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 needed 
  3.35  for MFIP social services child care must be used for child care 
  3.36  assistance 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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
  6.16     Any balance in the first year does not cancel but is 
  6.17  available 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     <h>[EFFECTIVE DATE.]</h> 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
  6.30     Any balance in the first year does not cancel but is 
  6.31  available 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 the 
  9.3   circumstances under which the fee is subsidized, in whole or in 
  9.4   part.  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 to 33 37 percent for fiscal year 2000 and 2003, 22 percent 
  9.10  for fiscal year 2001 2004, 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  equals 67 63 percent for fiscal year 2000 and 2003, 78 percent 
  9.17  for fiscal year 2001 2004, 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 for an initial period of ten years, which may be 
 11.34  renewed or extended for additional periods of up to ten years 
 11.35  each any period of time specified in the agreement. 
 11.36     <h>[EFFECTIVE DATE.]</h> 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 
 12.11  the appropriation is exhausted February 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     <h>[EFFECTIVE DATE.]</h> 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, 
 13.23  subdivision 3, in each year to the extent of available 
 13.24  appropriations, 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 this 
 13.30  amount is not adequate, the commissioner may pay less than the 
 13.31  full 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     <h>[EFFECTIVE DATE.]</h> 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       .....     2003 
 14.34     $250,000 each year is for ISEEK. 
 14.35     $450,000 each year is 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      $75,000 each year is 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     <h>[EFFECTIVE DATE.]</h> 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     .....     2003 
 16.7      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 thereafter 
 16.29  are 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 $7,851,000 
 18.21  $7,616,000 for 2003.  
 18.22     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 $2,047,000 
 21.25  $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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 fees 
 28.27  charged by the institution; or 
 28.28     (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) or 
 28.43  (2), with no allowance for living and miscellaneous expenses. 
 28.44     <h>[EFFECTIVE DATE.]</h> 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 the office commissioner of 
 29.22  children, families, and learning.  The office commissioner 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     <h>[EFFECTIVE DATE.]</h> 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   plan and 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     <h>[EFFECTIVE DATE.]</h> 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 cost 
 31.1   of one year of qualified higher education expenses at the most 
 31.2   expensive 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 higher 
 31.5   education expenses for the academic year prior to January 1 of 
 31.6   each year must be used in calculating the maximum account 
 31.7   balance 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     <h>[EFFECTIVE DATE.]</h> 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 corrections 
 34.31  shall be responsible for 35 percent of the per diem cost of 
 34.32  confinement 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, and the 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; and 
 41.11     (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 VICTIM OMBUDSMAN OVERSIGHT ACT.] Data 
 46.22  maintained by the crime victim ombudsman commissioner 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 the office of the crime 
 47.7   victim ombudsman commissioner 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-five Sixty-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 account 
 48.21  to be known as the alcohol-impaired driver education account.  
 48.22  Money 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, 
 48.25  families, and learning for programs for elementary and secondary 
 48.26  school students; and 
 48.27     (B) the remainder credited to the commissioner of public 
 48.28  safety to be spent as grants through March 31, 2002, to the 
 48.29  Minnesota highway safety center at St. Cloud State University 
 48.30  for programs relating to alcohol and highway safety education in 
 48.31  elementary and secondary schools and then from April 1, 2002, 
 48.32  through June 30, 2002, for programs described in item (ii); and 
 48.33     (ii) after June 30, 2002, to the commissioner of public 
 48.34  safety for grants for programs relating to alcohol and highway 
 48.35  safety 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 the full amount 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 the per diem 
 53.6   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 diem Grant 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 of per diem grant payments 
 53.18  to designated shelter facilities; 
 53.19     (2) collect data on shelter facilities; 
 53.20     (3) conduct an annual evaluation of the per diem grant 
 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 the per diem grant 
 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.  [PAYMENT REQUESTS.] 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  on the number of persons housed their 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 from per diem grant 
 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 the annual reserve grant 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  calculate annually the reserve the 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 all reserve grant amounts shall not exceed 
 54.16  the legislative per diem appropriation.  
 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  Victim Ombudsman Oversight 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 the crime victim ombudsman commissioner 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.  [CREATION AUTHORITY UNDER THIS ACT.] The 
 55.6   office of crime victim ombudsman for Minnesota is created.  The 
 55.7   ombudsman shall be appointed by the governor, shall serve in the 
 55.8   unclassified service at the pleasure of the governor, and shall 
 55.9   be selected without regard to political affiliation.  No person 
 55.10  may serve as ombudsman while holding any other public office.  
