HF 842

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; amending provisions relating to child care; children
and family; licensing; health care; continuing care; mental health; health
insurance; the Department of Health; appropriating money; amending Minnesota
Statutes 2006, sections 13.46, subdivision 2; 16A.724, subdivision 2; 62E.141;
62J.692, subdivisions 1, 4, 7a, 8, 10; 62L.12, subdivision 2; 103I.101, subdivision
6; 103I.208, subdivisions 1, 2; 103I.235, subdivision 1; 119B.05, subdivision
1; 119B.09, subdivisions 1, 7, by adding a subdivision; 119B.13, subdivision
6; 144.123; 144.125; 144.3345; 144D.03, subdivision 1; 148.5194, by adding
a subdivision; 148.6445, subdivisions 1, 2; 148C.11, subdivision 1; 149A.52,
subdivision 3; 149A.97, subdivision 7; 153A.14, subdivision 4a; 153A.17;
245.465, by adding a subdivision; 245.4874; 245A.02, subdivisions 2, 10, 14;
245A.035; 245A.10, subdivisions 3, 4, 5; 245A.16, subdivisions 1, 3; 245B.01;
245B.02; 245B.03, subdivisions 1, 2; 245B.05, subdivision 2; 245B.055,
subdivision 1; 245B.06, subdivisions 7, 9, 10, by adding a subdivision; 245B.07,
subdivisions 4, 8; 245C.02, by adding a subdivision; 245C.04, subdivision 1;
245C.05, subdivisions 1, 4, 5, 7, by adding a subdivision; 245C.08, subdivisions
1, 2; 245C.10, by adding a subdivision; 245C.11, subdivisions 1, 2; 245C.12;
245C.16, subdivision 1; 245C.17, by adding a subdivision; 245C.21, by adding a
subdivision; 245C.23, subdivision 2; 246.54, subdivision 1; 252.32, subdivision
3; 256.01, subdivisions 2b, 18; 256.482, subdivisions 1, 8; 256.975, subdivision
7; 256B.057, subdivision 8; 256B.0625, subdivisions 18a, 20, by adding
subdivisions; 256B.0911, by adding a subdivision; 256B.0915, by adding a
subdivision; 256B.0943, subdivision 8; 256B.0945, subdivision 4; 256B.434,
by adding a subdivision; 256B.439, subdivision 1; 256B.441, by adding a
subdivision; 256B.5012, by adding a subdivision; 256B.69, subdivisions 4, 5g,
5h; 256B.76; 256B.763; 256D.03, subdivision 4; 256J.02, subdivisions 1, 4;
256J.021; 256J.09, subdivision 3b, by adding subdivisions; 256J.32, subdivision
6; 256J.42, subdivisions 1, 6; 256J.425, by adding subdivisions; 256J.46, by
adding subdivisions; 256J.49, subdivision 13; 256J.50, subdivision 1; 256J.521,
by adding a subdivision; 256J.531; 256J.626, subdivision 7, by adding a
subdivision; 256J.751, subdivisions 2, 5; 256J.95, subdivision 15; 256L.02,
subdivision 3, by adding subdivisions; 256L.03, subdivision 1; 256L.035;
256L.04, subdivision 1; 256L.05, subdivision 5, by adding a subdivision;
256L.06, subdivision 3; 256L.11, subdivision 7; 256L.12, subdivisions 7, 9a;
256L.15, subdivisions 1a, 2, by adding a subdivision; 259.20, subdivision 2;
259.29, subdivision 1; 259.41; 259.47, subdivision 3; 259.53, subdivision
2; 259.57, subdivision 2; 260C.193, subdivision 3; 260C.209; 260C.212,
subdivision 2; 609.115, subdivision 9; Laws 2005, chapter 98, article 3, section
25; proposing coding for new law in Minnesota Statutes, chapters 62A; 149A;
245; 245C; 256C; 256J; 256L; repealing Minnesota Statutes 2006, sections
256J.29; 256J.425, subdivisions 6, 7; 256J.46, subdivisions 1, 2, 2a; 256J.67;
256J.68; Laws 2004, chapter 288, article 6, section 27; Minnesota Rules, parts
4610.2800; 9585.0030.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HUMAN SERVICES APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 4,642,982,000 new text end	new text begin $ new text end	new text begin 4,981,113,000 new text end	new text begin $ new text end	new text begin 9,624,095,000 new text end
new text begin State Government Special Revenue new text end		new text begin 55,722,000 new text end		new text begin 56,428,000 new text end		new text begin 112,150,000 new text end
new text begin Health Care Access new text end		new text begin 493,981,000 new text end		new text begin 517,213,000 new text end		new text begin 1,011,194,000 new text end
new text begin Federal TANF new text end		new text begin 286,354,000 new text end		new text begin 283,434,000 new text end		new text begin 569,788,000 new text end
new text begin Lottery Prize Fund new text end		new text begin 1,459,000 new text end		new text begin 1,462,000 new text end		new text begin 2,921,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 5,480,498,000 new text end	new text begin $ new text end	new text begin 5,839,650,000 new text end	new text begin $ new text end	new text begin 11,320,148,000 new text end

Sec. 2. new text begin HEALTH AND HUMAN SERVICES APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
year ending June 30, 2007, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin HUMAN SERVICES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 5,248,777,000 new text end

new text begin $ new text end

new text begin 5,609,280,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 4,509,596,000 new text end	new text begin 4,850,114,000 new text end
new text begin State Government Special Revenue new text end	new text begin 545,000 new text end	new text begin 555,000 new text end
new text begin Health Care Access new text end	new text begin 459,823,000 new text end	new text begin 485,715,000 new text end
new text begin Federal TANF new text end	new text begin 277,354,000 new text end	new text begin 271,434,000 new text end
new text begin Lottery Prize Fund new text end	new text begin 1,459,000 new text end	new text begin 1,462,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Receipts for Systems Projects.
Appropriations and federal receipts for
information system projects for MAXIS,
PRISM, MMIS, and SSIS must be deposited
in the state system account authorized in
Minnesota Statutes, section 256.014. Money
appropriated for computer projects approved
by the Minnesota Office of Enterprise
Technology, funded by the legislature, and
approved by the commissioner of finance,
may be transferred from one project to
another and from development to operations
as the commissioner of human services
considers necessary. Any unexpended
balance in the appropriation for these
projects does not cancel but is available for
ongoing development and operations.
new text end

new text begin Systems Continuity. In the event of
disruption of technical systems or computer
operations, the commissioner may use
available grant appropriations to ensure
continuity of payments for maintaining the
health, safety, and well-being of clients
served by programs administered by the
Department of Human Services. Grant funds
must be used in a manner consistent with the
original intent of the appropriation.
new text end

new text begin Nonfederal Share Transfers. The
nonfederal share of activities for which
federal administrative reimbursement is
appropriated to the commissioner may be
transferred to the special revenue fund.
new text end

new text begin Gifts. Notwithstanding Minnesota
Statutes, sections 16A.013 to 16A.016, the
commissioner may accept, on behalf of the
state, additional funding from sources other
than state funds for the purpose of financing
the cost of assistance program grants or
nongrant administration. All additional
funding is appropriated to the commissioner
for use as designated by the grantor of
funding.
new text end

new text begin TANF Funds Appropriated to Other
Entities. Any expenditures from the TANF
block grant shall be expended according
to the requirements and limitations of part
A of title IV of the Social Security Act, as
amended, and any other applicable federal
requirement or limitation. Prior to any
expenditure of these funds, the commissioner
shall ensure that funds are expended in
compliance with the requirements and
limitations of federal law and that any
reporting requirements of federal law are
met. It shall be the responsibility of any entity
to which these funds are appropriated to
implement a memorandum of understanding
with the commissioner that provides the
necessary assurance of compliance prior to
any expenditure of funds. The commissioner
shall receipt TANF funds appropriated
to other state agencies and coordinate all
related interagency accounting transactions
necessary to implement these appropriations.
Unexpended TANF funds appropriated to
any state, local, or nonprofit entity cancel
at the end of the state fiscal year unless
appropriating or statutory language permits
otherwise.
new text end

new text begin TANF Maintenance of Effort. (a) In
order to meet the basic maintenance of
effort (MOE) requirements of the TANF
block grant specified under Code of Federal
Regulations, title 45, section 263.1, the
commissioner may only report nonfederal
money expended for allowable activities
listed in the following clauses as TANF/MOE
expenditures:
new text end

new text begin (1) MFIP cash, diversionary work program,
and food assistance benefits under Minnesota
Statutes, chapter 256J;
new text end

new text begin (2) the child care assistance programs
under Minnesota Statutes, sections 119B.03
and 119B.05, and county child care
administrative costs under Minnesota
Statutes, section 119B.15;
new text end

new text begin (3) state and county MFIP administrative
costs under Minnesota Statutes, chapters
256J and 256K;
new text end

new text begin (4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;
new text end

new text begin (5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without federal
financial participation program under
Minnesota Statutes, section 256B.06,
subdivision 4, paragraphs (d), (e), and (j);
and
new text end

new text begin (6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671.
new text end

new text begin (b) The commissioner shall ensure that
sufficient qualified nonfederal expenditures
are made each year to meet the state's
TANF/MOE requirements. For the activities
listed in paragraph (a), clauses (2) to
(6), the commissioner may only report
expenditures that are excluded from the
definition of assistance under Code of
Federal Regulations, title 45, section 260.31.
new text end

new text begin (c) The commissioner shall ensure that
the maintenance of effort used by the
commissioner of finance for the February
and November forecasts required under
Minnesota Statutes, section 16A.103,
contains expenditures under paragraph (a),
clause (1), equal to at least 25 percent of
the total required under Code of Federal
Regulations, title 45, section 263.1.
new text end

new text begin (d) Minnesota Statutes, section 256.011,
subdivision 3, which requires that federal
grants or aids secured or obtained under that
subdivision be used to reduce any direct
appropriations provided by law, does not
apply if the grants or aids are federal TANF
funds.
new text end

new text begin (e) Notwithstanding section 13, paragraph
(a), clauses (1) to (6), and paragraphs (b) to
(d), expire June 30, 2011.
new text end

new text begin Working Family Credit Expenditures
as TANF/MOE. The commissioner may
claim as TANF maintenance of effort up
to $6,707,000 per year for fiscal year 2008
through fiscal year 2011. Notwithstanding
section 13, this rider expires June 30, 2011.
new text end

new text begin Additional Working Family Credit
Expenditures to be Claimed for
TANF/MOE. In addition to the amounts
provided in this section, the commissioner
may count the following amounts of working
family credit expenditure as TANF/MOE:
new text end

new text begin (1) fiscal year 2008, $53,758,000; and
new text end

new text begin (2) fiscal year 2009, $52,943,000;
new text end

new text begin (3) fiscal year 2010, $26,472,000; and
new text end

new text begin (4) fiscal year 2011, $26,464,000.
new text end

new text begin Notwithstanding section 13, this rider expires
June 30, 2011.
new text end

new text begin TANF Transfer to Federal Child Care
and Development Fund. The following
TANF fund amounts are appropriated to
the commissioner for the purposes of MFIP
transition year child care under MFIP,
Minnesota Statutes, section 119B.05:
new text end

new text begin (1) fiscal year 2008, $40,378,000;
new text end

new text begin (2) fiscal year 2009, $33,918,000;
new text end

new text begin (3) fiscal year 2010, $11,726,000; and
new text end

new text begin (4) fiscal year 2011, $11,740,000.
new text end

new text begin The commissioner shall authorize transfer
of sufficient TANF funds to the federal
Child Care and Development Fund to meet
this appropriation and shall ensure that all
transferred funds are expended according the
federal Child Care and Development Fund
regulations.
new text end

new text begin Capitation Rate Increase. Of the health care
access fund appropriations to the University
of Minnesota in the higher education
omnibus appropriation bill, $2,157,000 in
fiscal year 2008 and $2,157,000 in fiscal year
2009 are to be used to increase the capitation
payments under Minnesota Statutes, section
256B.69.
new text end

new text begin Health Care Access Fund Transfer.
Notwithstanding Minnesota Statutes, section
295.581, in addition to the transfers in
Minnesota Statutes, section 16A.724,
subdivision 2, the commissioner of finance
shall transfer up to the following amounts
from the health care access fund to the
general fund on June 30 of each fiscal year:
new text end

new text begin (1) fiscal year 2008, $4,744,000;
new text end

new text begin (2) fiscal year 2009, $9,710,000;
new text end

new text begin (3) fiscal year 2010, $15,669,000; and
new text end

new text begin (4) fiscal year 2011, $18,280,000.
new text end

new text begin Notwithstanding section 13, this rider expires
June 30, 2011.
new text end

new text begin Subd. 2. new text end new text begin Agency Management new text end

new text begin 56,929,000 new text end

new text begin 57,377,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 48,265,000 new text end	new text begin 48,748,000 new text end
new text begin State Government Special Revenue new text end	new text begin 424,000 new text end	new text begin 432,000 new text end
new text begin Health Care Access new text end	new text begin 8,018,000 new text end	new text begin 7,975,000 new text end
new text begin Federal TANF new text end	new text begin 222,000 new text end	new text begin 222,000 new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Financial Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 7,102,000 new text end	new text begin 7,523,000 new text end
new text begin Health Care Access new text end	new text begin 889,000 new text end	new text begin 880,000 new text end
new text begin Federal TANF new text end	new text begin 122,000 new text end	new text begin 122,000 new text end

new text begin (b) Legal and Regulation Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 12,980,000 new text end	new text begin 13,086,000 new text end
new text begin State Government Special Revenue new text end	new text begin 424,000 new text end	new text begin 432,000 new text end
new text begin Health Care Access new text end	new text begin 891,000 new text end	new text begin 908,000 new text end
new text begin Federal TANF new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin (c) Management Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,299,000 new text end	new text begin 4,351,000 new text end
new text begin Health Care Access new text end	new text begin 234,000 new text end	new text begin 238,000 new text end

new text begin (d) Information Technology Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 23,884,000 new text end	new text begin 23,788,000 new text end
new text begin Health Care Access new text end	new text begin 6,004,000 new text end	new text begin 5,949,000 new text end

new text begin Subd. 3. new text end new text begin Revenue and Pass-Through Expenditures new text end

new text begin 96,463,000 new text end

new text begin 90,492,000 new text end

new text begin Federal TANF new text end

new text begin 96,463,000 new text end

new text begin 90,492,000 new text end

new text begin Subd. 4. new text end new text begin Children and Economic Assistance Grants new text end

new text begin 684,906,000 new text end

new text begin 675,939,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 495,858,000 new text end	new text begin 476,765,000 new text end
new text begin Federal TANF new text end	new text begin 179,473,000 new text end	new text begin 179,524,000 new text end
new text begin Health Care Access new text end	new text begin 9,575,000 new text end	new text begin 19,650,000 new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

new text begin (a) MFIP/DWP Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 61,180,000 new text end	new text begin 60,983,000 new text end
new text begin Federal TANF new text end	new text begin 76,141,000 new text end	new text begin 75,242,000 new text end

new text begin (b) Support Services Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,715,000 new text end	new text begin 8,715,000 new text end
new text begin Federal TANF new text end	new text begin 103,332,000 new text end	new text begin 104,282,000 new text end

new text begin TANF Prior Appropriation Cancellation.
Notwithstanding Laws 2001, First Special
Session chapter 9, article 17, section
2, subdivision 11, paragraph (b), any
unexpended TANF funds appropriated to the
commissioner to contract with the Board of
Trustees of Minnesota State Colleges and
Universities, to provide tuition waivers to
employees of health care and human service
providers that are members of qualifying
consortia operating under Minnesota
Statutes, sections 116L.10 to 116L.15, must
cancel at the end of fiscal year 2007.
new text end

new text begin (c) MFIP Child Care Assistance Grants new text end

new text begin General new text end

new text begin 36,232,000 new text end

new text begin 42,002,000 new text end

new text begin (d) Basic Sliding Fee Child Care Assistance Grants new text end

new text begin General new text end

new text begin 41,665,000 new text end

new text begin 43,095,000 new text end

new text begin Base Adjustment. The general fund base is
increased by $21,000 in fiscal year 2010 and
$34,000 in fiscal year 2011 for basic sliding
fee child care assistance grants.
new text end

new text begin (e) Child Care Development Grants new text end

new text begin General new text end

new text begin 1,515,000 new text end

new text begin 1,515,000 new text end

new text begin (f) Child Support Enforcement Grants new text end

new text begin General new text end

new text begin 3,705,000 new text end

new text begin 3,705,000 new text end

new text begin (g) Children's Services Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 56,473,000 new text end	new text begin 62,761,000 new text end
new text begin Health Care Access new text end	new text begin 9,575,000 new text end	new text begin 19,650,000 new text end

new text begin Privatized Adoption Grants. Federal
reimbursement for privatized adoption grant
and foster care recruitment grant expenditures
is appropriated to the commissioner for
adoption grants and foster care and adoption
administrative purposes.
new text end

new text begin Adoption Assistance Incentive Grants.
Federal funds available during fiscal year
2008 and fiscal year 2009 for the adoption
incentive grants are appropriated to the
commissioner for these purposes.
new text end

new text begin Adoption Assistance and Relative Custody
Assistance. The commissioner may transfer
unencumbered appropriation balances for
adoption assistance and relative custody
assistance between fiscal years and between
programs.
new text end

new text begin Adoption Assistance and Relative
Custody Assistance Subsidy Payment
Increase. Notwithstanding Minnesota
Rules, part 9560.0083, subparts 5 and 6, the
commissioner shall increase the payment
schedules for basic and supplemental
maintenance needs subsidies by five percent
effective July 1, 2007. The commissioner
may make cost-neutral adjustments between
schedules and between brackets within
schedules to allow for whole-dollar bracket
levels and account for differential cost
increases in caring for children with special
needs. Counties have until December 31,
2007, to implement the relative custody
assistance payment increases and shall make
payment adjustments retroactive to July 1,
2007.
new text end

new text begin Base Adjustment. The general fund base
is decreased by $3,121,000 in each of fiscal
years 2010 and 2011 for children services
grants, and the health care access fund is
increased by $1,750,000 in each of fiscal
years 2010 and 2011.
new text end

new text begin (h) Children and Community Services Grants new text end

new text begin General new text end

new text begin 108,702,000 new text end

new text begin 69,208,000 new text end

new text begin Base Adjustment. The general fund base is
increased by $66,000 in each of fiscal years
2010 and 2011 for children and community
service grants.
new text end

new text begin Targeted Case Management Temporary
Funding. Of the general fund appropriation,
$40,000,000 in fiscal year 2008 is allocated to
counties and tribes affected by reductions in
targeted case management federal Medicaid
revenue as a result of the provisions in
the federal Deficit Reduction Act of 2005,
Public Law 109-171. The commissioner
shall distribute the funds proportionate
to each affected county or tribe's targeted
case management federal earnings for
calendar year 2005. Prior to distribution
of funds, the commissioner shall estimate
and certify the amount by which the federal
regulations will reduce case management
revenue over the 2008-2009 biennium. The
commissioner may provide grants up to the
amount of the estimated reduction, not to
exceed $40,000,000 for the biennium. The
commissioner may determine the timing and
frequency of payments to counties. These
funds are available in either year of the
biennium. Counties shall use these funds to
pay for social service-related costs, but the
funds are not subject to provisions of the
Children and Community Services Act grant
under Minnesota Statutes, chapter 256M.
new text end

new text begin (i) General Assistance Grants new text end

new text begin General new text end

new text begin 37,885,000 new text end

new text begin 38,262,000 new text end

new text begin General Assistance Standard. The
commissioner shall set the monthly standard
of assistance for general assistance units
consisting of an adult recipient who is
childless and unmarried or living apart
from parents or a legal guardian at $203.
The commissioner may reduce this amount
according to Laws 1997, chapter 85, article
3, section 54.
new text end

new text begin Emergency General Assistance. The
amount appropriated for emergency general
assistance funds is limited to no more
than $7,889,812 in fiscal year 2008 and
$7,889,812 in fiscal year 2009. Funds
to counties must be allocated by the
commissioner using the allocation method
specified in Minnesota Statutes, section
256D.06.
new text end

new text begin (j) Minnesota Supplemental Aid Grants new text end

new text begin General new text end

new text begin 30,468,000 new text end

new text begin 30,829,000 new text end

new text begin Emergency Minnesota Supplemental
Aid Funds. The amount appropriated for
emergency Minnesota supplemental aid
funds is limited to no more than $1,100,000
in fiscal year 2008 and $1,100,000 in fiscal
year 2009. Funds to counties must be
allocated by the commissioner using the
allocation method specified in Minnesota
Statutes, section 256D.46.
new text end

new text begin (k) Group Residential Housing Grants new text end

new text begin General new text end

new text begin 91,385,000 new text end

new text begin 98,257,000 new text end

new text begin (l) Other Children and Economic Assistance Grants new text end

new text begin General new text end

new text begin 17,933,000 new text end

new text begin 17,433,000 new text end

new text begin Subd. 5. new text end new text begin Children and Economic Assistance Management new text end

new text begin 46,881,000 new text end

new text begin 47,032,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 45,338,000 new text end	new text begin 45,482,000 new text end
new text begin Health Care Access new text end	new text begin 347,000 new text end	new text begin 354,000 new text end
new text begin Federal TANF new text end	new text begin 1,196,000 new text end	new text begin 1,196,000 new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Children and Economic Assistance Administration new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 9,804,000 new text end	new text begin 9,720,000 new text end
new text begin Federal TANF new text end	new text begin 1,196,000 new text end	new text begin 1,196,000 new text end

new text begin (b) Children and Economic Assistance Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 35,534,000 new text end	new text begin 35,762,000 new text end
new text begin Health Care Access new text end	new text begin 347,000 new text end	new text begin 354,000 new text end

new text begin Spending Authority for Food Stamps
Bonus Awards. In the event that Minnesota
qualifies for the United States Department
of Agriculture Food and Nutrition Services
Food Stamp Program performance bonus
awards, the funding is appropriated to the
commissioner. The commissioner shall
retain 25 percent of the funding, with the
other 75 percent divided among the counties
according to a formula that takes into account
each county's impact on state performance in
the applicable bonus categories.
new text end

new text begin Child Support Payment Center. Payments
to the commissioner from other governmental
units, private enterprises, and individuals
for services performed by the child support
payment center must be deposited in the state
systems account authorized under Minnesota
Statutes, section 256.014. These payments
are appropriated to the commissioner for the
operation of the child support payment center
or system, according to Minnesota Statutes,
section 256.014.
new text end

new text begin Financial Institution Data Match and
Payment of Fees. The commissioner is
authorized to allocate up to $310,000 each
year in fiscal years 2008 and 2009 from the
PRISM special revenue account to make
payments to financial institutions in exchange
for performing data matches between account
information held by financial institutions
and the public authority's database of child
support obligors as authorized by Minnesota
Statutes, section 13B.06, subdivision 7.
new text end

new text begin Subd. 6. new text end new text begin Basic Health Care Grants new text end

new text begin 2,371,510,000 new text end

new text begin 2,600,451,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,955,762,000 new text end	new text begin 2,172,815,000 new text end
new text begin Health Care Access new text end	new text begin 415,748,000 new text end	new text begin 427,636,000 new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) MinnesotaCare Grants new text end

new text begin Health Care Access new text end

new text begin 414,076,000 new text end

new text begin 427,636,000 new text end

new text begin MinnesotaCare Federal Receipts. Receipts
received as a result of federal participation
in administering costs of the Minnesota
health care reform waiver must be deposited
as nondedicated revenue in the health care
access fund. Receipts received as a result of
federal participation in making grants must
be deposited in the federal fund and must
offset health care access funds for payments
to providers.
new text end

new text begin MinnesotaCare Funding. The
commissioner may expend money
appropriated from the health care access fund
for MinnesotaCare in either fiscal year of the
biennium.
new text end

new text begin (b) MA Basic Health Care - Families and Children new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 717,176,000 new text end	new text begin 813,792,000 new text end
new text begin Health Care Access new text end	new text begin 1,672,000 new text end	new text begin -0- new text end

new text begin (c) MA Basic Health Care - Elderly and Disabled new text end

new text begin General new text end

new text begin 1,014,783,000 new text end

new text begin 1,120,250,000 new text end

new text begin new text begin Physician-Directed Care Coordination. new text end In
addition to medical assistance reimbursement
under Minnesota Statutes, sections
256B.0625 and 256B.76, clinics participating
in physician-directed care coordination under
Minnesota Statutes, section 256B.0625, also
receive a monthly payment per client when
the clinic serves an eligible client. The
payments across the program must average
$50 per month per client.
new text end

new text begin (d) General Assistance Medical Care Grants new text end

new text begin General new text end

new text begin 223,594,000 new text end

new text begin 238,564,000 new text end

new text begin (e) Other Health Care Grants new text end

new text begin General new text end

new text begin 209,000 new text end

new text begin 209,000 new text end

new text begin Subd. 7. new text end new text begin Health Care Management new text end

new text begin 51,558,000 new text end

new text begin 50,675,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 30,637,000 new text end	new text begin 29,594,000 new text end
new text begin Health Care Access new text end	new text begin 20,921,000 new text end	new text begin 21,081,000 new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Health Care Policy Administration new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 9,596,000 new text end	new text begin 8,310,000 new text end
new text begin Health Care Access new text end	new text begin 974,000 new text end	new text begin 2,730,000 new text end

new text begin Minnesota Senior Health Options
Reimbursement. Federal administrative
reimbursement resulting from the Minnesota
senior health options project is appropriated
to the commissioner for this activity.
new text end

new text begin Utilization Review. Federal administrative
reimbursement resulting from prior
authorization and inpatient admission
certification by a professional review
organization is dedicated to the commissioner
for these purposes. A portion of these funds
must be used for activities to decrease
unnecessary pharmaceutical costs in medical
assistance.
new text end

new text begin Base Adjustment. The health care access
fund base is increased by $1,618,000 in fiscal
year 2010 and $1,708,000 in fiscal year 2011,
for health care administration.
new text end

new text begin (b) Health Care Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 21,041,000 new text end	new text begin 21,284,000 new text end
new text begin Health Care Access new text end	new text begin 19,947,000 new text end	new text begin 18,351,000 new text end

new text begin Base Adjustment. The health care access
fund base is decreased by $134,000 in fiscal
year 2010 and $300,000 in fiscal year 2011
for health care operations.
new text end

new text begin Subd. 8. new text end new text begin Continuing Care Grants new text end

new text begin 7,757,386 new text end

new text begin 11,699,194 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,649,386 new text end	new text begin 1,791,194 new text end
new text begin Health Care Access new text end	new text begin 4,800,000 new text end	new text begin 8,600,000 new text end
new text begin Lottery Prize new text end	new text begin 1,308,000 new text end	new text begin 1,308,000 new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Aging and Adult Services Grant new text end

new text begin General new text end

new text begin 14,107,000 new text end

new text begin 14,477,000 new text end

new text begin Information and Assistance
Reimbursement. Federal administrative
reimbursement obtained from information
and assistance services provided by the
Senior Linkage Line to people who are
identified as eligible for medical assistance
are appropriated to the commissioner for this
activity.
new text end

new text begin Base Adjustment. The general fund base is
increased by $47,000 in each of fiscal years
2010 and 2011 for aging and adult services
grants.
new text end

new text begin (b) Alternative Care Grants new text end

new text begin General new text end

new text begin 49,883,000 new text end

new text begin 51,828,000 new text end

new text begin Alternative Care Transfer. Any money
allocated to the alternative care program that
is not spent for the purposes indicated does
not cancel but is transferred to the medical
assistance account.
new text end

new text begin Base Adjustment. The general fund base is
increased by $335,000 in fiscal year 2010 and
$375,000 in fiscal year 2011 for alternative
care grants.
new text end

new text begin (c) Medical Assistance Grants - Long-term Care Facilities new text end

new text begin General new text end

new text begin 486,505,000 new text end

new text begin 493,980,000 new text end

new text begin New Nursing Facility Reimbursement
System Delay. Notwithstanding Minnesota
Statutes, section 256B.441, subdivision 1,
paragraph (c), the commissioner shall begin
to phase in the new reimbursement system
for nursing facilities on or after October 1,
2009.
new text end

new text begin Long-Term Care Consultation Funding
Increase. For the rate year beginning
October 1, 2008, the county long-term
care consultation allocations in Minnesota
Statutes, section 256B.0911, subdivision
6, must be increased based on the number
of transitional long-term care consultation
visits projected by the commissioner in
each county. For the rate year beginning
October 1, 2009, final allocations must be
determined based on the average between
the actual number of transitional long-term
care visits that were conducted in the prior
12-month period and the projected number
of consultations that will be provided in
the rate year beginning October 1, 2009.
Notwithstanding section 13, this rider expires
June 30, 2010.
new text end

new text begin (d) Medical Assistance Grants - Long-Term Care Waivers and Home Care Grants new text end

new text begin General new text end

new text begin 945,875,000 new text end

new text begin 1,063,622,000 new text end

new text begin Transition of Existing Providers to
New Licensure Requirement. Providers
of adult day supports and habilitation,
residential-based supports and habilitation,
supported employment, or crisis respite
under a federally approved home and
community-based services Medicaid waiver
that, as of January 1, 2008, are newly
required to be licensed by the commissioner
of human services under Minnesota
Statutes, chapter 245A, and according to
the licensing requirements under Minnesota
Statutes, chapter 245B, shall submit a
license application fee as required under
Minnesota Statutes, section 245A.10,
subdivision 3, upon receipt of notice from
the commissioner. The commissioner shall
notify each provider of a general schedule
for licensing providers over calendar year
2008 and shall inform the provider of the
month during which that provider's licensing
inspection is expected to occur. Prior to
January 1, 2009, nonlicensure is not a
reason to terminate a provider's eligibility
for Medicaid reimbursement, unless a final
commissioner's order denying an application
or revoking a license has been issued.
new text end

new text begin (e) Mental Health Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 56,694,000 new text end	new text begin 59,849,000 new text end
new text begin Health Care Access new text end	new text begin 3,250,000 new text end	new text begin 6,750,000 new text end
new text begin Lottery Prize new text end	new text begin 1,308,000 new text end	new text begin 1,308,000 new text end

new text begin Base Adjustment. The general fund base is
decreased by $5,109,000 in fiscal year 2010
and by $5,110,000 in fiscal year 2011 for
mental health grants. The health care access
fund is increased by $1,750,000 in each of
fiscal years 2010 and 2011.
new text end

new text begin (f) Deaf and Hard-of-Hearing Grants new text end

new text begin General new text end

new text begin 1,884,000 new text end

new text begin 2,312,000 new text end

new text begin Base Adjustment. The general fund base is
increased by $4,000 in each of fiscal years
2010 and 2011 for deaf and hard-of-hearing
grants.
new text end

new text begin (g) Chemical Dependency Entitlement Grants new text end

new text begin General new text end

new text begin 78,880,000 new text end

new text begin 88,867,000 new text end

new text begin (h) Chemical Dependency Nonentitlement Grants new text end

new text begin General new text end

new text begin 1,055,000 new text end

new text begin 1,055,000 new text end

new text begin (i) Other Continuing Care Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 14,503,000 new text end	new text begin 15,204,000 new text end
new text begin Health Care Access new text end	new text begin 1,550,000 new text end	new text begin 1,850,000 new text end

new text begin Base Adjustment. The general fund base
is increased by $120,000 in fiscal year 2010
and by $158,000 in fiscal year 2011 for other
continuing care grants.
new text end

new text begin Subd. 9. new text end new text begin Continuing Care Management new text end

new text begin 18,391,000 new text end

new text begin 18,494,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 17,705,000 new text end	new text begin 17,798,000 new text end
new text begin State Government Special Revenue new text end	new text begin 121,000 new text end	new text begin 123,000 new text end
new text begin Health Care Access new text end	new text begin 414,000 new text end	new text begin 419,000 new text end
new text begin Lottery Prize new text end	new text begin 151,000 new text end	new text begin 154,000 new text end

new text begin Subd. 10. new text end new text begin State-Operated Services new text end

new text begin 266,645,000 new text end

new text begin 267,718,000 new text end

new text begin General new text end

new text begin 266,645,000 new text end

new text begin 267,718,000 new text end

new text begin Transfer Authority Related to
State-Operated Services. Money
appropriated to finance state-operated
services programs and administrative
services may be transferred between fiscal
years of the biennium with the approval of
the commissioner of finance.
new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Mental Health Services new text end

new text begin General new text end

new text begin 116,270,000 new text end

new text begin 120,095,000 new text end

new text begin Appropriation Limitation. No part of
the appropriation in this article to the
commissioner for mental health treatment
services at the regional treatment centers
shall be used for the Minnesota sex offender
program.
new text end

new text begin (b) Minnesota Sex Offender Services new text end

new text begin General new text end

new text begin 67,719,000 new text end

new text begin 62,787,000 new text end

new text begin (c) Minnesota Security Hospital and METO Services new text end

new text begin General new text end

new text begin 82,656,000 new text end

new text begin 84,836,000 new text end

new text begin Minnesota Security Hospital. For the
purposes of enhancing the safety of
the public, improving supervision, and
enhancing community-based mental health
treatment, state-operated services may
establish additional community capacity
for providing treatment and supervision
of clients who have been ordered into a
less restrictive alternative care from the
state-operated services transitional services
program consistent with Minnesota Statutes,
section 246.014.
new text end

new text begin Base Adjustment. The general fund base
is increased by $1,659,000 in each of fiscal
years 2010 and 2011 for the Minnesota
Security Hospital.
new text end

Sec. 4. new text begin COMMISSIONER OF HEALTH new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 167,298,000 new text end

new text begin $ new text end

new text begin 163,842,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 84,304,000 new text end	new text begin 79,702,000 new text end
new text begin State Government Special Revenue new text end	new text begin 39,836,000 new text end	new text begin 40,642,000 new text end
new text begin Health Care Access new text end	new text begin 34,158,000 new text end	new text begin 31,498,000 new text end
new text begin Federal TANF new text end	new text begin 9,000,000 new text end	new text begin 12,000,000 new text end

new text begin Subd. 2. new text end new text begin Community and Family Health Promotion new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 43,883,000 new text end	new text begin 43,983,000 new text end
new text begin State Government Special Revenue new text end	new text begin 468,000 new text end	new text begin 471,000 new text end
new text begin Health Care Access new text end	new text begin 4,299,000 new text end	new text begin 4,492,000 new text end
new text begin Federal TANF new text end	new text begin 6,317,000 new text end	new text begin 9,002,000 new text end

new text begin new text begin TANF Appropriations. new text end $5,817,000 of the
TANF funds in the first year and $8,502,000
in the second year are appropriated to
the commissioner for home visiting and
nutritional services listed under Minnesota
Statutes, section 145.882, subdivision 7,
clauses (6) and (7). Funding shall be
distributed to community health boards based
on Minnesota Statutes, section 145A.131,
subdivision 1.
new text end

new text begin new text begin MN ENABL. new text end $500,000 of the TANF
funds each fiscal year is appropriated to the
commissioner for abstinence education under
Minnesota Statutes, section 145.9255.
new text end

new text begin new text begin Loan Forgiveness. new text end Of the health care access
fund appropriation, $760,000 the first year,
$930,000 the second year, and thereafter
are for the loan forgiveness program under
Minnesota Statutes, section 144.1501. This
funding is in addition to the loan forgiveness
program health care access fund base.
new text end

new text begin Fetal Alcohol Spectrum Disorder. (a)
On July 1 each fiscal year, the portion
of the general fund appropriation to the
commissioner of health for fetal alcohol
spectrum disorder administration and
grants shall be transferred to a statewide
organization that focuses solely on
prevention of and intervention with fetal
alcohol spectrum disorder as follows:
new text end

new text begin (1) on July 1, 2007, $2,090,000; and
new text end

new text begin (2) on July 2, 2008, and annually thereafter,
$2,090,000.
new text end

new text begin (b) The money shall be used for prevention
and intervention services and programs,
including, but not limited to, community
grants, professional education, public
awareness, and diagnosis. The organization
may retain $60,000 of the transferred money
for administrative costs. The organization
shall report to the commissioner annually
by January 15 on the services and programs
funded by the appropriation.
new text end

new text begin Subd. 3. new text end new text begin Policy, Quality, and Compliance new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,677,000 new text end	new text begin 3,689,000 new text end
new text begin State Government Special Revenue new text end	new text begin 13,403,000 new text end	new text begin 13,497,000 new text end
new text begin Health Care Access new text end	new text begin 27,859,000 new text end	new text begin 25,006,000 new text end

new text begin new text begin Health Care Access Survey. new text end Of the
health care access fund appropriation,
$600,000 in fiscal year 2008 is appropriated
to the commissioner to conduct a health
insurance survey of Minnesota households,
in partnership with the State Health Access
Data Assistance Center at the University
of Minnesota. The commissioner shall
contract with the State Health Access Data
Assistance Center to conduct a survey that
provides information on the characteristics
of the uninsured in Minnesota and the
reasons for changing patterns of insurance
coverage and access to health care services.
This appropriation shall become part of the
agency's base budget for even-numbered
fiscal years.
new text end

new text begin new text begin MERC. new text end Of the health care access fund
appropriation, $8,000,000 each fiscal year is
for distribution of MERC grants as follows:
new text end

new text begin (1) $5,000,000 according to Minnesota
Statutes, section 62J.692, subdivision 4,
paragraph (c);
new text end

new text begin (2) $900,000 according to Minnesota
Statutes, section 62J.692, subdivision 4,
paragraph (d);
new text end

new text begin (3) $100,000 according to Minnesota
Statutes, section 62J.692, subdivision 4,
paragraph (e); and
new text end

new text begin (4) $2,000,000 according to Minnesota
Statutes, section 62J.692, subdivision 7a,
paragraph (b).
new text end

new text begin new text begin Health Information Technology. new text end Of
the health care access fund appropriation,
$7,500,000 in fiscal year 2008 and
$11,000,000 in fiscal year 2009 are to
implement Minnesota Statutes, section
144.3345. Up to $750,000 each fiscal year is
available for grant administration and health
information technology technical assistance.
This appropriation shall be included in the
agency's base budget for fiscal year 2010
only.
new text end

new text begin new text begin Health Insurance Exchange. new text end Of the health
care access fund appropriation, $8,950,000 in
fiscal year 2008 and $3,150,000 in fiscal year
2009 are appropriated to the commissioner
to establish the health insurance exchange
in Minnesota Statutes, section 62A.76.
Up to $50,000 in fiscal year 2008 and
$10,000 in fiscal year 2009 are available
for administrative costs incurred by the
Department of Health in establishing and
providing grant funding to the legal entity
responsible for implementing the health
insurance exchange. This is a onetime
appropriation.
new text end

new text begin Subd. 4. new text end new text begin Health Protection new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 22,705,000 new text end	new text begin 17,831,000 new text end
new text begin State Government Special Revenue new text end	new text begin 25,965,000 new text end	new text begin 26,674,000 new text end

new text begin new text begin Pandemic Influenza Preparedness. new text end Of
the general fund appropriation to the
commissioner, $12,375,000 in fiscal year
2008 and $7,375,000 in fiscal year 2009 are
for preparation, planning, and response to a
pandemic influenza outbreak.
new text end

new text begin (1) Of the fiscal year 2008 appropriation,
$5,000,000 is to purchase antiviral
medications, $5,000,000 is to prepare and
manage a stockpile of health care supplies,
$1,375,000 is for department activities of
epidemiology, laboratory services, exercises,
and planning; and $1,000,000 is for grants to
local public health and tribal governments
for planning, exercises, and preparedness for
pandemic influenza.
new text end

new text begin (2) Of the fiscal year 2009 appropriation,
$5,000,000 is to prepare and manage a
stockpile of health care supplies, $1,375,000
is for department activities of epidemiology,
laboratory services, exercises, and planning;
and $1,000,000 is for grants to local public
health and tribal governments for planning,
exercises, and preparedness for pandemic
influenza.
new text end

new text begin (3) Base funding for the 2010-2011 biennium
is $4,375,000 each fiscal year.
new text end

new text begin Subd. 5. new text end new text begin Minority and Multicultural Health new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,992,000 new text end	new text begin 5,002,000 new text end
new text begin Federal TANF new text end	new text begin 2,683,000 new text end	new text begin 2,998,000 new text end

new text begin new text begin TANF Appropriations. new text end $2,683,000 of the
TANF funds in the first year and $2,998,000
in the second year are appropriated to
the commissioner for home visiting and
nutritional services listed under Minnesota
Statutes, section 145.882, subdivision 7,
clauses (6) and (7). Funding shall be
distributed to tribal governments based
on Minnesota Statutes, section 145A.14,
subdivision 2, paragraph (b).
new text end

new text begin Subd. 6. new text end new text begin Administrative Support Services new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 9,047,000 new text end	new text begin 9,197,000 new text end
new text begin Health Care Access new text end	new text begin 2,000,000 new text end	new text begin 2,000,000 new text end

new text begin new text begin Disease Surveillance. new text end Of the health care
access fund appropriation, $2,000,000
each fiscal year is for redesigning and
implementing coordinated and modern
disease surveillance systems for the
department. Base level funding for the
2012-2013 biennium will be $600,000 each
fiscal year for maintaining and operating the
systems.
new text end

Sec. 5. new text begin VETERANS NURSING HOMES BOARD new text end

new text begin $ new text end

new text begin 44,124,000 new text end

new text begin $ new text end

new text begin 46,244,000 new text end

new text begin Repair and Betterments. new text end new text begin Of this
appropriation, $4,000,000 in fiscal year
2008 and $4,000,000 in fiscal year 2009
are to be used for repair, maintenance,
rehabilitation, and betterment activities at
facilities statewide.
new text end

new text begin Base Adjustment. new text end new text begin The general fund base is
decreased by $2,000,000 in fiscal year 2010
and $2,000,000 in fiscal year 2011.
new text end

Sec. 6. new text begin HEALTH-RELATED BOARDS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 14,654,000 new text end

new text begin $ new text end

new text begin 14,527,000 new text end

new text begin Subd. 2. new text end new text begin Board of Chiropractic Examiners new text end

new text begin 450,000 new text end

new text begin 447,000 new text end

new text begin Subd. 3. new text end new text begin Board of Dentistry new text end

new text begin 987,000 new text end

new text begin 1,009,000 new text end

new text begin Subd. 4. new text end new text begin Board of Dietetic and Nutrition Practice new text end

new text begin 103,000 new text end

new text begin 119,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation in
fiscal year 2009, $14,000 is onetime.
new text end

new text begin Subd. 5. new text end new text begin Board of Marriage and Family Therapy new text end

new text begin 134,000 new text end

new text begin 154,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation in
fiscal year 2009, $17,000 is onetime.
new text end

new text begin Subd. 6. new text end new text begin Board of Medical Practice new text end

new text begin 4,120,000 new text end

new text begin 3,674,000 new text end

new text begin Subd. 7. new text end new text begin Board of Nursing new text end

new text begin 3,985,000 new text end

new text begin 4,146,000 new text end

new text begin Subd. 8. new text end new text begin Board of Nursing Home Administrators new text end

new text begin 633,000 new text end

new text begin 647,000 new text end

new text begin Administrative Services Unit. new text end new text begin Of this
appropriation, $430,000 in fiscal year
2008 and $439,000 in fiscal year 2009 are
for the administrative services unit. The
administrative services unit may receive
and expend reimbursements for services
performed by other agencies.
new text end

new text begin Subd. 9. new text end new text begin Board of Optometry new text end

new text begin 98,000 new text end

new text begin 114,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation in
fiscal year 2009, $13,000 is onetime.
new text end

new text begin Subd. 10. new text end new text begin Board of Pharmacy new text end

new text begin 1,375,000 new text end

new text begin 1,442,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation in
fiscal year 2009, $29,000 is onetime.
new text end

new text begin Subd. 11. new text end new text begin Board of Physical Therapy new text end

new text begin 306,000 new text end

new text begin 295,000 new text end

new text begin Subd. 12. new text end new text begin Board of Podiatry new text end

new text begin 54,000 new text end

new text begin 63,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation in
fiscal year 2009, $7,000 is onetime.
new text end

new text begin Subd. 13. new text end new text begin Board of Psychology new text end

new text begin 788,000 new text end

new text begin 806,000 new text end

new text begin Subd. 14. new text end new text begin Board of Social Work new text end

new text begin 997,000 new text end

new text begin 1,022,000 new text end

new text begin Subd. 15. new text end new text begin Board of Veterinary Medicine new text end

new text begin 230,000 new text end

new text begin 195,000 new text end

new text begin Subd. 16. new text end new text begin Board of Behavioral Health and Therapy new text end

new text begin 394,000 new text end

new text begin 394,000 new text end

Sec. 7. new text begin EMERGENCY MEDICAL SERVICES BOARD new text end

new text begin $ new text end

new text begin 4,220,000 new text end

new text begin $ new text end

new text begin 4,264,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 2,633,000 new text end	new text begin 2,660,000 new text end
new text begin General (open) new text end	new text begin 900,000 new text end	new text begin 900,000 new text end
new text begin State Government Special Revenue new text end	new text begin 687,000 new text end	new text begin 704,000 new text end

new text begin Health Professional Services Program. new text end new text begin
$687,000 in fiscal year 2008 and $704,000 in
fiscal year 2009 from the state government
special revenue fund are for the health
professional services program.
new text end

Sec. 8. new text begin COUNCIL ON DISABILITY new text end
new text begin General new text end			new text begin $ new text end	new text begin 507,000 new text end	new text begin $ new text end	new text begin 515,000 new text end

Sec. 9. new text begin OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES new text end
new text begin General new text end			new text begin $ new text end	new text begin 1,567,000 new text end	new text begin $ new text end	new text begin 1,621,000 new text end

Sec. 10. new text begin OMBUDSMAN FOR FAMILIES new text end
new text begin General new text end			new text begin $ new text end	new text begin 251,000 new text end	new text begin $ new text end	new text begin 257,000 new text end

Sec. 11. new text begin TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin The commissioner of human services, with the approval
of the commissioner of finance and after notifying the chairs of the senate and house
committees with jurisdiction, may transfer unencumbered appropriation balances for the
biennium ending June 30, 2009, within fiscal years among the MFIP; general assistance;
general assistance medical care; medical assistance; MFIP child care assistance under
Minnesota Statutes, section 119B.05; Minnesota supplemental aid and group residential
housing programs; and the entitlement portion of the chemical dependency consolidated
treatment fund and between fiscal years of the biennium.
new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin Positions, salary money, and nonsalary administrative
money may be transferred within the Departments of Human Services and Health and
within the programs operated by the Veterans Nursing Homes Board as the commissioners
and the board consider necessary, with the advance approval of the commissioner of
finance. The commissioner or the board shall inform the chairs of the house and senate
committees with jurisdiction quarterly about transfers made under this provision.
new text end

Sec. 12. new text begin INDIRECT COSTS NOT TO FUND PROGRAMS.
new text end

new text begin The commissioners of health and of human services shall not use indirect cost
allocations to pay for the operational costs of any program for which they are responsible.
new text end

Sec. 13. new text begin SUNSET OF UNCODIFIED LANGUAGE.
new text end

new text begin All uncodified language contained in this article expires on June 30, 2009, unless a
different expiration date is explicit.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin The provisions in this article are effective July 1, 2007, unless a different effective
date is specified.
new text end

ARTICLE 2

CHILD CARE

Section 1.

Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin General deleted text end Eligibility requirements for deleted text begin all applicants for deleted text end child
care assistance.

(a) Child care services must be available to families who need child
care to find or keep employment or to obtain the training or education necessary to find
employment and who:

(1) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and meet the requirements of section 119B.05;
deleted text begin receive MFIP assistance; and are participating in employment and training services under
chapter 256J or 256K; or
deleted text end

(2) have household income less than or equal to 175 percent of the federal poverty
guidelines, adjusted for family size, at program entry and less than 250 percent of the
federal poverty guidelines, adjusted for family size, at program exit deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and were a family whose child care assistance was
terminated due to insufficient funds under Minnesota Rules, part 3400.0183.
new text end

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family as a condition
of program eligibility. For purposes of this section, a family is considered to meet the
requirement for cooperation when the family complies with the requirements of section
256.741.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119B.09, subdivision 7, is amended to read:

Subd. 7.

Date of eligibility for assistance.

(a) The date of eligibility for child
care assistance under this chapter is the later of the date the application was signed; the
beginning date of employment, education, or training; the date the infant is born for
applicants to the at-home infant care program; or the date a determination has been made
that the applicant is a participant in employment and training services under Minnesota
Rules, part 3400.0080, deleted text begin subpart 2a, deleted text end or chapter 256J.

(b) Payment ceases for a family under the at-home infant child care program when a
family has used a total of 12 months of assistance as specified under section 119B.035.
Payment of child care assistance for employed persons on MFIP is effective the date of
employment or the date of MFIP eligibility, whichever is later. Payment of child care
assistance for MFIP or DWP participants in employment and training services is effective
the date of commencement of the services or the date of MFIP or DWP eligibility,
whichever is later. Payment of child care assistance for transition year child care must be
made retroactive to the date of eligibility for transition year child care.

new text begin (c) Notwithstanding paragraph (b), payment of child care assistance for participants
eligible under section 119B.05, may only be made retroactive for a maximum of six
months from the date of application for child care assistance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Payment of other child care expenses. new text end

new text begin Payment, by a source other
than the family, of part or all of a family's child care expenses not payable under chapter
119B, does not affect the family's eligibility for child care assistance, and the amount
paid is excluded from the family's income, if the funds are paid directly to the family's
child care provider on behalf of the family. Child care providers who accept third-party
payments must maintain family-specific documentation of payment source, amount, type
of expenses, and time period covered by the payment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 119B.13, subdivision 6, is amended to read:

Subd. 6.

Provider payments.

(a) Counties or the state shall make vendor payments
to the child care provider or pay the parent directly for eligible child care expenses.

(b) If payments for child care assistance are made to providers, the provider shall
bill the county for services provided within ten days of the end of the service period. If
bills are submitted within ten days of the end of the service period, a county or the state
shall issue payment to the provider of child care under the child care fund within 30 days
of receiving a bill from the provider. Counties or the state may establish policies that
make payments on a more frequent basis.

(c) deleted text begin All bills deleted text end new text begin If a provider has received an authorization of care and been issued a
billing form for an eligible family, the bill new text end must be submitted within 60 days of the last
date of service on the bill. A county may pay a bill submitted more than 60 days after
the last date of service if the provider shows good cause why the bill was not submitted
within 60 days. Good cause must be defined in the county's child care fund plan under
section 119B.08, subdivision 3, and the definition of good cause must include county
error. A county may not pay any bill submitted more than a year after the last date of
service on the bill.

new text begin (d) If a provider provided care for a time period without receiving an authorization
of care and a billing form for an eligible family, payment of child care assistance may only
be made retroactively for a maximum of six months from the date the provider is issued
an authorization of care and billing form.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end A county may stop payment issued to a provider or may refuse to pay a
bill submitted by a provider if:

(1) the provider admits to intentionally giving the county materially false information
on the provider's billing forms; or

(2) a county finds by a preponderance of the evidence that the provider intentionally
gave the county materially false information on the provider's billing forms.

deleted text begin (e) deleted text end new text begin (f) new text end A county's payment policies must be included in the county's child care plan
under section 119B.08, subdivision 3. If payments are made by the state, in addition to
being in compliance with this subdivision, the payments must be made in compliance
with section 16A.124.

Sec. 5. new text begin SCHOOL READINESS SERVICE AGREEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Overview. new text end

new text begin (a) Effective July 1, 2007, funds must be made available
to allow the commissioner to enter into school readiness service agreements (SRSA's)
with up to 50 child care providers for the dual purposes of supporting:
new text end

new text begin (1) improved school readiness for children; and
new text end

new text begin (2) economic stability for parents.
new text end

new text begin (b) A provider may be paid a rate above that currently allowed under Minnesota
Statutes, section 119B.13, if:
new text end

new text begin (1) the provider has entered into an SRSA with the commissioner;
new text end

new text begin (2) a family using that provider receives child care assistance under any provision in
Minnesota Statutes, chapter 119B, except Minnesota Statutes, section 119B.035;
new text end

new text begin (3) the family using that provider meets the criteria in this section; and
new text end

new text begin (4) funding is available under this section.
new text end

new text begin Subd. 2. new text end

new text begin Provider eligibility. new text end

new text begin (a) To be considered for an SRSA, a provider shall
apply to the commissioner. To be eligible to apply for an SRSA, a provider shall:
new text end

new text begin (1) be eligible for child care assistance payments under Minnesota Statutes, chapter
119B;
new text end

new text begin (2) have at least 25 percent of the children enrolled with the provider subsidized
through the child care assistance program;
new text end

new text begin (3) provide full-time, full-year child care services; and
new text end

new text begin (4) serve at least one child who is subsidized through the child care assistance
program and who is expected to enter kindergarten within the following 30 months.
new text end

new text begin (b) The commissioner may waive the 25 percent requirement in paragraph (a), clause
(2), if necessary to achieve geographic distribution of SRSA providers and diversity of
types of care provided by SRSA providers.
new text end

new text begin (c) An eligible provider who would like to enter into an SRSA with the commissioner
shall submit an SRSA application. To determine whether to enter into an SRSA with a
provider, the commissioner shall evaluate the following factors:
new text end

new text begin (1) the qualifications of the provider and the provider's staff;
new text end

new text begin (2) the provider's staff-child ratios;
new text end

new text begin (3) the provider's curriculum;
new text end

new text begin (4) the provider's current or planned parent education activities;
new text end

new text begin (5) the provider's current or planned social service and employment linkages;
new text end

new text begin (6) the provider's child development assessment plan;
new text end

new text begin (7) the geographic distribution needed for SRSA providers;
new text end

new text begin (8) the inclusion of a variety of child care delivery models; and
new text end

new text begin (9) other related factors determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Family and child eligibility. new text end

new text begin (a) A family eligible to choose an SRSA
provider for their children shall:
new text end

new text begin (1) be eligible to receive child care assistance under any provision in Minnesota
Statutes, chapter 119B, except Minnesota Statutes, section 119B.035;
new text end

new text begin (2) be in an authorized activity for an average of at least 35 hours per week when
initial eligibility is determined; and
new text end

new text begin (3) include a child who has not yet entered kindergarten.
new text end

new text begin (b) A family who is determined to be eligible to choose an SRSA provider remains
eligible to be paid at a higher rate through the SRSA provider when the following
conditions exist:
new text end

new text begin (1) the child attends child care with the SRSA provider a minimum of 25 hours per
week, on average;
new text end

new text begin (2) the family has a child who has not yet entered kindergarten; and
new text end

new text begin (3) the family maintains eligibility under Minnesota Statutes, chapter 119B, except
Minnesota Statutes, section 119B.035.
new text end

new text begin (c) For the 12 months after initial eligibility has been determined, a decrease in
the family's authorized activities to an average of less than 35 hours per week does not
result in ineligibility for the SRSA rate.
new text end

new text begin (d) A family that moves between counties but continues to use the same SRSA
provider shall continue to receive SRSA funding for the increased payments.
new text end

new text begin Subd. 4. new text end

new text begin Requirements of providers. new text end

new text begin All SRSA's must include assessment,
evaluation, and reporting requirements that promote the goals of improved school
readiness and movement toward appropriate child development milestones. A provider
who enters into an SRSA shall comply with the assessment, evaluation, and reporting
requirements in the SRSA.
new text end

new text begin Subd. 5. new text end

new text begin Relationship to current law. new text end

new text begin The following provisions in Minnesota
Statutes, chapter 119B, must be waived or modified for families receiving services under
this section.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 119B.13, subdivisions 1 and 1a,
maximum weekly rates under this section are 125 percent of the existing maximum
weekly rate for like-care. Providers eligible for a differential rate under Minnesota
Statutes, section 119B.13, subdivision 3a, remain eligible for the differential above the
rate identified in this section. Only care for children who have not yet entered kindergarten
may be paid at the maximum rate under this section. The provider's charge for service
provided through an SRSA may not exceed the rate that the provider charges a private-pay
family for like-care arrangements.
new text end

new text begin (b) A family or child care provider may not be assessed an overpayment for care
provided through an SRSA unless:
new text end

new text begin (1) there was an error in the amount of care authorized for the family; or
new text end

new text begin (2) the family or provider did not timely report a change as required under the law.
new text end

new text begin (c) Care provided through an SRSA is authorized on a weekly basis.
new text end

new text begin (d) Funds appropriated under this section to serve families eligible under Minnesota
Statutes, section 119B.03, are not allocated through the basic sliding fee formula under
Minnesota Statutes, section 119B.03. Funds appropriated under this section are used to
offset increased costs when payments are made under SRSA's.
new text end

new text begin (e) Notwithstanding Minnesota Statutes, section 119B.09, subdivision 6, the
maximum amount of child care assistance that may be authorized for a child receiving
care through an SRSA in a two-week period is 160 hours per child.
new text end

new text begin Subd. 6. new text end

new text begin Establishment of service agreements. new text end

new text begin (a) The commissioner shall
approve SRSA's for up to 50 providers that represent diverse parts of the state and a
variety of child care delivery models. Entering into a service agreement does not guarantee
that a provider will receive payment at a higher rate for families receiving child care
assistance. A family eligible under this section shall choose a provider participating in an
SRSA in order for a higher rate to be paid. Payments through SRSA's are also limited by
the availability of SRSA funds.
new text end

new text begin (b) Nothing in this section shall be construed to limit parent choice as defined in
Minnesota Statutes, section 119B.09, subdivision 5.
new text end

new text begin (c) The commissioner may allow for startup time for some providers if failing to
do so would limit geographic diversity of SRSA providers or a variety of child care
delivery models.
new text end

ARTICLE 3

CHILDREN AND FAMILY

Section 1.

Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:

Subdivision 1.

Eligible participants.

Families eligible for child care assistance
under the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements
of section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or
other employment or training activities that are included in an approved employability
development plan under deleted text begin section deleted text end new text begin sections 256J.09 and new text end 256J.95;

(4) MFIP families who are participating in work job search, job support,
employment, or training activities as required in their employment plan, or in appeals,
hearings, assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter
256J as required in their employment plan approved according to chapter 256J;

(6) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2; and

(7) families who are participating in the transition year extension under section
119B.011, subdivision 20a.

Sec. 2.

Minnesota Statutes 2006, section 256.01, subdivision 18, is amended to read:

Subd. 18.

Immigration status verifications.

(a) Notwithstanding any waiver of
this requirement by the secretary of the United States Department of Health and Human
Services, effective July 1, 2001, the commissioner shall utilize the Systematic Alien
Verification for Entitlements (SAVE) program to conduct immigration status verifications:

(1) as required under United States Code, title 8, section 1642;

(2) for all applicants new text begin and recipients at recertification new text end for food assistance benefits,
whether under the federal food stamp program, the MFIP deleted text begin or work first program deleted text end , or the
Minnesota food assistance program;

(3) for all applicants new text begin and recipients at recertification new text end for general assistance medical
care, except assistance for an emergency medical condition, for immunization with respect
to an immunizable disease, or for testing and treatment of symptoms of a communicable
disease; and

(4) for all applicants new text begin and recipients at recertification new text end for general assistance,
Minnesota supplemental aid, MinnesotaCare, or group residential housing, when the
benefits provided by these programs would fall under the definition of "federal public
benefit" under United States Code, title 8, section 1642, if federal funds were used to
pay for all or part of the benefits.

(b) The commissioner shall comply with the reporting requirements under United
States Code, title 42, section 611a, and any federal regulation or guidance adopted under
that law.

Sec. 3.

Minnesota Statutes 2006, section 256J.02, subdivision 1, is amended to read:

Subdivision 1.

Commissioner's authority to administer block grant funds.

The
commissioner of human services is authorized to receive, administer, and expend funds
available under the TANF block grant authorized under title I of Public Law 104-193, the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 new text begin , and under
Public Law 109-171, the Deficit Reduction Act of 2005 new text end .

Sec. 4.

Minnesota Statutes 2006, section 256J.02, subdivision 4, is amended to read:

Subd. 4.

Authority to transfer.

Subject to limitations of title I of Public Law
104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,
as amended, new text begin and under Public Law 109-171, the Deficit Reduction Act of 2005, new text end the
legislature may transfer money from the TANF block grant to the child care fund under
chapter 119B, or the Title XX block grant.

Sec. 5.

Minnesota Statutes 2006, section 256J.021, is amended to read:

256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.

(a) deleted text begin Until October 1, 2006, the commissioner of human services must treat MFIP
expenditures made to or on behalf of any minor child under section 256J.02, subdivision
2, clause (1), who is a resident of this state under section 256J.12, and who is part of a
two-parent eligible household as expenditures under a separately funded state program
and report those expenditures to the federal Department of Health and Human Services as
separate state program expenditures under Code of Federal Regulations, title 45, section
263.5. deleted text end new text begin Families receiving assistance under this section shall comply with all applicable
requirements in this chapter. new text end

(b) Beginning October 1, 2006, the commissioner of human services must treat
MFIP expenditures made to or on behalf of any minor child under section 256J.02,
subdivision 2, clause (1), deleted text begin who is a resident of this state under section 256J.12, and deleted text end who is
part of a two-parent deleted text begin eligible deleted text end household, as expenditures under a separately funded state
program. deleted text begin These expenditures shall not count toward the state's maintenance of effort
(MOE) requirements under the federal Temporary Assistance to Needy Families (TANF)
program except if counting certain families would allow the commissioner to avoid a
federal penalty. Families receiving assistance under this section must comply with all
applicable requirements in this chapter.
deleted text end

new text begin (c) Beginning October 1, 2007, the commissioner of human services shall treat
MFIP expenditures made to or on behalf of any minor child under section 256J.02,
subdivision 2, clause (1), who is part of a household that meets criteria in clauses (1) to (4)
as expenditures under a separately funded state program:
new text end

new text begin (1) single eligible caregiver households when the adult is a refugee or asylee as
defined in Code of Federal Regulations, title 45, chapter IV, section 400.43, and the refugee
or asylee arrived in the United States in the 12 months prior to the date of application for
MFIP. These households will remain in the separately funded state program for six months
or until the caregiver has been in the United States for 12 months, whichever comes first;
new text end

new text begin (2) single eligible caregiver cases with an approved hardship extension under section
256J.425, subdivision 2;
new text end

new text begin (3) single eligible caregiver cases with an approved hardship extension under section
256J.425, subdivision 3; and
new text end

new text begin (4) single eligible caregiver cases with an approved hardship extension under section
256J.425, subdivision 4, clause (3).
new text end

new text begin (d) Beginning March 1, 2008, the commissioner of human services shall treat MFIP
expenditures made to or on behalf of any minor child under section 256J.02, subdivision
2, clause (1), who is part of a single eligible caregiver household that meets the criteria in
section 256J.32, subdivision 6, clause (6), as expenditures under a separately funded state
program. A household is no longer part of the separately funded program if the household
no longer meets the criteria in section 256J.32, subdivision 6, clause (6), item (iv), or
if it is determined at recertification that:
new text end

new text begin (1) a single eligible caregiver with a child under the age of six is working at least 87
hours per month in paid or unpaid employment; or
new text end

new text begin (2) a single eligible caregiver without a child under the age of six is working at least
130 hours per month in paid or unpaid employment.
new text end

new text begin (e) The expenditures in paragraphs (b) to (d) do not count toward the state's MOE
requirements under the federal TANF program.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256J.09, subdivision 3b, is amended to read:

Subd. 3b.

Interview to determine referrals and services.

If the applicant is
not diverted from applying for MFIP, and if the applicant meets the MFIP eligibility
requirements, then a county agency must:

(1) identify an applicant who is under the age of 20 without a high school diploma or
its equivalent and explain to the applicant the assessment procedures and employment
plan requirements under section 256J.54;

(2) explain to the applicant the eligibility criteria in section 256J.545 for the family
violence waiver, and what an applicant should do to develop an employment plan;

(3) explain that the activities and hourly requirements of the employment plan may
be adjusted to accommodate the personal and family circumstances of applicants who
meet the criteria in section 256J.561, subdivision 2, paragraph (d), new text begin and new text end explain how a
person should report to the county agency any status changes deleted text begin , and explain that an applicant
who is not required to participate in employment services under section 256J.561 may
volunteer to participate in employment and training services deleted text end ;

(4) deleted text begin for applicants who are not exempt from the requirement to attend orientation, deleted text end
arrange for an orientation under section 256J.45 and an assessment under section 256J.521;

(5) inform an applicant deleted text begin who is not exempt from the requirement to attend orientation deleted text end
that failure to attend the orientation is considered an occurrence of noncompliance with
program requirements and will result in an imposition of a sanction under section 256J.46;
deleted text begin and deleted text end

(6) explain how to contact the county agency if an applicant has questions about
compliance with program requirements deleted text begin . deleted text end new text begin ;
new text end

new text begin (7) explain that before MFIP benefits can be issued to a family unit, the caregiver
shall, in conjunction with a job counselor, develop and sign an employment plan. In
two-parent family units, both parents shall develop and sign employment plans before
benefits can be issued. Food support and health care benefits are not contingent on the
requirement for a signed employment plan; and
new text end

new text begin (8) if child care is needed, the county agency shall obtain a completed application
for child care from the applicant before the interview is terminated. The same day the
application for child care is received, the application must be forwarded to the appropriate
child care worker.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 256J.09, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Employment plan; MFIP benefits. new text end

new text begin As soon as possible, but no later
than ten working days after being notified that a participant is financially eligible for
the MFIP program, the employment services provider shall provide the participant
with an opportunity to meet to develop an initial employment plan. Once the initial
employment plan has been developed and signed by the participant and the job counselor,
the employment services provider shall notify the county within one working day that
the employment plan has been signed. The county shall issue MFIP benefits within one
working day after receiving notice that the employment plan has been signed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 8.

Minnesota Statutes 2006, section 256J.09, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Immediate referral to employment services. new text end

new text begin Within one working day
of determination that the applicant is eligible for the MFIP program, but before benefits
are issued to or on behalf of the family unit, the county shall refer all caregivers to
employment services. The referral to employment services must be in writing and must
contain the following information:
new text end

new text begin (1) notification that, as part of the application process, applicants are required to
develop an employment plan or the MFIP application will be denied;
new text end

new text begin (2) the employment services provider name and phone number;
new text end

new text begin (3) the immediate availability of supportive services including, but not limited to,
child care, transportation, and other work-related aid; and
new text end

new text begin (4) the rights, responsibilities, and obligations of participants in the program
including, but not limited to, the grounds for good cause, the consequences of refusing or
failing to participate fully with program requirements, and the appeal process.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 256J.32, subdivision 6, is amended to read:

Subd. 6.

Recertification.

The county agency shall recertify eligibility in an annual
face-to-face interview with the participant and verify the following:

(1) presence of the minor child in the home, if questionable;

(2) income, unless excluded, including self-employment expenses used as a
deduction or deposits or withdrawals from business accounts;

(3) assets when the value is within $200 of the asset limit;

(4) information to establish an exception under section 256J.24, subdivision 9,
if questionable; deleted text begin and deleted text end

(5) inconsistent information, if related to eligibility deleted text begin . deleted text end new text begin ;
new text end

new text begin (6) beginning March 1, 2008, whether a single eligible caregiver household meets
requirements in items (i) to (iv) for inclusion in a separately funded state program under
section 256J.021, paragraph (d):
new text end

new text begin (i) the assistance unit has used 24 or more months of MFIP assistance at
recertification under this section;
new text end

new text begin (ii) the caregiver is not employed;
new text end

new text begin (iii) the caregiver is not meeting participation requirements under section 256J.55,
subdivision 1, paragraph (d), clauses (1) and (2); and
new text end

new text begin (iv) the caregiver meets at least one of the following criteria:
new text end

new text begin (A) a qualified professional has determined the caregiver is unable to obtain or retain
employment due to an illness, injury, or incapacity that is expected to last at least 60 days;
new text end

new text begin (B) a qualified professional has certified that the caregiver is required in the home to
provide care for a family member, a relative in the household, or a foster child with an
illness, injury, or incapacity that is expected to continue more than 60 days;
new text end

new text begin (C) a qualified professional has determined that the caregiver is needed in the home
to care for a child or adult meeting the special medical criteria in section 256J.561,
subdivision 2, paragraph (d), clause (3);
new text end

new text begin (D) a qualified professional has determined that the caregiver is pregnant and unable
to obtain or retain employment for at least 60 days due to the pregnancy;
new text end

new text begin (E) the caregiver has a documented disability and has applied for supplemental
security income or Social Security disability insurance and a determination is pending; and
new text end

new text begin (F) the caregiver qualifies for a family violence waiver under section 256J.545.
new text end

Sec. 10.

Minnesota Statutes 2006, section 256J.42, subdivision 1, is amended to read:

Subdivision 1.

Time limit.

(a) Except as otherwise provided for in this section, an
assistance unit in which any adult caregiver has received 60 months of cash assistance
funded in whole or in part by the TANF block grant in this or any other state or
United States territory, or from a tribal TANF program, MFIP, the AFDC program
formerly codified in sections 256.72 to 256.87, or the family general assistance program
formerly codified in sections 256D.01 to 256D.23, funded in whole or in part by state
appropriations, is ineligible to receive MFIP. Any cash assistance funded with TANF
dollars in this or any other state or United States territory, or from a tribal TANF program,
or MFIP assistance funded in whole or in part by state appropriations, that was received
by the unit on or after the date TANF was implemented, including any assistance received
in states or United States territories of prior residence, counts toward the 60-month
limitation. new text begin Months during which any cash assistance is received by an assistance unit
with a mandatory member who is disqualified for wrongfully obtaining public assistance
under section 256.98, subdivision 8, counts toward the time limit for the disqualified
member. new text end The 60-month limit applies to a minor caregiver except under subdivision 5. The
60-month time period does not need to be consecutive months for this provision to apply.

(b) The months before July 1998 in which individuals received assistance as part of
the field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are
not included in the 60-month time limit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 256J.42, subdivision 6, is amended to read:

Subd. 6.

Case review.

(a) Within 180 days, but not less than 60 days, before the end
of the participant's 60th month on assistance, the county agency or job counselor must
review the participant's case to determine if the employment plan is still appropriate deleted text begin or if
the participant is exempt under section 256J.56 from the employment and training services
component, deleted text end and attempt to meet with the participant face-to-face. new text begin Beginning March 1,
2008, for single caregiver households included in the separately funded nonmaintenance of
effort state program under section 256J.021, paragraph (c), clauses (2) to (4), the purpose
of the case review is to confirm criteria under section 256J.32, subdivision 6, clause (6).
new text end

(b) During the face-to-face meeting, a county agency or the job counselor must:

(1) inform the participant how many months of counted assistance the participant
has accrued and when the participant is expected to reach the 60th month;

(2) explain the hardship extension criteria under section 256J.425 and what the
participant should do if the participant thinks a hardship extension applies;

(3) identify other resources that may be available to the participant to meet the
needs of the family; and

(4) inform the participant of the right to appeal the case closure under section
256J.40.

(c) If a face-to-face meeting is not possible, the county agency must send the
participant a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5.

(d) Before a participant's case is closed under this section, the county must ensure
that:

(1) the case has been reviewed by the job counselor's supervisor or the review team
designated by the county to determine if the criteria for a hardship extension, if requested,
were applied appropriately; and

(2) the county agency or the job counselor attempted to meet with the participant
face-to-face.

Sec. 12.

Minnesota Statutes 2006, section 256J.425, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Simplified sanctions for extended cases. new text end

new text begin (a) Beginning July 1, 2008, if
one or both participants in an assistance unit receiving assistance under this section are
not in compliance with the requirements in sections 256J.45 or 256J.515 to 256J.57, the
following sanctions apply:
new text end

new text begin (1) for a first occurrence of noncompliance, an assistance unit is sanctioned under
section 256J.46, subdivision 3, paragraph (d);
new text end

new text begin (2) for a second or third occurrence of noncompliance, the assistance unit is
sanctioned under section 256J.46, subdivision 3, paragraph (e); and
new text end

new text begin (3) for a fourth occurrence of noncompliance, the assistance unit is disqualified
from MFIP.
new text end

new text begin If a participant is determined to be out of compliance, the participant may claim a good
cause exception under section 256J.57.
new text end

new text begin (b) If both participants in a two-parent assistance unit are out of compliance at the
same time, it is considered one occurrence of noncompliance.
new text end

new text begin (c) If a two-parent assistance unit is extended under subdivision 3 or 4, and a parent
who has not reached the 60-month time limit is out of compliance with the requirements
in sections 256J.45 or 256J.515 to 256J.57 when the case is extended, the sanction in the
61st month is considered the first sanction for the purposes of applying the sanctions in
this subdivision, except that the sanction amount is reduced by 30 percent.
new text end

new text begin (d) If one or both participants in an assistance unit receiving assistance under this
section refuses to cooperate, as determined by the child support agency, with support
requirements under section 256.741, the following sanctions apply:
new text end

new text begin (1) for a first occurrence of noncooperation, the assistance unit's grant is reduced
by 30 percent of the applicable MFIP standard of need;
new text end

new text begin (2) for a second or third occurrence of noncompliance, the assistance unit is
sanctioned under section 256J.46, subdivision 3, paragraph (e); and
new text end

new text begin (3) for a fourth occurrence of noncompliance, the assistance unit is disqualified
from MFIP.
new text end

new text begin (e) A participant subject to a sanction for refusal to comply with child support
requirements and subject to a concurrent employment services sanction is subject to
sanctions under paragraphs (f) to (i).
new text end

new text begin (f) If the participant was sanctioned for:
new text end

new text begin (1) noncompliance under paragraph (a) before being subject to sanction for
noncooperation under paragraph (d); or
new text end

new text begin (2) noncooperation under paragraph (d) before being subject to sanction for
noncompliance under paragraph (a), the participant is considered to have second
occurrence of noncompliance and shall be sanctioned under section 256J.46, subdivision
3, paragraph (e). Each subsequent occurrence of noncompliance is considered one
additional occurrence and is subject to the applicable level of sanction under section
256J.46, subdivision 3.
new text end

new text begin (g) A participant who first becomes subject to sanction under both paragraphs (a)
and (d) in the same month is subject to sanction as follows:
new text end

new text begin (1) in the first month of noncompliance and noncooperation, the participant's grant
is reduced by 30 percent of the applicable MFIP standard of need, with any residual
amount paid to the participant;
new text end

new text begin (2) in the second or third month of noncompliance and noncooperation, the
participant is subject to the sanction under section 256J.46, subdivision 3, paragraph
(e); and
new text end

new text begin (3) on the fourth month of noncompliance and noncooperation, the participant is
disqualified.
new text end

new text begin (h) A participant remains subject to sanction under paragraph (d) if the participant:
new text end

new text begin (1) returns to compliance and is no longer subject to sanction for noncompliance
with section 256J.45 or sections 256J.515 to 256J.57; or
new text end

new text begin (2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to
256J.57 removed upon completion of the review under section 256J.46, subdivision 3,
paragraph (f).
new text end

new text begin (i) A participant remains subject to sanction under paragraph (a) if the participant
cooperates and is no longer subject to sanction under paragraph (d).
new text end

Sec. 13.

Minnesota Statutes 2006, section 256J.425, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Status of disqualified participants under simplified sanctions.
new text end

new text begin (a) Beginning July 1, 2008, an assistance unit that is disqualified under subdivision
9, paragraph (a), may be approved for MFIP if the participant complies with MFIP
requirements and demonstrates compliance for up to one month. No assistance shall be
paid during this period.
new text end

new text begin (b) An assistance unit that is disqualified under subdivision 9 and that reapplies
under paragraph (a) is subject to sanction under section 256J.46, subdivision 3, paragraph
(e), for a first occurrence of noncompliance. A subsequent occurrence of noncompliance
results in a permanent disqualification.
new text end

new text begin (c) If one participant in a two-parent assistance unit receiving assistance under a
hardship extension under subdivision 3 or 4 is determined to be out of compliance with
MFIP requirements, the county shall give the assistance unit the option of disqualifying
the noncompliant participant from MFIP. In that case, the assistance unit is treated
as a one-parent assistance unit for the purposes of meeting the work requirements
under subdivision 4, and the assistance unit's MFIP grant is calculated using the shared
household standard under section 256J.08, subdivision 82a. An applicant who is
disqualified from receiving assistance under this paragraph may reapply under paragraph
(a). If a participant is disqualified from MFIP under this subdivision a second time, the
participant is permanently disqualified from MFIP.
new text end

new text begin (d) Prior to a disqualification under this subdivision, a county agency must review
the participant's case to determine if the employment plan is still appropriate and attempt
to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the
county agency shall send the participant a notice of adverse action as provided in section
256J.31. During the face-to-face meeting, the county agency shall:
new text end

new text begin (1) determine whether the continued noncompliance can be explained and mitigated
by providing a needed preemployment activity, as defined in section 256J.49, subdivision
13, clause (9);
new text end

new text begin (2) determine whether the participant qualifies for a good cause exception under
section 256J.57;
new text end

new text begin (3) inform the participant of the family violence waiver criteria and make appropriate
referrals if the waiver is requested;
new text end

new text begin (4) inform the participant of the participant's sanction status and explain the
consequences of continuing noncompliance;
new text end

new text begin (5) identify other resources that may be available to the participant to meet the
needs of the family; and
new text end

new text begin (6) inform the participant of the right to appeal under section 256J.40.
new text end

Sec. 14.

Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Simplified sanctions. new text end

new text begin (a) Beginning July 1, 2008, a participant who fails
without good cause under section 256J.57 to comply with the requirements of this chapter,
and who is not subject to a sanction under subdivision 4, is subject to a sanction under this
subdivision. Prior to the imposition of a sanction, a county agency shall provide a notice
of intent to sanction under section 256J.57, subdivision 2, and, when applicable, a notice
of adverse action under section 256J.31.
new text end

new text begin (b) A sanction under this subdivision becomes effective the month following the
month in which a required notice is given. A sanction is not imposed when a participant
comes into compliance with the requirements for orientation under section 256J.45 prior to
the effective date of the sanction. A sanction is not imposed when a participant comes into
compliance with the requirements for employment and training services under sections
256J.515 to 256J.57 ten days prior to the effective date of the sanction. For purposes of
this subdivision, each month that a participant fails to comply with a requirement of
this chapter is considered a separate occurrence of noncompliance. If both participants
in a two-parent assistance unit are out of compliance at the same time, it is considered
one occurrence of noncompliance.
new text end

new text begin (c) Sanctions for noncompliance are imposed as prescribed by paragraphs (d) and (e).
new text end

new text begin (d) For the first occurrence of noncompliance by a participant in an assistance
unit, the assistance unit's grant is reduced by ten percent of the MFIP standard of need
for an assistance unit of the same size with the residual grant paid to the participant.
The reduction in the grant amount must be in effect for a minimum of one month and is
removed in the month following the month that the participant returns to compliance.
new text end

new text begin (e) For a second or third occurrence of noncompliance by a participant in an
assistance unit, the assistance unit's shelter costs must be vendor paid up to the amount
of the cash portion of the MFIP grant for which the assistance unit is eligible. At county
option, the assistance unit's utilities may also be vendor paid up to the amount of the
cash portion of the MFIP grant remaining after vendor payment of the assistance unit's
shelter costs. The residual amount of the grant after vendor payment, if any, is reduced
by an amount equal to 30 percent of the MFIP standard of need for an assistance unit of
the same size before the residual grant is paid to the assistance unit. The reduction in
the grant amount must be in effect for a minimum of one month and is removed in the
month following the month that the participant in a one-parent assistance unit returns to
compliance. In a two-parent assistance unit, the grant reduction must be in effect for a
minimum of one month and is removed in the month following the month both participants
return to compliance. The vendor payment of shelter costs and utilities must be removed
six months after the month in which the participant or participants return to compliance. If
an assistance unit is sanctioned under this paragraph, the participant's case file must be
reviewed to determine if the employment plan is still appropriate.
new text end

new text begin (f) For a fourth occurrence of noncompliance by a participant in an assistance unit,
or when the participants in a two-parent assistance unit have a total of four occurrences
of noncompliance, the county agency shall close the MFIP assistance unit's financial
assistance case, including both the cash and food portions, and redetermine the family's
continued eligibility for food support payments. The MFIP case must remain closed
for a minimum of one full month. Before the case is closed, the county agency shall
review the participant's case to determine if the employment plan is still appropriate and
attempt to meet with the participant face-to-face. The participant may bring an advocate to
the face-to-face meeting. If a face-to-face meeting is not conducted, the county agency
shall send the participant a written notice that includes the information required under
paragraph (g).
new text end

new text begin (g) During the face-to-face meeting in paragraph (f), the county agency must:
new text end

new text begin (1) determine whether the continued noncompliance can be explained and mitigated
by providing a needed preemployment activity, as defined in section 256J.49, subdivision
13, clause (9);
new text end

new text begin (2) determine whether the participant qualifies for a good cause exception under
section 256J.57, or if the sanction is for noncooperation with child support requirements,
determine if the participant qualifies for a good cause exemption under section 256.741,
subdivision 10;
new text end

new text begin (3) determine whether the work activities in the employment plan are appropriate
based on the criteria in section 256J.521, subdivision 2 or 3;
new text end

new text begin (4) determine whether the participant qualifies for the family violence waiver;
new text end

new text begin (5) inform the participant of the participant's sanction status and explain the
consequences of continuing noncompliance;
new text end

new text begin (6) identify other resources that may be available to the participant to meet the
needs of the family; and
new text end

new text begin (7) inform the participant of the right to appeal under section 256J.40.
new text end

new text begin If the lack of an identified activity or service can explain the noncompliance, the
county must work with the participant to provide the identified activity.
new text end

new text begin The grant must be restored to the full amount for which the assistance unit is eligible
retroactively to the first day of the month in which the participant was found to lack
preemployment activities, a family violence waiver, or for a good cause exemption under
section 256.741, subdivision 10, or 256J.57.
new text end

new text begin (h) For the purpose of applying sanctions under this subdivision, only occurrences of
noncompliance that occur after July 1, 2008, are considered. If the participant is in 30
percent sanction in the month this section takes effect, that month counts as the first
occurrence for purposes of applying the sanctions under this section, but the sanction
must remain at 30 percent for that month.
new text end

new text begin (i) An assistance unit whose case is closed under paragraph (f) or (j), may reapply
for MFIP and is eligible if the participant complies with MFIP program requirements and
demonstrates compliance for up to one month. No assistance is paid during this period.
new text end

new text begin (j) An assistance unit whose case has been closed for noncompliance that reapplies
under paragraph (i) is subject to sanction under paragraph (e) for a first occurrence of
noncompliance. Any subsequent occurrence of noncompliance results in case closure
under paragraph (f).
new text end

Sec. 15.

Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Simplified sanctions for refusal to cooperate with support
requirements. new text end

new text begin Beginning July 1, 2008, an MFIP caregiver who refuses to cooperate, as
determined by the child support enforcement agency, with support requirements under
section 256.741, is subject to sanction under this subdivision and subdivision 1. For a first
occurrence of noncooperation, the assistance unit's grant must be reduced by 30 percent of
the applicable MFIP standard of need. Subsequent occurrences of noncooperation must be
subject to sanction under subdivision 3, paragraphs (e) and (f). The residual amount of the
grant, if any, is paid to the caregiver. A sanction under this subdivision becomes effective
the first month following the month in which a required notice is given. A sanction is not
imposed when a caregiver comes into compliance with the requirements under section
256.741 prior to the effective date of the sanction. The sanction is removed in the month
following the month that the caregiver cooperates with the support requirements. Each
month that an MFIP caregiver fails to comply with the requirements of section 256.741 is
considered a separate occurrence of noncompliance for the purpose of applying sanctions
under subdivision 3, paragraphs (e) and (f).
new text end

Sec. 16.

