstances 39.26 that might be relevant to the applicant's eligibility for a 39.27 public defender. The state public defender shall furnish 39.28 appropriate forms for the financial statements. The forms must 39.29 contain conspicuous notice of the applicant's continuing duty to 39.30 disclose to the court changes in the applicant's financial 39.31 circumstances. The information contained in the statement shall 39.32 be confidential and for the exclusive use of the court and the 39.33 public defender appointed by the court to represent the 39.34 applicant except for any prosecution under section 609.48. A 39.35 refusal to execute the financial statement or produce financial 39.36 records constitutes a waiver of the right to the appointment of 40.1 a public defender. 40.2 (c) Upon disposition of the case, an individual who has 40.3 received public defender services shall pay to the court a $28 40.4 co-payment for representation provided by a public defender, 40.5 unless the co-payment is, or has been, waived by the court. The 40.6 co-payment shall be deposited in the state general fund. If a 40.7 term of probation is imposed as a part of an offender's 40.8 sentence, the co-payment required by this section must not be 40.9 made a condition of probation. The co-payment required by this 40.10 section is a civil obligation and must not be made a condition 40.11 of a criminal sentence. 40.12 Sec. 14. Laws 2001, First Special Session chapter 8, 40.13 article 11, section 14, is amended to read: 40.14 Sec. 14. [FELONY DWI STUDY.] 40.15 By January 15, 2004, and each year thereafter through 40.16 January 15, 2007, the commissioner of corrections must report to 40.17 the chairs and ranking minority members of the house and senate 40.18 committees having jurisdiction over criminal justice and 40.19 judiciary finance issues on the implementation and effects of 40.20 the felony level driving while impaired offense. The report 40.21 must include the following information on felony level driving 40.22 while impaired offenses: 40.23 (1) the number of persons convicted; 40.24 (2) the month and county of conviction; 40.25 (3) the offenders' ages and gender; 40.26 (4) the offenders' prior impaired driving histories and 40.27 prior criminal histories; 40.28 (5) the number of trials taken to verdict, separating out 40.29 cases tried to a judge versus cases tried to a jury, and the 40.30 number of convictions for each; 40.31(3)(6) the number of offenders incarcerated locally and 40.32 the term of incarceration; 40.33(4)(7) the number placed on probation and the length of 40.34 the probation; 40.35(5)(8) the number for whom probation is revoked, the 40.36 reasons for revocation, and the consequences imposed; 41.1(6)(9) the number given an executed prison sentence upon 41.2 conviction and the length of the sentence; 41.3(7)(10) the number given an executed prison sentence upon 41.4 revocation of probation and the length of sentence; 41.5(8)(11) the number who successfully complete treatment in 41.6 prison; 41.7(9)(12) the number placed on intensive supervision 41.8 following release from incarceration; 41.9(10)(13) the number who violate supervised release and the 41.10 consequences imposed;and41.11(11)(14) per diem costs, including treatment costs, for 41.12 offenders incarcerated under the felony sentence provisions; and 41.13 (15) any other information the commissioner deems relevant 41.14 to estimating future costs. 41.15 The commissioner of corrections shall share preliminary 41.16 information with the commissioner of administration for the 41.17 purpose of issuance of a request for proposals under section 6. 41.18 Sec. 15. [COLLABORATIVE CASE PLANNING FOR CERTAIN MENTALLY 41.19 ILL PERSONS UNDER CORRECTIONAL SUPERVISION; POLICIES AND 41.20 PRACTICES; REPORTS REQUIRED.] 41.21 Subdivision 1. [DEVELOPMENT OF POLICIES AND 41.22 PRACTICES.] Correctional and social services agencies in each 41.23 county that delivers direct case management services shall 41.24 develop policies and practices that maximize collaborative case 41.25 planning for adult and juvenile offenders under correctional 41.26 supervision who have been diagnosed with serious and persistent 41.27 mental illness or severe emotional disturbance. To the degree 41.28 resources are available, the policies and practices must 41.29 determine how to: 41.30 (1) ensure that the offender receives the best possible 41.31 mental health case management expertise; 41.32 (2) determine which case management model best delivers 41.33 case management services; 41.34 (3) maximize the efficiency of case management services; 41.35 and 41.36 (4) maximize the recoupment of federal financial 42.1 participation of medical assistance and other forms of funding. 42.2 Subd. 2. [REPORTS REQUIRED.] By December 31, 2002, the 42.3 agencies described in subdivision 1 shall submit a report on 42.4 their mental health correctional policies and practices to the 42.5 department of corrections. By March 1, 2003, the commissioner 42.6 of corrections shall submit a statewide report on the mental 42.7 health correctional policies and practices to the chairs and 42.8 ranking minority members of the senate and house of 42.9 representatives committees and divisions with jurisdiction over 42.10 mental health and corrections policy and funding. 42.11 Sec. 16. [DATA SHARING ON CERTAIN MENTALLY ILL PERSONS 42.12 UNDER CORRECTIONAL SUPERVISION.] 42.13 Notwithstanding any other law to the contrary, correctional 42.14 and social services agencies may share data on adult and 42.15 juvenile offenders under correctional supervision who have been 42.16 diagnosed with serious and persistent mental illness or severe 42.17 emotional disturbance for the purpose of engaging in 42.18 collaborative case planning as described in section 15. 42.19 ARTICLE 7 42.20 PUBLIC SAFETY AND TRANSPORTATION AND 42.21 OTHER AGENCY APPROPRIATIONS 42.22 Section 1. [TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS.] 42.23 The dollar amounts in the columns marked "APPROPRIATIONS" 42.24 are added to or, if shown in parentheses, are subtracted from 42.25 the appropriations in Laws 2001, First Special Session chapters 42.26 8, 9, or other law to the specified agencies. The 42.27 appropriations are from the general fund or any other named fund 42.28 and are available for the fiscal years indicated for each 42.29 purpose. The figure 2002 or 2003 means that the addition to or 42.30 subtraction from the appropriations listed under the figure are 42.31 for the fiscal year ending June 30, 2002, or June 30, 2003, 42.32 respectively. If only one figure is shown in the text for a 42.33 specified purpose, the addition or subtraction is for 2002 42.34 unless the context intends another fiscal year. 42.35 SUMMARY BY FUND 42.36 2002 2003 TOTAL 43.1 APPROPRIATIONS 43.2 General $ (2,018,000) $ (6,932,000) $ (8,950,000) 43.3 TRANSFERS IN (2,705,000) (1,996,000) (4,701,000) 43.4 Sec. 2. TRANSPORTATION 43.5 Subdivision 1. Total Appropriation 43.6 Changes -0- (510,000) 43.7 Subd. 2. Aeronautics -0- (50,000) 43.8 This reduction is from the 43.9 appropriation from the general fund for 43.10 air transportation services. This 43.11 reduction reduces the agency's budget 43.12 base by $50,000. 43.13 Subd. 3. Transit -0- (400,000) 43.14 This reduction is from the 43.15 appropriation from the general fund for 43.16 transit administration. This reduction 43.17 reduces the agency's budget base by 43.18 $400,000. 43.19 Subd. 4. Railroads and 43.20 Waterways -0- (60,000) 43.21 This reduction is from the 43.22 appropriation from the general fund and 43.23 reduces the agency's budget base by 43.24 $60,000. 43.25 Sec. 3. METROPOLITAN COUNCIL 43.26 Metropolitan Council 43.27 Transit -0- (2,715,000) 43.28 Of these reductions: 43.29 (1) $600,000 the second year is from 43.30 metro transit administration. This 43.31 reduction reduces the agency's budget 43.32 base by $600,000; 43.33 (2) $100,000 the second year is from 43.34 metropolitan transportation services 43.35 other than metro transit. This reduces 43.36 the agency's budget base by $100,000; 43.37 and 43.38 (3) $2,015,000 the second year is from 43.39 metropolitan council transit operations 43.40 other than metro mobility. 43.41 The council shall first seek to achieve 43.42 this reduction by: 43.43 (a) increasing operating revenue; or 43.44 (b) reducing operating expenses by 43.45 reducing or eliminating service on 43.46 routes with a fare box recovery of less 43.47 than ten percent, or reducing nonpeak 43.48 service. 43.49 This reduction reduces the agency's 43.50 budget base by $2,015,000. 44.1 Sec. 4. PUBLIC SAFETY 44.2 Subdivision 1. Total Appropriation 44.3 Changes (2,018,000) (3,296,000) 44.4 Subd. 2. Emergency Management -0- (200,000) 44.5 For emergency management, the base for 44.6 fiscal year 2004 shall be reduced by 44.7 $3,627,000 and for fiscal year 2005 by 44.8 $3,627,000. 44.9 Subd. 3. Fire Marshal -0- (84,000) 44.10 Subd. 4. Alcohol and Gambling 44.11 Enforcement -0- (84,000) 44.12 [BACKGROUND CHECK FEE.] The fee charged 44.13 by the alcohol and gambling division to 44.14 Indian tribal governments for 44.15 investigations and background checks 44.16 under Minnesota Statutes, section 44.17 3.9221, is increased from $8 to $15, 44.18 effective July 1, 2002. 44.19 [BACKGROUND CHECK FEE.] The fee charged 44.20 by the alcohol and gambling division to 44.21 manufacturers and distributors of 44.22 gambling devices for background checks 44.23 under Minnesota Statutes, section 44.24 299L.07, subdivision 5, is increased 44.25 from $8 to $15, effective July 1, 2002. 44.26 Subd. 5. Crime Victims 44.27 Services Center (384,000) (1,368,000) 44.28 [SHELTER PER DIEMS.] $600,000 the 44.29 second year is a reduction in per diem 44.30 funding for shelters. The base for the 44.31 crime victim services center shall be 44.32 reduced by $600,000 in fiscal year 2004 44.33 and $600,000 in fiscal year 2005 to 44.34 reflect reduced funding for shelters. 44.35 [CRIME VICTIMS SERVICES STAFF AND 44.36 GRANTS.] $384,000 the first year and 44.37 $768,000 the second year are reductions 44.38 for crime victims services staff and 44.39 grants. For crime victims services 44.40 grants, the base for fiscal year 2004 44.41 shall be reduced by $2,000,000 and for 44.42 fiscal year 2005 by $2,000,000. 44.43 Subd. 6. Law Enforcement 44.44 and Community Grants (1,634,000) (685,000) 44.45 [DRUG POLICY AND VIOLENCE PREVENTION 44.46 GRANTS.] $1,292,000 the first year and 44.47 $142,000 the second year are to reduce 44.48 drug policy and violence prevention 44.49 grants. The base for law enforcement 44.50 and community grants shall be reduced 44.51 by $243,000 in fiscal year 2004 and 44.52 $243,000 in fiscal year 2005 to reflect 44.53 reduced funding for drug policy and 44.54 violence prevention grants. 44.55 [MODEL POLICING; MENTAL ILLNESS CALLS.] 44.56 $150,000 the first year is to eliminate 44.57 the onetime appropriation for the model 44.58 policing program mental illness calls. 45.1 [CAMP RIPLEY WEEKEND CAMP.] $175,000 45.2 the second year is to eliminate the 45.3 Camp Ripley weekend camp. 45.4 [VIOLENCE PREVENTION COUNCIL.] $75,000 45.5 the first year and $75,000 the second 45.6 year are to eliminate grants to the 45.7 violence prevention council. 45.8 [GANG STRIKE FORCE.] $117,000 the first 45.9 year and $117,000 the second year are 45.10 to reduce the appropriation for gang 45.11 strike force grants. The base for this 45.12 program shall be $1,515,000 for the 45.13 fiscal year beginning July 1, 2003. 45.14 [STAFF SAVINGS.] $176,000 the second 45.15 year is to reduce staff. The base for 45.16 the office of drug policy and violence 45.17 prevention shall be reduced by $176,000 45.18 in fiscal year 2004 and $176,000 in 45.19 fiscal year 2005 to reflect decreased 45.20 funding for staff. 45.21 [AUTOMOBILE THEFT PREVENTION ACCOUNT.] 45.22 By June 30, 2002, the commissioner of 45.23 finance shall transfer the available 45.24 unencumbered balance from the 45.25 automobile theft prevention account in 45.26 the special revenue fund to the general 45.27 fund estimated to be $1,317,000. 45.28 Minnesota Statutes, section 168A.40, 45.29 subdivision 4, does not apply to money 45.30 transferred to the general fund under 45.31 this paragraph. 45.32 The commissioner may not reduce the 45.33 current allocation of federal Byrne 45.34 grant funds for the youth experiencing 45.35 alternatives (YEA)/Camp Ripley programs. 45.36 Subd. 7. State Patrol - 45.37 Capitol Security -0- (175,000) 45.38 This amount reduces the cost of 45.39 executive protection and reduces the 45.40 agency's budget base for executive 45.41 protection. 45.42 Subd. 8. Administration 45.43 and Related Services -0- (500,000) 45.44 This reduction is from the amount 45.45 appropriated from the general fund for 45.46 transfer by the commissioner of finance 45.47 to the trunk highway fund on December 45.48 31, 2002. This reduction reduces the 45.49 agency's budget base by $500,000. 45.50 Subd. 9. Driver and 45.51 Vehicle Services -0- (200,000) 45.52 The commissioner shall not achieve this 45.53 reduction by reducing the number of 45.54 driver license examining stations in 45.55 greater Minnesota below the number open 45.56 on April 1, 2002. This reduction 45.57 reduces the agency's budget base by 45.58 $200,000. 45.59 Sec. 5. CRIME VICTIM OMBUDSMAN -0- (411,000) 46.1 Sec. 6. Minnesota Statutes 2000, section 13.871, 46.2 subdivision 5, is amended to read: 46.3 Subd. 5. [CRIME VICTIMS.] (a) [CRIME VICTIM NOTICE OF 46.4 RELEASE.] Data on crime victims who request notice of an 46.5 offender's release are classified under section 611A.06. 46.6 (b) [SEX OFFENDER HIV TESTS.] Results of HIV tests of sex 46.7 offenders under section 611A.19, subdivision 2, are classified 46.8 under that section. 46.9 (c) [BATTERED WOMEN.] Data on battered women maintained by 46.10 grantees for emergency shelter and support services for battered 46.11 women are governed by section 611A.32, subdivision 5. 46.12 (d) [VICTIMS OF DOMESTIC ABUSE.] Data on battered women and 46.13 victims of domestic abuse maintained by grantees and recipients 46.14 of per diem payments for emergency shelter for battered women 46.15 and support services for battered women and victims of domestic 46.16 abuse are governed by sections 611A.32, subdivision 5, and 46.17 611A.371, subdivision 3. 46.18 (e) [CRIME VICTIM CLAIMS FOR REPARATIONS.] Claims and 46.19 supporting documents filed by crime victims seeking reparations 46.20 are classified under section 611A.57, subdivision 6. 46.21 (f) [CRIME VICTIMOMBUDSMANOVERSIGHT ACT.] Data 46.22 maintained by thecrime victim ombudsmancommissioner of public 46.23 safety under the Crime Victim Oversight Act are classified under 46.24 section 611A.74, subdivision 2. 46.25 Sec. 7. Minnesota Statutes 2001 Supplement, section 46.26 16A.88, subdivision 1, is amended to read: 46.27 Subdivision 1. [GREATER MINNESOTA TRANSIT FUND.] The 46.28 greater Minnesota transit fund is established within the state 46.29 treasury. Money in the fund is annually appropriated to the 46.30 commissioner of transportation for assistance to transit systems 46.31 outside the metropolitan area under section 174.24. Beginning 46.32 in fiscal year 2003, the commissioner may use up to $400,000 46.33 each year for administration of the transit program. 46.34 Sec. 8. Minnesota Statutes 2000, section 135A.15, 46.35 subdivision 1, is amended to read: 46.36 Subdivision 1. [POLICY REQUIRED.] The board of trustees of 47.1 the Minnesota state colleges and universities shall, and the 47.2 University of Minnesota is requested to, adopt a clear, 47.3 understandable written policy on sexual harassment and sexual 47.4 violence that informs victims of their rights under the crime 47.5 victims bill of rights, including the right to assistance from 47.6 the crime victims reparations board and theoffice of the crime47.7victim ombudsmancommissioner of public safety. The policy must 47.8 apply to students and employees and must provide information 47.9 about their rights and duties. The policy must apply to 47.10 criminal incidents occurring on property owned by the 47.11 post-secondary system or institution in which the victim is a 47.12 student or employee of that system or institution. It must 47.13 include procedures for reporting incidents of sexual harassment 47.14 or sexual violence and for disciplinary actions against 47.15 violators. During student registration, each technical college, 47.16 community college, or state university shall, and the University 47.17 of Minnesota is requested to, provide each student with 47.18 information regarding its policy. A copy of the policy also 47.19 shall be posted at appropriate locations on campus at all 47.20 times. Each private post-secondary institution that is an 47.21 eligible institution as defined in section 136A.101, subdivision 47.22 4, must adopt a policy that meets the requirements of this 47.23 section. 47.24 Sec. 9. Minnesota Statutes 2000, section 168A.40, 47.25 subdivision 4, is amended to read: 47.26 Subd. 4. [AUTOMOBILE THEFT PREVENTION ACCOUNT.] A special 47.27 revenue account is created in the state treasury to be credited 47.28 with the proceeds of the surcharge imposed under subdivision 3. 47.29 Of the revenue in the account, $1,300,000 each year must be 47.30 transferred to the general fund. Revenues in excess of 47.31 $1,300,000 each year may be used only for the automobile theft 47.32 prevention program described in section 299A.75. 47.33 Sec. 10. Minnesota Statutes 2001 Supplement, section 47.34 171.29, subdivision 2, is amended to read: 47.35 Subd. 2. [REINSTATEMENT FEES AND SURCHARGES, ALLOCATION.] 47.36 (a) A person whose driver's license has been revoked as provided 48.1 in subdivision 1, except under section 169A.52, 169A.54, or 48.2 609.21, shall pay a $30 fee before the driver's license is 48.3 reinstated. 48.4 (b) A person whose driver's license has been revoked as 48.5 provided in subdivision 1 under section 169A.52, 169A.54, or 48.6 609.21, shall pay a $250 fee plus a $40 surcharge before the 48.7 driver's license is reinstated. Beginning July 1, 2002, the 48.8 surcharge is $145. Beginning July 1, 2003, the surcharge is 48.9 $380. The $250 fee is to be credited as follows: 48.10 (1) Twenty percent must be credited to the trunk highway 48.11 fund. 48.12 (2)Fifty-fiveSixty-seven percent must be credited to the 48.13 general fund. 48.14 (3) Eight percent must be credited to a separate account to 48.15 be known as the bureau of criminal apprehension account. Money 48.16 in this account may be appropriated to the commissioner of 48.17 public safety and the appropriated amount must be apportioned 80 48.18 percent for laboratory costs and 20 percent for carrying out the 48.19 provisions of section 299C.065. 48.20 (4)Twelve percent must be credited to a separate account48.21to be known as the alcohol-impaired driver education account.48.22Money in the account is appropriated as follows:48.23(i) in fiscal year 2002:48.24(A) the first $200,000 to the commissioner of children,48.25families, and learning for programs for elementary and secondary48.26school students; and48.27(B) the remainder credited to the commissioner of public48.28safety to be spent as grants through March 31, 2002, to the48.29Minnesota highway safety center at St. Cloud State University48.30for programs relating to alcohol and highway safety education in48.31elementary and secondary schools and then from April 1, 2002,48.32through June 30, 2002, for programs described in item (ii); and48.33(ii) after June 30, 2002, to the commissioner of public48.34safety for grants for programs relating to alcohol and highway48.35safety education in elementary and secondary schools.48.36(5)Five percent must be credited to a separate account to 49.1 be known as the traumatic brain injury and spinal cord injury 49.2 account. The money in the account is annually appropriated to 49.3 the commissioner of health to be used as follows: 35 percent 49.4 for a contract with a qualified community-based organization to 49.5 provide information, resources, and support to assist persons 49.6 with traumatic brain injury and their families to access 49.7 services, and 65 percent to maintain the traumatic brain injury 49.8 and spinal cord injury registry created in section 144.662. For 49.9 the purposes of this clause, a "qualified community-based 49.10 organization" is a private, not-for-profit organization of 49.11 consumers of traumatic brain injury services and their family 49.12 members. The organization must be registered with the United 49.13 States Internal Revenue Service under section 501(c)(3) as a 49.14 tax-exempt organization and must have as its purposes: 49.15 (i) the promotion of public, family, survivor, and 49.16 professional awareness of the incidence and consequences of 49.17 traumatic brain injury; 49.18 (ii) the provision of a network of support for persons with 49.19 traumatic brain injury, their families, and friends; 49.20 (iii) the development and support of programs and services 49.21 to prevent traumatic brain injury; 49.22 (iv) the establishment of education programs for persons 49.23 with traumatic brain injury; and 49.24 (v) the empowerment of persons with traumatic brain injury 49.25 through participation in its governance. 49.26 No patient's name, identifying information or identifiable 49.27 medical data will be disclosed to the organization without the 49.28 informed voluntary written consent of the patient or patient's 49.29 guardian, or if the patient is a minor, of the parent or 49.30 guardian of the patient. 49.31 (c) The surcharge must be credited to a separate account to 49.32 be known as the remote electronic alcohol monitoring program 49.33 account. The commissioner shall transfer the balance of this 49.34 account to the commissioner of finance on a monthly basis for 49.35 deposit in the general fund. 49.36 (d) When these fees are collected by a licensing agent, 50.1 appointed under section 171.061, a handling charge is imposed in 50.2 the amount specified under section 171.061, subdivision 4. The 50.3 reinstatement fees and surcharge must be deposited in an 50.4 approved state depository as directed under section 171.061, 50.5 subdivision 4. 50.6 Sec. 11. Minnesota Statutes 2001 Supplement, section 50.7 256.022, subdivision 1, is amended to read: 50.8 Subdivision 1. [CREATION.] The commissioner of human 50.9 services shall establish a review panel for purposes of 50.10 reviewing investigating agency determinations regarding 50.11 maltreatment of a child in a facility in response to requests 50.12 received under section 626.556, subdivision 10i, paragraph (b). 50.13 The review panel consists of the commissioners of health; human 50.14 services; children, families, and learning; public safety; and 50.15 corrections;the ombudsman for crime victims;and the ombudsman 50.16 for mental health and mental retardation; or their designees. 50.17 Sec. 12. Minnesota Statutes 2001 Supplement, section 50.18 299A.75, subdivision 1, is amended to read: 50.19 Subdivision 1. [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 50.20 (a) The commissioner of public safety shall: 50.21 (1) develop and sponsor the implementation of statewide 50.22 plans, programs, and strategies to combat automobile theft, 50.23 improve the administration of the automobile theft laws, and 50.24 provide a forum for identification of critical problems for 50.25 those persons dealing with automobile theft; 50.26 (2) coordinate the development, adoption, and 50.27 implementation of plans, programs, and strategies relating to 50.28 interagency and intergovernmental cooperation with respect to 50.29 automobile theft enforcement; 50.30 (3) annually audit the plans and programs that have been 50.31 funded in whole or in part to evaluate the effectiveness of the 50.32 plans and programs and withdraw funding should the commissioner 50.33 determine that a plan or program is ineffective or is no longer 50.34 in need of further financial support from the fund; 50.35 (4) develop a plan of operation including: 50.36 (i) an assessment of the scope of the problem of automobile 51.1 theft, including areas of the state where the problem is 51.2 greatest; 51.3 (ii) an analysis of various methods of combating the 51.4 problem of automobile theft; 51.5 (iii) a plan for providing financial support to combat 51.6 automobile theft; 51.7 (iv) a plan for eliminating car hijacking; and 51.8 (v) an estimate of the funds required to implement the 51.9 plan; and 51.10 (5) distribute money pursuant to subdivision 3 from the 51.11 automobile theft prevention special revenue account for 51.12 automobile theft prevention activities, including: 51.13 (i) paying the administrative costs of the program; 51.14 (ii) providing financial support to the state patrol and 51.15 local law enforcement agencies for automobile theft enforcement 51.16 teams; 51.17 (iii) providing financial support to state or local law 51.18 enforcement agencies for programs designed to reduce the 51.19 incidence of automobile theft and for improved equipment and 51.20 techniques for responding to automobile thefts; 51.21 (iv) providing financial support to local prosecutors for 51.22 programs designed to reduce the incidence of automobile theft; 51.23 (v) providing financial support to judicial agencies for 51.24 programs designed to reduce the incidence of automobile theft; 51.25 (vi) providing financial support for neighborhood or 51.26 community organizations or business organizations for programs 51.27 designed to reduce the incidence of automobile theft and to 51.28 educate people about the common methods of automobile theft, the 51.29 models of automobiles most likely to be stolen, and the times 51.30 and places automobile theft is most likely to occur; and 51.31 (vii) providing financial support for automobile theft 51.32 educational and training programs for state and local law 51.33 enforcement officials, driver and vehicle services exam and 51.34 inspections staff, and members of the judiciary. 51.35 (b) The commissioner may not spend in any fiscal year more 51.36 than ten percent of the money in the fund for the program's 52.1 administrative and operating costs. The commissioner is 52.2 annually appropriated and must distribute thefullamount of the 52.3 proceeds credited to the automobile theft prevention special 52.4 revenue account each year, less the transfer of $1,300,000 each 52.5 year to the general fund described in section 168A.40, 52.6 subdivision 4. 52.7 Sec. 13. Minnesota Statutes 2000, section 299F.011, is 52.8 amended by adding a subdivision to read: 52.9 Subd. 7. [FEES.] A fee of $100 shall be charged by the 52.10 state fire marshal for each plan review involving: 52.11 (1) flammable liquids under Minnesota Rules, part 52.12 7510.3650; 52.13 (2) motor vehicle fuel-dispensing stations under Minnesota 52.14 Rules, part 7510.3610; or 52.15 (3) liquefied petroleum gases under Minnesota Rules, part 52.16 7510.3670. 52.17 Sec. 14. Minnesota Statutes 2000, section 299L.02, 52.18 subdivision 7, is amended to read: 52.19 Subd. 7. [REVOLVING ACCOUNT.] The director shall deposit 52.20 in a separate account in the state treasury all money received 52.21 from Indian tribal governments for charges for investigations 52.22 and background checks under compacts negotiated under section 52.23 3.9221, except for $7 from each charge that shall be deposited 52.24 in the general fund. Money in the account is appropriated to 52.25 the director for the purpose of carrying out the director's 52.26 powers and duties under those compacts. 52.27 Sec. 15. Minnesota Statutes 2000, section 299L.07, 52.28 subdivision 5, is amended to read: 52.29 Subd. 5. [INVESTIGATION.] Before a license under this 52.30 section is granted, the director may conduct a background and 52.31 financial investigation of the applicant, including the 52.32 applicant's sources of financing. The director may, or shall 52.33 when required by law, require that fingerprints be taken and the 52.34 director may forward the fingerprints to the Federal Bureau of 52.35 Investigation for a national criminal history check. The 52.36 director may charge an investigation fee to cover the cost of 53.1 the investigation. Of this fee, $7 from each charge shall be 53.2 deposited in the general fund. 53.3 Sec. 16. Minnesota Statutes 2000, section 611A.371, 53.4 subdivision 1, is amended to read: 53.5 Subdivision 1. [PURPOSE.] The purpose of theper diem53.6 grant program is to provide reimbursement in a timely, efficient 53.7 manner to local programs for the reasonable and necessary costs 53.8 of providing battered women and their children with food, 53.9 lodging, and safety.Per diemGrant funding may not be used for 53.10 other purposes. 53.11 Sec. 17. Minnesota Statutes 2001 Supplement, section 53.12 611A.372, is amended to read: 53.13 611A.372 [DUTIES OF DIRECTOR.] 53.14 In addition to any other duties imposed by law, the 53.15 director, with the approval of the commissioner of public 53.16 safety, shall: 53.17 (1) supervise the administration ofper diemgrant payments 53.18 to designated shelter facilities; 53.19 (2) collect data on shelter facilities; 53.20 (3) conduct an annual evaluation of theper diemgrant 53.21 program; 53.22 (4) report to the governor and the legislature on the need 53.23 for emergency secure shelter; 53.24 (5) develop an application process for shelter facilities 53.25 to follow in seeking reimbursement under theper diemgrant 53.26 program; and 53.27 (6) adopt rules to implement and administer sections 53.28 611A.37 to 611A.375. 53.29 Sec. 18. Minnesota Statutes 2000, section 611A.373, is 53.30 amended to read: 53.31 611A.373 [PAYMENTS.] 53.32 Subdivision 1. [PAYMENTREQUESTS.] Payments to designated 53.33 shelter facilities must be in the form of a grant. Designated 53.34 shelter facilities may submit requests for payment monthly based 53.35 onthe number of persons housedtheir expenses. The process for 53.36 the submission of payments and for the submission of requests 54.1 may be established by the director. Upon approval of the 54.2 request for payment by the center, payments shall be made 54.3 directly to designated shelter facilities fromper diemgrant 54.4 funds on behalf of women and their children who reside in the 54.5 shelter facility. Payments made to a designated shelter 54.6 facility must not exceed theannual reservegrant amount for 54.7 that facility unless approved by the director. These payments 54.8 must not affect the eligibility of individuals who reside in 54.9 shelter facilities for public assistance benefits, except when 54.10 required by federal law or regulation. 54.11 Subd. 2. [RESERVE GRANT AMOUNT.] The center shall 54.12 calculateannually the reservethe grant amount for each 54.13 designated shelter facility. This calculation may be based upon 54.14 program type, average occupancy rates, and licensed capacity 54.15 limits. The total of allreservegrant amounts shall not exceed 54.16 the legislativeper diemappropriation. 54.17 Subd. 3. [ACCOUNTABILITY.] Shelter facilities must comply 54.18 with reporting requirements and any other measures imposed by 54.19 the Minnesota center for crime victim services to improve 54.20 accountability and program outcomes including, but not limited 54.21 to, information on all restricted or unrestricted fund balances. 54.22 Sec. 19. Minnesota Statutes 2000, section 611A.72, is 54.23 amended to read: 54.24 611A.72 [CITATION.] 54.25 Sections 611A.72 to 611A.74 may be cited as the "Crime 54.26 VictimOmbudsmanOversight Act." 54.27 Sec. 20. Minnesota Statutes 2000, section 611A.73, 54.28 subdivision 2, is amended to read: 54.29 Subd. 2. [APPROPRIATE AUTHORITY.] "Appropriate authority" 54.30 includes anyone who is the subject of a complaint under sections 54.31 611A.72 to 611A.74 to thecrime victim ombudsmancommissioner or 54.32 anyone within the agency who is in a supervisory position with 54.33 regard to one who is the subject of a complaint under sections 54.34 611A.72 to 611A.74. 54.35 Sec. 21. Minnesota Statutes 2000, section 611A.73, is 54.36 amended by adding a subdivision to read: 55.1 Subd. 6. [COMMISSIONER.] "Commissioner" means the 55.2 commissioner of public safety. 55.3 Sec. 22. Minnesota Statutes 2001 Supplement, section 55.4 611A.74, subdivision 1, is amended to read: 55.5 Subdivision 1. [CREATIONAUTHORITY UNDER THIS ACT.]The55.6office of crime victim ombudsman for Minnesota is created. The55.7ombudsman shall be appointed by the governor, shall serve in the55.8unclassified service at the pleasure of the governor, and shall55.9be selected without regard to political affiliation. No person55.10may serve as ombudsman while holding any other public office.55.11The ombudsman is directly accountable to the governor and must55.12periodically report to the commissioner of public safety on the55.13operations and activities of the office.Theombudsman55.14 commissioner shall have the authority under sections 611A.72 to 55.15 611A.74 to investigate decisions, acts, and other matters of the 55.16 criminal justice system so as to promote the highest attainable 55.17 standards of competence, efficiency, and justice for crime 55.18 victims in the criminal justice system. 55.19 Sec. 23. Minnesota Statutes 2000, section 611A.74, 55.20 subdivision 2, is amended to read: 55.21 Subd. 2. [DUTIES.] Thecrime victim ombudsmancommissioner 55.22 may investigate complaints concerning possible violation of the 55.23 rights of crime victims or witnesses provided under this 55.24 chapter, the delivery of victim services by victim assistance 55.25 programs, the administration of the crime victims reparations 55.26 act, and other complaints of mistreatment by elements of the 55.27 criminal justice system or victim assistance programs. The 55.28ombudsmancommissioner shall act as a liaison, when the 55.29ombudsmancommissioner deems necessary, between agencies, either 55.30 in the criminal justice system or in victim assistance programs, 55.31 and victims and witnesses. Theombudsmancommissioner may be 55.32 concerned with activities that strengthen procedures and 55.33 practices which lessen the risk that objectionable 55.34 administrative acts will occur. Theombudsmancommissioner must 55.35be made available through the use of a toll free telephone55.36number and shallanswer questions concerning the criminal 56.1 justice system and victim services put to theombudsman56.2 commissioner by victims and witnesses in accordance with 56.3 theombudsman'scommissioner's knowledge of the facts or law, 56.4 unless the information is otherwise restricted. Theombudsman56.5 commissioner shall establish a procedure for referral to the 56.6 crime victim crisis centers, the crime victims reparations 56.7 board, and other victim assistance programs when services are 56.8 requested by crime victims or deemed necessary by theombudsman56.9 commissioner. 56.10 Theombudsman'scommissioner's files are confidential data 56.11 as defined in section 13.02, subdivision 3, during the course of 56.12 an investigation or while the files are active. Upon completion 56.13 of the investigation or when the files are placed on inactive 56.14 status, they are private data on individuals as defined in 56.15 section 13.02, subdivision 12. 56.16 Sec. 24. Minnesota Statutes 2000, section 611A.74, 56.17 subdivision 3, is amended to read: 56.18 Subd. 3. [POWERS.] Thecrime victim ombudsmancommissioner 56.19 has those powers necessary to carry out the duties set out in 56.20 subdivision 2, including: 56.21 (a) Theombudsmancommissioner may investigate, with or 56.22 without a complaint, any action of an element of the criminal 56.23 justice system or a victim assistance program included in 56.24 subdivision 2. 56.25 (b) Theombudsmancommissioner may request and shall be 56.26 given access to information and assistance theombudsman56.27 commissioner considers necessary for the discharge of 56.28 responsibilities. Theombudsmancommissioner may inspect, 56.29 examine, and be provided copies of records and documents of all 56.30 elements of the criminal justice system and victim assistance 56.31 programs. Theombudsmancommissioner may request and shall be 56.32 given access to police reports pertaining to juveniles and 56.33 juvenile delinquency petitions, notwithstanding section 260B.171 56.34 or 260C.171. Any information received by theombudsman56.35 commissioner retains its data classification under chapter 13 56.36 while in theombudsman'scommissioner's possession. Juvenile 57.1 records obtained under this subdivision may not be released to 57.2 any person. 