Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

HF 1233

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/17/2013 06:34pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 1233
1.2A bill for an act
1.3relating to state government; establishing the health and human services budget;
1.4modifying provisions related to health care, continuing care, human services
1.5licensing, chemical and mental health, managed care organizations, waiver
1.6provider standards, home care, and the Department of Health; redesigning home
1.7and community-based services; establishing payment methodologies for home
1.8and community-based services; adjusting nursing and ICF/DD facility rates;
1.9setting and modifying fees; modifying autism coverage; modifying assistance
1.10programs; requiring licensing of certain abortion facilities; requiring drug testing;
1.11making technical changes; requiring studies; requiring reports; appropriating
1.12money;amending Minnesota Statutes 2012, sections 16A.724, subdivisions
1.132, 3; 16C.10, subdivision 5; 16C.155, subdivision 1; 62A.65, subdivision
1.142, by adding a subdivision; 62J.692, subdivision 4; 62Q.19, subdivision 1;
1.15103I.005, by adding a subdivision; 103I.521; 119B.13, subdivision 7; 144.051,
1.16by adding subdivisions; 144.0724, subdivisions 4, 6; 144.123, subdivision 1;
1.17144.125, subdivision 1; 144.966, subdivisions 2, 3a; 144.98, subdivisions 3, 5,
1.18by adding subdivisions; 144.99, subdivision 4; 144A.351; 144A.43; 144A.44;
1.19144A.45; 144A.53, subdivision 2; 144D.01, subdivision 4; 145.986; 145C.01,
1.20subdivision 7; 148E.065, subdivision 4a; 149A.02, subdivisions 1a, 2, 3, 4, 5,
1.2116, 23, 27, 34, 35, 37, by adding subdivisions; 149A.03; 149A.65, by adding
1.22subdivisions; 149A.70, subdivisions 1, 2, 3, 5; 149A.71, subdivisions 2, 4;
1.23149A.72, subdivisions 3, 9, by adding a subdivision; 149A.73, subdivisions 1,
1.242, 4; 149A.74; 149A.91, subdivision 9; 149A.93, subdivisions 3, 6; 149A.94;
1.25149A.96, subdivision 9; 174.30, subdivision 1; 214.40, subdivision 1; 243.166,
1.26subdivisions 4b, 7; 245.4661, subdivisions 5, 6; 245.4682, subdivision 2;
1.27245A.02, subdivisions 1, 9, 10, 14; 245A.03, subdivisions 7, 8, 9; 245A.04,
1.28subdivision 13; 245A.042, subdivision 3; 245A.07, subdivisions 2a, 3; 245A.08,
1.29subdivision 2a; 245A.10; 245A.11, subdivisions 2a, 7, 7a, 7b, 8; 245A.1435;
1.30245A.144; 245A.1444; 245A.16, subdivision 1; 245A.40, subdivision 5;
1.31245A.50; 245C.04, by adding a subdivision; 245C.08, subdivision 1; 245D.02;
1.32245D.03; 245D.04; 245D.05; 245D.06; 245D.07; 245D.09; 245D.10; 246.18,
1.33subdivision 8, by adding a subdivision; 246.54; 254B.04, subdivision 1;
1.34254B.13; 256.01, subdivisions 2, 24, 34, by adding subdivisions; 256.9657,
1.35subdivisions 1, 2, 3a; 256.9685, subdivision 2; 256.969, subdivisions 3a, 29;
1.36256.975, subdivision 7, by adding subdivisions; 256.9754, subdivision 5, by
1.37adding subdivisions; 256B.02, by adding subdivisions; 256B.021, by adding
1.38subdivisions; 256B.04, subdivisions 18, 21, by adding a subdivision; 256B.055,
1.39subdivisions 3a, 6, 10, 14, 15, by adding a subdivision; 256B.056, subdivisions 1,
1.401c, 3, 4, as amended, 5c, 10, by adding a subdivision; 256B.057, subdivisions 1,
1.418, 10, by adding a subdivision; 256B.06, subdivision 4; 256B.0623, subdivision
1.422; 256B.0625, subdivisions 9, 13e, 19c, 31, 39, 48, 58, by adding subdivisions;
1.43256B.0631, subdivision 1; 256B.064, subdivisions 1a, 1b, 2; 256B.0659,
2.1subdivision 21; 256B.0755, subdivision 3; 256B.0756; 256B.0911, subdivisions
2.21, 1a, 3a, 4d, 6, 7, by adding a subdivision; 256B.0913, subdivision 4, by
2.3adding a subdivision; 256B.0915, subdivisions 3a, 5, by adding a subdivision;
2.4256B.0916, by adding a subdivision; 256B.0917, subdivisions 6, 13, by
2.5adding subdivisions; 256B.092, subdivisions 11, 12, by adding subdivisions;
2.6256B.0946; 256B.095; 256B.0951, subdivisions 1, 4; 256B.0952, subdivisions 1,
2.75; 256B.097, subdivisions 1, 3; 256B.431, subdivision 44; 256B.434, subdivision
2.84, by adding a subdivision; 256B.437, subdivision 6; 256B.439, subdivisions
2.91, 2, 3, 4, by adding a subdivision; 256B.441, subdivisions 13, 53; 256B.49,
2.10subdivisions 11a, 12, 14, 15, by adding subdivisions; 256B.4912, subdivisions
2.111, 2, 3, 7, by adding subdivisions; 256B.4913, subdivisions 5, 6, by adding a
2.12subdivision; 256B.492; 256B.493, subdivision 2; 256B.5011, subdivision 2;
2.13256B.5012, by adding subdivisions; 256B.69, subdivisions 5c, 31, by adding a
2.14subdivision; 256B.694; 256B.76, subdivisions 2, 4, by adding a subdivision;
2.15256B.761; 256B.764; 256B.766; 256D.024, by adding a subdivision; 256I.04,
2.16subdivision 3; 256I.05, subdivision 1e, by adding a subdivision; 256J.15, by
2.17adding a subdivision; 256J.26, subdivision 3, by adding a subdivision; 256J.35;
2.18256K.45; 256L.01, subdivisions 3a, 5, by adding subdivisions; 256L.02,
2.19subdivision 2, by adding subdivisions; 256L.03, subdivisions 1, 1a, 3, 5, 6, by
2.20adding a subdivision; 256L.04, subdivisions 1, 7, 8, 10, by adding subdivisions;
2.21256L.05, subdivisions 1, 2, 3; 256L.06, subdivision 3; 256L.07, subdivisions 1,
2.222, 3; 256L.09, subdivision 2; 256L.11, subdivision 6; 256L.15, subdivisions 1, 2;
2.23257.0755, subdivision 1; 260B.007, subdivisions 6, 16; 260C.007, subdivisions
2.246, 31; 270B.14, subdivision 1; 471.59, subdivision 1; 626.556, subdivisions 2, 3,
2.2510d; 626.557, subdivisions 4, 9, 9a, 9e; 626.5572, subdivision 13; Laws 1998,
2.26chapter 407, article 6, section 116; Laws 2011, First Special Session chapter 9,
2.27article 1, section 3; article 2, section 27; article 10, section 3, subdivision 3,
2.28as amended; proposing coding for new law in Minnesota Statutes, chapters 3;
2.2962A; 62D; 144; 144A; 145; 149A; 214; 245; 245A; 245D; 254B; 256; 256B;
2.30256L; repealing Minnesota Statutes 2012, sections 103I.005, subdivision 20;
2.31144.123, subdivision 2; 144A.46; 144A.461; 149A.025; 149A.20, subdivision
2.328; 149A.30, subdivision 2; 149A.40, subdivision 8; 149A.45, subdivision 6;
2.33149A.50, subdivision 6; 149A.51, subdivision 7; 149A.52, subdivision 5a;
2.34149A.53, subdivision 9; 245A.655; 245B.01; 245B.02; 245B.03; 245B.031;
2.35245B.04; 245B.05, subdivisions 1, 2, 3, 5, 6, 7; 245B.055; 245B.06; 245B.07;
2.36245B.08; 245D.08; 256B.055, subdivisions 3, 5, 10b; 256B.056, subdivision 5b;
2.37256B.057, subdivisions 1c, 2; 256B.0911, subdivisions 4a, 4b, 4c; 256B.0917,
2.38subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 14; 256B.096, subdivisions 1, 2, 3, 4;
2.39256B.14, subdivision 3a; 256B.49, subdivision 16a; 256B.4913, subdivisions 1,
2.402, 3, 4; 256B.5012, subdivision 13; 256J.24, subdivision 6; 256K.45, subdivision
2.412; 256L.01, subdivision 4a; 256L.031; 256L.04, subdivisions 1b, 9, 10a;
2.42256L.05, subdivision 3b; 256L.07, subdivisions 5, 8, 9; 256L.11, subdivision 5;
2.43256L.12; 256L.17, subdivisions 1, 2, 3, 4, 5; 485.14; 609.093; Laws 2011, First
2.44Special Session chapter 9, article 7, section 54, as amended; Minnesota Rules,
2.45parts 4668.0002; 4668.0003; 4668.0005; 4668.0008; 4668.0012; 4668.0016;
2.464668.0017; 4668.0019; 4668.0030; 4668.0035; 4668.0040; 4668.0050;
2.474668.0060; 4668.0065; 4668.0070; 4668.0075; 4668.0080; 4668.0100;
2.484668.0110; 4668.0120; 4668.0130; 4668.0140; 4668.0150; 4668.0160;
2.494668.0170; 4668.0180; 4668.0190; 4668.0200; 4668.0218; 4668.0220;
2.504668.0230; 4668.0240; 4668.0800; 4668.0805; 4668.0810; 4668.0815;
2.514668.0820; 4668.0825; 4668.0830; 4668.0835; 4668.0840; 4668.0845;
2.524668.0855; 4668.0860; 4668.0865; 4668.0870; 4669.0001; 4669.0010;
2.534669.0020; 4669.0030; 4669.0040; 4669.0050.
2.54May 17, 2013
2.55The Honorable Paul Thissen
2.56Speaker of the House of Representatives
3.1The Honorable Sandra L. Pappas
3.2President of the Senate
3.3We, the undersigned conferees for H. F. No. 1233 report that we have agreed upon
3.4the items in dispute and recommend as follows:
3.5That the Senate recede from its amendments and that H. F. No. 1233 be further
3.6amended as follows:
3.7Delete everything after the enacting clause and insert:

3.8"ARTICLE 1
3.9AFFORDABLE CARE ACT IMPLEMENTATION; BETTER HEALTH
3.10CARE FOR MORE MINNESOTANS

3.11    Section 1. Minnesota Statutes 2012, section 16A.724, subdivision 3, is amended to read:
3.12    Subd. 3. MinnesotaCare federal receipts. Receipts received as a result of federal
3.13participation pertaining to administrative costs of the Minnesota health care reform waiver
3.14shall be deposited as nondedicated revenue in the health care access fund. Receipts
3.15received as a result of federal participation pertaining to grants shall be deposited in the
3.16federal fund and shall offset health care access funds for payments to providers. All federal
3.17funding received by Minnesota for implementation and administration of MinnesotaCare
3.18as a basic health program, as authorized in section 1331 of the Affordable Care Act,
3.19Public Law 111-148, as amended by Public Law 111-152, is dedicated to that program and
3.20shall be deposited into the health care access fund. Federal funding that is received for
3.21implementing and administering MinnesotaCare as a basic health program and deposited in
3.22the fund shall be used only for that program to purchase health care coverage for enrollees
3.23and reduce enrollee premiums and cost-sharing or provide additional enrollee benefits.
3.24EFFECTIVE DATE.This section is effective January 1, 2015.

3.25    Sec. 2. Minnesota Statutes 2012, section 254B.04, subdivision 1, is amended to read:
3.26    Subdivision 1. Eligibility. (a) Persons eligible for benefits under Code of Federal
3.27Regulations, title 25, part 20, persons eligible for medical assistance benefits under
3.28sections 256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, or who meet
3.29the income standards of section 256B.056, subdivision 4, and persons eligible for general
3.30assistance medical care under section 256D.03, subdivision 3, are entitled to chemical
3.31dependency fund services. State money appropriated for this paragraph must be placed in
3.32a separate account established for this purpose.
3.33Persons with dependent children who are determined to be in need of chemical
3.34dependency treatment pursuant to an assessment under section 626.556, subdivision 10, or
3.35a case plan under section 260C.201, subdivision 6, or 260C.212, shall be assisted by the
4.1local agency to access needed treatment services. Treatment services must be appropriate
4.2for the individual or family, which may include long-term care treatment or treatment in a
4.3facility that allows the dependent children to stay in the treatment facility. The county
4.4shall pay for out-of-home placement costs, if applicable.
4.5(b) A person not entitled to services under paragraph (a), but with family income
4.6that is less than 215 percent of the federal poverty guidelines for the applicable family
4.7size, shall be eligible to receive chemical dependency fund services within the limit
4.8of funds appropriated for this group for the fiscal year. If notified by the state agency
4.9of limited funds, a county must give preferential treatment to persons with dependent
4.10children who are in need of chemical dependency treatment pursuant to an assessment
4.11under section 626.556, subdivision 10, or a case plan under section 260C.201, subdivision
4.126
, or 260C.212. A county may spend money from its own sources to serve persons under
4.13this paragraph. State money appropriated for this paragraph must be placed in a separate
4.14account established for this purpose.
4.15(c) Persons whose income is between 215 percent and 412 percent of the federal
4.16poverty guidelines for the applicable family size shall be eligible for chemical dependency
4.17services on a sliding fee basis, within the limit of funds appropriated for this group for the
4.18fiscal year. Persons eligible under this paragraph must contribute to the cost of services
4.19according to the sliding fee scale established under subdivision 3. A county may spend
4.20money from its own sources to provide services to persons under this paragraph. State
4.21money appropriated for this paragraph must be placed in a separate account established
4.22for this purpose.
4.23EFFECTIVE DATE.This section is effective January 1, 2014.

4.24    Sec. 3. Minnesota Statutes 2012, section 256.01, is amended by adding a subdivision
4.25to read:
4.26    Subd. 35. Federal approval. (a) The commissioner shall seek federal authority
4.27from the U.S. Department of Health and Human Services necessary to operate a health
4.28coverage program for Minnesotans with incomes up to 275 percent of the federal poverty
4.29guidelines (FPG). The proposal shall seek to secure all federal funding available from at
4.30least the following services:
4.31(1) all premium tax credits and cost sharing subsidies available under United States
4.32Code, title 26, section 36B, and United States Code, title 42, section 18071, for individuals
4.33with incomes above 133 percent and at or below 275 percent of the federal poverty
4.34guidelines who would otherwise be enrolled in the Minnesota Insurance Marketplace as
4.35defined in section 62V.02;
5.1(2) Medicaid funding; and
5.2(3) other funding sources identified by the commissioner that support coverage or
5.3care redesign in Minnesota.
5.4(b) Funding received shall be used to design and implement a health coverage
5.5program that creates a single streamlined program and meets the needs of Minnesotans with
5.6incomes up to 275 percent of the federal poverty guidelines. The program must incorporate:
5.7(1) payment reform characteristics included in the health care delivery system and
5.8accountable care organization payment models;
5.9(2) flexibility in benefit set design such that benefits can be targeted to meet enrollee
5.10needs in different income and health status situations and can provide a more seamless
5.11transition from public to private health care coverage;
5.12(3) flexibility in co-payment or premium structures to incent patients to seek
5.13high-quality, low-cost care settings; and
5.14(4) flexibility in premium structures to ease the transition from public to private
5.15health care coverage.
5.16(c) The commissioner shall develop and submit a proposal consistent with the above
5.17criteria and shall seek all federal authority necessary to implement the health coverage
5.18program. In developing the request, the commissioner shall consult with appropriate
5.19stakeholder groups and consumers.
5.20(d) The commissioner is authorized to seek any available waivers or federal
5.21approvals to accomplish the goals under paragraph (b) prior to 2017.
5.22(e) The commissioner shall report to the chairs and ranking minority members of
5.23the legislative committees with jurisdiction over health and human services policy and
5.24financing by January 15, 2015, on the progress of receiving a federal waiver and shall
5.25make recommendations on any legislative changes necessary to accomplish the project
5.26in this subdivision. Any implementation of the waiver that requires a state financial
5.27contribution to operate a health coverage program for Minnesotans with incomes between
5.28200 and 275 percent of the federal poverty guidelines, shall be contingent on legislative
5.29action approving the contribution.
5.30(f) The commissioner is authorized to accept and expend federal funds that support
5.31the purposes of this subdivision.

5.32    Sec. 4. Minnesota Statutes 2012, section 256.015, subdivision 1, is amended to read:
5.33    Subdivision 1. State agency has lien. When the state agency provides, pays for, or
5.34becomes liable for medical care or furnishes subsistence or other payments to a person,
5.35the agency shall have a lien for the cost of the care and payments on any and all causes of
6.1action or recovery rights under any policy, plan, or contract providing benefits for health
6.2care or injury which accrue to the person to whom the care or payments were furnished,
6.3or to the person's legal representatives, as a result of the occurrence that necessitated the
6.4medical care, subsistence, or other payments. For purposes of this section, "state agency"
6.5includes prepaid health plans under contract with the commissioner according to sections
6.6256B.69 , 256D.03, subdivision 4, paragraph (c), and 256L.12, 256L.01, subdivision 7,
6.7and 256L.03, subdivision 6; children's mental health collaboratives under section 245.493;
6.8demonstration projects for persons with disabilities under section 256B.77; nursing
6.9homes under the alternative payment demonstration project under section 256B.434; and
6.10county-based purchasing entities under section 256B.692.

6.11    Sec. 5. Minnesota Statutes 2012, section 256B.02, subdivision 17, as added by Laws
6.122013, chapter 1, section 1, is amended to read:
6.13    Subd. 17. Affordable Care Act or ACA. "Affordable Care Act" or "ACA" means
6.14Public Law 111-148, as amended by the federal Health Care and Education Reconciliation
6.15Act of 2010 (Public Law 111-152), and any amendments to, or regulations or guidance
6.16issued under, those acts means the federal Patient Protection and Affordable Care Act,
6.17Public Law 111-148, as amended, including the federal Health Care and Education
6.18Reconciliation Act of 2010, Public Law 111-152, and any amendments to, and any federal
6.19guidance or regulations issued under, these acts.
6.20EFFECTIVE DATE.This section is effective July 1, 2013.

6.21    Sec. 6. Minnesota Statutes 2012, section 256B.02, is amended by adding a subdivision
6.22to read:
6.23    Subd. 18. Caretaker relative. "Caretaker relative" means a relative, by blood,
6.24adoption, or marriage, of a child under age 19 with whom the child is living and who
6.25assumes primary responsibility for the child's care.
6.26EFFECTIVE DATE.This section is effective January 1, 2014.

6.27    Sec. 7. Minnesota Statutes 2012, section 256B.02, is amended by adding a subdivision
6.28to read:
6.29    Subd. 19. Insurance affordability program. "Insurance affordability program"
6.30means one of the following programs:
6.31(1) medical assistance under this chapter;
7.1(2) a program that provides advance payments of the premium tax credits established
7.2under section 36B of the Internal Revenue Code or cost-sharing reductions established
7.3under section 1402 of the Affordable Care Act;
7.4(3) MinnesotaCare as defined in chapter 256L; and
7.5(4) a Basic Health Plan as defined in section 1331 of the Affordable Care Act.
7.6EFFECTIVE DATE.This section is effective the day following final enactment.

7.7    Sec. 8. Minnesota Statutes 2012, section 256B.04, subdivision 18, is amended to read:
7.8    Subd. 18. Applications for medical assistance. (a) The state agency may take
7.9 shall accept applications for medical assistance and conduct eligibility determinations for
7.10MinnesotaCare enrollees by telephone, via mail, in-person, online via an Internet Web
7.11site, and through other commonly available electronic means.
7.12    (b) The commissioner of human services shall modify the Minnesota health care
7.13programs application form to add a question asking applicants whether they have ever
7.14served in the United States military.
7.15    (c) For each individual who submits an application or whose eligibility is subject to
7.16renewal or whose eligibility is being redetermined pursuant to a change in circumstances,
7.17if the agency determines the individual is not eligible for medical assistance, the agency
7.18shall determine potential eligibility for other insurance affordability programs.
7.19EFFECTIVE DATE.This section is effective January 1, 2014.

7.20    Sec. 9. Minnesota Statutes 2012, section 256B.055, subdivision 3a, is amended to read:
7.21    Subd. 3a. Families with children. Beginning July 1, 2002, Medical assistance may
7.22be paid for a person who is a child under the age of 18, or age 18 if a full-time student
7.23in a secondary school, or in the equivalent level of vocational or technical training, and
7.24reasonably expected to complete the program before reaching age 19; the parent or
7.25stepparent of a dependent child under the age of 19, including a pregnant woman; or a
7.26caretaker relative of a dependent child under the age of 19.
7.27EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
7.28approval, whichever is later. The commissioner of human services shall notify the revisor
7.29of statutes when federal approval is obtained.