 55.11  The ombudsman is directly accountable to the governor and must 
 55.12  periodically report to the commissioner of public safety on the 
 55.13  operations and activities of the office.  The ombudsman 
 55.14  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.] The crime victim ombudsman commissioner 
 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 
 55.28  ombudsman commissioner shall act as a liaison, when the 
 55.29  ombudsman commissioner deems necessary, between agencies, either 
 55.30  in the criminal justice system or in victim assistance programs, 
 55.31  and victims and witnesses.  The ombudsman commissioner 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.  The ombudsman commissioner must 
 55.35  be made available through the use of a toll free telephone 
 55.36  number and shall answer questions concerning the criminal 
 56.1   justice system and victim services put to the ombudsman 
 56.2   commissioner by victims and witnesses in accordance with 
 56.3   the ombudsman's commissioner's knowledge of the facts or law, 
 56.4   unless the information is otherwise restricted.  The ombudsman 
 56.5   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 the ombudsman 
 56.9   commissioner.  
 56.10     The ombudsman's commissioner'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.] The crime victim ombudsman commissioner 
 56.19  has those powers necessary to carry out the duties set out in 
 56.20  subdivision 2, including:  
 56.21     (a) The ombudsman commissioner 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) The ombudsman commissioner may request and shall be 
 56.26  given access to information and assistance the ombudsman 
 56.27  commissioner considers necessary for the discharge of 
 56.28  responsibilities.  The ombudsman commissioner 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.  The ombudsman commissioner 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 the ombudsman 
 56.35  commissioner retains its data classification under chapter 13 
 56.36  while in the ombudsman's commissioner's possession.  Juvenile 
 57.1   records obtained under this subdivision may not be released to 
 57.2   any person. 
 57.3      (c) The ombudsman commissioner 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 of ombudsman 
 57.8   commissioner conclusions, recommendations, and proposals.  
 57.9      (d) After completing investigation of a complaint, the 
 57.10  ombudsman commissioner 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, the ombudsman's 
 57.15  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, the ombudsman commissioner 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 
 57.24  ombudsman commissioner nor any member of the ombudsman's 
 57.25  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  the ombudsman commissioner deems pertinent, the ombudsman 
 57.35  commissioner may recommend action to the appropriate authority.  
 57.36     (b) If the ombudsman commissioner 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 
 58.3   ombudsman commissioner about the action taken or the reasons for 
 58.4   not complying with the recommendation.  
 58.5      (c) The ombudsman commissioner 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, the ombudsman commissioner shall include 
 58.10  any statement the administrative agency may have made to 
 58.11  the ombudsman commissioner by way of explaining its past 
 58.12  difficulties or its present rejection of the ombudsman's 
 58.13  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  the ombudsman commissioner may make from time to time, the 
 58.18  ombudsman commissioner shall biennially report to the 
 58.19  legislature and to the governor concerning the exercise 
 58.20  of ombudsman the 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  Appropriation                         88,001,000     84,299,000 
 58.28                                        87,851,000     84,149,000 
 58.29                Summary by Fund
 58.30                          2002          2003
 58.31  General             84,919,000    81,195,000 
 58.32                      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  General               6,942,000     6,136,000
 59.22                        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 TRAINING                 4,692,000      4,724,000
 62.56                                         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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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 facility located 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 under this 
 72.4   section paragraph (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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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, 20 19 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) 20 19 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     <h>[EFFECTIVE DATE.]</h> 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 services 
 85.16  advisory 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 the general special 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 
 86.33  general special 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 Minnesota 
 87.29  office 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   the office of citizenship and volunteer services commissioner 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 the youth activities 
 89.26  account, which is hereby created in the 
 89.27  special revenue fund.  Money in the 
 89.28  youth activities account is available 
 89.29  for expenditure as appropriated by 
 89.30  law general 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 months 
101.19  after issuance, $50 if the license expires less than 12 months 
101.20  after 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 be used 
101.34  for purposes of the economic security 
101.35  contingent account.  It is the intent 
101.36  of the legislature that in future 
101.37  years, $2,000,000 each year will be 
101.38  transferred in this manner transferred 
101.39  upon deposit to the general fund. 