Minnesota Statutes 2006, section 256J.46, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Simplified dual sanctions. new text end

new text begin (a) Beginning July 1, 2008, notwithstanding
the provisions of subdivisions 3 and 4, for a participant subject to a sanction for refusal to
comply with child support requirements under subdivision 4 and subject to a concurrent
sanction for refusal to cooperate with other program requirements under subdivision 3,
sanctions must be imposed in the manner prescribed in this subdivision. Any vendor
payment of shelter costs or utilities under this subdivision must remain in effect for six
months after the month in which the participant is no longer subject to sanction under
subdivision 3.
new text end

new text begin (b) If the participant was subject to sanction for:
new text end

new text begin (1) noncompliance under subdivision 3 before being subject to sanction for
noncooperation under subdivision 4; or
new text end

new text begin (2) noncooperation under subdivision 4 before being subject to sanction for
noncompliance under subdivision 3,
new text end

new text begin the participant is considered to have a second occurrence of noncompliance and is
sanctioned as provided in subdivision 3, paragraph (e). Each subsequent occurrence of
noncompliance is considered one additional occurrence and is subject to the applicable
level of sanction under subdivision 3. The requirement that the county conduct a review
as specified in subdivision 3, paragraph (f), remains in effect.
new text end

new text begin (c) A participant who first becomes subject to sanction under both subdivisions 3
and 4 in the same month is subject to sanction as follows:
new text end

new text begin (1) in the first month of noncompliance and noncooperation, the participant's grant
must be reduced by 30 percent of the applicable MFIP standard of need, with any residual
amount paid to the participant;
new text end

new text begin (2) in the second and subsequent months of noncompliance and noncooperation,
the participant is subject to the applicable level of sanction under subdivision 3. The
requirement that the county conduct a review as specified in subdivision 3, paragraph
(f), remains in effect.
new text end

new text begin (d) A participant remains subject to sanction under subdivision 4 if the participant:
new text end

new text begin (1) returns to compliance and is no longer subject to sanction for noncompliance
with section 256J.45 or sections 256J.515 to 256J.57; or
new text end

new text begin (2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to
256J.57 removed upon completion of the review under subdivision 3, paragraph (f).
new text end

new text begin (e) A participant remains subject to the applicable level of sanction under subdivision
3 if the participant cooperates and is no longer subject to sanction under subdivision 4.
new text end

Sec. 17.

Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:

Subd. 13.

Work activity.

"Work activity" means any activity in a participant's
approved employment plan that leads to employment. For purposes of the MFIP program,
this includes activities that meet the definition of work activity under the participation
requirements of TANF. Work activity includes:

(1) unsubsidized employment, including work study and paid apprenticeships or
internships;

(2) subsidized private sector or public sector employment, including grant diversion
as specified in section 256J.69, on-the-job training as specified in section 256J.66,
deleted text begin the self-employment investment demonstration program (SEID) as specified in section
256J.65, deleted text end paid work experience, and supported work when a wage subsidy is provided;

(3) unpaid work experience, including community service, volunteer work, the
community new text begin service new text end work experience program as specified in section ,
unpaid apprenticeships or internships, and supported work when a wage subsidy is not
provided;

(4) job search including job readiness assistance, job clubs, job placement,
job-related counseling, and job retention services;

(5) job readiness education, including English as a second language (ESL) or
functional work literacy classes as limited by the provisions of section 256J.531,
subdivision 2, general educational development (GED) course work, high school
completion, and adult basic education as limited by the provisions of section 256J.531,
subdivision 1;

(6) job skills training directly related to employment, including education and
training that can reasonably be expected to lead to employment, as limited by the
provisions of section 256J.53;

(7) providing child care services to a participant who is working in a community
service program;

(8) activities included in the employment plan that is developed under section
256J.521, subdivision 3; and

(9) preemployment activities including chemical and mental health assessments,
treatment, and services; learning disabilities services; child protective services; family
stabilization services; or other programs designed to enhance employability.

Sec. 18.

Minnesota Statutes 2006, section 256J.50, subdivision 1, is amended to read:

Subdivision 1.

Employment and training services component of MFIP.

(a) Each
county must develop and provide an employment and training services component which
is designed to put participants on the most direct path to unsubsidized employment.
Participation in these services is mandatory for all MFIP caregivers deleted text begin , unless the caregiver
is exempt under section 256J.56 deleted text end .

(b) new text begin Effective July 1, 2008, new text end a county must provide employment and training services
under sections 256J.515 to 256J.74 within deleted text begin 30 deleted text end new text begin ten new text end days after the caregiver is determined
eligible for MFIP, or within ten days when the caregiver participated in the diversionary
work program under section 256J.95 within the past 12 months.

Sec. 19.

Minnesota Statutes 2006, section 256J.521, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Employment plan; nonmaintenance of effort; single caregivers. new text end

new text begin (a)
When a single caregiver is moved to the nonmaintenance of effort state-funded program
under section 256J.021, paragraphs (c) and (d), the single caregiver shall develop or revise
the employment plan as specified in this subdivision with a job counselor or county. The
plan must address issues interfering with employment, including physical and mental
health, substance use, and social service issues of the caregiver and their family. Job
search and employment must also be included in the plan to the extent possible.
new text end

new text begin (b) Counties must coordinate services by ensuring that all workers involved with
the family communicate on a regular basis, and that expectations for the family across
service areas lead to common goals.
new text end

new text begin (c) Activities and hourly requirements in the employment plan may be adjusted as
necessary to accommodate the personal and family circumstances of the participant.
Participants who no longer meet the criteria for the nonmaintenance of effort state-funded
program shall meet with the job counselor or county within ten days of the determination
to revise the employment plan.
new text end

Sec. 20.

Minnesota Statutes 2006, section 256J.531, is amended to read:

256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.

Subdivision 1.

Approval of adult basic education.

With the exception of classes
related to obtaining a general educational development credential (GED), a participant
must have reading or mathematics proficiency below a ninth grade level in order for adult
basic education classes to be an approved work activity. deleted text begin The employment plan must also
specify that the participant fulfill no more than one-half of the participation requirements
in section 256J.55, subdivision 1, through attending adult basic education or general
educational development classes. deleted text end

Subd. 2.

Approval of English as a second language.

In order for English as a
second language (ESL) classes to be an approved work activity in an employment plan, a
participant must be below a spoken language proficiency level of SPL6 or its equivalent,
as measured by a nationally recognized test. In approving ESL as a work activity, the job
counselor must give preference to enrollment in a functional work literacy program,
if one is available, over a regular ESL program. A participant may not be approved
for more than a combined total of 24 months of ESL classes while participating in the
diversionary work program and the employment and training services component of
MFIP. deleted text begin The employment plan must also specify that the participant fulfill no more than
one-half of the participation requirements in section 256J.55, subdivision 1, through
attending ESL classes. For participants enrolled in functional work literacy classes, no
more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
may be met through attending functional work literacy classes.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2007.
new text end

Sec. 21.

Minnesota Statutes 2006, section 256J.626, subdivision 7, is amended to read:

Subd. 7.

Performance base funds.

(a) Beginning calendar year 2005, each county
and tribe will be allocated 95 percent of their initial calendar year allocation. Counties and
tribes will be allocated additional funds based on performance as follows:

deleted text begin (1) for calendar year 2005, a county or tribe that achieves a 30 percent rate or higher
on the MFIP participation rate under section deleted text begin 256J.751, subdivision 2 deleted text end , clause (8), as
averaged across the four quarterly measurements for the most recent year for which the
measurements are available, will receive an additional allocation equal to 2.5 percent of
its initial allocation; and
deleted text end

deleted text begin (2) for calendar year 2006, a county or tribe that achieves a 40 percent rate or a
five percentage point improvement over the previous year's MFIP participation rate
under section deleted text begin 256J.751, subdivision 2 deleted text end , clause (8), as averaged across the four quarterly
measurements for the most recent year for which the measurements are available, will
receive an additional allocation equal to 2.5 percent of its initial allocation; and
deleted text end

deleted text begin (3) for calendar year 2007, a county or tribe that achieves a 50 percent rate or a
five percentage point improvement over the previous year's MFIP participation rate
under section deleted text begin 256J.751, subdivision 2 deleted text end , clause (8), as averaged across the four quarterly
measurements for the most recent year for which the measurements are available, will
receive an additional allocation equal to 2.5 percent of its initial allocation; and
deleted text end

deleted text begin (4) deleted text end new text begin (1) for calendar year 2008, a county or tribe that achieves a 50 percent MFIP work
participation rate as specified in the Personal Responsibility and Work Responsibility Act,
Public Law 104-193, applied to all MFIP cases except child-only cases, as averaged across
the four quarterly measurements for the most recent year for which the measurements are
available, must receive an additional allocation equal to 2.5 percent of its initial allocation; new text end

new text begin (2) new text end for calendar year deleted text begin 2008 deleted text end new text begin 2009 new text end and yearly thereafter, a county or tribe that achieves
a 50 percent deleted text begin MFIP deleted text end new text begin TANF work new text end participation rate under section 256J.751, subdivision 2,
clause deleted text begin (8) deleted text end new text begin (7) new text end , as averaged across the four quarterly measurements for the most recent year
for which the measurements are available, will receive an additional allocation equal
to 2.5 percent of its initial allocation; and

deleted text begin (5) deleted text end new text begin (3) new text end for calendar years 2005 and thereafter, a county or tribe that performs above
the top of its annualized range of expected performance on the three-year self-support
index under section 256J.751, subdivision 2, clause deleted text begin (7) deleted text end new text begin (6) new text end , will receive an additional
allocation equal to five percent of its initial allocation; or

deleted text begin (6) deleted text end new text begin (4) new text end for calendar years 2005 and thereafter, a county or tribe that performs within
its range of expected performance on the annualized three-year self-support index under
section 256J.751, subdivision 2, clause deleted text begin (7) deleted text end new text begin (6) new text end , will receive an additional allocation equal
to 2.5 percent of its initial allocation.

(b) Performance-based funds for a federally approved tribal TANF program in which
the state and tribe have in place a contract under section 256.01, addressing consolidated
funding, will be allocated as follows:

(1) for calendar year 2006 and yearly thereafter, a tribe that achieves the participation
rate approved in its federal TANF plan using the average of four quarterly measurements
for the most recent year for which the measurements are available, will receive an
additional allocation equal to 2.5 percent of its initial allocation; and

(2) for calendar years 2006 and thereafter, a tribe that performs above the top of its
annualized range of expected performance on the three-year self-support index under
section 256J.751, subdivision 2, clause deleted text begin (7) deleted text end new text begin (6) new text end , will receive an additional allocation equal
to five percent of its initial allocation; or

(3) for calendar years 2006 and thereafter, a tribe that performs within its range
of expected performance on the annualized three-year self-support index under section
256J.751, subdivision 2, clause deleted text begin (7) deleted text end new text begin (6) new text end , will receive an additional allocation equal to 2.5
percent of its initial allocation.

(c) Funds remaining unallocated after the performance-based allocations in
paragraph (a) are available to the commissioner for innovation projects under subdivision
5.

(d)(1) If available funds are insufficient to meet county and tribal allocations
under paragraph (a), the commissioner may make available for allocation funds that are
unobligated and available from the innovation projects through the end of the current
biennium.

(2) If after the application of clause (1) funds remain insufficient to meet county and
tribal allocations under paragraph (a), the commissioner must proportionally reduce the
allocation of each county and tribe with respect to their maximum allocation available
under paragraph (a).

Sec. 22.

Minnesota Statutes 2006, section 256J.626, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Specialized employment. new text end

new text begin Beginning July 1, 2007, the commissioner
shall make funds available annually to counties and tribes to develop paid and unpaid
work experience positions for MFIP participants with no recent work history. The
commissioner shall develop a process for approving requests and allocating funding in
consultation with the counties and tribes.
new text end

Sec. 23.

new text begin [256J.675] COMMUNITY SERVICE WORK EXPERIENCE.
new text end

new text begin Subdivision 1. new text end

new text begin Employment options. new text end

new text begin Community service work experience
positions developed under this section are limited to projects that serve a useful public
service such as health care, social service, environmental protection, education, urban and
rural development and redevelopment, welfare, recreation, public facilities, public safety,
community service, services to aged or disabled citizens, and child care. To the extent
possible, the prior training, skills, and experience of a participant must be considered in
making appropriate work experience assignments.
new text end

new text begin Subd. 2. new text end

new text begin Placing participants in community service work experience. new text end

new text begin As a
condition of placing a participant in a program under this section, the county agency
shall ensure that:
new text end

new text begin (1) a participant is first given the opportunity for placement in suitable unsubsidized
employment through participation in job search, or through participation in on-the-job
training if such employment is available;
new text end

new text begin (2) after three months of participation in a community service work experience
placement, and at the conclusion of each community service work experience assignment
under this section, the participant's employment plan is revised as appropriate;
new text end

new text begin (3) the maximum number of hours any participant works under this section does not
exceed the amount of the MFIP grant, cash and food support, divided by the federal or
applicable state minimum wage, whichever is higher; and
new text end

new text begin (4) a participant does not continue in a community work experience placement
for more than nine months unless the maximum number of hours worked is no greater
than the amount of the MFIP grant, cash and food support, divided by the rate of pay
for individuals employed in the same or similar occupations by the same employer at
the same site. This limit does not apply if it would prevent a participant from counting
toward the federal work participation rate.
new text end

Sec. 24.

new text begin [256J.678] INJURY PROTECTION FOR COMMUNITY SERVICE
WORK EXPERIENCE PARTICIPANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The Department of Administration, in consultation with
the Department of Human Services, shall contract with an approved insurance carrier to
provide coverage for injuries or death resulting from a person's participation in paid and
unpaid community work experience programs authorized by the commissioner for persons
applying for or receiving DWP, MFIP, or food stamps, and participating in the Minnesota
parent's fair share program and the community service program under section 518.551,
subdivision 5a, in a county with an approved community investment program for obligors.
new text end

new text begin Subd. 2. new text end

new text begin Claims. new text end

new text begin Claims that are subject to this section must be reported to the
insurance carrier in a format approved by the carrier by the department of the state, county
agency, or tribal program responsible for supervising the work.
new text end

new text begin Subd. 3. new text end

new text begin Exclusive procedure. new text end

new text begin The procedure established by this section
is exclusive of all other legal, equitable, and statutory remedies against the state,
employees of the state, or the state's political subdivisions. The claimant is not entitled
to seek damages from any other state, county, tribal, or reservation insurance policy or
self-insurance program.
new text end

new text begin Subd. 4. new text end

new text begin Requirements for worksites. new text end

new text begin The department of the state, county agency,
or tribal program responsible for supervising the work shall ensure that no participant is
assigned to a worksite which is in violation of federal Occupational Safety and Health
Administration and state Department of Labor and Industry safety standards or is under
investigation to determine if those violations have occurred. All participants must be
given the same safety information and training given to a paid employee performing
similar work at that worksite.
new text end

Sec. 25.

Minnesota Statutes 2006, section 256J.751, subdivision 2, is amended to read:

Subd. 2.

Quarterly comparison report.

The commissioner shall report quarterly to
all counties on each county's performance on the following measures:

(1) percent of MFIP caseload working in paid employment;

(2) percent of MFIP caseload receiving only the food portion of assistance;

(3) number of MFIP cases that have left assistance;

(4) median placement wage rate;

(5) caseload by months of TANF assistance;

(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance
or working 30 or more hours per week at one-year, two-year, and three-year follow-up
points from a baseline quarter. This measure is called the self-support index. The
commissioner shall report quarterly an expected range of performance for each county,
county grouping, and tribe on the self-support index. The expected range shall be derived
by a statistical methodology developed by the commissioner in consultation with the
counties and tribes. The statistical methodology shall control differences across counties
in economic conditions and demographics of the MFIP and DWP case load; and

(7) the deleted text begin MFIP deleted text end new text begin TANF new text end work participation rate, defined as the participation requirements
specified deleted text begin in title 1 of Public Law 104-193 applied to all MFIP cases except child only
cases deleted text end new text begin under Public Law 109-171, the Deficit Reduction Act of 2005 new text end .

Sec. 26.

Minnesota Statutes 2006, section 256J.751, subdivision 5, is amended to read:

Subd. 5.

Failure to meet federal performance standards.

(a) If sanctions occur
for failure to meet the performance standards specified in title 1 of Public Law 104-193
of the Personal Responsibility and Work Opportunity Act of 1996, new text begin and under Public
Law 109-171, the Deficit Reduction Act of 2005, new text end the state shall pay 88 percent of the
sanction. The remaining 12 percent of the sanction will be paid by the counties. The
county portion of the sanction will be distributed across all counties in proportion to each
county's percentage of the MFIP average monthly caseload during the period for which
the sanction was applied.

(b) If a county fails to meet the performance standards specified in title 1 of Public
Law 104-193 of the Personal Responsibility and Work Opportunity Act of 1996 new text begin , and
Public Law 109-171, the Deficit Reduction Act of 2005, new text end for any year, the commissioner
shall work with counties to organize a joint state-county technical assistance team to work
with the county. The commissioner shall coordinate any technical assistance with other
departments and agencies including the Departments of Employment and Economic
Development and Education as necessary to achieve the purpose of this paragraph.

(c) For state performance measures, a low-performing county is one that:

(1) performs below the bottom of their expected range for the measure in subdivision
2, clause deleted text begin (7) deleted text end new text begin (6) new text end , in an annualized measurement reported in October of each year; or

(2) performs below 40 percent for the measure in subdivision 2, clause deleted text begin (8) deleted text end new text begin (7) new text end , as
averaged across the four quarterly measurements for the year, or the ten counties with the
lowest rates if more than ten are below 40 percent.

(d) Low-performing counties under paragraph (c) must engage in corrective action
planning as defined by the commissioner. The commissioner may coordinate technical
assistance as specified in paragraph (b) for low-performing counties under paragraph (c).

Sec. 27.

Minnesota Statutes 2006, section 256J.95, subdivision 15, is amended to read:

Subd. 15.

Limitations on certain work activities.

(a) Except as specified in
paragraphs (b) to (d), employment activities listed in section 256J.49, subdivision 13, are
allowable under the diversionary work program.

deleted text begin (b) Work activities under section 256J.49, subdivision 13, clause (5), shall be
allowable only when in combination with approved work activities under section 256J.49,
subdivision 13, clauses (1) to (4), and shall be limited to no more than one-half of the
hours required in the employment plan.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end In order for deleted text begin an deleted text end English as a second language (ESL) deleted text begin class deleted text end new text begin or Functional Work
Literacy under section 256J.49, subdivision 13, clause (5), new text end to be an approved work
activity, a participant must:

(1) be below a spoken language proficiency level of SPL6 or its equivalent, as
measured by a nationally recognized test; and

(2) not have been enrolled in ESL for more than 24 months while previously
participating in MFIP or DWP. A participant who has been enrolled in ESL for 20 or more
months may be approved for ESL until the participant has received 24 total months.

deleted text begin (d) deleted text end new text begin (c) new text end Work activities under section 256J.49, subdivision 13, clause (6), shall be
allowable only when the training or education program will be completed within the
four-month DWP period. Training or education programs that will not be completed
within the four-month DWP period shall not be approved.

Sec. 28. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2006, sections 256J.67; and 256J.68, new text end new text begin are repealed effective
June 30, 2007.
new text end

new text begin (b) Minnesota Statutes 2006, sections 256J.425, subdivisions 6 and 7; and 256J.46,
subdivisions 1, 2, and 2a, new text end new text begin are repealed effective June 30, 2008.
new text end

new text begin (c) Minnesota Statutes 2006, section 256J.29, new text end new text begin is repealed.
new text end

ARTICLE 4

LICENSING

Section 1.

Minnesota Statutes 2006, section 245A.035, is amended to read:

245A.035 deleted text begin RELATIVE FOSTER CARE; deleted text end new text begin UNLICENSED new text end EMERGENCY
deleted text begin LICENSE deleted text end new text begin RELATIVE PLACEMENT new text end .

Subdivision 1.

deleted text begin Grant of deleted text end Emergency deleted text begin license deleted text end new text begin placement new text end .

Notwithstanding section
245A.03, subdivision 2a, or 245C.13, subdivision 2, a county agency may place a child
deleted text begin for foster care deleted text end with a relative who is not licensed to provide foster care, provided the
requirements of deleted text begin subdivision 2 deleted text end new text begin this section new text end are met. As used in this section, the term
"relative" has the meaning given it under section 260C.007, subdivision 27.

Subd. 2.

Cooperation with emergency deleted text begin licensing deleted text end new text begin placement new text end process.

(a) A county
agency that places a child with a relative who is not licensed to provide foster care must
deleted text begin begin the process of securing an emergency license for the relative as soon as possible
and must deleted text end conduct the initial inspection required by subdivision 3, clause (1), whenever
possible, prior to placing the child in the relative's home, but no later than three working
days after placing the child in the home. A child placed in the home of a relative who is
not licensed to provide foster care must be removed from that home if the relative fails
to cooperate with the county agency deleted text begin in securing an emergency foster care license. The
commissioner may issue an emergency foster care license to a relative with whom the
county agency wishes to place or has placed a child for foster care, or to a relative with
whom a child has been placed by court order deleted text end .

(b) If a child is to be placed in the home of a relative not licensed to provide foster
care, either the placing agency or the county agency in the county in which the relative
lives shall conduct the emergency deleted text begin licensing deleted text end new text begin placement new text end process as required in this section.

Subd. 3.

Requirements for emergency deleted text begin license deleted text end new text begin placement new text end .

Before an emergency
deleted text begin license deleted text end new text begin placement new text end may be deleted text begin issued deleted text end new text begin made new text end , the following requirements must be met:

(1) the county agency must conduct an initial inspection of the premises where
the deleted text begin foster care deleted text end new text begin placement new text end is to be deleted text begin provided deleted text end new text begin made new text end to ensure the health and safety of any
child placed in the home. The county agency shall conduct the inspection using a form
developed by the commissioner;

(2) at the time of the inspection or placement, whichever is earlier, new text begin the county
agency must provide new text end the relative being considered for an emergency deleted text begin license shall receive deleted text end new text begin
placement new text end an application form for a child foster care license;

(3) whenever possible, prior to placing the child in the relative's home, the relative
being considered for an emergency deleted text begin license deleted text end new text begin placement new text end shall provide the information
required by section 245C.05; and

(4) if the county determines, prior to the deleted text begin issuance of an deleted text end emergency deleted text begin license deleted text end new text begin
placement new text end , that anyone requiring a background study deleted text begin may be deleted text end new text begin prior to licensure of the
home is new text end disqualified under deleted text begin section 245C.14 and deleted text end chapter 245C, and the disqualification
is one which the commissioner cannot set aside, an emergency deleted text begin license shall deleted text end new text begin placement
must new text end not be deleted text begin issued deleted text end new text begin made new text end .

Subd. 4.

Applicant study.

When the county agency has received the information
required by section 245C.05, the county agency shall deleted text begin begin an applicant study according to
the procedures in chapter 245C. The commissioner may issue an emergency license upon
recommendation of the county agency once the initial inspection has been successfully
completed and the information necessary to begin the applicant background study has been
provided. If the county agency does not recommend that the emergency license be granted,
the agency shall notify the relative in writing that the agency is recommending denial to the
commissioner; shall remove any child who has been placed in the home prior to licensure;
and shall inform the relative in writing of the procedure to request review pursuant to
subdivision 6. An emergency license shall be effective until a child foster care license is
granted or denied, but shall in no case remain in effect more than 120 days from the date
of placement deleted text end new text begin submit the information to the commissioner according to section 245C.05 new text end .

Subd. 5.

Child foster care license application.

(a) The new text begin relatives with whom the new text end
emergency deleted text begin license holder deleted text end new text begin placement has been made new text end shall complete the child foster care
license application and necessary paperwork within ten days of the placement. The county
agency shall assist the deleted text begin emergency license holder deleted text end new text begin applicant new text end to complete the application.
The granting of a child foster care license to a relative shall be under the procedures in this
chapter and according to the standards deleted text begin set forth by foster care rule deleted text end new text begin in Minnesota Rules,
chapter 2960 new text end . In licensing a relative, the commissioner shall consider the importance of
maintaining the child's relationship with relatives as an additional significant factor in
determining whether deleted text begin to deleted text end new text begin a background study disqualification should be new text end set aside deleted text begin a licensing
disqualifier deleted text end under section 245C.22, or deleted text begin to grant deleted text end a variance deleted text begin of licensing requirements deleted text end new text begin should
be granted new text end under deleted text begin sections 245C.21 to 245C.27 deleted text end new text begin section 245C.30 new text end .

(b) When the county or private child-placing agency is processing an application
for child foster care licensure of a relative as defined in section 260B.007, subdivision
12, or 260C.007, subdivision 27, the county agency or child-placing agency must explain
the licensing process to the prospective licensee, including the background study process
and the procedure for reconsideration of an initial disqualification for licensure. The
county or private child-placing agency must also provide the prospective relative licensee
with information regarding appropriate options for legal representation in the pertinent
geographic area. If a relative is initially disqualified under section 245C.14, the deleted text begin county
or child-placing agency deleted text end new text begin commissioner new text end must provide written notice of the reasons for the
disqualification and the right to request a reconsideration by the commissioner as required
under section 245C.17.

(c) The commissioner shall maintain licensing data so that activities related to
applications and licensing actions for relative foster care providers may be distinguished
from other child foster care settings.

deleted text begin Subd. 6. deleted text end

deleted text begin Denial of emergency license. deleted text end

deleted text begin If the commissioner denies an application
for an emergency foster care license under this section, that denial must be in writing and
must include reasons for the denial. Denial of an emergency license is not subject to
appeal under chapter 14. The relative may request a review of the denial by submitting
to the commissioner a written statement of the reasons an emergency license should be
granted. The commissioner shall evaluate the request for review and determine whether
to grant the emergency license. The commissioner's review shall be based on a review
of the records submitted by the county agency and the relative. Within 15 working
days of the receipt of the request for review, the commissioner shall notify the relative
requesting review in written form whether the emergency license will be granted. The
commissioner's review shall be based on a review of the records submitted by the county
agency and the relative. A child shall not be placed or remain placed in the relative's home
while the request for review is pending. Denial of an emergency license shall not preclude
an individual from reapplying for an emergency license or from applying for a child foster
care license. The decision of the commissioner is the final administrative agency action.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 245A.16, subdivision 1, is amended to read:

Subdivision 1.

Delegation of authority to agencies.

(a) County agencies and
private agencies that have been designated or licensed by the commissioner to perform
licensing functions and activities under section 245A.04 deleted text begin and deleted text end new text begin ; background studies for
adult foster care, family adult day services, and family child care under new text end chapter 245C deleted text begin , deleted text end new text begin ; new text end
to recommend denial of applicants under section 245A.05 deleted text begin , deleted text end new text begin ; new text end to issue correction orders,
to issue variances, and recommend a conditional license under section 245A.06 deleted text begin , deleted text end new text begin ; new text end or to
recommend suspending or revoking a license or issuing a fine under section 245A.07,
shall comply with rules and directives of the commissioner governing those functions and
with this section. The following variances are excluded from the delegation of variance
authority and may be issued only by the commissioner:

(1) dual licensure of family child care and child foster care, dual licensure of child
and adult foster care, and adult foster care and family child care;

(2) adult foster care maximum capacity;

(3) adult foster care minimum age requirement;

(4) child foster care maximum age requirement;

(5) variances regarding disqualified individuals except that county agencies may
issue variances under section 245C.30 regarding disqualified individuals when the county
is responsible for conducting a consolidated reconsideration according to sections 245C.25
and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
and a disqualification based on serious or recurring maltreatment; and

(6) the required presence of a caregiver in the adult foster care residence during
normal sleeping hours.

(b) County agencies must report deleted text begin :
deleted text end

deleted text begin (1) deleted text end information about disqualification reconsiderations under sections 245C.25 and
245C.27, subdivision 2, deleted text begin clauses deleted text end new text begin paragraphs new text end (a) and (b), and variances granted under
paragraph (a), clause (5), to the commissioner at least monthly in a format prescribed by
the commissioner deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) for relative child foster care applicants and license holders, the number of
relatives, as defined in section deleted text begin 260C.007, subdivision 27 deleted text end , and household members of
relatives who are disqualified under section ; the disqualifying characteristics
under section ; the number of these individuals who requested reconsideration
under section ; the number of set-asides under section ; and variances
under section issued. This information shall be reported to the commissioner
annually by January 15 of each year in a format prescribed by the commissioner.
deleted text end

(c) For family day care programs, the commissioner may authorize licensing reviews
every two years after a licensee has had at least one annual review.

(d) For family adult day services programs, the commissioner may authorize
licensing reviews every two years after a licensee has had at least one annual review.

(e) A license issued under this section may be issued for up to two years.

Sec. 3.

Minnesota Statutes 2006, section 245A.16, subdivision 3, is amended to read:

Subd. 3.

Recommendations to the commissioner.

The county or private agency
shall not make recommendations to the commissioner regarding licensure without
first conducting an inspection, new text begin and for adult foster care, family adult day services, and
family child care, a background new text end study of the applicant deleted text begin , and evaluation pursuant to deleted text end new text begin under new text end
chapter 245C. The county or private agency must forward its recommendation to the
commissioner regarding the appropriate licensing action within 20 working days of
receipt of a completed application.

Sec. 4.

Minnesota Statutes 2006, section 245C.02, is amended by adding a subdivision
to read:

new text begin Subd. 14a. new text end

new text begin Private agency. new text end

new text begin "Private agency" has the meaning given in section
245A.02, subdivision 12.
new text end

Sec. 5.

Minnesota Statutes 2006, section 245C.04, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs.

(a) The commissioner shall conduct a
background study of an individual required to be studied under section 245C.03,
subdivision 1, at least upon application for initial license for all license types.

(b) The commissioner shall conduct a background study of an individual required to
be studied under section 245C.03, subdivision 1, at reapplication for a license for family
child care, deleted text begin child foster care, and deleted text end adult foster care new text begin , and family adult day services new text end .

(c) The commissioner is not required to conduct a study of an individual at the time
of reapplication for a license if the individual's background study was completed by the
commissioner of human services for an adult foster care license holder that is also:

(1) registered under chapter 144D; or

(2) licensed to provide home and community-based services to people with
disabilities at the foster care location and the license holder does not reside in the foster
care residence; and

(3) the following conditions are met:

(i) a study of the individual was conducted either at the time of initial licensure or
when the individual became affiliated with the license holder;

(ii) the individual has been continuously affiliated with the license holder since
the last study was conducted; and

(iii) the last study of the individual was conducted on or after October 1, 1995.

(d) new text begin From July 1, 2007, to June 30, 2009, the commissioner of human services
shall conduct a study of an individual required to be studied under section 245C.03, at
the time of reapplication for a child foster care license. The county or private agency
shall collect and forward to the commissioner the information required under section
245C.05, subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The
background study conducted by the commissioner of human services under this paragraph
must include a review of the information required under section 245C.08, subdivisions
1, paragraph (a), clauses (1) to (4), and 3.
new text end

new text begin (e) The commissioner of human services shall conduct a background study of an
individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
to (6), who is newly affiliated with a child foster care license holder. The county or
private agency shall collect and forward to the commissioner the information required
under section 245C.05, subdivisions 1 and 5. The background study conducted by the
commissioner of human services under this paragraph must include a review of the
information required under section 245C.08, subdivisions 1, paragraph (a), and 3.
new text end

new text begin (f) new text end Applicants for licensure, license holders, and other entities as provided in this
chapter must submit completed background study forms to the commissioner before
individuals specified in section 245C.03, subdivision 1, begin positions allowing direct
contact in any licensed program.

deleted text begin (e) deleted text end new text begin (g) new text end For purposes of this section, a physician licensed under chapter 147 is
considered to be continuously affiliated upon the license holder's receipt from the
commissioner of health or human services of the physician's background study results.

Sec. 6.

Minnesota Statutes 2006, section 245C.05, subdivision 1, is amended to read:

Subdivision 1.

Individual studied.

(a) The individual who is the subject of the
background study must provide the applicant, license holder, or other entity under section
245C.04 with sufficient information to ensure an accurate study, including:

(1) the individual's first, middle, and last name and all other names by which the
individual has been known;

(2) home address, city, and state of residence;

(3) zip code;

(4) sex;

(5) date of birth; and

(6) Minnesota driver's license number or state identification number.

(b) Every subject of a background study conducted new text begin or initiated new text end by counties or private
agencies under this chapter must also provide the home address, city, county, and state of
residence for the past five years.

new text begin (c) Every subject of a background study related to child foster care through a private
agency shall also provide the commissioner a signed consent for the release of any
information received from national crime information databases to the private agency that
initiated the background study.
new text end

new text begin (d) The subject of a background study shall provide fingerprints as required in
subdivision 5, paragraph (c).
new text end

Sec. 7.

Minnesota Statutes 2006, section 245C.05, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin County or private agency. new text end

new text begin For background studies related to child foster
care, county and private agencies must collect the information under subdivision 1 and
forward it to the commissioner.
new text end

Sec. 8.

Minnesota Statutes 2006, section 245C.05, subdivision 4, is amended to read:

Subd. 4.

Electronic transmission.

For background studies conducted by the
Department of Human Services, the commissioner shall implement a system for the
electronic transmission of:

(1) background study information to the commissioner; deleted text begin and
deleted text end

(2) background study results to the license holder deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) background study results to county and private agencies for background studies
conducted by the commissioner for child foster care.
new text end

Sec. 9.

Minnesota Statutes 2006, section 245C.05, subdivision 5, is amended to read:

Subd. 5.

Fingerprints.

(a) new text begin Except as provided in paragraph (c), new text end for any background
study completed under this chapter, when the commissioner has reasonable cause to
believe that further pertinent information may exist on the subject of the background
study, the subject shall provide the commissioner with a set of classifiable fingerprints
obtained from an authorized deleted text begin law enforcement deleted text end agency.

(b) For purposes of requiring fingerprints, the commissioner has reasonable cause
when, but not limited to, the:

(1) information from the Bureau of Criminal Apprehension indicates that the subject
is a multistate offender;

(2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined; or

(3) commissioner has received a report from the subject or a third party indicating
that the subject has a criminal history in a jurisdiction other than Minnesota.

new text begin (c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for
background studies conducted by the commissioner for child foster care, the subject of the
background study shall provide the commissioner with a set of classifiable fingerprints
obtained from an authorized agency.
new text end

Sec. 10.

Minnesota Statutes 2006, section 245C.05, subdivision 7, is amended to read:

Subd. 7.

Probation officer and corrections agent.

(a) A probation officer or
corrections agent shall notify the commissioner of an individual's conviction if the
individual is:

(1) affiliated with a program or facility regulated by the Department of Human
Services or Department of Health, a facility serving children or youth licensed by the
Department of Corrections, or any type of home care agency or provider of personal care
assistance services; and

(2) convicted of a crime constituting a disqualification under section 245C.14.

(b) For the purpose of this subdivision, "conviction" has the meaning given it
in section 609.02, subdivision 5.

(c) The commissioner, in consultation with the commissioner of corrections, shall
develop forms and information necessary to implement this subdivision and shall provide
the forms and information to the commissioner of corrections for distribution to local
probation officers and corrections agents.

(d) The commissioner shall inform individuals subject to a background study that
criminal convictions for disqualifying crimes will be reported to the commissioner by the
corrections system.

(e) A probation officer, corrections agent, or corrections agency is not civilly or
criminally liable for disclosing or failing to disclose the information required by this
subdivision.

(f) Upon receipt of disqualifying information, the commissioner shall provide the
notice required under section 245C.17, as appropriate, to agencies on record as having
initiated a background study or making a request for documentation of the background
study status of the individual.

(g) This subdivision does not apply to family child care deleted text begin and child foster care deleted text end
programs.

Sec. 11.

Minnesota Statutes 2006, section 245C.08, subdivision 1, is amended to read:

Subdivision 1.

Background studies conducted by commissioner of human
services.

(a) For a background study conducted by the commissioner, the commissioner
shall review:

(1) information related to names of substantiated perpetrators of maltreatment of
vulnerable adults that has been received by the commissioner as required under section
626.557, subdivision 9c, paragraph (i);

(2) the commissioner's records relating to the maltreatment of minors in licensed
programs, and from deleted text begin county agency deleted text end findings of maltreatment of minors as indicated
through the social service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); deleted text begin and
deleted text end

(4) information from the Bureau of Criminal Apprehension deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) for a background study related to a child foster care application for licensure, the
commissioner shall also review:
new text end

new text begin (i) information from the child abuse and neglect registry for any state in which the
background study subject has resided in for the past five years; and
new text end

new text begin (ii) information from national crime information databases.
new text end

(b) Notwithstanding expungement by a court, the commissioner may consider
information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
received notice of the petition for expungement and the court order for expungement is
directed specifically to the commissioner.

Sec. 12.

Minnesota Statutes 2006, section 245C.08, subdivision 2, is amended to read:

Subd. 2.

Background studies conducted by a county deleted text begin or private deleted text end agency.

(a) For
a background study conducted by a county deleted text begin or private deleted text end agency for deleted text begin child foster care, deleted text end adult
foster care, new text begin family adult day services, new text end and family child care homes, the commissioner
shall review:

(1) information from the county agency's record of substantiated maltreatment
of adults and the maltreatment of minors;

(2) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, clauses (2), (5), and (6);

(3) information from the Bureau of Criminal Apprehension; and

(4) arrest and investigative records maintained by the Bureau of Criminal
Apprehension, county attorneys, county sheriffs, courts, county agencies, local police, the
National Criminal Records Repository, and criminal records from other states.

(b) If the individual has resided in the county for less than five years, the study shall
include the records specified under paragraph (a) for the previous county or counties of
residence for the past five years.

(c) Notwithstanding expungement by a court, the county deleted text begin or private deleted text end agency may
consider information obtained under paragraph (a), clauses (3) and (4), unless the
commissioner received notice of the petition for expungement and the court order for
expungement is directed specifically to the commissioner.

Sec. 13.

Minnesota Statutes 2006, section 245C.10, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Temporary personnel agencies, educational programs, and professional
services agencies. new text end

new text begin The commissioner shall recover the cost of the background studies
initiated by temporary personnel agencies, educational programs, and professional
services agencies that initiate background studies under section 245C.03, subdivision 4,
through a fee of no more than $20 per study charged to the agency. The fees collected
under this subdivision are appropriated to the commissioner for the purpose of conducting
background studies.
new text end

Sec. 14.

Minnesota Statutes 2006, section 245C.11, subdivision 1, is amended to read:

Subdivision 1.

new text begin Adult new text end foster care; criminal conviction data.

For individuals who
are required to have background studies under section 245C.03, subdivisions 1 and 2, and
who have been continuously affiliated with deleted text begin a deleted text end new text begin an adult new text end foster care provider that is licensed
in more than one county, criminal conviction data may be shared among those counties in
which the new text begin adult new text end foster care programs are licensed. A county agency's receipt of criminal
conviction data from another county agency shall meet the criminal data background
study requirements of this chapter.

Sec. 15.

Minnesota Statutes 2006, section 245C.11, subdivision 2, is amended to read:

Subd. 2.

Jointly licensed programs.

A county agency may accept a background
study completed by the commissioner under this chapter in place of the background study
required under section 245A.16, subdivision 3, in programs with joint licensure as home
and community-based services and adult foster care for people with developmental
disabilities when the license holder does not reside in the new text begin adult new text end foster care residence and
the subject of the study has been continuously affiliated with the license holder since the
date of the commissioner's study.

Sec. 16.

Minnesota Statutes 2006, section 245C.12, is amended to read:

245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.

new text begin (a) new text end For the purposes of background studies completed by tribal organizations
performing licensing activities otherwise required of the commissioner under this chapter,
after obtaining consent from the background study subject, tribal licensing agencies shall
have access to criminal history data in the same manner as county licensing agencies and
private licensing agencies under this chapter.

new text begin (b) Tribal organizations may contract with the commissioner to obtain background
study data on individuals under tribal jurisdiction related to adoptions according to
section 245C.34. Tribal organizations may also contract with the commissioner to obtain
background study data on individuals under tribal jurisdiction related to child foster care
according to section 245C.34.
new text end

Sec. 17.

Minnesota Statutes 2006, section 245C.16, subdivision 1, is amended to read:

Subdivision 1.

Determining immediate risk of harm.

(a) If the commissioner
determines that the individual studied has a disqualifying characteristic, the commissioner
shall review the information immediately available and make a determination as to the
subject's immediate risk of harm to persons served by the program where the individual
studied will have direct contact.

(b) The commissioner shall consider all relevant information available, including the
following factors in determining the immediate risk of harm:

(1) the recency of the disqualifying characteristic;

(2) the recency of discharge from probation for the crimes;

(3) the number of disqualifying characteristics;

(4) the intrusiveness or violence of the disqualifying characteristic;

(5) the vulnerability of the victim involved in the disqualifying characteristic;

(6) the similarity of the victim to the persons served by the program where the
individual studied will have direct contact; and

(7) whether the individual has a disqualification from a previous background study
that has not been set aside.

(c) This section does not apply when the subject of a background study is regulated
by a health-related licensing board as defined in chapter 214, and the subject is determined
to be responsible for substantiated maltreatment under section 626.556 or 626.557.

(d) new text begin This section does not apply to a background study related to an initial application
for a child foster care license.
new text end

new text begin (e) new text end If the commissioner has reason to believe, based on arrest information or an
active maltreatment investigation, that an individual poses an imminent risk of harm to
persons receiving services, the commissioner may order that the person be continuously
supervised or immediately removed pending the conclusion of the maltreatment
investigation or criminal proceedings.

Sec. 18.

Minnesota Statutes 2006, section 245C.17, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Notice to county or private agency. new text end

new text begin For studies on individuals related to a
license to provide child foster care, the commissioner shall also provide a notice of the
background study results to the county or private agency that initiated the background
study.
new text end

Sec. 19.

Minnesota Statutes 2006, section 245C.21, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Submission of reconsideration request to county or private agency.
new text end

new text begin (a) For disqualifications related to studies conducted by county agencies, and for
disqualifications related to studies conducted by the commissioner for child foster care,
the individual shall submit the request for reconsideration to the county or private agency
that initiated the background study.
new text end

new text begin (b) A reconsideration request shall be submitted within the time frames specified in
subdivision 2.
new text end

new text begin (c) The county or private agency shall forward the individual's request for
reconsideration and provide the commissioner with a recommendation whether to set aside
the individual's disqualification.
new text end

Sec. 20.

Minnesota Statutes 2006, section 245C.23, subdivision 2, is amended to read:

Subd. 2.

Commissioner's notice of disqualification that is not set aside.

(a) The
commissioner shall notify the license holder of the disqualification and order the license
holder to immediately remove the individual from any position allowing direct contact
with persons receiving services from the license holder if:

(1) the individual studied does not submit a timely request for reconsideration
under section 245C.21;

(2) the individual submits a timely request for reconsideration, but the commissioner
does not set aside the disqualification for that license holder under section 245C.22;

(3) an individual who has a right to request a hearing under sections 245C.27 and
256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
not request a hearing within the specified time; or

(4) an individual submitted a timely request for a hearing under sections 245C.27
and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
disqualification under section 245A.08, subdivision 5, or 256.045.