7.30    Sec. 10. Minnesota Statutes 2012, section 256B.055, subdivision 6, is amended to read:
7.31    Subd. 6. Pregnant women; needy unborn child. Medical assistance may be paid
7.32for a pregnant woman who has written verification of a positive pregnancy test from a
8.1physician or licensed registered nurse, who meets the other eligibility criteria of this
8.2section and whose unborn child would be eligible as a needy child under subdivision 10 if
8.3born and living with the woman. In accordance with Code of Federal Regulations, title
8.442, section 435.956, the commissioner must accept self-attestation of pregnancy unless
8.5the agency has information that is not reasonably compatible with such attestation. For
8.6purposes of this subdivision, a woman is considered pregnant for 60 days postpartum.
8.7EFFECTIVE DATE.This section is effective January 1, 2014.

8.8    Sec. 11. Minnesota Statutes 2012, section 256B.055, subdivision 10, is amended to read:
8.9    Subd. 10. Infants. Medical assistance may be paid for an infant less than one year
8.10of age, whose mother was eligible for and receiving medical assistance at the time of birth
8.11or who is less than two years of age and is in a family with countable income that is equal
8.12to or less than the income standard established under section 256B.057, subdivision 1.
8.13EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
8.14approval, whichever is later. The commissioner of human services shall notify the revisor
8.15of statutes when federal approval is obtained.

8.16    Sec. 12. Minnesota Statutes 2012, section 256B.055, subdivision 15, is amended to read:
8.17    Subd. 15. Adults without children. Medical assistance may be paid for a person
8.18who is:
8.19(1) at least age 21 and under age 65;
8.20(2) not pregnant;
8.21(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII
8.22of the Social Security Act;
8.23(4) not an adult in a family with children as defined in section 256L.01, subdivision
8.243a
; and not otherwise eligible under subdivision 7 as a person who meets the categorical
8.25eligibility requirements of the supplemental security income program;
8.26(5) not enrolled under subdivision 7 as a person who would meet the categorical
8.27eligibility requirements of the supplemental security income program except for excess
8.28income or assets; and
8.29(5) (6) not described in another subdivision of this section.
8.30EFFECTIVE DATE.This section is effective January 1, 2014.

8.31    Sec. 13. Minnesota Statutes 2012, section 256B.055, is amended by adding a
8.32subdivision to read:
9.1    Subd. 17. Adults who were in foster care at the age of 18. Medical assistance may
9.2be paid for a person under 26 years of age who was in foster care under the commissioner's
9.3responsibility on the date of attaining 18 years of age, and who was enrolled in medical
9.4assistance under the state plan or a waiver of the plan while in foster care, in accordance
9.5with section 2004 of the Affordable Care Act.
9.6EFFECTIVE DATE.This section is effective January 1, 2014.

9.7    Sec. 14. Minnesota Statutes 2012, section 256B.056, subdivision 1, is amended to read:
9.8    Subdivision 1. Residency. To be eligible for medical assistance, a person must
9.9reside in Minnesota, or, if absent from the state, be deemed to be a resident of Minnesota,
9.10 in accordance with the rules of the state agency Code of Federal Regulations, title 42,
9.11section 435.403.
9.12EFFECTIVE DATE.This section is effective January 1, 2014.

9.13    Sec. 15. Minnesota Statutes 2012, section 256B.056, subdivision 1c, is amended to read:
9.14    Subd. 1c. Families with children income methodology. (a)(1) [Expired, 1Sp2003
9.15c 14 art 12 s 17]
9.16(2) For applications processed within one calendar month prior to July 1, 2003,
9.17eligibility shall be determined by applying the income standards and methodologies in
9.18effect prior to July 1, 2003, for any months in the six-month budget period before July
9.191, 2003, and the income standards and methodologies in effect on July 1, 2003, for any
9.20months in the six-month budget period on or after that date. The income standards for
9.21each month shall be added together and compared to the applicant's total countable income
9.22for the six-month budget period to determine eligibility.
9.23(3) For children ages one through 18 whose eligibility is determined under section
9.24256B.057, subdivision 2, the following deductions shall be applied to income counted
9.25toward the child's eligibility as allowed under the state's AFDC plan in effect as of July
9.2616, 1996: $90 work expense, dependent care, and child support paid under court order.
9.27This clause is effective October 1, 2003.
9.28(b) For families with children whose eligibility is determined using the standard
9.29specified in section 256B.056, subdivision 4, paragraph (c), 17 percent of countable
9.30earned income shall be disregarded for up to four months and the following deductions
9.31shall be applied to each individual's income counted toward eligibility as allowed under
9.32the state's AFDC plan in effect as of July 16, 1996: dependent care and child support paid
9.33under court order.
10.1(c) If the four-month disregard in paragraph (b) has been applied to the wage
10.2earner's income for four months, the disregard shall not be applied again until the wage
10.3earner's income has not been considered in determining medical assistance eligibility for
10.412 consecutive months.
10.5(d) (b) The commissioner shall adjust the income standards under this section each
10.6July 1 by the annual update of the federal poverty guidelines following publication by the
10.7United States Department of Health and Human Services except that the income standards
10.8shall not go below those in effect on July 1, 2009.
10.9(e) (c) For children age 18 or under, annual gifts of $2,000 or less by a tax-exempt
10.10organization to or for the benefit of the child with a life-threatening illness must be
10.11disregarded from income.
10.12EFFECTIVE DATE.This section is effective January 1, 2014.

10.13    Sec. 16. Minnesota Statutes 2012, section 256B.056, subdivision 3, is amended to read:
10.14    Subd. 3. Asset limitations for certain individuals and families. (a) To be
10.15eligible for medical assistance, a person must not individually own more than $3,000 in
10.16assets, or if a member of a household with two family members, husband and wife, or
10.17parent and child, the household must not own more than $6,000 in assets, plus $200 for
10.18each additional legal dependent. In addition to these maximum amounts, an eligible
10.19individual or family may accrue interest on these amounts, but they must be reduced to the
10.20maximum at the time of an eligibility redetermination. The accumulation of the clothing
10.21and personal needs allowance according to section 256B.35 must also be reduced to the
10.22maximum at the time of the eligibility redetermination. The value of assets that are not
10.23considered in determining eligibility for medical assistance is the value of those assets
10.24excluded under the supplemental security income program for aged, blind, and disabled
10.25persons, with the following exceptions:
10.26(1) household goods and personal effects are not considered;
10.27(2) capital and operating assets of a trade or business that the local agency determines
10.28are necessary to the person's ability to earn an income are not considered;
10.29(3) motor vehicles are excluded to the same extent excluded by the supplemental
10.30security income program;
10.31(4) assets designated as burial expenses are excluded to the same extent excluded by
10.32the supplemental security income program. Burial expenses funded by annuity contracts
10.33or life insurance policies must irrevocably designate the individual's estate as contingent
10.34beneficiary to the extent proceeds are not used for payment of selected burial expenses;
11.1(5) for a person who no longer qualifies as an employed person with a disability due
11.2to loss of earnings, assets allowed while eligible for medical assistance under section
11.3256B.057, subdivision 9 , are not considered for 12 months, beginning with the first month
11.4of ineligibility as an employed person with a disability, to the extent that the person's total
11.5assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph (d);
11.6    (6) when a person enrolled in medical assistance under section 256B.057, subdivision
11.79
, is age 65 or older and has been enrolled during each of the 24 consecutive months
11.8before the person's 65th birthday, the assets owned by the person and the person's spouse
11.9must be disregarded, up to the limits of section 256B.057, subdivision 9, paragraph (d),
11.10when determining eligibility for medical assistance under section 256B.055, subdivision
11.117
. The income of a spouse of a person enrolled in medical assistance under section
11.12256B.057, subdivision 9 , during each of the 24 consecutive months before the person's
11.1365th birthday must be disregarded when determining eligibility for medical assistance
11.14under section 256B.055, subdivision 7. Persons eligible under this clause are not subject to
11.15the provisions in section 256B.059. A person whose 65th birthday occurs in 2012 or 2013
11.16is required to have qualified for medical assistance under section 256B.057, subdivision 9,
11.17prior to age 65 for at least 20 months in the 24 months prior to reaching age 65; and
11.18(7) effective July 1, 2009, certain assets owned by American Indians are excluded as
11.19required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
11.20Law 111-5. For purposes of this clause, an American Indian is any person who meets the
11.21definition of Indian according to Code of Federal Regulations, title 42, section 447.50.
11.22(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision
11.2315.
11.24EFFECTIVE DATE.This section is effective January 1, 2014.

11.25    Sec. 17. Minnesota Statutes 2012, section 256B.056, subdivision 4, as amended by
11.26Laws 2013, chapter 1, section 5, is amended to read:
11.27    Subd. 4. Income. (a) To be eligible for medical assistance, a person eligible under
11.28section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of
11.29the federal poverty guidelines. Effective January 1, 2000, and each successive January,
11.30recipients of supplemental security income may have an income up to the supplemental
11.31security income standard in effect on that date.
11.32(b) To be eligible for medical assistance, families and children may have an income
11.33up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996,
11.34AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16,
11.351996, shall be increased by three percent.
12.1(c) (b) Effective January 1, 2014, to be eligible for medical assistance, under section
12.2256B.055, subdivision 3a , a parent or caretaker relative may have an income up to 133
12.3percent of the federal poverty guidelines for the household size.
12.4(d) (c) To be eligible for medical assistance under section 256B.055, subdivision
12.515
, a person may have an income up to 133 percent of federal poverty guidelines for
12.6the household size.
12.7(e) (d) To be eligible for medical assistance under section 256B.055, subdivision
12.816
, a child age 19 to 20 may have an income up to 133 percent of the federal poverty
12.9guidelines for the household size.
12.10(f) (e) To be eligible for medical assistance under section 256B.055, subdivision 3a,
12.11a child under age 19 may have income up to 275 percent of the federal poverty guidelines
12.12for the household size or an equivalent standard when converted using modified adjusted
12.13gross income methodology as required under the Affordable Care Act. Children who are
12.14enrolled in medical assistance as of December 31, 2013, and are determined ineligible
12.15for medical assistance because of the elimination of income disregards under modified
12.16adjusted gross income methodology as defined in subdivision 1a remain eligible for
12.17medical assistance under the Children's Health Insurance Program Reauthorization Act
12.18of 2009, Public Law 111-3, until the date of their next regularly scheduled eligibility
12.19redetermination as required in section 256B.056, subdivision 7a.
12.20(f) In computing income to determine eligibility of persons under paragraphs (a) to
12.21(e) who are not residents of long-term care facilities, the commissioner shall disregard
12.22increases in income as required by Public Laws 94-566, section 503; 99-272; and 99-509.
12.23For persons eligible under paragraph (a), veteran aid and attendance benefits and Veterans
12.24Administration unusual medical expense payments are considered income to the recipient.
12.25EFFECTIVE DATE.This section is effective January 1, 2014.

12.26    Sec. 18. Minnesota Statutes 2012, section 256B.056, subdivision 5c, is amended to read:
12.27    Subd. 5c. Excess income standard. (a) The excess income standard for families
12.28with children parents and caretaker relatives, pregnant women, infants, and children ages
12.29two through 20 is the standard specified in subdivision 4, paragraph (b).
12.30(b) The excess income standard for a person whose eligibility is based on blindness,
12.31disability, or age of 65 or more years is 70 percent of the federal poverty guidelines for the
12.32family size. Effective July 1, 2002, the excess income standard for this paragraph shall
12.33equal 75 percent of the federal poverty guidelines.
12.34EFFECTIVE DATE.This section is effective January 1, 2014.

13.1    Sec. 19. Minnesota Statutes 2012, section 256B.056, is amended by adding a
13.2subdivision to read:
13.3    Subd. 7a. Periodic renewal of eligibility. (a) The commissioner shall make an
13.4annual redetermination of eligibility based on information contained in the enrollee's case
13.5file and other information available to the agency, including but not limited to information
13.6accessed through an electronic database, without requiring the enrollee to submit any
13.7information when sufficient data is available for the agency to renew eligibility.
13.8(b) If the commissioner cannot renew eligibility in accordance with paragraph (a),
13.9the commissioner must provide the enrollee with a prepopulated renewal form containing
13.10eligibility information available to the agency and permit the enrollee to submit the form
13.11with any corrections or additional information to the agency and sign the renewal form via
13.12any of the modes of submission specified in section 256B.04, subdivision 18.
13.13(c) An enrollee who is terminated for failure to complete the renewal process may
13.14subsequently submit the renewal form and required information within four months after
13.15the date of termination and have coverage reinstated without a lapse, if otherwise eligible
13.16under this chapter.
13.17(d) Notwithstanding paragraph (a), individuals eligible under subdivision 5 shall be
13.18required to renew eligibility every six months.
13.19EFFECTIVE DATE.This section is effective January 1, 2014.

13.20    Sec. 20. Minnesota Statutes 2012, section 256B.056, subdivision 10, is amended to read:
13.21    Subd. 10. Eligibility verification. (a) The commissioner shall require women who
13.22are applying for the continuation of medical assistance coverage following the end of the
13.2360-day postpartum period to update their income and asset information and to submit
13.24any required income or asset verification.
13.25    (b) The commissioner shall determine the eligibility of private-sector health care
13.26coverage for infants less than one year of age eligible under section 256B.055, subdivision
13.2710
, or 256B.057, subdivision 1, paragraph (d), and shall pay for private-sector coverage
13.28if this is determined to be cost-effective.
13.29    (c) The commissioner shall verify assets and income for all applicants, and for all
13.30recipients upon renewal.
13.31    (d) The commissioner shall utilize information obtained through the electronic
13.32service established by the secretary of the United States Department of Health and Human
13.33Services and other available electronic data sources in Code of Federal Regulations, title
13.3442, sections 435.940 to 435.956, to verify eligibility requirements. The commissioner
13.35shall establish standards to define when information obtained electronically is reasonably
14.1compatible with information provided by applicants and enrollees, including use of
14.2self-attestation, to accomplish real-time eligibility determinations and maintain program
14.3integrity.
14.4EFFECTIVE DATE.This section is effective January 1, 2014.

14.5    Sec. 21. Minnesota Statutes 2012, section 256B.057, subdivision 1, is amended to read:
14.6    Subdivision 1. Infants and pregnant women. (a)(1) An infant less than one year
14.7 two years of age or a pregnant woman who has written verification of a positive pregnancy
14.8test from a physician or licensed registered nurse is eligible for medical assistance if the
14.9individual's countable family household income is equal to or less than 275 percent of the
14.10federal poverty guideline for the same family household size or an equivalent standard
14.11when converted using modified adjusted gross income methodology as required under
14.12the Affordable Care Act. For purposes of this subdivision, "countable family income"
14.13means the amount of income considered available using the methodology of the AFDC
14.14program under the state's AFDC plan as of July 16, 1996, as required by the Personal
14.15Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public
14.16Law 104-193, except for the earned income disregard and employment deductions.
14.17    (2) For applications processed within one calendar month prior to the effective date,
14.18eligibility shall be determined by applying the income standards and methodologies in
14.19effect prior to the effective date for any months in the six-month budget period before
14.20that date and the income standards and methodologies in effect on the effective date for
14.21any months in the six-month budget period on or after that date. The income standards
14.22for each month shall be added together and compared to the applicant's total countable
14.23income for the six-month budget period to determine eligibility.
14.24    (b)(1) [Expired, 1Sp2003 c 14 art 12 s 19]
14.25    (2) For applications processed within one calendar month prior to July 1, 2003,
14.26eligibility shall be determined by applying the income standards and methodologies in
14.27effect prior to July 1, 2003, for any months in the six-month budget period before July 1,
14.282003, and the income standards and methodologies in effect on the expiration date for any
14.29months in the six-month budget period on or after July 1, 2003. The income standards
14.30for each month shall be added together and compared to the applicant's total countable
14.31income for the six-month budget period to determine eligibility.
14.32    (3) An amount equal to the amount of earned income exceeding 275 percent of
14.33the federal poverty guideline, up to a maximum of the amount by which the combined
14.34total of 185 percent of the federal poverty guideline plus the earned income disregards
14.35and deductions allowed under the state's AFDC plan as of July 16, 1996, as required
15.1by the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA), Public
15.2Law 104-193, exceeds 275 percent of the federal poverty guideline will be deducted for
15.3pregnant women and infants less than one year of age.
15.4    (c) Dependent care and child support paid under court order shall be deducted from
15.5the countable income of pregnant women.
15.6    (d) (b) An infant born to a woman who was eligible for and receiving medical
15.7assistance on the date of the child's birth shall continue to be eligible for medical assistance
15.8without redetermination until the child's first birthday.
15.9EFFECTIVE DATE.This section is effective January 1, 2014.

15.10    Sec. 22. Minnesota Statutes 2012, section 256B.057, subdivision 8, is amended to read:
15.11    Subd. 8. Children under age two. Medical assistance may be paid for a child under
15.12two years of age whose countable family income is above 275 percent of the federal poverty
15.13guidelines for the same size family but less than or equal to 280 percent of the federal
15.14poverty guidelines for the same size family or an equivalent standard when converted using
15.15modified adjusted gross income methodology as required under the Affordable Care Act.
15.16EFFECTIVE DATE.This section is effective January 1, 2014.

15.17    Sec. 23. Minnesota Statutes 2012, section 256B.057, subdivision 10, is amended to read:
15.18    Subd. 10. Certain persons needing treatment for breast or cervical cancer. (a)
15.19Medical assistance may be paid for a person who:
15.20(1) has been screened for breast or cervical cancer by the Minnesota breast and
15.21cervical cancer control program, and program funds have been used to pay for the person's
15.22screening;
15.23(2) according to the person's treating health professional, needs treatment, including
15.24diagnostic services necessary to determine the extent and proper course of treatment, for
15.25breast or cervical cancer, including precancerous conditions and early stage cancer;
15.26(3) meets the income eligibility guidelines for the Minnesota breast and cervical
15.27cancer control program;
15.28(4) is under age 65;
15.29(5) is not otherwise eligible for medical assistance under United States Code, title
15.3042, section 1396a(a)(10)(A)(i); and
15.31(6) is not otherwise covered under creditable coverage, as defined under United
15.32States Code, title 42, section 1396a(aa).
16.1(b) Medical assistance provided for an eligible person under this subdivision shall
16.2be limited to services provided during the period that the person receives treatment for
16.3breast or cervical cancer.
16.4(c) A person meeting the criteria in paragraph (a) is eligible for medical assistance
16.5without meeting the eligibility criteria relating to income and assets in section 256B.056,
16.6subdivisions 1a to 5b 5a.
16.7EFFECTIVE DATE.This section is effective January 1, 2014.

16.8    Sec. 24. Minnesota Statutes 2012, section 256B.057, is amended by adding a
16.9subdivision to read:
16.10    Subd. 12. Presumptive eligibility determinations made by qualified hospitals.
16.11The commissioner shall establish a process to qualify hospitals that are participating
16.12providers under the medical assistance program to determine presumptive eligibility for
16.13medical assistance for applicants who may have a basis of eligibility using the modified
16.14adjusted gross income methodology as defined in section 256B.056, subdivision 1a,
16.15paragraph (b), clause (1).
16.16EFFECTIVE DATE.This section is effective January 1, 2014.