101.40     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 
102.4   2002 2003. 
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     <h>[EFFECTIVE DATE.]</h> This subdivision is effective July 1, 
102.14  2002 2003. 
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     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 
102.32  2002 2003. 
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 of inflation and variables 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 determining the rate of 
103.21  inflation, 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   account as provided by law, up to $350,000,000. 
104.7      (b) The commissioner of finance shall transfer the amount 
104.8   necessary to bring the total amount of the cash flow account to 
104.9   $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 account of 
104.17  $653,000,000 is 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 equals the 
104.29  amount 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 address 
107.35  access; or 
107.36     (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 increase and recommendations regarding rate 
108.14  adjustments exceeding 90 days shall be submitted to the 
108.15  statewide advisory committee for review and determination, along 
108.16  with the assessment, plan, and corresponding budget 
108.17  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   requests for to the commissioner for approval of facility rate 
109.9   adjustments to address closures, downsizing, relocation, or 
109.10  access needs within the county and shall forward recommendations 
109.11  and documentation to the commissioner downsizings, 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; and 
109.15     (2) cost projections for the proposed service are within 
109.16  fiscal limitations the 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 and 
109.20  submit recommendations to the commissioner within 60 days 
109.21  following the published deadline for submission under 
109.22  subdivision 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  Register twice each calendar year no 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 RESOURCES AND APPROVAL OF INCREASED CAPACITY FOR 
111.26  THE HOME AND COMMUNITY-BASED WAIVER FOR PERSONS WITH MENTAL 
111.27  RETARDATION OR RELATED CONDITIONS.] In order to maximize the 
111.28  number 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 utilized and approve 
111.31  increased 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 
112.5   and approval of increased capacity shall be given to counties 
112.6   with sufficient capacity and counties 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      <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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 
116.25  annually biennially, beginning December 31, 2001, and each 
116.26  December 31 every 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  legislature by 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 subdivision and reported to the commissioners by 
117.29  December 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, 2003 2004, 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, 2002 2003, 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     <h>[EFFECTIVE DATE.]</h> 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 the resource needs of a current ICF/MR 
119.4   recipient or recipients, or a person is admitted to a facility 
119.5   who requires additional resources, the county of financial 
119.6   responsibility may recommend approval of a 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 that 
119.13  may be considered under the variable rate adjustment include 
119.14  increased direct staff hours, other specialized services, and 
119.15  equipment.  The guidelines in paragraphs (a) to (d) apply for 
119.16  the 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 section 
119.27  256B.092, subdivisions 7 and 8, prior to implementation of the 
119.28  new payment system, and annually thereafter, and when a variable 
119.29  rate is being requested due to changes in the needs of the 
119.30  recipient.  Screening data shall be used to monitor changes as 
119.31  follows: 
119.32     (1) the functional ability of a recipient to care for and 
119.33  maintain the recipient's own basic needs; 
119.34     (2) the intensity of any aggressive or destructive 
119.35  behavior; and 
119.36     (3) any history of obstructive behavior in combination with 
120.1   a diagnosis of psychosis or neurosis. 
120.2      (b) A variable rate may be recommended by the county of 
120.3   financial responsibility for increased service needs such as in 
120.4   the following situations: 
120.5      (1) a need for resources due to a change in resident day 
120.6   program participation because the resident an 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; and 
120.15     (2) a need for additional resources for intensive 
120.16  short-term programming which is necessary prior to a recipient's 
120.17  an individual's discharge to a less restrictive, more integrated 
120.18  setting.; 
120.19     Recommendations for a variable rate shall be used to link 
120.20  resource needs to funding.  The variable rate must be applied to 
120.21  expenses related to increased direct staff hours, other 
120.22  specialized services, and equipment.  
120.23     (c) A recipient must be screened by the county of financial 
120.24  responsibility using the developmental disabilities screening 
120.25  document completed immediately prior to approval of a variable 
120.26  rate by the county.  A comparison of the updated screening and 
120.27  the previous screening must demonstrate an increase in resource 
120.28  needs. 