57.3 (c) Theombudsmancommissioner may prescribe the methods by 57.4 which complaints are to be made, received, and acted upon; may 57.5 determine the scope and manner of investigations to be made; and 57.6 subject to the requirements of sections 611A.72 to 611A.74, may 57.7 determine the form, frequency, and distribution ofombudsman57.8 commissioner conclusions, recommendations, and proposals. 57.9 (d) After completing investigation of a complaint, the 57.10ombudsmancommissioner shall inform in writing the complainant, 57.11 the investigated person or entity, and other appropriate 57.12 authorities of the action taken. If the complaint involved the 57.13 conduct of an element of the criminal justice system in relation 57.14 to a criminal or civil proceeding, theombudsman's57.15 commissioner's findings shall be forwarded to the court in which 57.16 the proceeding occurred. 57.17 (e) Before announcing a conclusion or recommendation that 57.18 expressly or impliedly criticizes an administrative agency or 57.19 any person, theombudsmancommissioner shall consult with that 57.20 agency or person. 57.21 Sec. 25. Minnesota Statutes 2000, section 611A.74, 57.22 subdivision 4, is amended to read: 57.23 Subd. 4. [NO COMPELLED TESTIMONY.] Neither the 57.24ombudsmancommissioner nor any member of theombudsman's57.25 commissioner's staff may be compelled to testify or produce 57.26 evidence in any judicial or administrative proceeding with 57.27 respect to matters involving the exercise of official 57.28 duties under sections 611A.72 to 611A.74 except as may be 57.29 necessary to enforce the provisions of this section. 57.30 Sec. 26. Minnesota Statutes 2000, section 611A.74, 57.31 subdivision 5, is amended to read: 57.32 Subd. 5. [RECOMMENDATIONS.] (a) On finding a complaint 57.33 valid after duly considering the complaint and whatever material 57.34 theombudsmancommissioner deems pertinent, theombudsman57.35 commissioner may recommend action to the appropriate authority. 57.36 (b) If theombudsmancommissioner makes a recommendation to 58.1 an appropriate authority for action, the authority shall, within 58.2 a reasonable time period, but not more than 30 days, inform the 58.3ombudsmancommissioner about the action taken or the reasons for 58.4 not complying with the recommendation. 58.5 (c) Theombudsmancommissioner may publish conclusions and 58.6 suggestions by transmitting them to the governor, the 58.7 legislature or any of its committees, the press, and others who 58.8 may be concerned. When publishing an opinion adverse to an 58.9 administrative agency, theombudsmancommissioner shall include 58.10 any statement the administrative agency may have made to 58.11 theombudsmancommissioner by way of explaining its past 58.12 difficulties or its present rejection of theombudsman's58.13 commissioner's proposals. 58.14 Sec. 27. Minnesota Statutes 2000, section 611A.74, 58.15 subdivision 6, is amended to read: 58.16 Subd. 6. [REPORTS.] In addition to whatever reports 58.17 theombudsmancommissioner may make from time to time, the 58.18ombudsmancommissioner shall biennially report to the 58.19 legislature and to the governor concerning the exercise 58.20 ofombudsmanthe commissioner's functions under sections 611A.72 58.21 to 611A.74 during the preceding biennium. The biennial report 58.22 is due on or before the beginning of the legislative session 58.23 following the end of the biennium. 58.24 Sec. 28. Laws 2001, First Special Session chapter 8, 58.25 article 4, section 10, subdivision 1, is amended to read: 58.26 Subdivision 1. Total 58.27 Appropriation88,001,00084,299,00058.28 87,851,000 84,149,000 58.29 Summary by Fund 58.30 2002 2003 58.31 General84,919,00081,195,00058.32 84,769,000 81,045,000 58.33 Special Revenue 2,674,000 2,687,000 58.34 State Government 58.35 Special Revenue 7,000 7,000 58.36 Environmental 47,000 49,000 58.37 Trunk Highway 354,000 361,000 59.1 [APPROPRIATIONS FOR PROGRAMS.] The 59.2 amounts that may be spent from this 59.3 appropriation for each program are 59.4 specified in the following subdivisions. 59.5 [DWI PENALTY FUNDS.] The commissioners 59.6 of public safety and transportation 59.7 must jointly report annually to the 59.8 chairs and ranking minority members of 59.9 the house of representatives and senate 59.10 committees having jurisdiction over 59.11 transportation and public safety 59.12 finance issues on the expenditure of 59.13 any federal funds available under the 59.14 repeat offender transfer program, 59.15 Public Law Number 105-206, section 164. 59.16 Sec. 29. Laws 2001, First Special Session chapter 8, 59.17 article 4, section 10, subdivision 7, is amended to read: 59.18 Subd. 7. Law Enforcement 59.19 and Community Grants 59.20 Summary by Fund 59.21 General6,942,0006,136,00059.22 6,792,000 5,986,000 59.23 Special Revenue 2,130,000 2,130,000 59.24 [UNENCUMBERED BALANCES.] Any 59.25 unencumbered balances remaining in the 59.26 first year do not cancel but are 59.27 available for the second year. 59.28 [ENCUMBERED BALANCES.] Notwithstanding 59.29 Minnesota Statutes, section 16A.28, 59.30 appropriations encumbered under 59.31 contract on or before June 30 each year 59.32 are available until the following June 59.33 30. 59.34 [SPECIAL REVENUE; RACIAL PROFILING.] 59.35 The appropriation from the special 59.36 revenue account must be spent according 59.37 to article 7, section 14. 59.38 [FUNDING TO COMBAT METHAMPHETAMINE 59.39 TRAFFICKING AND PRODUCTION.] $471,000 59.40 the first year is a onetime 59.41 appropriation for grants under 59.42 Minnesota Statutes, section 299C.065, 59.43 subdivision 1, clause (1), including 59.44 grants to the bureau of criminal 59.45 apprehension for increased law 59.46 enforcement costs relating to 59.47 methamphetamine trafficking and 59.48 production. Grant recipients must be 59.49 chosen by the office of drug policy and 59.50 violence prevention after consulting 59.51 with the narcotics enforcement 59.52 coordinating committee. Grants to drug 59.53 task force agencies must be allocated 59.54 in a balanced manner among rural, 59.55 suburban, and urban agencies. Grants 59.56 may be awarded and used for the 59.57 following items relating to clandestine 59.58 methamphetamine labs: 60.1 (1) increased general law enforcement 60.2 costs; 60.3 (2) training materials and public 60.4 awareness publications; 60.5 (3) peace officer training courses, 60.6 certification, and equipment; and 60.7 (4) reimbursements to law enforcement 60.8 agencies for extraordinary or unusual 60.9 overtime and investigative expenses. 60.10 Grants must not be used for 60.11 methamphetamine lab site cleanup or 60.12 disposal of seized equipment or 60.13 chemicals. Additionally, grants must 60.14 not supplant current local spending or 60.15 other state or federal grants allocated 60.16 by the commissioner for similar 60.17 purposes. 60.18 [GANG STRIKE FORCE GRANTS.] $750,000 60.19 the first year and $750,000 the second 60.20 year are onetime appropriations for 60.21 criminal gang strike force grants under 60.22 Minnesota Statutes, section 299A.66. 60.23 The commissioner of public safety must 60.24 provide direct administrative and 60.25 fiscal oversight for all grants awarded 60.26 under Minnesota Statutes, section 60.27 299A.66. 60.28 [USE OF BYRNE GRANTS.] The commissioner 60.29 must consider using a portion of 60.30 federal Byrne grant funds for grants to: 60.31 (1) the center for reducing rural 60.32 violence; 60.33 (2) organizations or agencies that 60.34 provide gang prevention services, such 60.35 as the boys and girls club, the youth 60.36 experiencing alternatives (YEA) 60.37 program, the police athletic league, 60.38 agencies eligible for Asian-American 60.39 juvenile crime intervention and 60.40 prevention grants under Minnesota 60.41 Statutes, section 299A.2994, 60.42 subdivision 3, clause (2), or other 60.43 similar organizations; and 60.44 (3) continue funding the pilot project 60.45 to provide neighborhood-based services 60.46 to crime victims and witnesses funded 60.47 in Laws 1999, chapter 216, article 1, 60.48 section 8, subdivision 3, and described 60.49 in Laws 1999, chapter 216, article 2, 60.50 section 23. 60.51 [JOINT DOMESTIC ABUSE PROSECUTION 60.52 UNIT.] $197,000 the first year is a 60.53 onetime appropriation for a grant to 60.54 the Ramsey county attorney's office to 60.55 continue funding the joint domestic 60.56 abuse prosecution unit. This 60.57 appropriation is available until June 60.58 30, 2003. 60.59 The Ramsey county attorney's office and 60.60 the St. Paul city attorney's office 61.1 shall continue the joint domestic abuse 61.2 prosecution unit pilot project 61.3 established by the legislature under 61.4 Laws 2000, chapters 471, section 3; and 61.5 488, article 6, section 10. The 61.6 appropriation must be used to continue 61.7 the pilot project beyond its first year 61.8 of operation and allow a meaningful 61.9 evaluation that will benefit other 61.10 jurisdictions in Minnesota. The unit 61.11 has authority to prosecute 61.12 misdemeanors, gross misdemeanors, and 61.13 felonies. The unit shall also 61.14 coordinate efforts with child 61.15 protection attorneys. The unit may 61.16 include four cross-deputized assistant 61.17 city attorneys and assistant county 61.18 attorneys and a police investigator. A 61.19 victim/witness advocate, a law clerk, a 61.20 paralegal, and a secretary may provide 61.21 support. 61.22 The goals of this pilot project are to: 61.23 (1) recognize children as both victims 61.24 and witnesses in domestic abuse 61.25 situations; 61.26 (2) recognize and respect the interests 61.27 of children in the prosecution of 61.28 domestic abuse; and 61.29 (3) reduce the exposure to domestic 61.30 violence for both adult and child 61.31 victims. 61.32 By January 15, 2002, the Ramsey county 61.33 attorney's office and the St. Paul city 61.34 attorney's office shall report to the 61.35 chairs and ranking minority members of 61.36 the senate and house of representatives 61.37 committees and divisions having 61.38 jurisdiction over criminal justice 61.39 policy and funding on the pilot 61.40 project. The report may include the 61.41 number and types of cases referred, the 61.42 number of cases charged, the outcome of 61.43 cases, and other relevant outcome 61.44 measures. 61.45 [COPS, HEAT, AND FINANCIAL CRIMES 61.46 INVESTIGATION UNIT GRANTS.] $250,000 61.47 the first year and $250,000 the second 61.48 year are onetime appropriations for 61.49 grants under either Minnesota Statutes, 61.50 section 299A.62 or 299A.68. Grants 61.51 awarded from this appropriation under 61.52 Minnesota Statutes, section 299A.62, 61.53 are for overtime for peace officers. 61.54 Of the total grants awarded from this 61.55 appropriation under Minnesota Statutes, 61.56 section 299A.62, 50 percent must go to 61.57 the St. Paul and Minneapolis police 61.58 departments and 50 percent must go to 61.59 other law enforcement agencies 61.60 statewide. Any amounts from this 61.61 appropriation awarded to the St. Paul 61.62 police department must be used to 61.63 increase the current degree of 61.64 implementation of the HEAT law 61.65 enforcement strategy. The HEAT law 62.1 enforcement strategy must be a 62.2 community-driven strategic initiative 62.3 that is used to target criminal conduct 62.4 in specific areas of St. Paul with 62.5 higher crime rates than the city 62.6 average. It must target offenders 62.7 based upon their criminal behavior and 62.8 not other factors and be planned and 62.9 implemented taking into consideration 62.10 the wishes of the targeted communities. 62.11 Grants awarded under Minnesota 62.12 Statutes, section 299A.68, may be used 62.13 to cover costs for salaries, equipment, 62.14 office space, and other necessary 62.15 services or expenses of a financial 62.16 crimes investigation task force. The 62.17 commissioner must distribute the grants 62.18 in a manner designed to be equitable to 62.19 the grantees given their contributions 62.20 to the investigation task force and to 62.21 encourage their continued participation. 62.22 Participating local units of government 62.23 must provide a 25 percent match from 62.24 nonstate funds or in-kind contributions 62.25 either directly from their budgets or 62.26 from businesses directly donating 62.27 support in order for the financial 62.28 crimes investigation task force to 62.29 obtain any grant funding under 62.30 Minnesota Statutes, section 299A.68. 62.31 This appropriation is available until 62.32 June 30, 2003. 62.33 [MODEL POLICING PROGRAM; MENTAL ILLNESS 62.34 CALLS.] $150,000 the first year is a 62.35 onetime appropriation for developing 62.36 and implementing up to four model 62.37 policing program pilot projects 62.38 required under Minnesota Statutes, 62.39 section 626.8441, subdivision 1, and to 62.40 produce required reports. 62.41 [AUTOMOBILE THEFT PREVENTION GRANTS.] 62.42 The commissioner may make grants under 62.43 Minnesota Statutes 2000, section 62.44 299A.75, to past grantees during the 62.45 time period before which the changes 62.46 made to that section in article 5, 62.47 sections 6 to 8, become operational. 62.48 [ADMINISTRATION COSTS.] Up to 2.5 62.49 percent of the grant funds appropriated 62.50 in this subdivision may be used to 62.51 administer the grant programs. 62.52 Sec. 30. Laws 2001, First Special Session chapter 8, 62.53 article 4, section 11, is amended to read: 62.54 Sec. 11. BOARD OF PEACE OFFICER 62.55 STANDARDS AND TRAINING4,692,0004,724,00062.56 4,604,000 4,633,000 62.57 [PEACE OFFICER TRAINING ACCOUNT.] This 62.58 appropriation is from the peace officer 62.59 training account in the special revenue 62.60 fund. Any receipts credited to the 62.61 peace officer training account in the 62.62 special revenue fund in the first year 62.63 in excess of$4,692,000$4,604,000 must 62.64 be transferred and credited to the 63.1 general fund. Any receipts credited to 63.2 the peace officer training account in 63.3 the special revenue fund in the second 63.4 year in excess of$4,724,000$4,633,000 63.5 must be transferred and credited to the 63.6 general fund. 63.7 Sec. 31. [WORKING GROUP ON CRIMINAL JUSTICE SYSTEM 63.8 EFFICIENCY.] 63.9 (a) The commissioners of corrections and public safety 63.10 shall convene a working group of criminal justice professionals 63.11 to identify and study ways to make the state's criminal justice 63.12 system more efficient and effective at both the state and local 63.13 levels. The chief justice of the supreme court and state public 63.14 defender are requested to take part in this working group. 63.15 The working group may be divided into subworking groups if 63.16 doing so will assist in meeting the working group's objectives. 63.17 The working group and each subworking group shall seek input 63.18 from criminal justice practitioners and individuals working 63.19 throughout the criminal justice area. To the extent feasible 63.20 and practical, the working group shall incorporate bench marking 63.21 and best practices components in carrying out its work. 63.22 (b) The commissioners of corrections and public safety, 63.23 with the input of the chief justice of the supreme court and 63.24 state public defender, shall report to the chairs and ranking 63.25 minority members of the house and senate committees with 63.26 jurisdiction over criminal justice policy and funding on its 63.27 findings and recommendations by January 15, 2003. 63.28 Sec. 32. [FILE AND DATA TRANSFER.] 63.29 On June 30, 2002, the crime victim ombudsman shall deliver 63.30 to the commissioner of public safety all files, records, and 63.31 data under the authority or control of the ombudsman relating to 63.32 all of the activities and investigations of the office of the 63.33 crime victim ombudsman. 63.34 Sec. 33. [REPEALER.] 63.35 (a) Minnesota Statutes 2000, sections 611A.37, subdivisions 63.36 6 and 7; and 611A.375, are repealed. 63.37 (b) Minnesota Statutes 2000, section 611A.74, subdivision 63.38 1a, is repealed. 64.1 Sec. 34. [EFFECTIVE DATE.] 64.2 (a) Sections 1 to 5, 9, 12, and 30 are effective the day 64.3 following final enactment. 64.4 (b) Sections 16, 17, and 33, paragraph (a), are effective 64.5 July 1, 2003. 64.6 (c) The amendments to section 18, subdivisions 1 and 2, are 64.7 effective July 1, 2003. Section 18, subdivision 3, is effective 64.8 the day following final enactment. 64.9 ARTICLE 8 64.10 ENVIRONMENT AND NATURAL RESOURCES 64.11 Section 1. [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS 64.12 AND REDUCTIONS.] 64.13 The dollar amounts in the columns under "APPROPRIATIONS" 64.14 are added to or, if shown in parentheses, are subtracted from 64.15 the appropriations in Laws 2001, First Special Session chapter 64.16 2, or other law, to the specified agencies. The appropriations 64.17 are from the general fund or other named fund and are available 64.18 for the fiscal years indicated for each purpose. The figure 64.19 "2002" or "2003" means that the addition to or subtraction from 64.20 the appropriations listed under the figure are for the fiscal 64.21 year ending June 30, 2002, or June 30, 2003, respectively. The 64.22 term "the first year" means the year ending June 30, 2002, and 64.23 the term "the second year" means the year ending June 30, 2003. 64.24 SUMMARY BY FUND 64.25 2002 2003 TOTAL 64.26 APPROPRIATIONS 64.27 General $ ( 103,000)$ (12,797,000)$ (12,900,000) 64.28 Solid Waste 1,030,000 2,541,000 3,571,000 64.29 Environmental -0- 683,000 683,000 64.30 Natural Resources 800,000 850,000 1,650,000 64.31 Environment and Natural 64.32 Resources Trust Fund 158,000 158,000 316,000 64.33 TOTAL $ 1,885,000 $ (8,565,000)$ (6,680,000) 64.34 TRANSFERS IN $ -0- $ (1,300,000)$ (1,300,000) 64.35 APPROPRIATIONS 64.36 Available for the Year 64.37 Ending June 30 64.38 2002 2003 65.1 Sec. 2. POLLUTION CONTROL 65.2 AGENCY 65.3 Subdivision 1. Total 65.4 Appropriations $ 927,000 $ (1,437,000) 65.5 Summary by Fund 65.6 General (103,000) (3,161,000) 65.7 Solid Waste 1,030,000 1,041,000 65.8 Environmental -0- 683,000 65.9 The amounts reduced from the 65.10 appropriations in Laws 2001, First 65.11 Special Session chapter 2, section 2, 65.12 are specified in the following 65.13 subdivisions. 65.14 Subd. 2. Protection of the Water 65.15 1,300,000 (1,300,000) 65.16 Summary by Fund 65.17 General 1,300,000 (1,983,000) 65.18 Environmental -0- 683,000 65.19 The appropriation in Laws 2001, First 65.20 Special Session chapter 2, section 2, 65.21 subdivision 2, for the clean water 65.22 partnership program is $3,648,000 the 65.23 first year and $1,048,000 the second 65.24 year. The annual base level funding 65.25 for the clean water partnership program 65.26 is $2,348,000 beginning in fiscal year 65.27 2004. 65.28 The annual base level funding from the 65.29 general fund for protection of the 65.30 water is increased by $40,000 beginning 65.31 in fiscal year 2004. 65.32 Subd. 3. Protection of the Land 65.33 -0- -0- 65.34 Summary by Fund 65.35 General (1,030,000) (1,041,000) 65.36 Solid Waste 1,030,000 1,041,000 65.37 Subd. 4. Administrative Support 65.38 (373,000) (137,000) 65.39 Sec. 3. OFFICE OF 65.40 ENVIRONMENTAL ASSISTANCE -0- (549,000) 65.41 Summary by Fund 65.42 General -0- (2,049,000) 65.43 Solid Waste -0- 1,500,000 65.44 $1,401,000 the second year is a 65.45 reduction from the money appropriated 66.1 for SCORE block grants to counties in 66.2 Laws 2001, First Special Session 66.3 chapter 2, section 3. 66.4 $1,500,000 the second year is 66.5 appropriated from the solid waste fund 66.6 for mixed municipal solid waste 66.7 processing payments under Minnesota 66.8 Statutes, section 115A.545. 66.9 Sec. 4. ZOOLOGICAL BOARD -0- (383,000) 66.10 Sec. 5. NATURAL RESOURCES 66.11 Subdivision 1. Total 66.12 Appropriations 800,000 (4,535,000) 66.13 Summary by Fund 66.14 General -0- (5,385,000) 66.15 Natural Resources 800,000 850,000 66.16 The amounts reduced from the 66.17 appropriations in Laws 2001, First 66.18 Special Session chapter 2, section 5, 66.19 are specified in the following 66.20 subdivisions. 66.21 Subd. 2. Land and Mineral Resources Management 66.22 -0- (89,000) 66.23 $33,000 the second year of this 66.24 reduction is from iron ore cooperative 66.25 research. 66.26 The nonstate match amount required for 66.27 the second year of the iron ore 66.28 cooperative research appropriation in 66.29 Laws 2001, First Special Session 66.30 chapter 2, section 5, subdivision 2, is 66.31 reduced by $20,000. 66.32 $30,000 the second year of this 66.33 reduction is from minerals 66.34 diversification. 66.35 $15,000 the second year of this 66.36 reduction is from minerals cooperative 66.37 environmental research. 66.38 The nonstate match amount required for 66.39 the second year of the minerals 66.40 cooperative environmental research 66.41 appropriation in Laws 2001, First 66.42 Special Session chapter 2, section 5, 66.43 subdivision 2, is reduced by $7,000. 66.44 Subd. 3. Water Resources Management 66.45 -0- (563,000) 66.46 Subd. 4. Forest Management 66.47 -0- (599,000) 66.48 $300,000 the second year of this 66.49 reduction is from the programs and 66.50 practices on state, county, and private 66.51 lands to regenerate and protect 67.1 Minnesota's white pine. 67.2 The amount available for matching funds 67.3 in the second year of the appropriation 67.4 for white pine regeneration and 67.5 protection in Laws 2001, First Special 67.6 Session chapter 2, section 5, 67.7 subdivision 4, is reduced by $112,000 67.8 for nonindustrial private forest lands, 67.9 and the amount for matching funds for 67.10 county administered lands is reduced by 67.11 $60,000. 67.12 $200,000 the second year of this 67.13 reduction is from the forest resources 67.14 council for implementation of the 67.15 Sustainable Forest Resources Act. 67.16 Subd. 5. Parks and Recreation Management 67.17 -0- (317,000) 67.18 In fiscal year 2004, the annual base 67.19 level funding for state parks and 67.20 recreation areas is decreased by 67.21 $250,000 from the 2003 level. 67.22 In fiscal year 2004, the annual base 67.23 level funding for metropolitan area 67.24 regional parks maintenance and 67.25 operations is decreased by $400,000 67.26 from the 2003 level. 67.27 The appropriation specified in Laws 67.28 2001, First Special Session chapter 2, 67.29 section 5, subdivision 5, clause (10), 67.30 may be used for state park operations. 67.31 $25,000 from money appropriated in the 67.32 second year for state parks and 67.33 recreation areas is for a grant to 67.34 Taylors Falls for fire and rescue 67.35 operations in support of Interstate 67.36 park. 67.37 Subd. 6. Trails and Waterways Management 67.38 800,000 523,000 67.39 Summary by Fund 67.40 General -0- (177,000) 67.41 Natural Resources 800,000 700,000 67.42 In addition to the appropriation made 67.43 for this purpose under Laws 2001, First 67.44 Special Session chapter 2, section 5, 67.45 subdivision 6, $800,000 the first year 67.46 and $700,000 the second year are 67.47 appropriated from the snowmobile trails 67.48 and enforcement account for the 67.49 grant-in-aid trail system. 67.50 Subd. 7. Fish Management 67.51 -0- (154,000) 67.52 $134,000 the second year of this 67.53 reduction is from the reinvest in 67.54 Minnesota programs of game and fish, 68.1 critical habitat, and wetlands 68.2 established under Minnesota Statutes, 68.3 section 84.95, subdivision 2. 68.4 $20,000 the second year of this 68.5 reduction is from aquatic plant 68.6 restoration. 68.7 Subd. 8. Wildlife Management 68.8 -0- (110,000) 68.9 Subd. 9. Ecological Services 68.10 -0- (44,000) 68.11 This reduction is from the reinvest in 68.12 Minnesota programs of game and fish, 68.13 critical habitat, and wetlands 68.14 established under Minnesota Statutes, 68.15 section 84.95, subdivision 2. 68.16 Subd. 10. Enforcement 68.17 -0- (199,000) 68.18 Summary by Fund 68.19 General -0- (349,000) 68.20 Natural Resources -0- 150,000 68.21 $150,000 the second year is from the 68.22 snowmobile trails and enforcement 68.23 account for snowmobile enforcement 68.24 activities. 68.25 Subd. 11. Operations Support 68.26 -0- (2,983,000) 68.27 $1,052,000 the second year of this 68.28 reduction is from the operations of 68.29 youth programs. The base appropriation 68.30 for this item is eliminated in fiscal 68.31 year 2004. 68.32 In fiscal year 2004, the entire annual 68.33 base level funding for operations 68.34 support is decreased by $901,000. 68.35 Sec. 6. BOARD OF WATER AND 68.36 SOIL RESOURCES -0- (1,754,000) 68.37 $382,000 the second year of this 68.38 reduction is from natural resources 68.39 block grants to local governments. The 68.40 block grants made from the remaining 68.41 amount of the appropriation may be used 68.42 to implement comprehensive local water 68.43 planning, the Wetland Conservation Act, 68.44 and the Shoreland Management Act. 68.45 $800,000 the second year of this 68.46 reduction is from grants to soil and 68.47 water conservation districts for 68.48 cost-sharing contracts for erosion 68.49 control and water quality management. 68.50 $49,000 the second year of this 68.51 reduction is from grants to watershed 69.1 districts and other local units of 69.2 government in the southern Minnesota 69.3 river basin study area 2 for floodplain 69.4 management. The appropriation for area 69.5 2 floodplain management terminates in 69.6 fiscal year 2004. 69.7 Sec. 7. SCIENCE MUSEUM OF MINNESOTA -0- (65,000) 69.8 Sec. 8. MINNESOTA RESOURCES 158,000 158,000 69.9 The appropriations in this section are 69.10 from the environment and natural 69.11 resources trust fund referred to in 69.12 Minnesota Statutes, section 116P.02, 69.13 subdivision 6. The appropriations in 69.14 this section are subject to the 69.15 requirements of Laws 2001, First 69.16 Special Session chapter 2, section 14, 69.17 subdivisions 11, 12, 14, 15, 16, and 69.18 17. Any unencumbered balance remaining 69.19 in the appropriations the first year 69.20 does not cancel and is available for 69.21 the second year. Unless otherwise 69.22 provided, the appropriations are 69.23 available until June 30, 2003, when 69.24 projects must be completed and final 69.25 products delivered. 69.26 The following amounts are appropriated 69.27 from the environment and natural 69.28 resources trust fund: 69.29 (1) $127,000 the first year and 69.30 $127,000 the second year are to the 69.31 University of Minnesota for the second 69.32 biennium of a two-biennia project to 69.33 complete production of a multipart, 69.34 televised film series of the history of 69.35 Minnesota's natural landscapes. This 69.36 appropriation must be matched by 69.37 $200,000 in nonstate money and is 69.38 available upon commitment of the 69.39 match. This appropriation is available 69.40 until June 30, 2004; and 69.41 (2) $31,000 the first year and $31,000 69.42 the second year are to reimburse the 69.43 legislative commission on Minnesota 69.44 resources for expenses and anticipated 69.45 costs of the citizens advisory 69.46 committee. 69.47 Sec. 9. TRANSFERS -0- 1,300,000 69.48 By June 30, 2003, the commissioner of 69.49 finance shall transfer $1,300,000 from 69.50 the Minnesota future resources fund to 69.51 the general fund. 69.52 Sec. 10. Minnesota Statutes 2000, section 85A.02, 69.53 subdivision 17, is amended to read: 69.54 Subd. 17. [ADDITIONAL POWERS.] The board may establish a 69.55 schedule of charges for admission to or the use of the Minnesota 69.56 zoological garden or any related facility. Notwithstanding 69.57 section 16A.1283, legislative approval is not required for the 70.1 board to establish a schedule of charges for admission or use of 70.2 the Minnesota zoological garden or related facilities. The 70.3 board shall have a policy admitting elementary school children 70.4 at no charge when they are part of an organized school 70.5 activity. The Minnesota zoological garden will offer free 70.6 admission throughout the year to economically disadvantaged 70.7 Minnesota citizens equal to ten percent of the average annual 70.8 attendance. However, the zoo may charge at any time for 70.9 parking, special services, and for admission to special 70.10 facilities for the education, entertainment, or convenience of 70.11 visitors. The board may provide for the purchase, reproduction, 70.12 and sale of gifts, souvenirs, publications, informational 70.13 materials, food and beverages, and grant concessions for the 70.14 sale of these items. 70.15 Sec. 11. Minnesota Statutes 2001 Supplement, section 70.16 93.2235, subdivision 1, is amended to read: 70.17 Subdivision 1. [COMMISSIONER.] The commissioner shall 70.18 establish a program to award grants to taconite mining companies 70.19 for: 70.20 (1) taconite pellet product improvements; 70.21 (2) value-added production of taconite iron ore; or 70.22 (3) cost-savings production improvements at Minnesota 70.23 taconite plants. 70.24 An amount equal to the sum of money transferred to the 70.25 general fund under section 93.223, subdivision 1, reduced by 70.26 $100,000, is annually appropriated from the general fund to the 70.27 commissioner for the purposes of this section. 70.28[EFFECTIVE DATE.] This section is effective July 1, 2002. 70.29 Sec. 12. Minnesota Statutes 2001 Supplement, section 70.30 115A.545, subdivision 1, is amended to read: 70.31 Subdivision 1. [DEFINITION.] (a) For the purpose of this 70.32 section, the following terms have the meanings given them. 70.33 (b) "Processed" means mixed municipal solid waste that has 70.34 been: 70.35 (1) burned for energy recovery; or 70.36 (2) processed into usable compost or refuse derived fuel. 71.1 (c) "Processing facility" means a facility designed to burn 71.2 mixed municipal solid waste for energy recovery or designed to 71.3 process mixed municipal solid waste into usable compost or 71.4 refuse-derived fuel. 71.5 (d) "County" includes a consortium of counties operating 71.6 under a solid waste management joint powers agreement. 71.7[EFFECTIVE DATE.] This section is effective July 1, 2002. 71.8 Sec. 13. Minnesota Statutes 2001 Supplement, section 71.9 115A.545, subdivision 2, is amended to read: 71.10 Subd. 2. [PROCESSING PAYMENT.] (a) The director shall pay 71.11 counties a processing payment for each ton of mixed municipal 71.12 solid waste that is generated in the county and processed at a 71.13 resource recovery facilitylocated in Minnesota. The processing 71.14 payment shall be $5 for each ton of mixed municipal solid waste 71.15 processed. 71.16 (b) The director shall also pay a processing payment to a 71.17 county that does not qualify under paragraph (a) that 71.18 constructed a processing facility and that either: 71.19 (1) contracts for waste generated in the county to be 71.20 received at a facility in that county; or 71.21 (2) has a comprehensive solid waste management plan 71.22 approved by the director under section 115A.46 that demonstrates 71.23 the intention of the county to make the processing facility 71.24 operational. 71.25 The processing payment shall be $5 for each ton of mixed 71.26 municipal waste generated in the county and delivered under 71.27 contract with the county. 71.28 (c) By the last day of October, January, April, and July, 71.29 each county claiming the processing payment shall file a claim 71.30 for payment with the director for the three previous months 71.31 certifying the number of tons of mixed municipal solid waste 71.32 that were generated in the county and processed at a resource 71.33 recovery facility. The director shall pay the processing 71.34 payments by November 15, February 15, May 15, and August 15 each 71.35 year. 71.36(c)(d) If the total amount for which all counties are 72.1 eligible in a quarter exceeds the amount available for payment, 72.2 the director shall make the payments on a pro rata basis. 72.3(d)(e) All of the money received by a county underthis72.4sectionparagraph (a) must be used to lower the tipping fee for 72.5 waste to be processed at a resource recovery facility. 72.6 (f) Amounts received by a county under: 72.7 (1) paragraph (b), clause (1), must be used to lower the 72.8 tipping fee for waste received at a waste management facility 72.9 within the county for waste received under contract with the 72.10 county at a facility in the county; or 72.11 (2) paragraph (b), clause (2), must be used to assist in 72.12 making the county's processing facility operational. 72.13[EFFECTIVE DATE.] This section is effective July 1, 2002. 72.14 Sec. 14. Minnesota Statutes 2000, section 115A.554, is 72.15 amended to read: 72.16 115A.554 [AUTHORITY OF SANITARY DISTRICTS.] 72.17 A sanitary district has the authorities and duties of 72.18 counties within the district's boundary for purposes of sections 72.19 115A.0716; 115A.46, subdivisions 4 and 5; 115A.48; 115A.545; 72.20 115A.551; 115A.552; 115A.553; 115A.919; 115A.929; 115A.93; 72.21 115A.96, subdivision 6; 115A.961; 116.072; 375.18, subdivision 72.22 14; 400.08; 400.16; and 400.161. 72.23[EFFECTIVE DATE.] This section is effective July 1, 2002. 72.24 Sec. 15. [INCREASE TO WATER QUALITY PERMIT FEES.] 72.25 (a) The pollution control agency shall collect water 72.26 quality permit application and annual fees that reflect the fees 72.27 in Minnesota Rules, part 7002.0310, increased to the amounts 72.28 described in paragraphs (b) to (g). 72.29 (b) The application fee for individual permits, general 72.30 permits, and general industrial stormwater permits is $240. 72.31 (c) The annual fees for individual National Pollutant 72.32 Discharge Elimination System permits for major municipal 72.33 facilities are as follows: 72.34 Design Flow in 72.35 Million Gallons Per Day Annual Fee 72.37 50 and over $175,750 72.38 20 to 49.99 $40,350 73.1 5 to 19.99 $14,350 73.2 Up to 4.99 $5,900 73.3 (d) The annual fees for individual National Pollutant 73.4 Discharge Elimination System permits for major nonmunicipal 73.5 facilities are as follows: 73.6 Design Flow in 73.7 Million Gallons Per Day Annual Fee 73.9 20 to 49.99 $44,200 73.10 5 to 19.99 $18,250 73.11 Up to 4.99 $8,450 73.12 Cooling or mine pit 73.13 dewatering (any flow) $16,900 73.14 (e) The annual fees for individual National Pollutant 73.15 Discharge Elimination System and State Disposal System permits 73.16 for nonmajor municipal facilities with design flows greater than 73.17 0.100 million gallons per day are $1,450. 73.18 (f) The annual fees for general industrial stormwater 73.19 permits are $280. 73.20 (g) The annual fees for general National Pollutant 73.21 Discharge Elimination System and State Disposal System permits 73.22 are $345. 73.23 (h) The application and annual fees are not increased for 73.24 general construction stormwater permits and sanitary sewer 73.25 extension permits. The annual fees are not increased for 73.26 National Pollutant Discharge Elimination System and State 73.27 Disposal System permits regulating municipal nonmajors with 73.28 facility design flow of 0 to .100, sewage sludge landspreading 73.29 facilities, and nonmajor nonmunicipal facilities. 73.30 (i) The increased permit fees are effective July 1, 2002. 73.31 The agency shall adopt amended water quality permit fee rules 73.32 incorporating the permit fee increases in this subdivision under 73.33 Minnesota Statutes, section 14.389. The pollution control 73.34 agency shall begin collecting the increased permit fees on July 73.35 1, 2002, even if the rule adoption process has not been 73.36 initiated or completed. Notwithstanding Minnesota Statutes, 73.37 section 14.18, subdivision 2, the increased permit fees 73.38 reflecting the permit fee increases in this section and the rule 73.39 amendments incorporating those permit fee increases do not 74.1 require further legislative approval. 74.2 Sec. 16. [REPEALER.] 74.3 (a) Minnesota Statutes 2000, sections 103B.3369, 74.4 subdivisions 7 and 8; 103B.351; 103F.461; and 103G.2373, are 74.5 repealed. 74.6 (b) Minnesota Rules, parts 8405.0100; 8405.0110; 8405.0120; 74.7 8405.0130; 8405.0140; 8405.0150; 8405.0160; 8405.0170; 74.8 8405.0180; 8405.0190; 8405.0200; 8405.0210; 8405.0220; and 74.9 8405.0230, are repealed. 74.10 Sec. 17. [EFFECTIVE DATE.] 74.11 Except as otherwise specified, this article is effective 74.12 the day following final enactment. 74.13 ARTICLE 9 74.14 AGRICULTURE AND RURAL DEVELOPMENT 74.15 Section 1. [AGRICULTURE APPROPRIATIONS AND REDUCTIONS.] 74.16 The dollar amounts in the columns under "APPROPRIATIONS" 74.17 are added to or, if shown in parentheses, are subtracted from 74.18 the appropriations in Laws 2001, First Special Session chapter 74.19 2, or other law, to the specified agencies. The appropriations 74.20 are from the general fund or other named fund and are available 74.21 for the fiscal years indicated for each purpose. The figure 74.22 "2002" or "2003" means that the addition to or subtraction from 74.23 the appropriations listed under the figure are for the fiscal 74.24 year ending June 30, 2002, or June 30, 2003, respectively. The 74.25 term "the first year" means the year ending June 30, 2002, and 74.26 the term "the second year" means the year ending June 30, 2003. 