16.17    Sec. 25. Minnesota Statutes 2012, section 256B.06, subdivision 4, is amended to read:
16.18    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited
16.19to citizens of the United States, qualified noncitizens as defined in this subdivision, and
16.20other persons residing lawfully in the United States. Citizens or nationals of the United
16.21States must cooperate in obtaining satisfactory documentary evidence of citizenship or
16.22nationality according to the requirements of the federal Deficit Reduction Act of 2005,
16.23Public Law 109-171.
16.24(b) "Qualified noncitizen" means a person who meets one of the following
16.25immigration criteria:
16.26(1) admitted for lawful permanent residence according to United States Code, title 8;
16.27(2) admitted to the United States as a refugee according to United States Code,
16.28title 8, section 1157;
16.29(3) granted asylum according to United States Code, title 8, section 1158;
16.30(4) granted withholding of deportation according to United States Code, title 8,
16.31section 1253(h);
16.32(5) paroled for a period of at least one year according to United States Code, title 8,
16.33section 1182(d)(5);
17.1(6) granted conditional entrant status according to United States Code, title 8,
17.2section 1153(a)(7);
17.3(7) determined to be a battered noncitizen by the United States Attorney General
17.4according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996,
17.5title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
17.6(8) is a child of a noncitizen determined to be a battered noncitizen by the United
17.7States Attorney General according to the Illegal Immigration Reform and Immigrant
17.8Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill,
17.9Public Law 104-200; or
17.10(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public
17.11Law 96-422, the Refugee Education Assistance Act of 1980.
17.12(c) All qualified noncitizens who were residing in the United States before August
17.1322, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for
17.14medical assistance with federal financial participation.
17.15(d) Beginning December 1, 1996, qualified noncitizens who entered the United
17.16States on or after August 22, 1996, and who otherwise meet the eligibility requirements
17.17of this chapter are eligible for medical assistance with federal participation for five years
17.18if they meet one of the following criteria:
17.19(1) refugees admitted to the United States according to United States Code, title 8,
17.20section 1157;
17.21(2) persons granted asylum according to United States Code, title 8, section 1158;
17.22(3) persons granted withholding of deportation according to United States Code,
17.23title 8, section 1253(h);
17.24(4) veterans of the United States armed forces with an honorable discharge for
17.25a reason other than noncitizen status, their spouses and unmarried minor dependent
17.26children; or
17.27(5) persons on active duty in the United States armed forces, other than for training,
17.28their spouses and unmarried minor dependent children.
17.29 Beginning July 1, 2010, children and pregnant women who are noncitizens
17.30described in paragraph (b) or who are lawfully present in the United States as defined
17.31in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet
17.32eligibility requirements of this chapter, are eligible for medical assistance with federal
17.33financial participation as provided by the federal Children's Health Insurance Program
17.34Reauthorization Act of 2009, Public Law 111-3.
17.35(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter
17.36are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this
18.1subdivision, a "nonimmigrant" is a person in one of the classes listed in United States
18.2Code, title 8, section 1101(a)(15).
18.3(f) Payment shall also be made for care and services that are furnished to noncitizens,
18.4regardless of immigration status, who otherwise meet the eligibility requirements of
18.5this chapter, if such care and services are necessary for the treatment of an emergency
18.6medical condition.
18.7(g) For purposes of this subdivision, the term "emergency medical condition" means
18.8a medical condition that meets the requirements of United States Code, title 42, section
18.91396b(v).
18.10(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment
18.11of an emergency medical condition are limited to the following:
18.12(i) services delivered in an emergency room or by an ambulance service licensed
18.13under chapter 144E that are directly related to the treatment of an emergency medical
18.14condition;
18.15(ii) services delivered in an inpatient hospital setting following admission from an
18.16emergency room or clinic for an acute emergency condition; and
18.17(iii) follow-up services that are directly related to the original service provided
18.18to treat the emergency medical condition and are covered by the global payment made
18.19to the provider.
18.20    (2) Services for the treatment of emergency medical conditions do not include:
18.21(i) services delivered in an emergency room or inpatient setting to treat a
18.22nonemergency condition;
18.23(ii) organ transplants, stem cell transplants, and related care;
18.24(iii) services for routine prenatal care;
18.25(iv) continuing care, including long-term care, nursing facility services, home health
18.26care, adult day care, day training, or supportive living services;
18.27(v) elective surgery;
18.28(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as
18.29part of an emergency room visit;
18.30(vii) preventative health care and family planning services;
18.31(viii) dialysis;
18.32(ix) chemotherapy or therapeutic radiation services;
18.33(x) rehabilitation services;
18.34(xi) physical, occupational, or speech therapy;
18.35(xii) transportation services;
18.36(xiii) case management;
19.1(xiv) prosthetics, orthotics, durable medical equipment, or medical supplies;
19.2(xv) dental services;
19.3(xvi) hospice care;
19.4(xvii) audiology services and hearing aids;
19.5(xviii) podiatry services;
19.6(xix) chiropractic services;
19.7(xx) immunizations;
19.8(xxi) vision services and eyeglasses;
19.9(xxii) waiver services;
19.10(xxiii) individualized education programs; or
19.11(xxiv) chemical dependency treatment.
19.12(i) Beginning July 1, 2009, Pregnant noncitizens who are undocumented,
19.13nonimmigrants, or lawfully present in the United States as defined in Code of Federal
19.14Regulations, title 8, section 103.12, ineligible for federally funded medical assistance
19.15because of immigration status, are not covered by a group health plan or health insurance
19.16coverage according to Code of Federal Regulations, title 42, section 457.310, and who
19.17 otherwise meet the eligibility requirements of this chapter, are eligible for medical
19.18assistance through the period of pregnancy, including labor and delivery, and 60 days
19.19postpartum, to the extent federal funds are available under title XXI of the Social Security
19.20Act, and the state children's health insurance program.
19.21(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation
19.22services from a nonprofit center established to serve victims of torture and are otherwise
19.23ineligible for medical assistance under this chapter are eligible for medical assistance
19.24without federal financial participation. These individuals are eligible only for the period
19.25during which they are receiving services from the center. Individuals eligible under this
19.26paragraph shall not be required to participate in prepaid medical assistance.
19.27EFFECTIVE DATE.This section is effective January 1, 2014.

19.28    Sec. 26. Minnesota Statutes 2012, section 256B.0755, subdivision 3, is amended to read:
19.29    Subd. 3. Accountability. (a) Health care delivery systems must accept responsibility
19.30for the quality of care based on standards established under subdivision 1, paragraph (b),
19.31clause (10), and the cost of care or utilization of services provided to its enrollees under
19.32subdivision 1, paragraph (b), clause (1).
19.33(b) A health care delivery system may contract and coordinate with providers and
19.34clinics for the delivery of services and shall contract with community health clinics,
20.1federally qualified health centers, community mental health centers or programs, county
20.2agencies, and rural clinics to the extent practicable.
20.3(c) A health care delivery system must indicate how it will coordinate with other
20.4services affecting its patients' health, quality of care, and cost of care that are provided by
20.5other providers, county agencies, and other organizations in the local service area. The
20.6health care delivery system must indicate how it will engage other providers, counties, and
20.7organizations, including county-based purchasing plans, that provide services to patients
20.8of the health care delivery system on issues related to local population health, including
20.9applicable local needs, priorities, and public health goals. The health care delivery system
20.10must describe how local providers, counties, organizations, including county-based
20.11purchasing plans, and other relevant purchasers were consulted in developing the
20.12application to participate in the demonstration project.
20.13EFFECTIVE DATE.This section is effective July 1, 2013, and applies to health
20.14care delivery system contracts entered into on or after that date.

20.15    Sec. 27. Minnesota Statutes 2012, section 256B.694, is amended to read:
20.16256B.694 SOLE-SOURCE OR SINGLE-PLAN MANAGED CARE
20.17CONTRACT.
20.18    (a) MS 2010 [Expired, 2008 c 364 s 10]
20.19    (b) The commissioner shall consider, and may approve, contracting on a
20.20single-health plan basis with other county-based purchasing plans, or with other qualified
20.21health plans that have coordination arrangements with counties, to serve persons with a
20.22disability who voluntarily enroll enrolled in state public health care programs, in order
20.23to promote better coordination or integration of health care services, social services and
20.24other community-based services, provided that all requirements applicable to health plan
20.25purchasing, including those in section 256B.69, subdivision 23 sections 256B.69 and
20.26256B.692, are satisfied. Nothing in this paragraph supersedes or modifies the requirements
20.27in paragraph (a).

20.28    Sec. 28. Minnesota Statutes 2012, section 256L.01, is amended by adding a subdivision
20.29to read:
20.30    Subd. 1b. Affordable Care Act. "Affordable Care Act" means the federal Patient
20.31Protection and Affordable Care Act, Public Law 111-148, as amended, including the
20.32federal Health Care and Education Reconciliation Act of 2010, Public Law 111-152, and
20.33any amendments to, and any federal guidance or regulations issued under, these acts.

21.1    Sec. 29. Minnesota Statutes 2012, section 256L.01, subdivision 3a, is amended to read:
21.2    Subd. 3a. Family with children. (a) "Family with children" means:
21.3(1) parents and their children residing in the same household; or
21.4(2) grandparents, foster parents, relative caretakers as defined in the medical
21.5assistance program, or legal guardians; and their wards who are children residing in the
21.6same household. "Family" has the meaning given for family and family size as defined
21.7in Code of Federal Regulations, title 26, section 1.36B-1.
21.8(b) The term includes children who are temporarily absent from the household in
21.9settings such as schools, camps, or parenting time with noncustodial parents.
21.10EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
21.11approval, whichever is later. The commissioner of human services shall notify the revisor
21.12of statutes when federal approval is obtained.

21.13    Sec. 30. Minnesota Statutes 2012, section 256L.01, subdivision 5, is amended to read:
21.14    Subd. 5. Income. (a) "Income" has the meaning given for earned and unearned
21.15income for families and children in the medical assistance program, according to the
21.16state's aid to families with dependent children plan in effect as of July 16, 1996. The
21.17definition does not include medical assistance income methodologies and deeming
21.18requirements. The earned income of full-time and part-time students under age 19 is
21.19not counted as income. Public assistance payments and supplemental security income
21.20are not excluded income modified adjusted gross income, as defined in Code of Federal
21.21Regulations, title 26, section 1.36B-1.
21.22(b) For purposes of this subdivision, and unless otherwise specified in this section,
21.23the commissioner shall use reasonable methods to calculate gross earned and unearned
21.24income including, but not limited to, projecting income based on income received within
21.25the past 30 days, the last 90 days, or the last 12 months.
21.26EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
21.27approval, whichever is later. The commissioner of human services shall notify the revisor
21.28of statutes when federal approval is obtained.

21.29    Sec. 31. Minnesota Statutes 2012, section 256L.01, is amended by adding a subdivision
21.30to read:
21.31    Subd. 6. Minnesota Insurance Marketplace. "Minnesota Insurance Marketplace"
21.32means the Minnesota Insurance Marketplace as defined in section 62V.02.

22.1    Sec. 32. Minnesota Statutes 2012, section 256L.01, is amended by adding a subdivision
22.2to read:
22.3    Subd. 7. Participating entity. "Participating entity" means a health carrier as
22.4defined in section 62A.01, subdivision 2; a county-based purchasing plan established
22.5under section 256B.692; an accountable care organization or other entity operating a
22.6health care delivery systems demonstration project authorized under section 256B.0755;
22.7an entity operating a county integrated health care delivery network pilot project
22.8authorized under section 256B.0756; or a network of health care providers established to
22.9offer services under MinnesotaCare.
22.10EFFECTIVE DATE.This section is effective January 1, 2015.

22.11    Sec. 33. Minnesota Statutes 2012, section 256L.02, subdivision 2, is amended to read:
22.12    Subd. 2. Commissioner's duties. (a) The commissioner shall establish an office
22.13for the state administration of this plan. The plan shall be used to provide covered health
22.14services for eligible persons. Payment for these services shall be made to all eligible
22.15providers participating entities under contract with the commissioner. The commissioner
22.16shall adopt rules to administer the MinnesotaCare program. The commissioner shall
22.17establish marketing efforts to encourage potentially eligible persons to receive information
22.18about the program and about other medical care programs administered or supervised by
22.19the Department of Human Services.
22.20(b) A toll-free telephone number and Web site must be used to provide information
22.21about medical programs and to promote access to the covered services.
22.22EFFECTIVE DATE.Paragraph (a) is effective January 1, 2015. Paragraph (b) is
22.23effective January 1, 2014, or upon federal approval, whichever is later. The commissioner
22.24of human services shall notify the revisor of statutes when federal approval is obtained.

22.25    Sec. 34. Minnesota Statutes 2012, section 256L.02, is amended by adding a subdivision
22.26to read:
22.27    Subd. 6. Federal approval. (a) The commissioner of human services shall seek
22.28federal approval to implement the MinnesotaCare program under this chapter as a basic
22.29health program. In any agreement with the Centers for Medicare and Medicaid Services
22.30to operate MinnesotaCare as a basic health program, the commissioner shall seek to
22.31include procedures to ensure that federal funding is predictable, stable, and sufficient
22.32to sustain ongoing operation of MinnesotaCare. These procedures must address issues
22.33related to the timing of federal payments, payment reconciliation, enrollee risk adjustment,
23.1and minimization of state financial risk. The commissioner shall consult with the
23.2commissioner of management and budget, when developing the proposal for establishing
23.3MinnesotaCare as a basic health program to be submitted to the Centers for Medicare
23.4and Medicaid Services.
23.5(b) The commissioner of human services, in consultation with the commissioner of
23.6management and budget, shall work with the Centers for Medicare and Medicaid Services
23.7to establish a process for reconciliation and adjustment of federal payments that balances
23.8state and federal liability over time. The commissioner of human services shall request that
23.9the secretary of health and human services hold the state, and enrollees, harmless in the
23.10reconciliation process for the first three years, to allow the state to develop a statistically
23.11valid methodology for predicting enrollment trends and their net effect on federal payments.
23.12EFFECTIVE DATE.This section is effective the day following final enactment.

23.13    Sec. 35. Minnesota Statutes 2012, section 256L.02, is amended by adding a subdivision
23.14to read:
23.15    Subd. 7. Coordination with Minnesota Insurance Marketplace. MinnesotaCare
23.16shall be considered a public health care program for purposes of chapter 62V.
23.17EFFECTIVE DATE.This section is effective January 1, 2014.

23.18    Sec. 36. Minnesota Statutes 2012, section 256L.03, subdivision 1, is amended to read:
23.19    Subdivision 1. Covered health services. (a) "Covered health services" means the
23.20health services reimbursed under chapter 256B, with the exception of inpatient hospital
23.21services, special education services, private duty nursing services, adult dental care
23.22services other than services covered under section 256B.0625, subdivision 9, orthodontic
23.23services, nonemergency medical transportation services, personal care assistance and case
23.24management services, and nursing home or intermediate care facilities services, inpatient
23.25mental health services, and chemical dependency services.
23.26    (b) No public funds shall be used for coverage of abortion under MinnesotaCare
23.27except where the life of the female would be endangered or substantial and irreversible
23.28impairment of a major bodily function would result if the fetus were carried to term; or
23.29where the pregnancy is the result of rape or incest.
23.30    (c) Covered health services shall be expanded as provided in this section.
23.31EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
23.32approval, whichever is later. The commissioner of human services shall notify the revisor
23.33of statutes when federal approval is obtained.

24.1    Sec. 37. Minnesota Statutes 2012, section 256L.03, subdivision 1a, is amended to read:
24.2    Subd. 1a. Pregnant women and Children; MinnesotaCare health care reform
24.3waiver. Beginning January 1, 1999, Children and pregnant women are eligible for coverage
24.4of all services that are eligible for reimbursement under the medical assistance program
24.5according to chapter 256B, except that abortion services under MinnesotaCare shall be
24.6limited as provided under subdivision 1. Pregnant women and Children are exempt from
24.7the provisions of subdivision 5, regarding co-payments. Pregnant women and Children
24.8who are lawfully residing in the United States but who are not "qualified noncitizens" under
24.9title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,
24.10Public Law 104-193, Statutes at Large, volume 110, page 2105, are eligible for coverage
24.11of all services provided under the medical assistance program according to chapter 256B.
24.12EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
24.13approval, whichever is later. The commissioner of human services shall notify the revisor
24.14of statutes when federal approval is obtained.

24.15    Sec. 38. Minnesota Statutes 2012, section 256L.03, subdivision 3, is amended to read:
24.16    Subd. 3. Inpatient hospital services. (a) Covered health services shall include
24.17inpatient hospital services, including inpatient hospital mental health services and inpatient
24.18hospital and residential chemical dependency treatment, subject to those limitations
24.19necessary to coordinate the provision of these services with eligibility under the medical
24.20assistance spenddown. The inpatient hospital benefit for adult enrollees who qualify under
24.21section 256L.04, subdivision 7, or who qualify under section 256L.04, subdivisions 1 and
24.222
, with family gross income that exceeds 200 percent of the federal poverty guidelines or
24.23215 percent of the federal poverty guidelines on or after July 1, 2009, and who are not
24.24pregnant, is subject to an annual limit of $10,000.
24.25    (b) Admissions for inpatient hospital services paid for under section 256L.11,
24.26subdivision 3
, must be certified as medically necessary in accordance with Minnesota
24.27Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2):
24.28    (1) all admissions must be certified, except those authorized under rules established
24.29under section 254A.03, subdivision 3, or approved under Medicare; and
24.30    (2) payment under section 256L.11, subdivision 3, shall be reduced by five percent
24.31for admissions for which certification is requested more than 30 days after the day of
24.32admission. The hospital may not seek payment from the enrollee for the amount of the
24.33payment reduction under this clause.
25.1EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
25.2approval, whichever is later. The commissioner of human services shall notify the revisor
25.3of statutes when federal approval is obtained.

25.4    Sec. 39. Minnesota Statutes 2012, section 256L.03, is amended by adding a subdivision
25.5to read:
25.6    Subd. 4a. Loss ratio. Health coverage provided through the MinnesotaCare
25.7program must have a medical loss ratio of at least 85 percent, as defined using the loss
25.8ratio methodology described in section 1001 of the Affordable Care Act.
25.9EFFECTIVE DATE.This section is effective January 1, 2015.

25.10    Sec. 40. Minnesota Statutes 2012, section 256L.03, subdivision 5, is amended to read:
25.11    Subd. 5. Cost-sharing. (a) Except as otherwise provided in paragraphs (b) and (c)
25.12 this subdivision, the MinnesotaCare benefit plan shall include the following cost-sharing
25.13requirements for all enrollees:
25.14    (1) ten percent of the paid charges for inpatient hospital services for adult enrollees,
25.15subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;
25.16    (2) (1) $3 per prescription for adult enrollees;
25.17    (3) (2) $25 for eyeglasses for adult enrollees;
25.18    (4) (3) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means
25.19an episode of service which is required because of a recipient's symptoms, diagnosis, or
25.20established illness, and which is delivered in an ambulatory setting by a physician or
25.21physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
25.22audiologist, optician, or optometrist;
25.23    (5) (4) $6 for nonemergency visits to a hospital-based emergency room for services
25.24provided through December 31, 2010, and $3.50 effective January 1, 2011; and
25.25(6) (5) a family deductible equal to the maximum amount allowed under Code of
25.26Federal Regulations, title 42, part 447.54.
25.27    (b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of
25.28children under the age of 21.
25.29    (c) (b) Paragraph (a) does not apply to pregnant women and children under the
25.30age of 21.
25.31    (d) (c) Paragraph (a), clause (4) (3), does not apply to mental health services.
25.32    (e) Adult enrollees with family gross income that exceeds 200 percent of the federal
25.33poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009,
26.1and who are not pregnant shall be financially responsible for the coinsurance amount, if
26.2applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.
26.3    (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan,
26.4or changes from one prepaid health plan to another during a calendar year, any charges
26.5submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket
26.6expenses incurred by the enrollee for inpatient services, that were submitted or incurred
26.7prior to enrollment, or prior to the change in health plans, shall be disregarded.
26.8(g) (d) MinnesotaCare reimbursements to fee-for-service providers and payments to
26.9managed care plans or county-based purchasing plans shall not be increased as a result of
26.10the reduction of the co-payments in paragraph (a), clause (5) (4), effective January 1, 2011.
26.11(h) (e) The commissioner, through the contracting process under section 256L.12,
26.12may allow managed care plans and county-based purchasing plans to waive the family
26.13deductible under paragraph (a), clause (6) (5). The value of the family deductible shall not
26.14be included in the capitation payment to managed care plans and county-based purchasing
26.15plans. Managed care plans and county-based purchasing plans shall certify annually to the
26.16commissioner the dollar value of the family deductible.
26.17EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
26.18approval, whichever is later. The commissioner of human services shall notify the revisor
26.19of statutes when federal approval is obtained.

26.20    Sec. 41. Minnesota Statutes 2012, section 256L.03, subdivision 6, is amended to read:
26.21    Subd. 6. Lien. When the state agency provides, pays for, or becomes liable for
26.22covered health services, the agency shall have a lien for the cost of the covered health
26.23services upon any and all causes of action accruing to the enrollee, or to the enrollee's
26.24legal representatives, as a result of the occurrence that necessitated the payment for the
26.25covered health services. All liens under this section shall be subject to the provisions
26.26of section 256.015. For purposes of this subdivision, "state agency" includes prepaid
26.27health plans participating entities, under contract with the commissioner according to
26.28sections 256B.69, 256D.03, subdivision 4, paragraph (c), and 256L.12; and county-based
26.29purchasing entities under section 256B.692 section 256L.121.
26.30EFFECTIVE DATE.This section is effective January 1, 2015.

26.31    Sec. 42. Minnesota Statutes 2012, section 256L.04, subdivision 1, is amended to read:
26.32    Subdivision 1. Families with children. (a) Families with children with family
26.33income above 133 percent of the federal poverty guidelines and equal to or less than 275
27.1 200 percent of the federal poverty guidelines for the applicable family size shall be eligible
27.2for MinnesotaCare according to this section. All other provisions of sections 256L.01 to
27.3256L.18 , including the insurance-related barriers to enrollment under section 256L.07,
27.4 shall apply unless otherwise specified. Children under age 19 with family income at or
27.5below 200 percent of the federal poverty guidelines and who are ineligible for medical
27.6assistance by sole reason of the application of federal household composition rules for
27.7medical assistance are eligible for MinnesotaCare.
27.8    (b) Parents who enroll in the MinnesotaCare program must also enroll their children,
27.9if the children are eligible. Children may be enrolled separately without enrollment by
27.10parents. However, if one parent in the household enrolls, both parents must enroll, unless
27.11other insurance is available. If one child from a family is enrolled, all children must
27.12be enrolled, unless other insurance is available. If one spouse in a household enrolls,
27.13the other spouse in the household must also enroll, unless other insurance is available.
27.14Families cannot choose to enroll only certain uninsured members.
27.15    (c) Beginning October 1, 2003, the dependent sibling definition no longer applies
27.16to the MinnesotaCare program. These persons are no longer counted in the parental
27.17household and may apply as a separate household.
27.18    (d) Parents are not eligible for MinnesotaCare if their gross income exceeds $57,500.
27.19(e) Children deemed eligible for MinnesotaCare under section 256L.07, subdivision
27.208
, are exempt from the eligibility requirements of this subdivision.
27.21EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
27.22approval, whichever is later. The commissioner of human services shall notify the revisor
27.23of statutes when federal approval is obtained.