(b) If the commissioner does not set aside the disqualification under section 245C.22,
and the license holder was previously ordered under section 245C.17 to immediately
remove the disqualified individual from direct contact with persons receiving services or
to ensure that the individual is under continuous, direct supervision when providing direct
contact services, the order remains in effect pending the outcome of a hearing under
sections 245C.27 and 256.045, or 245C.28 and chapter 14.

new text begin (c) For background studies related to child foster care, the commissioner shall
also notify the county or private agency that initiated the study of the results of the
reconsideration.
new text end

Sec. 21.

new text begin [245C.33] ADOPTION BACKGROUND STUDY REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Background studies conducted by commissioner. new text end

new text begin Before
placement of a child for purposes of adoption, the commissioner shall conduct a
background study on individuals listed in section 259.41, subdivision 3, for county
agencies and private agencies licensed to place children for adoption.
new text end

new text begin Subd. 2. new text end

new text begin Information and data provided to county or private agency. new text end

new text begin The
subject of the background study shall provide the following information to the county
or private agency:
new text end

new text begin (1) the information specified in section 245C.05;
new text end

new text begin (2) a set of classifiable fingerprints obtained from an authorized agency; and
new text end

new text begin (3) for studies initiated by a private agency, a signed consent for the release of
information received from national crime information databases to the private agency.
new text end

new text begin Subd. 3. new text end

new text begin Information and data provided to commissioner. new text end

new text begin The county or private
agency shall forward the data collected under subdivision 2 to the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Information commissioner reviews. new text end

new text begin (a) The commissioner shall review
the following information regarding the background study subject:
new text end

new text begin (1) the information under section 245C.08, subdivisions 1, 3, and 4;
new text end

new text begin (2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and
new text end

new text begin (3) information from national crime information databases.
new text end

new text begin (b) The commissioner shall provide any information collected under this subdivision
to the county or private agency that initiated the background study. The commissioner
shall indicate if the information collected shows that the subject of the background study
has a conviction listed in United States Code, title 42, section 671(a)(20)(A).
new text end

Sec. 22.

new text begin [245C.34] ADOPTION AND CHILD FOSTER CARE BACKGROUND
STUDIES; TRIBAL ORGANIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Background studies may be conducted by commissioner. new text end

new text begin (a)
Tribal organizations may contract with the commissioner under section 245C.12 to obtain
background study data on individuals under tribal jurisdiction related to adoptions.
new text end

new text begin (b) Tribal organizations may contract with the commissioner under section 245C.12
to obtain background study data on individuals under tribal jurisdiction related to child
foster care.
new text end

new text begin (c) Background studies initiated by tribal organizations under paragraphs (a) and (b)
must be conducted as provided in subdivisions 2 and 3.
new text end

new text begin Subd. 2. new text end

new text begin Information and data provided to tribal organization. new text end

new text begin The background
study subject must provide the following information to the tribal organization:
new text end

new text begin (1) for background studies related to adoptions, the information under section
245C.05;
new text end

new text begin (2) for background studies related to child foster care, the information under section
245C.05;
new text end

new text begin (3) a set of classifiable fingerprints obtained from an authorized agency; and
new text end

new text begin (4) a signed consent for the release of information received from national crime
information databases to the tribal organization.
new text end

new text begin Subd. 3. new text end

new text begin Information and data provided to commissioner. new text end

new text begin The tribal organization
shall forward the data collected under subdivision 2 to the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Information commissioner reviews. new text end

new text begin (a) The commissioner shall review
the following information regarding the background study subject:
new text end

new text begin (1) the information under section 245C.08, subdivisions 1, 3, and 4;
new text end

new text begin (2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and
new text end

new text begin (3) information from national crime information databases.
new text end

new text begin (b) The commissioner shall provide any information collected under this subdivision
to the tribal organization that initiated the background study. The commissioner shall
indicate if the information collected shows that the subject of the background study has a
conviction listed in United States Code, title 42, section 671(a)(20)(A).
new text end

Sec. 23.

Minnesota Statutes 2006, section 259.20, subdivision 2, is amended to read:

Subd. 2.

Other applicable law.

new text begin (a) new text end Portions of chapters 245A, 245C, 257, 260, and
317A may also affect the adoption of a particular child.

new text begin (b) new text end Provisions of the Indian Child Welfare Act, United States Code, title 25, chapter
21, sections 1901-1923, may also apply in the adoption of an Indian child, and may
preempt specific provisions of this chapter.

new text begin (c) Consistent with chapters 245A and 245C and Public Law 109-248, a completed
background study is required before the approval of any foster or adoptive placement in
a related or an unrelated home.
new text end

Sec. 24.

Minnesota Statutes 2006, section 259.29, subdivision 1, is amended to read:

Subdivision 1.

Best interests of the child.

(a) The policy of the state of Minnesota
is to ensure that the best interests of the child are met by requiring individualized
determination of the needs of the child and of how the adoptive placement will serve the
needs of the child.

(b) Among the factors the agency shall consider in determining the needs of the child
are those specified under section 260C.193, subdivision 3, paragraph (b).

new text begin (c) Consistent with chapters 245A and 245C and Public Law 109-248, a completed
background study is required before the approval of any foster or adoptive placement in
a related or an unrelated home.
new text end

Sec. 25.

Minnesota Statutes 2006, section 259.41, is amended to read:

259.41 ADOPTION STUDY.

Subdivision 1.

Study required before placement; certain relatives excepted.

(a)
An new text begin approved new text end adoption study new text begin ; completed background study, as required under section
245C.33; new text end and written report must be completed before the child is placed in a prospective
adoptive home under this chapter, except as allowed by section 259.47, subdivision 6.
In an agency placement, the report must be filed with the court at the time the adoption
petition is filed. In a direct adoptive placement, the report must be filed with the court in
support of a motion for temporary preadoptive custody under section 259.47, subdivision
3, or, if the study and report are complete, in support of an emergency order under section
259.47, subdivision 6. The study and report shall be completed by a licensed child-placing
agency and must be thorough and comprehensive. The study and report shall be paid for
by the prospective adoptive parent, except as otherwise required under section 259.67
or 259.73.

(b) A placement for adoption with an individual who is related to the child, as
defined by section 245A.02, subdivision 13, is not subject to this section except as required
by deleted text begin section deleted text end new text begin sections 245C.33 and new text end 259.53, subdivision 2, paragraph (c).

(c) In the case of a licensed foster parent seeking to adopt a child who is in the foster
parent's care, any portions of the foster care licensing process that duplicate requirements
of the home study may be submitted in satisfaction of the relevant requirements of this
section.

Subd. 2.

Form of study.

(a) The adoption study must include at least one in-home
visit with the prospective adoptive parent. At a minimum, the study must deleted text begin include deleted text end new text begin
document new text end the following new text begin information new text end about the prospective adoptive parent:

(1) a background deleted text begin check deleted text end new text begin study new text end as required by subdivision 3 new text begin and section 245C.33 new text end ,
deleted text begin and deleted text end new text begin including:
new text end

new text begin (i) new text end an deleted text begin evaluation deleted text end new text begin assessment of the data and information provided by section
245C.33, subdivision 4, to determine if the prospective adoptive parent and any other
person over the age of 13 living in the home has a felony conviction consistent with
subdivision 3 and section 471(a)(2) of the Social Security Act; and
new text end

new text begin (ii) an assessment new text end of the effect of deleted text begin a deleted text end new text begin any new text end conviction or finding of substantiated
maltreatment on the deleted text begin ability to deleted text end new text begin capacity of the prospective adoptive parent to safely new text end care
for new text begin and parent new text end a child;

(2) a medical and social history and assessment of current health;

(3) an assessment of potential parenting skills;

(4) an assessment of ability to provide adequate financial support for a child; and

(5) an assessment of the level of knowledge and awareness of adoption issues
including, where appropriate, matters relating to interracial, cross-cultural, and special
needs adoptions.

(b) The adoption study is the basis for completion of a written report. The report
must be in a format specified by the commissioner and must contain recommendations
regarding the suitability of the subject of the study to be an adoptive parent.

Subd. 3.

Background deleted text begin check; affidavit of history deleted text end new text begin study new text end .

(a) At the time an adoption
study is commenced, each prospective adoptive parent must:

(1) authorize access by the agency to any private data needed to complete the study;

(2) provide all addresses at which the prospective adoptive parent and anyone in the
household over the age of 13 has resided in the previous five years; and

(3) disclose any names used previously other than the name used at the time of
the study.

(b) When the requirements of paragraph (a) have been met, the agency shall
immediately deleted text begin begin deleted text end new text begin initiate new text end a background deleted text begin check, deleted text end new text begin study under section 245C.33 to be
completed by the commissioner new text end on each person over the age of 13 living in the home deleted text begin ,
consisting, at a minimum, of the following: deleted text end new text begin . As required under section 245C.33 and Public
Law 109-248, a completed background study is required before the approval of any foster
or adoptive placement in a related or an unrelated home. The required background study
must be completed as part of the home study.
new text end

deleted text begin (1) a check of criminal conviction data with the Bureau of Criminal Apprehension
and local law enforcement authorities;
deleted text end

deleted text begin (2) a check for data on substantiated maltreatment of a child or vulnerable adult
and domestic violence data with local law enforcement and social services agencies and
district courts; and
deleted text end

deleted text begin (3) for those persons under the age of 25, a check of juvenile court records.
deleted text end

deleted text begin Notwithstanding the provisions of section or , the Bureau of
Criminal Apprehension, local law enforcement and social services agencies, district courts,
and juvenile courts shall release the requested information to the agency completing
the adoption study.
deleted text end

deleted text begin (c) When paragraph (b) requires checking the data or records of local law
enforcement and social services agencies and district and juvenile courts, the agency
shall check with the law enforcement and social services agencies and courts whose
jurisdictions cover the addresses under paragraph (a), clause (2). In the event that the
agency is unable to complete any of the record checks required by paragraph (b), the
agency shall document the fact and the agency's efforts to obtain the information.
deleted text end

deleted text begin (d) For a study completed under this section, when the agency has reasonable
cause to believe that further information may exist on the prospective adoptive parent or
household member over the age of 13 that may relate to the health, safety, or welfare of
the child, the prospective adoptive parent or household member over the age of 13 shall
provide the agency with a set of classifiable fingerprints obtained from an authorized law
enforcement agency and the agency may obtain criminal history data from the National
Criminal Records Repository by submitting fingerprints to the Bureau of Criminal
Apprehension. The agency has reasonable cause when, but not limited to, the:
deleted text end

deleted text begin (1) information from the Bureau of Criminal Apprehension indicates that the
prospective adoptive parent or household member over the age of 13 is a multistate
offender;
deleted text end

deleted text begin (2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined;
deleted text end

deleted text begin (3) the agency has received a report from the prospective adoptive parent or
household member over the age of 13 or a third party indicating that the prospective
adoptive parent or household member over the age of 13 has a criminal history in a
jurisdiction other than Minnesota; or
deleted text end

deleted text begin (4) the prospective adoptive parent or household member over the age of 13 is or has
been a resident of a state other than Minnesota in the prior five years.
deleted text end

deleted text begin (e) At any time prior to completion of the background check required under
paragraph (b), a prospective adoptive parent may submit to the agency conducting the
study a sworn affidavit stating whether they or any person residing in the household have
been convicted of a crime. The affidavit shall also state whether the adoptive parent or any
other person residing in the household is the subject of an open investigation of, or have
been the subject of a substantiated allegation of, child or vulnerable-adult maltreatment
within the past ten years. A complete description of the crime, open investigation, or
substantiated abuse, and a complete description of any sentence, treatment, or disposition
must be included. The affidavit must contain an acknowledgment that if, at any time
before the adoption is final, a court receives evidence leading to a conclusion that a
prospective adoptive parent knowingly gave false information in the affidavit, it shall be
determined that the adoption of the child by the prospective adoptive parent is not in the
best interests of the child.
deleted text end

deleted text begin (f) For the purposes of subdivision 1 and section deleted text begin 259.47, subdivisions 3 and 6 deleted text end , an
adoption study is complete for placement, even though the background checks required by
paragraph (b) have not been completed, if each prospective adoptive parent has completed
the affidavit allowed by paragraph (e) and the other requirements of this section have been
met. The background checks required by paragraph (b) must be completed before an
adoption petition is filed. If an adoption study has been submitted to the court under section
deleted text begin 259.47, subdivision 3 deleted text end or 6, before the background checks required by paragraph (b) were
complete, an updated adoption study report which includes the results of the background
check must be filed with the adoption petition. In the event that an agency is unable to
complete any of the records checks required by paragraph (b), the agency shall submit with
the petition to adopt an affidavit documenting the agency's efforts to complete the checks.
deleted text end

new text begin (c) A home study under paragraph (b) used to consider placement of any child
on whose behalf Title IV-E adoption assistance payments are to be made must not be
approved if a background study reveals a felony conviction at any time for:
new text end

new text begin (1) child abuse or neglect;
new text end

new text begin (2) spousal abuse;
new text end

new text begin (3) a crime against children, including child pornography; or
new text end

new text begin (4) a crime involving violence, including rape, sexual assault, or homicide, but not
including other physical assault or battery.
new text end

new text begin (d) A home study under paragraph (b) used to consider placement of any child
on whose behalf Title IV-E adoption assistance payments are to be made must not be
approved if a background study reveals a felony conviction within the past five years for:
new text end

new text begin (1) physical assault or battery; or
new text end

new text begin (2) a drug-related offense.
new text end

Subd. 4.

Updates to adoption study; period of validity.

An agency may update
an adoption study and report as needed, regardless of when the original study and report
or most recent update was completed. An update must be in a format specified by the
commissioner and must verify the continuing accuracy of the elements of the original
report and document any changes to elements of the original report. An update to a study
and report not originally completed under this section must ensure that the study and
report, as updated, meet the requirements of this section. An adoption study is valid if the
report has been completed or updated within the previous 12 months.

Sec. 26.

Minnesota Statutes 2006, section 259.47, subdivision 3, is amended to read:

Subd. 3.

Preadoptive custody order.

(a) Before a child is placed in a prospective
adoptive home by a birth parent or legal guardian, other than an agency, the placement
must be approved by the district court in the county where the prospective adoptive parent
resides. new text begin Consistent with chapter 245C and Public Law 109-248, a completed background
study is required before the approval of any foster or adoptive placement in a related or
an unrelated home. new text end An order under this subdivision or subdivision 6 shall state that the
prospective adoptive parent's right to custody of the child is subject to the birth parent's
right to custody until the consents to the child's adoption become irrevocable. At the time
of placement, prospective adoptive parents must have for the child qualifying existing
coverage as defined in section 62L.02, subdivision 24, or other similar comprehensive
health care coverage. The preadoptive custody order must include any agreement reached
between the prospective adoptive parent and the birth parent regarding authority to make
decisions after placement for medical care of the child and responsibility for payment for
medical care not provided by the adoptive parent's existing health care coverage. The
prospective adoptive parent must meet the residence requirements of section 259.22,
subdivision 1, and must file with the court an affidavit of intent to remain a resident of
the state for at least three months after the child is placed in the prospective adoptive
home. The prospective adoptive parent shall file with the court a notice of intent to file
an adoption petition and submit a written motion seeking an order granting temporary
preadoptive custody. The notice and motion required under this subdivision may be
considered by the court ex parte, without a hearing. The prospective adoptive parent
shall serve a copy of the notice and motion upon any parent whose consent is required
under section 259.24 or who is named in the affidavit required under paragraph (b) if that
person's mailing address is known. The motion may be filed up to 60 days before the
placement is to be made and must include:

(1) the adoption study required under section 259.41;

(2) affidavits from the birth parents indicating their support of the motion, or, if there
is no affidavit from the birth father, an affidavit from the birth mother under paragraph (b);

(3) an itemized statement of expenses that have been paid and an estimate of
expenses that will be paid by the prospective adoptive parents to the birth parents, any
agency, attorney, or other party in connection with the prospective adoption;

(4) the name of counsel for each party, if any;

(5) a statement that the birth parents:

(i) have provided the social and medical history required under section 259.43 to
the prospective adoptive parent;

(ii) have received the written statement of their legal rights and responsibilities
under section 259.39; and

(iii) have been notified of their right to receive counseling under subdivision 4; and

(6) the name of the agency chosen by the adoptive parent to supervise the adoptive
placement and complete the postplacement assessment required by section 259.53,
subdivision 2.

The court shall review the expense statement submitted under this subdivision to
determine whether payments made or to be made by the prospective adoptive parent are
lawful and in accordance with section 259.55, subdivision 1.

(b) If the birth mother submits the affidavit required in paragraph (a), clause (2),
but the birth father fails to do so, the birth mother must submit an additional affidavit that
describes her good faith efforts or efforts made on her behalf to identify and locate the
birth father for purposes of securing his consent. In the following circumstances the
birth mother may instead submit an affidavit stating on which ground she is exempt from
making efforts to identify and locate the father:

(1) the child was conceived as the result of incest or rape;

(2) efforts to locate the father by the affiant or anyone acting on the affiant's behalf
could reasonably result in physical harm to the birth mother or child; or

(3) efforts to locate the father by the affiant or anyone acting on the affiant's behalf
could reasonably result in severe emotional distress of the birth mother or child.

A court shall consider the motion for temporary preadoptive custody within 30
days of receiving the motion or by the anticipated placement date stated in the motion,
whichever comes sooner.

Sec. 27.

Minnesota Statutes 2006, section 259.53, subdivision 2, is amended to read:

Subd. 2.

Adoption agencies; postplacement assessment and report.

(a) The
agency to which the petition has been referred under subdivision 1 shall conduct a
postplacement assessment and file a report with the court within 90 days of receipt
of a copy of the adoption petition. The agency shall send a copy of the report to the
commissioner at the time it files the report with the court. The assessment and report
must evaluate the environment and antecedents of the child to be adopted, the home of
the petitioners, whether placement with the petitioners meets the needs of the child as
described in section 259.57, subdivision 2. The report must include a recommendation to
the court as to whether the petition should or should not be granted.

In making evaluations and recommendations, the postplacement assessment and
report must, at a minimum, address the following:

(1) the level of adaptation by the prospective adoptive parents to parenting the child;

(2) the health and well-being of the child in the prospective adoptive parents' home;

(3) the level of incorporation by the child into the prospective adoptive parents'
home, extended family, and community; and

(4) the level of inclusion of the child's previous history into the prospective adoptive
home, such as cultural or ethnic practices, or contact with former foster parents or
biological relatives.

(b) A postplacement adoption report is valid for 12 months following its date
of completion.

deleted text begin (c) If the petitioner is an individual who is related to the child, as defined by section
deleted text begin 245A.02, subdivision 13 deleted text end , the agency, as part of its postplacement assessment and report
under paragraph (a), shall conduct a background check meeting the requirements of
section deleted text begin 259.41, subdivision 3 deleted text end , paragraph (b). The prospective adoptive parent shall
cooperate in the completion of the background check by supplying the information and
authorizations described in section deleted text begin 259.41, subdivision 3 deleted text end , paragraph (a).
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end If the report recommends that the court not grant the petition to adopt the
child, the provisions of this paragraph apply. Unless the assessment and report were
completed by the local social services agency, the agency completing the report, at the
time it files the report with the court under paragraph (a), must provide a copy of the report
to the local social services agency in the county where the prospective adoptive parent
lives. The agency or local social services agency may recommend that the court dismiss
the petition. If the local social services agency determines that continued placement in the
home endangers the child's physical or emotional health, the agency shall seek a court
order to remove the child from the home.

deleted text begin (e) deleted text end new text begin (d) new text end If, through no fault of the petitioner, the agency to whom the petition was
referred under subdivision 1, paragraph (b), fails to complete the assessment and file the
report within 90 days of the date it received a copy of the adoption petition, the court may
hear the petition upon giving the agency and the local social services agency, if different,
five days' notice by mail of the time and place of the hearing.

Sec. 28.

Minnesota Statutes 2006, section 259.57, subdivision 2, is amended to read:

Subd. 2.

Protection of child's best interests.

(a) The policy of the state of
Minnesota is to ensure that the best interests of children are met by requiring an
individualized determination of the needs of the child and how the adoptive placement
will serve the needs of the child.

(b) Among the factors the court shall consider in determining the needs of the child
are those specified under section 260C.193, subdivision 3, paragraph (b). new text begin Consistent
with chapters 245A and 245C and Public Law 109-248, a completed background study
is required before the approval of any foster or adoptive placement in a related or an
unrelated home. new text end

(c) In reviewing adoptive placement and in determining appropriate adoption,
the court shall consider placement, consistent with the child's best interests and in the
following order, with (1) a relative or relatives of the child, or (2) an important friend with
whom the child has resided or had significant contact. Placement of a child cannot be
delayed or denied based on race, color, or national origin of the adoptive parent or the
child. Whenever possible, siblings should be placed together unless it is determined
not to be in the best interests of a sibling.

(d) If the child's birth parent or parents explicitly request that relatives and important
friends not be considered, the court shall honor that request consistent with the best
interests of the child.

If the child's birth parent or parents express a preference for placing the child in an
adoptive home of the same or a similar religious background to that of the birth parent
or parents, the court shall place the child with a family that also meets the birth parent's
religious preference. Only if no family is available as described in clause (a) or (b)
may the court give preference to a family described in clause (c) that meets the parent's
religious preference.

(e) This subdivision does not affect the Indian Child Welfare Act, United States
Code, title 25, sections 1901 to 1923, and the Minnesota Indian Family Preservation
Act, sections 260.751 to 260.835.

Sec. 29.

Minnesota Statutes 2006, section 260C.193, subdivision 3, is amended to read:

Subd. 3.

Best interest of the child in foster care or residential care.

(a) The
policy of the state is to ensure that the best interests of children in foster or residential care
are met by requiring individualized determinations under section 260C.212, subdivision 2,
paragraph (b), of the needs of the child and of how the selected placement will serve the
needs of the child in foster care placements.

(b) The court shall review whether the responsible social services agency made
efforts as required under section 260C.212, subdivision 5, and made an individualized
determination as required under section 260C.212, subdivision 2. If the court finds the
agency has not made efforts as required under section 260C.212, subdivision 5, and there
is a relative who qualifies to be licensed to provide family foster care under chapter 245A,
the court may order the child placed with the relative consistent with the child's best
interests. new text begin Consistent with chapters 245A and 245C and Public Law 109-248, a completed
background study is required before the approval of any foster or adoptive placement in
a related or an unrelated home. new text end

(c) If the child's birth parent or parents explicitly request that a relative or important
friend not be considered, the court shall honor that request if it is consistent with the best
interests of the child. If the child's birth parent or parents express a preference for placing
the child in a foster or adoptive home of the same or a similar religious background to
that of the birth parent or parents, the court shall order placement of the child with an
individual who meets the birth parent's religious preference.

(d) Placement of a child cannot be delayed or denied based on race, color, or national
origin of the foster parent or the child.

(e) Whenever possible, siblings should be placed together unless it is determined
not to be in the best interests of a sibling. If siblings are not placed together according to
section 260C.212, subdivision 2, paragraph (d), the responsible social services agency
shall report to the court the efforts made to place the siblings together and why the
efforts were not successful. If the court is not satisfied with the agency's efforts to place
siblings together, the court may order the agency to make further efforts. If siblings are
not placed together the court shall review the responsible social services agency's plan
for visitation among siblings required as part of the out-of-home placement plan under
section 260C.212.

(f) This subdivision does not affect the Indian Child Welfare Act, United States
Code, title 25, sections 1901 to 1923, and the Minnesota Indian Family Preservation
Act, sections 260.751 to 260.835.

Sec. 30.

Minnesota Statutes 2006, section 260C.209, is amended to read:

260C.209 BACKGROUND CHECKS.

Subdivision 1.

Subjects.

The responsible social services agency must deleted text begin conduct deleted text end new text begin
initiate new text end a background deleted text begin check deleted text end new text begin study to be completed by the commissioner new text end under deleted text begin this section
of deleted text end new text begin chapter 245C on new text end the following new text begin individuals new text end :

(1) a noncustodial parent or nonadjudicated parent who is being assessed for
purposes of providing day-to-day care of a child temporarily or permanently under section
260C.212, subdivision 4, and any member of the parent's household who is over the age of
13 when there is a reasonable cause to believe that the parent or household member over
age 13 has a criminal history or a history of maltreatment of a child or vulnerable adult
which would endanger the child's health, safety, or welfare;

(2) an individual whose suitability for relative placement under section 260C.212,
subdivision 5, is being determined and any member of the relative's household who is
over the age of 13 when:

(i) the relative must be licensed for foster care; or

(ii) the deleted text begin agency must conduct a deleted text end background study new text begin is required new text end under section 259.53,
subdivision 2; or

(iii) the agency new text begin or the commissioner new text end has reasonable cause to believe the relative
or household member over the age of 13 has a criminal history which would not make
transfer of permanent legal and physical custody to the relative under section 260C.201,
subdivision 11, in the child's best interest; and

(3) a parent, following an out-of-home placement, when the responsible social
services agency has reasonable cause to believe that the parent has been convicted of a
crime directly related to the parent's capacity to maintain the child's health, safety, or
welfare or the parent is the subject of an open investigation of, or has been the subject
of a substantiated allegation of, child or vulnerable-adult maltreatment within the past
ten years.

"Reasonable cause" means that the agency has received information or a report from the
subject or a third person that creates an articulable suspicion that the individual has a
history that may pose a risk to the health, safety, or welfare of the child. The information
or report must be specific to the potential subject of the background check and shall not
be based on the race, religion, ethnic background, age, class, or lifestyle of the potential
subject.

Subd. 2.

General procedures.

(a) When deleted text begin conducting deleted text end new text begin initiating new text end a background check
under subdivision 1, the agency deleted text begin may deleted text end new text begin shall new text end require the individual being assessed to provide
sufficient information to ensure an accurate assessment under this section, including:

(1) the individual's first, middle, and last name and all other names by which the
individual has been known;

(2) home address, zip code, city, county, and state of residence for the past deleted text begin ten deleted text end new text begin five new text end
years;

(3) sex;

(4) date of birth; and

(5) driver's license number or state identification number.

(b) When notified by the new text begin commissioner or the new text end responsible social services agency that
it is conducting an assessment under this section, the Bureau of Criminal Apprehension,
commissioners of health and human services, law enforcement, and county agencies must
provide the new text begin commissioner or new text end responsible social services agency or county attorney with
the following information on the individual being assessed: criminal history data, reports
about the maltreatment of adults substantiated under section 626.557, and reports of
maltreatment of minors substantiated under section 626.556.

new text begin (c) Consistent with chapters 245A and 245C and Public Law 109-248, a completed
background study is required before the approval of any foster or adoptive placement in
a related or an unrelated home.
new text end

Subd. 3.

Multistate information.

deleted text begin (a) deleted text end For deleted text begin any assessment deleted text end new text begin every background study new text end
completed under this section, deleted text begin if the responsible social services agency has reasonable
cause to believe that the individual is a multistate offender, the individual must deleted text end new text begin the subject
of the background study shall new text end provide the responsible social services agency deleted text begin or the
county attorney deleted text end with a set of classifiable fingerprints obtained from an authorized deleted text begin law
enforcement deleted text end agency. The responsible social services agency deleted text begin or county attorney may deleted text end new text begin shall
provide the fingerprints to the commissioner, and the commissioner shall new text end obtain criminal
history data from the National Criminal Records Repository by submitting the fingerprints
to the Bureau of Criminal Apprehension.

deleted text begin (b) For purposes of this subdivision, the responsible social services agency has
reasonable cause when, but not limited to:
deleted text end

deleted text begin (1) information from the Bureau of Criminal Apprehension indicates that the
individual is a multistate offender;
deleted text end

deleted text begin (2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined;
deleted text end

deleted text begin (3) the social services agency has received a report from the individual or a third
party indicating that the individual has a criminal history in a jurisdiction other than
Minnesota; or
deleted text end

deleted text begin (4) the individual is or has been a resident of a state other than Minnesota at any
time during the prior ten years.
deleted text end

Subd. 4.

Notice upon receipt.

The deleted text begin responsible social services agency deleted text end new text begin commissioner new text end
must provide the subject of the background study with the results of the study new text begin as required new text end
under deleted text begin this section within 15 business days of receipt or at least 15 days prior to the hearing
at which the results will be presented, whichever comes first. The subject may provide
written information to the agency that the results are incorrect and may provide additional
or clarifying information to the agency and to the court through a party to the proceeding.
This provision does not apply to any background study conducted under chapters 245A
and deleted text end new text begin chapter new text end 245C.

Sec. 31.

Minnesota Statutes 2006, section 260C.212, subdivision 2, is amended to read:

Subd. 2.

Placement decisions based on best interest of the child.

(a) The policy
of the state of Minnesota is to ensure that the child's best interests are met by requiring an
individualized determination of the needs of the child and of how the selected placement
will serve the needs of the child being placed. The authorized child-placing agency shall
place a child, released by court order or by voluntary release by the parent or parents, in
a family foster home selected by considering placement with relatives and important
friends in the following order:

(1) with an individual who is related to the child by blood, marriage, or adoption; or

(2) with an individual who is an important friend with whom the child has resided or
had significant contact.

(b) Among the factors the agency shall consider in determining the needs of the
child are the following:

(1) the child's current functioning and behaviors;

(2) the medical, educational, and developmental needs of the child;

(3) the child's history and past experience;

(4) the child's religious and cultural needs;

(5) the child's connection with a community, school, and church;

(6) the child's interests and talents;

(7) the child's relationship to current caretakers, parents, siblings, and relatives; and

(8) the reasonable preference of the child, if the court, or the child-placing agency
in the case of a voluntary placement, deems the child to be of sufficient age to express
preferences.

(c) Placement of a child cannot be delayed or denied based on race, color, or national
origin of the foster parent or the child.

(d) Siblings should be placed together for foster care and adoption at the earliest
possible time unless it is determined not to be in the best interests of a sibling or unless it
is not possible after appropriate efforts by the responsible social services agency.

new text begin (e) Placement of a child in a foster or an adoptive home must be consistent with
chapters 245A and 245C and Public Law 109-248, which require a completed background
study before the approval of any foster or adoptive placement in a related or an unrelated
home.
new text end

ARTICLE 5

HEALTH CARE

Section 1.

Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to
read:

Subd. 2.

Transfers.

(a) Notwithstanding section 295.581, to the extent available
resources in the health care access fund exceed expenditures in that fund, effective with
the biennium beginning July 1, 2007, the commissioner of finance shall transfer the excess
funds from the health care access fund to the general fund on June 30 of each year,
provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000. new text begin
For the biennium ending June 30, 2009, the amount shall not exceed $126,583,000.
new text end

(b) For fiscal years 2006 to 2009, MinnesotaCare shall be a forecasted program, and,
if necessary, the commissioner shall reduce these transfers from the health care access
fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary,
transfer sufficient funds from the general fund to the health care access fund to meet
annual MinnesotaCare expenditures.

Sec. 2.

Minnesota Statutes 2006, section 256.482, subdivision 1, is amended to read:

Subdivision 1.

Establishment; members.

There is hereby established the Council
on Disability which shall consist of 21 members appointed by the governor. Members
shall be appointed from the general public and from organizations which provide services
for persons who have a disability. A majority of council members shall be persons with a
disability or parents or guardians of persons with a disability. There shall be at least
one member of the council appointed from each of the state development regions. The
commissioners of the Departments of Education, Human Services, Health, and Human
Rights and the directors of the Rehabilitation Services and State Services for the Blind in
the Department of Employment and Economic Development or their designees shall serve
as ex officio members of the council without vote. In addition, the council may appoint ex
officio members from other bureaus, divisions, or sections of state departments which are
directly concerned with the provision of services to persons with a disability.

Notwithstanding the provisions of section 15.059, each member of the council
appointed by the governor shall serve a three-year term and until a successor is appointed
and qualified. The compensation and removal of all members shall be as provided in
section 15.059. new text begin The council performs functions that are not purely advisory, therefore the
expiration dates provided in section 15.059 do not apply. new text end The governor shall appoint a
chair of the council from among the members appointed from the general public or who
are persons with a disability or their parents or guardians. Vacancies shall be filled by the
authority for the remainder of the unexpired term.

Sec. 3.

Minnesota Statutes 2006, section 256.482, subdivision 8, is amended to read:

deleted text begin Subd. 8. deleted text end

deleted text begin Sunset. deleted text end

deleted text begin Notwithstanding section deleted text begin 15.059, subdivision 5 deleted text end , the Council on
Disability shall not sunset until June 30, 2007.
deleted text end

Sec. 4.

Minnesota Statutes 2006, section 256B.0625, subdivision 18a, is amended to
read:

Subd. 18a.

Access to medical services.

(a) Medical assistance reimbursement for
meals for persons traveling to receive medical care may not exceed $5.50 for breakfast,
$6.50 for lunch, or $8 for dinner.

(b) Medical assistance reimbursement for lodging for persons traveling to receive
medical care may not exceed $50 per day unless prior authorized by the local agency.

(c) Medical assistance direct mileage reimbursement to deleted text begin the deleted text end new text begin an new text end eligible person or deleted text begin the deleted text end
new text begin an new text end eligible person's deleted text begin driver may not exceed 20 cents per mile deleted text end new text begin friend, neighbor, or relative
that is providing direct transportation to a covered service shall be at 15 cents below the
current Internal Revenue Service mileage reimbursement for business purposes new text end .

(d) Medical assistance covers oral language interpreter services when provided by
an enrolled health care provider during the course of providing a direct, person-to-person
covered health care service to an enrolled recipient with limited English proficiency.

Sec. 5.

Minnesota Statutes 2006, section 256B.76, is amended to read:

256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.

(a) Effective for services rendered on or after October 1, 1992, the commissioner
shall make payments for physician services as follows:

(1) payment for level one Centers for Medicare and Medicaid Services' common
procedural coding system codes titled "office and other outpatient services," "preventive
medicine new and established patient," "delivery, antepartum, and postpartum care,"
"critical care," cesarean delivery and pharmacologic management provided to psychiatric
patients, and level three codes for enhanced services for prenatal high risk, shall be paid
at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
30, 1992. If the rate on any procedure code within these categories is different than the
rate that would have been paid under the methodology in section 256B.74, subdivision 2,
then the larger rate shall be paid;

(2) payments for all other services shall be paid at the lower of (i) submitted charges,
or (ii) 15.4 percent above the rate in effect on June 30, 1992;

(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases
except that payment rates for home health agency services shall be the rates in effect
on September 30, 1992;

(4) effective for services rendered on or after January 1, 2000, payment rates for
physician and professional services shall be increased by three percent over the rates in
effect on December 31, 1999, except for home health agency and family planning agency
services; and

(5) the increases in clause (4) shall be implemented January 1, 2000, for managed
care.

(b) Effective for services rendered on or after October 1, 1992, the commissioner
shall make payments for dental services as follows:

(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25
percent above the rate in effect on June 30, 1992;

(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases;

(3) effective for services rendered on or after January 1, 2000, payment rates for
dental services shall be increased by three percent over the rates in effect on December
31, 1999;

(4) the commissioner shall award grants to community clinics or other nonprofit
community organizations, political subdivisions, professional associations, or other
organizations that demonstrate the ability to provide dental services effectively to public
program recipients. Grants may be used to fund the costs related to coordinating access for
recipients, developing and implementing patient care criteria, upgrading or establishing
new facilities, acquiring furnishings or equipment, recruiting new providers, or other
development costs that will improve access to dental care in a region. In awarding grants,
the commissioner shall give priority to applicants that plan to serve areas of the state in
which the number of dental providers is not currently sufficient to meet the needs of
recipients of public programs or uninsured individuals. The commissioner shall consider
the following in awarding the grants:

(i) potential to successfully increase access to an underserved population;

(ii) the ability to raise matching funds;

(iii) the long-term viability of the project to improve access beyond the period
of initial funding;

(iv) the efficiency in the use of the funding; and

(v) the experience of the proposers in providing services to the target population.

The commissioner shall monitor the grants and may terminate a grant if the grantee
does not increase dental access for public program recipients. The commissioner shall
consider grants for the following:

(i) implementation of new programs or continued expansion of current access
programs that have demonstrated success in providing dental services in underserved
areas;

(ii) a pilot program for utilizing hygienists outside of a traditional dental office to
provide dental hygiene services; and

(iii) a program that organizes a network of volunteer dentists, establishes a system to
refer eligible individuals to volunteer dentists, and through that network provides donated
dental care services to public program recipients or uninsured individuals;

(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments
shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;

(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000,
for managed care; and

(7) effective for services provided on or after January 1, 2002, payment for
diagnostic examinations and dental x-rays provided to children under age 21 shall be the
lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.

(c) Effective for dental services rendered on or after January 1, 2002, the
commissioner may deleted text begin , within the limits of available appropriation, deleted text end increase reimbursements
to dentists and dental clinics deemed by the commissioner to be critical access dental
providers. deleted text begin Reimbursement to a critical access dental provider may be increased by not
more than 50 percent above the reimbursement rate that would otherwise be paid to the
provider. Payments to deleted text end new text begin For dental services rendered after June 30, 2007, the commissioner
shall increase reimbursement by 33 percent above the reimbursement rate that would
otherwise be paid to the provider. The commissioner shall pay the new text end health plan companies
deleted text begin shall be adjusted deleted text end new text begin in amounts sufficient new text end to reflect increased reimbursements to critical
access dental providers as approved by the commissioner. In determining which dentists
and dental clinics shall be deemed critical access dental providers, the commissioner
shall review:

(1) the utilization rate in the service area in which the dentist or dental clinic operates
for dental services to patients covered by medical assistance, general assistance medical
care, or MinnesotaCare as their primary source of coverage;

(2) the level of services provided by the dentist or dental clinic to patients covered
by medical assistance, general assistance medical care, or MinnesotaCare as their primary
source of coverage; and

(3) whether the level of services provided by the dentist or dental clinic is critical to
maintaining adequate levels of patient access within the service area.

In the absence of a critical access dental provider in a service area, the commissioner may
designate a dentist or dental clinic as a critical access dental provider if the dentist or
dental clinic is willing to provide care to patients covered by medical assistance, general
assistance medical care, or MinnesotaCare at a level which significantly increases access
to dental care in the service area.

deleted text begin The commissioner shall annually establish a reimbursement schedule for critical
access dental providers and provider-specific limits on total reimbursement received
under the reimbursement schedule, and shall notify each critical access dental provider
of the schedule and limit.
deleted text end

(d) An entity that operates both a Medicare certified comprehensive outpatient
rehabilitation facility and a facility which was certified prior to January 1, 1993, that is
licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33
percent of the clients receiving rehabilitation services in the most recent calendar year are
medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation
services at rates that are 38 percent greater than the maximum reimbursement rate
allowed under paragraph (a), clause (2), when those services are (1) provided within the
comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing
facilities owned by the entity.

(e) Effective for services rendered on or after January 1, 2007, the commissioner
shall make payments for physician and professional services based on the Medicare
relative value units (RVU's). This change shall be budget neutral and the cost of
implementing RVU's will be incorporated in the established conversion factor.

Sec. 6.

Minnesota Statutes 2006, section 256L.11, subdivision 7, is amended to read:

Subd. 7.

Critical access dental providers.

Effective for dental services provided
to MinnesotaCare enrollees deleted text begin on or after deleted text end new text begin between new text end January 1, 2007, new text begin and June 30, 2007, new text end the
commissioner shall increase payment rates to dentists and dental clinics deemed by the
commissioner to be critical access providers under section 256B.76, paragraph (c), by 50
percent above the payment rate that would otherwise be paid to the provider. new text begin Effective
for dental services provided to MinnesotaCare enrollees on or after July 1, 2007, the
commissioner shall increase payment rates to dentists and dental clinics deemed by the
commissioner to be critical access providers under section 256B.76, paragraph (c), by
33 percent above the payment rate that would otherwise be paid to the provider. new text end The
commissioner shall deleted text begin adjust the rates paid on or after January 1, 2007, to deleted text end new text begin pay the new text end prepaid
health plans under contract with the commissioner new text begin amounts sufficient new text end to reflect this rate
increase. The prepaid health plan must pass this rate increase to providers who have
been identified by the commissioner as critical access dental providers under section
256B.76, paragraph (c).

ARTICLE 6

CONTINUING CARE

Section 1.

Minnesota Statutes 2006, section 245A.02, subdivision 2, is amended to
read:

Subd. 2.

Adult.

"Adult" means a person who is 18 years old or older and who:

(1) has a mental illness, a developmental disability, a physical disability, new text begin a chronic
health condition, new text end or a functional impairment; or

(2) is chemically dependent or abuses chemicals.

Sec. 2.

Minnesota Statutes 2006, section 245A.02, subdivision 10, is amended to read:

Subd. 10.

Nonresidential program.

"Nonresidential program" means care,
supervision, rehabilitation, training or habilitation of a person provided outside the
person's own home and provided for fewer than 24 hours a day, including adult day
care programs; and chemical dependency or chemical abuse programs that are located
in a nursing home or hospital and receive public funds for providing chemical abuse or
chemical dependency treatment services under chapter 254B. Nonresidential programs
include home and community-based services new text begin funded under a federally approved home and
community-based services Medicaid waiver, day training and habilitation services, new text end and
semi-independent living services deleted text begin for persons with developmental disabilities deleted text end new text begin as identified
in chapter 245B, new text end that are provided in or outside of a person's own home.

Sec. 3.

Minnesota Statutes 2006, section 245A.02, subdivision 14, is amended to read:

Subd. 14.

Residential program.

"Residential program" means a program
that provides 24-hour-a-day care, supervision, food, lodging, rehabilitation, training,
education, habilitation, or treatment outside a person's own home, including a program
in an intermediate care facility for four or more persons with developmental disabilities;
and chemical dependency or chemical abuse programs that are located in a hospital
or nursing home and receive public funds for providing chemical abuse or chemical
dependency treatment services under chapter 254B. deleted text begin Residential programs include home
and community-based services for persons with developmental disabilities that are
provided in or outside of a person's own home.
deleted text end

Sec. 4.