74.27 SUMMARY BY FUND 74.28 2002 2003 TOTAL 74.29 APPROPRIATIONS 74.30 General $ (469,000) $ (1,227,000) $ (1,696,000) 74.31 TRANSFERS IN (2,705,000) (1,996,000) (4,701,000) 74.32 APPROPRIATIONS 74.33 Available for the Year 74.34 Ending June 30 74.35 2002 2003 74.36 Sec. 2. AGRICULTURE 74.37 Subdivision 1. Total 74.38 Appropriation Reductions (26,000) (810,000) 75.1 The amounts reduced from the 75.2 appropriations in Laws 2001, First 75.3 Special Session chapter 2, are 75.4 specified in the following subdivisions. 75.5 Subd. 2. Protection Services 75.6 -0- (250,000) 75.7 Base funding for the protection service 75.8 program is $11,451,000 in the fiscal 75.9 year beginning July 1, 2003. 75.10 Subd. 3. Agricultural 75.11 Marketing and Development 75.12 (21,000) (71,000) 75.13 Base funding for the agricultural 75.14 marketing and development program is 75.15 $5,530,000 for the fiscal year 75.16 beginning July 1, 2003. 75.17 Subd. 4. Administration and 75.18 Financial Assistance 75.19 (5,000) (489,000) 75.20 $5,000 the first year and $2,000 the 75.21 second year of this reduction are from 75.22 family farm security interest payment 75.23 adjustments. 75.24 $175,000 the second year of this 75.25 reduction is from grants to agriculture 75.26 information centers. 75.27 $11,500 the second year of this 75.28 reduction is from the appropriation for 75.29 the Seaway Port Authority of Duluth. 75.30 Base funding for the administration and 75.31 financial assistance program is 75.32 $4,344,000 for the fiscal year 75.33 beginning July 1, 2003. 75.34 Subd. 5. Cancellations 75.35 $43,000 from Laws 2000, chapter 488, 75.36 article 3, section 5, for grants to one 75.37 or more cooperative associations for 75.38 the purpose of facilitating the 75.39 production and marketing of short 75.40 rotation woody crops is canceled to the 75.41 general fund. 75.42 Subd. 6. Transfers 75.43 (a) By June 30, 2002, the commissioner 75.44 shall transfer the unencumbered cash 75.45 balance in the ethanol development fund 75.46 established in Minnesota Statutes, 75.47 section 41B.044, to the general fund. 75.48 (b) By June 30, 2002, the commissioner 75.49 shall transfer $106,000 from the 75.50 balance in the family farm security 75.51 account established in Minnesota 75.52 Statutes, section 41.61, to the general 75.53 fund. 76.1 (c) By June 30, 2002, the commissioner 76.2 shall transfer $890,000 from the 76.3 unencumbered bond proceeds balance in 76.4 the family farm security account 76.5 established in Minnesota Statutes, 76.6 section 41.61, to the debt service fund. 76.7 (d) By June 30, 2004, the commissioner 76.8 shall transfer $800,000 from the 76.9 unencumbered bond proceeds balance in 76.10 the family farm security account 76.11 established in Minnesota Statutes, 76.12 section 41.61, to the debt service fund. 76.13 (e) By June 30, 2004, the commissioner 76.14 shall transfer $50,000 from the balance 76.15 in the family farm security account 76.16 established in Minnesota Statutes, 76.17 section 41.61, to the general fund. 76.18 (f) By June 30, 2005, the commissioner 76.19 shall transfer $410,000 from the 76.20 unencumbered bond proceeds balance in 76.21 the family farm security account 76.22 established in Minnesota Statutes, 76.23 section 41.61, to the debt service fund. 76.24 Sec. 3. MINNESOTA HORTICULTURE 76.25 SOCIETY -0- (16,000) 76.26 This is a onetime reduction. 76.27 Sec. 4. AGRICULTURAL UTILIZATION 76.28 RESEARCH INSTITUTE (400,000) (401,000) 76.29 $20,000 each year of the reduction is 76.30 from the money appropriated for hybrid 76.31 tree management research and 76.32 development. 76.33 Base funding of the agricultural 76.34 utilization research institute is 76.35 $3,717,000 for the fiscal year 76.36 beginning July 1, 2003. 76.37 Sec. 5. Minnesota Statutes 2001 Supplement, section 76.38 17.117, subdivision 5a, is amended to read: 76.39 Subd. 5a. [AGRICULTURAL AND ENVIRONMENTAL REVOLVING 76.40 ACCOUNTS.] (a) There shall be established in the agricultural 76.41 fund revolving accounts to receive appropriations, transfers of 76.42 the balances from previous appropriations for the activities 76.43 under this section, and money from other sources. All balances 76.44 from previous appropriations for activities under this section 76.45 and repayments of loans granted under this section, including 76.46 principal and interest, must be deposited into the appropriate 76.47 revolving account created in this subdivision or the account 76.48 created in subdivision 13. Interest earned in an account 76.49 accrues to that account. 77.1 (b) The money in the revolving accounts and the account 77.2 created in subdivision 13 is appropriated to the commissioner 77.3 for the purposes of this section. 77.4 Sec. 6. Minnesota Statutes 2000, section 41A.09, 77.5 subdivision 3a, is amended to read: 77.6 Subd. 3a. [PAYMENTS.] (a) The commissioner of agriculture 77.7 shall make cash payments to producers of ethanol, anhydrous 77.8 alcohol, and wet alcohol located in the state. These payments 77.9 shall apply only to ethanol, anhydrous alcohol, and wet alcohol 77.10 fermented in the state and produced at plants that have begun 77.11 production by June 30, 2000. For the purpose of this 77.12 subdivision, an entity that holds a controlling interest in more 77.13 than one ethanol plant is considered a single producer. The 77.14 amount of the payment for each producer's annual production is: 77.15 (1) except as provided in paragraph (b), for each gallon of 77.16 ethanol or anhydrous alcohol produced on or before June 30, 77.17 2000, or ten years after the start of production, whichever is 77.18 later,2019 cents per gallon; and 77.19 (2) for each gallon produced of wet alcohol on or before 77.20 June 30, 2000, or ten years after the start of production, 77.21 whichever is later, a payment in cents per gallon calculated by 77.22 the formula "alcohol purity in percent divided by five," and 77.23 rounded to the nearest cent per gallon, but not less than 11 77.24 cents per gallon. 77.25 The producer payments for anhydrous alcohol and wet alcohol 77.26 under this section may be paid to either the original producer 77.27 of anhydrous alcohol or wet alcohol or the secondary processor, 77.28 at the option of the original producer, but not to both. 77.29 No payments shall be made for production that occurs after 77.30 June 30, 2010. 77.31 (b) If the level of production at an ethanol plant 77.32 increases due to an increase in the production capacity of the 77.33 plant, the payment under paragraph (a), clause (1), applies to 77.34 the additional increment of production until ten years after the 77.35 increased production began. Once a plant's production capacity 77.36 reaches 15,000,000 gallons per year, no additional increment 78.1 will qualify for the payment. 78.2 (c) The commissioner shall make payments to producers of 78.3 ethanol or wet alcohol in the amount of 1.5 cents for each 78.4 kilowatt hour of electricity generated using closed-loop biomass 78.5 in a cogeneration facility at an ethanol plant located in the 78.6 state. Payments under this paragraph shall be made only for 78.7 electricity generated at cogeneration facilities that begin 78.8 operation by June 30, 2000. The payments apply to electricity 78.9 generated on or before the date ten years after the producer 78.10 first qualifies for payment under this paragraph. Total 78.11 payments under this paragraph in any fiscal year may not exceed 78.12 $750,000. For the purposes of this paragraph: 78.13 (1) "closed-loop biomass" means any organic material from a 78.14 plant that is planted for the purpose of being used to generate 78.15 electricity or for multiple purposes that include being used to 78.16 generate electricity; and 78.17 (2) "cogeneration" means the combined generation of: 78.18 (i) electrical or mechanical power; and 78.19 (ii) steam or forms of useful energy, such as heat, that 78.20 are used for industrial, commercial, heating, or cooling 78.21 purposes. 78.22 (d) Payments under paragraphs (a) and (b) to all producers 78.23 may not exceed$37,000,000$35,150,000 in a fiscal year. Total 78.24 payments under paragraphs (a) and (b) to a producer in a fiscal 78.25 year may not exceed$3,000,000$2,850,000. 78.26 (e) By the last day of October, January, April, and July, 78.27 each producer shall file a claim for payment for ethanol, 78.28 anhydrous alcohol, and wet alcohol production during the 78.29 preceding three calendar months. A producer with more than one 78.30 plant shall file a separate claim for each plant. A producer 78.31 that files a claim under this subdivision shall include a 78.32 statement of the producer's total ethanol, anhydrous alcohol, 78.33 and wet alcohol production in Minnesota during the quarter 78.34 covered by the claim, including anhydrous alcohol and wet 78.35 alcohol produced or received from an outside source. A producer 78.36 shall file a separate claim for any amount claimed under 79.1 paragraph (c). For each claim and statement of total ethanol, 79.2 anhydrous alcohol, and wet alcohol production filed under this 79.3 subdivision, the volume of ethanol, anhydrous alcohol, and wet 79.4 alcohol production or amounts of electricity generated using 79.5 closed-loop biomass must be examined by an independent certified 79.6 public accountant in accordance with standards established by 79.7 the American Institute of Certified Public Accountants. 79.8 (f) Payments shall be made November 15, February 15, May 79.9 15, and August 15. A separate payment shall be made for each 79.10 claim filed. Except as provided in paragraph (j), the total 79.11 quarterly payment to a producer under this paragraph, excluding 79.12 amounts paid under paragraph (c), may not exceed $750,000. 79.13 (g) If the total amount for which all producers are 79.14 eligible in a quarter under paragraph (c) exceeds the amount 79.15 available for payments, the commissioner shall make payments in 79.16 the order in which the plants covered by the claims began 79.17 generating electricity using closed-loop biomass. 79.18 (h) After July 1, 1997, new production capacity is only 79.19 eligible for payment under this subdivision if the commissioner 79.20 receives: 79.21 (1) an application for approval of the new production 79.22 capacity; 79.23 (2) an appropriate letter of long-term financial commitment 79.24 for construction of the new production capacity; and 79.25 (3) copies of all necessary permits for construction of the 79.26 new production capacity. 79.27 The commissioner may approve new production capacity based 79.28 on the order in which the applications are received. 79.29 (i) The commissioner may not approve any new production 79.30 capacity after July 1, 1998, except that a producer with an 79.31 approved production capacity of at least 12,000,000 gallons per 79.32 year but less than 15,000,000 gallons per year prior to July 1, 79.33 1998, is approved for 15,000,000 gallons of production capacity. 79.34 (j) Notwithstanding the quarterly payment limits of 79.35 paragraph (f), the commissioner shall make an additional payment 79.36 in the eighth quarter of each fiscal biennium to ethanol 80.1 producers for the lesser of: (1)2019 cents per gallon of 80.2 production in the eighth quarter of the biennium that is greater 80.3 than 3,750,000 gallons; or (2) the total amount of payments lost 80.4 during the first seven quarters of the biennium due to plant 80.5 outages, repair, or major maintenance. Total payments to an 80.6 ethanol producer in a fiscal biennium, including any payment 80.7 under this paragraph, must not exceed the total amount the 80.8 producer is eligible to receive based on the producer's approved 80.9 production capacity. The provisions of this paragraph apply 80.10 only to production losses that occur in quarters beginning after 80.11 December 31, 1999. 80.12 (k) For the purposes of this subdivision "new production 80.13 capacity" means annual ethanol production capacity that was not 80.14 allowed under a permit issued by the pollution control agency 80.15 prior to July 1, 1997, or for which construction did not begin 80.16 prior to July 1, 1997. 80.17[EFFECTIVE DATE.] This section is effective for payments 80.18 for ethanol production after July 1, 2004. 80.19 Sec. 7. [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 80.20 The remaining balance in the disaster recovery revolving 80.21 fund established under Minnesota Statutes, section 41B.047, 80.22 subdivision 2, is transferred to the revolving account described 80.23 in Minnesota Statutes, section 17.115, for purposes of Minnesota 80.24 Statutes, section 17.115, subdivision 5, and the fund is 80.25 abolished on the effective date of this section. 80.26 Notwithstanding Minnesota Statutes, section 41B.047, subdivision 80.27 2, all future receipts from loans originated under Minnesota 80.28 Statutes, section 41B.047, shall be deposited in the account. 80.29 Sec. 8. [REPEALER.] 80.30 Minnesota Statutes 2000, section 41B.047, subdivision 2, is 80.31 repealed. 80.32 Sec. 9. [EFFECTIVE DATE.] 80.33 Except as otherwise specified, this article is effective 80.34 the day following final enactment. 80.35 ARTICLE 10 80.36 STATE GOVERNMENT APPROPRIATIONS 81.1 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 81.2 The dollar amounts in the columns under "APPROPRIATIONS" 81.3 are added to or, if shown in parentheses, are subtracted from 81.4 the appropriations in Laws 2001, First Special Session chapter 81.5 10, or other law to the specified agencies. The appropriations 81.6 are from the general fund or other named fund and are available 81.7 for the fiscal years indicated for each purpose. The figure 81.8 "2002" or "2003" means that the addition to or subtraction from 81.9 the appropriations listed under the figure are for the fiscal 81.10 year ending June 30, 2002, or June 30, 2003, respectively. 81.11 SUMMARY BY FUND 81.12 2002 2003 TOTAL 81.13 APPROPRIATIONS 81.14 General $ (14,695,000)$ (30,005,000)$ (44,700,000) 81.15 APPROPRIATIONS 81.16 Available for the Year 81.17 Ending June 30 81.18 2002 2003 81.19 Sec. 2. LEGISLATURE 81.20 Subdivision 1. Total 81.21 Appropriation -0- (2,245,000) 81.22 Subd. 2. Senate 81.23 -0- (688,000) 81.24 Subd. 3. House of Representatives 81.25 -0- (910,000) 81.26 Subd. 4. Legislative Coordinating Commission 81.27 -0- (647,000) 81.28 $164,000 is a reduction for the office 81.29 of the legislative auditor. 81.30 Sec. 3. SECRETARY OF 81.31 STATE -0- (199,000) 81.32 Budget reductions shall not come from 81.33 revenue producing programs or elections. 81.34 Sec. 4. GOVERNOR'S OFFICE (460,000) (702,000) 81.35 No funding may be used for the 81.36 operation of the Washington, D.C., 81.37 office of the state of Minnesota. 81.38 Sec. 5. STATE AUDITOR (503,000) (540,000) 81.39 Sec. 6. STATE TREASURER -0- (30,000) 81.40 Sec. 7. ATTORNEY GENERAL -0- (900,000) 82.1 The attorney general, in consultation 82.2 with the affected agencies, shall 82.3 prepare a plan for ending partnership 82.4 agreements with agencies and shall 82.5 submit the plan to the legislature by 82.6 November 15, 2002. 82.7 Sec. 8. BOARD OF GOVERNMENT INNOVATION 82.8 COOPERATION (275,000) (518,000) 82.9 Sec. 9. OFFICE OF STRATEGIC 82.10 AND LONG-RANGE PLANNING (600,000) (560,000) 82.11 Sec. 10. ADMINISTRATION 82.12 Subdivision 1. Total 82.13 Appropriation (274,000) (3,784,000) 82.14 Subd. 2. Operations Management 82.15 -0- (989,000) 82.16 The base funding for the 2004-2005 82.17 biennium is $3,002,000 a year. 82.18 Subd. 3. Office of Technology 82.19 -0- (774,000) 82.20 The base funding for the 2004-2005 82.21 biennium is $4,622,000 in 2004 and 82.22 $2,442,000 in 2005. 82.23 Subd. 4. Intertechnologies Group 82.24 General Fund 82.25 (200,000) (533,000) 82.26 The base funding for the 2004-2005 82.27 biennium is $382,000 a year. 82.28 Subd. 5. Management Services 82.29 -0- (707,000) 82.30 The base funding for the 2004-2005 82.31 biennium is $3,145,000 a year. Base 82.32 funding may not be reduced for the 82.33 information policy analysis program. 82.34 Subd. 6. Facilities Management 82.35 -0- (714,000) 82.36 The base funding for the 2004-2005 82.37 biennium is $3,583,000 a year. 82.38 Subd. 7. Public Broadcasting 82.39 -0- (67,000) 82.40 The base funding for the 2004-2005 82.41 biennium is $3,197,000 each year. The 82.42 $133,000 reduction each year must be 82.43 applied on a proportional basis. 82.44 Subd. 8. Fiscal Agents 82.45 (74,000) -0- 82.46 Voting equipment grants are reduced by 82.47 $74,000 in fiscal year 2002. 83.1 Sec. 11. FINANCE 83.2 Subdivision 1. Total Appropriation 83.3 Reductions (1,773,000) (3,609,000) 83.4 Subd. 2. State Financial Management 83.5 (204,000) (1,195,000) 83.6 Subd. 3. Information and Management 83.7 Services 83.8 (910,000) (1,974,000) 83.9 $446,000 in the first year and $220,000 83.10 in the second year are onetime 83.11 reductions. 83.12 Subd. 4. Carryforward 83.13 (660,000) (440,000) 83.14 This reduction is from Laws 1999, 83.15 chapter 250, article 1, section 14, 83.16 subdivision 3. 83.17 Subd. 5. Dislocated Worker Program 83.18 The commissioner of finance shall 83.19 transfer $2,800,000 from the general 83.20 fund to the workforce development fund 83.21 for the dislocated worker program. 83.22 This transfer shall occur within 14 83.23 days following final enactment of this 83.24 act. 83.25 Sec. 12. EMPLOYEE 83.26 RELATIONS (660,000) (1,269,000) 83.27 Sec. 13. REVENUE 83.28 Subdivision 1. Total Appropriation 83.29 Reduction (7,000,000) (7,000,000) 83.30 Sec. 14. AMATEUR SPORTS COMMISSION (60,000) (60,000) 83.31 Sec. 15. MINNESOTA HUMANITIES 83.32 COMMISSION -0- (41,000) 83.33 Sec. 16. BOARD OF THE ARTS 83.34 Subdivision 1. Total 83.35 Appropriation -0- (526,000) 83.36 Subd. 2. Operations and Services 83.37 -0- (43,000) 83.38 Subd. 3. Grants Programs 83.39 -0- (342,000) 83.40 Subd. 4. Regional Arts Councils 83.41 -0- (141,000) 83.42 Sec. 17. MILITARY AFFAIRS (452,000) (2,399,000) 83.43 The base funding for the 2004-2005 83.44 biennium is $12,472,000 each year. 83.45 Sec. 18. VETERANS 84.1 AFFAIRS -0- (180,000) 84.2 Sec. 19. MINNESOTA 84.3 STATE RETIREMENT SYSTEM -0- (2,004,000) 84.4 $2,004,000 of the appropriation 84.5 reduction the second year is to 84.6 eliminate the open appropriation for 84.7 judges not participating in the 84.8 postretirement fund, effective July 1, 84.9 2002. The reduction in 2004 is 84.10 $2,124,000 and in 2005 is $2,251,000. 84.11 Sec. 20. CAMPAIGN FINANCE 84.12 AND PUBLIC DISCLOSURE BOARD -0- (35,000) 84.13 Sec. 21. INVESTMENT 84.14 BOARD -0- (127,000) 84.15 Sec. 22. CAPITOL AREA ARCHITECTURAL 84.16 AND PLANNING BOARD -0- (16,000) 84.17 Sec. 23. LAWFUL GAMBLING CONTROL 84.18 BOARD -0- (126,000) 84.19 Sec. 24. MINNESOTA RACING 84.20 COMMISSION -0- (21,000) 84.21 Sec. 25. TORT CLAIMS -0- (114,000) 84.22 Sec. 26. CONTINGENT ACCOUNTS (2,638,000) (3,000,000) 84.23 Sec. 27. LEGISLATIVE INTENT 84.24 It is the legislature's intent that, 84.25 unless provided otherwise in this 84.26 article, base reductions in an agency's 84.27 funding be distributed across the 84.28 agency's accounts without a 84.29 disproportionate reduction from a 84.30 single program. Additionally, all 84.31 budget reductions should be made with 84.32 an emphasis on cutting administration 84.33 and overhead expenses and with as 84.34 little impact as possible on programs 84.35 and services. 84.36 Sec. 28. Minnesota Statutes 2000, section 15.0591, 84.37 subdivision 2, is amended to read: 84.38 Subd. 2. [BODIES AFFECTED.] A member meeting the 84.39 qualifications in subdivision 1 must be appointed to the 84.40 following boards, commissions, advisory councils, task forces, 84.41 or committees: 84.42 (1) advisory council on battered women and domestic abuse; 84.43 (2) advisory task force on the use of state facilities; 84.44 (3) alcohol and other drug abuse advisory council; 84.45 (4) board of examiners for nursing home administrators; 84.46 (5) board on aging; 84.47 (6) chiropractic examiners board; 85.1 (7) consumer advisory council on vocational rehabilitation; 85.2 (8) council on disability; 85.3 (9) council on affairs of Chicano/Latino people; 85.4 (10) council on Black Minnesotans; 85.5 (11) dentistry board; 85.6 (12) department of economic security advisory council; 85.7 (13) higher education services office; 85.8 (14) housing finance agency; 85.9 (15) Indian advisory council on chemical dependency; 85.10 (16) medical practice board; 85.11 (17) medical policy directional task force on mental 85.12 health; 85.13 (18) Minnesota employment and economic development task 85.14 force; 85.15 (19)Minnesota office of citizenship and volunteer services85.16advisory committee;85.17(20)Minnesota state arts board; 85.18(21)(20) nursing board; 85.19(22)(21) optometry board; 85.20(23)(22) pharmacy board; 85.21(24)(23) board of physical therapy; 85.22(25)(24) podiatry board; 85.23(26)(25) psychology board; 85.24(27)(26) veterans advisory committee. 85.25 Sec. 29. Minnesota Statutes 2000, section 16A.40, is 85.26 amended to read: 85.27 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 85.28 Money must not be paid out of the state treasury except 85.29 upon the warrant of the commissioner or an electronic fund 85.30 transfer approved by the commissioner. Warrants must be drawn 85.31 on printed blanks that are in numerical order. The commissioner 85.32 shall enter, in numerical order in a warrant register, the 85.33 number, amount, date, and payee for every warrant issued. 85.34 Payees receiving more than ten payments or $10,000 per year 85.35 must supply the commissioner with their bank routing information 85.36 to enable the payments to be made through an electronic fund 86.1 transfer. 86.2 Sec. 30. Minnesota Statutes 2001 Supplement, section 86.3 16B.65, subdivision 1, is amended to read: 86.4 Subdivision 1. [DESIGNATION.] By January 1, 2002, each 86.5 municipality shall designate a building official to administer 86.6 the code. A municipality may designate no more than one 86.7 building official responsible for code administration defined by 86.8 each certification category established in rule. Two or more 86.9 municipalities may combine in the designation of a building 86.10 official for the purpose of administering the provisions of the 86.11 code within their communities. In those municipalities for 86.12 which no building officials have been designated, the state 86.13 building official may use whichever state employees are 86.14 necessary to perform the duties of the building official until 86.15 the municipality makes a temporary or permanent designation. 86.16 All costs incurred by virtue of these services rendered by state 86.17 employees must be borne by the involved municipality and 86.18 receipts arising from these services must be paid into the state 86.19 treasury and credited to thegeneralspecial revenue fund. 86.20 Sec. 31. Minnesota Statutes 2001 Supplement, section 86.21 16B.65, subdivision 5a, is amended to read: 86.22 Subd. 5a. [ADMINISTRATIVE ACTION AND PENALTIES.] The 86.23 commissioner shall, by rule, establish a graduated schedule of 86.24 administrative actions for violations of sections 16B.59 to 86.25 16B.75 and rules adopted under those sections. The schedule 86.26 must be based on and reflect the culpability, frequency, and 86.27 severity of the violator's actions. The commissioner may impose 86.28 a penalty from the schedule on a certification holder for a 86.29 violation of sections 16B.59 to 16B.75 and rules adopted under 86.30 those sections. The penalty is in addition to any criminal 86.31 penalty imposed for the same violation. Administrative monetary 86.32 penalties imposed by the commissioner must be paid to the 86.33generalspecial revenue fund. 86.34 Sec. 32. Minnesota Statutes 2000, section 124D.385, 86.35 subdivision 2, is amended to read: 86.36 Subd. 2. [MEMBERSHIP.] (a) The commission consists of 18 87.1 voting members. Voting members shall include the commissioner 87.2 of children, families, and learning, a representative of the 87.3 children's cabinet elected by the members of the children's 87.4 cabinet, and the executive director of the higher education 87.5 services office. 87.6 (b) The governor shall appoint 15 additional voting 87.7 members. Eight of the voting members appointed by the governor 87.8 shall include a representative of public or nonprofit 87.9 organizations experienced in youth employment and training, 87.10 organizations promoting adult service and volunteerism, 87.11 community-based service agencies or organizations, local public 87.12 or private sector labor unions, local governments, business, a 87.13 national service program, and Indian tribes. The remaining 87.14 seven voting members appointed by the governor shall include an 87.15 individual with expertise in the educational, training, and 87.16 development needs of youth, particularly disadvantaged youth; a 87.17 youth or young adult who is a participant in a higher 87.18 education-based service-learning program; a disabled individual 87.19 representing persons with disabilities; a youth who is 87.20 out-of-school or disadvantaged; an educator of primary or 87.21 secondary students; an educator from a higher education 87.22 institution; and an individual between the ages of 16 and 25 who 87.23 is a participant or supervisor in a youth service program. 87.24 (c) The governor shall appoint up to five ex officio 87.25 nonvoting members from among the following agencies or 87.26 organizations: the departments of economic security, natural 87.27 resources, human services, health, corrections, agriculture, 87.28 public safety, finance, and labor and industry,the Minnesota87.29office of citizenship and volunteer services,the housing 87.30 finance agency, and Minnesota Technology, Inc. A representative 87.31 of the corporation for national and community service shall also 87.32 serve as an ex officio nonvoting member. 87.33 (d) Voting and ex officio nonvoting members may appoint 87.34 designees to act on their behalf. The number of voting members 87.35 who are state employees shall not exceed 25 percent. 87.36 (e) The governor shall ensure that, to the extent possible, 88.1 the membership of the commission is balanced according to 88.2 geography, race, ethnicity, age, and gender. The speaker of the 88.3 house and the majority leader of the senate shall each appoint 88.4 two legislators to be nonvoting members of the commission. 88.5 Sec. 33. Minnesota Statutes 2000, section 256.9753, 88.6 subdivision 3, is amended to read: 88.7 Subd. 3. [EXPENDITURES.] The board shall consult with 88.8 theoffice of citizenship and volunteer servicescommissioner of 88.9 human services, prior to expending money available for the 88.10 retired senior volunteer programs. Expenditures shall be made 88.11 (1) to strengthen and expand existing retired senior volunteer 88.12 programs, and (2) to encourage the development of new programs 88.13 in areas in the state where these programs do not exist. Grants 88.14 shall be made consistent with applicable federal guidelines. 88.15 Sec. 34. Minnesota Statutes 2000, section 490.123, is 88.16 amended by adding a subdivision to read: 88.17 Subd. 1e. [PARTICIPATION IN THE POSTRETIREMENT INVESTMENT 88.18 FUND.] Notwithstanding any laws to the contrary, all judges and 88.19 survivors receiving a benefit under this chapter shall receive 88.20 that benefit from the postretirement investment fund. Required 88.21 reserves for those judges not receiving benefits from the 88.22 postretirement investment fund as of July 1, 2002, shall be 88.23 transferred to the postretirement investment fund to pay future 88.24 benefits by July 31, 2002. 88.25 Sec. 35. Laws 1998, chapter 404, section 23, subdivision 88.26 6, is amended to read: 88.27 Subd. 6. St. Paul RiverCentre 88.28 Arena 65,000,000 88.29 This appropriation is from the general 88.30 fund to the commissioner of finance for 88.31 a loan to the city of St. Paul to 88.32 demolish the existing St. Paul 88.33 RiverCentre Arena and to design, 88.34 construct, furnish, and equip a new 88.35 arena. This appropriation is not 88.36 available until the lessee to whom the 88.37 city has leased the arena has agreed to 88.38 make rental or other payments to the 88.39 city under the terms set forth in this 88.40 subdivision. The loan is repayable 88.41 solely from and secured by the payments 88.42 made to the city by the lessee. The 88.43 loan is not a public debt and the full 88.44 faith, credit, and taxing powers of the 89.1 city are not pledged for its repayment. 89.2 (a) $48,000,000 of the loan must be 89.3 repaid to the commissioner, without 89.4 interest, within 20 years from the date 89.5 of substantial completion of the arena 89.6 in accordance with the following 89.7 schedule: 89.8 (1) no repayments are due in the first 89.9 two years from the date of substantial 89.10 completion; 89.11 (2) in each of the years three to five, 89.12 the lessee must pay $1,250,000; 89.13 (3) in each of the years six to ten, 89.14 the lessee must pay $1,500,000; 89.15 (4) in each of the years 11 to 13, the 89.16 lessee must pay $2,000,000; 89.17 (5) in year 14, the lessee must pay 89.18 $3,000,000; 89.19 (6) in year 15, the lessee must pay 89.20 $4,000,000; and 89.21 (7) in each of the years 16 to 20, the 89.22 lessee must pay $4,750,000. 89.23 (b) The commissioner must deposit the 89.24 repayments in the state treasury and 89.25 credit them to theyouth activities89.26account, which is hereby created in the89.27special revenue fund. Money in the89.28youth activities account is available89.29for expenditure as appropriated by89.30lawgeneral fund. 89.31 (c) The loan may not be made until the 89.32 commissioner has entered into an 89.33 agreement with the city of St. Paul 89.34 identifying the rental or other 89.35 payments that will be made and 89.36 establishing the dates on and the 89.37 amounts in which the payments will be 89.38 made to the city and by the city to the 89.39 commissioner. The payments may include 89.40 operating revenues and additional 89.41 payments to be made by the lessee under 89.42 agreements to be negotiated between the 89.43 commissioner, the city, and the 89.44 lessee. Those agreements may include, 89.45 but are not limited to, an agreement 89.46 whereby the lessee pledges to provide 89.47 each year a letter of credit sufficient 89.48 to guarantee the payment of the amount 89.49 due for the next succeeding year; an 89.50 agreement whereby the lessee agrees to 89.51 maintain a net worth, certified each 89.52 year by a financial institution or 89.53 accounting firm satisfactory to the 89.54 commissioner, that is greater than the 89.55 balance due under the payment schedule 89.56 in paragraph (a); and any other 89.57 agreements the commissioner may deem 89.58 necessary to ensure that the payments 89.59 are made as scheduled. 89.60 (d) The agreements must provide that 90.1 the failure of the lessee to make a 90.2 payment due to the city under the 90.3 agreement is an event of default under 90.4 the lease between the city and the 90.5 lessee and that the state is entitled 90.6 to enforce the remedies of the lessor 90.7 under the lease in the event of 90.8 default. Those remedies must include, 90.9 but need not be limited to, the 90.10 obligation of the lessee to pay the 90.11 balance due for the remainder of the 90.12 payment schedule in the event the 90.13 lessee ceases to operate a National 90.14 Hockey League team in the arena. 90.15 (e) By January 1, 1999, the 90.16 commissioner shall report to the chair 90.17 of the senate committee on state 90.18 government finance and the chair of the 90.19 house committee on ways and means the 90.20 terms of an agreement between the 90.21 lessee and the amateur sports 90.22 commission whereby the lessee agrees to 90.23 make the facilities of the arena 90.24 available to the commission on terms 90.25 satisfactory to the commission for 90.26 amateur sports activities consistent 90.27 with the purposes of Minnesota 90.28 Statutes, chapter 240A, each year 90.29 during the time the loan is 90.30 outstanding. The amateur sports 90.31 commission must negotiate in good faith 90.32 and may be required to pay no more than 90.33 actual out-of-pocket expenses for the 90.34 time it uses the arena. The agreement 90.35 may not become effective before 90.36 February 1, 1999. During any calendar 90.37 year after 1999 that an agreement under 90.38 this paragraph is not in effect and a 90.39 payment is due under the schedule, the 90.40 lessee must pay to the commissioner a 90.41 penalty of $750,000 for that year. If 90.42 the amateur sports commission has not 90.43 negotiated in good faith, no penalty is 90.44 due. 90.45 Sec. 36. [REDUCTION IN CONTRACT EXPENDITURES.] 90.46 During the biennium ending June 30, 2003, the governor must 90.47 reduce planned executive branch state agency general fund 90.48 expenditures on contracts for professional or technical services 90.49 by at least $35,000,000. The governor must allocate this 90.50 reduction among executive branch state agencies. For purposes 90.51 of this section, "professional or technical services" has the 90.52 meaning given in Minnesota Statutes, section 16C.08, subdivision 90.53 1; and "executive branch state agency" has the meaning given in 90.54 Minnesota Statutes, section 16A.011, subdivision 12a, and 90.55 includes the Minnesota state colleges and universities. The 90.56 base for these reductions is the amount allocated for 90.57 professional or technical service contracts in agency spending 91.1 plans as of January 1, 2002. 91.2 Sec. 37. [MORATORIUM ON CONSULTANT CONTRACTS.] 91.3 (a) An entity in the executive branch of state government, 91.4 including the Minnesota state colleges and universities, may not 91.5 enter into a new contract or renew an existing contract for 91.6 professional or technical services after the effective date of 91.7 this section and before July 1, 2003. This section does not 91.8 apply to a contract: 91.9 (1) that relates to a threat to public health, welfare, or 91.10 safety that threatens the functioning of government, the 91.11 protection of property, or the health or safety of people; or 91.12 (2) that is paid for entirely with federal funds received 91.13 before the effective date of this section. 91.14 (b) An entity in the executive branch may apply for a 91.15 waiver of the moratorium by sending a letter with reasons for 91.16 the request to the commissioner of administration for executive 91.17 branch entities. Upon a finding that a consultant contract is 91.18 necessary, the commissioner may grant a waiver. The decision of 91.19 the commissioner is final and not subject to appeal. A monthly 91.20 report of all waivers granted must be filed by the entity 91.21 granting the waiver. The report must be published on the 91.22 entity's Web site, and copies must be provided to the chairs of 91.23 the house ways and means and senate finance committees and to 91.24 the legislative reference library. 91.25 Sec. 38. [HIRING FREEZE.] 91.26 Subdivision 1. [APPLICATION OF FREEZE.] A state employer 91.27 may not hire any permanent or temporary employees before July 1, 91.28 2003. For purposes of this section, "state employer" means 91.29 state elected officials, departments, boards, agencies, 91.30 commissions, offices, and other hiring entities in the executive 91.31 and legislative branches of state government, as those branches 91.32 are defined in Minnesota Statutes, section 43A.02. 91.33 "State employer" does not include the Minnesota state 91.34 colleges and universities. 91.35 Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to: 91.36 (1) a student in a work-study position; or 92.1 (2) a position that is necessary to perform essential 92.2 government services. 92.3 A determination under clause (2) must be made by the 92.4 speaker of the house of representatives with respect to house 92.5 employees, the chair of the committee on rules and 92.6 administration with respect to senate employees, and the 92.7 legislative coordinating commission with respect to its 92.8 employees, by a constitutional officer with respect to employees 92.9 of the constitutional office, and by the governor with respect 92.10 to any other employee covered by this section. Exceptions 92.11 granted under clause (2) must be reported monthly by the entity 92.12 granting the exception. The reports must be published on the 92.13 entity's Web site, and copies must be provided to the chairs of 92.14 the house ways and means and senate finance committees and to 92.15 the legislative reference library. 