27.24    Sec. 43. Minnesota Statutes 2012, section 256L.04, is amended by adding a subdivision
27.25to read:
27.26    Subd. 1c. General requirements. To be eligible for coverage under MinnesotaCare,
27.27a person must meet the eligibility requirements of this section. A person eligible for
27.28MinnesotaCare shall not be considered a qualified individual under section 1312 of the
27.29Affordable Care Act, and is not eligible for enrollment in a qualified health plan offered
27.30through the Minnesota Insurance Marketplace under chapter 62V.
27.31EFFECTIVE DATE.This section is effective January 1, 2014.

27.32    Sec. 44. Minnesota Statutes 2012, section 256L.04, subdivision 7, is amended to read:
28.1    Subd. 7. Single adults and households with no children. (a) The definition of
28.2eligible persons includes all individuals and households families with no children who
28.3have gross family incomes that are above 133 percent and equal to or less than 200 percent
28.4of the federal poverty guidelines for the applicable family size.
28.5    (b) Effective July 1, 2009, the definition of eligible persons includes all individuals
28.6and households with no children who have gross family incomes that are equal to or less
28.7than 250 percent of the federal poverty guidelines.
28.8EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
28.9approval, whichever is later. The commissioner of human services shall notify the revisor
28.10of statutes when federal approval is obtained.

28.11    Sec. 45. Minnesota Statutes 2012, section 256L.04, subdivision 8, is amended to read:
28.12    Subd. 8. Applicants potentially eligible for medical assistance. (a) Individuals
28.13who receive supplemental security income or retirement, survivors, or disability benefits
28.14due to a disability, or other disability-based pension, who qualify under subdivision 7, but
28.15who are potentially eligible for medical assistance without a spenddown shall be allowed
28.16to enroll in MinnesotaCare for a period of 60 days, so long as the applicant meets all other
28.17conditions of eligibility. The commissioner shall identify and refer the applications of
28.18such individuals to their county social service agency. The county and the commissioner
28.19shall cooperate to ensure that the individuals obtain medical assistance coverage for any
28.20months for which they are eligible.
28.21(b) The enrollee must cooperate with the county social service agency in determining
28.22medical assistance eligibility within the 60-day enrollment period. Enrollees who do not
28.23cooperate with medical assistance within the 60-day enrollment period shall be disenrolled
28.24from the plan within one calendar month. Persons disenrolled for nonapplication for
28.25medical assistance may not reenroll until they have obtained a medical assistance
28.26eligibility determination. Persons disenrolled for noncooperation with medical assistance
28.27may not reenroll until they have cooperated with the county agency and have obtained a
28.28medical assistance eligibility determination.
28.29(c) Beginning January 1, 2000, Counties that choose to become MinnesotaCare
28.30enrollment sites shall consider MinnesotaCare applications to also be applications for
28.31medical assistance. Applicants who are potentially eligible for medical assistance, except
28.32for those described in paragraph (a), may choose to enroll in either MinnesotaCare or
28.33medical assistance.
29.1(d) The commissioner shall redetermine provider payments made under
29.2MinnesotaCare to the appropriate medical assistance payments for those enrollees who
29.3subsequently become eligible for medical assistance.
29.4EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
29.5approval, whichever is later. The commissioner of human services shall notify the revisor
29.6of statutes when federal approval is obtained.

29.7    Sec. 46. Minnesota Statutes 2012, section 256L.04, subdivision 10, is amended to read:
29.8    Subd. 10. Citizenship requirements. (a) Eligibility for MinnesotaCare is limited to
29.9citizens or nationals of the United States, qualified noncitizens, and other persons residing
29.10 and lawfully in the United States present noncitizens as defined in Code of Federal
29.11Regulations, title 8, section 103.12. Undocumented noncitizens and nonimmigrants
29.12 are ineligible for MinnesotaCare. For purposes of this subdivision, a nonimmigrant
29.13is an individual in one or more of the classes listed in United States Code, title 8,
29.14section 1101(a)(15), and an undocumented noncitizen is an individual who resides in the
29.15United States without the approval or acquiescence of the United States Citizenship and
29.16Immigration Services. Families with children who are citizens or nationals of the United
29.17States must cooperate in obtaining satisfactory documentary evidence of citizenship or
29.18nationality according to the requirements of the federal Deficit Reduction Act of 2005,
29.19Public Law 109-171.
29.20(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and
29.21individuals who are lawfully present and ineligible for medical assistance by reason of
29.22immigration status and who have incomes equal to or less than 200 percent of federal
29.23poverty guidelines.
29.24EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
29.25approval, whichever is later. The commissioner of human services shall notify the revisor
29.26of statutes when federal approval is obtained.

29.27    Sec. 47. Minnesota Statutes 2012, section 256L.04, subdivision 12, is amended to read:
29.28    Subd. 12. Persons in detention. Beginning January 1, 1999, An applicant or
29.29enrollee residing in a correctional or detention facility is not eligible for MinnesotaCare,
29.30unless the applicant or enrollee is awaiting disposition of charges. An enrollee residing in
29.31a correctional or detention facility is not eligible at renewal of eligibility under section
29.32256L.05, subdivision 3a.
29.33EFFECTIVE DATE.This section is effective January 1, 2014.

30.1    Sec. 48. Minnesota Statutes 2012, section 256L.04, is amended by adding a subdivision
30.2to read:
30.3    Subd. 14. Coordination with medical assistance. (a) Individuals eligible for
30.4medical assistance under chapter 256B are not eligible for MinnesotaCare under this
30.5section.
30.6(b) The commissioner shall coordinate eligibility and coverage to ensure that
30.7individuals transitioning between medical assistance and MinnesotaCare have seamless
30.8eligibility and access to health care services.
30.9EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
30.10approval, whichever is later. The commissioner of human services shall notify the revisor
30.11of statutes when federal approval is obtained.

30.12    Sec. 49. Minnesota Statutes 2012, section 256L.05, subdivision 1, is amended to read:
30.13    Subdivision 1. Application assistance and information availability. (a) Applicants
30.14may submit applications online, in person, by mail, or by phone in accordance with the
30.15Affordable Care Act, and by any other means by which medical assistance applications
30.16may be submitted. Applicants may submit applications through the Minnesota Insurance
30.17Marketplace or through the MinnesotaCare program. Applications and application
30.18assistance must be made available at provider offices, local human services agencies,
30.19school districts, public and private elementary schools in which 25 percent or more of
30.20the students receive free or reduced price lunches, community health offices, Women,
30.21Infants and Children (WIC) program sites, Head Start program sites, public housing
30.22councils, crisis nurseries, child care centers, early childhood education and preschool
30.23program sites, legal aid offices, and libraries, and at any other locations at which medical
30.24assistance applications must be made available. These sites may accept applications and
30.25forward the forms to the commissioner or local county human services agencies that
30.26choose to participate as an enrollment site. Otherwise, applicants may apply directly to the
30.27commissioner or to participating local county human services agencies.
30.28(b) Application assistance must be available for applicants choosing to file an online
30.29application through the Minnesota Insurance Marketplace.
30.30EFFECTIVE DATE.This section is effective January 1, 2014.

30.31    Sec. 50. Minnesota Statutes 2012, section 256L.05, subdivision 2, is amended to read:
30.32    Subd. 2. Commissioner's duties. The commissioner or county agency shall use
30.33electronic verification through the Minnesota Insurance Marketplace as the primary
31.1method of income verification. If there is a discrepancy between reported income
31.2and electronically verified income, an individual may be required to submit additional
31.3verification to the extent permitted under the Affordable Care Act. In addition, the
31.4commissioner shall perform random audits to verify reported income and eligibility. The
31.5commissioner may execute data sharing arrangements with the Department of Revenue
31.6and any other governmental agency in order to perform income verification related to
31.7eligibility and premium payment under the MinnesotaCare program.
31.8EFFECTIVE DATE.This section is effective January 1, 2014.

31.9    Sec. 51. Minnesota Statutes 2012, section 256L.05, subdivision 3, is amended to read:
31.10    Subd. 3. Effective date of coverage. (a) The effective date of coverage is the
31.11first day of the month following the month in which eligibility is approved and the first
31.12premium payment has been received. As provided in section 256B.057, coverage for
31.13newborns is automatic from the date of birth and must be coordinated with other health
31.14coverage. The effective date of coverage for eligible newly adoptive children added to a
31.15family receiving covered health services is the month of placement. The effective date
31.16of coverage for other new members added to the family is the first day of the month
31.17following the month in which the change is reported. All eligibility criteria must be met
31.18by the family at the time the new family member is added. The income of the new family
31.19member is included with the family's modified adjusted gross income and the adjusted
31.20premium begins in the month the new family member is added.
31.21(b) The initial premium must be received by the last working day of the month for
31.22coverage to begin the first day of the following month.
31.23(c) Benefits are not available until the day following discharge if an enrollee is
31.24hospitalized on the first day of coverage.
31.25(d) (c) Notwithstanding any other law to the contrary, benefits under sections
31.26256L.01 to 256L.18 are secondary to a plan of insurance or benefit program under which
31.27an eligible person may have coverage and the commissioner shall use cost avoidance
31.28techniques to ensure coordination of any other health coverage for eligible persons. The
31.29commissioner shall identify eligible persons who may have coverage or benefits under
31.30other plans of insurance or who become eligible for medical assistance.
31.31(e) (d) The effective date of coverage for individuals or families who are exempt
31.32from paying premiums under section 256L.15, subdivision 1, paragraph (d), is the first
31.33day of the month following the month in which verification of American Indian status
31.34is received or eligibility is approved, whichever is later.
32.1(f) The effective date of coverage for children eligible under section 256L.07,
32.2subdivision 8, is the first day of the month following the date of termination from foster
32.3care or release from a juvenile residential correctional facility.
32.4EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
32.5approval, whichever is later. The commissioner of human services shall notify the revisor
32.6of statutes when federal approval is obtained.

32.7    Sec. 52. Minnesota Statutes 2012, section 256L.05, subdivision 3c, is amended to read:
32.8    Subd. 3c. Retroactive coverage. Notwithstanding subdivision 3, the effective
32.9date of coverage shall be the first day of the month following termination from medical
32.10assistance for families and individuals who are eligible for MinnesotaCare and who
32.11submitted a written request for retroactive MinnesotaCare coverage with a completed
32.12application within 30 days of the mailing of notification of termination from medical
32.13assistance. The applicant must provide all required verifications within 30 days of the
32.14written request for verification. For retroactive coverage, premiums must be paid in full
32.15for any retroactive month, current month, and next month within 30 days of the premium
32.16billing. General assistance medical care recipients may qualify for retroactive coverage
32.17under this subdivision at six-month renewal. This subdivision does not apply, and shall not
32.18be implemented by the commissioner, once eligibility determination for MinnesotaCare is
32.19conducted by the Minnesota Insurance Marketplace eligibility determination system.
32.20EFFECTIVE DATE.This section is effective January 1, 2014.

32.21    Sec. 53. Minnesota Statutes 2012, section 256L.06, subdivision 3, is amended to read:
32.22    Subd. 3. Commissioner's duties and payment. (a) Premiums are dedicated to the
32.23commissioner for MinnesotaCare.
32.24    (b) The commissioner shall develop and implement procedures to: (1) require
32.25enrollees to report changes in income; (2) adjust sliding scale premium payments, based
32.26upon both increases and decreases in enrollee income, at the time the change in income
32.27is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required
32.28premiums. Failure to pay includes payment with a dishonored check, a returned automatic
32.29bank withdrawal, or a refused credit card or debit card payment. The commissioner may
32.30demand a guaranteed form of payment, including a cashier's check or a money order, as
32.31the only means to replace a dishonored, returned, or refused payment.
32.32    (c) Premiums are calculated on a calendar month basis and may be paid on a
32.33monthly, quarterly, or semiannual basis, with the first payment due upon notice from the
33.1commissioner of the premium amount required. The commissioner shall inform applicants
33.2and enrollees of these premium payment options. Premium payment is required before
33.3enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments
33.4received before noon are credited the same day. Premium payments received after noon
33.5are credited on the next working day.
33.6    (d) Nonpayment of the premium will result in disenrollment from the plan effective
33.7for the calendar month for which the premium was due. Persons disenrolled for
33.8nonpayment or who voluntarily terminate coverage from the program may not reenroll
33.9until four calendar months have elapsed. Persons disenrolled for nonpayment who pay
33.10all past due premiums as well as current premiums due, including premiums due for the
33.11period of disenrollment, within 20 days of disenrollment, shall be reenrolled retroactively
33.12to the first day of disenrollment. Persons disenrolled for nonpayment or who voluntarily
33.13terminate coverage from the program may not reenroll for four calendar months unless
33.14the person demonstrates good cause for nonpayment. Good cause does not exist if a
33.15person chooses to pay other family expenses instead of the premium. The commissioner
33.16shall define good cause in rule.
33.17EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
33.18approval, whichever is later. The commissioner of human services shall notify the revisor
33.19of statutes when federal approval is obtained.

33.20    Sec. 54. Minnesota Statutes 2012, section 256L.07, subdivision 1, is amended to read:
33.21    Subdivision 1. General requirements. (a) Children enrolled in the original
33.22children's health plan as of September 30, 1992, children who enrolled in the
33.23MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549,
33.24article 4, section 17, and children who have family gross incomes that are equal to or
33.25less than 200 percent of the federal poverty guidelines are eligible without meeting the
33.26requirements of subdivision 2 and the four-month requirement in subdivision 3, as long as
33.27they maintain continuous coverage in the MinnesotaCare program or medical assistance.
33.28    Parents Individuals enrolled in MinnesotaCare under section 256L.04, subdivision 1,
33.29and individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, whose
33.30income increases above 275 200 percent of the federal poverty guidelines, are no longer
33.31eligible for the program and shall be disenrolled by the commissioner. Beginning January
33.321, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision
33.337
, whose income increases above 200 percent of the federal poverty guidelines or 250
33.34percent of the federal poverty guidelines on or after July 1, 2009, are no longer eligible for
33.35the program and shall be disenrolled by the commissioner. For persons disenrolled under
34.1this subdivision, MinnesotaCare coverage terminates the last day of the calendar month
34.2following the month in which the commissioner determines that the income of a family or
34.3individual exceeds program income limits.
34.4    (b) Children may remain enrolled in MinnesotaCare if their gross family income as
34.5defined in section 256L.01, subdivision 4, is greater than 275 percent of federal poverty
34.6guidelines. The premium for children remaining eligible under this paragraph shall be the
34.7maximum premium determined under section 256L.15, subdivision 2, paragraph (b).
34.8    (c) Notwithstanding paragraph (a), parents are not eligible for MinnesotaCare if
34.9gross household income exceeds $57,500 for the 12-month period of eligibility.
34.10EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
34.11approval, whichever is later. The commissioner of human services shall notify the revisor
34.12of statutes when federal approval is obtained.

34.13    Sec. 55. Minnesota Statutes 2012, section 256L.07, subdivision 2, is amended to read:
34.14    Subd. 2. Must not have access to employer-subsidized minimum essential
34.15 coverage. (a) To be eligible, a family or individual must not have access to subsidized
34.16health coverage through an employer and must not have had access to employer-subsidized
34.17coverage through a current employer for 18 months prior to application or reapplication.
34.18A family or individual whose employer-subsidized coverage is lost due to an employer
34.19terminating health care coverage as an employee benefit during the previous 18 months is
34.20not eligible that is affordable and provides minimum value as defined in Code of Federal
34.21Regulations, title 26, section 1.36B-2.
34.22(b) This subdivision does not apply to a family or individual who was enrolled
34.23in MinnesotaCare within six months or less of reapplication and who no longer has
34.24employer-subsidized coverage due to the employer terminating health care coverage as an
34.25employee benefit. This subdivision does not apply to children with family gross incomes
34.26that are equal to or less than 200 percent of federal poverty guidelines.
34.27(c) For purposes of this requirement, subsidized health coverage means health
34.28coverage for which the employer pays at least 50 percent of the cost of coverage for
34.29the employee or dependent, or a higher percentage as specified by the commissioner.
34.30Children are eligible for employer-subsidized coverage through either parent, including
34.31the noncustodial parent. The commissioner must treat employer contributions to Internal
34.32Revenue Code Section 125 plans and any other employer benefits intended to pay
34.33health care costs as qualified employer subsidies toward the cost of health coverage for
34.34employees for purposes of this subdivision.
35.1EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
35.2approval, whichever is later. The commissioner of human services shall notify the revisor
35.3of statutes when federal approval is obtained.

35.4    Sec. 56. Minnesota Statutes 2012, section 256L.07, subdivision 3, is amended to read:
35.5    Subd. 3. Other health coverage. (a) Families and individuals enrolled in the
35.6MinnesotaCare program must have no To be eligible, a family or individual must not have
35.7minimum essential health coverage while enrolled, as defined by section 5000A of the
35.8Internal Revenue Code. Children with family gross incomes equal to or greater than 200
35.9percent of federal poverty guidelines, and adults, must have had no health coverage for
35.10at least four months prior to application and renewal. Children enrolled in the original
35.11children's health plan and children in families with income equal to or less than 200
35.12percent of the federal poverty guidelines, who have other health insurance, are eligible if
35.13the coverage:
35.14(1) lacks two or more of the following:
35.15(i) basic hospital insurance;
35.16(ii) medical-surgical insurance;
35.17(iii) prescription drug coverage;
35.18(iv) dental coverage; or
35.19(v) vision coverage;
35.20(2) requires a deductible of $100 or more per person per year; or
35.21(3) lacks coverage because the child has exceeded the maximum coverage for a
35.22particular diagnosis or the policy excludes a particular diagnosis.
35.23The commissioner may change this eligibility criterion for sliding scale premiums
35.24in order to remain within the limits of available appropriations. The requirement of no
35.25health coverage does not apply to newborns.
35.26(b) Coverage purchased as provided under section 256L.031, subdivision 2, medical
35.27assistance, and the Civilian Health and Medical Program of the Uniformed Service,
35.28CHAMPUS, or other coverage provided under United States Code, title 10, subtitle A,
35.29part II, chapter 55, are not considered insurance or health coverage for purposes of the
35.30four-month requirement described in this subdivision.
35.31(c) (b) For purposes of this subdivision, an applicant or enrollee who is entitled to
35.32Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social
35.33Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered
35.34to have minimum essential health coverage. An applicant or enrollee who is entitled to
36.1premium-free Medicare Part A may not refuse to apply for or enroll in Medicare coverage
36.2to establish eligibility for MinnesotaCare.
36.3(d) Applicants who were recipients of medical assistance within one month of
36.4application must meet the provisions of this subdivision and subdivision 2.
36.5(e) Cost-effective health insurance that was paid for by medical assistance is not
36.6considered health coverage for purposes of the four-month requirement under this
36.7section, except if the insurance continued after medical assistance no longer considered it
36.8cost-effective or after medical assistance closed.
36.9EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
36.10approval, whichever is later. The commissioner of human services shall notify the revisor
36.11of statutes when federal approval is obtained.

36.12    Sec. 57. Minnesota Statutes 2012, section 256L.09, subdivision 2, is amended to read:
36.13    Subd. 2. Residency requirement. To be eligible for health coverage under the
36.14MinnesotaCare program, pregnant women, individuals, and families with children must
36.15meet the residency requirements as provided by Code of Federal Regulations, title 42,
36.16section 435.403, except that the provisions of section 256B.056, subdivision 1, shall apply
36.17upon receipt of federal approval.
36.18EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
36.19approval, whichever is later. The commissioner of human services shall notify the revisor
36.20of statutes when federal approval is obtained.

36.21    Sec. 58. Minnesota Statutes 2012, section 256L.11, subdivision 1, is amended to read:
36.22    Subdivision 1. Medical assistance rate to be used. (a) Payment to providers
36.23under sections 256L.01 to 256L.11 this chapter shall be at the same rates and conditions
36.24established for medical assistance, except as provided in subdivisions 2 to 6 this section.
36.25(b) Effective for services provided on or after July 1, 2009, total payments for basic
36.26care services shall be reduced by three percent, in accordance with section 256B.766.
36.27Payments made to managed care and county-based purchasing plans shall be reduced for
36.28services provided on or after October 1, 2009, to reflect this reduction.
36.29(c) Effective for services provided on or after July 1, 2009, payment rates for
36.30physician and professional services shall be reduced as described under section 256B.76,
36.31subdivision 1, paragraph (c). Payments made to managed care and county-based
36.32purchasing plans shall be reduced for services provided on or after October 1, 2009,
36.33to reflect this reduction.
37.1EFFECTIVE DATE.This section is effective January 1, 2014.