Minnesota Statutes 2006, section 245A.10, subdivision 3, is amended to read:

Subd. 3.

Application fee for initial license or certification.

(a) For fees required
under subdivision 1, an applicant for an initial license or certification issued by the
commissioner shall submit a $500 application fee with each new application required
under this subdivision. The application fee shall not be prorated, is nonrefundable, and
is in lieu of the annual license or certification fee that expires on December 31. The
commissioner shall not process an application until the application fee is paid.

(b) Except as provided in clauses (1) to (3), an applicant shall apply for a license
to provide services at a specific location.

(1) For a license to provide deleted text begin waivered services to persons with developmental
disabilities or related conditions deleted text end new text begin residential-based supports and habilitation under a
federally approved home and community-based services Medicaid waiver required to be
licensed under chapter 245B new text end , an applicant shall submit an application for each county in
which the deleted text begin waivered deleted text end services will be provided.

(2) For a license to provide semi-independent living services deleted text begin to persons with
developmental disabilities or related conditions deleted text end new text begin or supported employment or crisis respite
under a federally approved home and community-based services Medicaid waiver
required to be licensed under chapter 245B new text end , an applicant shall submit a single application
to provide services statewide.

(3) For a license to provide independent living assistance for youth under section
245A.22, an applicant shall submit a single application to provide services statewide.

Sec. 5.

Minnesota Statutes 2006, section 245A.10, subdivision 4, is amended to read:

Subd. 4.

License or certification fee for certain programs.

(a) Child care centers
and programs with a licensed capacity shall pay an annual nonrefundable license or
certification fee based on the following schedule:

Licensed Capacity

Child Care Center License Fee

Other Program License Fee

	1 to 24 persons	$225		$400
	25 to 49 persons	$340		$600
	50 to 74 persons	$450		$800
	75 to 99 persons	$565		$1,000
	100 to 124 persons	$675		$1,200
	125 to 149 persons	$900		$1,400
	150 to 174 persons	$1,050		$1,600
	175 to 199 persons	$1,200		$1,800
	200 to 224 persons	$1,350		$2,000
	225 or more persons	$1,500		$2,500

(b) A day training and habilitation program serving persons with developmental
disabilities or deleted text begin related conditions deleted text end new text begin an adult day supports and habilitation program under a
federally approved home and community-based services Medicaid waiver required to be
licensed under chapter 245B, new text end shall be assessed a license fee based on the schedule in
paragraph (a) unless the license holder serves more than 50 percent of the same persons at
two or more locations in the community. When a day training and habilitation program
serves more than 50 percent of the same persons in two or more locations in a community,
the day training and habilitation program shall pay a license fee based on the licensed
capacity of the largest facility and the other facility or facilities shall be charged a license
fee based on a licensed capacity of a residential program serving one to 24 persons.

Sec. 6.

Minnesota Statutes 2006, section 245A.10, subdivision 5, is amended to read:

Subd. 5.

License or certification fee for other programs.

(a) Except as provided
in paragraphs (b) and (c), a program without a stated licensed capacity shall pay a license
or certification fee of $400.

(b) A mental health center or mental health clinic requesting certification for
purposes of insurance and subscriber contract reimbursement under Minnesota Rules,
parts 9520.0750 to 9520.0870, shall pay a certification fee of $1,000 per year. If the
mental health center or mental health clinic provides services at a primary location with
satellite facilities, the satellite facilities shall be certified with the primary location without
an additional charge.

(c) A program licensed to provide residential-based new text begin supports and new text end habilitation
services under deleted text begin the deleted text end new text begin a federally approved new text end home and community-based new text begin services Medicaid
new text end waiver deleted text begin for persons with developmental disabilities deleted text end new text begin required to be licensed under chapter
245B, new text end shall pay an annual license fee that includes a base rate of $250 plus $38 times
the number of clients served on the first day of August of the current license year.
State-operated programs are exempt from the license fee under this paragraph.

Sec. 7.

Minnesota Statutes 2006, section 245B.01, is amended to read:

245B.01 deleted text begin RULE CONSOLIDATION deleted text end new text begin PURPOSE new text end .

This chapter establishes deleted text begin new methods to ensure the quality of services to persons
with developmental disabilities, and streamlines and simplifies regulation of services
and supports for persons with developmental disabilities. Sections 245B.02 to 245B.07
establish new standards that eliminate duplication and overlap of regulatory requirements
by consolidating and replacing rule parts from four program rules. Section 245B.08
authorizes the commissioner of human services to develop and use new regulatory
strategies to maintain compliance with the streamlined requirements. deleted text end new text begin provider standards
for the health, safety, and protection of rights for people with disabilities receiving services
and supports licensed by the commissioner of human services under this chapter. The
establishment of these provider standards and the related review processes provide a
method for the commissioner to meet federal requirements for the Medicaid home and
community-based waivers for people with disabilities. The federal requirements include:
new text end

new text begin (1) the establishment of provider standards;
new text end

new text begin (2) regular reviews to ensure standards are met;
new text end

new text begin (3) analysis of findings from review activities;
new text end

new text begin (4) use of the findings to correct problems and improve services; and
new text end

new text begin (5) an annual report to the federal government on the state's progress on the items in
clauses (1) to (4).
new text end

Sec. 8.

Minnesota Statutes 2006, section 245B.02, is amended to read:

245B.02 DEFINITIONS.

Subdivision 1.

Scope.

The terms used in this chapter have the meanings given them.

new text begin Subd. 1a. new text end

new text begin Adult day supports and habilitation. new text end

new text begin "Adult day supports and
habilitation" means care, supervision, supports, or training provided at a facility-based
service site or in the community which are funded by a home and community-based
disability waiver. This service category includes the following services: structured day
programs, adult day care, prevocational services, and day training and habilitation services
for people with developmental disabilities as these terms are defined under the federal
disability waiver plan.
new text end

Subd. 2.

Applicant.

"Applicant" has the meaning given in section 245A.02,
subdivision 3.

Subd. 3.

Case manager.

"Case manager" means the individual designated by the
county board under rules of the commissioner to provide case management services as
delineated in section 256B.092 new text begin or 256B.49 new text end or successor provisions.

Subd. 4.

Consumer.

"Consumer" means a person who has been determined eligible
to receive and is receiving services or deleted text begin support for persons with developmental disabilities deleted text end new text begin
supports licensed under this chapter new text end .

Subd. 5.

Commissioner.

"Commissioner" means the commissioner of the
Department of Human Services or the commissioner's designated representative.

new text begin Subd. 5a. new text end

new text begin Crisis respite. new text end

new text begin "Crisis respite" means a services that provide specific
short term care and intervention due to a caregiver's need for relief, support, or protection
of the consumer or others living with that consumer. These services may address both
medical and behavioral needs.
new text end

Subd. 6.

Day training and habilitation services; developmental disabilities.

"Day training and habilitation services for adults with developmental disabilities" has the
meaning given in sections 252.40 to 252.46.

Subd. 7.

Department.

"Department" means the Department of Human Services.

Subd. 8.

Direct service.

"Direct service" means deleted text begin , for deleted text end new text begin supervision, care, assistance,
or training provided to new text end a consumer receiving deleted text begin residential-based services, day training and
habilitation services, or respite care services, one or more of the following: supervision,
assistance, or training deleted text end new text begin services and supports from a license holder new text end .

Subd. 9.

Health services.

"Health services" means any service or treatment
consistent with the health needs of the consumer, such as medication administration and
monitoring, medical, dental, nutritional, health monitoring, wellness education, and
exercise.

new text begin Subd. 9a. new text end

new text begin Home and community-based disability waivers. new text end

new text begin "Home
and community-based disability waivers" means federally approved home and
community-based waivers under the Social Security Act, section 1915(c), also authorized
by section 256B.092 or 256B.49 for persons with disabilities.
new text end

Subd. 10.

Incident.

"Incident" means any of the following:

(1) serious injury as determined by section 245.91, subdivision 6;

(2) a consumer's death;

(3) any medical emergencies, unexpected serious illnesses, or accidents that require
physician treatment or hospitalization;

(4) a consumer's unauthorized absence;

(5) any fires or other events that require the relocation of services for more than 24
hours, or circumstances involving a law enforcement agency or fire department related to
the health, safety, or supervision of a consumer;

(6) physical aggression by a consumer against another consumer that causes
physical pain, injury, or persistent emotional distress, including, but not limited to, hitting,
slapping, kicking, scratching, pinching, biting, pushing, and spitting;

(7) any sexual activity between consumers involving force or coercion as defined
under section 609.341, subdivisions 3 and 14; or

(8) a report of child or vulnerable adult maltreatment under section 626.556 or
626.557.

Subd. 11.

Individual service plan.

"Individual service plan" has the meaning given
in section 256B.092 new text begin or 256B.49 new text end or successor provisions.

Subd. 12.

Individual who is related.

"Individual who is related" has the meaning
given in section 245A.02, subdivision 13.

Subd. 12a.

Interdisciplinary team.

"Interdisciplinary team" means a team
composed of the case manager, the person, the person's legal representative and advocate,
if any, and representatives of providers of the service areas relevant to the needs of the
person as described in the individual service plan.

Subd. 13.

Intermediate care facility for persons with developmental disabilities.

"Intermediate care facility for persons with developmental disabilities" or "ICF/MR"
means a residential program licensed to provide services to persons with developmental
disabilities under section 252.28 and chapter 245A and a physical facility licensed as a
supervised living facility under chapter 144, which together are certified by the Department
of Health as an intermediate care facility for persons with developmental disabilities.

Subd. 14.

Least restrictive environment.

"Least restrictive environment" means
an environment where services:

(1) are delivered with minimum limitation, intrusion, disruption, or departure from
typical patterns of living available to persons without disabilities;

(2) do not subject the consumer or others to unnecessary risks to health or safety; and

(3) maximize the consumer's level of independence, productivity, and inclusion
in the community.

Subd. 15.

Legal representative.

"Legal representative" means the parent or parents
of a consumer who is under 18 years of age or a guardian, conservator, or guardian ad
litem authorized by the court, or other legally authorized representative to make decisions
about services for a consumer.

Subd. 16.

License.

"License" has the meaning given in section 245A.02,
subdivision 8.

Subd. 17.

License holder.

"License holder" has the meaning given in section
245A.02, subdivision 9.

Subd. 18.

Person with developmental disability.

"Person with developmental
disability" means a person who has been diagnosed under section 256B.092 as having
substantial limitations in present functioning, manifested as significantly subaverage
intellectual functioning, existing concurrently with demonstrated deficits in adaptive
behavior, and who manifests these conditions before the person's 22nd birthday. A person
with a related condition means a person who meets the diagnostic definition under section
252.27, subdivision 1a.

Subd. 19.

Psychotropic medication use checklist.

"Psychotropic medication use
checklist" means the psychotropic medication monitoring checklist and manual used to
govern the administration of psychotropic medications. The commissioner may revise or
update the psychotropic medication use checklist to comply with legal requirements or to
meet professional standards or guidelines deleted text begin in the area of developmental disabilities deleted text end . For
purposes of this chapter, psychotropic medication means any medication prescribed to
treat mental illness and associated behaviors or to control or alter behavior. The major
classes of psychotropic medication are antipsychotic (neuroleptic), antidepressant,
antianxiety, antimania, stimulant, and sedative or hypnotic. Other miscellaneous
medications are considered to be a psychotropic medication when they are specifically
prescribed to treat a mental illness or to control or alter behavior.

Subd. 20.

Residential-based new text begin supports and new text end habilitation.

"Residential-based
new text begin supports and new text end habilitation" means care, supervision, deleted text begin and deleted text end new text begin supports, activities, or new text end training
provided primarily in the consumer's own home or place of residence but also including
community-integrated activities following the individual service plan. deleted text begin Residential
habilitation services are provided in coordination with the provision of day training and
habilitation services for those persons receiving day training and habilitation services
under sections 252.40 to 252.46. deleted text end new text begin Residential-based supports and habilitation includes the
following home and community-based waiver services: independent living skills, foster
care, supportive living services, and in-home family supports as these terms are defined in
the federal home and community-based disability waiver plans under the Social Security
Act, section 1915(c).
new text end

Subd. 21.

Respite care.

"Respite care" has the meaning given in section 245A.02,
subdivision 15.

new text begin Subd. 21a. new text end

new text begin Restraints and restrictive interventions use standards. new text end

new text begin "Restraints
and restrictive interventions use standards" means standards governing the use of restraints
or restrictive interventions as identified in the federal home and community-based waiver
plan application. The commissioner may revise the standards to ensure compliance
with state and federal requirements to meet professional standards or consumer health
and safety.
new text end

Subd. 22.

Service.

"Service" means care, supervision, activities, or training
designed to achieve the outcomes assigned to the license holder.

Subd. 23.

Semi-independent living services or SILS

"Semi-independent living
services" or "SILS" has the meaning given in section 252.275.

Subd. 23a.

Supported employment.

"Supported employment" services include
individualized counseling, individualized job development and placement that produce an
appropriate job match for the individual and the employer, on-the-job training in work and
related work skills required for job performance, ongoing supervision and monitoring of
the person's performance, long-term support services to assure job retention, training in
related skills essential to obtaining and retaining employment such as the effective use of
community resources, use of break and lunch areas, transportation and mobility training,
and transportation between the individual's place of residence and the work place when
other forms of transportation are unavailable or inaccessible.

Subd. 24.

Volunteer.

"Volunteer" means an individual who, under the direction
of the license holder, provides direct services without pay to consumers served by the
license holder.

Sec. 9.

Minnesota Statutes 2006, section 245B.03, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

The standards in this chapter govern services to
deleted text begin persons with developmental disabilities deleted text end new text begin consumers new text end receiving services from license holders
providing deleted text begin residential-based habilitation; day training and habilitation services for adults;
supported employment; semi-independent living services; residential programs that
serve more than four consumers, including intermediate care facilities for persons with
developmental disabilities; and respite care provided outside the consumer's home for
more than four consumers at the same time at a single site. deleted text end new text begin :
new text end

new text begin (1) the following services funded by home and community-based disability waivers:
new text end

new text begin (i) residential-based supports and habilitation;
new text end

new text begin (ii) adult day supports and habilitation;
new text end

new text begin (iii) crisis respite; and
new text end

new text begin (iv) supported employment;
new text end

new text begin (2) residential services for persons with developmental disabilities, including
ICF's/MR and supervised living facilities that serve more than four persons;
new text end

new text begin (3) day training and habilitation for adults with developmental disabilities; and
new text end

new text begin (4) semi-independent living services for adults with developmental disabilities.
new text end

Sec. 10.

Minnesota Statutes 2006, section 245B.03, subdivision 2, is amended to read:

Subd. 2.

Relationship to other standards governing services deleted text begin at ICF's/MR deleted text end .

(a) ICF's/MR are exempt from:

(1) section 245B.04;

(2) section 245B.06, subdivisions 4 and 6; and

(3) section 245B.07, subdivisions 4, paragraphs (b) and (c); 7; and 8, paragraphs
(1), clause (iv), and (2).

(b) License holders also licensed under chapter 144 as a supervised living facility
are exempt from section 245B.04.

(c) Residential service sites controlled by license holders licensed under this chapter
for home and community-based waivered services for four or fewer adults are exempt
from compliance with Minnesota Rules, parts 9543.0040, subpart 2, item C; 9555.5505;
9555.5515, items B and G; 9555.5605; 9555.5705; 9555.6125, subparts 3, item C, subitem
(2), and 4 to 6; 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265;
and as provided under section 245B.06, subdivision 2, the license holder is exempt from
the program abuse prevention plans and individual abuse prevention plans otherwise
required under sections 245A.65, subdivision 2, and 626.557, subdivision 14. The
commissioner may approve alternative methods of providing overnight supervision using
the process and criteria for granting a variance in section 245A.04, subdivision 9. This
chapter does not apply to foster care homes that do not provide residential deleted text begin habilitation deleted text end
services funded under the home and community-based new text begin disability new text end waiver deleted text begin programs defined
in section 256B.092 deleted text end .

(d) Residential service sites controlled by license holders licensed under this chapter
for home and community-based waivered services for four or fewer children are exempt
from compliance with Minnesota Rules, parts 2960.3060, subpart 3, items B and C;
2960.3070; 2960.3100, subpart 1, items C, F, and I; and 2960.3210.

new text begin (e) Effective January 1, 2008, license holders who control both a freestanding adult
day care center licensed under Minnesota Rules, parts 9555.9600 to 9555.9730, and a
facility-based day training and habilitation program licensed under chapter 245B, at the
same location, are subject only to the licensure requirements under chapter 245B as an
adult day habilitation and support service provider. Other adult day care providers,
including hospitals, nursing homes, medical clinics, family homes, and freestanding
centers that are not colocated or controlled by the same license holder as a facility-based
day training and habilitation provider licensed under chapter 245B, are exempt from
licensure requirements under chapter 245B.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end The commissioner may exempt license holders from applicable standards
of this chapter when the license holder meets the standards under section 245A.09,
subdivision 7. License holders that are accredited by an independent accreditation body
shall continue to be licensed under this chapter.

deleted text begin (f) deleted text end new text begin (g) new text end License holders governed by sections 245B.02 to 245B.07 must also meet the
licensure requirements in chapter 245A.

deleted text begin (g) deleted text end new text begin (h) new text end Nothing in this chapter prohibits license holders from concurrently serving new text begin
other new text end consumers deleted text begin with and without developmental disabilities deleted text end provided this chapter's
standards are met as well as other relevant standards.

deleted text begin (h) deleted text end new text begin (i) new text end The documentation that sections 245B.02 to 245B.07 require of the license
holder meets the individual program plan required in section 256B.092 or successor
provisions.

new text begin (j) The commissioner may approve alternative methods of meeting requirements
under section 245B.07, subdivisions 4 to 9, for home and community-based disability
waiver services programs that become subject to the licensing standards of this chapter
on January 1, 2008, using the process and criteria for granting a variance in section
245A.04, subdivision 9.
new text end

Sec. 11.

Minnesota Statutes 2006, section 245B.05, subdivision 2, is amended to read:

Subd. 2.

Licensed capacity for facility-based new text begin adult new text end day deleted text begin training deleted text end new text begin supports new text end and
habilitation services.

The licensed capacity of each new text begin adult new text end day deleted text begin training deleted text end new text begin supports new text end and
habilitation service site must be determined by the amount of primary space available, the
scheduling of activities at other service sites, and the space requirements of consumers
receiving services at the site. Primary space does not include hallways, stairways, closets,
utility areas, bathrooms, kitchens, and floor areas beneath stationary equipment. A
facility-based deleted text begin day training and habilitation deleted text end site must have a minimum of 40 square feet
of primary space available for each consumer who is present at the site at any one time.
Licensed capacity under this subdivision does not apply to: (1) consumers receiving
community-based day deleted text begin training and habilitation deleted text end services; and (2) the temporary use of a
facility-based deleted text begin training and habilitation deleted text end service site for the limited purpose of providing
transportation to consumers receiving community-based day deleted text begin training and habilitation deleted text end
services from the license holder. The license holder must comply at all times with all
applicable fire and safety codes under subdivision 4 deleted text begin and adequate supervision requirements
under section 245B.055 deleted text end for all persons receiving day deleted text begin training and habilitation deleted text end services.

Sec. 12.

Minnesota Statutes 2006, section 245B.055, subdivision 1, is amended to read:

Subdivision 1.

Scope.

This section applies only to license holders that provide
day training and habilitation services new text begin to people with developmental disabilities under
sections 252.40 to 252.46 new text end .

Sec. 13.

Minnesota Statutes 2006, section 245B.06, subdivision 7, is amended to read:

Subd. 7.

Staffing requirements.

The license holder must provide supervision
to ensure the health, safety, and protection of rights of each consumer and to be able
to implement each consumer's individual service plan. Day training and habilitation
programs new text begin for people with developmental disabilities new text end must meet the minimum staffing
requirements as specified in sections 252.40 to 252.46 and rules deleted text begin promulgated deleted text end new text begin adopted new text end
under those sections.

Sec. 14.

Minnesota Statutes 2006, section 245B.06, subdivision 9, is amended to read:

Subd. 9.

Day training and habilitation service days.

Day training and habilitation
services new text begin for people with developmental disabilities new text end must meet a minimum of 195 available
service days.

Sec. 15.

Minnesota Statutes 2006, section 245B.06, subdivision 10, is amended to read:

Subd. 10.

Prohibition.

Psychotropic medication and new text begin the use of restraints and
restrictive interventions, including new text end the use of aversive and deprivation procedures, as
referenced in section 245.825 and rules promulgated under that section, cannot be used as
a substitute for adequate staffing, as punishment, or for staff convenience.

Sec. 16.

Minnesota Statutes 2006, section 245B.06, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Use of restraints and restrictive interventions. new text end

new text begin License holders shall
follow the restraints and restrictive interventions standards if implementing restraint or
restrictive interventions for nondevelopmentally disabled consumers who are not protected
under the standards in section 245.825 and rules promulgated under that section.
new text end

Sec. 17.

Minnesota Statutes 2006, section 245B.07, subdivision 4, is amended to read:

Subd. 4.

Staff qualifications.

(a) The license holder must ensure that staff is
competent through training, experience, and education to meet the consumer's needs and
additional requirements as written in the individual service plan. Staff qualifications
must be documented. Staff under 18 years of age may not perform overnight duties or
administer medication.

(b) Delivery and evaluation of services provided by the license holder to a consumer
must be coordinated by a designated person. The designated person or coordinator must
minimally have a four-year degree in a field related to service provision, and one year new text begin of
new text end work experience with consumers with deleted text begin developmental deleted text end disabilities, a two-year degree in a
field related to service provision, and two years of work experience with consumers with
deleted text begin developmental deleted text end disabilities, or a diploma in community-based deleted text begin developmental deleted text end disability
services from an accredited postsecondary institution and two years of work experience
with consumers with deleted text begin developmental deleted text end disabilities deleted text begin . deleted text end new text begin , or two years of work experience with
consumers with disabilities that at a minimum includes:
new text end

new text begin (1) duties and responsibilities for analysis of individual consumer assessments;
new text end

new text begin (2) development, implementation, and evaluation of individual consumer objectives,
supports, and methodologies; and
new text end

new text begin (3) review and analysis of individual consumer progress.
new text end

The new text begin designated new text end coordinator must provide supervision, support, and evaluation of activities
that include:

(1) oversight of the license holder's responsibilities designated in the individual
service plan;

(2) instruction and assistance to staff implementing the individual service plan areas;

(3) evaluation of the effectiveness of service delivery, methodologies, and progress
on consumer outcomes based on the condition set for objective change; and

(4) review of incident and emergency reports, identification of incident patterns, and
implementation of corrective action as necessary to reduce occurrences.

(c) The new text begin designated new text end coordinator is responsible for taking the action necessary to
facilitate the accomplishment of the outcomes for each consumer as specified in the
consumer's individual service plan.

(d) The license holder must provide for adequate supervision of direct care staff to
ensure implementation of the individual service plan.

Sec. 18.

Minnesota Statutes 2006, section 245B.07, subdivision 8, is amended to read:

Subd. 8.

Policies and procedures.

The license holder must develop and implement
the policies and procedures in paragraphs (1) to (3).

(1) Policies and procedures that promote consumer health and safety by ensuring:

(i) consumer safety in emergency situations;

(ii) consumer health through sanitary practices;

(iii) safe transportation, when the license holder is responsible for transportation of
consumers, with provisions for handling emergency situations;

(iv) a system of record keeping for both individuals and the organization, for review
of incidents and emergencies, and corrective action if needed;

(v) a plan for responding to all incidents, as defined in section 245B.02, subdivision
10, and reporting all incidents required to be reported under section 245B.05, subdivision
7;

(vi) safe medication administration as identified in section 245B.05, subdivision 5,
incorporating an observed skill assessment to ensure that staff demonstrate the ability to
administer medications consistent with the license holder's policy and procedures;

(vii) psychotropic medication monitoring when the consumer is prescribed a
psychotropic medication, including the use of the psychotropic medication use checklist new text begin
provided by the commissioner new text end . If the responsibility for implementing the psychotropic
medication use checklist has not been assigned in the individual service plan and the
consumer lives in a licensed site, the residential license holder shall be designated; and

(viii) criteria for admission or service initiation developed by the license holder.

(2) Policies and procedures that protect consumer rights and privacy by ensuring:

(i) consumer data privacy, in compliance with the Minnesota Data Practices Act,
chapter 13; and

(ii) that complaint procedures provide consumers with a simple process to bring
grievances and consumers receive a response to the grievance within a reasonable time
period. The license holder must provide a copy of the program's grievance procedure and
time lines for addressing grievances. The program's grievance procedure must permit
consumers served by the program and the authorized representatives to bring a grievance
to the highest level of authority in the program.

(3) Policies and procedures that promote continuity and quality of consumer
supports by ensuring:

(i) continuity of care and service coordination, including provisions for service
termination, temporary service suspension, and efforts made by the license holder to
coordinate services with other vendors who also provide support to the consumer. The
policy must include the following requirements:

(A) the license holder must notify the consumer or consumer's legal representative
and the consumer's case manager in writing of the intended termination or temporary
service suspension and the consumer's right to seek a temporary order staying the
termination or suspension of service according to the procedures in section 256.045,
subdivision 4a or subdivision 6, paragraph (c);

(B) notice of the proposed termination of services, including those situations that
began with a temporary service suspension, must be given at least 60 days before the
proposed termination is to become effective;

(C) the license holder must provide information requested by the consumer or
consumer's legal representative or case manager when services are temporarily suspended
or upon notice of termination;

(D) use of temporary service suspension procedures are restricted to situations in
which the consumer's behavior causes immediate and serious danger to the health and
safety of the individual or others;

(E) prior to giving notice of service termination or temporary service suspension, the
license holder must document actions taken to minimize or eliminate the need for service
termination or temporary service suspension; and

(F) during the period of temporary service suspension, the license holder will work
with the appropriate county agency to develop reasonable alternatives to protect the
individual and others; and

(ii) quality services measured through a program evaluation process including
regular evaluations of consumer satisfaction and sharing the results of the evaluations with
the consumers and legal representatives.

Sec. 19.

Minnesota Statutes 2006, section 252.32, subdivision 3, is amended to read:

Subd. 3.

Amount of support grant; use.

Support grant amounts shall be
determined by the county social service agency. Services and items purchased with a
support grant must:

(1) be over and above the normal costs of caring for the dependent if the dependent
did not have a disability;

(2) be directly attributable to the dependent's disabling condition; and

(3) enable the family to delay or prevent the out-of-home placement of the dependent.

The design and delivery of services and items purchased under this section must suit
the dependent's chronological age and be provided in the least restrictive environment
possible, consistent with the needs identified in the individual service plan.

Items and services purchased with support grants must be those for which there
are no other public or private funds available to the family. Fees assessed to parents
for health or human services that are funded by federal, state, or county dollars are not
reimbursable through this program.

In approving or denying applications, the county shall consider the following factors:

(1) the extent and areas of the functional limitations of the disabled child;

(2) the degree of need in the home environment for additional support; and

(3) the potential effectiveness of the grant to maintain and support the person in
the family environment.

The maximum monthly grant amount shall be $250 per eligible dependent, or
$3,000 per eligible dependent per state fiscal year, within the limits of available funds new text begin and
as adjusted by any legislatively authorized cost of living adjustment new text end . The county social
service agency may consider the dependent's supplemental security income in determining
the amount of the support grant.

Any adjustments to their monthly grant amount must be based on the needs of the
family and funding availability.

Sec. 20.

Minnesota Statutes 2006, section 256.975, subdivision 7, is amended to read:

Subd. 7.

Consumer information and assistance; senior linkage.

(a) The
Minnesota Board on Aging shall operate a statewide information and assistance service
to aid older Minnesotans and their families in making informed choices about long-term
care options and health care benefits. Language services to persons with limited English
language skills may be made available. The service, known as Senior LinkAge Line, must
be available during business hours through a statewide toll-free number and must also
be available through the Internet.

(b) The service must assist older adults, caregivers, and providers in accessing
information about choices in long-term care services that are purchased through private
providers or available through public options. The service must:

(1) develop a comprehensive database that includes detailed listings in both
consumer- and provider-oriented formats;

(2) make the database accessible on the Internet and through other telecommunication
and media-related tools;

(3) link callers to interactive long-term care screening tools and make these tools
available through the Internet by integrating the tools with the database;

(4) develop community education materials with a focus on planning for long-term
care and evaluating independent living, housing, and service options;

(5) conduct an outreach campaign to assist older adults and their caregivers in
finding information on the Internet and through other means of communication;

(6) implement a messaging system for overflow callers and respond to these callers
by the next business day;

(7) link callers with county human services and other providers to receive more
in-depth assistance and consultation related to long-term care options; deleted text begin and
deleted text end

(8) link callers with quality profiles for nursing facilities and other providers
developed by the commissioner of health deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) incorporate information about housing with services and consumer rights
within the MinnesotaHelp.info network long-term care database to facilitate consumer
comparison of services and costs among housing with services establishments and with
other in-home services and to support financial self-sufficiency as long as possible.
Housing with services establishments and their arranged home care providers shall provide
information to the commissioner of human services including delineation of charges for
housing, meals, supportive services, adapted daily living services, and health-related
services. The commissioner of human services and the commissioner of health shall
align data elements required by section 144G.06, the Uniform Consumer Information
Guide, and this section, to the extent possible. The commissioner of human services shall
provide the data to the Minnesota Board on Aging for inclusion in the MinnesotaHelp.info
network long-term care database.
new text end

(c) The Minnesota Board on Aging shall conduct an evaluation of the effectiveness
of the statewide information and assistance, and submit this evaluation to the legislature
by December 1, 2002. The evaluation must include an analysis of funding adequacy, gaps
in service delivery, continuity in information between the service and identified linkages,
and potential use of private funding to enhance the service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2006, section 256B.0625, subdivision 18a, is amended to
read:

Subd. 18a.

Access to medical services.

(a) Medical assistance reimbursement for
meals for persons traveling to receive medical care may not exceed $5.50 for breakfast,
$6.50 for lunch, or $8 for dinner.

(b) Medical assistance reimbursement for lodging for persons traveling to receive
medical care may not exceed $50 per day unless prior authorized by the local agency.

(c) Medical assistance direct mileage reimbursement to the eligible person or the
eligible person's driver may not exceed 20 cents per mile.

(d) new text begin Regardless of the number of employees that an enrolled health care provider
may have, new text end medical assistance covers new text begin sign and new text end oral language interpreter services when
provided by an enrolled health care provider during the course of providing a direct,
person-to-person covered health care service to an enrolled recipient with limited English
proficiency new text begin or who has a hearing loss and uses interpreting services new text end .

Sec. 22.

Minnesota Statutes 2006, section 256B.0911, is amended by adding a
subdivision to read:

new text begin Subd. 3c. new text end

new text begin Transition to housing with services. new text end

new text begin (a) Transitional consultation is
required of all prospective residents 65 years of age or older regardless of income, assets,
or funding sources before housing with services establishments offering or providing
assisted living execute a lease or contract with the prospective resident. The purpose of
transitional long-term care consultation is to support persons with current or anticipated
long-term care needs in making informed choices among options that include the most
cost-effective and least restrictive settings, and to delay spenddown to eligibility for
publicly funded programs by connecting people to alternative services in their homes
before transition to housing with services.
new text end

new text begin (b) Transitional consultation services are provided as determined by the
commissioner of human services in partnership with county long-term care consultation
units, and the Area Agencies on Aging, and are a combination of telephone-based and
in-person assistance provided under models developed by the commissioner. Transitional
consultation must be provided within five working days of the request of the prospective
resident as follows:
new text end

new text begin (1) the consultation must be provided by a qualified professional as determined by
the commissioner;
new text end

new text begin (2) the consultation must include a review of the prospective resident's reasons for
considering assisted living, the prospective resident's personal goals, a discussion of the
prospective resident's immediate and projected long-term care needs, and alternative
community services or assisted living settings that may meet the prospective resident's
needs; and
new text end

new text begin (3) the prospective resident will be informed of the availability of long term care
consultation services described in subdivision 3a that are available at no charge to the
prospective resident to assist the prospective resident in assessment and planning to meet
the prospective resident's long-term care needs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2008.
new text end

Sec. 23.

Minnesota Statutes 2006, section 256B.0915, is amended by adding a
subdivision to read:

new text begin Subd. 3h. new text end

new text begin Service rate limits; 24-hour customized living services. new text end

new text begin The payment
rates for 24-hour customized living services is a monthly rate negotiated and authorized by
the lead agency within the parameters established by the commissioner of human services.
The payment agreement must delineate the services that have been customized for each
recipient and specify the amount of each service to be provided. The lead agency shall
ensure that there is a documented need for all services authorized. The lead agency shall
not authorize 24-hour customized living services unless there is a documented need for
24-hour supervision. For purposes of this section, "24-hour supervision" means that the
recipient requires assistance due to needs related to one or more of the following:
new text end

new text begin (1) intermittent assistance with toileting or transferring;
new text end

new text begin (2) cognitive or behavioral issues;
new text end

new text begin (3) a medical condition that requires clinical monitoring; or
new text end

new text begin (4) other conditions or needs as defined by the commissioner of human services.
The lead agency shall ensure that the frequency and mode of supervision of the recipient
and the qualifications of staff providing supervision are described and meet the needs
of the recipient. Customized living services must not include rent or raw food costs.
The negotiated payment rate for 24-hour customized living services must be based on
services to be provided. Negotiated rates must not exceed payment rates for comparable
elderly waiver or medical assistance services and must reflect economies of scale. The
individually negotiated 24-hour customized living payments, in combination with the
payment for other elderly waiver services, including case management, must not exceed
the recipient's community budget cap specified in subdivision 3a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2006, section 256B.434, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Nursing facility rate increases beginning October 1, 2007, and
October 1, 2008. new text end

new text begin For the rate year beginning October 1, 2007, the commissioner shall
make available to each nursing facility reimbursed under this section operating payment
rate adjustments of up to 1.5 percent of the operating payment rates in effect on September
30, 2007. For the rate year beginning October 1, 2008, the commissioner shall make
available to each nursing facility reimbursed under this section operating payment rate
adjustments of up to 1.5 percent of the operating payment rates in effect on September
30, 2008.
new text end

Sec. 25.

Minnesota Statutes 2006, section 256B.439, subdivision 1, is amended to read:

Subdivision 1.

Development and implementation of quality profiles.

(a) The
commissioner of human services, in cooperation with the commissioner of health, shall
develop and implement a quality profile system for nursing facilities and, beginning not
later than July 1, 2004, other providers of long-term care services, except when the quality
profile system would duplicate requirements under section 256B.5011, 256B.5012, or
256B.5013. new text begin Beginning July 1, 2008, the commissioners shall include quality profiles of
nursing homes that are not medical assistance certified in the Minnesota Nursing Home
Report Card. The nonmedical assistance certified nursing homes may provide to the
commissioners information necessary to conduct consumer satisfaction surveys and to
determine other quality measures. new text end The system must be developed and implemented to the
extent possible without the collection of significant amounts of new data. To the extent
possible, the system must incorporate or be coordinated with information on quality
maintained by area agencies on aging, long-term care trade associations, and other entities.
The system must be designed to provide information on quality to:

(1) consumers and their families to facilitate informed choices of service providers;

(2) providers to enable them to measure the results of their quality improvement
efforts and compare quality achievements with other service providers; and

(3) public and private purchasers of long-term care services to enable them to
purchase high-quality care.

(b) The system must be developed in consultation with the long-term care task force,
area agencies on aging, and representatives of consumers, providers, and labor unions.
Within the limits of available appropriations, the commissioners may employ consultants
to assist with this project.

Sec. 26.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 46a. new text end

new text begin Calculation of quality add-on for October 1, 2007, and October 1,
2008. new text end

new text begin (a) The payment rate for rate years beginning October 1, 2007, and October 1,
2008, for the quality add-on, is a variable amount based on each facility's quality score.
For each rate year, the maximum quality add-on is 1.2 percent of the operating payment
rate in effect on the prior September 30. The commissioner shall determine the quality
add-on for each facility according to paragraphs (b) to (d).
new text end

new text begin (b) For each facility, the commissioner shall determine the operating payment rate in
effect on September 30, 2007, and for September 30, 2008.
new text end

new text begin (c) For each facility, the commissioner shall determine a ratio of the quality score of
the facility determined in subdivision 44, subtract 40, and then divide by 60. If this value
is less than zero, the commissioner shall use the value zero.
new text end

new text begin (d) For each facility, the quality add-on is the value determined in paragraph (b),
multiplied by the value determined in paragraph (c), multiplied by 1.2 percent.
new text end

Sec. 27.

Minnesota Statutes 2006, section 256B.5012, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin ICF/MR rate increases beginning October 1, 2007, and July 1, 2008.
new text end

new text begin For the rate year beginning October 1, 2007, the commissioner shall make available to
each intermediate care facility for persons with developmental disability and related
condition (ICF/MR) reimbursed under this section an operating payment rate adjustment
of up to two percent of the operating payment rates in effect on September 30, 2007.
For the rate year beginning July 1, 2008, the commissioner shall make available to each
ICF/MR reimbursed under this section an operating payment rate adjustment of up to two
percent of the operating payment rates in effect on June 30, 2008.
new text end

Sec. 28.

new text begin [256C.261] SERVICES FOR DEAF-BLIND PERSONS.
new text end

new text begin (a) The commissioner of human services shall combine the existing biennial base
level funding for deaf-blind services into a single grant program. At least 35 percent
of the total funding is awarded for services and other supports to deaf-blind children
and their families and at least 25 percent is awarded for services and other supports to
deaf-blind adults.
new text end

new text begin The commissioner shall award grants for the purposes of:
new text end

new text begin (1) providing services and supports to individuals who are deaf-blind; and
new text end

new text begin (2) developing and providing training to counties and the network of senior citizen
service providers. The purpose of the training grants is to teach counties how to use
existing programs that capture federal financial participation to meet the needs of eligible
deaf-blind persons and to build capacity of senior service programs to meet the needs of
seniors with a dual sensory hearing and vision loss.
new text end

new text begin (b) The commissioner may make grants:
new text end

new text begin (1) for services and training provided by organizations; and
new text end

new text begin (2) to develop and administer consumer-directed services.
new text end

new text begin (c) Any entity that is able to satisfy the grant criteria is eligible to receive a grant
under paragraph (a).
new text end

new text begin (d) Deaf-blind service providers are not required to, but may, provide intervenor
services as part of the service package provided with grant funds under this section.
new text end

Sec. 29.

Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:

Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62;

(16) day treatment services for mental illness provided under contract with the
county board;

(17) prescribed medications for persons who have been diagnosed as mentally ill as
necessary to prevent more restrictive institutionalization;

(18) psychological services, medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

(19) medical equipment not specifically listed in this paragraph when the use of
the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

(20) services performed by a certified pediatric nurse practitioner, a certified family
nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological
nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse
practitioner in independent practice, if (1) the service is otherwise covered under this
chapter as a physician service, (2) the service provided on an inpatient basis is not included
as part of the cost for inpatient services included in the operating payment rate, and (3) the
service is within the scope of practice of the nurse practitioner's license as a registered
nurse, as defined in section 148.171;

(21) services of a certified public health nurse or a registered nurse practicing in
a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171;

(22) telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b; deleted text begin and
deleted text end

(23) mental health telemedicine and psychiatric consultation as covered under
section 256B.0625, subdivisions 46 and 48 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (24) regardless of the number of employees that an enrolled health care provider
may have, sign language interpreter services when provided by an enrolled health care
provider during the course of providing a direct, person-to-person covered health care
service to an enrolled recipient who has a hearing loss and uses interpreting services.
new text end

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003:

(1) $25 for eyeglasses;

(2) $25 for nonemergency visits to a hospital-based emergency room;

(3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(4) 50 percent coinsurance on restorative dental services.

(e) Co-payments shall be limited to one per day per provider for nonpreventive visits,
eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of
general assistance medical care are responsible for all co-payments in this subdivision.
The general assistance medical care reimbursement to the provider shall be reduced by
the amount of the co-payment, except that reimbursement for prescription drugs shall not
be reduced once a recipient has reached the $12 per month maximum for prescription
drug co-payments. The provider collects the co-payment from the recipient. Providers
may not deny services to recipients who are unable to pay the co-payment, except as
provided in paragraph (f).

(f) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.

(g) Any county may, from its own resources, provide medical payments for which
state payments are not made.

(h) Chemical dependency services that are reimbursed under chapter 254B must not
be reimbursed under general assistance medical care.

(i) The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

(j) The conditions of payment for services under this subdivision are the same as the
conditions specified in rules adopted under chapter 256B governing the medical assistance
program, unless otherwise provided by statute or rule.

(k) Inpatient and outpatient payments shall be reduced by five percent, effective July
1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003,
and incorporated by reference in paragraph (i).

(l) Payments for all other health services except inpatient, outpatient, and pharmacy
services shall be reduced by five percent, effective July 1, 2003.

(m) Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

(n) A hospital receiving a reduced payment as a result of this section may apply the
unpaid balance toward satisfaction of the hospital's bad debts.

(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.

(p) Payments to managed care plans shall not be increased as a result of the removal
of the $3 nonpreventive visit co-payment effective January 1, 2006.