92.16 Subd. 3. [ANTICIPATED SAVINGS.] The legislature 92.17 anticipates that application of this section to executive branch 92.18 agencies and to the Minnesota state colleges and universities 92.19 will result in savings to the general fund of $40,000,000 by 92.20 June 30, 2003. If the governor determines that application of 92.21 this section will not result in $40,000,000 in savings to the 92.22 general fund by June 30, 2003, the governor must make 92.23 proportional reductions in executive agency operating budgets 92.24 necessary to achieve these savings. 92.25 Sec. 39. [SAVINGS ARE ADDITIONAL.] 92.26 Savings achieved in sections 36 to 38 from the freeze in 92.27 state hiring or the reduction in the number of state contracts 92.28 for professional or technical services are in addition to 92.29 reductions in spending required by other sections of this 92.30 article. 92.31 Sec. 40. [REPEALER.] 92.32 Minnesota Statutes 2001 Supplement, section 4.50, is 92.33 repealed. Minnesota Statutes 2000, sections 13.202, subdivision 92.34 8; 465.795; 465.796; 465.797; 465.7971; 465.798; 465.799; 92.35 465.801; 465.802; 465.803; 465.83; 465.87; and 465.88, are 92.36 repealed effective July 1, 2002. Minnesota Statutes 2000, 93.1 section 490.123, subdivision 1d, is repealed effective June 30, 93.2 2002. 93.3 Sec. 41. [EFFECTIVE DATE.] 93.4 Except as otherwise provided in section 40, this article is 93.5 effective the day following final enactment. 93.6 ARTICLE 11 93.7 COURTS 93.8 Section 1. [APPROPRIATIONS/REDUCTIONS.] 93.9 The dollar amounts in the columns under "APPROPRIATIONS" 93.10 are added to or, if shown in parentheses, are subtracted from 93.11 the appropriations in Laws 2001, First Special Session chapters 93.12 8, 9, or other law to the specified agencies. The 93.13 appropriations are from the general fund or other named fund and 93.14 are available for the fiscal years indicated for each purpose. 93.15 The figure "2002" or "2003" means that the addition to or 93.16 subtraction from the appropriations listed under the figure are 93.17 for the fiscal year ending June 30, 2002, or June 30, 2003, 93.18 respectively. 93.19 2002 2003 93.20 APPROPRIATION REDUCTIONS -0- ( 1,592,000) 93.21 APPROPRIATIONS 93.22 2002 2003 93.23 Sec. 2. SUPREME COURT -0- ( 454,000) 93.24 $175,000 the second year is to reduce 93.25 funding to civil legal services. The 93.26 funding and base for civil legal 93.27 services may not be reduced more than 93.28 these amounts. 93.29 The base for fiscal year 2004 shall be 93.30 reduced by $394,000 and for fiscal year 93.31 2005 by $394,000. 93.32 No portion of this reduction may come 93.33 from a reduction in spending of the 93.34 funds appropriated to the courts for 93.35 the Minnesota criminal information 93.36 system. 93.37 Sec. 3. COURT OF APPEALS -0- ( 86,000) 93.38 The base for fiscal year 2004 shall be 93.39 reduced by $74,000 and for fiscal year 93.40 2005 by $74,000. 93.41 Sec. 4. DISTRICT COURTS -0- ( 845,000) 93.42 The base for fiscal year 2004 shall be 93.43 reduced by $641,000 and for fiscal year 94.1 2005 by $641,000. These appropriation 94.2 reductions may also be applied to the 94.3 appropriations to the trial courts as 94.4 amended in Laws 2001, First Special 94.5 Session chapter 8, article 5, section 94.6 23. 94.7 Sec. 5. HUMAN RIGHTS -0- (207,000) 94.8 Sec. 6. Minnesota Statutes 2000, section 357.021, 94.9 subdivision 2, is amended to read: 94.10 Subd. 2. [FEE AMOUNTS.] The fees to be charged and 94.11 collected by the court administrator shall be as follows: 94.12 (1) In every civil action or proceeding in said court, 94.13 including any case arising under the tax laws of the state that 94.14 could be transferred or appealed to the tax court, the 94.15 plaintiff, petitioner, or other moving party shall pay, when the 94.16 first paper is filed for that party in said action, a fee of 94.17$122$135. 94.18 The defendant or other adverse or intervening party, or any 94.19 one or more of several defendants or other adverse or 94.20 intervening parties appearing separately from the others, shall 94.21 pay, when the first paper is filed for that party in said 94.22 action, a fee of$122$135. 94.23 The party requesting a trial by jury shall pay $75. 94.24 The fees above stated shall be the full trial fee 94.25 chargeable to said parties irrespective of whether trial be to 94.26 the court alone, to the court and jury, or disposed of without 94.27 trial, and shall include the entry of judgment in the action, 94.28 but does not include copies or certified copies of any papers so 94.29 filed or proceedings under chapter 103E, except the provisions 94.30 therein as to appeals. 94.31 (2) Certified copy of any instrument from a civil or 94.32 criminal proceeding, $10, and $5 for an uncertified copy. 94.33 (3) Issuing a subpoena, $3 for each name. 94.34 (4) Issuing an execution and filing the return thereof; 94.35 issuing a writ of attachment, injunction, habeas corpus, 94.36 mandamus, quo warranto, certiorari, or other writs not 94.37 specifically mentioned, $10. 94.38 (5) Issuing a transcript of judgment, or for filing and 95.1 docketing a transcript of judgment from another court, $7.50. 95.2 (6) Filing and entering a satisfaction of judgment, partial 95.3 satisfaction, or assignment of judgment, $5. 95.4 (7) Certificate as to existence or nonexistence of 95.5 judgments docketed, $5 for each name certified to. 95.6 (8) Filing and indexing trade name; or recording basic 95.7 science certificate; or recording certificate of physicians, 95.8 osteopaths, chiropractors, veterinarians, or optometrists, $5. 95.9 (9) For the filing of each partial, final, or annual 95.10 account in all trusteeships, $10. 95.11 (10) For the deposit of a will, $5. 95.12 (11) For recording notary commission, $25, of which, 95.13 notwithstanding subdivision 1a, paragraph (b), $20 must be 95.14 forwarded to the state treasurer to be deposited in the state 95.15 treasury and credited to the general fund. 95.16 (12) Filing a motion or response to a motion for 95.17 modification of child support, a fee fixed by rule or order of 95.18 the supreme court. 95.19 (13) All other services required by law for which no fee is 95.20 provided, such fee as compares favorably with those herein 95.21 provided, or such as may be fixed by rule or order of the court. 95.22 (14) In addition to any other filing fees under this 95.23 chapter, a surcharge in the amount of $75 must be assessed in 95.24 accordance with section 259.52, subdivision 14, for each 95.25 adoption petition filed in district court to fund the fathers' 95.26 adoption registry under section 259.52. 95.27 The fees in clauses (3) and (4) need not be paid by a 95.28 public authority or the party the public authority represents. 95.29 Sec. 7. Minnesota Statutes 2000, section 357.022, is 95.30 amended to read: 95.31 357.022 [CONCILIATION COURT FEE.] 95.32 The court administrator in every county shall charge and 95.33 collect a filing fee of$15$25 where the amount demanded is 95.34 less than $2,000 and$25$35 where the amount demanded is $2,000 95.35 or more from every plaintiff and from every defendant when the 95.36 first paper for that party is filed in any conciliation court 96.1 action. This section does not apply to conciliation court 96.2 actions filed by the state. The court administrator shall 96.3 transmit the fees monthly to the state treasurer for deposit in 96.4 the state treasury and credit to the general fund. 96.5 ARTICLE 12 96.6 ECONOMIC DEVELOPMENT 96.7 Section 1. [APPROPRIATIONS AND REDUCTIONS.] 96.8 The dollar amounts in the columns under "APPROPRIATIONS" 96.9 are added to or, if shown in parentheses, subtracted from the 96.10 appropriations in Laws 2001, First Special Session chapter 4, or 96.11 other law to the specified agencies. The appropriations are 96.12 from the general fund or other named fund and are available for 96.13 the fiscal years indicated for each purpose. The figure "2002" 96.14 or "2003" means that the addition to or subtraction from the 96.15 appropriations listed under the figure are for the fiscal year 96.16 ending June 30, 2002, or June 30, 2003, respectively. 96.17 SUMMARY BY FUND 96.18 2002 2003 TOTAL 96.19 APPROPRIATIONS 96.20 General (1,899,000) (3,594,000) (5,493,000) 96.21 Special Revenue 100,000 100,000 200,000 96.22 CANCELLATIONS (10,426,000) -0- (10,426,000) 96.23 TRANSFERS IN 9,320,000 (650,000) 8,670,000 96.24 APPROPRIATIONS 96.25 Available for the Year 96.26 Ending June 30 96.27 2002 2003 96.28 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 96.29 Subdivision 1. Total 96.30 Appropriation (559,000) (761,000) 96.31 It is the legislature's intent that 96.32 base reductions in an agency's funding 96.33 be distributed across the agency's 96.34 accounts without a disproportionate 96.35 reduction from a single program. 96.36 Additionally, all budget reductions 96.37 should be made with an emphasis on 96.38 cutting administration and overhead 96.39 expenses, and with as little impact as 96.40 possible on programs and services. 96.41 Of these amounts: 96.42 (a) $80,000 the first year and $190,000 96.43 the second year are for reductions in 97.1 administrative costs. 97.2 (b) $146,000 the first year is a 97.3 reduction for strike salary savings. 97.4 (c) Other reductions are as stated in 97.5 this section. 97.6 Subd. 2. Business and Community 97.7 Development (55,000) (60,000) 97.8 Of these amounts: 97.9 (a) The base funding for the Minnesota 97.10 investment fund is reduced by $500,000 97.11 each year in the 2004-2005 biennium. 97.12 (b) $150,000 each year is added to the 97.13 base funding for the rural policy and 97.14 development center, beginning in fiscal 97.15 year 2004. 97.16 Subd. 3. Minnesota Trade Office (43,000) (270,000) 97.17 The Minnesota trade office's base 97.18 funding is reduced by $50,000 each year 97.19 of the 2004-2005 biennium from its base 97.20 funding for fiscal year 2003. 97.21 Subd. 4. Workforce Development -0- 215,000 97.22 $250,000 the second year is an 97.23 appropriation for the ISEEK program. 97.24 This is a onetime appropriation and is 97.25 not added to the agency's budget base. 97.26 Subd. 5. Office of Tourism (120,000) (340,000) 97.27 (a) No part of this reduction may be 97.28 accomplished by decreasing the grant to 97.29 the Mississippi River Parkway 97.30 Commission in Laws 2001, First Special 97.31 Session chapter 4, article 1, section 97.32 2, subdivision 5. The office of 97.33 tourism's base funding shall be reduced 97.34 by $350,000 each year in the 2004-2005 97.35 biennium from its base funding for 97.36 fiscal year 2003. 97.37 (b) $20,000 the second year is to 97.38 reduce funding for the snowbate program 97.39 in the Minnesota Film Board. Base 97.40 funding for the snowbate program shall 97.41 be $450,000 per year in the 2004-2005 97.42 biennium. 97.43 Subd. 6. Information and 97.44 Analysis (100,000) (100,000) 97.45 The base funding shall be reduced by an 97.46 additional $79,000 each year for the 97.47 2004-2005 biennium. 97.48 Subd. 7. Administrative 97.49 Support (15,000) (16,000) 97.50 Subd. 8. Dislocated 97.51 Worker Program 97.52 The commissioner of finance shall 97.53 transfer $13,200,000 from the general 98.1 fund to the workforce development fund 98.2 for the dislocated worker program. 98.3 This transfer shall occur within 14 98.4 days following final enactment of this 98.5 act. This subdivision is effective the 98.6 day following final enactment. 98.7 Subd. 9. Biomedical Innovation 98.8 and Commercialization Initiative 98.9 The Laws 2001, First Special Session 98.10 chapter 5, article 19, section 2, 98.11 appropriation of $10,000,000 for the 98.12 biomedical innovation and 98.13 commercialization initiative is 98.14 canceled to the general fund. This 98.15 cancellation is effective the day 98.16 following final enactment. 98.17 Sec. 3. MINNESOTA TECHNOLOGY, 98.18 INC. -0- (750,000) 98.19 Sec. 4. ECONOMIC SECURITY 98.20 Subdivision 1. Total 98.21 Appropriation (80,000) (559,000) 98.22 It is the legislature's intent that 98.23 base reductions in an agency's funding 98.24 be distributed across the agency's 98.25 accounts without a disproportionate 98.26 reduction from a single program. 98.27 Additionally, all budget reductions 98.28 should be made with an emphasis on 98.29 cutting administration and overhead 98.30 expenses, and with as little impact as 98.31 possible on programs and services. 98.32 To the extent that any reductions 98.33 reflected in the department would 98.34 violate federal requirements regarding 98.35 maintenance of effort, the commissioner 98.36 is authorized to exempt from reduction 98.37 the affected programs to the extent 98.38 required to comply with federal 98.39 regulations. The commissioner shall 98.40 realize the reductions that would 98.41 otherwise apply from programs and 98.42 administrative costs funded with 98.43 general fund dollars that do not have 98.44 maintenance of effort requirements. 98.45 The legislature's intent is that any 98.46 additional program reductions resulting 98.47 from this provision be done in a 98.48 proportional manner among the affected 98.49 programs. 98.50 If there is a vacancy in the position 98.51 of commissioner or deputy commissioner 98.52 in the department between the date of 98.53 enactment of this act and July 1, 2003, 98.54 the position may be filled only by an 98.55 acting commissioner or acting deputy 98.56 commissioner and may not be filled on a 98.57 permanent basis. 98.58 The department's base appropriation 98.59 shall be reduced by $200,000 in fiscal 98.60 year 2004 and then by an additional 98.61 $400,000 in fiscal year 2005 as a 98.62 result of reorganization of state 99.1 agencies. 99.2 Subd. 2. Workforce Services -0- (228,000) 99.3 The base reduction is $428,000 for each 99.4 year of the 2004-2005 biennium. 99.5 The base funding for the Minnesota 99.6 youth program is reduced by $500,000 99.7 each year in the 2004-2005 biennium. 99.8 Base funding for the displaced 99.9 homemakers program may not be reduced. 99.10 Subd. 3. Workforce Rehabilitation 99.11 Services -0- (204,000) 99.12 Subd. 4. Workforce Services for 99.13 the Blind -0- (127,000) 99.14 Subd. 5. Strike Salary 99.15 Savings (80,000) -0- 99.16 Sec. 5. HOUSING FINANCE 99.17 AGENCY -0- (216,000) 99.18 It is the legislature's intent that 99.19 base reductions in an agency's funding 99.20 be distributed across the agency's 99.21 accounts without a disproportionate 99.22 reduction from a single program. 99.23 Additionally, all budget reductions 99.24 should be made with an emphasis on 99.25 cutting administration and overhead 99.26 expenses, and with as little impact as 99.27 possible on programs and services. 99.28 The department's base funding shall be 99.29 reduced by an additional $457,000 each 99.30 year for the 2004-2005 biennium. 99.31 Sec. 6. DEPARTMENT OF 99.32 COMMERCE (506,000) (376,000) 99.33 Of these amounts: 99.34 (1) $44,000 in the first year and 99.35 $104,000 in the second year are for 99.36 staff reduction in the department of 99.37 commerce/administration program; and 99.38 (2) $59,000 in the first year and 99.39 $147,000 in the second year are for 99.40 staff reduction in the weights and 99.41 measures program. 99.42 (3) $50,000 the first year and $125,000 99.43 the second year are for administrative 99.44 cost reductions. The department's base 99.45 funding shall be reduced an additional 99.46 $25,000 each year for the 2004-2005 99.47 biennium. 99.48 (4) $353,000 the first year is a 99.49 reduction for strike salary savings. 99.50 Sec. 7. LABOR AND INDUSTRY (324,000) (402,000) 99.51 Summary by Fund 99.52 General (324,000) (502,000) 100.1 Special Revenue -0- 100,000 100.2 $70,000 the first year and $141,000 the 100.3 second year are for staff reductions. 100.4 $100,000 the second year is a transfer 100.5 from the workforce development fund for 100.6 statewide and agency indirect costs 100.7 associated with the apprenticeship 100.8 program. 100.9 Sec. 8. BUREAU OF MEDIATION 100.10 SERVICES (30,000) (30,000) 100.11 These amounts reduce labor-management 100.12 cooperation grants. Base funding for 100.13 labor-management cooperation grants is 100.14 $252,000 each year for the 2004-2005 100.15 biennium. 100.16 Sec. 9. MINNESOTA HISTORICAL SOCIETY 100.17 Subdivision 1. Total 100.18 Appropriation (400,000) (400,000) 100.19 It is the intention of the legislature 100.20 that all reductions in the society's 100.21 budget be implemented with the smallest 100.22 possible reduction in services and 100.23 without the closing of sites. 100.24 Subd. 2. Education 100.25 and Outreach (224,000) (224,000) 100.26 Base funding is reduced by $146,000 100.27 each year for the 2004-2005 biennium. 100.28 Subd. 3. Preservation 100.29 and Access (176,000) (176,000) 100.30 Base funding is reduced by $104,000 100.31 each year for the 2004-2005 biennium. 100.32 Sec. 10. [CANCELLATIONS AND TRANSFERS.] 100.33 Subdivision 1. [JOURNEY TRAVEL INFORMATION SYSTEM.] The 100.34 Laws 1999, chapter 223, article 1, section 2, subdivision 5, 100.35 appropriation to the office of tourism to fund the Journey 100.36 travel information system, estimated to be $426,000, is canceled 100.37 to the general fund. 100.38 Subd. 2. [RURAL POLICY DEVELOPMENT CENTER FUND.] After 100.39 July 1, 2003, and before June 30, 2004, the commissioner of 100.40 finance shall transfer $1,000,000 from the rural policy 100.41 development center fund established in Minnesota Statutes, 100.42 section 116J.422, to the general fund. After July 1, 2004, and 100.43 before June 30, 2005, the commissioner shall transfer an 100.44 additional $1,000,000 from the rural policy development center 100.45 fund to the general fund. 100.46 Subd. 3. [REAL ESTATE EDUCATION, RESEARCH, AND RECOVERY 101.1 FUND.] By June 15, 2002, the commissioner of finance shall 101.2 transfer $3,200,000 from the real estate education, research, 101.3 and recovery fund established under Minnesota Statutes, section 101.4 82.34, to the general fund. 101.5 Subd. 4. [WORLD TRADE CONFERENCE CENTER.] The balances of 101.6 all special revenue accounts for the World Trade Conference 101.7 Center in the trade office, estimated to be $30,000, are 101.8 transferred to the general fund. 101.9 Sec. 11. Minnesota Statutes 2000, section 82.34, 101.10 subdivision 3, is amended to read: 101.11 Subd. 3. [FEE FOR REAL ESTATE FUND.] Each real estate 101.12 broker, real estate salesperson, and real estate closing agent 101.13 entitled under this chapter to renew a license shall pay in 101.14 addition to the appropriate renewal fee a further fee of$50$20 101.15 per licensing period which shall be credited to the real estate 101.16 education, research, and recovery fund. Any person who receives 101.17 an initial license shall pay, in addition to all other fees 101.18 payable, a fee of$75 if the license expires more than 12 months101.19after issuance, $50 if the license expires less than 12 months101.20after issuance$30. 101.21 Sec. 12. Laws 2001, First Special Session chapter 4, 101.22 article 1, section 4, subdivision 6, is amended to read: 101.23 Subd. 6. Economic Security Contingent Account 101.24 Beginning in the 2002-2003 biennium, 101.25 the first $2,000,000 deposited in each 101.26 year of the biennium into the economic 101.27 security contingent account created 101.28 under Minnesota Statutes, section 101.29 268.196, subdivision 3, shall be 101.30 transferred upon deposit to the 101.31 workforce development fund. Deposits 101.32 in excess of the $2,000,000, estimated 101.33 to amount to $650,000, shall beused101.34for purposes of the economic security101.35contingent account. It is the intent101.36of the legislature that in future101.37years, $2,000,000 each year will be101.38transferred in this mannertransferred 101.39 upon deposit to the general fund. 101.40[EFFECTIVE DATE.] This section is effective the day 101.41 following final enactment. 101.42 Sec. 13. Laws 2001, First Special Session chapter 4, 101.43 article 3, section 1, is amended to read: 102.1 Section 1. [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 102.2 The department of economic security is abolished. 102.3[EFFECTIVE DATE.] This section is effective July 1, 102.420022003. 102.5 Sec. 14. Laws 2001, First Special Session chapter 4, 102.6 article 3, section 2, subdivision 1, is amended to read: 102.7 Subdivision 1. [TO DEPARTMENT OF TRADE AND ECONOMIC 102.8 DEVELOPMENT.] The responsibilities of the department of economic 102.9 security performed by its workforce services unit for employment 102.10 transition services, youth services, welfare-to-work services, 102.11 and workforce exchange services are transferred to the 102.12 department of trade and economic development. 102.13[EFFECTIVE DATE.] This subdivision is effective July 1, 102.1420022003. 102.15 Sec. 15. Laws 2001, First Special Session chapter 4, 102.16 article 3, section 3, is amended to read: 102.17 Sec. 3. [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 102.18 DEVELOPMENT.] 102.19 The department of trade and economic development shall have 102.20 a division of economic development consisting of business and 102.21 community development, the Minnesota trade office, tourism 102.22 division, information and analysis division, and administrative 102.23 support. The job skills partnership program shall be housed in 102.24 the department and shall have a policy, research, and evaluation 102.25 unit. The job skills partnership board shall provide 102.26 targeted-worker services to include the dislocated worker 102.27 program and welfare-to-work services formerly located in the 102.28 department of economic security. The board shall have a unit 102.29 providing special programs under a workforce transition services 102.30 unit. 102.31[EFFECTIVE DATE.] This section is effective July 1, 102.3220022003. 102.33 Sec. 16. [REORGANIZATION POWERS SUSPENDED.] 102.34 Notwithstanding Minnesota Statutes, section 16B.37, the 102.35 commissioner of administration may not issue a reorganization 102.36 order affecting the department of economic security until July 103.1 1, 2003. 103.2 Sec. 17. [EFFECTIVE DATE.] 103.3 Except as otherwise provided in this article, this article 103.4 is effective the day following final enactment. 103.5 ARTICLE 13 103.6 CANCELLATIONS, TRANSFERS, AND ADJUSTMENTS 103.7 Section 1. Minnesota Statutes 2000, section 16A.103, 103.8 subdivision 1a, is amended to read: 103.9 Subd. 1a. [FORECAST PARAMETERS.] The forecast must assume 103.10 the continuation of current laws and reasonable estimates of 103.11 projected growth in the national and state economies and 103.12 affected populations. Revenue must be estimated for all sources 103.13 provided for in current law. Expenditures must be estimated for 103.14 all obligations imposed by law and those projected to occur as a 103.15 result ofinflation andvariables outside the control of the 103.16 legislature. Expenditure estimates must not include an 103.17 allowance for inflation. 103.18 Sec. 2. Minnesota Statutes 2000, section 16A.103, 103.19 subdivision 1b, is amended to read: 103.20 Subd. 1b. [FORECAST VARIABLE.] In determiningthe rate of103.21inflation, the application of inflation,the amount of state 103.22 bonding as it affects debt service, the calculation of 103.23 investment income, and the other variables to be included in the 103.24 expenditure part of the forecast, the commissioner must consult 103.25 with the chairs and lead minority members of the senate state 103.26 government finance committee and the house ways and means 103.27 committee, and legislative fiscal staff. This consultation must 103.28 occur at least three weeks before the forecast is to be 103.29 released. No later than two weeks prior to the release of the 103.30 forecast, the commissioner must inform the chairs and lead 103.31 minority members of the senate state government finance 103.32 committee and the house ways and means committee, and 103.33 legislative fiscal staff of any changes in these variables from 103.34 the previous forecast. 103.35 Sec. 3. Minnesota Statutes 2000, section 16A.152, 103.36 subdivision 1, is amended to read: 104.1 Subdivision 1. [CASH FLOW ACCOUNT ESTABLISHED.] (a) A cash 104.2 flow account is created in the general fund in the state 104.3 treasury. Beginning July 1, 2003, the commissioner of finance 104.4 shall restrict part or all of the balance before reserves in the 104.5 general fund as may be necessary to fund the cash flow 104.6 accountas provided by law, up to $350,000,000. 104.7 (b)The commissioner of finance shall transfer the amount104.8necessary to bring the total amount of the cash flow account to104.9$350,000,000 on July 1, 1995.The amounts restricted are 104.10 transferred to the cash flow account and shall remain in the 104.11 account until drawn down and used to meet cash flow deficiencies 104.12 resulting from uneven distribution of revenue collections and 104.13 required expenditures during a fiscal year. 104.14 Sec. 4. Minnesota Statutes 2001 Supplement, section 104.15 16A.152, subdivision 1a, is amended to read: 104.16 Subd. 1a. [BUDGET RESERVE.] A budget reserve accountof104.17$653,000,000is created in the general fund in the state 104.18 treasury. The commissioner of finance shall transfer to the 104.19 budget reserve account on July 1 of each odd-numbered year any 104.20 amounts specifically appropriated by law to the budget reserve. 104.21 Sec. 5. Minnesota Statutes 2001 Supplement, section 104.22 16A.152, subdivision 2, is amended to read: 104.23 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis 104.24 of a forecast of general fund revenues and expenditures, the 104.25 commissioner of finance determines that there will be a positive 104.26 unrestricted budgetary general fund balance at the close of the 104.27 biennium, the commissioner of finance must allocate money to the 104.28 budget reserve until the total amount in the account equalsthe104.29amount set in this section$653,000,000. 104.30 The amounts necessary to meet the requirements of this 104.31 section are appropriated from the general fund within two weeks 104.32 after the forecast is released. 104.33 Sec. 6. Minnesota Statutes 2000, section 144.395, 104.34 subdivision 1, is amended to read: 104.35 Subdivision 1. [CREATION.] (a) The tobacco use prevention 104.36 and local public health endowment fund is created in the state 105.1 treasury. The state board of investment shall invest the fund 105.2 under section 11A.24. All earnings of the fund must be credited 105.3 to the fund. The principal of the fund must be maintained 105.4 inviolate, except that the principal may be used to make 105.5 expenditures from the fund for the purposes specified in this 105.6 section when the market value of the fund falls below 105 105.7 percent of the cumulative total of the tobacco settlement 105.8 payments received by the state and credited to the tobacco 105.9 settlement fund under section 16A.87, subdivision 2. For 105.10 purposes of this section, "principal" means an amount equal to 105.11 the cumulative total of the tobacco settlement payments received 105.12 by the state and credited to the tobacco settlement fund under 105.13 section 16A.87, subdivision 2. 105.14 (b) If the commissioner of finance determines that probable 105.15 receipts to the general fund will not be sufficient to meet the 105.16 need for expenditures from the general fund for a fiscal 105.17 biennium, the commissioner may use cash reserves of the tobacco 105.18 use prevention and local public health endowment fund to pay 105.19 expenses of the general fund. If cash reserves are transferred 105.20 to the general fund to meet cash flow needs, the cash flow 105.21 transfers must be returned to the endowment fund as soon as 105.22 sufficient cash balances are available in the general fund, but 105.23 in any event before the end of the fiscal biennium. Any 105.24 interest earned on cash flow transfers from the endowment fund 105.25 accrues to the endowment fund and not to the general fund. 105.26 Sec. 7. [BALANCES CANCELED TO GENERAL FUND.] 105.27 The unobligated balances in the following general fund 105.28 accounts created in the sections of Minnesota Statutes indicated 105.29 are canceled to the general fund in the fiscal years indicated: 105.30 (1) the budget reserve account, Minnesota Statutes, section 105.31 16A.152, subdivision 1a, estimated to be $653,000,000, in fiscal 105.32 year 2002; 105.33 (2) the local government aid reform account, Minnesota 105.34 Statutes, section 16A.1523, estimated to be $14,000,000, in 105.35 fiscal year 2003; 105.36 (3) the tax relief account, Minnesota Statutes, section 106.1 16A.1522, subdivision 4, estimated to be $158,148,000, in fiscal 106.2 year 2004; and 106.3 (4) $195,000,000 of the unobligated balance in the cash 106.4 flow account in Minnesota Statutes, section 16A.152, subdivision 106.5 1. 106.6 Sec. 8. [TIF GRANT FUND.] 106.7 Subdivision 1. [APPROPRIATION REDUCTION.] The 106.8 appropriations for the TIF grant account in Minnesota Statutes, 106.9 section 469.1799, subdivision 3, of $91,000,000 in fiscal year 106.10 2002 and $38,000,000 in fiscal year 2003 are canceled. 106.11 Subd. 2. [REPEALER.] Minnesota Statutes 2001 Supplement, 106.12 section 469.1799, subdivisions 1 and 3, are repealed. 106.13 Sec. 9. [TRANSFERS TO GENERAL FUND.] 106.14 Subdivision 1. [ASSIGNED RISK PLAN.] By June 30, 2002, the 106.15 commissioner of finance shall transfer $120,000,000 in assets of 106.16 the assigned risk plan created under Minnesota Statutes, section 106.17 79.252, to the general fund. $25,100,000 is appropriated from 106.18 the general fund to the commissioner of finance to fund the 106.19 settlement of the lawsuit entitled Danny's Trannys, Inc. et al. 106.20 v. State, et al., Ramsey County District Court No. C7-00-5714, 106.21 and to reimburse the tort claims account for amounts paid to 106.22 implement settlement of this lawsuit. 106.23 Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003, 106.24 but no later than June 30, 2003, the commissioner of finance 106.25 shall transfer $230,000,000 in assets of the excess surplus 106.26 account of the special compensation fund created under Minnesota 106.27 Statutes, section 176.129, to the general fund. 106.28 Subd. 3. [REPEALER.] Laws 2000, chapter 447, section 25, 106.29 is repealed. 106.30 Sec. 10. [APPROPRIATIONS REDUCED AND CANCELED.] 106.31 Of the appropriations in Laws 2000, chapter 492, article 2, 106.32 to the metropolitan council for a bus transitway, the 106.33 appropriation for fiscal year 2001 is reduced to $4,000,000 and 106.34 the appropriation for fiscal year 2002 is canceled. 106.35 Sec. 11. [REPEALER.] 106.36 Minnesota Statutes 2001 Supplement, section 16A.1523, is 107.1 repealed. 107.2 Sec. 12. [EFFECTIVE DATE.] 107.3 This article is effective the day following final 107.4 enactment, except that section 6 is effective July 1, 2003. 107.5 ARTICLE 14 107.6 CONTINUING CARE AND LONG-TERM CARE 107.7 Section 1. Minnesota Statutes 2000, section 252.282, 107.8 subdivision 1, is amended to read: 107.9 Subdivision 1. [HOST COUNTY RESPONSIBILITY.] (a) For 107.10 purposes of this section, "local system needs planning" means 107.11 the determination of need for ICF/MR services by program type, 107.12 location, demographics, and size of licensed services for 107.13 persons with developmental disabilities or related conditions. 107.14 (b) This section does not apply to semi-independent living 107.15 services and residential-based habilitation services funded as 107.16 home and community-based services. 107.17 (c) In collaboration with the commissioner and ICF/MR 107.18 providers, counties shall complete a local system needs planning 107.19 process for each ICF/MR facility. Counties shall evaluate the 107.20 preferences and needs of persons with developmental disabilities 107.21 to determine resource demands through a systematic assessment 107.22 and planning process by May 15, 2000, and by July 1 every two 107.23 years thereafter beginning in 2001. 107.24 (d) A local system needs planning process shall be 107.25 undertaken more frequently when the needs or preferences of 107.26 consumers change significantly to require reformation of the 107.27 resources available to persons with developmental disabilities. 107.28 (e) A local system needs plan shall be amended anytime 107.29 recommendations for modifications to existing ICF/MR services 107.30 are made to the host county, including recommendations for: 107.31 (1) closure; 107.32 (2) relocation of services; 107.33 (3) downsizing; or 107.34 (4)rate adjustments exceeding 90 days duration to address107.35access; or107.36(5)modification of existing services for which a change in 108.1 the framework of service delivery is advocated. 108.2 Sec. 2. Minnesota Statutes 2000, section 252.282, 108.3 subdivision 3, is amended to read: 108.4 Subd. 3. [RECOMMENDATIONS.] (a) Upon completion of the 108.5 local system needs planning assessment, the host county shall 108.6 make recommendations by May 15, 2000, and by July 1 every two 108.7 years thereafter beginning in 2001. If no change is 108.8 recommended, a copy of the assessment along with corresponding 108.9 documentation shall be provided to the commissioner by July 1 108.10 prior to the contract year. 108.11 (b) Except as provided in section 252.292, subdivision 4, 108.12 recommendations regarding closures, relocations, or downsizings 108.13 that include a rate increaseand recommendations regarding rate108.14adjustments exceeding 90 daysshall be submitted to the 108.15 statewide advisory committee for reviewand determination, along 108.16 with the assessment, plan, and correspondingbudget108.17 documentation that supports the payment rate adjustment request. 108.18 (c) Recommendations for closures, relocations, and 108.19 downsizings that do not include a rate increase and for 108.20 modification of existing services for which a change in the 108.21 framework of service delivery is necessary shall be provided to 108.22 the commissioner by July 1 prior to the contract year or at 108.23 least 90 days prior to the anticipated change, along with the 108.24 assessment and corresponding documentation. 108.25 Sec. 3. Minnesota Statutes 2000, section 252.282, 108.26 subdivision 4, is amended to read: 108.27 Subd. 4. [STATEWIDE ADVISORY COMMITTEE.] (a) The 108.28 commissioner shall appoint a five-member statewide advisory 108.29 committee. The advisory committee shall include representatives 108.30 of providers and counties and the commissioner or the 108.31 commissioner's designee. 108.32 (b) The criteria for ranking proposals, already developed 108.33 in 1997 by a task force authorized by the legislature, shall be 108.34 adopted and incorporated into the decision-making process. 108.35 Specific guidelines, including: 108.36 (1) time frame for submission of requests; 109.1 (2) the funds appropriated by the legislature for the 109.2 purposes outlined in section 256B.5013, subdivisions 2 to 4; and 109.3 (3) state policy directions for the provision of services 109.4 to persons with developmental disabilities, shall be established 109.5 and announced through the State Register, and all requests shall 109.6 be considered in comparison to each other and the ranking 109.7 criteria. The advisory committee shall review and recommend 109.8 requestsforto the commissioner for approval of facility rate 109.9 adjustments to address closures,downsizing, relocation, or109.10access needs within the county and shall forward recommendations109.11and documentation to the commissionerdownsizings, or 109.12 relocations. The committee shall ensure that: 109.13 (1) applications are in compliance with applicable state 109.14 and federal law and with the state plan;and109.15 (2) cost projections for the proposed service are within 109.16fiscal limitationsthe fundings limits established by the 109.17 legislative appropriation; and 109.18 (3) their recommendations are submitted to the commissioner. 109.19(c) The advisory committee shall review proposals and109.20submit recommendations to the commissioner within 60 days109.21following the published deadline for submission under109.22subdivision 5.109.23 Sec. 4. Minnesota Statutes 2000, section 252.282, 109.24 subdivision 5, is amended to read: 109.25 Subd. 5. [RESPONSIBILITIES OF COMMISSIONER.] (a) In 109.26 collaboration with counties, providers, and the statewide 109.27 advisory committee, the commissioner shall ensure that services 109.28 recognize the preferences and needs of persons with 109.29 developmental disabilities and related conditions through a 109.30 recurring systemic review and assessment of ICF/MR facilities 109.31 within the state. 109.32 (b) The commissioner shall publish a notice in the State 109.33 Registertwice each calendar yearno less than biannually to 109.34 announce the opportunity for counties or providers to submit 109.35 requests for payment rate adjustments associated with plans for 109.36 downsizing, relocation, and closure of ICF/MR facilities. 