37.2    Sec. 59. Minnesota Statutes 2012, section 256L.11, subdivision 3, is amended to read:
37.3    Subd. 3. Inpatient hospital services. Inpatient hospital services provided under
37.4section 256L.03, subdivision 3, shall be paid for as provided in subdivisions 4 to 6 at the
37.5medical assistance rate.
37.6EFFECTIVE DATE.This section is effective January 1, 2014.

37.7    Sec. 60. Minnesota Statutes 2012, section 256L.12, subdivision 1, is amended to read:
37.8    Subdivision 1. Selection of vendors. In order to contain costs, the commissioner of
37.9human services shall select vendors of medical care who can provide the most economical
37.10care consistent with high medical standards and shall, where possible, contract with
37.11organizations on a prepaid capitation basis to provide these services. The commissioner
37.12shall consider proposals by counties and vendors for managed care plans and managed
37.13care-like entities as defined by the final regulation implementing section 1331 of the
37.14Affordable Care Act regarding basic health plans, which may include: prepaid capitation
37.15programs, competitive bidding programs, or other vendor payment mechanisms designed
37.16to provide services in an economical manner or to control utilization, with safeguards to
37.17ensure that necessary services are provided.

37.18    Sec. 61. [256L.121] SERVICE DELIVERY.
37.19    Subdivision 1. Competitive process. The commissioner of human services shall
37.20establish a competitive process for entering into contracts with participating entities for
37.21the offering of standard health plans through MinnesotaCare. Coverage through standard
37.22health plans must be available to enrollees beginning January 1, 2015. Each standard
37.23health plan must cover the health services listed in and meet the requirements of section
37.24256L.03. The competitive process must meet the requirements of section 1331 of the
37.25Affordable Care Act and be designed to ensure enrollee access to high-quality health care
37.26coverage options. The commissioner, to the extent feasible, shall seek to ensure that
37.27enrollees have a choice of coverage from more than one participating entity within a
37.28geographic area. In counties that were part of a county-based purchasing plan on January
37.291, 2013, the commissioner shall use the medical assistance competitive procurement
37.30process under section 256B.69, subdivisions 1 to 32, under which selection of entities is
37.31based on criteria related to provider network access, coordination of health care with other
37.32local services, alignment with local public health goals, and other factors.
38.1    Subd. 2. Other requirements for participating entities. The commissioner shall
38.2require participating entities, as a condition of contract, to document to the commissioner:
38.3(1) the provision of culturally and linguistically appropriate services, including
38.4marketing materials, to MinnesotaCare enrollees; and
38.5(2) the inclusion in provider networks of providers designated as essential
38.6community providers under section 62Q.19.
38.7    Subd. 3. Coordination with state-administered health programs. The
38.8commissioner shall coordinate the administration of the MinnesotaCare program with
38.9medical assistance to maximize efficiency and improve the continuity of care. This
38.10includes, but is not limited to:
38.11(1) establishing geographic areas for MinnesotaCare that are consistent with the
38.12geographic areas of the medical assistance program, within which participating entities
38.13may offer health plans;
38.14(2) requiring, as a condition of participation in MinnesotaCare, participating entities
38.15to also participate in the medical assistance program;
38.16(3) complying with sections 256B.69, subdivision 3a; 256B.692, subdivision 1; and
38.17256B.694, when contracting with MinnesotaCare participating entities;
38.18(4) providing MinnesotaCare enrollees, to the extent possible, with the option to
38.19remain in the same health plan and provider network, if they later become eligible for
38.20medical assistance or coverage through the Minnesota health benefit exchange and if, in
38.21the case of becoming eligible for medical assistance, the enrollee's MinnesotaCare health
38.22plan is also a medical assistance health plan in the enrollee's county of residence; and
38.23(5) establishing requirements and criteria for selection that ensure that covered
38.24health care services will be coordinated with local public health services, social services,
38.25long-term care services, mental health services, and other local services affecting
38.26enrollees' health, access, and quality of care.
38.27EFFECTIVE DATE.This section is effective the day following final enactment.

38.28    Sec. 62. Minnesota Statutes 2012, section 256L.15, subdivision 1, is amended to read:
38.29    Subdivision 1. Premium determination. (a) Families with children and individuals
38.30shall pay a premium determined according to subdivision 2.
38.31    (b) Pregnant women and children under age two are exempt from the provisions
38.32of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment
38.33for failure to pay premiums. For pregnant women, this exemption continues until the
38.34first day of the month following the 60th day postpartum. Women who remain enrolled
38.35during pregnancy or the postpartum period, despite nonpayment of premiums, shall be
39.1disenrolled on the first of the month following the 60th day postpartum for the penalty
39.2period that otherwise applies under section 256L.06, unless they begin paying premiums.
39.3    (c) (b) Members of the military and their families who meet the eligibility criteria
39.4for MinnesotaCare upon eligibility approval made within 24 months following the end
39.5of the member's tour of active duty shall have their premiums paid by the commissioner.
39.6The effective date of coverage for an individual or family who meets the criteria of this
39.7paragraph shall be the first day of the month following the month in which eligibility is
39.8approved. This exemption applies for 12 months.
39.9(d) (c) Beginning July 1, 2009, American Indians enrolled in MinnesotaCare and
39.10their families shall have their premiums waived by the commissioner in accordance with
39.11section 5006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5.
39.12An individual must document status as an American Indian, as defined under Code of
39.13Federal Regulations, title 42, section 447.50, to qualify for the waiver of premiums.
39.14EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
39.15approval, whichever is later. The commissioner of human services shall notify the revisor
39.16of statutes when federal approval is obtained.

39.17    Sec. 63. Minnesota Statutes 2012, section 256L.15, subdivision 2, is amended to read:
39.18    Subd. 2. Sliding fee scale; monthly gross individual or family income. (a) The
39.19commissioner shall establish a sliding fee scale to determine the percentage of monthly
39.20gross individual or family income that households at different income levels must pay to
39.21obtain coverage through the MinnesotaCare program. The sliding fee scale must be based
39.22on the enrollee's monthly gross individual or family income. The sliding fee scale must
39.23contain separate tables based on enrollment of one, two, or three or more persons. Until
39.24June 30, 2009, the sliding fee scale begins with a premium of 1.5 percent of monthly gross
39.25individual or family income for individuals or families with incomes below the limits for
39.26the medical assistance program for families and children in effect on January 1, 1999, and
39.27proceeds through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and
39.288.8 percent. These percentages are matched to evenly spaced income steps ranging from
39.29the medical assistance income limit for families and children in effect on January 1, 1999,
39.30to 275 percent of the federal poverty guidelines for the applicable family size, up to a
39.31family size of five. The sliding fee scale for a family of five must be used for families of
39.32more than five. The sliding fee scale and percentages are not subject to the provisions of
39.33chapter 14. If a family or individual reports increased income after enrollment, premiums
39.34shall be adjusted at the time the change in income is reported.
40.1    (b) Children in families whose gross income is above 275 percent of the federal
40.2poverty guidelines shall pay the maximum premium. The maximum premium is defined
40.3as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare
40.4cases paid the maximum premium, the total revenue would equal the total cost of
40.5MinnesotaCare medical coverage and administration. In this calculation, administrative
40.6costs shall be assumed to equal ten percent of the total. The costs of medical coverage
40.7for pregnant women and children under age two and the enrollees in these groups shall
40.8be excluded from the total. The maximum premium for two enrollees shall be twice the
40.9maximum premium for one, and the maximum premium for three or more enrollees shall
40.10be three times the maximum premium for one.
40.11    (c) Beginning July 1, 2009 January 1, 2014, MinnesotaCare enrollees shall pay
40.12premiums according to the premium scale specified in paragraph (d) (c) with the exception
40.13that children 20 years of age and younger in families with income at or below 200 percent
40.14of the federal poverty guidelines shall pay no premiums. For purposes of paragraph (d),
40.15"minimum" means a monthly premium of $4.
40.16    (d) (c) The following premium scale is established for individuals and families
40.17with gross family incomes of 275 percent of the federal poverty guidelines or less each
40.18individual in the household who is 21 years of age or older and enrolled in MinnesotaCare:
40.19
Federal Poverty Guideline Range
Percent of Average Gross Monthly Income
40.20
0-45%
minimum
40.21
40.22
46-54%
$4 or 1.1% of family income, whichever is
greater
40.23
55-81%
1.6%
40.24
82-109%
2.2%
40.25
110-136%
2.9%
40.26
137-164%
3.6%
40.27
165-191%
4.6%
40.28
192-219%
5.6%
40.29
220-248%
6.5%
40.30
249-275%
7.2%
40.31
40.32
Federal Poverty Guideline
Greater than or Equal to
Less than
Individual Premium
Amount
40.33
0%
55%
$4
40.34
55%
80%
$6
40.35
80%
90%
$8
40.36
90%
100%
$10
40.37
100%
110%
$12
40.38
110%
120%
$15
40.39
120%
130%
$18
40.40
130%
140%
$21
41.1
140%
150%
$25
41.2
150%
160%
$29
41.3
160%
170%
$33
41.4
170%
180%
$38
41.5
180%
190%
$43
41.6
190%
$50
41.7EFFECTIVE DATE.This section is effective January 1, 2014, or upon federal
41.8approval, whichever is later. The commissioner of human services shall notify the revisor
41.9of statutes when federal approval is obtained.

41.10    Sec. 64. DETERMINATION OF FUNDING ADEQUACY FOR
41.11MINNESOTACARE.
41.12The commissioners of revenue and management and budget, in consultation with
41.13the commissioner of human services, shall conduct an assessment of health care taxes,
41.14including the gross premiums tax, the provider tax, and Medicaid surcharges, and their
41.15relationship to the long-term solvency of the health care access fund, as part of the state
41.16revenue and expenditure forecast in November 2013. The commissioners shall determine
41.17the amount of state funding that will be required after December 31, 2019, in addition
41.18to the federal payments made available under section 1331 of the Affordable Care Act,
41.19for the MinnesotaCare program. The commissioners shall evaluate the stability and
41.20likelihood of long-term federal funding for the MinnesotaCare program under section
41.211331. The commissioners shall report the results of this assessment to the chairs and
41.22ranking minority members of the legislative committees with jurisdiction over human
41.23services, finances, and taxes by January 15, 2014, along with recommendations for
41.24changes to state revenue for the health care access fund, if state funding continues to
41.25be required beyond December 31, 2019.

41.26    Sec. 65. STATE-BASED RISK ADJUSTMENT SYSTEM ASSESSMENT.
41.27(a) Notwithstanding Minnesota Rules, chapter 4653, the commissioner of health,
41.28as part of the commissioner's responsibilities under Minnesota Statutes, section 62U.04,
41.29subdivision 4, paragraph (b), shall collect from health carriers in the individual and
41.30small group health insurance market, beginning on January 1, 2014, for service dates
41.31beginning October 1, 2013, through December 31, 2014, all data required for conducting
41.32risk adjustment with standard risk adjusters such as the Adjusted Clinical Groups or the
41.33Hierarchical Condition Category System, including, but not limited to:
41.34(1) an indicator identifying the health plan product under which an enrollee is covered;
42.1(2) an indicator identifying whether an enrollee's policy is an individual or small
42.2group market policy;
42.3(3) an indicator identifying, if applicable, the metal level of an enrollee's health plan
42.4product, and whether the policy is a catastrophic policy; and
42.5(4) additional identified demographic data necessary to link individuals' data across
42.6health carriers and insurance affordability programs with 95 percent accuracy. The
42.7commissioner shall not collect more than the last four digits of an individual's Social
42.8Security number.
42.9(b) The commissioner of health shall assess the extent to which data collected under
42.10paragraph (a) and under Minnesota Statutes, section 62U.04, subdivision 4, paragraph (a),
42.11are sufficient for developing and operating a state alternative risk adjustment methodology
42.12consistent with applicable federal rules by evaluating:
42.13(1) if the data submitted are adequately complete, accurate, and timely;
42.14(2) if the data should be further enriched by nontraditional risk adjusters that help
42.15in better explaining variation in health care costs of a given population and account for
42.16risk selection across metal levels;
42.17(3) whether additional data or identifiers have the potential to strengthen a
42.18Minnesota-based risk adjustment approach; and
42.19(4) what, if any, changes to the technical infrastructure will be necessary to
42.20effectively perform state-based risk adjustment.
42.21(c) For purposes of paragraph (b), the commissioner of health shall have the
42.22authority to use identified data to validate and audit a statistically valid sample of data for
42.23each health carrier in the individual and small group health insurance market.
42.24(d) If the assessment conducted in paragraph (b) finds that the data collected
42.25under Minnesota Statutes, section 62U.04, subdivision 4, are sufficient for developing
42.26and operating a state alternative risk adjustment methodology consistent with applicable
42.27federal rules, the commissioners of health and human services, in consultation with the
42.28commissioner of commerce and the Board of MNsure, shall study whether Minnesota-based
42.29risk adjustment of the individual and small group health insurance market, using either the
42.30federal risk adjustment model or a state-based alternative, can be more cost-effective and
42.31perform better than risk adjustment conducted by federal agencies. The study shall assess
42.32the policies, infrastructure, and resources necessary to satisfy the requirements of Code of
42.33Federal Regulations, title 45, section 153, subpart D. The study shall also evaluate the
42.34extent to which Minnesota-based risk adjustment could meet requirements established in
42.35Code of Federal Regulations, title 45, section 153.330, including:
42.36(1) explaining the variation in health care costs of a given population;
43.1(2) linking risk factors to daily clinical practices and that which is clinically
43.2meaningful to providers;
43.3(3) encouraging favorable behavior among health care market participants and
43.4discouraging unfavorable behavior;
43.5(4) whether risk adjustment factors are relatively easy for stakeholders to understand
43.6and participate in;
43.7(5) providing stable risk scores over time and across health plan products;
43.8(6) minimizing administrative costs;
43.9(7) accounting for risk selection across metal levels;
43.10(8) aligning each of the elements of the methodology; and
43.11(9) can be conducted at per-member cost equal to or lower than the projected cost of
43.12the federal risk adjustment model.
43.13(e) In conducting the study described in paragraph (d), the commissioner of health
43.14shall contract with entities that do not have an economic interest in the outcome of
43.15Minnesota-based risk adjustment, but have demonstrated expertise in actuarial science
43.16or health economics and demonstrated experience with designing and implementing risk
43.17adjustment models. The commissioner of human services shall evaluate opportunities
43.18to maximize federal funding under section 1331 of the Affordable Care Act. The
43.19commissioner of human services shall make recommendations on risk adjustment
43.20strategies to maximize federal funding to the state of Minnesota.
43.21(f) The commissioner of health shall submit an interim report to the legislature by
43.22March 15, 2014, with preliminary findings from the assessment conducted in paragraph
43.23(b). The interim report shall include legislative recommendations for any necessary
43.24changes to Minnesota Statutes, section 62Q.03. The commissioners of health and human
43.25services shall submit a final report to the legislature by October 1, 2015. The final report
43.26must include findings from the overall assessment conducted under paragraph (e), and a
43.27recommendation on whether to conduct state-based risk adjustment.
43.28(g) The Board of MNsure shall apply for federal funding under section 1311 or
43.291321 of the Affordable Care Act, to fund the work under paragraphs (a), (b), (d), and (e).
43.30Federal funding awarded to MNsure for this purpose is approved and appropriated for
43.31this purpose. The commissioners of health and human services may only proceed with
43.32activities under paragraphs (a) to (e) if funding has been made available for this purpose.
43.33(h) For purposes of this section, the Board of MNsure means the board established
43.34under Minnesota Statutes, section 62V.03, and the Affordable Care Act has the meaning
43.35given in Minnesota Statutes, section 256B.02, subdivision 17.

44.1    Sec. 66. REQUEST FOR FEDERAL AUTHORITY.
44.2The commissioner of human services shall seek authority from the federal Centers
44.3for Medicare and Medicaid Services to allow persons under age 65, participating in
44.4a home and community-based services waiver under section 1915(c) of the Social
44.5Security Act, to continue to disregard spousal income and assets, in place of the spousal
44.6impoverishment provisions under the federal Patient Protection and Affordable Care Act,
44.7Public Law 111-148, section 2404, as amended by the federal Health Care and Education
44.8Reconciliation Act of 2010, Public Law 111-152, and any amendments to, or regulations
44.9and guidance issued under, those acts.

44.10    Sec. 67. REVISOR'S INSTRUCTION.
44.11The revisor of statutes shall: (1) remove cross-references to the sections repealed
44.12in this article wherever they appear in Minnesota Statutes and Minnesota Rules; (2)
44.13change the term "Minnesota Insurance Marketplace" to "MNsure" wherever it appears
44.14in this article and in Minnesota Statutes; and (3) make changes necessary to correct the
44.15punctuation, grammar, or structure of the remaining text and preserve its meaning.

44.16    Sec. 68. REPEALER.
44.17Minnesota Statutes 2012, sections 256L.01, subdivision 4a; 256L.031; 256L.04,
44.18subdivisions 1b, 9, and 10a; 256L.05, subdivision 3b; 256L.07, subdivisions 1, 5, 8, and 9;
44.19256L.11, subdivisions 5 and 6; and 256L.17, subdivisions 1, 2, 3, 4, and 5, are repealed
44.20effective January 1, 2014.
44.21(b) Minnesota Statutes 2012, sections 256B.055, subdivisions 3, 5, and 10b;
44.22256B.056, subdivision 5b; and 256B.057, subdivisions 1c and 2, are repealed effective
44.23January 1, 2014.

44.24ARTICLE 2
44.25CONTINGENT REFORM 2020; REDESIGNING HOME AND
44.26COMMUNITY-BASED SERVICES

44.27    Section 1. Minnesota Statutes 2012, section 144.0724, subdivision 4, is amended to read:
44.28    Subd. 4. Resident assessment schedule. (a) A facility must conduct and
44.29electronically submit to the commissioner of health case mix assessments that conform
44.30with the assessment schedule defined by Code of Federal Regulations, title 42, section
44.31483.20, and published by the United States Department of Health and Human Services,
44.32Centers for Medicare and Medicaid Services, in the Long Term Care Assessment
44.33Instrument User's Manual, version 3.0, and subsequent updates when issued by the
44.34Centers for Medicare and Medicaid Services. The commissioner of health may substitute
45.1successor manuals or question and answer documents published by the United States
45.2Department of Health and Human Services, Centers for Medicare and Medicaid Services,
45.3to replace or supplement the current version of the manual or document.
45.4(b) The assessments used to determine a case mix classification for reimbursement
45.5include the following:
45.6(1) a new admission assessment must be completed by day 14 following admission;
45.7(2) an annual assessment which must have an assessment reference date (ARD)
45.8within 366 days of the ARD of the last comprehensive assessment;
45.9(3) a significant change assessment must be completed within 14 days of the
45.10identification of a significant change; and
45.11(4) all quarterly assessments must have an assessment reference date (ARD) within
45.1292 days of the ARD of the previous assessment.
45.13(c) In addition to the assessments listed in paragraph (b), the assessments used to
45.14determine nursing facility level of care include the following:
45.15(1) preadmission screening completed under section 256B.0911, subdivision 4a, by a
45.16county, tribe, or managed care organization under contract with the Department of Human
45.17Services 256.975, subdivision 7a, by the Senior LinkAge Line or other organization under
45.18contract with the Minnesota Board on Aging; and
45.19(2) a nursing facility level of care determination as provided for under section
45.20256B.0911, subdivision 4e, as part of a face-to-face long-term care consultation assessment
45.21completed under section 256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or
45.22managed care organization under contract with the Department of Human Services.

45.23    Sec. 2. Minnesota Statutes 2012, section 144A.351, is amended to read:
45.24144A.351 BALANCING LONG-TERM CARE SERVICES AND SUPPORTS:
45.25REPORT AND STUDY REQUIRED.
45.26    Subdivision 1. Report requirements. The commissioners of health and human
45.27services, with the cooperation of counties and in consultation with stakeholders, including
45.28persons who need or are using long-term care services and supports, lead agencies,
45.29regional entities, senior, disability, and mental health organization representatives, service
45.30providers, and community members shall prepare a report to the legislature by August 15,
45.312013, and biennially thereafter, regarding the status of the full range of long-term care
45.32services and supports for the elderly and children and adults with disabilities and mental
45.33illnesses in Minnesota. The report shall address:
45.34    (1) demographics and need for long-term care services and supports in Minnesota;
46.1    (2) summary of county and regional reports on long-term care gaps, surpluses,
46.2imbalances, and corrective action plans;
46.3    (3) status of long-term care services and related mental health services, housing
46.4options, and supports by county and region including:
46.5    (i) changes in availability of the range of long-term care services and housing options;
46.6    (ii) access problems, including access to the least restrictive and most integrated
46.7services and settings, regarding long-term care services; and
46.8    (iii) comparative measures of long-term care services availability, including serving
46.9people in their home areas near family, and changes over time; and
46.10    (4) recommendations regarding goals for the future of long-term care services and
46.11supports, policy and fiscal changes, and resource development and transition needs.
46.12    Subd. 2. Critical access study. The commissioner of human services shall conduct
46.13a onetime study to assess local capacity and availability of home and community-based
46.14services for older adults, people with disabilities, and people with mental illnesses. The
46.15study must assess critical access at the community level and identify potential strategies
46.16to build home and community-based service capacity in critical access areas. The report
46.17shall be submitted to the legislature no later than August 15, 2015.