120.29     (d) Rate adjustments projected to exceed the authorized 
120.30  funding level associated with the person's profile must be 
120.31  submitted 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 
121.1   indicate justify the purpose, the projected length of time that, 
121.2   and the additional funding may be needed for the facility to 
121.3   meet the needs of the individual.  The need to continue an 
121.4   individual variable rate must be reviewed at the end of the 
121.5   anticipated duration of need but at least annually through the 
121.6   completion 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 from 
121.22  a and 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 percent 
122.3   occupancy on September 30, 2000, or if a recipient is discharged 
122.4   from a facility, Beginning July 1, 2002, the commissioner shall 
122.5   adjust the total payment rate for up to 90 75 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 payment 
122.10  adjustments exceeding 90 days to address a demonstrated need for 
122.11  access must be submitted to the statewide advisory committee 
122.12  with a local system needs assessment, plan, and budget for 
122.13  review 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 maintain and submit monthly occupancy bed use 
122.18  data in the form of resident days and variable rate 
122.19  information.  When a variable rate is reported by a facility, 
122.20  monthly bed use data shall be used to track the amount and time 
122.21  span of the rate adjustment.  The total payments made to a 
122.22  facility may be adjusted based on concurrent changes in the 
122.23  needs of recipients that are covered by a variable rate 
122.24  adjustment.  Any adjustment for multiple resident changes shall 
122.25  not result in a decrease to the facility base rate by 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 REVIEW COMMISSIONER'S 
122.31  RESPONSIBILITIES.] During the initial contracting period, The 
122.32  commissioner shall review the process of variable rate 
122.33  adjustments to determine if the variable rate process is being 
122.34  effectively implemented and whether the variable rate process 
122.35  minimizes unnecessary detailed recordkeeping and meets recipient 
122.36  needs.: 
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, 2003 2004, 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, 2003 
124.17  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  spouse solely for 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     <h>[EFFECTIVE DATE.]</h> 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 established solely for 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   established solely for 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     <h>[EFFECTIVE DATE.]</h> 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 recommend 
151.8   drugs which require prior authorization.  The formulary 
151.9   committee may recommend drugs for prior authorization directly 
151.10  to the commissioner, as long as opportunity for public input is 
151.11  provided.  Prior authorization may be requested by the 
151.12  commissioner based on medical and clinical criteria before 
151.13  certain drugs are eligible for payment.  Before a drug may be 
151.14  considered for prior authorization at the request of the 
151.15  commissioner:  
151.16     (1) the drug formulary committee must develop criteria to 
151.17  be used for identifying drugs; the development of these criteria 
151.18  is not subject to the requirements of chapter 14, but the 
151.19  formulary committee shall provide opportunity for public input 
151.20  in developing criteria; 
151.21     (2) the drug formulary committee must hold a public forum 
151.22  and receive public comment for an additional 15 days; and 
151.23     (3) the commissioner must provide information to the 
151.24  formulary committee on the impact that placing the drug on prior 
151.25  authorization will have on the quality of patient care and 
151.26  information regarding whether the drug is subject to clinical 
151.27  abuse or misuse.  Prior authorization may be required by the 
151.28  commissioner before certain formulary drugs are eligible for 
151.29  payment.  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, 1998 2003, capitation 
156.22  rates for nonmetropolitan counties shall on a weighted average 
156.23  be no less than 88 87 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 rates 
156.29  set by the commissioner under subdivision 5 and effective on or 
156.30  after January 1, 2001, capitation rates for nonmetropolitan 
156.31  counties shall, on a weighted average, be no less than 89 
156.32  percent of the capitation rates for metropolitan counties, 
156.33  excluding 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; and 
157.26     (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, 
159.14  2002 2003, 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  the 2002 2003 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 than 150 175 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 than 150 175 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     <h>[EFFECTIVE DATE.]</h> 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 than 150 175 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     <h>[EFFECTIVE DATE.]</h> 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 their 
162.24  option, children with gross family income at or below 217 
162.25  percent of the federal poverty guidelines who are eligible for 
162.26  MinnesotaCare in the first month following termination from 
162.27  medical assistance shall not pay a premium for 12 months. 
162.28     <h>[EFFECTIVE DATE.]</h> 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 than 150 175 percent of federal poverty guidelines. 
162.34     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> This section is effective January 1, 2002 
163.2   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  develop curricula and materials 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 training and curricula shall 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-CHING CENTER, WILLMAR, AND FERGUS FALLS 
164.4   REGIONAL TREATMENT CENTERS.] 
164.5      Subdivision 1.  [INTENT AH-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