110.1 (c) The commissioner shall designate funding parameters to 110.2 counties and to the statewide advisory committee for the overall 110.3 implementation of system needs within the fiscal resources 110.4 allocated by the legislature. 110.5 (d) The commissioner shall contract with ICF/MR providers. 110.6 The initial contracts shall cover the period from October 1, 110.7 2000, to December 31, 2001. Subsequent contracts shall be for 110.8 two-year periods beginning January 1, 2002. 110.9 Sec. 5. Minnesota Statutes 2000, section 256.9657, 110.10 subdivision 1, is amended to read: 110.11 Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a) 110.12 Effective July 1, 1993, each non-state-operated nursing home 110.13 licensed under chapter 144A shall pay to the commissioner an 110.14 annual surcharge according to the schedule in subdivision 4. 110.15 The surcharge shall be calculated as $620 per licensed bed. If 110.16 the number of licensed beds is reduced, the surcharge shall be 110.17 based on the number of remaining licensed beds the second month 110.18 following the receipt of timely notice by the commissioner of 110.19 human services that beds have been delicensed. The nursing home 110.20 must notify the commissioner of health in writing when beds are 110.21 delicensed. The commissioner of health must notify the 110.22 commissioner of human services within ten working days after 110.23 receiving written notification. If the notification is received 110.24 by the commissioner of human services by the 15th of the month, 110.25 the invoice for the second following month must be reduced to 110.26 recognize the delicensing of beds. Beds on layaway status 110.27 continue to be subject to the surcharge. The commissioner of 110.28 human services must acknowledge a medical care surcharge appeal 110.29 within 30 days of receipt of the written appeal from the 110.30 provider. 110.31 (b) Effective July 1, 1994, the surcharge in paragraph (a) 110.32 shall be increased to $625. 110.33 (c) Effective August 15, 2003, the surcharge under 110.34 paragraph (b) shall be increased by an amount necessary to 110.35 ensure a net gain to the general fund of $9,620,000 during 110.36 fiscal year 2004 as a result of: 111.1 (1) the total transfers anticipated during the fiscal year 111.2 ending June 30, 2004, under section 256B.19, subdivision 1d, 111.3 paragraph (c); 111.4 (2) the county nursing home payment adjustments under 111.5 section 256B.431, subdivision 23, paragraph (c); 111.6 (3) the surcharges under this paragraph; and 111.7 (4) the nursing facility rate increases under section 111.8 256B.431, subdivision 37. 111.9 The increase under this paragraph shall not exceed $365 per bed. 111.10 (d) Effective August 15, 2004, the surcharge under 111.11 paragraph (c) shall be equal to an amount necessary to ensure a 111.12 net gain to the general fund each fiscal year of $10,228,000 as 111.13 a result of: 111.14 (1) the total transfers anticipated during the fiscal year 111.15 under section 256B.19, subdivision 1d, paragraph (c); 111.16 (2) the county nursing home payment adjustments under 111.17 section 256B.431, subdivision 23, paragraph (c); 111.18 (3) the surcharges under this paragraph; and 111.19 (4) the nursing facility rate increases under section 111.20 256B.431, subdivision 37. 111.21 The surcharge under this paragraph shall not exceed $365 per bed. 111.22 Sec. 6. Minnesota Statutes 2000, section 256B.0916, 111.23 subdivision 5, is amended to read: 111.24 Subd. 5. [ALLOCATION OF NEW DIVERSIONS AND PRIORITIES FOR 111.25 REASSIGNMENT OF RESOURCESAND APPROVAL OF INCREASED CAPACITYFOR 111.26 THE HOME AND COMMUNITY-BASED WAIVER FOR PERSONS WITH MENTAL 111.27 RETARDATION OR RELATED CONDITIONS.]In order to maximize the111.28number of persons served with waiver funds,(a) The commissioner 111.29 shall monitor county utilization of allocated resources and, as 111.30 appropriate, reassign resources not utilizedand approve111.31increased capacity within available county allocations. 111.32 (b) Effective July 1, 2002, the commissioner shall 111.33 authorize the spending of new diversion resources beginning 111.34 January 1 of each year. 111.35 (c) Effective July 1, 2002, the commissioner shall manage 111.36 the reassignment of waiver resources that occur from persons who 112.1 have left the waiver in a manner that results in the cost 112.2 reduction equivalent to delaying the reuse of those waiver 112.3 resources by 180 days. 112.4 (d) Priority consideration for reassignment of resources 112.5and approval of increased capacityshall be given tocounties112.6with sufficient capacity andcounties that form partnerships. 112.7 In addition to the priorities listed in Minnesota Rules, part 112.8 9525.1880, the commissioner shall also give priority 112.9 consideration to persons whose living situations are unstable 112.10 due to the age or incapacity of the primary caregiver and to 112.11 children to avoid out-of-home placement. 112.12 Sec. 7. Minnesota Statutes 2000, section 256B.19, 112.13 subdivision 1, is amended to read: 112.14 Subdivision 1. [DIVISION OF COST.] The state and county 112.15 share of medical assistance costs not paid by federal funds 112.16 shall be as follows: 112.17 (1) ninety percent state funds and ten percent county 112.18 funds, unless otherwise provided below; 112.19 (2) beginning January 1, 1992, 50 percent state funds and 112.20 50 percent county funds for the cost of placement of severely 112.21 emotionally disturbed children in regional treatment centers; 112.22 and 112.23 (3) beginning January 1, 2003, 80 percent state funds and 112.24 20 percent county funds for the costs of nursing facility 112.25 placements of persons with disabilities under the age of 65 that 112.26 have exceeded 90 days. 112.27 For counties that participate in a Medicaid demonstration 112.28 project under sections 256B.69 and 256B.71, the division of the 112.29 nonfederal share of medical assistance expenses for payments 112.30 made to prepaid health plans or for payments made to health 112.31 maintenance organizations in the form of prepaid capitation 112.32 payments, this division of medical assistance expenses shall be 112.33 95 percent by the state and five percent by the county of 112.34 financial responsibility. 112.35 In counties where prepaid health plans are under contract 112.36 to the commissioner to provide services to medical assistance 113.1 recipients, the cost of court ordered treatment ordered without 113.2 consulting the prepaid health plan that does not include 113.3 diagnostic evaluation, recommendation, and referral for 113.4 treatment by the prepaid health plan is the responsibility of 113.5 the county of financial responsibility. 113.6 Sec. 8. Minnesota Statutes 2000, section 256B.19, 113.7 subdivision 1d, is amended to read: 113.8 Subd. 1d. [PORTION OF NONFEDERAL SHARE TO BE PAID BY 113.9 CERTAIN COUNTIES.] (a) In addition to the percentage 113.10 contribution paid by a county under subdivision 1, the 113.11 governmental units designated in this subdivision shall be 113.12 responsible for an additional portion of the nonfederal share of 113.13 medical assistance cost. For purposes of this subdivision, 113.14 "designated governmental unit" means the counties of Becker, 113.15 Beltrami, Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, 113.16 Pennington, Pipestone, Ramsey, St. Louis, Steele, Todd, 113.17 Traverse, and Wadena. 113.18 (b) Beginning in 1994, each of the governmental units 113.19 designated in this subdivision shall transfer before noon on May 113.20 31 to the state Medicaid agency an amount equal to the number of 113.21 licensed beds in any nursing home owned and operated by the 113.22 county, with the county named as licensee, multiplied by $5,723. 113.23 If two or more counties own and operate a nursing home, the 113.24 payment shall be prorated. These sums shall be part of the 113.25 designated governmental unit's portion of the nonfederal share 113.26 of medical assistance costs, but shall not be subject to payback 113.27 provisions of section 256.025. 113.28 (c) Beginning in 2002, in addition to any transfer under 113.29 paragraph (b), each of the governmental units designated in this 113.30 subdivision shall transfer before noon on May 31 to the state 113.31 Medicaid agency an amount equal to the number of licensed beds 113.32 in any nursing home owned and operated by the county on that 113.33 date, with the county named as licensee, multiplied by $10,784. 113.34 The provisions of paragraph (b) apply to transfers under this 113.35 paragraph. 113.36 (d) The commissioner may reduce the intergovernmental 114.1 transfers under paragraph (c) based on the commissioner's 114.2 determination of the payment rate in section 256B.431, 114.3 subdivision 23, paragraphs (c) and (d). Any adjustments must be 114.4 made on a per-bed basis and must result in an amount equivalent 114.5 to the total amount resulting from the rate adjustment in 114.6 section 256B.431, subdivision 23, paragraphs (c) and (d). 114.7[EFFECTIVE DATE.] This section is effective the day 114.8 following final enactment. 114.9 Sec. 9. Minnesota Statutes 2000, section 256B.431, 114.10 subdivision 23, is amended to read: 114.11 Subd. 23. [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 114.12 Beginning in 1994, the commissioner shall pay a nursing home 114.13 payment adjustment on May 31 after noon to a county in which is 114.14 located a nursing home that, as of January 1 of the previous 114.15 year, was county-owned and operated, with the county named as 114.16 licensee by the commissioner of health, and had over 40 beds and 114.17 medical assistance occupancy in excess of 50 percent during the 114.18 reporting year ending September 30, 1991. The adjustment shall 114.19 be an amount equal to $16 per calendar day multiplied by the 114.20 number of beds licensed in the facility as of September 30, 1991. 114.21 (b) Payments under paragraph (a) are excluded from medical 114.22 assistance per diem rate calculations. These payments are 114.23 required notwithstanding any rule prohibiting medical assistance 114.24 payments from exceeding payments from private pay residents. A 114.25 facility receiving a payment under paragraph (a) may not 114.26 increase charges to private pay residents by an amount 114.27 equivalent to the per diem amount payments under paragraph (a) 114.28 would equal if converted to a per diem. 114.29 (c) Beginning in 2002, in addition to any payment under 114.30 paragraph (a), the commissioner shall pay to a nursing facility 114.31 described in paragraph (a) an adjustment in an amount equal to 114.32 $29.55 per calendar day multiplied by the number of beds 114.33 licensed in the facility on that date. The provisions of 114.34 paragraphs (a) and (b) apply to payments under this paragraph. 114.35 (d) The commissioner may reduce payments under paragraph (c) 114.36 based on the commissioner's determination of Medicare upper 115.1 payment limits. Any adjustments must be proportional to 115.2 adjustments made under section 256B.19, subdivision 1d, 115.3 paragraph (d). 115.4[EFFECTIVE DATE.] This section is effective the day 115.5 following final enactment. 115.6 Sec. 10. Minnesota Statutes 2000, section 256B.431, is 115.7 amended by adding a subdivision to read: 115.8 Subd. 37. [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 115.9 2003.] For rate years beginning on or after July 1, 2003, the 115.10 commissioner shall provide to each nursing home reimbursed under 115.11 this section or section 256B.434 an increase in each case mix 115.12 payment rate equal to the increase in the per-bed surcharge paid 115.13 under section 256.9657, subdivision 1, paragraph (c) or (d), 115.14 divided by 365 and further divided by .80. The increase under 115.15 this subdivision shall be added following the determination of 115.16 the payment rate for the home under this chapter. The increase 115.17 shall not be subject to any annual percentage increase. 115.18 Sec. 11. Minnesota Statutes 2001 Supplement, section 115.19 256B.437, subdivision 2, is amended to read: 115.20 Subd. 2. [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 115.21 SERVICES.] (a) The commissioner of human services shall 115.22 establish a process to adjust the capacity and distribution of 115.23 long-term care services to equalize the supply and demand for 115.24 different types of services. This process must include 115.25 community planning, expansion or establishment of needed 115.26 services, and analysis of voluntary nursing facility closures. 115.27 (b) The purpose of this process is to support the planning 115.28 and development of community-based services. This process must 115.29 support early intervention, advocacy, and consumer protection 115.30 while providing resources and incentives for expanded county 115.31 planning and for nursing facilities to transition to meet 115.32 community needs. 115.33 (c) The process shall support and facilitate expansion of 115.34 community-based services under the county-administered 115.35 alternative care program under section 256B.0913 and waivers for 115.36 elderly under section 256B.0915, including, but not limited to, 116.1 the development of supportive services such as housing and 116.2 transportation. The process shall utilize community assessments 116.3 and planning developed for the community health services plan 116.4 and plan update and for the community social services act plan, 116.5 and other relevant information. 116.6 (d) The commissioners of health and human services, as 116.7 appropriate, shall provide, by July 15, 2001, available data 116.8 necessary for the county, including, but not limited to, data on 116.9 nursing facility bed distribution, housing with services 116.10 options, the closure of nursing facilities that occur outside of 116.11 the planned closure process, and approval of planned closures in 116.12 the county and contiguous counties. 116.13 (e) Each county shall submit to the commissioner of human 116.14 services, by October 15, 2001, a gaps analysis that identifies 116.15 local service needs, pending development of services, and any 116.16 other issues that would contribute to or impede further 116.17 development of community-based services. The gaps analysis must 116.18 also be sent to the local area agency on aging and, if 116.19 applicable, local SAIL projects, for review and comment. The 116.20 review and comment must assess needs across county boundaries. 116.21 The area agencies on aging and SAIL projects must provide the 116.22 commissioner and the counties with their review and analyses by 116.23 November 15, 2001. 116.24 (f) The addendum to the biennial plan shall be submitted 116.25annuallybiennially, beginning December 31, 2001, andeach116.26December 31every other year thereafter in accordance with the 116.27 Community Social Services Act plan timeline, and shall include 116.28 recommendations for development of community-based 116.29 services. Area agencies on aging and SAIL projects must provide 116.30 the commissioner and the counties with their review and analyses 116.31 within 60 days following the Community Social Services Act plan 116.32 submission date. Both planning and implementation shall be 116.33 implemented within the amount of funding made available to the 116.34 county board for these purposes. 116.35 (g) The plan, within the funding allocated, shall: 116.36 (1) include the gaps analysis required by paragraph (e); 117.1 (2) involve providers, consumers, cities, townships, 117.2 businesses, and area agencies on aging in the planning process; 117.3 (3) address the availability of alternative care and 117.4 elderly waiver services for eligible recipients; 117.5 (4) address the development of other supportive services, 117.6 such as transit, housing, and workforce and economic 117.7 development; and 117.8 (5) estimate the cost and timelines for development. 117.9 (h) The biennial plan addendum shall be coordinated with 117.10 the county mental health plan for inclusion in the community 117.11 health services plan and included as an addendum to the 117.12 community social services plan. 117.13 (i) The county board having financial responsibility for 117.14 persons present in another county shall cooperate with that 117.15 county for planning and development of services. 117.16 (j) The county board shall cooperate in planning and 117.17 development of community-based services with other counties, as 117.18 necessary, and coordinate planning for long-term care services 117.19 that involve more than one county, within the funding allocated 117.20 for these purposes. 117.21 (k) The commissioners of health and human services, in 117.22 cooperation with county boards, shall report biennially to the 117.23 legislatureby February 1 of each year, beginning February 1, 117.24 2002, regarding the development of community-based services, 117.25 transition or closure of nursing facilities, and specific gaps 117.26 in services in identified geographic areas that may require 117.27 additional resources or flexibility, as documented by the 117.28 process in this subdivisionand reported to the commissioners by117.29December 31 of each year. 117.30 Sec. 12. Minnesota Statutes 2001 Supplement, section 117.31 256B.439, subdivision 1, is amended to read: 117.32 Subdivision 1. [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 117.33 PROFILES.] (a) The commissioner of human services, in 117.34 cooperation with the commissioner of health, shall develop and 117.35 implement a quality profile system for nursing facilities and, 117.36 beginning not later than July 1,20032004, other providers of 118.1 long-term care services, except when the quality profile system 118.2 would duplicate requirements under section 256B.5011, 256B.5012, 118.3 or 256B.5013. The system must be developed and implemented to 118.4 the extent possible without the collection of significant 118.5 amounts of new data. To the extent possible, the system must 118.6 incorporate or be coordinated with information on quality 118.7 maintained by area agencies on aging, long-term care trade 118.8 associations, and other entities. The system must be designed 118.9 to provide information on quality to: 118.10 (1) consumers and their families to facilitate informed 118.11 choices of service providers; 118.12 (2) providers to enable them to measure the results of 118.13 their quality improvement efforts and compare quality 118.14 achievements with other service providers; and 118.15 (3) public and private purchasers of long-term care 118.16 services to enable them to purchase high-quality care. 118.17 (b) The system must be developed in consultation with the 118.18 long-term care task force, area agencies on aging, and 118.19 representatives of consumers, providers, and labor unions. 118.20 Within the limits of available appropriations, the commissioners 118.21 may employ consultants to assist with this project. 118.22 Sec. 13. Minnesota Statutes 2001 Supplement, section 118.23 256B.439, subdivision 4, is amended to read: 118.24 Subd. 4. [DISSEMINATION OF QUALITY PROFILES.] By July 118.25 1,20022003, the commissioners shall implement a system to 118.26 disseminate the quality profiles developed from consumer surveys 118.27 using the quality measurement tool. Profiles may be 118.28 disseminated to the Senior LinkAge line and to consumers, 118.29 providers, and purchasers of long-term care services through all 118.30 feasible printed and electronic outlets. The commissioners may 118.31 conduct a public awareness campaign to inform potential users 118.32 regarding profile contents and potential uses. 118.33[EFFECTIVE DATE.] This section is effective the day 118.34 following final enactment. 118.35 Sec. 14. Minnesota Statutes 2001 Supplement, section 118.36 256B.5013, subdivision 1, is amended to read: 119.1 Subdivision 1. [VARIABLE RATE ADJUSTMENTS.] (a) For rate 119.2 years beginning on or after October 1, 2000, when there is a 119.3 documented increase in theresourceneeds of a current ICF/MR 119.4 recipientor recipients, or a person is admitted to a facility119.5who requires additional resources, the county of financial 119.6 responsibility may recommendapproval ofa variable rate to 119.7 enable the facility to meet the individual's increased needs. 119.8 Variable rate adjustments made under this subdivision replace 119.9 payments for persons with special needs under section 256B.501, 119.10 subdivision 8, and payments for persons with special needs for 119.11 crisis intervention services under section 256B.501, subdivision 119.12 8a.Resource needs directly attributable to an individual that119.13may be considered under the variable rate adjustment include119.14increased direct staff hours, other specialized services, and119.15equipment. The guidelines in paragraphs (a) to (d) apply for119.16the payment rate adjustments under this section.Facilities 119.17 with a base rate above the 50th percentile of the statewide 119.18 average reimbursement rate for a Class A facility or Class B 119.19 facility, whichever matches the facility licensure, are not 119.20 eligible for a variable rate adjustment. Variable rate 119.21 adjustments may not exceed a 12-month period, except when 119.22 approved for purposes established in paragraph (b), clause (1). 119.23 Variable rate adjustments approved solely on the basis of 119.24 changes on a developmental disabilities screening document will 119.25 end June 30, 2002. 119.26(a) All persons must be screened according to section119.27256B.092, subdivisions 7 and 8, prior to implementation of the119.28new payment system, and annually thereafter, and when a variable119.29rate is being requested due to changes in the needs of the119.30recipient. Screening data shall be used to monitor changes as119.31follows:119.32(1) the functional ability of a recipient to care for and119.33maintain the recipient's own basic needs;119.34(2) the intensity of any aggressive or destructive119.35behavior; and119.36(3) any history of obstructive behavior in combination with120.1a diagnosis of psychosis or neurosis.120.2 (b) A variable rate may be recommended by the county of 120.3 financial responsibility for increasedserviceneedssuch asin 120.4 the following situations: 120.5 (1) a need for resources due toa change in resident day120.6program participation because the residentan individual's full 120.7 or partial retirement from participation in a day training and 120.8 habilitation service when the individual: (i) has reached the 120.9 age of 65 or has a change in health condition that makes it 120.10 difficult for the person to participate in day training and 120.11 habilitation services over an extended period of time because it 120.12 is medically contraindicated; and (ii) has expressed a desire 120.13 for change through the mental retardation and related conditions 120.14 screening process under section 256B.092;and120.15 (2) a need for additional resources for intensive 120.16 short-term programming which is necessary prior toa recipient's120.17 an individual's discharge to a less restrictive, more integrated 120.18 setting.; 120.19Recommendations for a variable rate shall be used to link120.20resource needs to funding. The variable rate must be applied to120.21expenses related to increased direct staff hours, other120.22specialized services, and equipment.120.23(c) A recipient must be screened by the county of financial120.24responsibility using the developmental disabilities screening120.25document completed immediately prior to approval of a variable120.26rate by the county. A comparison of the updated screening and120.27the previous screening must demonstrate an increase in resource120.28needs.120.29(d) Rate adjustments projected to exceed the authorized120.30funding level associated with the person's profile must be120.31submitted to the commissioner.120.32 (3) a demonstrated medical need that significantly impacts 120.33 the type or amount of services needed by the individual; or 120.34 (4) a demonstrated behavioral need that significantly 120.35 impacts the type or amount of services needed by the individual. 120.36(e)(c) The county of financial responsibility must 121.1indicatejustify the purpose, the projected length of timethat, 121.2 and the additional fundingmay beneeded for the facility to 121.3 meet the needs of the individual.The need to continue an121.4individual variable rate must be reviewed at the end of the121.5anticipated duration of need but at least annually through the121.6completion of the developmental disabilities screening document.121.7 (d) The facility shall provide a quarterly report to the 121.8 county case manager on the use of the variable rate funds and 121.9 the status of the individual on whose behalf the funds were 121.10 approved. The county case manager will forward the facility's 121.11 report with a recommendation to the commissioner to approve or 121.12 disapprove a continuation of the variable rate. 121.13 (e) Funds made available through the variable rate process 121.14 that are not used by the facility to meet the needs of the 121.15 individual for whom they were approved shall be returned to the 121.16 state. 121.17 Sec. 15. Minnesota Statutes 2000, section 256B.5013, 121.18 subdivision 2, is amended to read: 121.19 Subd. 2. [OTHER PAYMENT RATE ADJUSTMENTS.] Facility total 121.20 payment rates may be adjusted by the commissioner following the 121.21 recommendation of both the host county, with authorization from121.22aand the statewide advisory committee,if, through the local 121.23 system needs planning process, it is determined that a need 121.24 exists to amend the package of purchased services with a 121.25 resulting increase or decrease in costs. Except as provided in 121.26 section 252.292, subdivision 4, if a provider demonstrates that 121.27 the loss of revenues caused by the downsizing or closure of a 121.28 facility cannot be absorbed by the facility based on current 121.29 operations, the host county or the provider may submit a request 121.30 to the statewide advisory committee for a facility base rate 121.31 adjustment. Funds for this purpose are limited to those made 121.32 available through a legislative appropriation and published in 121.33 the State Register notice required by section 252.282, 121.34 subdivision 5. 121.35 Sec. 16. Minnesota Statutes 2000, section 256B.5013, 121.36 subdivision 4, is amended to read: 122.1 Subd. 4. [TEMPORARY RATE ADJUSTMENTS TO ADDRESS OCCUPANCY 122.2 AND ACCESS.]If a facility is operating at less than 100 percent122.3occupancy on September 30, 2000, or if a recipient is discharged122.4from a facility,Beginning July 1, 2002, the commissioner shall 122.5 adjust the total payment rate for up to9075 days for the 122.6 remaining recipients for facilities in which the monthly 122.7 occupancy rate of licensed beds is 75 percent or greater. This 122.8 mechanism shall not be used to pay for hospital or therapeutic 122.9 leave days beyond the maximums allowed.Facility payment122.10adjustments exceeding 90 days to address a demonstrated need for122.11access must be submitted to the statewide advisory committee122.12with a local system needs assessment, plan, and budget for122.13review and recommendation.122.14 Sec. 17. Minnesota Statutes 2000, section 256B.5013, 122.15 subdivision 5, is amended to read: 122.16 Subd. 5. [REQUIRED OCCUPANCY DATA; PAYMENT ADJUSTMENTS.] 122.17 Facilities shall maintainand submitmonthly occupancy bed use 122.18 datain the form of resident days and variable rate122.19information. When a variable rate is reported by a facility,122.20monthly bed use data shall be used to track the amount and time122.21span of the rate adjustment. The total payments made to a122.22facility may be adjusted based on concurrent changes in the122.23needs of recipients that are covered by a variable rate122.24adjustment. Any adjustment for multiple resident changes shall122.25not result in a decrease to the facility base rateby client and 122.26 report this data monthly in a format determined by the 122.27 commissioner. 122.28 Sec. 18. Minnesota Statutes 2000, section 256B.5013, 122.29 subdivision 6, is amended to read: 122.30 Subd. 6. [COMMISSIONER REVIEWCOMMISSIONER'S 122.31 RESPONSIBILITIES.]During the initial contracting period,The 122.32 commissioner shallreview the process of variable rate122.33adjustments to determine if the variable rate process is being122.34effectively implemented and whether the variable rate process122.35minimizes unnecessary detailed recordkeeping and meets recipient122.36needs.: 123.1 (1) make a determination to approve, deny, or modify a 123.2 request for a variable rate adjustment within 30 days of the 123.3 receipt of the completed application; 123.4 (2) notify the ICF/MR facility and county case manager of 123.5 the duration and conditions of variable rate adjustment 123.6 approvals; 123.7 (3) modify MMIS II service agreements to reimburse ICF/MR 123.8 facilities for approved variable rates; 123.9 (4) provide notification of legislatively appropriated 123.10 funding for facility closures, downsizings, and relocations; 123.11 (5) assess the fiscal impacts of the proposals for 123.12 closures, downsizings, and relocations forwarded for 123.13 consideration through the state advisory committee; and 123.14 (6) review the payment rate process on a biannual basis and 123.15 make recommendations to the legislature for necessary 123.16 adjustments to the review and approval process. 123.17 Sec. 19. Laws 2001, First Special Session chapter 9, 123.18 article 5, section 35, is amended to read: 123.19 Sec. 35. [DEVELOPMENT OF NEW NURSING FACILITY 123.20 REIMBURSEMENT SYSTEM.] 123.21 (a) The commissioner of human services shall develop and 123.22 report to the legislature by January 15,20032004, a system to 123.23 replace the current nursing facility reimbursement system 123.24 established under Minnesota Statutes, sections 256B.431, 123.25 256B.434, and 256B.435. 123.26 (b) The system must be developed in consultation with the 123.27 long-term care task force and with representatives of consumers, 123.28 providers, and labor unions. Within the limits of available 123.29 appropriations, the commissioner may employ consultants to 123.30 assist with this project. 123.31 (c) The new reimbursement system must: 123.32 (1) provide incentives to enhance quality of life and 123.33 quality of care; 123.34 (2) recognize cost differences in the care of different 123.35 types of populations, including subacute care and dementia care; 123.36 (3) establish rates that are sufficient without being 124.1 excessive; 124.2 (4) be affordable for the state and for private-pay 124.3 residents; 124.4 (5) be sensitive to changing conditions in the long-term 124.5 care environment; 124.6 (6) avoid creating access problems related to insufficient 124.7 funding; 124.8 (7) allow providers maximum flexibility in their business 124.9 operations; 124.10 (8) recognize the need for capital investment to improve 124.11 physical plants; and 124.12 (9) provide incentives for the development and use of 124.13 private rooms. 124.14 (d) Notwithstanding Minnesota Statutes, section 256B.435, 124.15 the commissioner must not implement a performance-based 124.16 contracting system for nursing facilities prior to July 1,2003124.17 2004. The commissioner shall continue to reimburse nursing 124.18 facilities under Minnesota Statutes, section 256B.431 or 124.19 256B.434, until otherwise directed by law. 124.20 (e) The commissioner of human services, in consultation 124.21 with the commissioner of health, shall conduct or contract for a 124.22 time study to determine staff time being spent on various case 124.23 mix categories; recommend adjustments to the case mix weights 124.24 based on the time study data; and determine whether current 124.25 staffing standards are adequate for providing quality care based 124.26 on professional best practice and consumer experience. If the 124.27 commissioner determines the current standards are inadequate, 124.28 the commissioner shall determine an appropriate staffing 124.29 standard for the various case mix categories and the financial 124.30 implications of phasing into this standard over the next four 124.31 years. 124.32 Sec. 20. [REPEALER.] 124.33 Minnesota Statutes 2000, section 256B.0916, subdivision 1, 124.34 is repealed. 124.35 ARTICLE 15 124.36 HEALTH CARE 125.1 Section 1. Minnesota Statutes 2000, section 62J.692, 125.2 subdivision 4, is amended to read: 125.3 Subd. 4. [DISTRIBUTION OF FUNDS.] (a) The commissioner 125.4 shall annually distribute medical education funds to all 125.5 qualifying applicants based on the following criteria: 125.6 (1) total medical education funds available for 125.7 distribution; 125.8 (2) total number of eligible trainee FTEs in each clinical 125.9 medical education program; and 125.10 (3) the statewide average cost per trainee as determined by 125.11 the application information provided in the first year of the 125.12 biennium, by type of trainee, in each clinical medical education 125.13 program. 125.14 (b) Funds distributed shall not be used to displace current 125.15 funding appropriations from federal or state sources. 125.16 (c) Funds shall be distributed to the sponsoring 125.17 institutions indicating the amount to be distributed to each of 125.18 the sponsor's clinical medical education programs based on the 125.19 criteria in this subdivision and in accordance with the 125.20 commissioner's approval letter. Each clinical medical education 125.21 program must distribute funds to the training sites as specified 125.22 in the commissioner's approval letter. Sponsoring institutions, 125.23 which are accredited through an organization recognized by the 125.24 department of education or the health care financing 125.25 administration, may contract directly with training sites to 125.26 provide clinical training. To ensure the quality of clinical 125.27 training, those accredited sponsoring institutions must: 125.28 (1) develop contracts specifying the terms, expectations, 125.29 and outcomes of the clinical training conducted at sites; and 125.30 (2) take necessary action if the contract requirements are 125.31 not met. Action may include the withholding of payments under 125.32 this section or the removal of students from the site. 125.33 (d) Any funds not distributed in accordance with the 125.34 commissioner's approval letter must be returned to the medical 125.35 education and research fund within 30 days of receiving notice 125.36 from the commissioner. The commissioner shall distribute 126.1 returned funds to the appropriate training sites in accordance 126.2 with the commissioner's approval letter. 126.3 (e) The commissioner shall distribute no later than June 30 126.4 of each year an amount equal to the funds transferred under 126.5 section 62J.694, subdivision 2a, paragraph (b), plus interest at 126.6 a rate equal to the average earnings paid under section 62J.694, 126.7 subdivision 2a, to the University of Minnesota board of regents 126.8 for the costs of the academic health center as specified under 126.9 section 62J.694, subdivision 2a, paragraph (a). 126.10 Sec. 2. Minnesota Statutes 2001 Supplement, section 126.11 62J.692, subdivision 7, is amended to read: 126.12 Subd. 7. [TRANSFERS FROM THE COMMISSIONER OF HUMAN 126.13 SERVICES.] (a) The amount transferred according to section 126.14 256B.69, subdivision 5c, paragraph (a), clause (1), shall be 126.15 distributed by the commissioner to clinical medical education 126.16 programs that meet the qualifications of subdivision 3 based on 126.17 a distribution formula that reflects a summation of two factors: 126.18 (1) an education factor, which is determined by the total 126.19 number of eligible trainee FTEs and the total statewide average 126.20 costs per trainee, by type of trainee, in each clinical medical 126.21 education program; and 126.22 (2) a public program volume factor, which is determined by 126.23 the total volume of public program revenue received by each 126.24 training site as a percentage of all public program revenue 126.25 received by all training sites in the fund pool created under 126.26 this subdivision. 126.27 In this formula, the education factor shall be weighted at 126.28 50 percent and the public program volume factor shall be 126.29 weighted at 50 percent. 126.30 Public program revenue for the distribution formula shall 126.31 include revenue from medical assistance, prepaid medical 126.32 assistance, general assistance medical care, and prepaid general 126.33 assistance medical care. Training sites that receive no public 126.34 program revenue shall be ineligible for funds available under 126.35 this paragraph. 