46.18    Sec. 3. Minnesota Statutes 2012, section 148E.065, subdivision 4a, is amended to read:
46.19    Subd. 4a. City, county, and state social workers. (a) Beginning July 1, 2016, the
46.20licensure of city, county, and state agency social workers is voluntary, except an individual
46.21who is newly employed by a city or state agency after July 1, 2016, must be licensed
46.22if the individual who provides social work services, as those services are defined in
46.23section 148E.010, subdivision 11, paragraph (b), is presented to the public by any title
46.24incorporating the words "social work" or "social worker."
46.25(b) City, county, and state agencies employing social workers and staff who are
46.26designated to perform mandated duties under sections 256.975, subdivisions 7 to 7c and
46.27256.01, subdivision 24, are not required to employ licensed social workers.

46.28    Sec. 4. Minnesota Statutes 2012, section 256.01, subdivision 2, is amended to read:
46.29    Subd. 2. Specific powers. Subject to the provisions of section 241.021, subdivision
46.302
, the commissioner of human services shall carry out the specific duties in paragraphs (a)
46.31through (cc) (dd):
46.32    (a) Administer and supervise all forms of public assistance provided for by state law
46.33and other welfare activities or services as are vested in the commissioner. Administration
46.34and supervision of human services activities or services includes, but is not limited to,
47.1assuring timely and accurate distribution of benefits, completeness of service, and quality
47.2program management. In addition to administering and supervising human services
47.3activities vested by law in the department, the commissioner shall have the authority to:
47.4    (1) require county agency participation in training and technical assistance programs
47.5to promote compliance with statutes, rules, federal laws, regulations, and policies
47.6governing human services;
47.7    (2) monitor, on an ongoing basis, the performance of county agencies in the
47.8operation and administration of human services, enforce compliance with statutes, rules,
47.9federal laws, regulations, and policies governing welfare services and promote excellence
47.10of administration and program operation;
47.11    (3) develop a quality control program or other monitoring program to review county
47.12performance and accuracy of benefit determinations;
47.13    (4) require county agencies to make an adjustment to the public assistance benefits
47.14issued to any individual consistent with federal law and regulation and state law and rule
47.15and to issue or recover benefits as appropriate;
47.16    (5) delay or deny payment of all or part of the state and federal share of benefits and
47.17administrative reimbursement according to the procedures set forth in section 256.017;
47.18    (6) make contracts with and grants to public and private agencies and organizations,
47.19both profit and nonprofit, and individuals, using appropriated funds; and
47.20    (7) enter into contractual agreements with federally recognized Indian tribes with
47.21a reservation in Minnesota to the extent necessary for the tribe to operate a federally
47.22approved family assistance program or any other program under the supervision of the
47.23commissioner. The commissioner shall consult with the affected county or counties in
47.24the contractual agreement negotiations, if the county or counties wish to be included,
47.25in order to avoid the duplication of county and tribal assistance program services. The
47.26commissioner may establish necessary accounts for the purposes of receiving and
47.27disbursing funds as necessary for the operation of the programs.
47.28    (b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law,
47.29regulation, and policy necessary to county agency administration of the programs.
47.30    (c) Administer and supervise all child welfare activities; promote the enforcement of
47.31laws protecting disabled, dependent, neglected and delinquent children, and children born
47.32to mothers who were not married to the children's fathers at the times of the conception
47.33nor at the births of the children; license and supervise child-caring and child-placing
47.34agencies and institutions; supervise the care of children in boarding and foster homes or
47.35in private institutions; and generally perform all functions relating to the field of child
47.36welfare now vested in the State Board of Control.
48.1    (d) Administer and supervise all noninstitutional service to disabled persons,
48.2including those who are visually impaired, hearing impaired, or physically impaired
48.3or otherwise disabled. The commissioner may provide and contract for the care and
48.4treatment of qualified indigent children in facilities other than those located and available
48.5at state hospitals when it is not feasible to provide the service in state hospitals.
48.6    (e) Assist and actively cooperate with other departments, agencies and institutions,
48.7local, state, and federal, by performing services in conformity with the purposes of Laws
48.81939, chapter 431.
48.9    (f) Act as the agent of and cooperate with the federal government in matters of
48.10mutual concern relative to and in conformity with the provisions of Laws 1939, chapter
48.11431, including the administration of any federal funds granted to the state to aid in the
48.12performance of any functions of the commissioner as specified in Laws 1939, chapter 431,
48.13and including the promulgation of rules making uniformly available medical care benefits
48.14to all recipients of public assistance, at such times as the federal government increases its
48.15participation in assistance expenditures for medical care to recipients of public assistance,
48.16the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
48.17    (g) Establish and maintain any administrative units reasonably necessary for the
48.18performance of administrative functions common to all divisions of the department.
48.19    (h) Act as designated guardian of both the estate and the person of all the wards of
48.20the state of Minnesota, whether by operation of law or by an order of court, without any
48.21further act or proceeding whatever, except as to persons committed as developmentally
48.22disabled. For children under the guardianship of the commissioner or a tribe in Minnesota
48.23recognized by the Secretary of the Interior whose interests would be best served by
48.24adoptive placement, the commissioner may contract with a licensed child-placing agency
48.25or a Minnesota tribal social services agency to provide adoption services. A contract
48.26with a licensed child-placing agency must be designed to supplement existing county
48.27efforts and may not replace existing county programs or tribal social services, unless the
48.28replacement is agreed to by the county board and the appropriate exclusive bargaining
48.29representative, tribal governing body, or the commissioner has evidence that child
48.30placements of the county continue to be substantially below that of other counties. Funds
48.31encumbered and obligated under an agreement for a specific child shall remain available
48.32until the terms of the agreement are fulfilled or the agreement is terminated.
48.33    (i) Act as coordinating referral and informational center on requests for service for
48.34newly arrived immigrants coming to Minnesota.
48.35    (j) The specific enumeration of powers and duties as hereinabove set forth shall in no
48.36way be construed to be a limitation upon the general transfer of powers herein contained.
49.1    (k) Establish county, regional, or statewide schedules of maximum fees and charges
49.2which may be paid by county agencies for medical, dental, surgical, hospital, nursing and
49.3nursing home care and medicine and medical supplies under all programs of medical
49.4care provided by the state and for congregate living care under the income maintenance
49.5programs.
49.6    (l) Have the authority to conduct and administer experimental projects to test methods
49.7and procedures of administering assistance and services to recipients or potential recipients
49.8of public welfare. To carry out such experimental projects, it is further provided that the
49.9commissioner of human services is authorized to waive the enforcement of existing specific
49.10statutory program requirements, rules, and standards in one or more counties. The order
49.11establishing the waiver shall provide alternative methods and procedures of administration,
49.12shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and
49.13in no event shall the duration of a project exceed four years. It is further provided that no
49.14order establishing an experimental project as authorized by the provisions of this section
49.15shall become effective until the following conditions have been met:
49.16    (1) the secretary of health and human services of the United States has agreed, for
49.17the same project, to waive state plan requirements relative to statewide uniformity; and
49.18    (2) a comprehensive plan, including estimated project costs, shall be approved by
49.19the Legislative Advisory Commission and filed with the commissioner of administration.
49.20    (m) According to federal requirements, establish procedures to be followed by
49.21local welfare boards in creating citizen advisory committees, including procedures for
49.22selection of committee members.
49.23    (n) Allocate federal fiscal disallowances or sanctions which are based on quality
49.24control error rates for the aid to families with dependent children program formerly
49.25codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the
49.26following manner:
49.27    (1) one-half of the total amount of the disallowance shall be borne by the county
49.28boards responsible for administering the programs. For the medical assistance and the
49.29AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be
49.30shared by each county board in the same proportion as that county's expenditures for the
49.31sanctioned program are to the total of all counties' expenditures for the AFDC program
49.32formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the
49.33food stamp program, sanctions shall be shared by each county board, with 50 percent of
49.34the sanction being distributed to each county in the same proportion as that county's
49.35administrative costs for food stamps are to the total of all food stamp administrative costs
49.36for all counties, and 50 percent of the sanctions being distributed to each county in the
50.1same proportion as that county's value of food stamp benefits issued are to the total of
50.2all benefits issued for all counties. Each county shall pay its share of the disallowance
50.3to the state of Minnesota. When a county fails to pay the amount due hereunder, the
50.4commissioner may deduct the amount from reimbursement otherwise due the county, or
50.5the attorney general, upon the request of the commissioner, may institute civil action
50.6to recover the amount due; and
50.7    (2) notwithstanding the provisions of clause (1), if the disallowance results from
50.8knowing noncompliance by one or more counties with a specific program instruction, and
50.9that knowing noncompliance is a matter of official county board record, the commissioner
50.10may require payment or recover from the county or counties, in the manner prescribed in
50.11clause (1), an amount equal to the portion of the total disallowance which resulted from the
50.12noncompliance, and may distribute the balance of the disallowance according to clause (1).
50.13    (o) Develop and implement special projects that maximize reimbursements and
50.14result in the recovery of money to the state. For the purpose of recovering state money,
50.15the commissioner may enter into contracts with third parties. Any recoveries that result
50.16from projects or contracts entered into under this paragraph shall be deposited in the
50.17state treasury and credited to a special account until the balance in the account reaches
50.18$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
50.19transferred and credited to the general fund. All money in the account is appropriated to
50.20the commissioner for the purposes of this paragraph.
50.21    (p) Have the authority to make direct payments to facilities providing shelter
50.22to women and their children according to section 256D.05, subdivision 3. Upon
50.23the written request of a shelter facility that has been denied payments under section
50.24256D.05, subdivision 3 , the commissioner shall review all relevant evidence and make
50.25a determination within 30 days of the request for review regarding issuance of direct
50.26payments to the shelter facility. Failure to act within 30 days shall be considered a
50.27determination not to issue direct payments.
50.28    (q) Have the authority to establish and enforce the following county reporting
50.29requirements:
50.30    (1) the commissioner shall establish fiscal and statistical reporting requirements
50.31necessary to account for the expenditure of funds allocated to counties for human
50.32services programs. When establishing financial and statistical reporting requirements, the
50.33commissioner shall evaluate all reports, in consultation with the counties, to determine if
50.34the reports can be simplified or the number of reports can be reduced;
50.35    (2) the county board shall submit monthly or quarterly reports to the department
50.36as required by the commissioner. Monthly reports are due no later than 15 working days
51.1after the end of the month. Quarterly reports are due no later than 30 calendar days after
51.2the end of the quarter, unless the commissioner determines that the deadline must be
51.3shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines
51.4or risking a loss of federal funding. Only reports that are complete, legible, and in the
51.5required format shall be accepted by the commissioner;
51.6    (3) if the required reports are not received by the deadlines established in clause (2),
51.7the commissioner may delay payments and withhold funds from the county board until
51.8the next reporting period. When the report is needed to account for the use of federal
51.9funds and the late report results in a reduction in federal funding, the commissioner shall
51.10withhold from the county boards with late reports an amount equal to the reduction in
51.11federal funding until full federal funding is received;
51.12    (4) a county board that submits reports that are late, illegible, incomplete, or not
51.13in the required format for two out of three consecutive reporting periods is considered
51.14noncompliant. When a county board is found to be noncompliant, the commissioner
51.15shall notify the county board of the reason the county board is considered noncompliant
51.16and request that the county board develop a corrective action plan stating how the
51.17county board plans to correct the problem. The corrective action plan must be submitted
51.18to the commissioner within 45 days after the date the county board received notice
51.19of noncompliance;
51.20    (5) the final deadline for fiscal reports or amendments to fiscal reports is one year
51.21after the date the report was originally due. If the commissioner does not receive a report
51.22by the final deadline, the county board forfeits the funding associated with the report for
51.23that reporting period and the county board must repay any funds associated with the
51.24report received for that reporting period;
51.25    (6) the commissioner may not delay payments, withhold funds, or require repayment
51.26under clause (3) or (5) if the county demonstrates that the commissioner failed to
51.27provide appropriate forms, guidelines, and technical assistance to enable the county to
51.28comply with the requirements. If the county board disagrees with an action taken by the
51.29commissioner under clause (3) or (5), the county board may appeal the action according
51.30to sections 14.57 to 14.69; and
51.31    (7) counties subject to withholding of funds under clause (3) or forfeiture or
51.32repayment of funds under clause (5) shall not reduce or withhold benefits or services to
51.33clients to cover costs incurred due to actions taken by the commissioner under clause
51.34(3) or (5).
52.1    (r) Allocate federal fiscal disallowances or sanctions for audit exceptions when
52.2federal fiscal disallowances or sanctions are based on a statewide random sample in direct
52.3proportion to each county's claim for that period.
52.4    (s) Be responsible for ensuring the detection, prevention, investigation, and
52.5resolution of fraudulent activities or behavior by applicants, recipients, and other
52.6participants in the human services programs administered by the department.
52.7    (t) Require county agencies to identify overpayments, establish claims, and utilize
52.8all available and cost-beneficial methodologies to collect and recover these overpayments
52.9in the human services programs administered by the department.
52.10    (u) Have the authority to administer a drug rebate program for drugs purchased
52.11pursuant to the prescription drug program established under section 256.955 after the
52.12beneficiary's satisfaction of any deductible established in the program. The commissioner
52.13shall require a rebate agreement from all manufacturers of covered drugs as defined in
52.14section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on
52.15or after July 1, 2002, must include rebates for individuals covered under the prescription
52.16drug program who are under 65 years of age. For each drug, the amount of the rebate shall
52.17be equal to the rebate as defined for purposes of the federal rebate program in United
52.18States Code, title 42, section 1396r-8. The manufacturers must provide full payment
52.19within 30 days of receipt of the state invoice for the rebate within the terms and conditions
52.20used for the federal rebate program established pursuant to section 1927 of title XIX of
52.21the Social Security Act. The manufacturers must provide the commissioner with any
52.22information necessary to verify the rebate determined per drug. The rebate program shall
52.23utilize the terms and conditions used for the federal rebate program established pursuant to
52.24section 1927 of title XIX of the Social Security Act.
52.25    (v) Have the authority to administer the federal drug rebate program for drugs
52.26purchased under the medical assistance program as allowed by section 1927 of title XIX
52.27of the Social Security Act and according to the terms and conditions of section 1927.
52.28Rebates shall be collected for all drugs that have been dispensed or administered in an
52.29outpatient setting and that are from manufacturers who have signed a rebate agreement
52.30with the United States Department of Health and Human Services.
52.31    (w) Have the authority to administer a supplemental drug rebate program for drugs
52.32purchased under the medical assistance program. The commissioner may enter into
52.33supplemental rebate contracts with pharmaceutical manufacturers and may require prior
52.34authorization for drugs that are from manufacturers that have not signed a supplemental
52.35rebate contract. Prior authorization of drugs shall be subject to the provisions of section
52.36256B.0625, subdivision 13 .
53.1    (x) Operate the department's communication systems account established in Laws
53.21993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared
53.3communication costs necessary for the operation of the programs the commissioner
53.4supervises. A communications account may also be established for each regional
53.5treatment center which operates communications systems. Each account must be used
53.6to manage shared communication costs necessary for the operations of the programs the
53.7commissioner supervises. The commissioner may distribute the costs of operating and
53.8maintaining communication systems to participants in a manner that reflects actual usage.
53.9Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and
53.10other costs as determined by the commissioner. Nonprofit organizations and state, county,
53.11and local government agencies involved in the operation of programs the commissioner
53.12supervises may participate in the use of the department's communications technology and
53.13share in the cost of operation. The commissioner may accept on behalf of the state any
53.14gift, bequest, devise or personal property of any kind, or money tendered to the state for
53.15any lawful purpose pertaining to the communication activities of the department. Any
53.16money received for this purpose must be deposited in the department's communication
53.17systems accounts. Money collected by the commissioner for the use of communication
53.18systems must be deposited in the state communication systems account and is appropriated
53.19to the commissioner for purposes of this section.
53.20    (y) Receive any federal matching money that is made available through the medical
53.21assistance program for the consumer satisfaction survey. Any federal money received for
53.22the survey is appropriated to the commissioner for this purpose. The commissioner may
53.23expend the federal money received for the consumer satisfaction survey in either year of
53.24the biennium.
53.25    (z) Designate community information and referral call centers and incorporate
53.26cost reimbursement claims from the designated community information and referral
53.27call centers into the federal cost reimbursement claiming processes of the department
53.28according to federal law, rule, and regulations. Existing information and referral centers
53.29provided by Greater Twin Cities United Way or existing call centers for which Greater
53.30Twin Cities United Way has legal authority to represent, shall be included in these
53.31designations upon review by the commissioner and assurance that these services are
53.32accredited and in compliance with national standards. Any reimbursement is appropriated
53.33to the commissioner and all designated information and referral centers shall receive
53.34payments according to normal department schedules established by the commissioner
53.35upon final approval of allocation methodologies from the United States Department of
53.36Health and Human Services Division of Cost Allocation or other appropriate authorities.
54.1    (aa) Develop recommended standards for foster care homes that address the
54.2components of specialized therapeutic services to be provided by foster care homes with
54.3those services.
54.4    (bb) Authorize the method of payment to or from the department as part of the
54.5human services programs administered by the department. This authorization includes the
54.6receipt or disbursement of funds held by the department in a fiduciary capacity as part of
54.7the human services programs administered by the department.
54.8    (cc) Have the authority to administer a drug rebate program for drugs purchased for
54.9persons eligible for general assistance medical care under section 256D.03, subdivision 3.
54.10For manufacturers that agree to participate in the general assistance medical care rebate
54.11program, the commissioner shall enter into a rebate agreement for covered drugs as
54.12defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the
54.13rebate shall be equal to the rebate as defined for purposes of the federal rebate program in
54.14United States Code, title 42, section 1396r-8. The manufacturers must provide payment
54.15within the terms and conditions used for the federal rebate program established under
54.16section 1927 of title XIX of the Social Security Act. The rebate program shall utilize
54.17the terms and conditions used for the federal rebate program established under section
54.181927 of title XIX of the Social Security Act.
54.19    Effective January 1, 2006, drug coverage under general assistance medical care shall
54.20be limited to those prescription drugs that:
54.21    (1) are covered under the medical assistance program as described in section
54.22256B.0625, subdivisions 13 and 13d ; and
54.23    (2) are provided by manufacturers that have fully executed general assistance
54.24medical care rebate agreements with the commissioner and comply with such agreements.
54.25Prescription drug coverage under general assistance medical care shall conform to
54.26coverage under the medical assistance program according to section 256B.0625,
54.27subdivisions 13 to 13g
.
54.28    The rebate revenues collected under the drug rebate program are deposited in the
54.29general fund.
54.30(dd) Designate the agencies that operate the Senior LinkAge Line under section
54.31256.975, subdivision 7, and the Disability Linkage Line under subdivision 24 as the state
54.32of Minnesota Aging and the Disability Resource Centers under United States Code, title
54.3342, section 3001, the Older Americans Act Amendments of 2006, and incorporate cost
54.34reimbursement claims from the designated centers into the federal cost reimbursement
54.35claiming processes of the department according to federal law, rule, and regulations. Any
54.36reimbursement must be appropriated to the commissioner and treated consistent with
55.1section 256.011. All Aging and Disability Resource Center designated agencies shall
55.2receive payments of grant funding that supports the activity and generates the federal
55.3financial participation according to Board on Aging administrative granting mechanisms.

55.4    Sec. 5. Minnesota Statutes 2012, section 256.01, subdivision 24, is amended to read:
55.5    Subd. 24. Disability Linkage Line. The commissioner shall establish the Disability
55.6Linkage Line, to which shall serve people with disabilities as the designated Aging and
55.7Disability Resource Center under United States Code, title 42, section 3001, the Older
55.8Americans Act Amendments of 2006, in partnership with the Senior LinkAge Line and
55.9shall serve as Minnesota's neutral access point for statewide disability information and
55.10assistance and must be available during business hours through a statewide toll-free
55.11number and the Internet. The Disability Linkage Line shall:
55.12(1) deliver information and assistance based on national and state standards;
55.13    (2) provide information about state and federal eligibility requirements, benefits,
55.14and service options;
55.15(3) provide benefits and options counseling;
55.16    (4) make referrals to appropriate support entities;
55.17    (5) educate people on their options so they can make well-informed choices and link
55.18them to quality profiles;
55.19    (6) help support the timely resolution of service access and benefit issues;
55.20(7) inform people of their long-term community services and supports;
55.21(8) provide necessary resources and supports that can lead to employment and
55.22increased economic stability of people with disabilities; and
55.23(9) serve as the technical assistance and help center for the Web-based tool,
55.24Minnesota's Disability Benefits 101.org.