Sec. 30. new text begin HOUSING WITH SERVICES AND HOME CARE PROVIDERS
STUDY; REPORT.
new text end

new text begin The commissioner of human services shall conduct a study of housing with
services establishments and their arranged home care providers to assess the impact that
residents' spending down to eligibility for public programs has on public expenditures.
The preliminary results of this study shall be reported to the house and senate committees
with jurisdiction over health and human services policy and finance issues by February
15, 2008, with a final report completed by December 15, 2008. Housing with services
establishments and home care providers shall provide information upon request of the
commissioner in order to achieve study outcomes, including:
new text end

new text begin (1) length of stay of residents in the housing with services establishment;
new text end

new text begin (2) housing and services provided and related charges, payments, and payment
sources;
new text end

new text begin (3) housing and services included in base rates charged to all residents;
new text end

new text begin (4) reasons for termination of services;
new text end

new text begin (5) reasons for termination of leases;
new text end

new text begin (6) copies of contracts, agreements, and leases;
new text end

new text begin (7) resident demographics; and
new text end

new text begin (8) other information as requested by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 31. new text begin COMMUNITY SERVICES PROVIDER RATE INCREASES.
new text end

new text begin (a) The commissioner of human services shall increase reimbursement rates or rate
limits, as applicable, by two percent for the rate period beginning October 1, 2007, and the
rate period beginning July 1, 2008, effective for services rendered on or after those dates.
new text end

new text begin (b) The two percent annual rate increase described in this section shall be provided to:
new text end

new text begin (1) home and community-based waivered services for persons with developmental
disabilities or related conditions under Minnesota Statutes, section 256B.501;
new text end

new text begin (2) home and community-based waivered services for the elderly under Minnesota
Statutes, section 256B.0915;
new text end

new text begin (3) waivered services under community alternatives for disabled individuals under
Minnesota Statutes, section 256B.49;
new text end

new text begin (4) community alternative care waivered services under Minnesota Statutes, section
256B.49;
new text end

new text begin (5) traumatic brain injury waivered services under Minnesota Statutes, section
256B.49;
new text end

new text begin (6) nursing services and home health services under Minnesota Statutes, section
256B.0625, subdivision 6a;
new text end

new text begin (7) personal care services and nursing supervision of personal care services under
Minnesota Statutes, section 256B.0625, subdivision 19a;
new text end

new text begin (8) private duty nursing services under Minnesota Statutes, section 256B.0625,
subdivision 7;
new text end

new text begin (9) day training and habilitation services for adults with developmental disabilities
or related conditions under Minnesota Statutes, sections 252.40 to 252.46;
new text end

new text begin (10) alternative care services under Minnesota Statutes, section 256B.0913;
new text end

new text begin (11) adult residential program grants under Minnesota Statutes, section 245.73;
new text end

new text begin (12) adult and children's mental health grants under Minnesota Rules, parts
9535.1700 to 9535.1760;
new text end

new text begin (13) the group residential housing supplementary service rate under Minnesota
Statutes, section 256I.05, subdivision 1a;
new text end

new text begin (14) adult mental health integrated fund grants under Minnesota Statutes, section
245.4661;
new text end

new text begin (15) semi-independent living services under Minnesota Statutes, section 252.275,
including semi-independent living services funding under county social services grants
formerly funded under Minnesota Statutes, chapter 256I;
new text end

new text begin (16) community support services for deaf and hard-of-hearing adults with mental
illness who use or wish to use sign language as their primary means of communication
under Minnesota Statutes, section 256.01, subdivision 2;
new text end

new text begin (17) living skills training programs for persons with intractable epilepsy who need
assistance in the transition to independent living under Laws 1988, chapter 689;
new text end

new text begin (18) physical therapy services under Minnesota Statutes, sections 256B.0625,
subdivision 8, and 256D.03, subdivision 4;
new text end

new text begin (19) occupational therapy services under Minnesota Statutes, sections 256B.0625,
subdivision 8a, and 256D.03, subdivision 4;
new text end

new text begin (20) speech-language therapy services under Minnesota Statutes, section 256D.03,
subdivision 4, and Minnesota Rules, part 9505.0390;
new text end

new text begin (21) respiratory therapy services under Minnesota Statutes, section 256D.03,
subdivision 4, and Minnesota Rules, part 9505.0295;
new text end

new text begin (22) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917,
and 256B.0928;
new text end

new text begin (23) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233;
256C.225; Laws 1985, chapter 9, article 1; and Laws 1997, First Special Session chapter
5, section 20;
new text end

new text begin (24) children's therapeutic services and supports under Minnesota Statutes, section
256B.0943;
new text end

new text begin (25) tier I chemical health services under Minnesota Statutes, chapter 254B;
new text end

new text begin (26) consumer support grants under Minnesota Statutes, section 256.476;
new text end

new text begin (27) family support grants under Minnesota Statutes, section 252.32;
new text end

new text begin (28) continuation coverage for AIDS patients under Minnesota Statutes, section
256.9365; and
new text end

new text begin (29) prepayment demonstration project under Minnesota Statutes, section 256B.69.
new text end

ARTICLE 7

HEALTH INSURANCE

Section 1.

Minnesota Statutes 2006, section 256.01, subdivision 2b, is amended to read:

Subd. 2b.

Performance payments.

The commissioner shall develop and implement
a pay-for-performance system to provide performance payments to medical groups that
demonstrate optimum care in serving individuals with chronic diseases who are enrolled in
health care programs administered by the commissioner under chapters 256B, 256D, and
256L. new text begin The commissioner may receive any federal matching money that is made available
through the medical assistance program for managed care oversight contracted through
vendors including consumer surveys, studies, and external quality reviews as required
by the Federal Balanced Budget Act of 1997, Title 42, Code of Federal Regulations, Part
438, Subpart E. Any federal money received for managed care oversight is appropriated
to the commissioner for this purpose. The commissioner may expend the federal money
received in either year of the biennium.
new text end

Sec. 2.

Minnesota Statutes 2006, section 256B.057, subdivision 8, is amended to read:

Subd. 8.

Children under age two.

Medical assistance may be paid for a child under
two years of age whose countable family income is above 275 percent of the federal
poverty guidelines for the same size family but less than or equal to deleted text begin 280 deleted text end new text begin 305 new text end percent of the
federal poverty guidelines for the same size family.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, or upon federal
approval, whichever is later. The commissioner of human services shall notify the Office
of the Revisor of Statutes when federal approval is obtained.
new text end

Sec. 3.

Minnesota Statutes 2006, section 256B.0625, is amended by adding a
subdivision to read:

new text begin Subd. 49. new text end

new text begin Physician-directed care coordination services. new text end

new text begin The commissioner
shall develop and implement a physician-directed care coordination program for medical
assistance recipients who are not enrolled in the prepaid medical assistance program and
who are receiving services on a fee-for-service basis. This program provides payment
to primary care clinics for care coordination for people who have complex and chronic
medical conditions. Clinics must meet certain criteria such as the capacity to develop care
plans, have a dedicated care coordinator, have an adequate number of fee-for-service
clients, evaluation mechanisms, and quality improvement processes to qualify for
reimbursement.
new text end

Sec. 4.

Minnesota Statutes 2006, section 256L.04, subdivision 1, is amended to read:

Subdivision 1.

Families with children.

(a) new text begin A child in a family with family income
equal to or less than 300 percent of the federal poverty guidelines for the applicable family
size is eligible for MinnesotaCare under this section. Adults in new text end families with children with
family income equal to or less than 275 percent of the federal poverty guidelines for the
applicable family size shall be eligible for MinnesotaCare according to this section. All
other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers
to enrollment under section 256L.07, shall apply unless otherwise specified.

(b) Parents who enroll in the MinnesotaCare program must also enroll their children,
if the children are eligible. Children may be enrolled separately without enrollment by
parents. However, if one parent in the household enrolls, both parents must enroll, unless
other insurance is available. If one child from a family is enrolled, all children must
be enrolled, unless other insurance is available. If one spouse in a household enrolls,
the other spouse in the household must also enroll, unless other insurance is available.
Families cannot choose to enroll only certain uninsured members.

(c) Beginning October 1, 2003, the dependent sibling definition no longer applies
to the MinnesotaCare program. These persons are no longer counted in the parental
household and may apply as a separate household.

(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents are
not eligible for MinnesotaCare if their gross income exceeds $50,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, or upon federal
approval, whichever is later. The commissioner of human services shall notify the Office
of the Revisor of Statutes when federal approval is obtained.
new text end

Sec. 5.

Minnesota Statutes 2006, section 256L.06, subdivision 3, is amended to read:

Subd. 3.

Commissioner's duties and payment.

(a) Premiums are dedicated to the
commissioner for MinnesotaCare.

(b) The commissioner shall develop and implement procedures to: (1) require
enrollees to report changes in income; (2) adjust sliding scale premium payments new text begin at the
time of eligibility renewal new text end , based upon both increases and decreases in enrollee income deleted text begin , at
the time the change in income is reported deleted text end ; and (3) disenroll enrollees from MinnesotaCare
for failure to pay required premiums. Failure to pay includes payment with a dishonored
check, a returned automatic bank withdrawal, or a refused credit card or debit card
payment. The commissioner may demand a guaranteed form of payment, including a
cashier's check or a money order, as the only means to replace a dishonored, returned,
or refused payment.

(c) Premiums are calculated on a calendar month basis and may be paid on a
monthly, quarterly, or semiannual basis, with the first payment due upon notice from the
commissioner of the premium amount required. The commissioner shall inform applicants
and enrollees of these premium payment options. Premium payment is required before
enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments
received before noon are credited the same day. Premium payments received after noon
are credited on the next working day.

(d) Nonpayment of the premium will result in disenrollment from the plan effective
for the calendar month for which the premium was due. Persons disenrolled for
nonpayment or who voluntarily terminate coverage from the program may not reenroll
until four calendar months have elapsed. Persons disenrolled for nonpayment who pay
all past due premiums as well as current premiums due, including premiums due for the
period of disenrollment, within 20 days of disenrollment, shall be reenrolled retroactively
to the first day of disenrollment. Persons disenrolled for nonpayment or who voluntarily
terminate coverage from the program may not reenroll for four calendar months unless
the person demonstrates good cause for nonpayment. Good cause does not exist if a
person chooses to pay other family expenses instead of the premium. The commissioner
shall define good cause in rule.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, or upon federal
approval, whichever is later. The commissioner shall notify the Office of the Revisor of
Statutes when federal approval is obtained.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256L.15, subdivision 2, is amended to read:

Subd. 2.

Sliding fee scale; monthly gross individual or family income.

(a) The
commissioner shall establish a sliding fee scale to determine the percentage of monthly
gross individual or family income that households at different income levels must pay
to obtain coverage through the MinnesotaCare program. The sliding fee scale must be
based on the enrollee's monthly gross individual or family income. The sliding fee scale
must contain separate tables based on enrollment of one, two, or three or more persons.
The sliding fee scale begins with a premium of 1.5 percent of monthly gross individual or
family income for individuals or families with incomes below the limits for the medical
assistance program for families and children in effect on January 1, 1999, and proceeds
through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 percent.
These percentages are matched to evenly spaced income steps ranging from the medical
assistance income limit for families and children in effect on January 1, 1999, to 275
percent of the federal poverty guidelines for the applicable family size, up to a family size
of five. The sliding fee scale for a family of five must be used for families of more than
five. Effective October 1, 2003, the commissioner shall increase each percentage by 0.5
percentage points for enrollees with income greater than 100 percent but not exceeding
200 percent of the federal poverty guidelines and shall increase each percentage by 1.0
percentage points for families and children with incomes greater than 200 percent of the
federal poverty guidelines. The sliding fee scale and percentages are not subject to the
provisions of chapter 14. If a family or individual reports deleted text begin increased deleted text end new text begin a change in new text end income
after enrollment, premiums shall new text begin not new text end be adjusted deleted text begin at the time the change in income is
reported deleted text end new text begin until eligibility renewal new text end .

new text begin (b) Beginning January 1, 2009, a new sliding fee scale premium schedule is
established for children. The premium schedule for children must be used in conjunction
with the premium schedule in paragraph (a) for adults to calculate a single MinnesotaCare
premium for a family. The sliding fee scale begins with a premium of $11 per child
for households with incomes equal to or greater than 150 percent of the federal poverty
guidelines. Premiums must be adjusted at evenly spaced income steps at increments of
five percent of the federal poverty guidelines to a maximum premium of $88 per child
for households with incomes equal to 300 percent of the federal poverty guidelines.
Premiums must be calculated for up to three children per family. Premiums for children
must be adjusted annually at an amount that is proportional to the annual adjustment in
premiums for adults. The sliding fee scale in this paragraph does not apply to children
enrolled under section 256L.075.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Children in families whose gross income is above deleted text begin 275 deleted text end new text begin 300 new text end percent of the
federal poverty guidelines shall pay the maximum premium. The maximum premium
is defined as a base charge for one, two, or three or more enrollees so that if all
MinnesotaCare cases paid the maximum premium, the total revenue would equal the
total cost of MinnesotaCare medical coverage and administration. In this calculation,
administrative costs shall be assumed to equal ten percent of the total. The costs of
medical coverage for pregnant women and children under age two and the enrollees in
these groups shall be excluded from the total. The maximum premium for two enrollees
shall be twice the maximum premium for one, and the maximum premium for three or
more enrollees shall be three times the maximum premium for one.

deleted text begin (c) After calculating the percentage of premium each enrollee shall pay under
paragraph (a), eight percent shall be added to the premium.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective January 1, 2009, or
upon federal approval, whichever is later. The commissioner shall notify the Office of
the Revisor of Statutes when federal approval is obtained. Paragraph (c) is effective
July 1, 2007.
new text end

ARTICLE 8

MENTAL HEALTH

Section 1.

Minnesota Statutes 2006, section 148C.11, subdivision 1, is amended to read:

Subdivision 1.

Other professionals.

(a) Nothing in this chapter prevents members
of other professions or occupations from performing functions for which they are qualified
or licensed. This exception includes, but is not limited to: licensed physicians; registered
nurses; licensed practical nurses; licensed psychological practitioners; members of
the clergy; American Indian medicine men and women; licensed attorneys; probation
officers; licensed marriage and family therapists; licensed social workers; social workers
employed by city, county, or state agencies; licensed professional counselors; licensed
school counselors; registered occupational therapists or occupational therapy assistants;
city, county, or state employees when providing assessments or case management under
Minnesota Rules, chapter 9530; and until July 1, deleted text begin 2007 deleted text end new text begin 2009 new text end , individuals providing
integrated dual-diagnosis treatment in adult mental health rehabilitative programs certified
by the Department of Human Services under section 256B.0622 or 256B.0623.

(b) Nothing in this chapter prohibits technicians and resident managers in programs
licensed by the Department of Human Services from discharging their duties as provided
in Minnesota Rules, chapter 9530.

(c) Any person who is exempt under this subdivision but who elects to obtain a
license under this chapter is subject to this chapter to the same extent as other licensees.
The board shall issue a license without examination to an applicant who is licensed or
registered in a profession identified in paragraph (a) if the applicant:

(1) shows evidence of current licensure or registration; and

(2) has submitted to the board a plan for supervision during the first 2,000 hours of
professional practice or has submitted proof of supervised professional practice that is
acceptable to the board.

(d) Any person who is exempt from licensure under this section must not use a
title incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug
counselor" or otherwise hold themselves out to the public by any title or description
stating or implying that they are engaged in the practice of alcohol and drug counseling,
or that they are licensed to engage in the practice of alcohol and drug counseling unless
that person is also licensed as an alcohol and drug counselor. Persons engaged in the
practice of alcohol and drug counseling are not exempt from the board's jurisdiction
solely by the use of one of the above titles.

Sec. 2.

Minnesota Statutes 2006, section 245.465, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Responsibility not duplicated. new text end

new text begin For individuals who have health care
coverage, the county board is not responsible for providing mental health services which
are covered by the entity that administers the individual's health care coverage.
new text end

Sec. 3.

new text begin [245.4682] MENTAL HEALTH SERVICE DELIVERY AND FINANCE
REFORM.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin The commissioner of human services shall undertake a series
of reforms to address the underlying structural, financial, and organizational problems in
Minnesota's mental health system with the goal of improving the availability, quality, and
accountability of mental health care within the state.
new text end

new text begin Subd. 2. new text end

new text begin General provisions. new text end

new text begin (a) In the design and implementation of reforms to
the mental health system, the commissioner shall:
new text end

new text begin (1) consult with consumers, families, counties, tribes, advocates, providers, and
other stakeholders;
new text end

new text begin (2) bring to the legislature, and the state Mental Health Advisory Council, by
January 15, 2008, recommendations for legislation to update the role of counties and to
clarify the case management roles and functions of health plans and counties;
new text end

new text begin (3) ensure continuity of care for persons affected by these reforms including
ensuring client choice of provider by requiring broad provider networks and developing
mechanisms to facilitate a smooth transition of service responsibilities;
new text end

new text begin (4) provide accountability for the efficient and effective use of public and private
resources in achieving positive outcomes for consumers;
new text end

new text begin (5) ensure client access to applicable protections and appeals; and
new text end

new text begin (6) make budget transfers necessary to implement the reallocation of services and
client responsibilities between counties and health care programs that do not increase the
state and county costs and efficiently allocate state funds.
new text end

new text begin (b) When making transfers under paragraph (a) necessary to implement movement
of responsibility for clients and services between counties and health care programs,
the commissioner, in consultation with counties, shall ensure that any transfer of state
grants to health care programs, including the value of case management transfer grants
under section 256B.0625, subdivision 20, does not exceed the value of the services being
transferred for the latest 12-month period for which data is available. The commissioner
may make quarterly adjustments based on the availability of additional data during the
first four quarters after the transfers first occur. If case management transfer grants under
section 256B.0625, subdivision 20, are repealed and the value, based on the last year prior
to repeal, exceeds the value of the services being transferred, the difference becomes an
ongoing part of each county's adult and children's mental health grants under sections
245.4661, 245.4889, and 256E.12.
new text end

new text begin Subd. 3. new text end

new text begin Projects for coordination of care. new text end

new text begin (a) Consistent with section 256B.69
and chapters 256D and 256L, the commissioner is authorized to solicit, approve, and
implement projects to demonstrate the integration of physical and mental health services
within prepaid health plans and their coordination with social services. The commissioner
shall require that each project be based on locally defined partnerships that include at
least one health maintenance organization, community integrated service network, or
accountable provider network authorized and operating under chapter 62D, 62N, or 62T, or
county-based purchasing entity under section 256B.692 that is eligible to contract with the
commissioner as a prepaid health plan, and the county or counties within the service area.
new text end

new text begin (b) The commissioner, in consultation with consumers, families, and their
representatives, shall:
new text end

new text begin (1) determine criteria for approving the projects and use those criteria to solicit
proposals for preferred integrated networks. The commissioner must develop criteria to
evaluate the partnership proposed by the county and prepaid health plan to coordinate
access and delivery of services. The proposal must at a minimum address how the
partnership will coordinate the provision of:
new text end

new text begin (i) client outreach and identification of health and social service needs paired with
expedited access to appropriate resources;
new text end

new text begin (ii) activities to maintain continuity of health care coverage;
new text end

new text begin (iii) children's residential mental health treatment and treatment foster care;
new text end

new text begin (iv) court-ordered assessments and treatments;
new text end

new text begin (v) prepetition screening and commitments under chapter 253B;
new text end

new text begin (vi) assessment and treatment of children identified through mental health screening
of child welfare and juvenile corrections cases;
new text end

new text begin (vii) housing; and
new text end

new text begin (viii) transportation;
new text end

new text begin (2) determine specifications for contracts with prepaid health plans to improve the
plan's ability to serve persons with mental health conditions, including specifications
addressing:
new text end

new text begin (i) early identification and intervention of physical and behavioral health problems;
new text end

new text begin (ii) communication between the enrollee and the health plan;
new text end

new text begin (iii) facilitation of enrollment for persons who are also eligible for a Medicare
special needs plan offered by the health plan;
new text end

new text begin (iv) risk screening procedures;
new text end

new text begin (v) health care coordination;
new text end

new text begin (vi) member services and access to applicable protections and appeal processes;
new text end

new text begin (vii) specialty provider networks;
new text end

new text begin (viii) transportation services;
new text end

new text begin (ix) treatment planning; and
new text end

new text begin (x) administrative simplification for providers;
new text end

new text begin (3) begin implementation of the projects no earlier than January 1, 2009, with not
more than 40 percent of the statewide population described in paragraph (c) included
during calendar year 2009 and additional individuals included in subsequent years;
new text end

new text begin (4) waive any administrative rule not consistent with the implementation of the
projects; and
new text end

new text begin (5) allow potential bidders at least 90 days to respond to the request for proposals.
new text end

new text begin (c) Notwithstanding any statute or administrative rule to the contrary, the
commissioner may enroll all persons eligible for medical assistance with serious mental
illness or emotional disturbance in the prepaid plan of their choice within the project
service area unless:
new text end

new text begin (1) the individual is eligible for home and community-based services under section
256B.092; or
new text end

new text begin (2) the individual has a basis for exclusion from the prepaid plan under section
256B.69, subdivision 4, other than disability, mental illness, or emotional disturbance.
new text end

new text begin (d) If the person described in paragraph (c) does not elect to remain in fee-for-service
medical assistance, or declines to choose a plan, the commissioner may preferentially
assign that person to the prepaid plan participating in the preferred integrated network.
The commissioner shall implement the enrollment changes within a project's service area
on the timeline specified in that project's approved application.
new text end

new text begin (e) A person enrolled in a prepaid health plan under paragraph (c) may request to
disenroll from the plan at any time.
new text end

new text begin (f) The commissioner, in consultation with consumers, families, and their
representatives, shall evaluate the projects begun in 2009, and shall refine the design of
the service integration projects before expanding the projects beyond 40 percent of the
statewide population and before expanding the number of service areas engaged in the
demonstration projects as additional qualified applicant partnerships present themselves.
new text end

new text begin (g) The commissioner shall apply for any federal waivers necessary to implement
these changes.
new text end

Sec. 4.

Minnesota Statutes 2006, section 245.4874, is amended to read:

245.4874 DUTIES OF COUNTY BOARD.

new text begin Subdivision 1. new text end

new text begin Duties of the county board. new text end

(a) The county board must:

(1) develop a system of affordable and locally available children's mental health
services according to sections 245.487 to 245.4887;

(2) establish a mechanism providing for interagency coordination as specified in
section 245.4875, subdivision 6;

(3) consider the assessment of unmet needs in the county as reported by the local
children's mental health advisory council under section 245.4875, subdivision 5, paragraph
(b), clause (3). The county shall provide, upon request of the local children's mental health
advisory council, readily available data to assist in the determination of unmet needs;

(4) assure that parents and providers in the county receive information about how to
gain access to services provided according to sections 245.487 to 245.4887;

(5) coordinate the delivery of children's mental health services with services
provided by social services, education, corrections, health, and vocational agencies to
improve the availability of mental health services to children and the cost-effectiveness of
their delivery;

(6) assure that mental health services delivered according to sections 245.487
to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic
assessment and individual treatment plan;

(7) provide the community with information about predictors and symptoms of
emotional disturbances and how to access children's mental health services according to
sections 245.4877 and 245.4878;

(8) provide for case management services to each child with severe emotional
disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881,
subdivisions 1, 3, and 5;

(9) provide for screening of each child under section 245.4885 upon admission
to a residential treatment facility, acute care hospital inpatient treatment, or informal
admission to a regional treatment center;

(10) prudently administer grants and purchase-of-service contracts that the county
board determines are necessary to fulfill its responsibilities under sections 245.487 to
245.4887;

(11) assure that mental health professionals, mental health practitioners, and case
managers employed by or under contract to the county to provide mental health services
are qualified under section 245.4871;

(12) assure that children's mental health services are coordinated with adult mental
health services specified in sections 245.461 to 245.486 so that a continuum of mental
health services is available to serve persons with mental illness, regardless of the person's
age;

(13) assure that culturally informed mental health consultants are used as necessary
to assist the county board in assessing and providing appropriate treatment for children of
cultural or racial minority heritage; and

(14) consistent with section 245.486, arrange for or provide a children's mental
health screening to a child receiving child protective services or a child in out-of-home
placement, a child for whom parental rights have been terminated, a child found to be
delinquent, and a child found to have committed a juvenile petty offense for the third or
subsequent time, unless a screening has been performed within the previous 180 days, or
the child is currently under the care of a mental health professional. The court or county
agency must notify a parent or guardian whose parental rights have not been terminated of
the potential mental health screening and the option to prevent the screening by notifying
the court or county agency in writing. The screening shall be conducted with a screening
instrument approved by the commissioner of human services according to criteria that
are updated and issued annually to ensure that approved screening instruments are valid
and useful for child welfare and juvenile justice populations, and shall be conducted
by a mental health practitioner as defined in section 245.4871, subdivision 26, or a
probation officer or local social services agency staff person who is trained in the use of
the screening instrument. Training in the use of the instrument shall include training in the
administration of the instrument, the interpretation of its validity given the child's current
circumstances, the state and federal data practices laws and confidentiality standards, the
parental consent requirement, and providing respect for families and cultural values.
If the screen indicates a need for assessment, the child's family, or if the family lacks
mental health insurance, the local social services agency, in consultation with the child's
family, shall have conducted a diagnostic assessment, including a functional assessment,
as defined in section 245.4871. The administration of the screening shall safeguard the
privacy of children receiving the screening and their families and shall comply with the
Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance
Portability and Accountability Act of 1996, Public Law 104-191. Screening results shall be
considered private data and the commissioner shall not collect individual screening results.

(b) When the county board refers clients to providers of children's therapeutic
services and supports under section 256B.0943, the county board must clearly identify
the desired services components not covered under section 256B.0943 and identify the
reimbursement source for those requested services, the method of payment, and the
payment rate to the provider.

new text begin Subd. 2. new text end

new text begin Responsibility not duplicated. new text end

new text begin For individuals who have health care
coverage, the county board is not responsible for providing mental health services which
are covered by the entity which administers the individual's health care coverage.
new text end

Sec. 5.

new text begin [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment and authority. new text end

new text begin (a) The commissioner is authorized
to make grants from available appropriations to assist:
new text end

new text begin (1) counties;
new text end

new text begin (2) Indian tribes;
new text end

new text begin (3) children's collaboratives under section 124D.23 or 245.493; or
new text end

new text begin (4) mental health service providers
new text end

new text begin for providing services to children with emotional disturbances as defined in section
245.4871, subdivision 15, and their families. The commissioner may also authorize
grants to young adults meeting the criteria for transition services in section 245.4875,
subdivision 8, and their families.
new text end

new text begin (b) Services under paragraph (a) must be designed to help each child to function and
remain with the child's family in the community and delivered consistent with the child's
treatment plan. Transition services to eligible young adults under paragraph (a) must be
designed to foster independent living in the community.
new text end

new text begin Subd. 2. new text end

new text begin Grant application and reporting requirements. new text end

new text begin To apply for a grant,
an applicant organization shall submit an application and budget for the use of the
money in the form specified by the commissioner. The commissioner shall make grants
only to entities whose applications and budgets are approved by the commissioner. In
awarding grants, the commissioner shall give priority to applications that indicate plans
to collaborate in the development, funding, and delivery of services with other agencies
in the local system of care. The commissioner shall specify requirements for reports,
including quarterly fiscal reports under section 256.01, subdivision 2, paragraph (q). The
commissioner shall require collection of data and periodic reports that the commissioner
deems necessary to demonstrate the effectiveness of each service.
new text end

Sec. 6.

Minnesota Statutes 2006, section 246.54, subdivision 1, is amended to read:

Subdivision 1.

County portion for cost of care.

Except for chemical dependency
services provided under sections 254B.01 to 254B.09, the client's county shall pay to the
state of Minnesota a portion of the cost of care provided in a regional treatment center
or a state nursing facility to a client legally settled in that county. A county's payment
shall be made from the county's own sources of revenue and payments shall deleted text begin be paid as
follows: payments to the state from the county shall deleted text end equal deleted text begin 20 percent deleted text end new text begin a percentage new text end of the
cost of care, as determined by the commissioner, for each day, or the portion thereof, that
the client spends at a regional treatment center or a state nursing facility deleted text begin . deleted text end new text begin according to
the following schedule:
new text end

new text begin (1) zero percent for the first 30 days;
new text end

new text begin (2) 20 percent for days 31 to 60; and
new text end

new text begin (3) 50 percent for any days over 60.
new text end

If payments received by the state under sections 246.50 to 246.53 exceed 80 percent
of the cost of care new text begin for days 31 to 60, or 50 percent for days over 60 new text end , the county shall be
responsible for paying the state only the remaining amount. The county shall not be
entitled to reimbursement from the client, the client's estate, or from the client's relatives,
except as provided in section 246.53. deleted text begin No such payments shall be made for any client who
was last committed prior to July 1, 1947. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 256B.0625, is amended by adding a
subdivision to read:

new text begin Subd. 5l. new text end

new text begin Intensive mental health outpatient treatment. new text end

new text begin Medical assistance
covers intensive mental health outpatient treatment for dialectical behavioral therapy for
adults. The commissioner shall establish:
new text end

new text begin (1) certification procedures to ensure that providers of these services are qualified;
and
new text end

new text begin (2) treatment protocols including required service components and criteria for
admission, continued treatment, and discharge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008, and subject to federal
approval. The commissioner shall notify the revisor of statutes when federal approval is
obtained.
new text end

Sec. 8.

Minnesota Statutes 2006, section 256B.0625, subdivision 20, is amended to
read:

Subd. 20.

Mental health case management.

(a) To the extent authorized by rule
of the state agency, medical assistance covers case management services to persons with
serious and persistent mental illness and children with severe emotional disturbance.
Services provided under this section must meet the relevant standards in sections 245.461
to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota
Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.

(b) Entities meeting program standards set out in rules governing family community
support services as defined in section 245.4871, subdivision 17, are eligible for medical
assistance reimbursement for case management services for children with severe
emotional disturbance when these services meet the program standards in Minnesota
Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.

(c) Medical assistance and MinnesotaCare payment for mental health case
management shall be made on a monthly basis. In order to receive payment for an eligible
child, the provider must document at least a face-to-face contact with the child, the child's
parents, or the child's legal representative. To receive payment for an eligible adult, the
provider must document:

(1) at least a face-to-face contact with the adult or the adult's legal representative; or

(2) at least a telephone contact with the adult or the adult's legal representative and
document a face-to-face contact with the adult or the adult's legal representative within
the preceding two months.

(d) Payment for mental health case management provided by county or state staff
shall be based on the monthly rate methodology under section 256B.094, subdivision 6,
paragraph (b), with separate rates calculated for child welfare and mental health, and
within mental health, separate rates for children and adults.

(e) Payment for mental health case management provided by Indian health services
or by agencies operated by Indian tribes may be made according to this section or other
relevant federally approved rate setting methodology.

(f) Payment for mental health case management provided by vendors who contract
with a county or Indian tribe shall be based on a monthly rate negotiated by the host county
or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same
service to other payers. If the service is provided by a team of contracted vendors, the
county or tribe may negotiate a team rate with a vendor who is a member of the team. The
team shall determine how to distribute the rate among its members. No reimbursement
received by contracted vendors shall be returned to the county or tribe, except to reimburse
the county or tribe for advance funding provided by the county or tribe to the vendor.

(g) If the service is provided by a team which includes contracted vendors, tribal
staff, and county or state staff, the costs for county or state staff participation in the team
shall be included in the rate for county-provided services. In this case, the contracted
vendor, the tribal agency, and the county may each receive separate payment for services
provided by each entity in the same month. In order to prevent duplication of services,
each entity must document, in the recipient's file, the need for team case management and
a description of the roles of the team members.

deleted text begin (h) The commissioner shall calculate the nonfederal share of actual medical
assistance and general assistance medical care payments for each county, based on the
higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999,
and transfer one-half of the result from medical assistance and general assistance medical
care to each county's mental health grants under section for calendar year 1999.
The annualized minimum amount added to each county's mental health grant shall be
$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce
the statewide growth factor in order to fund these minimums. The annualized total amount
transferred shall become part of the base for future mental health grants for each county.
deleted text end

deleted text begin (i) deleted text end new text begin (h) new text end Notwithstanding section 256B.19, subdivision 1, the nonfederal share of
costs for mental health case management shall be provided by the recipient's county of
responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal
funds or funds used to match other federal funds. If the service is provided by a tribal
agency, the nonfederal share, if any, shall be provided by the recipient's tribe. new text begin When this
service is paid by the state without a federal share through fee-for-service, 50 percent of
the cost shall be provided by the recipient's county of responsibility.
new text end

new text begin (i) Notwithstanding any administrative rule to the contrary, prepaid medical
assistance, general assistance medical care, and MinnesotaCare include mental health case
management. When the service is provided through prepaid capitation, the nonfederal
share is paid by the state and the county pays no share.
new text end

(j) The commissioner may suspend, reduce, or terminate the reimbursement to a
provider that does not meet the reporting or other requirements of this section. The county
of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal
agency, is responsible for any federal disallowances. The county or tribe may share this
responsibility with its contracted vendors.

(k) The commissioner shall set aside a portion of the federal funds earned new text begin for county
expenditures new text end under this section to repay the special revenue maximization account under
section 256.01, subdivision 2, clause (15). The repayment is limited to:

(1) the costs of developing and implementing this section; and

(2) programming the information systems.

(l) Payments to counties and tribal agencies for case management expenditures
under this section shall only be made from federal earnings from services provided
under this section. new text begin When this service is paid by the state without a federal share through
fee-for-service, 50 percent of the cost shall be provided by the state. new text end Payments to
county-contracted vendors shall include deleted text begin both deleted text end the federal earnings new text begin , the state share, new text end and the
county share.

deleted text begin (m) Notwithstanding section , county payments for the cost of mental
health case management services provided by county or state staff shall not be made
to the commissioner of finance. For the purposes of mental health case management
services provided by county or state staff under this section, the centralized disbursement
of payments to counties under section consists only of federal earnings from
services provided under this section.
deleted text end

deleted text begin (n) deleted text end new text begin (m) new text end Case management services under this subdivision do not include therapy,
treatment, legal, or outreach services.

deleted text begin (o) deleted text end new text begin (n) new text end If the recipient is a resident of a nursing facility, intermediate care facility,
or hospital, and the recipient's institutional care is paid by medical assistance, payment
for case management services under this subdivision is limited to the last 180 days of
the recipient's residency in that facility and may not exceed more than six months in a
calendar year.

deleted text begin (p) deleted text end new text begin (o) new text end Payment for case management services under this subdivision shall not
duplicate payments made under other program authorities for the same purpose.

deleted text begin (q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes
required by this section, including changes in number of persons receiving mental health
case management, changes in hours of service per person, and changes in caseload size.
deleted text end

deleted text begin (r) For each calendar year beginning with the calendar year 2001, the annualized
amount of state funds for each county determined under paragraph (h) shall be adjusted by
the county's percentage change in the average number of clients per month who received
case management under this section during the fiscal year that ended six months prior to
the calendar year in question, in comparison to the prior fiscal year.
deleted text end

deleted text begin (s) For counties receiving the minimum allocation of $3,000 or $5,000 described
in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county
receives the higher of the following amounts:
deleted text end

deleted text begin (1) a continuation of the minimum allocation in paragraph (h); or
deleted text end

deleted text begin (2) an amount based on that county's average number of clients per month who
received case management under this section during the fiscal year that ended six months
prior to the calendar year in question, times the average statewide grant per person per
month for counties not receiving the minimum allocation.
deleted text end

deleted text begin (t) The adjustments in paragraphs (s) and (t) shall be calculated separately for
children and adults.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, except the
amendments to paragraphs (h), (r), (s), and (t) are effective January 1, 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 256B.0943, subdivision 8, is amended to read:

Subd. 8.

Required preservice and continuing education.

(a) A provider entity
shall establish a plan to provide preservice and continuing education for staff. The plan
must clearly describe the type of training necessary to maintain current skills and obtain
new skills and that relates to the provider entity's goals and objectives for services offered.

(b) A provider that employs a mental health behavioral aide under this section must
require the mental health behavioral aide to complete 30 hours of preservice training. The
preservice training must include topics specified in Minnesota Rules, part 9535.4068,
subparts 1 and 2, and parent team training. The preservice training must include 15 hours
of in-person training of a mental health behavioral aide in mental health services delivery
and eight hours of parent team training. new text begin Curricula for parent team training must be
approved in advance by the commissioner. new text end Components of parent team training include:

(1) partnering with parents;

(2) fundamentals of family support;

(3) fundamentals of policy and decision making;

(4) defining equal partnership;

(5) complexities of the parent and service provider partnership in multiple service
delivery systems due to system strengths and weaknesses;

(6) sibling impacts;

(7) support networks; and

(8) community resources.

(c) A provider entity that employs a mental health practitioner and a mental health
behavioral aide to provide children's therapeutic services and supports under this section
must require the mental health practitioner and mental health behavioral aide to complete
20 hours of continuing education every two calendar years. The continuing education
must be related to serving the needs of a child with emotional disturbance in the child's
home environment and the child's family. The topics covered in orientation and training
must conform to Minnesota Rules, part 9535.4068.

(d) The provider entity must document the mental health practitioner's or mental
health behavioral aide's annual completion of the required continuing education. The
documentation must include the date, subject, and number of hours of the continuing
education, and attendance records, as verified by the staff member's signature, job
title, and the instructor's name. The provider entity must keep documentation for each
employee, including records of attendance at professional workshops and conferences,
at a central location and in the employee's personnel file.

Sec. 10.

Minnesota Statutes 2006, section 256B.0945, subdivision 4, is amended to
read:

Subd. 4.

Payment rates.

(a) Notwithstanding sections 256B.19 and 256B.041,
payments to counties for residential services provided by a residential facility shall only
be made of federal earnings for services provided under this section, and the nonfederal
share of costs for services provided under this section shall be paid by the county from
sources other than federal funds or funds used to match other federal funds. Payment to
counties for services provided according to this section shall be a proportion of the per
day contract rate that relates to rehabilitative mental health services and shall not include
payment for costs or services that are billed to the IV-E program as room and board.

(b) new text begin Per diem rates paid to providers under this section by prepaid plans shall be the
proportion of the per-day contract rate that relates to rehabilitative mental health services
and shall not include payment for group foster care costs or services that are billed to the
county of financial responsibility.
new text end

new text begin (c) new text end The commissioner shall set aside a portion not to exceed five percent of the
federal funds earned new text begin for county expenditures new text end under this section to cover the state costs of
administering this section. Any unexpended funds from the set-aside shall be distributed
to the counties in proportion to their earnings under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 11.

Minnesota Statutes 2006, section 256B.69, subdivision 4, is amended to read:

Subd. 4.

Limitation of choice.

(a) The commissioner shall develop criteria to
determine when limitation of choice may be implemented in the experimental counties.
The criteria shall ensure that all eligible individuals in the county have continuing access
to the full range of medical assistance services as specified in subdivision 6.

(b) The commissioner shall exempt the following persons from participation in the
project, in addition to those who do not meet the criteria for limitation of choice:

(1) persons eligible for medical assistance according to section 256B.055,
subdivision 1;

(2) persons eligible for medical assistance due to blindness or disability as
determined by the Social Security Administration or the state medical review team, unless:

(i) they are 65 years of age or older; or

(ii) they reside in Itasca County or they reside in a county in which the commissioner
conducts a pilot project under a waiver granted pursuant to section 1115 of the Social
Security Act;

(3) recipients who currently have private coverage through a health maintenance
organization;

(4) recipients who are eligible for medical assistance by spending down excess
income for medical expenses other than the nursing facility per diem expense;

(5) recipients who receive benefits under the Refugee Assistance Program,
established under United States Code, title 8, section 1522(e);

(6) new text begin except children who are eligible for and who decline enrollment in an approved
preferred integrated network under section 245.4682, new text end children who are both determined to
be severely emotionally disturbed and receiving case management services according to
section 256B.0625, subdivision 20;

deleted text begin (7) deleted text end adults who are both determined to be seriously and persistently mentally ill and
received case management services according to section 256B.0625, subdivision 20;

deleted text begin (8) deleted text end new text begin (7) new text end persons eligible for medical assistance according to section 256B.057,
subdivision 10; and

deleted text begin (9) deleted text end new text begin (8) new text end persons with access to cost-effective employer-sponsored private health
insurance or persons enrolled in a non-Medicare individual health plan determined to be
cost-effective according to section 256B.0625, subdivision 15.

Children under age 21 who are in foster placement may enroll in the project on an elective
basis. Individuals excluded under clauses (1) deleted text begin , deleted text end new text begin and new text end (6) deleted text begin , and (7) deleted text end may choose to enroll on an
elective basis. The commissioner may enroll recipients in the prepaid medical assistance
program for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by
spending down excess income.

(c) The commissioner may allow persons with a one-month spenddown who are
otherwise eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay
their monthly spenddown to the state.

(d) The commissioner may require those individuals to enroll in the prepaid medical
assistance program who otherwise would have been excluded under paragraph (b), clauses
(1), (3), and deleted text begin (8) deleted text end new text begin (7) new text end , and under Minnesota Rules, part 9500.1452, subpart 2, items H,
K, and L.

(e) Before limitation of choice is implemented, eligible individuals shall be notified
and after notification, shall be allowed to choose only among demonstration providers.
The commissioner may assign an individual with private coverage through a health
maintenance organization, to the same health maintenance organization for medical
assistance coverage, if the health maintenance organization is under contract for medical
assistance in the individual's county of residence. After initially choosing a provider,
the recipient is allowed to change that choice only at specified times as allowed by the
commissioner. If a demonstration provider ends participation in the project for any reason,
a recipient enrolled with that provider must select a new provider but may change providers
without cause once more within the first 60 days after enrollment with the second provider.

(f) An infant born to a woman who is eligible for and receiving medical assistance
and who is enrolled in the prepaid medical assistance program shall be retroactively
enrolled to the month of birth in the same managed care plan as the mother once the
child is enrolled in medical assistance unless the child is determined to be excluded from
enrollment in a prepaid plan under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 12.

Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:

Subd. 5g.

Payment for covered services.

For services rendered on or after January
1, 2003, the total payment made to managed care plans for providing covered services
under the medical assistance and general assistance medical care programs is reduced by
.5 percent from their current statutory rates. This provision excludes payments for nursing
home services, home and community-based waivers, deleted text begin and deleted text end payments to demonstration
projects for persons with disabilities new text begin , and mental health services added as covered benefits
after December 31, 2007 new text end .

Sec. 13.

Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:

Subd. 5h.

Payment reduction.

In addition to the reduction in subdivision 5g,
the total payment made to managed care plans under the medical assistance program is
reduced 1.0 percent for services provided on or after October 1, 2003, and an additional
1.0 percent for services provided on or after January 1, 2004. This provision excludes
payments for nursing home services, home and community-based waivers, deleted text begin and deleted text end payments
to demonstration projects for persons with disabilities new text begin , and mental health services added as
covered benefits after December 31, 2007 new text end .

Sec. 14.

Minnesota Statutes 2006, section 256B.763, is amended to read:

256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.

(a) For services defined in paragraph (b) and rendered on or after July 1, 2007,
payment rates shall be increased by 23.7 percent over the rates in effect on January 1,
2006, for:

(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;

(2) community mental health centers under section 256B.0625, subdivision 5; and

(3) mental health clinics and centers certified under Minnesota Rules, parts
9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated
as essential community providers under section 62Q.19.