126.36 (b) Fifty percent of the amount transferred according to 127.1 section 256B.69, subdivision 5c, paragraph (a), clause (2), 127.2 shall be distributed by the commissioner to the University of 127.3 Minnesota board of regents for the purposes described in 127.4 sections 137.38 to 137.40. Of the remaining amount transferred 127.5 according to section 256B.69, subdivision 5c, paragraph (a), 127.6 clause (2), 24 percent of the amount shall be distributed by the 127.7 commissioner to the Hennepin County Medical Center for clinical 127.8 medical education. The remaining 26 percent of the amount 127.9 transferred shall be distributed by the commissioner in 127.10 accordance with subdivision 7a. If the federal approval is not 127.11 obtained for the matching funds under section 256B.69, 127.12 subdivision 5c, paragraph (a), clause (2), 100 percent of the 127.13 amount transferred under this paragraph shall be distributed by 127.14 the commissioner to the University of Minnesota board of regents 127.15 for the purposes described in sections 137.38 to 137.40. 127.16 (c) The amount transferred according to section 256B.69, 127.17 subdivision 5c, paragraph (a), clause (3), shall be distributed 127.18 by the commissioner upon receipt to the University of Minnesota 127.19 board of regents for the purposes of clinical graduate medical 127.20 education. 127.21 Sec. 3. Minnesota Statutes 2001 Supplement, section 127.22 62J.694, subdivision 2a, is amended to read: 127.23 Subd. 2a. [EXPENDITURE; ACADEMIC HEALTH CENTER ACCOUNT.] 127.24 (a) Beginning in January 2002, up to five percent of the fair 127.25 market value of the academic health center account is annually 127.26 appropriated to the board of regents for the costs of the 127.27 academic health center. Appropriations are to be transferred 127.28 quarterly and may only be used for instructional costs of health 127.29 professional programs at the academic health center and for 127.30 interdisciplinary academic initiatives within the academic 127.31 health center, except as specified in paragraph (b). 127.32 (b) Of the amount appropriated under paragraph (a), 127.33 $4,850,000 shall be transferred annually to the commissioner of 127.34 health no later than April 15 of each year for distribution 127.35 under section 62J.692, subdivision 4. 127.36 Sec. 4. Minnesota Statutes 2001 Supplement, section 128.1 256.01, subdivision 2, is amended to read: 128.2 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 128.3 section 241.021, subdivision 2, the commissioner of human 128.4 services shall: 128.5 (1) Administer and supervise all forms of public assistance 128.6 provided for by state law and other welfare activities or 128.7 services as are vested in the commissioner. Administration and 128.8 supervision of human services activities or services includes, 128.9 but is not limited to, assuring timely and accurate distribution 128.10 of benefits, completeness of service, and quality program 128.11 management. In addition to administering and supervising human 128.12 services activities vested by law in the department, the 128.13 commissioner shall have the authority to: 128.14 (a) require county agency participation in training and 128.15 technical assistance programs to promote compliance with 128.16 statutes, rules, federal laws, regulations, and policies 128.17 governing human services; 128.18 (b) monitor, on an ongoing basis, the performance of county 128.19 agencies in the operation and administration of human services, 128.20 enforce compliance with statutes, rules, federal laws, 128.21 regulations, and policies governing welfare services and promote 128.22 excellence of administration and program operation; 128.23 (c) develop a quality control program or other monitoring 128.24 program to review county performance and accuracy of benefit 128.25 determinations; 128.26 (d) require county agencies to make an adjustment to the 128.27 public assistance benefits issued to any individual consistent 128.28 with federal law and regulation and state law and rule and to 128.29 issue or recover benefits as appropriate; 128.30 (e) delay or deny payment of all or part of the state and 128.31 federal share of benefits and administrative reimbursement 128.32 according to the procedures set forth in section 256.017; 128.33 (f) make contracts with and grants to public and private 128.34 agencies and organizations, both profit and nonprofit, and 128.35 individuals, using appropriated funds; and 128.36 (g) enter into contractual agreements with federally 129.1 recognized Indian tribes with a reservation in Minnesota to the 129.2 extent necessary for the tribe to operate a federally approved 129.3 family assistance program or any other program under the 129.4 supervision of the commissioner. The commissioner shall consult 129.5 with the affected county or counties in the contractual 129.6 agreement negotiations, if the county or counties wish to be 129.7 included, in order to avoid the duplication of county and tribal 129.8 assistance program services. The commissioner may establish 129.9 necessary accounts for the purposes of receiving and disbursing 129.10 funds as necessary for the operation of the programs. 129.11 (2) Inform county agencies, on a timely basis, of changes 129.12 in statute, rule, federal law, regulation, and policy necessary 129.13 to county agency administration of the programs. 129.14 (3) Administer and supervise all child welfare activities; 129.15 promote the enforcement of laws protecting handicapped, 129.16 dependent, neglected and delinquent children, and children born 129.17 to mothers who were not married to the children's fathers at the 129.18 times of the conception nor at the births of the children; 129.19 license and supervise child-caring and child-placing agencies 129.20 and institutions; supervise the care of children in boarding and 129.21 foster homes or in private institutions; and generally perform 129.22 all functions relating to the field of child welfare now vested 129.23 in the state board of control. 129.24 (4) Administer and supervise all noninstitutional service 129.25 to handicapped persons, including those who are visually 129.26 impaired, hearing impaired, or physically impaired or otherwise 129.27 handicapped. The commissioner may provide and contract for the 129.28 care and treatment of qualified indigent children in facilities 129.29 other than those located and available at state hospitals when 129.30 it is not feasible to provide the service in state hospitals. 129.31 (5) Assist and actively cooperate with other departments, 129.32 agencies and institutions, local, state, and federal, by 129.33 performing services in conformity with the purposes of Laws 129.34 1939, chapter 431. 129.35 (6) Act as the agent of and cooperate with the federal 129.36 government in matters of mutual concern relative to and in 130.1 conformity with the provisions of Laws 1939, chapter 431, 130.2 including the administration of any federal funds granted to the 130.3 state to aid in the performance of any functions of the 130.4 commissioner as specified in Laws 1939, chapter 431, and 130.5 including the promulgation of rules making uniformly available 130.6 medical care benefits to all recipients of public assistance, at 130.7 such times as the federal government increases its participation 130.8 in assistance expenditures for medical care to recipients of 130.9 public assistance, the cost thereof to be borne in the same 130.10 proportion as are grants of aid to said recipients. 130.11 (7) Establish and maintain any administrative units 130.12 reasonably necessary for the performance of administrative 130.13 functions common to all divisions of the department. 130.14 (8) Act as designated guardian of both the estate and the 130.15 person of all the wards of the state of Minnesota, whether by 130.16 operation of law or by an order of court, without any further 130.17 act or proceeding whatever, except as to persons committed as 130.18 mentally retarded. For children under the guardianship of the 130.19 commissioner whose interests would be best served by adoptive 130.20 placement, the commissioner may contract with a licensed 130.21 child-placing agency or a Minnesota tribal social services 130.22 agency to provide adoption services. A contract with a licensed 130.23 child-placing agency must be designed to supplement existing 130.24 county efforts and may not replace existing county programs, 130.25 unless the replacement is agreed to by the county board and the 130.26 appropriate exclusive bargaining representative or the 130.27 commissioner has evidence that child placements of the county 130.28 continue to be substantially below that of other counties. 130.29 Funds encumbered and obligated under an agreement for a specific 130.30 child shall remain available until the terms of the agreement 130.31 are fulfilled or the agreement is terminated. 130.32 (9) Act as coordinating referral and informational center 130.33 on requests for service for newly arrived immigrants coming to 130.34 Minnesota. 130.35 (10) The specific enumeration of powers and duties as 130.36 hereinabove set forth shall in no way be construed to be a 131.1 limitation upon the general transfer of powers herein contained. 131.2 (11) Establish county, regional, or statewide schedules of 131.3 maximum fees and charges which may be paid by county agencies 131.4 for medical, dental, surgical, hospital, nursing and nursing 131.5 home care and medicine and medical supplies under all programs 131.6 of medical care provided by the state and for congregate living 131.7 care under the income maintenance programs. 131.8 (12) Have the authority to conduct and administer 131.9 experimental projects to test methods and procedures of 131.10 administering assistance and services to recipients or potential 131.11 recipients of public welfare. To carry out such experimental 131.12 projects, it is further provided that the commissioner of human 131.13 services is authorized to waive the enforcement of existing 131.14 specific statutory program requirements, rules, and standards in 131.15 one or more counties. The order establishing the waiver shall 131.16 provide alternative methods and procedures of administration, 131.17 shall not be in conflict with the basic purposes, coverage, or 131.18 benefits provided by law, and in no event shall the duration of 131.19 a project exceed four years. It is further provided that no 131.20 order establishing an experimental project as authorized by the 131.21 provisions of this section shall become effective until the 131.22 following conditions have been met: 131.23 (a) The secretary of health and human services of the 131.24 United States has agreed, for the same project, to waive state 131.25 plan requirements relative to statewide uniformity. 131.26 (b) A comprehensive plan, including estimated project 131.27 costs, shall be approved by the legislative advisory commission 131.28 and filed with the commissioner of administration. 131.29 (13) According to federal requirements, establish 131.30 procedures to be followed by local welfare boards in creating 131.31 citizen advisory committees, including procedures for selection 131.32 of committee members. 131.33 (14) Allocate federal fiscal disallowances or sanctions 131.34 which are based on quality control error rates for the aid to 131.35 families with dependent children program formerly codified in 131.36 sections 256.72 to 256.87, medical assistance, or food stamp 132.1 program in the following manner: 132.2 (a) One-half of the total amount of the disallowance shall 132.3 be borne by the county boards responsible for administering the 132.4 programs. For the medical assistance and the AFDC program 132.5 formerly codified in sections 256.72 to 256.87, disallowances 132.6 shall be shared by each county board in the same proportion as 132.7 that county's expenditures for the sanctioned program are to the 132.8 total of all counties' expenditures for the AFDC program 132.9 formerly codified in sections 256.72 to 256.87, and medical 132.10 assistance programs. For the food stamp program, sanctions 132.11 shall be shared by each county board, with 50 percent of the 132.12 sanction being distributed to each county in the same proportion 132.13 as that county's administrative costs for food stamps are to the 132.14 total of all food stamp administrative costs for all counties, 132.15 and 50 percent of the sanctions being distributed to each county 132.16 in the same proportion as that county's value of food stamp 132.17 benefits issued are to the total of all benefits issued for all 132.18 counties. Each county shall pay its share of the disallowance 132.19 to the state of Minnesota. When a county fails to pay the 132.20 amount due hereunder, the commissioner may deduct the amount 132.21 from reimbursement otherwise due the county, or the attorney 132.22 general, upon the request of the commissioner, may institute 132.23 civil action to recover the amount due. 132.24 (b) Notwithstanding the provisions of paragraph (a), if the 132.25 disallowance results from knowing noncompliance by one or more 132.26 counties with a specific program instruction, and that knowing 132.27 noncompliance is a matter of official county board record, the 132.28 commissioner may require payment or recover from the county or 132.29 counties, in the manner prescribed in paragraph (a), an amount 132.30 equal to the portion of the total disallowance which resulted 132.31 from the noncompliance, and may distribute the balance of the 132.32 disallowance according to paragraph (a). 132.33 (15) Develop and implement special projects that maximize 132.34 reimbursements and result in the recovery of money to the 132.35 state. For the purpose of recovering state money, the 132.36 commissioner may enter into contracts with third parties. Any 133.1 recoveries that result from projects or contracts entered into 133.2 under this paragraph shall be deposited in the state treasury 133.3 and credited to a special account until the balance in the 133.4 account reaches $1,000,000. When the balance in the account 133.5 exceeds $1,000,000, the excess shall be transferred and credited 133.6 to the general fund. All money in the account is appropriated 133.7 to the commissioner for the purposes of this paragraph. 133.8 (16) Have the authority to make direct payments to 133.9 facilities providing shelter to women and their children 133.10 according to section 256D.05, subdivision 3. Upon the written 133.11 request of a shelter facility that has been denied payments 133.12 under section 256D.05, subdivision 3, the commissioner shall 133.13 review all relevant evidence and make a determination within 30 133.14 days of the request for review regarding issuance of direct 133.15 payments to the shelter facility. Failure to act within 30 days 133.16 shall be considered a determination not to issue direct payments. 133.17 (17) Have the authority to establish and enforce the 133.18 following county reporting requirements: 133.19 (a) The commissioner shall establish fiscal and statistical 133.20 reporting requirements necessary to account for the expenditure 133.21 of funds allocated to counties for human services programs. 133.22 When establishing financial and statistical reporting 133.23 requirements, the commissioner shall evaluate all reports, in 133.24 consultation with the counties, to determine if the reports can 133.25 be simplified or the number of reports can be reduced. 133.26 (b) The county board shall submit monthly or quarterly 133.27 reports to the department as required by the commissioner. 133.28 Monthly reports are due no later than 15 working days after the 133.29 end of the month. Quarterly reports are due no later than 30 133.30 calendar days after the end of the quarter, unless the 133.31 commissioner determines that the deadline must be shortened to 133.32 20 calendar days to avoid jeopardizing compliance with federal 133.33 deadlines or risking a loss of federal funding. Only reports 133.34 that are complete, legible, and in the required format shall be 133.35 accepted by the commissioner. 133.36 (c) If the required reports are not received by the 134.1 deadlines established in clause (b), the commissioner may delay 134.2 payments and withhold funds from the county board until the next 134.3 reporting period. When the report is needed to account for the 134.4 use of federal funds and the late report results in a reduction 134.5 in federal funding, the commissioner shall withhold from the 134.6 county boards with late reports an amount equal to the reduction 134.7 in federal funding until full federal funding is received. 134.8 (d) A county board that submits reports that are late, 134.9 illegible, incomplete, or not in the required format for two out 134.10 of three consecutive reporting periods is considered 134.11 noncompliant. When a county board is found to be noncompliant, 134.12 the commissioner shall notify the county board of the reason the 134.13 county board is considered noncompliant and request that the 134.14 county board develop a corrective action plan stating how the 134.15 county board plans to correct the problem. The corrective 134.16 action plan must be submitted to the commissioner within 45 days 134.17 after the date the county board received notice of noncompliance. 134.18 (e) The final deadline for fiscal reports or amendments to 134.19 fiscal reports is one year after the date the report was 134.20 originally due. If the commissioner does not receive a report 134.21 by the final deadline, the county board forfeits the funding 134.22 associated with the report for that reporting period and the 134.23 county board must repay any funds associated with the report 134.24 received for that reporting period. 134.25 (f) The commissioner may not delay payments, withhold 134.26 funds, or require repayment under paragraph (c) or (e) if the 134.27 county demonstrates that the commissioner failed to provide 134.28 appropriate forms, guidelines, and technical assistance to 134.29 enable the county to comply with the requirements. If the 134.30 county board disagrees with an action taken by the commissioner 134.31 under paragraph (c) or (e), the county board may appeal the 134.32 action according to sections 14.57 to 14.69. 134.33 (g) Counties subject to withholding of funds under 134.34 paragraph (c) or forfeiture or repayment of funds under 134.35 paragraph (e) shall not reduce or withhold benefits or services 134.36 to clients to cover costs incurred due to actions taken by the 135.1 commissioner under paragraph (c) or (e). 135.2 (18) Allocate federal fiscal disallowances or sanctions for 135.3 audit exceptions when federal fiscal disallowances or sanctions 135.4 are based on a statewide random sample for the foster care 135.5 program under title IV-E of the Social Security Act, United 135.6 States Code, title 42, in direct proportion to each county's 135.7 title IV-E foster care maintenance claim for that period. 135.8 (19) Be responsible for ensuring the detection, prevention, 135.9 investigation, and resolution of fraudulent activities or 135.10 behavior by applicants, recipients, and other participants in 135.11 the human services programs administered by the department. 135.12 (20) Require county agencies to identify overpayments, 135.13 establish claims, and utilize all available and cost-beneficial 135.14 methodologies to collect and recover these overpayments in the 135.15 human services programs administered by the department. 135.16 (21) Have the authority to administer a drug rebate program 135.17 for drugs purchased pursuant to the prescription drug program 135.18 established under section 256.955 after the beneficiary's 135.19 satisfaction of any deductible established in the program. The 135.20 commissioner shall require a rebate agreement from all 135.21 manufacturers of covered drugs as defined in section 256B.0625, 135.22 subdivision 13. Rebate agreements for prescription drugs 135.23 delivered on or after July 1, 2002, must include rebates for 135.24 individuals covered under the prescription drug program who are 135.25 under 65 years of age. For each drug, the amount of the rebate 135.26 shall be equal to the basic rebate as defined for purposes of 135.27 the federal rebate program in United States Code, title 42, 135.28 section 1396r-8(c)(1). This basic rebate shall be applied to 135.29 single-source and multiple-source drugs. The manufacturers must 135.30 provide full payment within 30 days of receipt of the state 135.31 invoice for the rebate within the terms and conditions used for 135.32 the federal rebate program established pursuant to section 1927 135.33 of title XIX of the Social Security Act. The manufacturers must 135.34 provide the commissioner with any information necessary to 135.35 verify the rebate determined per drug. The rebate program shall 135.36 utilize the terms and conditions used for the federal rebate 136.1 program established pursuant to section 1927 of title XIX of the 136.2 Social Security Act. 136.3 (22) Have the authority to administer the federal drug 136.4 rebate program for drugs purchased under the medical assistance 136.5 program as allowed by section 1927 of title XIX of the Social 136.6 Security Act and according to the terms and conditions of 136.7 section 1927. Rebates shall be collected for all drugs that 136.8 have been dispensed or administered in an outpatient setting and 136.9 that are from manufacturers who have signed a rebate agreement 136.10 with the United States Department of Health and Human Services. 136.11 (23) Have the authority to administer a supplemental drug 136.12 rebate program for drugs purchased under the medical assistance 136.13 program and under the prescription drug program established in 136.14 section 256.955. The commissioner may enter into supplemental 136.15 rebate contracts with pharmaceutical manufacturers and may 136.16 require prior authorization for drugs that are from 136.17 manufacturers that have not signed a supplemental rebate 136.18 contract. Prior authorization of drugs shall be subject to the 136.19 provisions of section 256B.0625, subdivision 13, paragraph (b). 136.20 (24) Operate the department's communication systems account 136.21 established in Laws 1993, First Special Session chapter 1, 136.22 article 1, section 2, subdivision 2, to manage shared 136.23 communication costs necessary for the operation of the programs 136.24 the commissioner supervises. A communications account may also 136.25 be established for each regional treatment center which operates 136.26 communications systems. Each account must be used to manage 136.27 shared communication costs necessary for the operations of the 136.28 programs the commissioner supervises. The commissioner may 136.29 distribute the costs of operating and maintaining communication 136.30 systems to participants in a manner that reflects actual usage. 136.31 Costs may include acquisition, licensing, insurance, 136.32 maintenance, repair, staff time and other costs as determined by 136.33 the commissioner. Nonprofit organizations and state, county, 136.34 and local government agencies involved in the operation of 136.35 programs the commissioner supervises may participate in the use 136.36 of the department's communications technology and share in the 137.1 cost of operation. The commissioner may accept on behalf of the 137.2 state any gift, bequest, devise or personal property of any 137.3 kind, or money tendered to the state for any lawful purpose 137.4 pertaining to the communication activities of the department. 137.5 Any money received for this purpose must be deposited in the 137.6 department's communication systems accounts. Money collected by 137.7 the commissioner for the use of communication systems must be 137.8 deposited in the state communication systems account and is 137.9 appropriated to the commissioner for purposes of this section. 137.10(24)(25) Receive any federal matching money that is made 137.11 available through the medical assistance program for the 137.12 consumer satisfaction survey. Any federal money received for 137.13 the survey is appropriated to the commissioner for this 137.14 purpose. The commissioner may expend the federal money received 137.15 for the consumer satisfaction survey in either year of the 137.16 biennium. 137.17(25)(26) Incorporate cost reimbursement claims from First 137.18 Call Minnesota and Greater Twin Cities United Way into the 137.19 federal cost reimbursement claiming processes of the department 137.20 according to federal law, rule, and regulations. Any 137.21 reimbursement received is appropriated to the commissioner and 137.22 shall be disbursed to First Call Minnesota and Greater Twin 137.23 Cities United Way according to normal department payment 137.24 schedules. 137.25(26)(27) Develop recommended standards for foster care 137.26 homes that address the components of specialized therapeutic 137.27 services to be provided by foster care homes with those services. 137.28 Sec. 5. Minnesota Statutes 2001 Supplement, section 137.29 256.969, subdivision 3a, is amended to read: 137.30 Subd. 3a. [PAYMENTS.] (a) Acute care hospital billings 137.31 under the medical assistance program must not be submitted until 137.32 the recipient is discharged. However, the commissioner shall 137.33 establish monthly interim payments for inpatient hospitals that 137.34 have individual patient lengths of stay over 30 days regardless 137.35 of diagnostic category. Except as provided in section 256.9693, 137.36 medical assistance reimbursement for treatment of mental illness 138.1 shall be reimbursed based on diagnostic classifications. 138.2 Individual hospital payments established under this section and 138.3 sections 256.9685, 256.9686, and 256.9695, in addition to third 138.4 party and recipient liability, for discharges occurring during 138.5 the rate year shall not exceed, in aggregate, the charges for 138.6 the medical assistance covered inpatient services paid for the 138.7 same period of time to the hospital. This payment limitation 138.8 shall be calculated separately for medical assistance and 138.9 general assistance medical care services. The limitation on 138.10 general assistance medical care shall be effective for 138.11 admissions occurring on or after July 1, 1991. Services that 138.12 have rates established under subdivision 11 or 12, must be 138.13 limited separately from other services. After consulting with 138.14 the affected hospitals, the commissioner may consider related 138.15 hospitals one entity and may merge the payment rates while 138.16 maintaining separate provider numbers. The operating and 138.17 property base rates per admission or per day shall be derived 138.18 from the best Medicare and claims data available when rates are 138.19 established. The commissioner shall determine the best Medicare 138.20 and claims data, taking into consideration variables of recency 138.21 of the data, audit disposition, settlement status, and the 138.22 ability to set rates in a timely manner. The commissioner shall 138.23 notify hospitals of payment rates by December 1 of the year 138.24 preceding the rate year. The rate setting data must reflect the 138.25 admissions data used to establish relative values. Base year 138.26 changes from 1981 to the base year established for the rate year 138.27 beginning January 1, 1991, and for subsequent rate years, shall 138.28 not be limited to the limits ending June 30, 1987, on the 138.29 maximum rate of increase under subdivision 1. The commissioner 138.30 may adjust base year cost, relative value, and case mix index 138.31 data to exclude the costs of services that have been 138.32 discontinued by the October 1 of the year preceding the rate 138.33 year or that are paid separately from inpatient services. 138.34 Inpatient stays that encompass portions of two or more rate 138.35 years shall have payments established based on payment rates in 138.36 effect at the time of admission unless the date of admission 139.1 preceded the rate year in effect by six months or more. In this 139.2 case, operating payment rates for services rendered during the 139.3 rate year in effect and established based on the date of 139.4 admission shall be adjusted to the rate year in effect by the 139.5 hospital cost index. 139.6 (b) For fee-for-service admissions occurring on or after 139.7 July 1, 2002, the total payment, before third-party liability 139.8 and spenddown, made to hospitals for inpatient services is 139.9 reduced by .5 percent from the current statutory rates. 139.10 Sec. 6. Minnesota Statutes 2001 Supplement, section 139.11 256B.056, subdivision 3, is amended to read: 139.12 Subd. 3. [ASSET LIMITATIONS FOR ELDERLY AND DISABLED 139.13 INDIVIDUALS.] To be eligible for medical assistance, a person 139.14 must not individually own more than $3,000 in assets, or if a 139.15 member of a household with two family members, husband and wife, 139.16 or parent and child, the household must not own more than $6,000 139.17 in assets, plus $200 for each additional legal dependent. In 139.18 addition to these maximum amounts, an eligible individual or 139.19 family may accrue interest on these amounts, but they must be 139.20 reduced to the maximum at the time of an eligibility 139.21 redetermination. The accumulation of the clothing and personal 139.22 needs allowance according to section 256B.35 must also be 139.23 reduced to the maximum at the time of the eligibility 139.24 redetermination. The value of assets that are not considered in 139.25 determining eligibility for medical assistance is the value of 139.26 those assets excluded under the supplemental security income 139.27 program for aged, blind, and disabled persons, with the 139.28 following exceptions: 139.29 (a) Household goods and personal effects are not considered. 139.30 (b) Capital and operating assets of a trade or business 139.31 that the local agency determines are necessary to the person's 139.32 ability to earn an income are not considered. 139.33 (c) Motor vehicles are excluded to the same extent excluded 139.34 by the supplemental security income program. 139.35 (d) Assets designated as burial expenses are excluded to 139.36 the same extent excluded by the supplemental security income 140.1 program. Burial expenses funded by annuity contracts or life 140.2 insurance policies must irrevocably designate the individual's 140.3 estate as contingent beneficiary to the extent proceeds are not 140.4 used for payment of selected burial expenses. 140.5 (e) Effective upon federal approval, for a person who no 140.6 longer qualifies as an employed person with a disability due to 140.7 loss of earnings, assets allowed while eligible for medical 140.8 assistance under section 256B.057, subdivision 9, are not 140.9 considered for 12 months, beginning with the first month of 140.10 ineligibility as an employed person with a disability, to the 140.11 extent that the person's total assets remain within the allowed 140.12 limits of section 256B.057, subdivision 9, paragraph (b). 140.13 Sec. 7. Minnesota Statutes 2000, section 256B.059, 140.14 subdivision 1, is amended to read: 140.15 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 140.16 section and section 256B.0595, the terms defined in this 140.17 subdivision have the meanings given them. 140.18 (b) "Community spouse" means the spouse of an 140.19 institutionalized spouse. 140.20 (c) "Spousal share" means one-half of the total value of 140.21 all assets, to the extent that either the institutionalized 140.22 spouse or the community spouse had an ownership interest at the 140.23 time of institutionalization. 140.24 (d) "Assets otherwise available to the community spouse" 140.25 means assets individually or jointly owned by the community 140.26 spouse, other than assets excluded by subdivision 5, paragraph 140.27 (c). 140.28 (e) "Community spouse asset allowance" is the value of 140.29 assets that can be transferred under subdivision 3. 140.30 (f) "Institutionalized spouse" means a person who is: 140.31 (1) in a hospital, nursing facility, or intermediate care 140.32 facility for persons with mental retardation, or receiving home 140.33 and community-based services under section 256B.0915 or 256B.49, 140.34 and is expected to remain in the facility or institution or 140.35 receive the home and community-based services for at least 30 140.36 consecutive days; and 141.1 (2) married to a person who is not in a hospital, nursing 141.2 facility, or intermediate care facility for persons with mental 141.3 retardation, and is not receiving home and community-based 141.4 services under section 256B.0915 or 256B.49. 141.5 (g) "For the sole benefit of" means no other individual or 141.6 entity can benefit in any way from the assets or income at the 141.7 time of a transfer or at any time in the future. 141.8 Sec. 8. Minnesota Statutes 2000, section 256B.059, 141.9 subdivision 3, is amended to read: 141.10 Subd. 3. [COMMUNITY SPOUSE ASSET ALLOWANCE.] An 141.11 institutionalized spouse may transfer assets to the community 141.12 spousesolelyfor the sole benefit of the community spouse. 141.13 Except for increased amounts allowable under subdivision 4, the 141.14 maximum amount of assets allowed to be transferred is the amount 141.15 which, when added to the assets otherwise available to the 141.16 community spouse, is as follows: 141.17 (1) prior to July 1, 1994, the greater of: 141.18 (i) $14,148; 141.19 (ii) the lesser of the spousal share or $70,740; or 141.20 (iii) the amount required by court order to be paid to the 141.21 community spouse; and 141.22 (2) for persons whose date of initial determination of 141.23 eligibility for medical assistance following their first 141.24 continuous period of institutionalization occurs on or after 141.25 July 1, 1994, the greater of: 141.26 (i) $20,000; 141.27 (ii) the lesser of the spousal share or $70,740; or 141.28 (iii) the amount required by court order to be paid to the 141.29 community spouse. 141.30 If the assets available to the community spouse are already 141.31 at the limit permissible under this section, or the higher limit 141.32 attributable to increases under subdivision 4, no assets may be 141.33 transferred from the institutionalized spouse to the community 141.34 spouse. The transfer must be made as soon as practicable after 141.35 the date the institutionalized spouse is determined eligible for 141.36 medical assistance, or within the amount of time needed for any 142.1 court order required for the transfer. On January 1, 1994, and 142.2 every January 1 thereafter, the limits in this subdivision shall 142.3 be adjusted by the same percentage change in the consumer price 142.4 index for all urban consumers (all items; United States city 142.5 average) between the two previous Septembers. These adjustments 142.6 shall also be applied to the limits in subdivision 5. 142.7 Sec. 9. Minnesota Statutes 2000, section 256B.059, 142.8 subdivision 5, is amended to read: 142.9 Subd. 5. [ASSET AVAILABILITY.] (a) At the time of initial 142.10 determination of eligibility for medical assistance benefits 142.11 following the first continuous period of institutionalization on 142.12 or after October 1, 1989, assets considered available to the 142.13 institutionalized spouse shall be the total value of all assets 142.14 in which either spouse has an ownership interest, reduced by the 142.15 following amount for the community spouse: 142.16 (1) prior to July 1, 1994, the greater of: 142.17 (i) $14,148; 142.18 (ii) the lesser of the spousal share or $70,740; or 142.19 (iii) the amount required by court order to be paid to the 142.20 community spouse; 142.21 (2) for persons whose date of initial determination of 142.22 eligibility for medical assistance following their first 142.23 continuous period of institutionalization occurs on or after 142.24 July 1, 1994, the greater of: 142.25 (i) $20,000; 142.26 (ii) the lesser of the spousal share or $70,740; or 142.27 (iii) the amount required by court order to be paid to the 142.28 community spouse. 142.29 The value of assets transferred for the sole benefit of the 142.30 community spouse under section 256B.0595, subdivision 4, in 142.31 combination with other assets available to the community spouse 142.32 under this section, cannot exceed the limit for the community 142.33 spouse asset allowance determined under subdivision 3 or 4. 142.34 Assets that exceed this allowance shall be considered available 142.35 to the institutionalized spouse whether or not converted to 142.36 income. If the community spouse asset allowance has been 143.1 increased under subdivision 4, then the assets considered 143.2 available to the institutionalized spouse under this subdivision 143.3 shall be further reduced by the value of additional amounts 143.4 allowed under subdivision 4. 