55.25    Sec. 6. Minnesota Statutes 2012, section 256.975, subdivision 7, is amended to read:
55.26    Subd. 7. Consumer information and assistance and long-term care options
55.27counseling; Senior LinkAge Line. (a) The Minnesota Board on Aging shall operate a
55.28statewide service to aid older Minnesotans and their families in making informed choices
55.29about long-term care options and health care benefits. Language services to persons
55.30with limited English language skills may be made available. The service, known as
55.31Senior LinkAge Line, shall serve older adults as the designated Aging and Disability
55.32Resource Center under United States Code, title 42, section 3001, the Older Americans
55.33Act Amendments of 2006 in partnership with the Disability LinkAge Line under section
55.34256.01, subdivision 24, and must be available during business hours through a statewide
56.1toll-free number and must also be available through the Internet. The Minnesota Board
56.2on Aging shall consult with, and when appropriate work through, the area agencies on
56.3aging counties, and other entities that serve aging and disabled populations of all ages,
56.4to provide and maintain the telephone infrastructure and related support for the Aging
56.5and Disability Resource Center partners which agree by memorandum to access the
56.6infrastructure, including the designated providers of the Senior LinkAge Line and the
56.7Disability Linkage Line.
56.8    (b) The service must provide long-term care options counseling by assisting older
56.9adults, caregivers, and providers in accessing information and options counseling about
56.10choices in long-term care services that are purchased through private providers or available
56.11through public options. The service must:
56.12    (1) develop and provide for regular updating of a comprehensive database that
56.13includes detailed listings in both consumer- and provider-oriented formats that can provide
56.14search results down to the neighborhood level;
56.15    (2) make the database accessible on the Internet and through other telecommunication
56.16and media-related tools;
56.17    (3) link callers to interactive long-term care screening tools and make these tools
56.18available through the Internet by integrating the tools with the database;
56.19    (4) develop community education materials with a focus on planning for long-term
56.20care and evaluating independent living, housing, and service options;
56.21    (5) conduct an outreach campaign to assist older adults and their caregivers in
56.22finding information on the Internet and through other means of communication;
56.23    (6) implement a messaging system for overflow callers and respond to these callers
56.24by the next business day;
56.25    (7) link callers with county human services and other providers to receive more
56.26in-depth assistance and consultation related to long-term care options;
56.27    (8) link callers with quality profiles for nursing facilities and other home and
56.28community-based services providers developed by the commissioner commissioners of
56.29health and human services;
56.30(9) develop an outreach plan to seniors and their caregivers with a particular focus
56.31on establishing a clear presence in places that seniors recognize and:
56.32(i) place a significant emphasis on improved outreach and service to seniors and
56.33their caregivers by establishing annual plans by neighborhood, city, and county, as
56.34necessary, to address the unique needs of geographic areas in the state where there are
56.35dense populations of seniors;
57.1(ii) establish an efficient workforce management approach and assign community
57.2living specialist staff and volunteers to geographic areas as well as aging and disability
57.3resource center sites so that seniors and their caregivers and professionals recognize the
57.4Senior LinkAge Line as the place to call for aging services and information;
57.5(iii) recognize the size and complexity of the metropolitan area service system by
57.6working with metropolitan counties to establish a clear partnership with them, including
57.7seeking county advice on the establishment of local aging and disabilities resource center
57.8sites; and
57.9(iv) maintain dashboards with metrics that demonstrate how the service is expanding
57.10and extending or enhancing its outreach efforts in dispersed or hard to reach locations in
57.11varied population centers;
57.12    (9) (10) incorporate information about the availability of housing options, as well
57.13as registered housing with services and consumer rights within the MinnesotaHelp.info
57.14network long-term care database to facilitate consumer comparison of services and costs
57.15among housing with services establishments and with other in-home services and to
57.16support financial self-sufficiency as long as possible. Housing with services establishments
57.17and their arranged home care providers shall provide information that will facilitate price
57.18comparisons, including delineation of charges for rent and for services available. The
57.19commissioners of health and human services shall align the data elements required by
57.20section 144G.06, the Uniform Consumer Information Guide, and this section to provide
57.21consumers standardized information and ease of comparison of long-term care options.
57.22The commissioner of human services shall provide the data to the Minnesota Board on
57.23Aging for inclusion in the MinnesotaHelp.info network long-term care database;
57.24(10) (11) provide long-term care options counseling. Long-term care options
57.25counselors shall:
57.26(i) for individuals not eligible for case management under a public program or public
57.27funding source, provide interactive decision support under which consumers, family
57.28members, or other helpers are supported in their deliberations to determine appropriate
57.29long-term care choices in the context of the consumer's needs, preferences, values, and
57.30individual circumstances, including implementing a community support plan;
57.31(ii) provide Web-based educational information and collateral written materials to
57.32familiarize consumers, family members, or other helpers with the long-term care basics,
57.33issues to be considered, and the range of options available in the community;
57.34(iii) provide long-term care futures planning, which means providing assistance to
57.35individuals who anticipate having long-term care needs to develop a plan for the more
57.36distant future; and
58.1(iv) provide expertise in benefits and financing options for long-term care, including
58.2Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages,
58.3private pay options, and ways to access low or no-cost services or benefits through
58.4volunteer-based or charitable programs;
58.5(11) (12) using risk management and support planning protocols, provide long-term
58.6care options counseling to current residents of nursing homes deemed appropriate for
58.7discharge by the commissioner and older adults who request service after consultation
58.8with the Senior LinkAge Line under clause (12). In order to meet this requirement, The
58.9Senior LinkAge Line shall also receive referrals from the residents or staff of nursing
58.10homes. The Senior LinkAge Line shall identify and contact residents deemed appropriate
58.11for discharge by developing targeting criteria in consultation with the commissioner who
58.12shall provide designated Senior LinkAge Line contact centers with a list of nursing
58.13home residents that meet the criteria as being appropriate for discharge planning via a
58.14secure Web portal. Senior LinkAge Line shall provide these residents, if they indicate a
58.15preference to receive long-term care options counseling, with initial assessment, review of
58.16risk factors, independent living support consultation, or and, if appropriate, a referral to:
58.17(i) long-term care consultation services under section 256B.0911;
58.18(ii) designated care coordinators of contracted entities under section 256B.035 for
58.19persons who are enrolled in a managed care plan; or
58.20(iii) the long-term care consultation team for those who are appropriate eligible
58.21 for relocation service coordination due to high-risk factors or psychological or physical
58.22disability; and
58.23(12) (13) develop referral protocols and processes that will assist certified health
58.24care homes and hospitals to identify at-risk older adults and determine when to refer these
58.25individuals to the Senior LinkAge Line for long-term care options counseling under this
58.26section. The commissioner is directed to work with the commissioner of health to develop
58.27protocols that would comply with the health care home designation criteria and protocols
58.28available at the time of hospital discharge. The commissioner shall keep a record of the
58.29number of people who choose long-term care options counseling as a result of this section.

58.30    Sec. 7. Minnesota Statutes 2012, section 256.975, is amended by adding a subdivision
58.31to read:
58.32    Subd. 7a. Preadmission screening activities related to nursing facility
58.33admissions. (a) All individuals seeking admission to Medicaid certified nursing facilities,
58.34including certified boarding care facilities, must be screened prior to admission regardless
58.35of income, assets, or funding sources for nursing facility care, except as described in
59.1subdivision 7b, paragraphs (a) and (b). The purpose of the screening is to determine the
59.2need for nursing facility level of care as described in section 256B.0911, subdivision
59.34e, and to complete activities required under federal law related to mental illness and
59.4developmental disability as outlined in paragraph (b).
59.5(b) A person who has a diagnosis or possible diagnosis of mental illness or
59.6developmental disability must receive a preadmission screening before admission
59.7regardless of the exemptions outlined in subdivision 7b, paragraphs (a) and (b), to identify
59.8the need for further evaluation and specialized services, unless the admission prior to
59.9screening is authorized by the local mental health authority or the local developmental
59.10disabilities case manager, or unless authorized by the county agency according to Public
59.11Law 101-508.
59.12(c) The following criteria apply to the preadmission screening:
59.13(1) requests for preadmission screenings must be submitted via an online form
59.14developed by the commissioner;
59.15(2) the Senior LinkAge Line must use forms and criteria developed by the
59.16commissioner to identify persons who require referral for further evaluation and
59.17determination of the need for specialized services; and
59.18(3) the evaluation and determination of the need for specialized services must be
59.19done by:
59.20(i) a qualified independent mental health professional, for persons with a primary or
59.21secondary diagnosis of a serious mental illness; or
59.22(ii) a qualified developmental disability professional, for persons with a primary or
59.23secondary diagnosis of developmental disability. For purposes of this requirement, a
59.24qualified developmental disability professional must meet the standards for a qualified
59.25developmental disability professional under Code of Federal Regulations, title 42, section
59.26483.430.
59.27(d) The local county mental health authority or the state developmental disability
59.28authority under Public Law Numbers 100-203 and 101-508 may prohibit admission to a
59.29nursing facility if the individual does not meet the nursing facility level of care criteria or
59.30needs specialized services as defined in Public Law Numbers 100-203 and 101-508. For
59.31purposes of this section, "specialized services" for a person with developmental disability
59.32means active treatment as that term is defined under Code of Federal Regulations, title
59.3342, section 483.440(a)(1).
59.34(e) In assessing a person's needs, the screener shall:
59.35(1) use an automated system designated by the commissioner;
59.36(2) consult with care transitions coordinators or physician; and
60.1(3) consider the assessment of the individual's physician.
60.2Other personnel may be included in the level of care determination as deemed
60.3necessary by the screener.
60.4EFFECTIVE DATE.This section is effective October 1, 2013.

60.5    Sec. 8. Minnesota Statutes 2012, section 256.975, is amended by adding a subdivision
60.6to read:
60.7    Subd. 7b. Exemptions and emergency admissions. (a) Exemptions from the federal
60.8screening requirements outlined in subdivision 7a, paragraphs (b) and (c), are limited to:
60.9(1) a person who, having entered an acute care facility from a certified nursing
60.10facility, is returning to a certified nursing facility; or
60.11(2) a person transferring from one certified nursing facility in Minnesota to another
60.12certified nursing facility in Minnesota.
60.13(b) Persons who are exempt from preadmission screening for purposes of level of
60.14care determination include:
60.15(1) persons described in paragraph (a);
60.16(2) an individual who has a contractual right to have nursing facility care paid for
60.17indefinitely by the Veterans' Administration;
60.18(3) an individual enrolled in a demonstration project under section 256B.69,
60.19subdivision 8, at the time of application to a nursing facility; and
60.20(4) an individual currently being served under the alternative care program or under
60.21a home and community-based services waiver authorized under section 1915(c) of the
60.22federal Social Security Act.
60.23(c) Persons admitted to a Medicaid-certified nursing facility from the community
60.24on an emergency basis as described in paragraph (d) or from an acute care facility on a
60.25nonworking day must be screened the first working day after admission.
60.26(d) Emergency admission to a nursing facility prior to screening is permitted when
60.27all of the following conditions are met:
60.28(1) a person is admitted from the community to a certified nursing or certified
60.29boarding care facility during Senior LinkAge Line nonworking hours;
60.30(2) a physician has determined that delaying admission until preadmission screening
60.31is completed would adversely affect the person's health and safety;
60.32(3) there is a recent precipitating event that precludes the client from living safely in
60.33the community, such as sustaining an injury, sudden onset of acute illness, or a caregiver's
60.34inability to continue to provide care;
61.1(4) the attending physician has authorized the emergency placement and has
61.2documented the reason that the emergency placement is recommended; and
61.3(5) the Senior LinkAge Line is contacted on the first working day following the
61.4emergency admission.
61.5Transfer of a patient from an acute care hospital to a nursing facility is not considered
61.6an emergency except for a person who has received hospital services in the following
61.7situations: hospital admission for observation, care in an emergency room without hospital
61.8admission, or following hospital 24-hour bed care and from whom admission is being
61.9sought on a nonworking day.
61.10(e) A nursing facility must provide written information to all persons admitted
61.11regarding the person's right to request and receive long-term care consultation services as
61.12defined in section 256B.0911, subdivision 1a. The information must be provided prior to
61.13the person's discharge from the facility and in a format specified by the commissioner.
61.14EFFECTIVE DATE.This section is effective October 1, 2013.

61.15    Sec. 9. Minnesota Statutes 2012, section 256.975, is amended by adding a subdivision
61.16to read:
61.17    Subd. 7c. Screening requirements. (a) A person may be screened for nursing
61.18facility admission by telephone or in a face-to-face screening interview. The Senior
61.19LinkAge Line shall identify each individual's needs using the following categories:
61.20(1) the person needs no face-to-face long-term care consultation assessment
61.21completed under section 256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or
61.22managed care organization under contract with the Department of Human Services to
61.23determine the need for nursing facility level of care based on information obtained from
61.24other health care professionals;
61.25(2) the person needs an immediate face-to-face long-term care consultation
61.26assessment completed under section 256B.0911, subdivision 3a, 3b, or 4d, by a county,
61.27tribe, or managed care organization under contract with the Department of Human
61.28Services to determine the need for nursing facility level of care and complete activities
61.29required under subdivision 7a; or
61.30(3) the person may be exempt from screening requirements as outlined in subdivision
61.317b, but will need transitional assistance after admission or in-person follow-along after
61.32a return home.
61.33(b) Individuals under 65 years of age who are admitted to nursing facilities with
61.34only a telephone screening must receive a face-to-face assessment from the long-term
61.35care consultation team member of the county in which the facility is located or from the
62.1recipient's county case manager within 40 calendar days of admission as described in
62.2section 256B.0911, subdivision 4d, paragraph (c).
62.3(c) Persons admitted on a nonemergency basis to a Medicaid-certified nursing
62.4facility must be screened prior to admission.
62.5(d) Screenings provided by the Senior LinkAge Line must include processes
62.6to identify persons who may require transition assistance described in subdivision 7,
62.7paragraph (b), clause (12), and section 256B.0911, subdivision 3b.
62.8EFFECTIVE DATE.This section is effective October 1, 2013.

62.9    Sec. 10. Minnesota Statutes 2012, section 256.975, is amended by adding a subdivision
62.10to read:
62.11    Subd. 7d. Payment for preadmission screening. Funding for preadmission
62.12screening shall be provided to the Minnesota Board on Aging by the Department of
62.13Human Services to cover screener salaries and expenses to provide the services described
62.14in subdivisions 7a to 7c. The Minnesota Board on Aging shall employ, or contract with
62.15other agencies to employ, within the limits of available funding, sufficient personnel to
62.16provide preadmission screening and level of care determination services and shall seek to
62.17maximize federal funding for the service as provided under section 256.01, subdivision
62.182, paragraph (dd).
62.19EFFECTIVE DATE.This section is effective October 1, 2013.

62.20    Sec. 11. Minnesota Statutes 2012, section 256.9754, is amended by adding a
62.21subdivision to read:
62.22    Subd. 3a. Priority for other grants. The commissioner of health shall give priority
62.23to a grantee selected under subdivision 3 when awarding technology-related grants, if the
62.24grantee is using technology as part of the proposal unless that priority conflicts with
62.25existing state or federal guidance related to grant awards by the Department of Health.
62.26The commissioner of transportation shall give priority to a grantee under subdivision 3
62.27when distributing transportation-related funds to create transportation options for older
62.28adults unless that preference conflicts with existing state or federal guidance related to
62.29grant awards by the Department of Transportation.

62.30    Sec. 12. Minnesota Statutes 2012, section 256.9754, is amended by adding a
62.31subdivision to read:
63.1    Subd. 3b. State waivers. The commissioner of health may waive applicable state
63.2laws and rules on a time-limited basis if the commissioner of health determines that a
63.3participating grantee requires a waiver in order to achieve demonstration project goals.

63.4    Sec. 13. Minnesota Statutes 2012, section 256.9754, subdivision 5, is amended to read:
63.5    Subd. 5. Grant preference. The commissioner of human services shall give
63.6preference when awarding grants under this section to areas where nursing facility
63.7closures have occurred or are occurring or areas with service needs identified by section
63.8144A.351. The commissioner may award grants to the extent grant funds are available
63.9and to the extent applications are approved by the commissioner. Denial of approval of an
63.10application in one year does not preclude submission of an application in a subsequent
63.11year. The maximum grant amount is limited to $750,000.

63.12    Sec. 14. Minnesota Statutes 2012, section 256B.021, is amended by adding a
63.13subdivision to read:
63.14    Subd. 4a. Evaluation. The commissioner shall evaluate the projects contained in
63.15subdivision 4, paragraphs (f), clauses (2) and (12), and (h). The evaluation must include:
63.16(1) an impact assessment focusing on program outcomes, especially those
63.17experienced directly by the person receiving services;
63.18(2) study samples drawn from the population of interest for each project; and
63.19(3) a time series analysis to examine aggregate trends in average monthly
63.20utilization, expenditures, and other outcomes in the targeted populations before and after
63.21implementation of the initiatives.

63.22    Sec. 15. Minnesota Statutes 2012, section 256B.021, is amended by adding a
63.23subdivision to read:
63.24    Subd. 6. Work, empower, and encourage independence. As provided under
63.25subdivision 4, paragraph (e), upon federal approval, the commissioner shall establish a
63.26demonstration project to provide navigation, employment supports, and benefits planning
63.27services to a targeted group of federally funded Medicaid recipients to begin July 1, 2014.
63.28This demonstration shall promote economic stability, increase independence, and reduce
63.29applications for disability benefits while providing a positive impact on the health and
63.30future of participants.

63.31    Sec. 16. Minnesota Statutes 2012, section 256B.021, is amended by adding a
63.32subdivision to read:
64.1    Subd. 7. Housing stabilization. As provided under subdivision 4, paragraph (e),
64.2upon federal approval, the commissioner shall establish a demonstration project to provide
64.3service coordination, outreach, in-reach, tenancy support, and community living assistance
64.4to a targeted group of federally funded Medicaid recipients to begin January 1, 2014. This
64.5demonstration shall promote housing stability, reduce costly medical interventions, and
64.6increase opportunities for independent community living.

64.7    Sec. 17. Minnesota Statutes 2012, section 256B.0911, subdivision 1, is amended to read:
64.8    Subdivision 1. Purpose and goal. (a) The purpose of long-term care consultation
64.9services is to assist persons with long-term or chronic care needs in making care
64.10decisions and selecting support and service options that meet their needs and reflect
64.11their preferences. The availability of, and access to, information and other types of
64.12assistance, including assessment and support planning, is also intended to prevent or delay
64.13institutional placements and to provide access to transition assistance after admission.
64.14Further, the goal of these services is to contain costs associated with unnecessary
64.15institutional admissions. Long-term consultation services must be available to any person
64.16regardless of public program eligibility. The commissioner of human services shall seek
64.17to maximize use of available federal and state funds and establish the broadest program
64.18possible within the funding available.
64.19(b) These services must be coordinated with long-term care options counseling
64.20provided under subdivision 4d, section 256.975, subdivision subdivisions 7 to 7c, and
64.21section 256.01, subdivision 24. The lead agency providing long-term care consultation
64.22services shall encourage the use of volunteers from families, religious organizations, social
64.23clubs, and similar civic and service organizations to provide community-based services.