(b) This increase applies to group skills training when provided as a component of
children's therapeutic services and support, psychotherapy, medication management,
evaluation and management, diagnostic assessment, explanation of findings, psychological
testing, neuropsychological services, direction of behavioral aides, and inpatient
consultation.

(c) This increase does not apply to rates that are governed by section 256B.0625,
subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are
negotiated with the county, rates that are established by the federal government, or rates
that increased between January 1, 2004, and January 1, 2005.

(d) The commissioner shall adjust rates paid to prepaid health plans under contract
with the commissioner to reflect the rate increases provided in deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin ,
(e), and (f) new text end . The prepaid health plan must pass this rate increase to the providers identified
in deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin , (e), and (f) new text end .

new text begin (e) Payment rates shall be increased by 23.7 percent over the rates in effect on
January 1, 2006, for:
new text end

new text begin (1) medication education services provided on or after January 1, 2008, by adult
rehabilitative mental health services providers certified under section 256B.0623; and
new text end

new text begin (2) mental health behavioral aide services provided on or after January 1, 2008, by
children's therapeutic services and support providers certified under section 256B.0943.
new text end

new text begin (f) For services defined in paragraph (b) and rendered on or after January 1, 2008, by
children's therapeutic services and support providers certified under section 256B.0943
and not already included in paragraph (a), payment rates shall be increased by 23.7 percent
over the rates in effect on January 1, 2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 15.

Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:

Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) deleted text begin outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62 deleted text end new text begin mental health
services covered under chapter 256B new text end ;

deleted text begin (16) day treatment services for mental illness provided under contract with the
county board;
deleted text end

deleted text begin (17) deleted text end new text begin (16) new text end prescribed medications for persons who have been diagnosed as mentally
ill as necessary to prevent more restrictive institutionalization;

deleted text begin (18) psychological services, deleted text end new text begin (17) new text end medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

deleted text begin (19) deleted text end new text begin (18) new text end medical equipment not specifically listed in this paragraph when the use
of the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

deleted text begin (20) deleted text end new text begin (19) new text end services performed by a certified pediatric nurse practitioner, a
certified family nurse practitioner, a certified adult nurse practitioner, a certified
obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a
certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise
covered under this chapter as a physician service, (2) the service provided on an inpatient
basis is not included as part of the cost for inpatient services included in the operating
payment rate, and (3) the service is within the scope of practice of the nurse practitioner's
license as a registered nurse, as defined in section 148.171;

deleted text begin (21) deleted text end new text begin (20) new text end services of a certified public health nurse or a registered nurse practicing
in a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171; new text begin and
new text end

deleted text begin (22) deleted text end new text begin (21) new text end telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (23) mental health telemedicine and psychiatric consultation as covered under
section deleted text begin 256B.0625, subdivisions 46 and 48 deleted text end .
deleted text end

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003:

(1) $25 for eyeglasses;

(2) $25 for nonemergency visits to a hospital-based emergency room;

(3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(4) 50 percent coinsurance on restorative dental services.

(e) Co-payments shall be limited to one per day per provider for nonpreventive visits,
eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of
general assistance medical care are responsible for all co-payments in this subdivision.
The general assistance medical care reimbursement to the provider shall be reduced by
the amount of the co-payment, except that reimbursement for prescription drugs shall not
be reduced once a recipient has reached the $12 per month maximum for prescription
drug co-payments. The provider collects the co-payment from the recipient. Providers
may not deny services to recipients who are unable to pay the co-payment, except as
provided in paragraph (f).

(f) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.

(g) Any county may, from its own resources, provide medical payments for which
state payments are not made.

(h) Chemical dependency services that are reimbursed under chapter 254B must not
be reimbursed under general assistance medical care.

(i) The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

(j) The conditions of payment for services under this subdivision are the same as the
conditions specified in rules adopted under chapter 256B governing the medical assistance
program, unless otherwise provided by statute or rule.

(k) Inpatient and outpatient payments shall be reduced by five percent, effective July
1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003,
and incorporated by reference in paragraph (i).

(l) Payments for all other health services except inpatient, outpatient, and pharmacy
services shall be reduced by five percent, effective July 1, 2003.

(m) Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

(n) A hospital receiving a reduced payment as a result of this section may apply the
unpaid balance toward satisfaction of the hospital's bad debts.

(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.

(p) Payments to managed care plans shall not be increased as a result of the removal
of the $3 nonpreventive visit co-payment effective January 1, 2006.

new text begin (q) Payments for mental health services added as covered benefits after December
31, 2007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, except mental
health case management under paragraph (a)(i)(15) is effective January 1, 2009.
new text end

Sec. 16.

Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:

Subdivision 1.

Covered health services.

For individuals under section 256L.04,
subdivision 7, with income no greater than 75 percent of the federal poverty guidelines
or for families with children under section 256L.04, subdivision 1, all subdivisions of
this section apply. "Covered health services" means the health services reimbursed
under chapter 256B, with the exception of inpatient hospital services, special education
services, private duty nursing services, adult dental care services other than services
covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency
medical transportation services, personal care assistant and case management services,
nursing home or intermediate care facilities services, inpatient mental health services,
and chemical dependency services. deleted text begin Outpatient mental health services covered under the
MinnesotaCare program are limited to diagnostic assessments, psychological testing,
explanation of findings, mental health telemedicine, psychiatric consultation, medication
management by a physician, day treatment, partial hospitalization, and individual, family,
and group psychotherapy.
deleted text end

No public funds shall be used for coverage of abortion under MinnesotaCare
except where the life of the female would be endangered or substantial and irreversible
impairment of a major bodily function would result if the fetus were carried to term; or
where the pregnancy is the result of rape or incest.

Covered health services shall be expanded as provided in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, except coverage for
mental health case management under subdivision 1 is effective January 1, 2009.
new text end

Sec. 17.

Minnesota Statutes 2006, section 256L.035, is amended to read:

256L.035 LIMITED BENEFITS COVERAGE FOR CERTAIN SINGLE
ADULTS AND HOUSEHOLDS WITHOUT CHILDREN.

(a) "Covered health services" for individuals under section 256L.04, subdivision
7, with income above 75 percent, but not exceeding 175 percent, of the federal poverty
guideline means:

(1) inpatient hospitalization benefits with a ten percent co-payment up to $1,000 and
subject to an annual limitation of $10,000;

(2) physician services provided during an inpatient stay; and

(3) physician services not provided during an inpatient stay; outpatient hospital
services; freestanding ambulatory surgical center services; chiropractic services; lab and
diagnostic services; diabetic supplies and equipment; new text begin mental health services as covered
under chapter 256B; new text end and prescription drugs; subject to the following co-payments:

(i) $50 co-pay per emergency room visit;

(ii) $3 co-pay per prescription drug; and

(iii) $5 co-pay per nonpreventive visit.

The services covered under this section may be provided by a physician, physician
ancillary, chiropractor, psychologist, deleted text begin or deleted text end licensed independent clinical social worker new text begin , or
other mental health providers covered under chapter 256B new text end if the services are within the
scope of practice of that health care professional.

For purposes of this section, "a visit" means an episode of service which is required
because of a recipient's symptoms, diagnosis, or established illness, and which is delivered
in an ambulatory setting by any health care provider identified in this paragraph.

Enrollees are responsible for all co-payments in this section.

(b) Reimbursement to the providers shall be reduced by the amount of the
co-payment, except that reimbursement for prescription drugs shall not be reduced once a
recipient has reached the $20 per month maximum for prescription drug co-payments.
The provider collects the co-payment from the recipient. Providers may not deny services
to recipients who are unable to pay the co-payment, except as provided in paragraph (c).

(c) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, except coverage
for mental health case management under paragraph (a), clause (3), is effective January
1, 2009.
new text end

Sec. 18.

Minnesota Statutes 2006, section 256L.12, subdivision 9a, is amended to read:

Subd. 9a.

Rate setting; ratable reduction.

For services rendered on or after
October 1, 2003, the total payment made to managed care plans under the MinnesotaCare
program is reduced 1.0 percent. new text begin This provision excludes payments for mental health
services added as covered benefits after December 31, 2007.
new text end

Sec. 19.

Minnesota Statutes 2006, section 609.115, subdivision 9, is amended to read:

Subd. 9.

Compulsive gambling assessment required.

(a) If a person is convicted
of theft under section 609.52, embezzlement of public funds under section 609.54, or
forgery under section 609.625, 609.63, or 609.631, the probation officer shall determine in
the report prepared under subdivision 1 whether or not compulsive gambling contributed
to the commission of the offense. If so, the report shall contain the results of a compulsive
gambling assessment conducted in accordance with this subdivision. The probation officer
shall make an appointment for the offender to undergo the assessment if so indicated.

(b) The compulsive gambling assessment report must include a recommended level
of treatment for the offender if the assessor concludes that the offender is in need of
compulsive gambling treatment. The assessment must be conducted by an assessor
qualified new text begin either new text end under deleted text begin section 245.98, subdivision 2a deleted text end new text begin Minnesota Rules, part 9585.0040,
subpart 1, item C, or qualifications determined to be equivalent by the commissioner new text end , to
perform these assessments or to provide compulsive gambling treatment. An assessor
providing a compulsive gambling assessment may not have any direct or shared financial
interest or referral relationship resulting in shared financial gain with a treatment provider.
If an independent assessor is not available, the probation officer may use the services of an
assessor with a financial interest or referral relationship as authorized under rules adopted
by the commissioner of human services under section 245.98, subdivision 2a.

(c) The commissioner of human services shall reimburse the assessor for deleted text begin the costs
associated with a deleted text end new text begin each new text end compulsive gambling assessment at a rate established by the
commissioner deleted text begin up to a maximum of $100 for each assessment deleted text end . The commissioner shall
reimburse deleted text begin these costs deleted text end new text begin the assessor new text end after receiving written verification from the probation
officer that the assessment was performed and found acceptable.

Sec. 20.

Laws 2005, chapter 98, article 3, section 25, is amended to read:

Sec. 25. REPEALER.

Minnesota Statutes 2004, sections 245.713, deleted text begin subdivisions 2 and deleted text end new text begin subdivision new text end 4;
245.716; and 626.5551, subdivision 4, are repealed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 1, 2005.
new text end

Sec. 21. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) In the next edition of Minnesota Statutes, the revisor of statutes shall change the
references to sections "245.487 to 245.4887" wherever it appears in statutes or rules to
sections "245.487 to 245.4889."
new text end

new text begin (b) The revisor of statutes shall correct all internal references that are necessary
from the relettering in section 8.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 9585.0030, new text end new text begin is repealed.
new text end

ARTICLE 9

DEPARTMENT OF HEALTH

Section 1.

Minnesota Statutes 2006, section 13.46, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Unless the data is summary data or a statute specifically
provides a different classification, data on individuals collected, maintained, used, or
disseminated by the welfare system is private data on individuals, and shall not be
disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney,
or investigator acting for it in the investigation or prosecution of a criminal or civil
proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to
an individual or family across programs; evaluate the effectiveness of programs; and
investigate suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to administer and evaluate tax refund or tax credit
programs and to identify individuals who may benefit from these programs. The following
information may be disclosed under this paragraph: an individual's and their dependent's
names, dates of birth, Social Security numbers, income, addresses, and other data as
required, upon request by the Department of Revenue. Disclosures by the commissioner
of revenue to the commissioner of human services for the purposes described in this clause
are governed by section 270B.14, subdivision 1. Tax refund or tax credit programs include,
but are not limited to, the dependent care credit under section 290.067, the Minnesota
working family credit under section 290.0671, the property tax refund and rental credit
under section 290A.04, and the Minnesota education credit under section 290.0674;

(9) between the Department of Human Services, the Department of Education, and
the Department of Employment and Economic Development for the purpose of monitoring
the eligibility of the data subject for unemployment benefits, for any employment or
training program administered, supervised, or certified by that agency, for the purpose of
administering any rehabilitation program or child care assistance program, whether alone
or in conjunction with the welfare system, or to monitor and evaluate the Minnesota
family investment program by exchanging data on recipients and former recipients of food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(10) to appropriate parties in connection with an emergency if knowledge of
the information is necessary to protect the health or safety of the individual or other
individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may
be disclosed to the protection and advocacy system established in this state according
to Part C of Public Law 98-527 to protect the legal and human rights of persons with
developmental disabilities or other related conditions who live in residential facilities for
these persons if the protection and advocacy system receives a complaint by or on behalf
of that person and the person does not have a legal guardian or the state or a designee of
the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency
may be disclosed to the Minnesota Office of Higher Education to the extent necessary to
determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security numbers and names collected by the telephone
assistance program may be disclosed to the Department of Revenue to conduct an
electronic data match with the property tax refund database to determine eligibility under
section 237.70, subdivision 4a;

(15) the current address of a Minnesota family investment program participant
may be disclosed to law enforcement officers who provide the name of the participant
and notify the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance or general assistance
medical care may be disclosed to probation officers and corrections agents who are
supervising the recipient and to law enforcement officers who are investigating the
recipient in connection with a felony level offense;

(17) information obtained from food support applicant or recipient households may
be disclosed to local, state, or federal law enforcement officials, upon their written request,
for the purpose of investigating an alleged violation of the Food Stamp Act, according
to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security number, and, if available, photograph of any
member of a household receiving food support shall be made available, on request, to a
local, state, or federal law enforcement officer if the officer furnishes the agency with the
name of the member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal
law; or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official
duty;

(19) the current address of a recipient of Minnesota family investment program,
general assistance, general assistance medical care, or food support may be disclosed to
law enforcement officers who, in writing, provide the name of the recipient and notify the
agency that the recipient is a person required to register under section 243.166, but is not
residing at the address at which the recipient is registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on
the distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the
income of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7;

(23) to the Department of Education for the purpose of matching Department of
Education student data with public assistance data to determine students eligible for free
and reduced price meals, meal supplements, and free milk according to United States
Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and
state funds that are distributed based on income of the student's family; and to verify
receipt of energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a local board of health as
defined in section 145A.02, subdivision 2, when the commissioner or local board of health
has reason to believe that a program recipient is a disease case, carrier, suspect case, or at
risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this
state, including the attorney general, and agencies of other states, interstate information
networks, federal agencies, and other entities as required by federal regulation or law for
the administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for
access to the child support system database for the purpose of administration, including
monitoring and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by
exchanging data between the Departments of Human Services and Education, on
recipients and former recipients of food support, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, or medical programs under
chapter 256B, 256D, or 256L;

(28) to evaluate child support program performance and to identify and prevent
fraud in the child support program by exchanging data between the Department of Human
Services, Department of Revenue under section 270B.14, subdivision 1, paragraphs (a)
and (b), without regard to the limitation of use in paragraph (c), Department of Health,
Department of Employment and Economic Development, and other state agencies as is
reasonably necessary to perform these functions; deleted text begin or
deleted text end

(29) counties operating child care assistance programs under chapter 119B may
disseminate data on program participants, applicants, and providers to the commissioner
of education deleted text begin . deleted text end new text begin ; or
new text end

new text begin (30) pursuant to section 256L.02, subdivision 6, between the welfare system and
the Minnesota Health Insurance Exchange, under section 62A.67, in order to enroll and
collect premiums from individuals in the MinnesotaCare program under chapter 256L and
to administer the individual's and their families' participation in the program.
new text end

(b) Information on persons who have been treated for drug or alcohol abuse may
only be disclosed according to the requirements of Code of Federal Regulations, title
42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15),
(16), (17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing
if made through a computer interface system.

Sec. 2.

new text begin [62A.67] MINNESOTA HEALTH INSURANCE EXCHANGE.
new text end

new text begin Subdivision 1. new text end

new text begin Title; citation. new text end

new text begin This section may be cited as the "Minnesota Health
Insurance Exchange."
new text end

new text begin Subd. 2. new text end

new text begin Creation; tax exemption. new text end

new text begin The Minnesota Health Insurance Exchange
is created for the limited purpose of providing individuals with greater access, choice,
portability, and affordability of health insurance products. The Minnesota Health
Insurance Exchange is a not-for-profit corporation under chapter 317A and section 501(c)
of the Internal Revenue Code.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin The following terms have the meanings given them unless
otherwise provided in text.
new text end

new text begin (a) "Board" means the board of directors of the Minnesota Health Insurance
Exchange under subdivision 13.
new text end

new text begin (b) "Commissioner" means:
new text end

new text begin (1) the commissioner of commerce for health insurers subject to the jurisdiction
of the Department of Commerce;
new text end

new text begin (2) the commissioner of health for health insurers subject to the jurisdiction of the
Department of Health; or
new text end

new text begin (3) either commissioner's designated representative.
new text end

new text begin (c) "Exchange" means the Minnesota Health Insurance Exchange.
new text end

new text begin (d) "HIPAA" means the Health Insurance Portability and Accountability Act of 1996.
new text end

new text begin (e) "Individual market health plans," unless otherwise specified, means individual
market health plans defined in section 62A.011 and MinnesotaCare II products as defined
in chapter 256L.
new text end

new text begin (f) "Section 125 Plan" means a Premium Only Plan under section 125 of the Internal
Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Insurer and health plan participation. new text end

new text begin All health plans as defined
in section 62A.011, subdivision 3, issued or renewed in the individual market shall
participate in the exchange. No health plans in the individual market may be issued
or renewed outside of the exchange. Group health plans as defined in section 62A.10
shall not be offered through the exchange. Health plans offered through the Minnesota
Comprehensive Health Association as defined in section 62E.10 are offered through the
exchange to eligible enrollees as determined by the Minnesota Comprehensive Health
Association. Health plans offered through MinnesotaCare and MinnesotaCare II under
chapter 256L are offered through the exchange to eligible enrollees as determined by the
commissioner of human services.
new text end

new text begin Subd. 5. new text end

new text begin Approval of health plans. new text end

new text begin No health plan may be offered through the
exchange unless the commissioner has first certified that:
new text end

new text begin (1) the insurer seeking to offer the health plan is licensed to issue health insurance in
the state; and
new text end

new text begin (2) the health plan meets the requirements of this section, and the health plan and the
insurer are in compliance with all other applicable health insurance laws.
new text end

new text begin Subd. 6. new text end

new text begin Individual market health plans. new text end

new text begin Individual market health plans offered
through the exchange continue to be regulated by the commissioner as specified in
chapters 62A, 62C, 62D, 62E, 62Q, and 72A, and must include the following provisions
that apply to all health plans issued or renewed through the exchange:
new text end

new text begin (1) premiums for children under the age of 19 shall not vary by age in the exchange;
and
new text end

new text begin (2) premiums for children under the age of 19 must be excluded from rating factors
requirements under section 62A.65, subdivision 3, paragraph (b).
new text end

new text begin Subd. 7. new text end

new text begin MinnesotaCare II health plans. new text end

new text begin Health plans approved for MinnesotaCare
II under section 256L.075 shall be offered by participating insurers to exchange
participants not enrolled in MinnesotaCare II.
new text end

new text begin Subd. 8. new text end

new text begin Individual participation and eligibility. new text end

new text begin Individuals are eligible to
purchase health plans directly through the exchange or through an employer Section
125 Plan under section 62A.68. Nothing in this section requires guaranteed issue of
individual market health plans offered through the exchange. Individuals are eligible to
purchase individual market health plans through the exchange by meeting one or more
of the following qualifications:
new text end

new text begin (1) the individual is a Minnesota resident, meaning the individual is physically
residing on a permanent basis in a place that is the person's principal residence and from
which the person is absent only for temporary purposes;
new text end

new text begin (2) the individual is a student attending an institution outside of Minnesota and
maintains Minnesota residency;
new text end

new text begin (3) the individual is not a Minnesota resident but is employed by an employer
physically located within the state and the individual's employer does not offer a group
health insurance plan as defined in section 62A.10, but does offer a Section 125 Plan
through the exchange under section 62A.68;
new text end

new text begin (4) the individual is not a Minnesota resident but is self-employed and the
individual's principal place of business is in the state; or
new text end

new text begin (5) the individual is a dependent as defined in section 62L.02, of another individual
who is eligible to participate in the exchange.
new text end

new text begin Subd. 9. new text end

new text begin Continuation of coverage. new text end

new text begin Enrollment in a health plan may be canceled
for nonpayment of premiums, fraud, or changes in eligibility for MinnesotaCare under
chapter 256L. Enrollment in an individual market health plan may not be canceled or
renewed because of any change in employer or employment status, marital status, health
status, age, residence, or any other change that does not affect eligibility as defined
in this section.
new text end

new text begin Subd. 10. new text end

new text begin Responsibilities of the exchange. new text end

new text begin The exchange shall serve as the sole
entity for enrollment and collection and transfer of premium payments for health plans
offered through the exchange. The exchange shall be responsible for the following
functions:
new text end

new text begin (1) publicize the exchange, including but not limited to its functions, eligibility
rules, and enrollment procedures;
new text end

new text begin (2) provide assistance to employers to set up an employer Section 125 Plan under
section 62A.68;
new text end

new text begin (3) create a system to allow individuals to compare and enroll in health plans offered
through the exchange;
new text end

new text begin (4) create a system to collect and transmit to the applicable plans all premium
payments or contributions made by or on behalf of individuals, including developing
mechanisms to receive and process automatic payroll deductions for individuals enrolled
in employer Section 125 Plans;
new text end

new text begin (5) refer individuals interested in MinnesotaCare or MinnesotaCare II under chapter
256L to the Department of Human Services to determine eligibility;
new text end

new text begin (6) establish a mechanism with the Department of Human Services to transfer
premiums and subsidies for MinnesotaCare and MinnesotaCare II to qualify for federal
matching payments;
new text end

new text begin (7) administer bonus accounts as defined in chapter 256L to reimburse
MinnesotaCare II enrollees for qualified medical expenses under section 213(d) of the
Internal Revenue Code;
new text end

new text begin (8) collect and assess information for eligibility for bonus accounts and premium
incentives under chapter 256L;
new text end

new text begin (9) upon request, issue certificates of previous coverage according to the provisions
of HIPAA and as referenced in section 62Q.181 to all such individuals who cease to be
covered by a participating health plan through the exchange;
new text end

new text begin (10) establish procedures to account for all funds received and disbursed by the
exchange for individual participants of the exchange; and
new text end

new text begin (11) make available to the public, at the end of each calendar year, a report of an
independent audit of the exchange's accounts.
new text end

new text begin Subd. 11. new text end

new text begin Powers of the exchange. new text end

new text begin The exchange shall have the power to:
new text end

new text begin (1) contract with insurance producers licensed in accident and health insurance
under chapter 60K and vendors to perform one or more of the functions specified in
subdivision 10;
new text end

new text begin (2) contract with employers to act as the plan administrator for participating
employer Section 125 Plans and to undertake the obligations required by federal law
of a plan administrator;
new text end

new text begin (3) establish and assess fees on health plan premiums of health plans purchased
through the exchange to fund the cost of administering the exchange;
new text end

new text begin (4) seek and directly receive grant funding from government agencies or private
philanthropic organizations to defray the costs of operating the exchange;
new text end

new text begin (5) establish and administer rules and procedures governing the operations of the
exchange;
new text end

new text begin (6) establish one or more service centers within Minnesota;
new text end

new text begin (7) sue or be sued or otherwise take any necessary or proper legal action;
new text end

new text begin (8) establish bank accounts and borrow money; and
new text end

new text begin (9) enter into agreements with the commissioners of commerce, health, human
services, revenue, employment and economic development, and other state agencies as
necessary for the exchange to implement the provisions of this section.
new text end

new text begin Subd. 12. new text end

new text begin Dispute resolution. new text end

new text begin The exchange shall establish procedures for
resolving disputes with respect to the eligibility of an individual to participate in the
exchange. The exchange does not have the authority or responsibility to intervene in or
resolve disputes between an individual and a health plan or health insurer. The exchange
shall refer complaints from individuals participating in the exchange to the commissioner
of human services to be resolved according to sections 62Q.68 to 62Q.73.
new text end

new text begin Subd. 13. new text end

new text begin Governance. new text end

new text begin The exchange shall be governed by a board of directors
with 11 members. The board shall convene on or before July 1, 2007, after the initial board
members have been selected. The initial board membership consists of the following:
new text end

new text begin (1) the commissioner of commerce;
new text end

new text begin (2) the commissioner of human services;
new text end

new text begin (3) the commissioner of health;
new text end

new text begin (4) four members appointed by a joint committee of the Minnesota senate and the
Minnesota house of representatives to serve three-year terms; and
new text end

new text begin (5) four members appointed by the governor to serve three-year terms.
new text end

new text begin Subd. 14. new text end

new text begin Subsequent board membership. new text end

new text begin Ongoing membership of the exchange
consists of the following effective July 1, 2010:
new text end

new text begin (1) the commissioner of commerce;
new text end

new text begin (2) the commissioner of human services;
new text end

new text begin (3) the commissioner of health;
new text end

new text begin (4) four members appointed by the governor with the approval of a joint committee
of the senate and house of representatives to serve two- or three-year terms. Appointed
members may serve more than one term; and
new text end

new text begin (5) four members elected by the membership of the exchange of which two are
elected to serve a two-year term and two are elected to serve a three-year term. Elected
members may serve more than one term.
new text end

new text begin Subd. 15. new text end

new text begin Operations of the board. new text end

new text begin Officers of the board of directors are elected by
members of the board and serve one-year terms. Six members of the board constitutes a
quorum, and the affirmative vote of six members of the board is necessary and sufficient
for any action taken by the board. Board members serve without pay, but are reimbursed
for actual expenses incurred in the performance of their duties.
new text end

new text begin Subd. 16. new text end

new text begin Operations of the exchange. new text end

new text begin The board of directors shall appoint an
exchange director who shall:
new text end

new text begin (1) be a full-time employee of the exchange;
new text end

new text begin (2) administer all of the activities and contracts of the exchange; and
new text end

new text begin (3) hire and supervise the staff of the exchange.
new text end

new text begin Subd. 17. new text end

new text begin Insurance producers. new text end

new text begin When a producer licensed in accident and health
insurance under chapter 60K enrolls an eligible individual in the exchange, the health plan
chosen by an individual may pay the producer a commission.
new text end

new text begin Subd. 18. new text end

new text begin Implementation. new text end

new text begin Health plan coverage through the exchange begins on
January 1, 2009. The exchange must be operational to assist employers and individuals
by September 1, 2008, and be prepared for enrollment by December 1, 2008. Enrollees
of individual market health plans, MinnesotaCare, and the Minnesota Comprehensive
Health Association as of December 2, 2008, are automatically enrolled in the exchange
on January 1, 2009, in the same health plan and at the same premium that they were
enrolled as of December 2, 2008, subject to the provisions of this section. As of January 1,
2009, all enrollees of individual market health plans, MinnesotaCare, and the Minnesota
Comprehensive Health Association shall make premium payments to the exchange.
new text end

new text begin Subd. 19. new text end

new text begin Study of insurer issue requirements. new text end

new text begin In consultation with
the commissioners of commerce and health, the exchange shall study and make
recommendations on rating requirements and risk adjustment mechanisms that could
be implemented to facilitate increased enrollment in the exchange by employers and
employees through employer Section 125 Plans. The exchange shall report study findings
and recommendations to the chairs of house and senate committees having jurisdiction
over commerce and health by January 15, 2011.
new text end

Sec. 3.

new text begin [62A.68] SECTION 125 PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms have the meanings given unless
otherwise provided in text:
new text end

new text begin (a) "Current employee" means an employee currently on an employer's payroll other
than a retiree or disabled former employee.
new text end

new text begin (b) "Employer" means a person, firm, corporation, partnership, association, business
trust, or other entity employing one or more persons, including a political subdivision of
the state, filing payroll tax information on such employed person or persons.
new text end

new text begin (c) "Section 125 Plan" means a Premium Only Plan under section 125 of the Internal
Revenue Code.
new text end

new text begin (d) "Exchange" means the Minnesota Health Insurance Exchange under section
62A.67.
new text end

new text begin (e) "Exchange director" means the appointed director under section 62A.67,
subdivision 16.
new text end

new text begin Subd. 2. new text end

new text begin Section 125 Plan requirement. new text end

new text begin Effective January 1, 2009, all employers
with 11 or more current employees shall offer a Section 125 Plan through the exchange
to allow their employees to pay for health insurance premiums with pretax dollars. The
following employers are exempt from the Section 125 Plan requirement:
new text end

new text begin (1) employers that offer a group health insurance plan as defined in 62A.10;
new text end

new text begin (2) employers that offer group health insurance through a self-insured plan as
defined in section 62E.02; and
new text end

new text begin (3) employers with fewer than 11 current employees, except that employers under
this clause may voluntarily offer a Section 125 Plan.
new text end

new text begin Subd. 3. new text end

new text begin Tracking compliance. new text end

new text begin By July 1, 2008, the exchange, in consultation with
the commissioners of commerce, health, employment and economic development, and
revenue shall establish a method for tracking employer compliance with the Section 125
Plan requirement.
new text end

new text begin Subd. 4. new text end

new text begin Employer requirements. new text end

new text begin Employers that are required to offer or choose
to offer a Section 125 Plan through the exchange shall enter into an annual binding
agreement with the exchange, which includes the terms in paragraphs (a) to (h).
new text end

new text begin (a) The employer shall designate the exchange director to be the plan's administrator
for the employer's plan and the exchange director agrees to undertake the obligations
required of a plan administrator under federal law.
new text end

new text begin (b) Only the coverage and benefits offered by participating insurers in the exchange
constitutes the coverage and benefits of the participating employer plan.
new text end

new text begin (c) Any individual eligible to participate in the exchange may elect coverage under
any participating health plan for which they are eligible, and neither the employer nor
the exchange shall limit choice of coverage from among all the participating insurance
plans for which the individual is eligible.
new text end

new text begin (d) The employer shall deduct premium amounts on a pretax basis in an amount
not to exceed an employee's wages and make payments to the exchange as directed by
employees for health plans employees enroll in through the exchange.
new text end

new text begin (e) The employer shall not offer individuals eligible to participate in the exchange
any separate or competing group health plan under section 62A.10.
new text end

new text begin (f) The employer reserves the right to determine the terms and amounts of the
employer's contribution to the plan, if any.
new text end

new text begin (g) The employer shall make available to the exchange any of the employer's
documents, records, or information, including copies of the employer's federal and state
tax and wage reports that are necessary for the exchange to verify:
new text end

new text begin (1) that the employer is in compliance with the terms of its agreement with the
exchange governing the participating employer plan;
new text end

new text begin (2) that the participating employer plan is in compliance with applicable state and
federal laws, including those relating to nondiscrimination in coverage; and
new text end

new text begin (3) the eligibility of those individuals enrolled in the participating employer plan.
new text end

new text begin (h) The exchange shall not provide the participating employer plan with any
additional or different services or benefits not otherwise provided or offered to all other
participating employer plans.
new text end

new text begin Subd. 5. new text end

new text begin Section 125 eligible health plans. new text end

new text begin Individuals eligible to enroll in health
plans through an employer Section 125 Plan through the exchange may enroll in any
health plan offered through the exchange for which the individual is eligible including
individual market health plans, MinnesotaCare and MinnesotaCare II, and the Minnesota
Comprehensive Health Association.
new text end

Sec. 4.

Minnesota Statutes 2006, section 62E.141, is amended to read:

62E.141 INCLUSION IN EMPLOYER-SPONSORED PLAN.

No employee of an employer that offers a new text begin group new text end health plan, under which the
employee is eligible for coverage, is eligible to enroll, or continue to be enrolled, in
the comprehensive health association, except for enrollment or continued enrollment
necessary to cover conditions that are subject to an unexpired preexisting condition
limitation, preexisting condition exclusion, or exclusionary rider under the employer's
health plan. This section does not apply to persons enrolled in the Comprehensive Health
Association as of June 30, 1993. With respect to persons eligible to enroll in the health
plan of an employer that has more than 29 current employees, as defined in section
62L.02, this section does not apply to persons enrolled in the Comprehensive Health
Association as of December 31, 1994.

Sec. 5.

Minnesota Statutes 2006, section 62J.692, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following definitions
apply:

(a) "Accredited clinical training" means the clinical training provided by a
medical education program that is accredited through an organization recognized by the
Department of Education, the Centers for Medicare and Medicaid Services, or another
national body who reviews the accrediting organizations for multiple disciplines and
whose standards for recognizing accrediting organizations are reviewed and approved by
the commissioner of health in consultation with the Medical Education and Research
Advisory Committee.

(b) "Commissioner" means the commissioner of health.

(c) "Clinical medical education program" means the accredited clinical training of
physicians (medical students and residents), doctor of pharmacy practitioners, doctors
of chiropractic, dentists, advanced practice nurses (clinical nurse specialists, certified
registered nurse anesthetists, nurse practitioners, and certified nurse midwives), and
physician assistants.

(d) "Sponsoring institution" means a hospital, school, or consortium located in
Minnesota that sponsors and maintains primary organizational and financial responsibility
for a clinical medical education program in Minnesota and which is accountable to the
accrediting body.

(e) "Teaching institution" means a hospital, medical center, clinic, or other
organization that conducts a clinical medical education program in Minnesota.

(f) "Trainee" means a student or resident involved in a clinical medical education
program.

(g) "Eligible trainee FTEs" means the number of trainees, as measured by full-time
equivalent counts, that are at training sites located in Minnesota with deleted text begin a deleted text end new text begin currently
active new text end medical assistance deleted text begin provider number deleted text end new text begin enrollment status and a National Provider
Identification (NPI) number new text end where training occurs in either an inpatient or ambulatory
patient care setting and where the training is funded, in part, by patient care revenues.

Sec. 6.

Minnesota Statutes 2006, section 62J.692, subdivision 4, is amended to read:

Subd. 4.

Distribution of funds.

(a) The commissioner shall annually distribute
90 percent of deleted text begin available medical education deleted text end funds new text begin transferred according to section
256B.69, subdivision 5c, paragraph (a), clause (1), new text end to all qualifying applicants based on a
distribution formula that reflects a summation of two factors:

(1) an education factor, which is determined by the total number of eligible trainee
FTEs and the total statewide average costs per trainee, by type of trainee, in each clinical
medical education program; and

(2) a public program volume factor, which is determined by the total volume of
public program revenue received by each training site as a percentage of all public
program revenue received by all training sites in the fund pool.

In this formula, the education factor is weighted at 67 percent and the public program
volume factor is weighted at 33 percent.

Public program revenue for the distribution formula includes revenue from medical
assistance, prepaid medical assistance, general assistance medical care, and prepaid
general assistance medical care. Training sites that receive no public program revenue
are ineligible for funds available under this paragraph. Total statewide average costs per
trainee for medical residents is based on audited clinical training costs per trainee in
primary care clinical medical education programs for medical residents. Total statewide
average costs per trainee for dental residents is based on audited clinical training costs
per trainee in clinical medical education programs for dental students. Total statewide
average costs per trainee for pharmacy residents is based on audited clinical training costs
per trainee in clinical medical education programs for pharmacy students.

(b) The commissioner shall annually distribute ten percent of deleted text begin total available medical
education deleted text end funds new text begin transferred according to section 256B.69, subdivision 5c, paragraph (a),
clause (1), new text end to all qualifying applicants based on the percentage received by each applicant
under paragraph (a). These funds are to be used to offset clinical education costs at
eligible clinical training sites based on criteria developed by the clinical medical education
program. Applicants may choose to distribute funds allocated under this paragraph based
on the distribution formula described in paragraph (a).

new text begin (c) The commissioner shall annually distribute $5,000,000 of the funds dedicated
to the commissioner under section 297F.10, subdivision 1, clause (2), plus any federal
financial participation on these funds and on funds transferred under subdivision 10, to all
qualifying applicants based on a distribution formula that gives 100 percent weight to a
public program volume factor, which is determined by the total volume of public program
revenue received by each training site as a percentage of all public program revenue
received by all training sites in the fund pool. If federal approval is not obtained for
federal financial participation on any portion of funds distributed under this paragraph,
90 percent of the unmatched funds shall be distributed by the commissioner based on
the formula described in paragraph (a) and ten percent of the unmatched funds shall be
distributed by the commissioner based on the formula described in paragraph (b).
new text end

new text begin (d) The commissioner shall annually distribute $3,060,000 of funds dedicated to the
commissioner under section 297F.10, subdivision 1, clause (2), through a formula giving
100 percent weight to an education factor, which is determined by the total number of
eligible trainee full-time equivalents and the total statewide average costs per trainee, by
type of trainee, in each clinical medical education program. If no matching funds are
received on funds distributed under paragraph (c), funds distributed under this paragraph
shall be distributed by the commissioner based on the formula described in paragraph (a).
new text end

new text begin (e) The commissioner shall annually distribute $340,000 of funds dedicated to the
commissioner under section 297F.10, subdivision 1, clause (2), to all qualifying applicants
based on the percentage received by each applicant under paragraph (a). These funds are
to be used to offset clinical education costs at eligible clinical training sites based on
criteria developed by the clinical medical education program. Applicants may choose to
distribute funds allocated under this paragraph based on the distribution formula described
in paragraph (a). If no matching funds are received on funds distributed under paragraph
(c), funds distributed under this paragraph shall be distributed by the commissioner based
on the formula described in paragraph (b).
new text end

deleted text begin (c) deleted text end new text begin (f) new text end Funds distributed shall not be used to displace current funding appropriations
from federal or state sources.

deleted text begin (d) deleted text end new text begin (g) new text end Funds shall be distributed to the sponsoring institutions indicating the amount
to be distributed to each of the sponsor's clinical medical education programs based on
the criteria in this subdivision and in accordance with the commissioner's approval letter.
Each clinical medical education program must distribute funds allocated under paragraph
(a) to the training sites as specified in the commissioner's approval letter. Sponsoring
institutions, which are accredited through an organization recognized by the Department
of Education or the Centers for Medicare and Medicaid Services, may contract directly
with training sites to provide clinical training. To ensure the quality of clinical training,
those accredited sponsoring institutions must:

(1) develop contracts specifying the terms, expectations, and outcomes of the clinical
training conducted at sites; and

(2) take necessary action if the contract requirements are not met. Action may
include the withholding of payments under this section or the removal of students from
the site.

deleted text begin (e) deleted text end new text begin (h) new text end Any funds not distributed in accordance with the commissioner's approval
letter must be returned to the medical education and research fund within 30 days of
receiving notice from the commissioner. The commissioner shall distribute returned funds
to the appropriate training sites in accordance with the commissioner's approval letter.

deleted text begin (f) deleted text end new text begin (i) new text end The commissioner shall distribute by June 30 of each year an amount equal to
the funds transferred under subdivision 10 deleted text begin , plus five percent interest deleted text end to the University of
Minnesota Board of Regents for the instructional costs of health professional programs
at the Academic Health Center and for interdisciplinary academic initiatives within the
Academic Health Center.

deleted text begin (g) deleted text end new text begin (j) new text end A maximum of $150,000 of the funds dedicated to the commissioner
under section 297F.10, subdivision 1, deleted text begin paragraph (b), deleted text end clause (2), may be used by the
commissioner for administrative expenses associated with implementing this section.

Sec. 7.

Minnesota Statutes 2006, section 62J.692, subdivision 7a, is amended to read:

Subd. 7a.

Clinical medical education innovations grants.

(a) The commissioner
shall award grants to teaching institutions and clinical training sites for projects that
increase dental access for underserved populations and promote innovative clinical
training of dental professionals.

new text begin (b) The commissioner shall award grants to teaching institutions and clinical training
sites for projects that increase mental health access for underserved populations, promote
innovative clinical training of mental health professionals, increase the number of mental
health providers in rural or underserved areas, and promote the incorporation of patient
safety principles into clinical medical education programs.
new text end

new text begin (c) new text end In awarding the grants, the commissioner, in consultation with the commissioner
of human services, shall consider the following:

(1) potential to successfully increase access to an underserved population;

(2) the long-term viability of the project to improve access beyond the period
of initial funding;

(3) evidence of collaboration between the applicant and local communities;

(4) the efficiency in the use of the funding; deleted text begin and
deleted text end

(5) the priority level of the project in relation to state clinical education, access,
new text begin patient safety, new text end and workforce goals deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) the potential of the project to impact the number or distribution of the health
care workforce.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end The commissioner shall periodically evaluate the priorities in awarding the
innovations grants in order to ensure that the priorities meet the changing workforce
needs of the state.

Sec. 8.

Minnesota Statutes 2006, section 62J.692, subdivision 8, is amended to read:

Subd. 8.

Federal financial participation.

(a) The commissioner of human
services shall seek to maximize federal financial participation in payments for medical
education and research costs. deleted text begin If the commissioner of human services determines that
federal financial participation is available for the medical education and research, the
commissioner of health shall transfer to the commissioner of human services the amount
of state funds necessary to maximize the federal funds available. The amount transferred
to the commissioner of human services, plus the amount of federal financial participation,
shall be distributed to medical assistance providers in accordance with the distribution
methodology described in subdivision 4.
deleted text end

(b) For the purposes of paragraph (a), the commissioner shall use physician clinic
rates where possible to maximize federal financial participation.

Sec. 9.

Minnesota Statutes 2006, section 62J.692, subdivision 10, is amended to read:

Subd. 10.

Transfers from University of Minnesota.

Of the funds dedicated to the
Academic Health Center under section 297F.10, subdivision 1, clause (1), $4,850,000
shall be transferred annually to the commissioner of health no later than April 15 of each
year for distribution under subdivision 4, paragraph deleted text begin (f) deleted text end new text begin (i) new text end .

Sec. 10.

Minnesota Statutes 2006, section 62L.12, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

(a) A health carrier may sell, issue, or renew individual
conversion policies to eligible employees otherwise eligible for conversion coverage under
section 62D.104 as a result of leaving a health maintenance organization's service area.

(b) A health carrier may sell, issue, or renew individual conversion policies to
eligible employees otherwise eligible for conversion coverage as a result of the expiration
of any continuation of group coverage required under sections 62A.146, 62A.17, 62A.21,
62C.142, 62D.101, and 62D.105.

(c) A health carrier may sell, issue, or renew conversion policies under section
62E.16 to eligible employees.

(d) A health carrier may sell, issue, or renew individual continuation policies to
eligible employees as required.