143.5 (b) An institutionalized spouse may be found eligible for 143.6 medical assistance even though assets in excess of the allowable 143.7 amount are found to be available under paragraph (a) if the 143.8 assets are owned jointly or individually by the community 143.9 spouse, and the institutionalized spouse cannot use those assets 143.10 to pay for the cost of care without the consent of the community 143.11 spouse, and if: (i) the institutionalized spouse assigns to the 143.12 commissioner the right to support from the community spouse 143.13 under section 256B.14, subdivision 3; (ii) the institutionalized 143.14 spouse lacks the ability to execute an assignment due to a 143.15 physical or mental impairment; or (iii) the denial of 143.16 eligibility would cause an imminent threat to the 143.17 institutionalized spouse's health and well-being. 143.18 (c) After the month in which the institutionalized spouse 143.19 is determined eligible for medical assistance, during the 143.20 continuous period of institutionalization, no assets of the 143.21 community spouse are considered available to the 143.22 institutionalized spouse, unless the institutionalized spouse 143.23 has been found eligible under paragraph (b). 143.24 (d) Assets determined to be available to the 143.25 institutionalized spouse under this section must be used for the 143.26 health care or personal needs of the institutionalized spouse. 143.27 (e) For purposes of this section, assets do not include 143.28 assets excluded under the supplemental security income program. 143.29[EFFECTIVE DATE.] This section is effective July 1, 2002. 143.30 Sec. 10. Minnesota Statutes 2001 Supplement, section 143.31 256B.0595, subdivision 1, is amended to read: 143.32 Subdivision 1. [PROHIBITED TRANSFERS.] (a) For transfers 143.33 of assets made on or before August 10, 1993, if a person or the 143.34 person's spouse has given away, sold, or disposed of, for less 143.35 than fair market value, any asset or interest therein, except 143.36 assets other than the homestead that are excluded under the 144.1 supplemental security program, within 30 months before or any 144.2 time after the date of institutionalization if the person has 144.3 been determined eligible for medical assistance, or within 30 144.4 months before or any time after the date of the first approved 144.5 application for medical assistance if the person has not yet 144.6 been determined eligible for medical assistance, the person is 144.7 ineligible for long-term care services for the period of time 144.8 determined under subdivision 2. 144.9 (b) Effective for transfers made after August 10, 1993, a 144.10 person, a person's spouse, or any person, court, or 144.11 administrative body with legal authority to act in place of, on 144.12 behalf of, at the direction of, or upon the request of the 144.13 person or person's spouse, may not give away, sell, or dispose 144.14 of, for less than fair market value, any asset or interest 144.15 therein, except assets other than the homestead that are 144.16 excluded under the supplemental security income program, for the 144.17 purpose of establishing or maintaining medical assistance 144.18 eligibility. For purposes of determining eligibility for 144.19 long-term care services, any transfer of such assets within 36 144.20 months before or any time after an institutionalized person 144.21 applies for medical assistance, or 36 months before or any time 144.22 after a medical assistance recipient becomes institutionalized, 144.23 for less than fair market value may be considered. Any such 144.24 transfer is presumed to have been made for the purpose of 144.25 establishing or maintaining medical assistance eligibility and 144.26 the person is ineligible for long-term care services for the 144.27 period of time determined under subdivision 2, unless the person 144.28 furnishes convincing evidence to establish that the transaction 144.29 was exclusively for another purpose, or unless the transfer is 144.30 permitted under subdivision 3 or 4. Notwithstanding the 144.31 provisions of this paragraph, in the case of payments from a 144.32 trust or portions of a trust that are considered transfers of 144.33 assets under federal law, any transfers made within 60 months 144.34 before or any time after an institutionalized person applies for 144.35 medical assistance and within 60 months before or any time after 144.36 a medical assistance recipient becomes institutionalized, may be 145.1 considered. 145.2 (c) This section applies to transfers, for less than fair 145.3 market value, of income or assets, including assets that are 145.4 considered income in the month received, such as inheritances, 145.5 court settlements, and retroactive benefit payments or income to 145.6 which the person or the person's spouse is entitled but does not 145.7 receive due to action by the person, the person's spouse, or any 145.8 person, court, or administrative body with legal authority to 145.9 act in place of, on behalf of, at the direction of, or upon the 145.10 request of the person or the person's spouse. 145.11 (d) This section applies to payments for care or personal 145.12 services provided by a relative, unless the compensation was 145.13 stipulated in a notarized, written agreement which was in 145.14 existence when the service was performed, the care or services 145.15 directly benefited the person, and the payments made represented 145.16 reasonable compensation for the care or services provided. A 145.17 notarized written agreement is not required if payment for the 145.18 services was made within 60 days after the service was provided. 145.19 (e) This section applies to the portion of any asset or 145.20 interest that a person, a person's spouse, or any person, court, 145.21 or administrative body with legal authority to act in place of, 145.22 on behalf of, at the direction of, or upon the request of the 145.23 person or the person's spouse, transfers to any annuity that 145.24 exceeds the value of the benefit likely to be returned to the 145.25 person or spouse while alive, based on estimated life expectancy 145.26 using the life expectancy tables employed by the supplemental 145.27 security income program to determine the value of an agreement 145.28 for services for life. The commissioner may adopt rules 145.29 reducing life expectancies based on the need for long-term 145.30 care. This section applies to an annuity described in this 145.31 paragraph purchased on or after March 1, 2002, that: 145.32 (1) is not purchased from an insurance company or financial 145.33 institution that is subject to licensing or regulation by the 145.34 Minnesota department of commerce or a similar regulatory agency 145.35 of another state; 145.36 (2) does not pay out principal and interest in equal 146.1 monthly installments; or 146.2 (3) does not begin payment at the earliest possible date 146.3 after annuitization. 146.4 (f) For purposes of this section, long-term care services 146.5 include services in a nursing facility, services that are 146.6 eligible for payment according to section 256B.0625, subdivision 146.7 2, because they are provided in a swing bed, intermediate care 146.8 facility for persons with mental retardation, and home and 146.9 community-based services provided pursuant to sections 146.10 256B.0915, 256B.092, and 256B.49. For purposes of this 146.11 subdivision and subdivisions 2, 3, and 4, "institutionalized 146.12 person" includes a person who is an inpatient in a nursing 146.13 facility or in a swing bed, or intermediate care facility for 146.14 persons with mental retardation or who is receiving home and 146.15 community-based services under sections 256B.0915, 256B.092, and 146.16 256B.49. 146.17 Sec. 11. Minnesota Statutes 2001 Supplement, section 146.18 256B.0595, subdivision 2, is amended to read: 146.19 Subd. 2. [PERIOD OF INELIGIBILITY.] (a) For any 146.20 uncompensated transfer occurring on or before August 10, 1993, 146.21 the number of months of ineligibility for long-term care 146.22 services shall be the lesser of 30 months, or the uncompensated 146.23 transfer amount divided by the average medical assistance rate 146.24 for nursing facility services in the state in effect on the date 146.25 of application. The amount used to calculate the average 146.26 medical assistance payment rate shall be adjusted each July 1 to 146.27 reflect payment rates for the previous calendar year. The 146.28 period of ineligibility begins with the month in which the 146.29 assets were transferred. If the transfer was not reported to 146.30 the local agency at the time of application, and the applicant 146.31 received long-term care services during what would have been the 146.32 period of ineligibility if the transfer had been reported, a 146.33 cause of action exists against the transferee for the cost of 146.34 long-term care services provided during the period of 146.35 ineligibility, or for the uncompensated amount of the transfer, 146.36 whichever is less. The action may be brought by the state or 147.1 the local agency responsible for providing medical assistance 147.2 under chapter 256G. The uncompensated transfer amount is the 147.3 fair market value of the asset at the time it was given away, 147.4 sold, or disposed of, less the amount of compensation received. 147.5 (b) For uncompensated transfers made after August 10, 1993, 147.6 the number of months of ineligibility for long-term care 147.7 services shall be the total uncompensated value of the resources 147.8 transferred divided by the average medical assistance rate for 147.9 nursing facility services in the state in effect on the date of 147.10 application. The amount used to calculate the average medical 147.11 assistance payment rate shall be adjusted each July 1 to reflect 147.12 payment rates for the previous calendar year. The period of 147.13 ineligibility begins with the month in which the assets were 147.14 transferred except that if one or more uncompensated transfers 147.15 are made during a period of ineligibility, the total assets 147.16 transferred during the ineligibility period shall be combined 147.17 and a penalty period calculated to begin in the month the first 147.18 uncompensated transfer was made. If the transfer was not 147.19 reported to the local agency at the time of application, and the 147.20 applicant received medical assistance services during what would 147.21 have been the period of ineligibility if the transfer had been 147.22 reported, a cause of action exists against the transferee for 147.23 the cost of medical assistance services provided during the 147.24 period of ineligibility, or for the uncompensated amount of the 147.25 transfer, whichever is less. The action may be brought by the 147.26 state or the local agency responsible for providing medical 147.27 assistance under chapter 256G. The uncompensated transfer 147.28 amount is the fair market value of the asset at the time it was 147.29 given away, sold, or disposed of, less the amount of 147.30 compensation received. Effective for transfers made on or after 147.31 March 1, 1996, involving persons who apply for medical 147.32 assistance on or after April 13, 1996, no cause of action exists 147.33 for a transfer unless: 147.34 (1) the transferee knew or should have known that the 147.35 transfer was being made by a person who was a resident of a 147.36 long-term care facility or was receiving that level of care in 148.1 the community at the time of the transfer; 148.2 (2) the transferee knew or should have known that the 148.3 transfer was being made to assist the person to qualify for or 148.4 retain medical assistance eligibility; or 148.5 (3) the transferee actively solicited the transfer with 148.6 intent to assist the person to qualify for or retain eligibility 148.7 for medical assistance. 148.8 (c) If a calculation of a penalty period results in a 148.9 partial month, payments for long-term care services shall be 148.10 reduced in an amount equal to the fraction, except that in 148.11 calculating the value of uncompensated transfers, if the total 148.12 value of all uncompensated transfers made in a month not 148.13 included in an existing penalty period does not 148.14 exceed$500$200, then such transfers shall be disregarded for 148.15 each month prior to the month of application for or during 148.16 receipt of medical assistance. 148.17 Sec. 12. Minnesota Statutes 2000, section 256B.0595, 148.18 subdivision 4, is amended to read: 148.19 Subd. 4. [OTHER EXCEPTIONS TO TRANSFER PROHIBITION.] An 148.20 institutionalized person who has made, or whose spouse has made 148.21 a transfer prohibited by subdivision 1, is not ineligible for 148.22 long-term care services if one of the following conditions 148.23 applies: 148.24 (1) the assets were transferred to the individual's spouse 148.25 or to another for the sole benefit of the spouse; or 148.26 (2) the institutionalized spouse, prior to being 148.27 institutionalized, transferred assets to a spouse, provided that 148.28 the spouse to whom the assets were transferred does not then 148.29 transfer those assets to another person for less than fair 148.30 market value. (At the time when one spouse is 148.31 institutionalized, assets must be allocated between the spouses 148.32 as provided under section 256B.059); or 148.33 (3) the assets were transferred to the individual's child 148.34 who is blind or permanently and totally disabled as determined 148.35 in the supplemental security income program; or 148.36 (4) a satisfactory showing is made that the individual 149.1 intended to dispose of the assets either at fair market value or 149.2 for other valuable consideration; or 149.3 (5) the local agency determines that denial of eligibility 149.4 for long-term care services would work an undue hardship and 149.5 grants a waiver of a penalty resulting from a transfer for less 149.6 than fair market value based on an imminent threat to the 149.7 individual's health and well-being. Whenever an applicant or 149.8 recipient is denied eligibility because of a transfer for less 149.9 than fair market value, the local agency shall notify the 149.10 applicant or recipient that the applicant or recipient may 149.11 request a waiver of the penalty if the denial of eligibility 149.12 will cause undue hardship. In evaluating a waiver, the local 149.13 agency shall take into account whether the individual was the 149.14 victim of financial exploitation, whether the individual has 149.15 made reasonable efforts to recover the transferred property or 149.16 resource, and other factors relevant to a determination of 149.17 hardship. If the local agency does not approve a hardship 149.18 waiver, the local agency shall issue a written notice to the 149.19 individual stating the reasons for the denial and the process 149.20 for appealing the local agency's decision. When a waiver is 149.21 granted, a cause of action exists against the person to whom the 149.22 assets were transferred for that portion of long-term care 149.23 services granted within: 149.24 (i) 30 months of a transfer made on or before August 10, 149.25 1993; 149.26 (ii) 60 months of a transfer if the assets were transferred 149.27 after August 30, 1993, to a trust or portion of a trust that is 149.28 considered a transfer of assets under federal law; or 149.29 (iii) 36 months of a transfer if transferred in any other 149.30 manner after August 10, 1993, 149.31 or the amount of the uncompensated transfer, whichever is less, 149.32 together with the costs incurred due to the action. The action 149.33 shall be brought by the state unless the state delegates this 149.34 responsibility to the local agency responsible for providing 149.35 medical assistance under this chapter; or 149.36 (6) for transfers occurring after August 10, 1993, the 150.1 assets were transferred by the person or person's spouse: (i) 150.2 into a trust establishedsolelyfor the sole benefit of a son or 150.3 daughter of any age who is blind or disabled as defined by the 150.4 Supplemental Security Income program; or (ii) into a trust 150.5 establishedsolelyfor the sole benefit of an individual who is 150.6 under 65 years of age who is disabled as defined by the 150.7 Supplemental Security Income program. 150.8 "For the sole benefit of" has the meaning found in section 150.9 256B.059, subdivision 1. 150.10[EFFECTIVE DATE.] This section is effective July 1, 2002. 150.11 Sec. 13. Minnesota Statutes 2001 Supplement, section 150.12 256B.0625, subdivision 13, is amended to read: 150.13 Subd. 13. [DRUGS.] (a) Medical assistance covers drugs, 150.14 except for fertility drugs when specifically used to enhance 150.15 fertility, if prescribed by a licensed practitioner and 150.16 dispensed by a licensed pharmacist, by a physician enrolled in 150.17 the medical assistance program as a dispensing physician, or by 150.18 a physician or a nurse practitioner employed by or under 150.19 contract with a community health board as defined in section 150.20 145A.02, subdivision 5, for the purposes of communicable disease 150.21 control. The commissioner, after receiving recommendations from 150.22 professional medical associations and professional pharmacist 150.23 associations, shall designate a formulary committee to advise 150.24 the commissioner on the names of drugs for which payment is 150.25 made, recommend a system for reimbursing providers on a set fee 150.26 or charge basis rather than the present system, and develop 150.27 methods encouraging use of generic drugs when they are less 150.28 expensive and equally effective as trademark drugs. The 150.29 formulary committee shall consist of nine members, four of whom 150.30 shall be physicians who are not employed by the department of 150.31 human services, and a majority of whose practice is for persons 150.32 paying privately or through health insurance, three of whom 150.33 shall be pharmacists who are not employed by the department of 150.34 human services, and a majority of whose practice is for persons 150.35 paying privately or through health insurance, a consumer 150.36 representative, and a nursing home representative. Committee 151.1 members shall serve three-year terms and shall serve without 151.2 compensation. Members may be reappointed once. 151.3 (b) The commissioner shall establish a drug formulary. Its 151.4 establishment and publication shall not be subject to the 151.5 requirements of the Administrative Procedure Act, but the 151.6 formulary committee shall review and comment on the formulary 151.7 contents.The formulary committee shall review and recommend151.8drugs which require prior authorization. The formulary151.9committee may recommend drugs for prior authorization directly151.10to the commissioner, as long as opportunity for public input is151.11provided. Prior authorization may be requested by the151.12commissioner based on medical and clinical criteria before151.13certain drugs are eligible for payment. Before a drug may be151.14considered for prior authorization at the request of the151.15commissioner:151.16(1) the drug formulary committee must develop criteria to151.17be used for identifying drugs; the development of these criteria151.18is not subject to the requirements of chapter 14, but the151.19formulary committee shall provide opportunity for public input151.20in developing criteria;151.21(2) the drug formulary committee must hold a public forum151.22and receive public comment for an additional 15 days; and151.23(3) the commissioner must provide information to the151.24formulary committee on the impact that placing the drug on prior151.25authorization will have on the quality of patient care and151.26information regarding whether the drug is subject to clinical151.27abuse or misuse. Prior authorization may be required by the151.28commissioner before certain formulary drugs are eligible for151.29payment.The formulary shall not include: 151.30 (i) drugs or products for which there is no federal 151.31 funding; 151.32 (ii) over-the-counter drugs, except for antacids, 151.33 acetaminophen, family planning products, aspirin, insulin, 151.34 products for the treatment of lice, vitamins for adults with 151.35 documented vitamin deficiencies, vitamins for children under the 151.36 age of seven and pregnant or nursing women, and any other 152.1 over-the-counter drug identified by the commissioner, in 152.2 consultation with the drug formulary committee, as necessary, 152.3 appropriate, and cost-effective for the treatment of certain 152.4 specified chronic diseases, conditions or disorders, and this 152.5 determination shall not be subject to the requirements of 152.6 chapter 14; 152.7 (iii) anorectics, except that medically necessary 152.8 anorectics shall be covered for a recipient previously diagnosed 152.9 as having pickwickian syndrome and currently diagnosed as having 152.10 diabetes and being morbidly obese; 152.11 (iv) drugs for which medical value has not been 152.12 established; and 152.13 (v) drugs from manufacturers who have not signed a rebate 152.14 agreement with the Department of Health and Human Services 152.15 pursuant to section 1927 of title XIX of the Social Security Act. 152.16 The commissioner shall publish conditions for prohibiting 152.17 payment for specific drugs after considering the formulary 152.18 committee's recommendations. An honorarium of $100 per meeting 152.19 and reimbursement for mileage shall be paid to each committee 152.20 member in attendance. 152.21 (c) The basis for determining the amount of payment shall 152.22 be the lower of the actual acquisition costs of the drugs plus a 152.23 fixed dispensing fee; the maximum allowable cost set by the 152.24 federal government or by the commissioner plus the fixed 152.25 dispensing fee; or the usual and customary price charged to the 152.26 public. The pharmacy dispensing fee shall be $3.65, except that 152.27 the dispensing fee for intravenous solutions which must be 152.28 compounded by the pharmacist shall be $8 per bag, $14 per bag 152.29 for cancer chemotherapy products, and $30 per bag for total 152.30 parenteral nutritional products dispensed in one liter 152.31 quantities, or $44 per bag for total parenteral nutritional 152.32 products dispensed in quantities greater than one liter. Actual 152.33 acquisition cost includes quantity and other special discounts 152.34 except time and cash discounts. The actual acquisition cost of 152.35 a drug shall be estimated by the commissioner, at average 152.36 wholesale price minus nine percent, except that where a drug has 153.1 had its wholesale price reduced as a result of the actions of 153.2 the National Association of Medicaid Fraud Control Units, the 153.3 estimated actual acquisition cost shall be the reduced average 153.4 wholesale price, without the nine percent deduction. The 153.5 maximum allowable cost of a multisource drug may be set by the 153.6 commissioner and it shall be comparable to, but no higher than, 153.7 the maximum amount paid by other third-party payors in this 153.8 state who have maximum allowable cost programs. The 153.9 commissioner shall set maximum allowable costs for multisource 153.10 drugs that are not on the federal upper limit list as described 153.11 in United States Code, title 42, chapter 7, section 1396r-8(e), 153.12 the Social Security Act, and Code of Federal Regulations, title 153.13 42, part 447, section 447.332. Establishment of the amount of 153.14 payment for drugs shall not be subject to the requirements of 153.15 the Administrative Procedure Act. An additional dispensing fee 153.16 of $.30 may be added to the dispensing fee paid to pharmacists 153.17 for legend drug prescriptions dispensed to residents of 153.18 long-term care facilities when a unit dose blister card system, 153.19 approved by the department, is used. Under this type of 153.20 dispensing system, the pharmacist must dispense a 30-day supply 153.21 of drug. The National Drug Code (NDC) from the drug container 153.22 used to fill the blister card must be identified on the claim to 153.23 the department. The unit dose blister card containing the drug 153.24 must meet the packaging standards set forth in Minnesota Rules, 153.25 part 6800.2700, that govern the return of unused drugs to the 153.26 pharmacy for reuse. The pharmacy provider will be required to 153.27 credit the department for the actual acquisition cost of all 153.28 unused drugs that are eligible for reuse. Over-the-counter 153.29 medications must be dispensed in the manufacturer's unopened 153.30 package. The commissioner may permit the drug clozapine to be 153.31 dispensed in a quantity that is less than a 30-day supply. 153.32 Whenever a generically equivalent product is available, payment 153.33 shall be on the basis of the actual acquisition cost of the 153.34 generic drug, unless the prescriber specifically indicates 153.35 "dispense as written - brand necessary" on the prescription as 153.36 required by section 151.21, subdivision 2. 154.1 (d) For purposes of this subdivision, "multisource drugs" 154.2 means covered outpatient drugs, excluding innovator multisource 154.3 drugs for which there are two or more drug products, which: 154.4 (1) are related as therapeutically equivalent under the 154.5 Food and Drug Administration's most recent publication of 154.6 "Approved Drug Products with Therapeutic Equivalence 154.7 Evaluations"; 154.8 (2) are pharmaceutically equivalent and bioequivalent as 154.9 determined by the Food and Drug Administration; and 154.10 (3) are sold or marketed in Minnesota. 154.11 "Innovator multisource drug" means a multisource drug that was 154.12 originally marketed under an original new drug application 154.13 approved by the Food and Drug Administration. 154.14 (e) The formulary committee shall review and recommend 154.15 drugs which require prior authorization. The formulary 154.16 committee may recommend drugs for prior authorization directly 154.17 to the commissioner, as long as opportunity for public input is 154.18 provided. Prior authorization may be requested by the 154.19 commissioner based on medical and clinical criteria and on cost 154.20 before certain drugs are eligible for payment. Before a drug 154.21 may be considered for prior authorization at the request of the 154.22 commissioner: 154.23 (1) the drug formulary committee must develop criteria to 154.24 be used for identifying drugs; the development of these criteria 154.25 is not subject to the requirements of chapter 14, but the 154.26 formulary committee shall provide opportunity for public input 154.27 in developing criteria; 154.28 (2) the drug formulary committee must hold a public forum 154.29 and receive public comment for an additional 15 days; and 154.30 (3) the commissioner must provide information to the 154.31 formulary committee on the impact that placing the drug on prior 154.32 authorization will have on the quality of patient care and on 154.33 program costs, and information regarding whether the drug is 154.34 subject to clinical abuse or misuse. Prior authorization may be 154.35 required by the commissioner before certain formulary drugs are 154.36 eligible for payment. 155.1 (f) The basis for determining the amount of payment for 155.2 drugs administered in an outpatient setting shall be the lower 155.3 of the usual and customary cost submitted by the provider; the 155.4 average wholesale price minus five percent; or the maximum 155.5 allowable cost set by the federal government under United States 155.6 Code, title 42, chapter 7, section 1396r-8(e), and Code of 155.7 Federal Regulations, title 42, section 447.332, or by the 155.8 commissioner under paragraph (c). 155.9 Sec. 14. Minnesota Statutes 2000, section 256B.32, is 155.10 amended to read: 155.11 256B.32 [FACILITY FEE FOR OUTPATIENT HOSPITAL EMERGENCY 155.12 ROOM AND CLINIC VISITS.] 155.13 (a) The commissioner shall establish a facility fee payment 155.14 mechanism that will pay a facility fee to all enrolled 155.15 outpatient hospitals for each emergency room or outpatient 155.16 clinic visit provided on or after July 1, 1989. This payment 155.17 mechanism may not result in an overall increase in outpatient 155.18 payment rates. This section does not apply to federally 155.19 mandated maximum payment limits, department approved program 155.20 packages, or services billed using a nonoutpatient hospital 155.21 provider number. 155.22 (b) For fee-for-service services provided on or after July 155.23 1, 2002, the total payment, before third-party liability and 155.24 spenddown, made to hospitals for outpatient hospital facility 155.25 services is reduced by .5 percent from the current statutory 155.26 rates. 155.27 Sec. 15. Minnesota Statutes 2000, section 256B.69, 155.28 subdivision 5a, is amended to read: 155.29 Subd. 5a. [MANAGED CARE CONTRACTS.] (a) Managed care 155.30 contracts under this section and sections 256L.12 and 256D.03, 155.31 shall be entered into or renewed on a calendar year basis 155.32 beginning January 1, 1996. Managed care contracts which were in 155.33 effect on June 30, 1995, and set to renew on July 1, 1995, shall 155.34 be renewed for the period July 1, 1995 through December 31, 1995 155.35 at the same terms that were in effect on June 30, 1995. 155.36 (b) A prepaid health plan providing covered health services 156.1 for eligible persons pursuant to chapters 256B, 256D, and 256L, 156.2 is responsible for complying with the terms of its contract with 156.3 the commissioner. Requirements applicable to managed care 156.4 programs under chapters 256B, 256D, and 256L, established after 156.5 the effective date of a contract with the commissioner take 156.6 effect when the contract is next issued or renewed. 156.7 (c) Effective for services rendered on or after January 1, 156.8 2003, the commissioner shall withhold five percent of managed 156.9 care plan payments under this section for the prepaid medical 156.10 assistance and general assistance medical care programs pending 156.11 completion of performance targets. The withheld funds will be 156.12 returned no sooner than July of the following year if 156.13 performance targets in the contract are achieved. The 156.14 commissioner may exclude special demonstration projects under 156.15 subdivision 23. 156.16 Sec. 16. Minnesota Statutes 2001 Supplement, section 156.17 256B.69, subdivision 5b, is amended to read: 156.18 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 156.19 prepaid medical assistance and general assistance medical care 156.20 program contract rates set by the commissioner under subdivision 156.21 5 and effective on or after January 1,19982003, capitation 156.22 rates for nonmetropolitan counties shall on a weighted average 156.23 be no less than8887 percent of the capitation rates for 156.24 metropolitan counties, excluding Hennepin county. The 156.25 commissioner shall make a pro rata adjustment in capitation 156.26 rates paid to counties other than nonmetropolitan counties in 156.27 order to make this provision budget neutral. 156.28 (b)For prepaid medical assistance program contract rates156.29set by the commissioner under subdivision 5 and effective on or156.30after January 1, 2001, capitation rates for nonmetropolitan156.31counties shall, on a weighted average, be no less than 89156.32percent of the capitation rates for metropolitan counties,156.33excluding Hennepin county.156.34(c)This subdivision shall not affect the nongeographically 156.35 based risk adjusted rates established under section 62Q.03, 156.36 subdivision 5a. 157.1 Sec. 17. Minnesota Statutes 2001 Supplement, section 157.2 256B.69, subdivision 5c, is amended to read: 157.3 Subd. 5c. [MEDICAL EDUCATION AND RESEARCH FUND.] (a) The 157.4 commissioner of human services shall transfer each year to the 157.5 medical education and research fund established under section 157.6 62J.692, the following: 157.7 (1) an amount equal to the reduction in the prepaid medical 157.8 assistance and prepaid general assistance medical care payments 157.9 as specified in this clause. Until January 1, 2002, the county 157.10 medical assistance and general assistance medical care 157.11 capitation base rate prior to plan specific adjustments and 157.12 after the regional rate adjustments under section 256B.69, 157.13 subdivision 5b, is reduced 6.3 percent for Hennepin county, two 157.14 percent for the remaining metropolitan counties, and no 157.15 reduction for nonmetropolitan Minnesota counties; and after 157.16 January 1, 2002, the county medical assistance and general 157.17 assistance medical care capitation base rate prior to plan 157.18 specific adjustments is reduced 6.3 percent for Hennepin county, 157.19 two percent for the remaining metropolitan counties, and 1.6 157.20 percent for nonmetropolitan Minnesota counties. Nursing 157.21 facility and elderly waiver payments and demonstration project 157.22 payments operating under subdivision 23 are excluded from this 157.23 reduction. The amount calculated under this clause shall not be 157.24 adjusted for periods already paid due to subsequent changes to 157.25 the capitation payments;and157.26 (2) beginning July 1, 2001, $2,537,000 from the capitation 157.27 rates paid under this section plus any federal matching funds on 157.28 this amount; 157.29 (3) beginning July 1, 2002, an additional $12,700,000 from 157.30 the capitation rates paid under this section; and 157.31 (4) beginning July 1, 2003, an additional $4,700,000 from 157.32 the capitation rates paid under this section. 157.33 (b) This subdivision shall be effective upon approval of a 157.34 federal waiver which allows federal financial participation in 157.35 the medical education and research fund. 157.36 Sec. 18. Minnesota Statutes 2000, section 256B.69, is 158.1 amended by adding a subdivision to read: 158.2 Subd. 5f. [CAPITATION RATES.] Beginning July 1, 2002, the 158.3 capitation rates paid under this section are increased by 158.4 $12,700,000 per year. Beginning July 1, 2003, the capitation 158.5 rates paid under this section are increased by $4,700,000 per 158.6 year. 158.7 Sec. 19. Minnesota Statutes 2000, section 256B.69, is 158.8 amended by adding a subdivision to read: 158.9 Subd. 5g. [PAYMENT FOR COVERED SERVICES.] For services 158.10 rendered on or after January 1, 2003, the total payment made to 158.11 managed care plans for providing covered services under the 158.12 medical assistance and general assistance medical care programs 158.13 is reduced by .5 percent from their current statutory rates. 158.14 This provision excludes payments for nursing home services, home 158.15 and community-based waivers, and payments to demonstration 158.16 projects for persons with disabilities. 158.17 Sec. 20. Minnesota Statutes 2001 Supplement, section 158.18 256B.75, is amended to read: 158.19 256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 158.20 (a) For outpatient hospital facility fee payments for 158.21 services rendered on or after October 1, 1992, the commissioner 158.22 of human services shall pay the lower of (1) submitted charge, 158.23 or (2) 32 percent above the rate in effect on June 30, 1992, 158.24 except for those services for which there is a federal maximum 158.25 allowable payment. Effective for services rendered on or after 158.26 January 1, 2000, payment rates for nonsurgical outpatient 158.27 hospital facility fees and emergency room facility fees shall be 158.28 increased by eight percent over the rates in effect on December 158.29 31, 1999, except for those services for which there is a federal 158.30 maximum allowable payment. Services for which there is a 158.31 federal maximum allowable payment shall be paid at the lower of 158.32 (1) submitted charge, or (2) the federal maximum allowable 158.33 payment. Total aggregate payment for outpatient hospital 158.34 facility fee services shall not exceed the Medicare upper 158.35 limit. If it is determined that a provision of this section 158.36 conflicts with existing or future requirements of the United 159.1 States government with respect to federal financial 159.2 participation in medical assistance, the federal requirements 159.3 prevail. The commissioner may, in the aggregate, prospectively 159.4 reduce payment rates to avoid reduced federal financial 159.5 participation resulting from rates that are in excess of the 159.6 Medicare upper limitations. 159.7 (b) Notwithstanding paragraph (a), payment for outpatient, 159.8 emergency, and ambulatory surgery hospital facility fee services 159.9 for critical access hospitals designated under section 144.1483, 159.10 clause (11), shall be paid on a cost-based payment system that 159.11 is based on the cost-finding methods and allowable costs of the 159.12 Medicare program. 159.13 (c) Effective for services provided on or after July 1, 159.1420022003, rates that are based on the Medicare outpatient 159.15 prospective payment system shall be replaced by a budget neutral 159.16 prospective payment system that is derived using medical 159.17 assistance data. The commissioner shall provide a proposal to 159.18 the20022003 legislature to define and implement this provision. 159.19 (d) For fee-for-service services provided on or after July 159.20 1, 2002, the total payment, before third-party liability and 159.21 spenddown, made to hospitals for outpatient hospital facility 159.22 services is reduced by .5 percent from the current statutory 159.23 rate. 159.24 Sec. 21. Minnesota Statutes 2000, section 256L.07, 159.25 subdivision 1, is amended to read: 159.26 Subdivision 1. [GENERAL REQUIREMENTS.] (a) Children 159.27 enrolled in the original children's health plan as of September 159.28 30, 1992, children who enrolled in the MinnesotaCare program 159.29 after September 30, 1992, pursuant to Laws 1992, chapter 549, 159.30 article 4, section 17, and children who have family gross 159.31 incomes that are equal to or less than150175 percent of the 159.32 federal poverty guidelines are eligible without meeting the 159.33 requirements of subdivision 2, as long as they maintain 159.34 continuous coverage in the MinnesotaCare program or medical 159.35 assistance. Children who apply for MinnesotaCare on or after 159.36 the implementation date of the employer-subsidized health 160.1 coverage program as described in Laws 1998, chapter 407, article 160.2 5, section 45, who have family gross incomes that are equal to 160.3 or less than150175 percent of the federal poverty guidelines, 160.4 must meet the requirements of subdivision 2 to be eligible for 160.5 MinnesotaCare. 160.6 (b) Families enrolled in MinnesotaCare under section 160.7 256L.04, subdivision 1, whose income increases above 275 percent 160.8 of the federal poverty guidelines, are no longer eligible for 160.9 the program and shall be disenrolled by the commissioner. 160.10 Individuals enrolled in MinnesotaCare under section 256L.04, 160.11 subdivision 7, whose income increases above 175 percent of the 160.12 federal poverty guidelines are no longer eligible for the 160.13 program and shall be disenrolled by the commissioner. For 160.14 persons disenrolled under this subdivision, MinnesotaCare 160.15 coverage terminates the last day of the calendar month following 160.16 the month in which the commissioner determines that the income 160.17 of a family or individual exceeds program income limits. 160.18 (c) Notwithstanding paragraph (b), individuals and families 160.19 may remain enrolled in MinnesotaCare if ten percent of their 160.20 annual income is less than the annual premium for a policy with 160.21 a $500 deductible available through the Minnesota comprehensive 160.22 health association. Individuals and families who are no longer 160.23 eligible for MinnesotaCare under this subdivision shall be given 160.24 an 18-month notice period from the date that ineligibility is 160.25 determined before disenrollment. 160.26[EFFECTIVE DATE.] This section is effective July 1, 2003. 160.27 Sec. 22. Minnesota Statutes 2000, section 256L.07, 160.28 subdivision 3, is amended to read: 160.29 Subd. 3. [OTHER HEALTH COVERAGE.] (a) Families and 160.30 individuals enrolled in the MinnesotaCare program must have no 160.31 health coverage while enrolled or for at least four months prior 160.32 to application and renewal. Children enrolled in the original 160.33 children's health plan and children in families with income 160.34 equal to or less than150175 percent of the federal poverty 160.35 guidelines, who have other health insurance, are eligible if the 160.36 coverage: 161.1 (1) lacks two or more of the following: 161.2 (i) basic hospital insurance; 161.3 (ii) medical-surgical insurance; 161.4 (iii) prescription drug coverage; 161.5 (iv) dental coverage; or 161.6 (v) vision coverage; 161.7 (2) requires a deductible of $100 or more per person per 161.8 year; or 161.9 (3) lacks coverage because the child has exceeded the 161.10 maximum coverage for a particular diagnosis or the policy 161.11 excludes a particular diagnosis. 161.12 The commissioner may change this eligibility criterion for 161.13 sliding scale premiums in order to remain within the limits of 161.14 available appropriations. The requirement of no health coverage 161.15 does not apply to newborns. 161.16 (b) Medical assistance, general assistance medical care, 161.17 and civilian health and medical program of the uniformed 161.18 service, CHAMPUS, are not considered insurance or health 161.19 coverage for purposes of the four-month requirement described in 161.20 this subdivision. 161.21 (c) For purposes of this subdivision, Medicare Part A or B 161.22 coverage under title XVIII of the Social Security Act, United 161.23 States Code, title 42, sections 1395c to 1395w-4, is considered 161.24 health coverage. An applicant or enrollee may not refuse 161.25 Medicare coverage to establish eligibility for MinnesotaCare. 161.26 (d) Applicants who were recipients of medical assistance or 161.27 general assistance medical care within one month of application 161.28 must meet the provisions of this subdivision and subdivision 2. 161.29[EFFECTIVE DATE.] This section is effective July 1, 2003. 161.30 Sec. 23. Minnesota Statutes 2000, section 256L.12, 161.31 subdivision 9, is amended to read: 161.32 Subd. 9. [RATE SETTING.] (a) Rates will be prospective, 161.33 per capita, where possible. The commissioner may allow health 161.34 plans to arrange for inpatient hospital services on a risk or 161.35 nonrisk basis. The commissioner shall consult with an 161.36 independent actuary to determine appropriate rates. 162.1 (b) For services rendered on or after January 1, 2003, the 162.2 commissioner shall withhold .5 percent of managed care plan 162.3 payments under this section pending completion of performance 162.4 targets. The withheld funds will be returned no sooner than 162.5 July 1 and no later than July 31 of the following year if 162.6 performance targets in the contract are achieved. 162.7 Sec. 24. Minnesota Statutes 2001 Supplement, section 162.8 256L.15, subdivision 1, is amended to read: 162.9 Subdivision 1. [PREMIUM DETERMINATION.] (a) Families with 162.10 children and individuals shall pay a premium determined 162.11 according to a sliding fee based on a percentage of the family's 162.12 gross family income. 162.13 (b) Pregnant women and children under age two are exempt 162.14 from the provisions of section 256L.06, subdivision 3, paragraph 162.15 (b), clause (3), requiring disenrollment for failure to pay 162.16 premiums. For pregnant women, this exemption continues until 162.17 the first day of the month following the 60th day postpartum. 162.18 Women who remain enrolled during pregnancy or the postpartum 162.19 period, despite nonpayment of premiums, shall be disenrolled on 162.20 the first of the month following the 60th day postpartum for the 162.21 penalty period that otherwise applies under section 256L.06, 162.22 unless they begin paying premiums. 162.23(c) Effective July 1, 2002, through June 30, 2006, at their162.24option, children with gross family income at or below 217162.25percent of the federal poverty guidelines who are eligible for162.26MinnesotaCare in the first month following termination from162.27medical assistance shall not pay a premium for 12 months.162.28[EFFECTIVE DATE.] This section is effective July 1, 2002. 162.29 Sec. 25. Minnesota Statutes 2000, section 256L.15, 162.30 subdivision 3, is amended to read: 162.31 Subd. 3. [EXCEPTIONS TO SLIDING SCALE.] An annual premium 162.32 of $48 is required for all children in families with income at 162.33 or less than150175 percent of federal poverty guidelines. 162.34[EFFECTIVE DATE.] This section is effective July 1, 2003. 162.35 Sec. 26. Laws 2001, First Special Session chapter 9, 162.36 article 2, section 7, the effective date, is amended to read: 163.1[EFFECTIVE DATE.] This section is effectiveJanuary 1, 2002163.2 July 1, 2003. 163.3 Sec. 27. [REPEALER.] 163.4 Minnesota Statutes 2001 Supplement, section 256L.03, 163.5 subdivision 5a, is repealed. 163.6 ARTICLE 16 163.7 MISCELLANEOUS HEALTH 163.8 Section 1. Minnesota Statutes 2000, section 145.9266, 163.9 subdivision 3, is amended to read: 163.10 Subd. 3. [PROFESSIONAL TRAINING AND EDUCATION ABOUT FETAL 163.11 ALCOHOL SYNDROME.] (a) The commissioner of health, in 163.12 collaboration with the board of medical practice, the board of 163.13 nursing, and other professional boards and state agencies, shall 163.14 developcurricula andmaterials about fetal alcohol syndrome for 163.15 professional training of health care providers, social service 163.16 providers, educators, and judicial and corrections systems 163.17 professionals. The trainingand curriculashall increase 163.18 knowledge and develop practical skills of professionals to help 163.19 them address the needs of at-risk pregnant women and the needs 163.20 of individuals affected by fetal alcohol syndrome or fetal 163.21 alcohol effects and their families. 163.22 (b) Training for health care providers shall focus on skill 163.23 building for screening, counseling, referral, and follow-up for 163.24 women using or at risk of using alcohol while pregnant. 163.25 Training for health care professionals shall include methods for 163.26 diagnosis and evaluation of fetal alcohol syndrome and fetal 163.27 alcohol effects. Training for education, judicial, and 163.28 corrections professionals shall involve effective education 163.29 strategies, methods to identify the behaviors and learning 163.30 styles of children with alcohol-related birth defects, and 163.31 methods to identify available referral and community resources. 163.32 (c) Training and education for social service providers 163.33 shall focus on resources for assessing, referring, and treating 163.34 at-risk pregnant women, changes in the mandatory reporting and 163.35 commitment laws, and resources for affected children and their 163.36 families. 164.1 Sec. 2. Minnesota Statutes 2000, section 251.013, is 164.2 amended to read: 164.3 251.013 [AH-GWAH-CHINGCENTER, WILLMAR, AND FERGUS FALLS 164.4 REGIONAL TREATMENT CENTERS.] 164.5 Subdivision 1. [INTENTAH-GWAH-CHING.] It is the intent of 164.6 the legislature that the Ah-Gwah-Ching center continue operation 164.7 in Walker, Minnesota, as a provider of nursing care to geriatric 164.8 and other residents whose aggressive or difficult to manage 164.9 behavioral needs cannot be met in their home community. 164.10 Subd. 2. [ADMISSIONS CRITERIA.] An individual who has a 164.11 documented history of behavioral patterns that pose a 164.12 substantial risk of harm to the individual, other vulnerable 164.13 adults, staff, or visitors is eligible for placement at the 164.14 Ah-Gwah-Ching center if the individual meets all other 164.15 admissions criteria. 164.16 Subd. 3. [GERIATRIC RAPID ASSESSMENT STABILIZATION 164.17 PROGRAM.] The Ah-Gwah-Ching center shall provide information on 164.18 the geriatric rapid assessment stabilization program (GRASP) or 164.19 emergency admittance programs to nursing facilities throughout 164.20 the state and shall promote and encourage the use of these 164.21 programs by these facilities. 164.22 Subd. 4. [WILLMAR.] It is the intent of the legislature 164.23 that the Willmar regional treatment center continue operation in 164.24 Willmar as a provider of mental health and chemical dependency 164.25 treatment, and also as an operator of community-based programs 164.26 for persons with developmental disabilities. 164.27 Subd. 5. [FERGUS FALLS.] It is the intent of the 164.28 legislature to continue operation as a downsized regional 164.29 treatment center in Fergus Falls and use state employees to 164.30 operate and maintain the downsized facility. 164.31 Sec. 3. [REPEALER.] 164.32 (a) Minnesota Statutes 2000, sections 144.6905 and 145.475, 164.33 are repealed. 164.34 (b) Minnesota Statutes 2000, section 256.9731, is repealed. 164.35 (c) Minnesota Statutes 2000, sections 256K.01; 256K.015; 164.36 256K.02; 256K.03, subdivisions 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 165.1 and 12; 256K.04; 256K.05; 256K.06; 256K.08; 256K.09; and 165.2 Minnesota Statutes 2001 Supplement, sections 256K.03, 165.3 subdivision 1; and 256K.07, are repealed. 165.4 (d) Laws 1999, chapter 152, as amended by Laws 2000, 165.5 chapter 488, article 9, section 33, Laws 2001, First Special 165.6 Session chapter 9, article 3, section 72, and Laws 2001, First 165.7 Special Session chapter 9, article 13, section 18, is repealed. 165.8 (e) Laws 2001, First Special Session chapter 9, article 13, 165.9 sections 22, 25, 26, 27, and 28, are repealed. 165.10 ARTICLE 17 165.11 HEALTH AND HUMAN SERVICES APPROPRIATIONS 165.12 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 165.13 The dollar amounts shown in the columns marked 165.14 "APPROPRIATIONS" are added to or, if shown in parentheses, are 165.15 subtracted from the appropriations in Laws 2001, First Special 165.16 Session chapter 9, or other law, and are appropriated from the 165.17 general fund, or any other fund named, to the agencies and for 165.18 the purposes specified in this article, to be available for the 165.19 fiscal years indicated for each purpose. The figures "2002" and 165.20 "2003" used in this article mean that the appropriation or 165.21 appropriations listed under them are available for the fiscal 165.22 year ending June 30, 2002, or June 30, 2003, respectively. 165.23 SUMMARY BY FUND 165.24 2002 2003 TOTAL 165.25 General 165.26 Forecast 165.27 Adjustments $13,759,000 $36,283,000 $50,042,000 165.28 Nonforecast (1,386,000) (54,038,000) (55,424,000) 165.29 Health Care 165.30 Access 13,881,000 8,410,000 22,291,000 165.31 State Government 165.32 Special Revenue 75,000 -0- 75,000 165.33 Federal TANF 7,406,000 9,482,000 16,888,000 165.34 APPROPRIATIONS 165.35 Available for the Year 165.36 Ending June 30 165.37 2002 2003 165.38 Sec. 2. COMMISSIONER OF 165.39 HUMAN SERVICES 165.40 Subdivision 1. Total 166.1 Appropriation $ 41,003,000 $ 7,280,000 166.2 Summary by Fund 166.3 General 19,716,000 (10,612,000) 166.4 Health Care 166.5 Access 13,881,000 8,410,000 166.6 Federal TANF 7,406,000 9,482,000 166.7 Subd. 2. Agency Management 166.8 General -0- (8,972,000) 166.9 The amounts that may be spent from the 166.10 appropriation for each purpose are as 166.11 follows: 166.12 Management Operations 166.13 General -0- (8,972,000) 166.14 Subd. 3. Basic Health Care 166.15 Grants 166.16 General 11,992,000 6,229,000 166.17 Health Care 166.18 Access 13,881,000 8,410,000 166.19 The amounts that may be spent from this 166.20 appropriation for each purpose are as 166.21 follows: 166.22 (a) MinnesotaCare Grants 166.23 Health Care 166.24 Access 13,881,000 8,410,000 166.25 (b) MA Basic Health Care 166.26 Grants - Families and Children 166.27 General (17,319,000) (18,764,000) 166.28 [TRANSFER.] (a) Of the general fund 166.29 appropriations to the University of 166.30 Minnesota in the higher education 166.31 omnibus appropriation bill, $12,700,000 166.32 in fiscal year 2003 is to be 166.33 transferred to the commissioner of 166.34 human services for the following 166.35 purposes: (1) $6,350,000 is for the 166.36 capitation payments under Minnesota 166.37 Statutes, section 256B.69; and (2) 166.38 $6,350,000 is to be deposited in the 166.39 general fund. 166.40 (b) For fiscal years beginning on or 166.41 after July 1, 2003, $17,400,000 each 166.42 year shall be transferred to the 166.43 commissioner for the following 166.44 purposes: (1) $8,700,000 is for the 166.45 capitation payments under Minnesota 166.46 Statutes, section 256B.69; and (2) 166.47 $8,700,000 is to be deposited in the 166.48 general fund. 166.49 (c) These transfers shall not be made 166.50 until the federal government approves 166.51 the medical education payments 167.1 authorized in Minnesota Statutes, 167.2 section 62J.692, subdivision 7, 167.3 paragraph (c). Notwithstanding the 167.4 provisions of section 5, this provision 167.5 shall not expire. 167.6 [NONMETROPOLITAN COUNTY PREPAID MEDICAL 167.7 ASSISTANCE PROGRAM RATE REDUCTION.] A 167.8 demonstration provider must not reduce 167.9 payment rates to providers to reflect 167.10 the reduction effective January 1, 167.11 2003, in rates paid under Minnesota 167.12 Statutes, section 256B.69, to 167.13 nonmetropolitan counties. 167.14 (c) MA Basic Health Care 167.15 Grants - Elderly and Disabled 167.16 General 3,062,000 (15,710,000) 167.17 (d) General Assistance 167.18 Medical Care Grants 167.19 General 26,249,000 40,752,000 167.20 (e) Health Care Grants - 167.21 Other Assistance 167.22 General -0- (49,000) 167.23 [PRESCRIPTION DRUG PROGRAM FUNDING.] 167.24 (1) The commissioner may expend money 167.25 appropriated for the prescription drug 167.26 program in either fiscal year of the 167.27 2002-2003 biennium. (2) The 167.28 commissioner shall administer the 167.29 prescription drug program pursuant to 167.30 Minnesota Statutes, section 256.955, 167.31 subdivision 9, so that the costs total 167.32 not more than funds appropriated plus 167.33 the drug rebate proceeds. 167.34 [COMMISSIONER OF FINANCE TO RECOGNIZE 167.35 DRUG PROGRAM PROJECTED NEED.] For 167.36 November 2002 and February 2003 167.37 forecasts, the commissioner of finance 167.38 shall recognize in the fund balance the 167.39 prescription drug program's projected 167.40 spending for fiscal years 2002 and 167.41 2003. When establishing the base 167.42 funding level for the prescription drug 167.43 program for the biennium beginning July 167.44 1, 2003, the commissioner of finance 167.45 shall provide a base level adjustment 167.46 to reflect the program's projected 167.47 spending, as reflected in legislative 167.48 tracking documents as of the effective 167.49 date of this article. 167.50 [DENTAL ACCESS GRANTS CARRYOVER 167.51 AUTHORITY.] Any unspent portion of the 167.52 appropriation from the health care 167.53 access fund in fiscal year 2002 for 167.54 dental access grants under Minnesota 167.55 Statutes, section 256B.53, shall not 167.56 cancel but shall be allowed to carry 167.57 forward to be spent in fiscal year 2003 167.58 for these purposes. 167.59 Subd. 4. Basic Health Care 167.60 Management 168.1 General -0- (1,065,000) 168.2 The amounts that may be spent from this 168.3 appropriation for each purpose are as 168.4 follows: 168.5 (a) Health Care Policy 168.6 Administration 168.7 General -0- 400,000 168.8 (b) Health Care 168.9 Operations 168.10 General -0- (1,465,000) 168.11 Subd. 5. State-Operated 168.12 Services 168.13 General -0- (8,520,000) 168.14 Subd. 6. Continuing Care 168.15 Grants 168.16 General (8,907,000) (26,227,000) 168.17 The amounts that may be spent from this 168.18 appropriation for each purpose are as 168.19 follows: 168.20 (a) Aging Adult Service 168.21 Grants 168.22 General -0- (2,638,000) 168.23 [PLANNING AND SERVICE DEVELOPMENT.] The 168.24 planning and service development grant 168.25 from Laws 2001, First Special Session 168.26 chapter 9, article 17, section 2, 168.27 subdivision 9, is eliminated for fiscal 168.28 year 2003. Base funding for the 168.29 2004-2005 biennium shall be $550,000 168.30 each year. Notwithstanding Laws 2001, 168.31 First Special Session chapter 9, 168.32 article 17, section 2, subdivision 9, 168.33 beginning in fiscal year 2004, the 168.34 commissioner shall annually distribute 168.35 $5,000 to each county. Counties with 168.36 more than 10,000 persons over age 65 168.37 shall receive a distribution of an 168.38 additional 25 cents for each person 168.39 over age 65. The amount distributed to 168.40 each area agency on aging shall be 168.41 $2,500. 168.42 [COMMUNITY SERVICES DEVELOPMENT 168.43 GRANTS.] For fiscal year 2003, base 168.44 level funding for community services 168.45 development grants under Minnesota 168.46 Statutes, section 256.9754, is reduced 168.47 by $1,478,000. For fiscal year 2004, 168.48 base level funding for these grants is 168.49 reduced by $768,000. For fiscal year 168.50 2005, base level funding shall be 168.51 $3,000,000, and this amount shall be 168.52 the base funding level for these grants 168.53 for the biennium beginning July 1, 168.54 2005. Notwithstanding section 5, this 168.55 provision shall not expire. 169.1 (b) Medical Assistance 169.2 Long-Term Care Waivers and 169.3 Home Care Grants 169.4 General 18,471,000 12,833,000 169.5 (c) Medical Assistance 169.6 Long-Term Care Facilities 169.7 Grants 169.8 General (27,382,000) (31,922,000) 169.9 (d) Group Residential 169.10 Housing Grants 169.11 General 4,000 574,000 169.12 [FEDERAL FUNDING FOR GROUP RESIDENTIAL 169.13 HOUSING COSTS.] The commissioner shall 169.14 seek federal funding to offset costs 169.15 for group residential housing services 169.16 under Minnesota Statutes, chapter 256I. 169.17 Any federal funding received shall be 169.18 distributed to counties on a pro rata 169.19 basis according to county spending 169.20 under Minnesota Statutes, section 169.21 256B.19, subdivision 1, clause (3), for 169.22 the costs of nursing facility 169.23 placements of persons with disabilities 169.24 under the age of 65 that have exceeded 169.25 90 days. The commissioner shall report 169.26 to the legislature by January 15, 2003, 169.27 on the status of additional federal 169.28 funding for group residential housing 169.29 costs. 169.30 (e) Chemical Dependency 169.31 Entitlement Grants 169.32 General -0- (84,000) 169.33 [CONSOLIDATED CHEMICAL DEPENDENCY 169.34 TREATMENT FUND RESERVE TRANSFER.] In 169.35 fiscal year 2003, $8,544,000 of funds 169.36 available in the consolidated chemical 169.37 dependency treatment fund general 169.38 reserve account is transferred to the 169.39 general fund. 169.40 (f) Community Social Services 169.41 Block Grants 169.42 General -0- (4,990,000) 169.43 [CSSA TRADITIONAL APPROPRIATION 169.44 REDUCTION.] For fiscal year 2003, base 169.45 level funding for community social 169.46 service aids under Minnesota Statutes, 169.47 section 256E.06, subdivisions 1 and 2, 169.48 is reduced by $4,700,000. This 169.49 reduction shall become part of base 169.50 level funding for the biennium 169.51 beginning July 1, 2003. 169.52 Notwithstanding section 5, this 169.53 provision shall not expire. 169.54 [CSSA GRANTS FOR FORMER GRH 169.55 RECIPIENTS.] For fiscal year 2003, base 169.56 level funding for community social 169.57 service aids under Minnesota Statutes, 169.58 section 256E.06, subdivision 2b, is 170.1 reduced by $290,000. This reduction 170.2 shall become part of base level funding 170.3 for the biennium beginning July 1, 170.4 2003. These reductions shall be made 170.5 on a pro rata basis to each affected 170.6 county. Notwithstanding section 5, 170.7 this provision shall not expire. 170.8 Subd. 7. Continuing Care 170.9 Management 170.10 General (1,295,000) (205,000) 170.11 [DAY TRAINING TASK FORCE.] The general 170.12 fund appropriation in fiscal year 2003 170.13 in Laws 2001, First Special Session 170.14 chapter 9, article 17, section 2, 170.15 subdivision 10, for the day training 170.16 and habilitation restructuring task 170.17 force is eliminated. 170.18 Subd. 8. Economic 170.19 Support Grants 170.20 General 17,926,000 30,734,000 170.21 Federal TANF 9,656,000 11,232,000 170.22 The amounts that may be spent from the 170.23 appropriation for each purpose are as 170.24 follows: 170.25 (a) Assistance to Families 170.26 Grants 170.27 General 16,988,000 28,391,000 170.28 Federal TANF 9,656,000 11,232,000 170.29 [TANF MAINTENANCE OF EFFORT.] If the 170.30 commissioner determines that the state 170.31 will meet its federal work 170.32 participation rate for the federal 170.33 fiscal year ending that September, the 170.34 commissioner shall reduce the state 170.35 maintenance of effort expenditure for 170.36 MFIP cash and food assistance benefits 170.37 to the extent allowed under Code of 170.38 Federal Regulations, title 45, section 170.39 263.1(a)(2), in state fiscal years 2004 170.40 and 2005. 170.41 (b) Work Grants 170.42 General -0- (404,000) 170.43 (c) Economic Support 170.44 Grants - Other Assistance 170.45 General (1,000,000) (100,000) 170.46 (d) General Assistance 170.47 Grants 170.48 General 3,300,000 4,288,000 170.49 (e) Minnesota Supplemental 170.50 Aid Grants 170.51 General (1,362,000) (1,441,000) 171.1 Subd. 9. Administrative 171.2 Reimbursement and Pass-Through 171.3 TANF (2,250,000) (1,750,000) 171.4 Subd. 10. Children's 171.5 Services 171.6 General -0- (2,586,000) 171.7 Sec. 3. COMMISSIONER OF HEALTH 171.8 Subdivision 1. Total Appropriation 171.9 Reductions (7,343,000) (7,143,000) 171.10 SUMMARY BY FUND 171.11 2002 2003 171.12 General (7,343,000) (7,143,000) 171.13 Subd. 2. Family and Community 171.14 Health (1,647,000) (1,097,000) 171.15 Summary by Fund 171.16 General (1,647,000) (1,097,000) 171.17 [ONETIME GRANT REDUCTIONS.] $200,000 of 171.18 the appropriation reduction the first 171.19 year is from competitive grants to 171.20 reduce health disparities in infant 171.21 mortality rates and adult and child 171.22 immunization rates authorized in Laws 171.23 2001, First Special Session chapter 9, 171.24 article 17, section 3, subdivision 2. 171.25 $300,000 of the appropriation reduction 171.26 the first year is from competitive 171.27 grants to reduce health disparities in 171.28 breast and cervical cancer screening 171.29 rates, HIV/AIDS and sexually 171.30 transmitted infection rates, 171.31 cardiovascular disease rates, diabetes 171.32 rates, and rates of accidental injuries 171.33 and violence authorized in Laws 2001, 171.34 First Special Session chapter 9, 171.35 article 17, section 3, subdivision 2. 171.36 $150,000 of the appropriation reduction 171.37 the first year is from community-based 171.38 programs for suicide prevention 171.39 authorized in Laws 2001, First Special 171.40 Session chapter 9, article 17, section 171.41 3, subdivision 2. 171.42 [HEALTH CARE ACCESS FUND 171.43 ADMINISTRATION.] The appropriation from 171.44 the health care access fund for 171.45 administration in Laws 2001, First 171.46 Special Session chapter 9, article 17, 171.47 section 3, is reduced by $347,000 each 171.48 year of the biennium beginning July 1, 171.49 2001. 171.50 [HEALTH CARE INTERN AND CAREER 171.51 PROGRAMS.] Of the appropriation in Laws 171.52 2001, First Special Session chapter 9, 171.53 article 17, section 3, from the health 171.54 care access fund, $200,000 each year of 171.55 the biennium beginning July 1, 2001, is 172.1 for the summer health care intern 172.2 program under Minnesota Statutes, 172.3 section 144.1464, and $147,000 each 172.4 year is for the promotion of health and 172.5 long-term care careers under Minnesota 172.6 Statutes, section 144.1499. 172.7 Subd. 3. Access and Quality 172.8 Improvement (4,970,000) (5,020,000) 172.9 [HEALTH STATUS IMPROVEMENT GRANTS.] Of 172.10 this reduction, $120,000 each year is 172.11 from money for grants appropriated 172.12 under Laws 2001, First Special Session 172.13 chapter 9, article 17, section 3, 172.14 subdivision 2. 172.15 Subd. 4. Health Protection (351,000) (651,000) 172.16 [FOOD SAFETY.] Of this reduction, 172.17 $200,000 in fiscal year 2002 is from 172.18 the appropriation for a community 172.19 health education and promotion program 172.20 on food safety authorized under Laws 172.21 2001, First Special Session chapter 9, 172.22 article 17, section 3, subdivision 4. 172.23 Subd. 5. Management and Support 172.24 Services (375,000) (375,000) 172.25 Sec. 4. HEALTH-RELATED BOARDS 172.26 Subdivision 1. Total 172.27 Appropriation 75,000 -0- 172.28 The appropriations in this section are 172.29 from the state government special 172.30 revenue fund. 172.31 [NO SPENDING IN EXCESS OF REVENUES.] 172.32 The commissioner of finance shall not 172.33 permit the allotment, encumbrance, or 172.34 expenditure of money appropriated in 172.35 this section in excess of the 172.36 anticipated biennial revenues or 172.37 accumulated surplus revenues from fees 172.38 collected by the boards. Neither this 172.39 provision nor Minnesota Statutes, 172.40 section 214.06, applies to transfers 172.41 from the general contingent account. 172.42 Subd. 2. Board of Chiropractic 172.43 Examiners 75,000 -0- 172.44 [LEGAL COSTS.] Of this appropriation, 172.45 $75,000 for the fiscal year beginning 172.46 July 1, 2001, is to the board to pay 172.47 for extraordinary legal costs. This is 172.48 a onetime appropriation and shall not 172.49 become part of base-level funding for 172.50 the 2004-2005 biennium. 172.51 Sec. 5. [SUNSET OF UNCODIFIED LANGUAGE.] 172.52 All uncodified language contained in this article expires 172.53 on June 30, 2003, unless a different expiration date is explicit. 172.54 Sec. 6. [EFFECTIVE DATE.] 172.55 Except as otherwise provided in this article, this article 173.1 is effective the day following final enactment." 173.2 Delete the title and insert: 173.3 "A bill for an act 173.4 relating to the financing of state government; 173.5 changing appropriations to reflect forecast changes; 173.6 reducing appropriations for the fiscal years ending 173.7 June 30, 2002 and 2003; canceling balances and 173.8 appropriations and transferring balances to the 173.9 general fund in order to avert a deficit; eliminating 173.10 certain adjustments for inflation in future fiscal 173.11 years; providing for family and early childhood 173.12 education appropriation adjustments, kindergarten 173.13 through grade 12 appropriation adjustments, 173.14 kindergarten through grade 12 forecast adjustments, 173.15 higher education, corrections, public safety and 173.16 transportation and other agency appropriations, 173.17 environment and natural resources, agricultural and 173.18 rural development, state government appropriations, 173.19 courts, economic development, cancellations, 173.20 transfers, and adjustments, continuing care and 173.21 long-term care, health care, miscellaneous health, 173.22 health and human services appropriations; changing 173.23 certain fees; appropriating money; amending Minnesota 173.24 Statutes 2000, sections 13.871, subdivision 5; 173.25 15.0591, subdivision 2; 16A.103, subdivisions 1a, 1b; 173.26 16A.152, subdivision 1; 16A.40; 41A.09, subdivision 173.27 3a; 62J.692, subdivision 4; 82.34, subdivision 3; 173.28 85A.02, subdivision 17; 115A.554; 120A.34; 120B.13, 173.29 subdivision 3; 124D.385, subdivision 2; 124D.86, 173.30 subdivisions 4, 5; 135A.15, subdivision 1; 136F.68; 173.31 144.395, subdivision 1; 145.9266, subdivision 3; 173.32 168A.40, subdivision 4; 251.013; 252.282, subdivisions 173.33 1, 3, 4, 5; 256.9657, subdivision 1; 256.9753, 173.34 subdivision 3; 256B.059, subdivisions 1, 3, 5; 173.35 256B.0595, subdivision 4; 256B.0916, subdivision 5; 173.36 256B.19, subdivisions 1, 1d; 256B.32; 256B.431, 173.37 subdivision 23, by adding a subdivision; 256B.5013, 173.38 subdivisions 2, 4, 5, 6; 256B.69, subdivision 5a, by 173.39 adding subdivisions; 256L.07, subdivisions 1, 3; 173.40 256L.12, subdivision 9; 256L.15, subdivision 3; 173.41 260C.163, subdivision 3; 299F.011, by adding a 173.42 subdivision; 299L.02, subdivision 7; 299L.07, 173.43 subdivision 5; 357.021, subdivision 2; 357.022; 173.44 490.123, by adding a subdivision; 611.17; 611A.371, 173.45 subdivision 1; 611A.373; 611A.72; 611A.73, subdivision 173.46 2, by adding a subdivision; 611A.74, subdivisions 2, 173.47 3, 4, 5, 6; Minnesota Statutes 2001 Supplement, 173.48 sections 16A.152, subdivisions 1a, 2; 16A.88, 173.49 subdivision 1; 16B.65, subdivisions 1, 5a; 17.117, 173.50 subdivision 5a; 62J.692, subdivision 7; 62J.694, 173.51 subdivision 2a; 93.2235, subdivision 1; 115A.545, 173.52 subdivisions 1, 2; 123B.54; 126C.05, subdivision 15; 173.53 136A.121, subdivision 6; 136A.124, subdivisions 2, 4; 173.54 136G.03, subdivision 25; 136G.07, subdivision 1; 173.55 136G.09, subdivision 8; 171.29, subdivision 2; 173.56 242.192; 244.054, subdivision 2; 256.01, subdivision 173.57 2; 256.022, subdivision 1; 256.969, subdivision 3a; 173.58 256B.056, subdivision 3; 256B.0595, subdivisions 1, 2; 173.59 256B.0625, subdivision 13; 256B.437, subdivision 2; 173.60 256B.439, subdivisions 1, 4; 256B.5013, subdivision 1; 173.61 256B.69, subdivisions 5b, 5c; 256B.75; 256L.15, 173.62 subdivision 1; 260B.007, subdivision 16; 260C.141, 173.63 subdivision 3; 299A.75, subdivision 1; 611A.372; 173.64 611A.74, subdivision 1; Laws 1997, First Special 173.65 Session chapter 4, article 3, section 25, subdivision 173.66 7; Laws 1998, chapter 404, section 23, subdivision 6; 173.67 Laws 2000; chapter 489, article 1, section 36; Laws 173.68 2001, First Special Session chapter 3, article 1, 174.1 section 17, subdivisions 3, 7, 8, 9, 11; Laws 2001, 174.2 First Special Session chapter 3, article 1, section 174.3 18; Laws 2001, First Special Session chapter 3, 174.4 article 1, section 19, subdivisions 3, 5; Laws 2001, 174.5 First Special Session chapter 3, article 2, section 174.6 15, subdivision 3; Laws 2001, First Special Session 174.7 chapter 3, article 3, section 9, subdivision 6; Laws 174.8 2001, First Special Session chapter 3, article 4, 174.9 section 5, subdivisions 2, 4; Laws 2001, First Special 174.10 Session chapter 4, article 1, section 4, subdivision 174.11 6; Laws 2001, First Special Session chapter 4, article 174.12 3, section 1; Laws 2001, First Special Session chapter 174.13 4, article 3, section 2, subdivision 1; Laws 2001, 174.14 First Special Session chapter 4, article 3, section 3; 174.15 Laws 2001, First Special Session chapter 5, article 2, 174.16 section 29, subdivision 2; Laws 2001, First Special 174.17 Session chapter 6, article 1, section 54, subdivisions 174.18 2, 4, 5, 6, 7; Laws 2001, First Special Session 174.19 chapter 6, article 2, section 77, subdivisions 2, 4, 174.20 5, 7, 8, 11, 15, 18, 23, 25, as amended, 29; Laws 174.21 2001, First Special Session chapter 6, article 3, 174.22 section 21, subdivisions 2, 3, 4, 5, 7, 11; Laws 2001, 174.23 First Special Session chapter 6, article 4, section 174.24 27, subdivisions 2, 3, 5, 6; Laws 2001, First Special 174.25 Session chapter 6, article 5, section 13, subdivisions 174.26 2, 5; Laws 2001, First Special Session chapter 6, 174.27 article 7, section 13, as amended; Laws 2001, First 174.28 Special Session chapter 6, article 7, section 14; Laws 174.29 2001, First Special Session chapter 8, article 4, 174.30 section 10, subdivisions 1, 7; Laws 2001, First 174.31 Special Session chapter 8, article 4, section 11; Laws 174.32 2001, First Special Session chapter 8, article 11, 174.33 section 14; Laws 2001, First Special Session chapter 174.34 9, article 2, section 7, the effective date; Laws 174.35 2001, First Special Session chapter 9, article 5, 174.36 section 35; proposing coding for new law in Minnesota 174.37 Statutes, chapter 126C; repealing Minnesota Statutes 174.38 2000, sections 13.202, subdivision 8; 41B.047, 174.39 subdivision 2; 103B.3369, subdivisions 7, 8; 103B.351; 174.40 103F.461; 103G.2373; 144.6905; 145.475; 256.9731; 174.41 256B.0916, subdivision 1; 256K.01; 256K.015; 256K.02; 174.42 256K.03, subdivisions 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 174.43 12; 256K.04; 256K.05; 256K.06; 256K.08; 256K.09; 174.44 465.795; 465.796; 465.797; 465.7971; 465.798; 465.799; 174.45 465.801; 465.802; 465.803; 465.83; 465.87; 465.88; 174.46 490.123, subdivision 1d; 611A.37, subdivisions 6, 7; 174.47 611A.375; 611A.74, subdivision 1a; Minnesota Statutes 174.48 2001 Supplement, sections 4.50; 16A.1523; 256K.03, 174.49 subdivision 1; 256K.07; 256L.03, subdivision 5a; 174.50 469.1799, subdivisions 1, 3; Laws 1997, chapter 183, 174.51 article 2, section 19; Laws 1999, chapter 152, as 174.52 amended; Laws 2000, chapter 447, section 25; Laws 174.53 2001, First Special Session chapter 3, article 3, 174.54 section 8; Laws 2001, First Special Session chapter 6, 174.55 article 1, section 31; Laws 2001, First Special 174.56 Session chapter 9, article 13, sections 22, 25, 26, 174.57 27, 28; Minnesota Rules, parts 8405.0100; 8405.0110; 174.58 8405.0120; 8405.0130; 8405.0140; 8405.0150; 8405.0160; 174.59 8405.0170; 8405.0180; 8405.0190; 8405.0200; 8405.0210; 174.60 8405.0220; 8405.0230." 175.1 We request adoption of this report and repassage of the 175.2 bill. 175.5 House Conferees: 175.8 ......................... ......................... 175.9 Rich Stanek Kevin Goodno 175.12 ......................... ......................... 175.13 Alice Seagren Philip Krinkie 175.16 ......................... 175.17 Thomas Bakk 175.22 Senate Conferees: 175.25 ......................... ......................... 175.26 Douglas J. Johnson John C. Hottinger 175.29 ......................... ......................... 175.30 Lawrence J. Pogemiller Linda Berglin 175.33 ......................... 175.34 Dennis R. Frederickson