(e) A health carrier may sell, issue, or renew individual health plans if the coverage
is appropriate due to an unexpired preexisting condition limitation or exclusion applicable
to the person under the employer's group health plan or due to the person's need for health
care services not covered under the employer's group health plan.

(f) A health carrier may sell, issue, or renew an individual health plan, if the
individual has elected to buy the individual health plan not as part of a general plan to
substitute individual health plans for a group health plan nor as a result of any violation of
subdivision 3 or 4.

(g) Nothing in this subdivision relieves a health carrier of any obligation to provide
continuation or conversion coverage otherwise required under federal or state law.

(h) Nothing in this chapter restricts the offer, sale, issuance, or renewal of coverage
issued as a supplement to Medicare under sections 62A.3099 to 62A.44, or policies or
contracts that supplement Medicare issued by health maintenance organizations, or those
contracts governed by sections 1833, 1851 to 1859, 1860D, or 1876 of the federal Social
Security Act, United States Code, title 42, section 1395 et seq., as amended.

(i) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual
health plans necessary to comply with a court order.

(j) A health carrier may offer, issue, sell, or renew an individual health plan to
persons eligible for an employer group health plan, if the individual health plan is a high
deductible health plan for use in connection with an existing health savings account, in
compliance with the Internal Revenue Code, section 223. In that situation, the same or
a different health carrier may offer, issue, sell, or renew a group health plan to cover
the other eligible employees in the group.

(k) A health carrier may offer, sell, issue, or renew an individual health plan to one
or more employees of a small employer if the individual health plan is marketed directly to
all employees of the small employer and the small employer does not contribute directly
or indirectly to the premiums or facilitate the administration of the individual health plan.
The requirement to market an individual health plan to all employees does not require the
health carrier to offer or issue an individual health plan to any employee. For purposes
of this paragraph, an employer is not contributing to the premiums or facilitating the
administration of the individual health plan if the employer does not contribute to the
premium and merely collects the premiums from an employee's wages or salary through
payroll deductions and submits payment for the premiums of one or more employees in a
lump sum to the health carrier. Except for coverage under section 62A.65, subdivision 5,
paragraph (b), or 62E.16, at the request of an employee, the health carrier may bill the
employer for the premiums payable by the employee, provided that the employer is not
liable for payment except from payroll deductions for that purpose. If an employer is
submitting payments under this paragraph, the health carrier shall provide a cancellation
notice directly to the primary insured at least ten days prior to termination of coverage for
nonpayment of premium. Individual coverage under this paragraph may be offered only
if the small employer has not provided coverage under section 62L.03 to the employees
within the past 12 months.

The employer must provide a written and signed statement to the health carrier that
the employer is not contributing directly or indirectly to the employee's premiums. The
health carrier may rely on the employer's statement and is not required to guarantee-issue
individual health plans to the employer's other current or future employees.

new text begin (l) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual
health plans through the Minnesota Health Insurance Exchange under section 62A.67
or 62A.68.
new text end

Sec. 11.

Minnesota Statutes 2006, section 103I.101, subdivision 6, is amended to read:

Subd. 6.

Fees for variances.

The commissioner shall charge a nonrefundable
application fee of deleted text begin $175 deleted text end new text begin $215 new text end to cover the administrative cost of processing a request for a
variance or modification of rules adopted by the commissioner under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 103I.208, subdivision 1, is amended to read:

Subdivision 1.

Well notification fee.

The well notification fee to be paid by a
property owner is:

(1) for a new water supply well, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state core function
fee;

(2) for a well sealing, deleted text begin $35 deleted text end new text begin $50 new text end for each well, which includes the state core function
fee, except that for monitoring wells constructed on a single property, having depths
within a 25 foot range, and sealed within 48 hours of start of construction, a single fee of
deleted text begin $35 deleted text end new text begin $50 new text end ; and

(3) for construction of a dewatering well, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state core
function fee, for each dewatering well except a dewatering project comprising five or
more dewatering wells shall be assessed a single fee of deleted text begin $875 deleted text end new text begin $1,075 new text end for the dewatering
wells recorded on the notification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 103I.208, subdivision 2, is amended to read:

Subd. 2.

Permit fee.

The permit fee to be paid by a property owner is:

(1) for a water supply well that is not in use under a maintenance permit, deleted text begin $150 deleted text end new text begin $175 new text end
annually;

(2) for construction of a monitoring well, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state
core function fee;

(3) for a monitoring well that is unsealed under a maintenance permit, deleted text begin $150 deleted text end new text begin $175 new text end
annually;

(4) for monitoring wells used as a leak detection device at a single motor fuel retail
outlet, a single petroleum bulk storage site excluding tank farms, or a single agricultural
chemical facility site, the construction permit fee is deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state
core function fee, per site regardless of the number of wells constructed on the site, and
the annual fee for a maintenance permit for unsealed monitoring wells is deleted text begin $150 deleted text end new text begin $175 new text end per
site regardless of the number of monitoring wells located on site;

(5) for a groundwater thermal exchange device, in addition to the notification fee for
water supply wells, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state core function fee;

(6) for a vertical heat exchanger, deleted text begin $175 deleted text end new text begin $215 new text end ;

(7) for a dewatering well that is unsealed under a maintenance permit, deleted text begin $150 deleted text end new text begin $175 new text end
annually for each dewatering well, except a dewatering project comprising more than five
dewatering wells shall be issued a single permit for deleted text begin $750 deleted text end new text begin $875 new text end annually for dewatering
wells recorded on the permit; and

(8) for an elevator boring, deleted text begin $175 deleted text end new text begin $215 new text end for each boring.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 103I.235, subdivision 1, is amended to read:

Subdivision 1.

Disclosure of wells to buyer.

(a) Before signing an agreement to
sell or transfer real property, the seller must disclose in writing to the buyer information
about the status and location of all known wells on the property, by delivering to the buyer
either a statement by the seller that the seller does not know of any wells on the property,
or a disclosure statement indicating the legal description and county, and a map drawn
from available information showing the location of each well to the extent practicable.
In the disclosure statement, the seller must indicate, for each well, whether the well is in
use, not in use, or sealed.

(b) At the time of closing of the sale, the disclosure statement information, name and
mailing address of the buyer, and the quartile, section, township, and range in which each
well is located must be provided on a well disclosure certificate signed by the seller or a
person authorized to act on behalf of the seller.

(c) A well disclosure certificate need not be provided if the seller does not know
of any wells on the property and the deed or other instrument of conveyance contains
the statement: "The Seller certifies that the Seller does not know of any wells on the
described real property."

(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate
required by this subdivision shall be signed by the buyer or a person authorized to act on
behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure
certificate is not required if the following statement appears on the deed followed by the
signature of the grantee or, if there is more than one grantee, the signature of at least one
of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the
described real property." The statement and signature of the grantee may be on the front
or back of the deed or on an attached sheet and an acknowledgment of the statement by
the grantee is not required for the deed to be recordable.

(e) This subdivision does not apply to the sale, exchange, or transfer of real property:

(1) that consists solely of a sale or transfer of severed mineral interests; or

(2) that consists of an individual condominium unit as described in chapters 515
and 515B.

(f) For an area owned in common under chapter 515 or 515B the association or other
responsible person must report to the commissioner by July 1, 1992, the location and
status of all wells in the common area. The association or other responsible person must
notify the commissioner within 30 days of any change in the reported status of wells.

(g) For real property sold by the state under section 92.67, the lessee at the time of
the sale is responsible for compliance with this subdivision.

(h) If the seller fails to provide a required well disclosure certificate, the buyer, or
a person authorized to act on behalf of the buyer, may sign a well disclosure certificate
based on the information provided on the disclosure statement required by this section
or based on other available information.

(i) A county recorder or registrar of titles may not record a deed or other instrument
of conveyance dated after October 31, 1990, for which a certificate of value is required
under section 272.115, or any deed or other instrument of conveyance dated after October
31, 1990, from a governmental body exempt from the payment of state deed tax, unless
the deed or other instrument of conveyance contains the statement made in accordance
with paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all
the information required by paragraph (b) or (d). The county recorder or registrar of titles
must not accept a certificate unless it contains all the required information. The county
recorder or registrar of titles shall note on each deed or other instrument of conveyance
accompanied by a well disclosure certificate that the well disclosure certificate was
received. The notation must include the statement "No wells on property" if the disclosure
certificate states there are no wells on the property. The well disclosure certificate shall not
be filed or recorded in the records maintained by the county recorder or registrar of titles.
After noting "No wells on property" on the deed or other instrument of conveyance, the
county recorder or registrar of titles shall destroy or return to the buyer the well disclosure
certificate. The county recorder or registrar of titles shall collect from the buyer or the
person seeking to record a deed or other instrument of conveyance, a fee of deleted text begin $40 deleted text end new text begin $45 new text end
for receipt of a completed well disclosure certificate. By the tenth day of each month,
the county recorder or registrar of titles shall transmit the well disclosure certificates
to the commissioner of health. By the tenth day after the end of each calendar quarter,
the county recorder or registrar of titles shall transmit to the commissioner of health
deleted text begin $32.50 deleted text end new text begin $37.50 new text end of the fee for each well disclosure certificate received during the quarter.
The commissioner shall maintain the well disclosure certificate for at least six years. The
commissioner may store the certificate as an electronic image. A copy of that image
shall be as valid as the original.

(j) No new well disclosure certificate is required under this subdivision if the buyer
or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed
or other instrument of conveyance that the status and number of wells on the property
have not changed since the last previously filed well disclosure certificate. The following
statement, if followed by the signature of the person making the statement, is sufficient
to comply with the certification requirement of this paragraph: "I am familiar with the
property described in this instrument and I certify that the status and number of wells on
the described real property have not changed since the last previously filed well disclosure
certificate." The certification and signature may be on the front or back of the deed or on
an attached sheet and an acknowledgment of the statement is not required for the deed or
other instrument of conveyance to be recordable.

(k) The commissioner in consultation with county recorders shall prescribe the form
for a well disclosure certificate and provide well disclosure certificate forms to county
recorders and registrars of titles and other interested persons.

(l) Failure to comply with a requirement of this subdivision does not impair:

(1) the validity of a deed or other instrument of conveyance as between the parties
to the deed or instrument or as to any other person who otherwise would be bound by
the deed or instrument; or

(2) the record, as notice, of any deed or other instrument of conveyance accepted for
filing or recording contrary to the provisions of this subdivision.

Sec. 15.

Minnesota Statutes 2006, section 144.123, is amended to read:

144.123 FEES FOR DIAGNOSTIC LABORATORY SERVICES;
EXCEPTIONS.

Subdivision 1.

Who must pay.

Except for the limitation contained in this section,
the commissioner of health shall charge a handling fee for each specimen submitted to
the Department of Health for analysis for diagnostic purposes by any hospital, private
laboratory, private clinic, or physician. No fee shall be charged to any entity which
receives direct or indirect financial assistance from state or federal funds administered by
the Department of Health, including any public health department, nonprofit community
clinic, deleted text begin venereal deleted text end new text begin sexually transmitted new text end disease clinic, deleted text begin family planning clinic, deleted text end or similar
entity. new text begin No fee will be charged for any biological materials submitted to the Department
of Health as a requirement of Minnesota Rules, part 4605.7040, or for those biological
materials requested by the department to gather information for disease prevention or
control purposes. new text end The commissioner of health may establish deleted text begin by rule deleted text end other exceptions to
the handling fee as may be necessary to deleted text begin gather information for epidemiologic purposes deleted text end new text begin
protect the public's health new text end . All fees collected pursuant to this section shall be deposited in
the state treasury and credited to the state government special revenue fund.

Subd. 2.

deleted text begin Rules for deleted text end Fee amounts.

The commissioner of health shall deleted text begin promulgate
rules, in accordance with chapter 14, which shall specify the amount of the deleted text end new text begin charge a new text end
handling fee prescribed in subdivision 1. The fee shall approximate the costs to the
department of handling specimens including reporting, postage, specimen kit preparation,
and overhead costs. The fee prescribed in subdivision 1 shall be deleted text begin $15 deleted text end new text begin $25 new text end per specimen
deleted text begin until the commissioner promulgates rules pursuant to this subdivision deleted text end .

Sec. 16.

Minnesota Statutes 2006, section 144.125, is amended to read:

144.125 TESTS OF INFANTS FOR HERITABLE AND CONGENITAL
DISORDERS.

Subdivision 1.

Duty to perform testing.

It is the duty of (1) the administrative
officer or other person in charge of each institution caring for infants 28 days or less
of age, (2) the person required in pursuance of the provisions of section 144.215,
to register the birth of a child, or (3) the nurse midwife or midwife in attendance at
the birth, to arrange to have administered to every infant or child in its care tests for
heritable and congenital disorders according to subdivision 2 and rules prescribed by
the state commissioner of health. Testing and the recording and reporting of test results
shall be performed at the times and in the manner prescribed by the commissioner of
health. The commissioner shall charge deleted text begin laboratory service fees deleted text end new text begin a fee new text end so that the total of
fees collected will approximate the costs of conducting the tests and implementing and
maintaining a system to follow-up infants with heritable or congenital disorders. The
deleted text begin laboratory service deleted text end fee is deleted text begin $61 deleted text end new text begin $81 new text end per specimen. Costs associated with capital expenditures
and the development of new procedures may be prorated over a three-year period when
calculating the amount of the fees.

Subd. 2.

Determination of tests to be administered.

The commissioner shall
periodically revise the list of tests to be administered for determining the presence of a
heritable or congenital disorder. Revisions to the list shall reflect advances in medical
science, new and improved testing methods, or other factors that will improve the public
health. In determining whether a test must be administered, the commissioner shall take
into consideration the adequacy of deleted text begin laboratory deleted text end new text begin analytical new text end methods to detect the heritable
or congenital disorder, the ability to treat or prevent medical conditions caused by the
heritable or congenital disorder, and the severity of the medical conditions caused by the
heritable or congenital disorder. The list of tests to be performed may be revised if the
changes are recommended by the advisory committee established under section 144.1255,
approved by the commissioner, and published in the State Register. The revision is
exempt from the rulemaking requirements in chapter 14, and sections 14.385 and 14.386
do not apply.

Subd. 3.

Objection of parents to test.

Persons with a duty to perform testing under
subdivision 1 shall advise parents of infants (1) that the blood or tissue samples used to
perform testing thereunder as well as the results of such testing may be retained by the
Department of Health, (2) the benefit of retaining the blood or tissue sample, and (3) that
the following options are available to them with respect to the testing: (i) to decline to
have the tests, or (ii) to elect to have the tests but to require that all blood samples and
records of test results be destroyed within 24 months of the testing. If the parents of
an infant object in writing to testing for heritable and congenital disorders or elect to
require that blood samples and test results be destroyed, the objection or election shall
be recorded on a form that is signed by a parent or legal guardian and made part of the
infant's medical record. A written objection exempts an infant from the requirements of
this section and section 144.128.

Sec. 17.

Minnesota Statutes 2006, section 144.3345, is amended to read:

144.3345 INTERCONNECTED ELECTRONIC HEALTH RECORD
GRANTS.

Subdivision 1.

Definitions.

The following definitions are used for the purposes
of this section.

(a) "Eligible community e-health collaborative" means an existing or newly
established collaborative to support the adoption and use of interoperable electronic
health records. A collaborative must consist of at least deleted text begin three deleted text end new text begin two new text end or more eligible health
care entities in at least two of the categories listed in paragraph (b) and have a focus on
interconnecting the members of the collaborative for secure and interoperable exchange of
health care information.

(b) "Eligible health care entity" means one of the following:

(1) community clinics, as defined under section 145.9268;

(2) hospitals eligible for rural hospital capital improvement grants, as defined
in section 144.148;

(3) physician clinics located in a community with a population of less than 50,000
according to United States Census Bureau statistics and outside the seven-county
metropolitan area;

(4) nursing facilities licensed under sections 144A.01 to 144A.27;

(5) community health boards new text begin or boards of health new text end as established under chapter 145A;

(6) nonprofit entities with a purpose to provide health information exchange
coordination governed by a representative, multi-stakeholder board of directors; and

(7) other providers of health or health care services approved by the commissioner
for which interoperable electronic health record capability would improve quality of
care, patient safety, or community health.

Subd. 2.

Grants authorized.

The commissioner of health shall award grants to new text begin :
new text end

new text begin (a) new text end eligible community e-health collaborative projects to improve the implementation
and use of interoperable electronic health records including but not limited to the
following projects:

(1) collaborative efforts to host and support fully functional interoperable electronic
health records in multiple care settings;

(2) electronic medication history and electronic patient deleted text begin registration deleted text end new text begin medical history new text end
information;

(3) electronic personal health records for persons with chronic diseases and for
prevention services;

(4) rural and underserved community models for electronic prescribing; deleted text begin and
deleted text end

(5) deleted text begin enabling deleted text end new text begin modernize new text end local public health new text begin information new text end systems to rapidly and
electronically exchange information needed to participate in community e-health
collaboratives or for public health emergency preparedness and response deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) implement regional or community-based health information exchange
organizations;
new text end

new text begin (b) community clinics, as defined under section 145.9268, to implement and use
interoperable electronic health records, including but not limited to the following projects:
new text end

new text begin (1) efforts to plan for and implement fully functional, standards-based interoperable
electronic health records; and
new text end

new text begin (2) purchases and implementation of computer hardware, software, and technology
to fully implement interoperable electronic health records;
new text end

new text begin (c) regional or community-based health information exchange organizations to
connect and facilitate the exchange of health information between eligible health care
entities, including but not limited to the development, testing, and implementation of:
new text end

new text begin (1) data exchange standards, including data, vocabulary, and messaging standards,
for the exchange of health information, provided that such standards are consistent with
state and national standards;
new text end

new text begin (2) security standards necessary to ensure the confidentiality and integrity of health
records;
new text end

new text begin (3) computer interfaces and mechanisms for standardizing health information
exchanged between eligible health care entities;
new text end

new text begin (4) a record locator service for identifying the location of patient health records; or
new text end

new text begin (5) interfaces and mechanisms for implementing patient consent requirements; and
new text end

new text begin (d) community health boards and boards of health as established under chapter
145A to modernize local public health information systems to be standards-based and
interoperable with other electronic health records and information systems, or for
enhanced public health emergency preparedness and response.
new text end

Grant funds may not be used for construction of health care or other buildings or
facilities.

Subd. 3.

Allocation of grants.

(a) To receive a grant under this section, an eligible
community e-health collaborative new text begin , community clinic, regional or community-based health
information exchange, or community health boards and boards of health new text end must submit an
application to the commissioner of health by the deadline established by the commissioner.
A grant may be awarded upon the signing of a grant contract. In awarding grants, the
commissioner shall give preference to projects benefiting providers located in rural and
underserved areas of Minnesota which the commissioner has determined have an unmet
need for the development and funding of electronic health records. Applicants may apply
for and the commissioner may award grants for one-year, two-year, or three-year periods.

(b) An application must be on a form and contain information as specified by the
commissioner but at a minimum must contain:

(1) a description of the purpose or project for which grant funds will be used;

(2) a description of the problem or problems the grant funds will be used to address,
including an assessment new text begin of the new text end likelihood of the project occurring absent grant funding;

(3) a description of achievable objectives, a workplan, budget, budget narrative, a
project communications plan, a timeline for implementation and completion of processes
or projects enabled by the grant, and an assessment of privacy and security issues and a
proposed approach to address these issues;

(4) a description of the health care entities and other groups participating in the
project, including identification of the lead entity responsible for applying for and
receiving grant funds;

(5) a plan for how patients and consumers will be involved in development of
policies and procedures related to the access to and interchange of information;

(6) evidence of consensus and commitment among the health care entities and others
who developed the proposal and are responsible for its implementation; deleted text begin and
deleted text end

(7) a plan for documenting and evaluating results of the grant deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) a plan for use of data exchange standards, including data and vocabulary.
new text end

(c) The commissioner shall review each application to determine whether the
application is complete and whether the applicant and the project are eligible for a
grant. In evaluating applications, the commissioner shall take into consideration factors,
including but not limited to, the following:

(1) the degree to which the proposal interconnects deleted text begin the various providers of care deleted text end new text begin with
other health care entities new text end in the applicant's geographic community;

(2) the degree to which the project provides for the interoperability of electronic
health records or related health information technology deleted text begin between the members of the
collaborative, and presence and scope of a description of how the project intends to
interconnect with other providers not part of the project into the future deleted text end ;

(3) the degree to which the project addresses current unmet needs pertaining
to interoperable electronic health records in a geographic area of Minnesota and the
likelihood that the needs would not be met absent grant funds;

(4) the applicant's thoroughness and clarity in describing the project, how the project
will improve patient safety, quality of care, and consumer empowerment, and the role of
the various collaborative members;

(5) the recommendations of the Health Information and Technology Infrastructure
Advisory Committee; and

(6) other factors that the commissioner deems relevant.

(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall
be required to provide $1 in the form of cash or in-kind staff or services for each $3
provided under the grant program.

(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion
over the size and number of grants awarded.

Subd. 4.

Evaluation and report.

The commissioner of health shall evaluate the
overall effectiveness of the grant program. The commissioner shall collect progress
and expenditure reports to evaluate the grant program from the eligible community
collaboratives receiving grants.

Sec. 18.

Minnesota Statutes 2006, section 144D.03, subdivision 1, is amended to read:

Subdivision 1.

Registration procedures.

The commissioner shall establish forms
and procedures for annual registration of housing with services establishments. The
commissioner shall charge an annual registration fee of deleted text begin $35 deleted text end new text begin $155 new text end . No fee shall be
refunded. A registered establishment shall notify the commissioner within 30 days of the
date it is no longer required to be registered under this chapter or of any change in the
business name or address of the establishment, the name or mailing address of the owner
or owners, or the name or mailing address of the managing agent. There shall be no
fee for submission of the notice.

Sec. 19.

Minnesota Statutes 2006, section 148.5194, is amended by adding a
subdivision to read:

new text begin Subd. 7a. new text end

new text begin Audiologist hearing instrument dispensing examination fee. new text end

new text begin For
persons meeting the requirements of section 148.515, subdivision 2, the fee for the
practical portion of the hearing instrument dispensing examination is $250 each time it
is taken.
new text end

Sec. 20.

Minnesota Statutes 2006, section 148.6445, subdivision 1, is amended to read:

Subdivision 1.

Initial licensure fee.

The initial licensure fee for occupational
therapists is deleted text begin $180 deleted text end new text begin $145 new text end . The initial licensure fee for occupational therapy assistants is
deleted text begin $100 deleted text end new text begin $80 new text end . The commissioner shall prorate fees based on the number of quarters remaining
in the biennial licensure period.

Sec. 21.

Minnesota Statutes 2006, section 148.6445, subdivision 2, is amended to read:

Subd. 2.

Licensure renewal fee.

The biennial licensure renewal fee for
occupational therapists is deleted text begin $180 deleted text end new text begin $145 new text end . The biennial licensure renewal fee for occupational
therapy assistants is deleted text begin $100 deleted text end new text begin $80 new text end .

Sec. 22.

Minnesota Statutes 2006, section 149A.52, subdivision 3, is amended to read:

Subd. 3.

Application procedure; documentation; initial inspection.

An applicant
for a license to operate a crematory shall submit to the commissioner a completed
application. A completed application includes:

(1) a completed application form, as provided by the commissioner;

(2) proof of business form and ownership; and

(3) proof of liability insurance coverage or other financial documentation, as
determined by the commissioner, that demonstrates the applicant's ability to respond in
damages for liability arising from the ownership, maintenance, management, or operation
of a crematory.

Upon receipt of the application new text begin and appropriate fee new text end , the commissioner shall review
and verify all information. Upon completion of the verification process and resolution
of any deficiencies in the application information, the commissioner shall conduct an
initial inspection of the premises to be licensed. After the inspection and resolution of
any deficiencies found and any reinspections as may be necessary, the commissioner shall
make a determination, based on all the information available, to grant or deny licensure. If
the commissioner's determination is to grant the license, the applicant shall be notified and
the license shall issue and remain valid for a period prescribed on the license, but not to
exceed one calendar year from the date of issuance of the license. If the commissioner's
determination is to deny the license, the commissioner must notify the applicant, in
writing, of the denial and provide the specific reason for denial.

Sec. 23.

new text begin [149A.65] FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin This section establishes the fees for registrations,
examinations, initial and renewal licenses, and late fees authorized under the provisions
of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Mortuary science fees. new text end

new text begin Fees for mortuary science are:
new text end

new text begin (1) $50 for the initial and renewal registration of a mortuary science intern;
new text end

new text begin (2) $100 for the mortuary science examination;
new text end

new text begin (3) $125 for issuance of initial and renewal mortuary science licenses;
new text end

new text begin (4) $25 late fee charge for a license renewal; and
new text end

new text begin (5) $200 for issuing a mortuary science license by endorsement.
new text end

new text begin Subd. 3. new text end

new text begin Funeral directors. new text end

new text begin The license renewal fee for funeral directors is $125.
The late fee charge for a license renewal is $25.
new text end

new text begin Subd. 4. new text end

new text begin Funeral establishments. new text end

new text begin The initial and renewal fee for funeral
establishments is $300. The late fee charge for a license renewal is $25.
new text end

new text begin Subd. 5. new text end

new text begin Crematories. new text end

new text begin The initial and renewal fee for a crematory is $300. The
late fee charge for a license renewal is $25.
new text end

Sec. 24.

Minnesota Statutes 2006, section 149A.97, subdivision 7, is amended to read:

Subd. 7.

Reports to commissioner.

Every funeral provider lawfully doing business
in Minnesota that accepts funds under subdivision 2 must make a complete annual report
to the commissioner. The reports may be on forms provided by the commissioner or
substantially similar forms containing, at least, identification and the state of each trust
account, including all transactions involving principal and accrued interest, and must be
filed by March 31 of the calendar year following the reporting year along with a filing
fee of deleted text begin $15 deleted text end new text begin $25 new text end for each report. Fees shall be paid to the commissioner of finance, state of
Minnesota, for deposit in the state government special revenue fund in the state treasury.
Reports must be signed by an authorized representative of the funeral provider and
notarized under oath. All reports to the commissioner shall be reviewed for account
inaccuracies or possible violations of this section. If the commissioner has a reasonable
belief to suspect that there are account irregularities or possible violations of this section,
the commissioner shall report that belief, in a timely manner, to the state auditor. The
commissioner shall also file an annual letter with the state auditor disclosing whether or
not any irregularities or possible violations were detected in review of the annual trust
fund reports filed by the funeral providers. This letter shall be filed with the state auditor
by May 31 of the calendar year following the reporting year.

Sec. 25.

Minnesota Statutes 2006, section 153A.14, subdivision 4a, is amended to read:

Subd. 4a.

Trainees.

(a) A person who is not certified under this section may dispense
hearing instruments as a trainee for a period not to exceed 12 months if the person:

(1) submits an application on forms provided by the commissioner;

(2) is under the supervision of a certified dispenser meeting the requirements of this
subdivision new text begin or a licensed audiologist meeting the requirements of sections 148.511 to
148.5198 new text end ; and

(3) meets all requirements for certification except passage of the examination
required by this section.

(b) A certified hearing instrument dispenser may not supervise more than two
trainees at the same time and may not directly supervise more than one trainee at a time.
The certified dispenser is responsible for all actions or omissions of a trainee in connection
with the dispensing of hearing instruments. A certified dispenser may not supervise a
trainee if there are any commissioner, court, or other orders, currently in effect or issued
within the last five years, that were issued with respect to an action or omission of a
certified dispenser or a trainee under the certified dispenser's supervision.

Until taking and passing the practical examination testing the techniques described
in subdivision 2h, paragraph (a), clause (2), trainees must be directly supervised in all
areas described in subdivision 4b, and the activities tested by the practical examination.
Thereafter, trainees may dispense hearing instruments under indirect supervision until
expiration of the trainee period. Under indirect supervision, the trainee must complete two
monitored activities a week. Monitored activities may be executed by correspondence,
telephone, or other telephonic devices, and include, but are not limited to, evaluation
of audiograms, written reports, and contracts. The time spent in supervision must be
recorded and the record retained by the supervisor.

Sec. 26.

Minnesota Statutes 2006, section 153A.17, is amended to read:

153A.17 EXPENSES; FEES.

The expenses for administering the certification requirements including the
complaint handling system for hearing aid dispensers in sections 153A.14 and 153A.15
and the Consumer Information Center under section 153A.18 must be paid from initial
application and examination fees, renewal fees, penalties, and fines. All fees are
nonrefundable. The new text begin initial and annual renewal new text end certificate application fee is deleted text begin $350 deleted text end new text begin $1,000 new text end ,
the examination fee is deleted text begin $250 deleted text end new text begin $700 new text end for the written portion and deleted text begin $250 deleted text end new text begin $700 new text end for the practical
portion each time one or the other is taken, and the trainee application fee is $200.
new text begin Effective July 1, 2007, a surcharge of $200 shall be paid at the time of certification
application or renewal until June 30, 2011, to recover the commissioner's accumulated
direct expenditures for administering the requirements of this chapter. new text end The penalty fee for
late submission of a renewal application is $200. The fee for verification of certification
to other jurisdictions or entities is $25. All fees, penalties, and fines received must be
deposited in the state government special revenue fund. The commissioner may prorate
the certification fee for new applicants based on the number of quarters remaining in
the annual certification period.

Sec. 27.

Minnesota Statutes 2006, section 256L.02, subdivision 3, is amended to read:

Subd. 3.

Financial management.

(a) The commissioner shall manage spending
for the MinnesotaCare program in a manner that maintains a minimum reserve. As
part of each state revenue and expenditure forecast, the commissioner must make an
assessment of the expected expenditures for the covered services for the remainder of the
current biennium and for the following biennium. The estimated expenditure, including
the reserve, shall be compared to an estimate of the revenues that will be available in
the health care access fund. Based on this comparison, and after consulting with the
chairs of the house Ways and Means Committee and the senate Finance Committee,
and the Legislative Commission on Health Care Access, the commissioner shall, as
necessary, make the adjustments specified in paragraph (b) to ensure that expenditures
remain within the limits of available revenues for the remainder of the current biennium
and for the following biennium. The commissioner shall not hire additional staff using
appropriations from the health care access fund until the commissioner of finance makes
a determination that the adjustments implemented under paragraph (b) are sufficient to
allow MinnesotaCare expenditures to remain within the limits of available revenues for
the remainder of the current biennium and for the following biennium.

(b) The adjustments the commissioner shall use must be implemented in this order:
first, stop enrollment of single adults and households without children; second, upon 45
days' notice, stop coverage of single adults and households without children already
enrolled in the MinnesotaCare program; third, upon 90 days' notice, decrease the premium
subsidy amounts by ten percent for families with gross annual income above 200 percent
of the federal poverty guidelines; fourth, upon 90 days' notice, decrease the premium
subsidy amounts by ten percent for families with gross annual income at or below 200
percent; and fifth, require applicants to be uninsured for at least six months prior to
eligibility in the MinnesotaCare program. If these measures are insufficient to limit the
expenditures to the estimated amount of revenue, the commissioner shall further limit
enrollment or decrease premium subsidies.

new text begin (c) The commissioner shall work in cooperation with the Minnesota Health
Insurance Exchange under section 62A.67 to make adjustments under paragraph (b) as
required under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 28.

Minnesota Statutes 2006, section 256L.02, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Enrollment responsibilities. new text end

new text begin According to section 256L.05, subdivision 6,
effective January 1, 2009, the Minnesota Health Insurance Exchange under section 62A.67
shall assume responsibility for enrolling eligible applicants and enrollees in a health
plan for MinnesotaCare coverage. The commissioner shall maintain responsibility for
determining eligibility for MinnesotaCare.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 29.

Minnesota Statutes 2006, section 256L.02, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Exchange of data. new text end

new text begin An entity that is part of the welfare system as defined
in section 13.46, subdivision 1, paragraph (c), and the Minnesota Health Insurance
Exchange under section 62A.67 may exchange private data about individuals without
the individual's consent in order to enroll and collect premiums from individuals in the
MinnesotaCare program under chapter 256L and to administer the individual's and the
individual's family's participation in the program. This subdivision only applies if the
entity that is part of the welfare system and the Minnesota Health Insurance Exchange
have entered into an agreement that complies with the requirements in Code of Federal
Regulations, title 45, section 164.314.
new text end

Sec. 30.

Minnesota Statutes 2006, section 256L.05, subdivision 5, is amended to read:

Subd. 5.

Availability of private insurance.

new text begin (a) new text end The commissioner deleted text begin , in consultation
with the commissioners of health and commerce, deleted text end shall provide information regarding the
availability of private health insurance coverage and the deleted text begin possibility of disenrollment under
section 256L.07, subdivision 1, paragraphs (b) and (c), to all: (1) families enrolled in the
MinnesotaCare program whose gross family income is equal to or more than 225 percent
of the federal poverty guidelines; and (2) single adults and households without children
enrolled in the MinnesotaCare program whose gross family income is equal to or more
than 165 percent of the federal poverty guidelines. This information must be provided deleted text end new text begin
Minnesota Health Insurance Exchange under section 62A.67 new text end upon initial enrollment
and annually thereafter. deleted text begin The commissioner shall also include information regarding the
availability of private health insurance coverage in
deleted text end

new text begin (b) new text end The notice of ineligibility provided to persons subject to disenrollment under
section 256L.07, subdivision 1, paragraphs (b) and (c) new text begin , must include information about
assistance with identifying and selecting private health insurance coverage provided by
the Minnesota Health Insurance Exchange under section 62A.67 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 31.

Minnesota Statutes 2006, section 256L.05, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Minnesota Health Insurance Exchange. new text end

new text begin The commissioner shall refer
all MinnesotaCare applicants and enrollees to the Minnesota Health Insurance Exchange
under section 62A.67. The Minnesota Health Insurance Exchange shall provide those
referred with assistance in selecting a managed care plan through which to receive
MinnesotaCare covered services and in analyzing health plans available through the
private market. MinnesotaCare applicants and enrollees shall effect enrollment in a
managed care plan or a private market health plan through the Minnesota Health Insurance
Exchange.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 32.

new text begin [256L.075] MINNESOTACARE II OPTION ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Program established; enrollment. new text end

new text begin The Minnesota Health Insurance
Exchange under section 62A.67, in consultation with the commissioner, shall establish
and administer a program that subsidizes the purchase of private market health plans
for children eligible for MinnesotaCare in families with family income above 200
percent, but not exceeding 300 percent, of the federal poverty guidelines. The program
established under this section is referred to as MinnesotaCare II. The private market
health coverage provided under this section is an alternative to coverage under section
256L.03. Notwithstanding section 256L.12, children obtaining coverage under this
section shall enroll in a health plan, as defined in section 62A.011, subdivision 3, through
the individual market, that covers, at a minimum, the standard benefit set established in
subdivision 2. Enrollment under this section is administered by the Minnesota Health
Insurance Exchange. Eligibility under this section is determined by the commissioner. All
other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers
to enrollment under section 256L.07, apply to this section unless otherwise specified.
new text end

new text begin Subd. 2. new text end

new text begin Benefit set. new text end

new text begin The Minnesota Health Insurance Exchange, in consultation
with the commissioner, shall establish a standard benefit set for health plans that qualify
for a subsidy under this section. The standard benefit set must be reviewed, and, if
necessary, modified on an annual basis. Notwithstanding section 256L.03, subdivision 5,
the benefit set may require co-payments, deductibles, and maximum annual out-of-pocket
enrollee cost-sharing limits.
new text end

new text begin Subd. 3. new text end

new text begin Health carrier participation. new text end

new text begin (a) Health insurers with at least three
percent of the market share of premium volume from individual market health plans as
determined from loss ratio reports filed under section 62A.021, subdivision 1, paragraph
(h), shall offer at least one health plan that covers the standard benefit set, or its actuarial
equivalent as determined by the commissioner of commerce, to children enrolled under
this section. Health issuers shall offer a health plan that covers the standard benefit set,
without a subsidy, to adults so that families can enroll in a single plan. Health insurers
that are not required to participate may participate voluntarily. The Minnesota Health
Insurance Exchange shall certify those health plans that meet the standards in subdivision
2 and qualify for a subsidy under this section.
new text end

new text begin (b) Health insurers offering coverage under this section may offer up to three
additional health plan products approved by the commissioner of commerce as actuarially
equivalent or better than the standard plan established in subdivision 2. The additional
products must also qualify for a subsidy if purchased to cover children eligible under
this section.
new text end

new text begin (c) Nothing in this subdivision requires guaranteed issue of MinnesotaCare II health
plans.
new text end

new text begin Subd. 4. new text end

new text begin State subsidy; premium. new text end

new text begin The cost of coverage for children enrolled under
this section is subsidized based on a sliding scale. The amount of the subsidy provided
for a child is equal to the cost of the least expensive health plan certified to participate
under this section less an amount equal to one-half of the premium that would be paid for
the child under section 256L.15, subdivision 2. The commissioner shall pay the subsidy
to the Minnesota Health Insurance Exchange. The premium for a child enrolled under
this section is equal to the difference between the cost of the health plan through which
the coverage is provided and the amount of the subsidy. The premium must be paid to
the Minnesota Health Insurance Exchange.
new text end

new text begin Subd. 5. new text end

new text begin Enrollment; limitation on changing plans. new text end

new text begin Notwithstanding section
256L.04, subdivision 1, individual children in a family may enroll under this section or
under section 256L.03. A child enrolled under this section may change health plans or
switch to coverage under section 256L.03 at the time of annual renewal. An enrollee may
change health plans or switch to coverage under section 256L.03 at other times during the
year if the family of the child experiences a qualifying life event, including, but not limited
to, marriage, divorce, a change in dependent status, change in family size, or a change in
eligibility for state health care programs under this chapter or chapter 256B or 256D.
new text end

new text begin Subd. 6. new text end

new text begin Bonus accounts incentive. new text end

new text begin The Minnesota Health Insurance Exchange
shall administer bonus accounts for families with children enrolled under this section.
Funds must be credited to a bonus account when a child covered under this section
achieves specific goals for preventive services or healthy behaviors. Funds credited to
an account can be used by a family to reimburse qualified medical expenses as defined
in Internal Revenue Code, section 213(d). The commissioner, in consultation with the
Minnesota Health Insurance Exchange, shall establish a schedule of preventive service
and healthy behavior goals that qualify for a credit and corresponding credit amounts.
Families with children enrolled under this section can qualify for credits of up to $50 per
year per child, up to a maximum of $150 per year per family. Funds held in the account
are available to a family until:
new text end

new text begin (1) there is no longer a child under age 21 in the family; or
new text end

new text begin (2) no child in the family has been enrolled under chapter 256B or 256L, or in a
health plan through the Minnesota Health Insurance Exchange for the past six months.
new text end

new text begin Subd. 7. new text end

new text begin Federal approval. new text end

new text begin The commissioner shall seek all federal waivers
and approvals necessary to implement and receive federal financial participation for
expenditures under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 33.

Minnesota Statutes 2006, section 256L.12, subdivision 7, is amended to read:

Subd. 7.

Managed care plan vendor requirements.

The following requirements
apply to all counties or vendors who contract with the Department of Human Services to
serve MinnesotaCare recipients. Managed care plan contractors:

(1) shall authorize and arrange for the provision of the full range of services listed in
section 256L.03 in order to ensure appropriate health care is delivered to enrollees;

(2) shall accept the prospective, per capita payment or other contractually defined
payment from the commissioner in return for the provision and coordination of covered
health care services for eligible individuals enrolled in the program;

(3) may contract with other health care and social service practitioners to provide
services to enrollees;

(4) shall provide for an enrollee grievance process as required by the commissioner
and set forth in the contract with the department;

(5) shall retain all revenue from enrollee co-payments;

(6) shall accept all eligible MinnesotaCare enrollees, without regard to health status
or previous utilization of health services;

(7) shall demonstrate capacity to accept financial risk according to requirements
specified in the contract with the department. A health maintenance organization licensed
under chapter 62D, or a nonprofit health plan licensed under chapter 62C, is not required
to demonstrate financial risk capacity, beyond that which is required to comply with
chapters 62C and 62D; deleted text begin and
deleted text end

(8) shall submit information as required by the commissioner, including data required
for assessing enrollee satisfaction, quality of care, cost, and utilization of services deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) shall participate in the Minnesota Health Insurance Exchange under section
62A.67 for the purpose of enrolling individuals under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 34.

Minnesota Statutes 2006, section 256L.15, subdivision 1a, is amended to read:

Subd. 1a.

Payment options.

new text begin (a) new text end The commissioner may offer the following
payment options to an enrollee:

(1) payment by check;

(2) payment by credit card;

(3) payment by recurring automatic checking withdrawal;

(4) payment by onetime electronic transfer of funds;

(5) payment by wage withholding with the consent of the employer and the
employee; or

(6) payment by using state tax refund payments.

At application or reapplication, a MinnesotaCare applicant or enrollee may authorize
the commissioner to use the Revenue Recapture Act in chapter 270A to collect funds
from the applicant's or enrollee's refund for the purposes of meeting all or part of the
applicant's or enrollee's MinnesotaCare premium obligation. The applicant or enrollee
may authorize the commissioner to apply for the state working family tax credit on behalf
of the applicant or enrollee. The setoff due under this subdivision shall not be subject to
the $10 fee under section 270A.07, subdivision 1.

new text begin (b) Effective January 1, 2009, the Minnesota Health Insurance Exchange under
section 62A.67 is responsible for collecting MinnesotaCare premiums.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 35.

Minnesota Statutes 2006, section 256L.15, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Premium discount incentive. new text end

new text begin Adults and families with children are
eligible for a premium reduction of $3 per month for each child who met goals for
preventive care or an adult who met goals for cardiac or diabetes care in the previous
calendar year. The maximum premium reduction may not exceed $15 per month per
family. The commissioner, in consultation with the Minnesota Health Insurance Exchange,
shall establish specific goals for preventive care, including cardiac and diabetes care, that
make an enrollee eligible for the premium reduction. The premium discount incentive is
administered by the Minnesota Health Insurance Exchange under section 62A.67. Children
enrolled under section 256L.075 are not eligible for the premium discount incentive.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 36. new text begin REPEALER.
new text end

new text begin (a) Minnesota Rules, part 4610.2800, new text end new text begin is repealed.
new text end

new text begin (b) Laws 2004, chapter 288, article 6, section 27, new text end new text begin is repealed.
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