64.24    Sec. 18. Minnesota Statutes 2012, section 256B.0911, subdivision 1a, is amended to
64.25read:
64.26    Subd. 1a. Definitions. For purposes of this section, the following definitions apply:
64.27    (a) Until additional requirements apply under paragraph (b), "long-term care
64.28consultation services" means:
64.29    (1) intake for and access to assistance in identifying services needed to maintain an
64.30individual in the most inclusive environment;
64.31    (2) providing recommendations for and referrals to cost-effective community
64.32services that are available to the individual;
64.33    (3) development of an individual's person-centered community support plan;
64.34    (4) providing information regarding eligibility for Minnesota health care programs;
65.1    (5) face-to-face long-term care consultation assessments, which may be completed
65.2in a hospital, nursing facility, intermediate care facility for persons with developmental
65.3disabilities (ICF/DDs), regional treatment centers, or the person's current or planned
65.4residence;
65.5    (6) federally mandated preadmission screening activities described under
65.6subdivisions 4a and 4b;
65.7    (7) (6) determination of home and community-based waiver and other service
65.8eligibility as required under sections 256B.0913, 256B.0915, and 256B.49, including level
65.9of care determination for individuals who need an institutional level of care as determined
65.10under section 256B.0911, subdivision 4a, paragraph (d) 4e, based on assessment and
65.11community support plan development, appropriate referrals to obtain necessary diagnostic
65.12information, and including an eligibility determination for consumer-directed community
65.13supports;
65.14    (8) (7) providing recommendations for institutional placement when there are no
65.15cost-effective community services available;
65.16    (9) (8) providing access to assistance to transition people back to community settings
65.17after institutional admission; and
65.18(10) (9) providing information about competitive employment, with or without
65.19supports, for school-age youth and working-age adults and referrals to the Disability
65.20Linkage Line and Disability Benefits 101 to ensure that an informed choice about
65.21competitive employment can be made. For the purposes of this subdivision, "competitive
65.22employment" means work in the competitive labor market that is performed on a full-time
65.23or part-time basis in an integrated setting, and for which an individual is compensated at or
65.24above the minimum wage, but not less than the customary wage and level of benefits paid
65.25by the employer for the same or similar work performed by individuals without disabilities.
65.26(b) Upon statewide implementation of lead agency requirements in subdivisions 2b,
65.272c, and 3a, "long-term care consultation services" also means:
65.28(1) service eligibility determination for state plan home care services identified in:
65.29(i) section 256B.0625, subdivisions 7, 19a, and 19c;
65.30(ii) section 256B.0657; or
65.31(iii) consumer support grants under section 256.476;
65.32(2) notwithstanding provisions in Minnesota Rules, parts 9525.0004 to 9525.0024,
65.33determination of eligibility for case management services available under sections
65.34256B.0621, subdivision 2 , paragraph (4), and 256B.0924 and Minnesota Rules, part
65.359525.0016;
66.1(3) determination of institutional level of care, home and community-based service
66.2waiver, and other service eligibility as required under section 256B.092, determination
66.3of eligibility for family support grants under section 252.32, semi-independent living
66.4services under section 252.275, and day training and habilitation services under section
66.5256B.092 ; and
66.6(4) obtaining necessary diagnostic information to determine eligibility under clauses
66.7(2) and (3).
66.8    (c) "Long-term care options counseling" means the services provided by the linkage
66.9lines as mandated by sections 256.01, subdivision 24, and 256.975, subdivision 7, and
66.10also includes telephone assistance and follow up once a long-term care consultation
66.11assessment has been completed.
66.12    (d) "Minnesota health care programs" means the medical assistance program under
66.13chapter 256B and the alternative care program under section 256B.0913.
66.14    (e) "Lead agencies" means counties administering or tribes and health plans under
66.15contract with the commissioner to administer long-term care consultation assessment and
66.16support planning services.

66.17    Sec. 19. Minnesota Statutes 2012, section 256B.0911, subdivision 3a, is amended to
66.18read:
66.19    Subd. 3a. Assessment and support planning. (a) Persons requesting assessment,
66.20services planning, or other assistance intended to support community-based living,
66.21including persons who need assessment in order to determine waiver or alternative care
66.22program eligibility, must be visited by a long-term care consultation team within 20
66.23calendar days after the date on which an assessment was requested or recommended.
66.24Upon statewide implementation of subdivisions 2b, 2c, and 5, this requirement also
66.25applies to an assessment of a person requesting personal care assistance services and
66.26private duty nursing. The commissioner shall provide at least a 90-day notice to lead
66.27agencies prior to the effective date of this requirement. Face-to-face assessments must be
66.28conducted according to paragraphs (b) to (i).
66.29    (b) The lead agency may utilize a team of either the social worker or public health
66.30nurse, or both. Upon implementation of subdivisions 2b, 2c, and 5, lead agencies shall
66.31use certified assessors to conduct the assessment. The consultation team members must
66.32confer regarding the most appropriate care for each individual screened or assessed. For
66.33a person with complex health care needs, a public health or registered nurse from the
66.34team must be consulted.
67.1    (c) The assessment must be comprehensive and include a person-centered assessment
67.2of the health, psychological, functional, environmental, and social needs of referred
67.3individuals and provide information necessary to develop a community support plan that
67.4meets the consumers needs, using an assessment form provided by the commissioner.
67.5    (d) The assessment must be conducted in a face-to-face interview with the person
67.6being assessed and the person's legal representative, and other individuals as requested by
67.7the person, who can provide information on the needs, strengths, and preferences of the
67.8person necessary to develop a community support plan that ensures the person's health and
67.9safety, but who is not a provider of service or has any financial interest in the provision
67.10of services. For persons who are to be assessed for elderly waiver customized living
67.11services under section 256B.0915, with the permission of the person being assessed or
67.12the person's designated or legal representative, the client's current or proposed provider
67.13of services may submit a copy of the provider's nursing assessment or written report
67.14outlining its recommendations regarding the client's care needs. The person conducting
67.15the assessment will notify the provider of the date by which this information is to be
67.16submitted. This information shall be provided to the person conducting the assessment
67.17prior to the assessment.
67.18    (e) If the person chooses to use community-based services, the person or the person's
67.19legal representative must be provided with a written community support plan within 40
67.20calendar days of the assessment visit, regardless of whether the individual is eligible for
67.21Minnesota health care programs. The written community support plan must include:
67.22(1) a summary of assessed needs as defined in paragraphs (c) and (d);
67.23(2) the individual's options and choices to meet identified needs, including all
67.24available options for case management services and providers;
67.25(3) identification of health and safety risks and how those risks will be addressed,
67.26including personal risk management strategies;
67.27(4) referral information; and
67.28(5) informal caregiver supports, if applicable.
67.29For a person determined eligible for state plan home care under subdivision 1a,
67.30paragraph (b), clause (1), the person or person's representative must also receive a copy of
67.31the home care service plan developed by the certified assessor.
67.32(f) A person may request assistance in identifying community supports without
67.33participating in a complete assessment. Upon a request for assistance identifying
67.34community support, the person must be transferred or referred to long-term care options
67.35counseling services available under sections 256.975, subdivision 7, and 256.01,
67.36subdivision 24, for telephone assistance and follow up.
68.1    (g) The person has the right to make the final decision between institutional
68.2placement and community placement after the recommendations have been provided,
68.3except as provided in section 256.975, subdivision 4a, paragraph (c) 7a, paragraph (d).
68.4    (h) The lead agency must give the person receiving assessment or support planning,
68.5or the person's legal representative, materials, and forms supplied by the commissioner
68.6containing the following information:
68.7    (1) written recommendations for community-based services and consumer-directed
68.8options;
68.9(2) documentation that the most cost-effective alternatives available were offered to
68.10the individual. For purposes of this clause, "cost-effective" means community services and
68.11living arrangements that cost the same as or less than institutional care. For an individual
68.12found to meet eligibility criteria for home and community-based service programs under
68.13section 256B.0915 or 256B.49, "cost-effectiveness" has the meaning found in the federally
68.14approved waiver plan for each program;
68.15(3) the need for and purpose of preadmission screening conducted by long-term care
68.16options counselors according to section 256.975, subdivisions 7a to 7c, if the person selects
68.17nursing facility placement. If the individual selects nursing facility placement, the lead
68.18agency shall forward information needed to complete the level of care determinations and
68.19screening for developmental disability and mental illness collected during the assessment
68.20to the long-term care options counselor using forms provided by the commissioner;
68.21    (4) the role of long-term care consultation assessment and support planning in
68.22eligibility determination for waiver and alternative care programs, and state plan home
68.23care, case management, and other services as defined in subdivision 1a, paragraphs (a),
68.24clause (7), and (b);
68.25    (5) information about Minnesota health care programs;
68.26    (6) the person's freedom to accept or reject the recommendations of the team;
68.27    (7) the person's right to confidentiality under the Minnesota Government Data
68.28Practices Act, chapter 13;
68.29    (8) the certified assessor's decision regarding the person's need for institutional level
68.30of care as determined under criteria established in section 256B.0911, subdivision 4a,
68.31paragraph (d) 4e, and the certified assessor's decision regarding eligibility for all services
68.32and programs as defined in subdivision 1a, paragraphs (a), clause (7), and (b); and
68.33    (9) the person's right to appeal the certified assessor's decision regarding eligibility
68.34for all services and programs as defined in subdivision 1a, paragraphs (a), clause (7), and
68.35(b), and incorporating the decision regarding the need for institutional level of care or the
69.1lead agency's final decisions regarding public programs eligibility according to section
69.2256.045, subdivision 3 .
69.3    (i) Face-to-face assessment completed as part of eligibility determination for
69.4the alternative care, elderly waiver, community alternatives for disabled individuals,
69.5community alternative care, and brain injury waiver programs under sections 256B.0913,
69.6256B.0915 , and 256B.49 is valid to establish service eligibility for no more than 60
69.7calendar days after the date of assessment.
69.8(j) The effective eligibility start date for programs in paragraph (i) can never be
69.9prior to the date of assessment. If an assessment was completed more than 60 days
69.10before the effective waiver or alternative care program eligibility start date, assessment
69.11and support plan information must be updated in a face-to-face visit and documented in
69.12the department's Medicaid Management Information System (MMIS). Notwithstanding
69.13retroactive medical assistance coverage of state plan services, the effective date of
69.14eligibility for programs included in paragraph (i) cannot be prior to the date the most
69.15recent updated assessment is completed.

69.16    Sec. 20. Minnesota Statutes 2012, section 256B.0911, subdivision 4d, is amended to
69.17read:
69.18    Subd. 4d. Preadmission screening of individuals under 65 years of age. (a)
69.19It is the policy of the state of Minnesota to ensure that individuals with disabilities or
69.20chronic illness are served in the most integrated setting appropriate to their needs and have
69.21the necessary information to make informed choices about home and community-based
69.22service options.
69.23    (b) Individuals under 65 years of age who are admitted to a Medicaid-certified
69.24 nursing facility from a hospital must be screened prior to admission as outlined in
69.25subdivisions 4a through 4c according to the requirements outlined in section 256.975,
69.26subdivisions 7a to 7c. This shall be provided by the Senior LinkAge Line as required
69.27under section 256.975, subdivision 7.
69.28    (c) Individuals under 65 years of age who are admitted to nursing facilities with
69.29only a telephone screening must receive a face-to-face assessment from the long-term
69.30care consultation team member of the county in which the facility is located or from the
69.31recipient's county case manager within 40 calendar days of admission.
69.32    (d) Individuals under 65 years of age who are admitted to a nursing facility
69.33without preadmission screening according to the exemption described in subdivision 4b,
69.34paragraph (a), clause (3), and who remain in the facility longer than 30 days must receive
69.35a face-to-face assessment within 40 days of admission.
70.1    (e) (d) At the face-to-face assessment, the long-term care consultation team member
70.2or county case manager must perform the activities required under subdivision 3b.
70.3    (f) (e) For individuals under 21 years of age, a screening interview which
70.4recommends nursing facility admission must be face-to-face and approved by the
70.5commissioner before the individual is admitted to the nursing facility.
70.6    (g) (f) In the event that an individual under 65 years of age is admitted to a nursing
70.7facility on an emergency basis, the county Senior LinkAge Line must be notified of
70.8the admission on the next working day, and a face-to-face assessment as described in
70.9paragraph (c) must be conducted within 40 calendar days of admission.
70.10    (h) (g) At the face-to-face assessment, the long-term care consultation team member
70.11or the case manager must present information about home and community-based options,
70.12including consumer-directed options, so the individual can make informed choices. If the
70.13individual chooses home and community-based services, the long-term care consultation
70.14team member or case manager must complete a written relocation plan within 20 working
70.15days of the visit. The plan shall describe the services needed to move out of the facility
70.16and a time line for the move which is designed to ensure a smooth transition to the
70.17individual's home and community.
70.18    (i) (h) An individual under 65 years of age residing in a nursing facility shall receive
70.19a face-to-face assessment at least every 12 months to review the person's service choices
70.20and available alternatives unless the individual indicates, in writing, that annual visits are
70.21not desired. In this case, the individual must receive a face-to-face assessment at least
70.22once every 36 months for the same purposes.
70.23    (j) (i) Notwithstanding the provisions of subdivision 6, the commissioner may pay
70.24county agencies directly for face-to-face assessments for individuals under 65 years of age
70.25who are being considered for placement or residing in a nursing facility.
70.26(j) Funding for preadmission screening follow-up shall be provided to the Disability
70.27Linkage Line for the under 60 population by the Department of Human Services to
70.28cover options counseling salaries and expenses to provide the services described in
70.29subdivisions 7a to 7c. The Disability Linkage Line shall employ, or contract with other
70.30agencies to employ, within the limits of available funding, sufficient personnel to provide
70.31preadmission screening follow-up services and shall seek to maximize federal funding for
70.32the service as provided under section 256.01, subdivision 2, paragraph (dd).
70.33EFFECTIVE DATE.This section is effective October 1, 2013.

70.34    Sec. 21. Minnesota Statutes 2012, section 256B.0911, is amended by adding a
70.35subdivision to read:
71.1    Subd. 4e. Determination of institutional level of care. The determination of the
71.2need for nursing facility, hospital, and intermediate care facility levels of care must be
71.3made according to criteria developed by the commissioner, and in section 256B.092,
71.4using forms developed by the commissioner. Effective January 1, 2014, for individuals
71.5age 21 and older, the determination of need for nursing facility level of care shall be
71.6based on criteria in section 144.0724, subdivision 11. For individuals under age 21, the
71.7determination of the need for nursing facility level of care must be made according to
71.8criteria developed by the commissioner until criteria in section 144.0724, subdivision 11,
71.9becomes effective on or after October 1, 2019.

71.10    Sec. 22. Minnesota Statutes 2012, section 256B.0911, subdivision 6, is amended to read:
71.11    Subd. 6. Payment for long-term care consultation services. (a) Until September
71.1230, 2013, payment for long-term care consultation face-to-face assessment shall be made
71.13as described in this subdivision.
71.14    (b) The total payment for each county must be paid monthly by certified nursing
71.15facilities in the county. The monthly amount to be paid by each nursing facility for each
71.16fiscal year must be determined by dividing the county's annual allocation for long-term
71.17care consultation services by 12 to determine the monthly payment and allocating the
71.18monthly payment to each nursing facility based on the number of licensed beds in the
71.19nursing facility. Payments to counties in which there is no certified nursing facility must be
71.20made by increasing the payment rate of the two facilities located nearest to the county seat.
71.21    (b) (c) The commissioner shall include the total annual payment determined under
71.22paragraph (a) for each nursing facility reimbursed under section 256B.431, 256B.434,
71.23or 256B.441.
71.24    (c) (d) In the event of the layaway, delicensure and decertification, or removal
71.25from layaway of 25 percent or more of the beds in a facility, the commissioner may
71.26adjust the per diem payment amount in paragraph (b) (c) and may adjust the monthly
71.27payment amount in paragraph (a) (b). The effective date of an adjustment made under this
71.28paragraph shall be on or after the first day of the month following the effective date of the
71.29layaway, delicensure and decertification, or removal from layaway.
71.30    (d) (e) Payments for long-term care consultation services are available to the county
71.31or counties to cover staff salaries and expenses to provide the services described in
71.32subdivision 1a. The county shall employ, or contract with other agencies to employ,
71.33within the limits of available funding, sufficient personnel to provide long-term care
71.34consultation services while meeting the state's long-term care outcomes and objectives as
71.35defined in subdivision 1. The county shall be accountable for meeting local objectives
72.1as approved by the commissioner in the biennial home and community-based services
72.2quality assurance plan on a form provided by the commissioner.
72.3    (e) (f) Notwithstanding section 256B.0641, overpayments attributable to payment
72.4of the screening costs under the medical assistance program may not be recovered from
72.5a facility.
72.6    (f) (g) The commissioner of human services shall amend the Minnesota medical
72.7assistance plan to include reimbursement for the local consultation teams.
72.8    (g) (h) Until the alternative payment methodology in paragraph (h) (i) is implemented,
72.9the county may bill, as case management services, assessments, support planning, and
72.10follow-along provided to persons determined to be eligible for case management under
72.11Minnesota health care programs. No individual or family member shall be charged for an
72.12initial assessment or initial support plan development provided under subdivision 3a or 3b.
72.13(h) (i) The commissioner shall develop an alternative payment methodology,
72.14effective on October 1, 2013, for long-term care consultation services that includes
72.15the funding available under this subdivision, and for assessments authorized under
72.16sections 256B.092 and 256B.0659. In developing the new payment methodology, the
72.17commissioner shall consider the maximization of other funding sources, including federal
72.18administrative reimbursement through federal financial participation funding, for all
72.19long-term care consultation and preadmission screening activity. The alternative payment
72.20methodology shall include the use of the appropriate time studies and the state financing
72.21of nonfederal share as part of the state's medical assistance program.

72.22    Sec. 23. Minnesota Statutes 2012, section 256B.0911, subdivision 7, is amended to read:
72.23    Subd. 7. Reimbursement for certified nursing facilities. (a) Medical assistance
72.24reimbursement for nursing facilities shall be authorized for a medical assistance recipient
72.25only if a preadmission screening has been conducted prior to admission or the county has
72.26authorized an exemption. Medical assistance reimbursement for nursing facilities shall
72.27not be provided for any recipient who the local screener has determined does not meet the
72.28level of care criteria for nursing facility placement in section 144.0724, subdivision 11, or,
72.29if indicated, has not had a level II OBRA evaluation as required under the federal Omnibus
72.30Budget Reconciliation Act of 1987 completed unless an admission for a recipient with
72.31mental illness is approved by the local mental health authority or an admission for a
72.32recipient with developmental disability is approved by the state developmental disability
72.33authority.
72.34    (b) The nursing facility must not bill a person who is not a medical assistance
72.35recipient for resident days that preceded the date of completion of screening activities
73.1as required under section 256.975, subdivisions 4a, 4b, and 4c 7a to 7c. The nursing
73.2facility must include unreimbursed resident days in the nursing facility resident day totals
73.3reported to the commissioner.

73.4    Sec. 24. Minnesota Statutes 2012, section 256B.0913, subdivision 4, is amended to read:
73.5    Subd. 4. Eligibility for funding for services for nonmedical assistance recipients.
73.6    (a) Funding for services under the alternative care program is available to persons who
73.7meet the following criteria:
73.8    (1) the person has been determined by a community assessment under section
73.9256B.0911 to be a person who would require the level of care provided in a nursing
73.10facility, as determined under section 256B.0911, subdivision 4a, paragraph (d) 4e, but for
73.11the provision of services under the alternative care program;
73.12    (2) the person is age 65 or older;
73.13    (3) the person would be eligible for medical assistance within 135 days of admission
73.14to a nursing facility;
73.15    (4) the person is not ineligible for the payment of long-term care services by the
73.16medical assistance program due to an asset transfer penalty under section 256B.0595 or
73.17equity interest in the home exceeding $500,000 as stated in section 256B.056;
73.18    (5) the person needs long-term care services that are not funded through other
73.19state or federal funding, or other health insurance or other third-party insurance such as
73.20long-term care insurance;
73.21    (6) except for individuals described in clause (7), the monthly cost of the alternative
73.22care services funded by the program for this person does not exceed 75 percent of the
73.23monthly limit described under section 256B.0915, subdivision 3a. This monthly limit
73.24does not prohibit the alternative care client from payment for additional services, but in no
73.25case may the cost of additional services purchased under this section exceed the difference
73.26between the client's monthly service limit defined under section 256B.0915, subdivision
73.273
, and the alternative care program monthly service limit defined in this paragraph. If
73.28care-related supplies and equipment or environmental modifications and adaptations are or
73.29will be purchased for an alternative care services recipient, the costs may be prorated on a
73.30monthly basis for up to 12 consecutive months beginning with the month of purchase.
73.31If the monthly cost of a recipient's other alternative care services exceeds the monthly
73.32limit established in this paragraph, the annual cost of the alternative care services shall be
73.33determined. In this event, the annual cost of alternative care services shall not exceed 12
73.34times the monthly limit described in this paragraph;
74.1    (7) for individuals assigned a case mix classification A as described under section
74.2256B.0915, subdivision 3a , paragraph (a), with (i) no dependencies in activities of daily
74.3living, or (ii) up to two dependencies in bathing, dressing, grooming, walking, and eating
74.4when the dependency score in eating is three or greater as determined by an assessment
74.5performed under section 256B.0911, the monthly cost of alternative care services funded
74.6by the program cannot exceed $593 per month for all new participants enrolled in
74.7the program on or after July 1, 2011. This monthly limit shall be applied to all other
74.8participants who meet this criteria at reassessment. This monthly limit shall be increased
74.9annually as described in section 256B.0915, subdivision 3a, paragraph (a). This monthly
74.10limit does not prohibit the alternative care client from payment for additional services, but
74.11in no case may the cost of additional services purchased exceed the difference between the
74.12client's monthly service limit defined in this clause and the limit described in clause (6)
74.13for case mix classification A; and
74.14(8) the person is making timely payments of the assessed monthly fee.
74.15A person is ineligible if payment of the fee is over 60 days past due, unless the person
74.16agrees to:
74.17    (i) the appointment of a representative payee;
74.18    (ii) automatic payment from a financial account;
74.19    (iii) the establishment of greater family involvement in the financial management of
74.20payments; or
74.21    (iv) another method acceptable to the lead agency to ensure prompt fee payments.
74.22    The lead agency may extend the client's eligibility as necessary while making
74.23arrangements to facilitate payment of past-due amounts and future premium payments.
74.24Following disenrollment due to nonpayment of a monthly fee, eligibility shall not be
74.25reinstated for a period of 30 days.
74.26    (b) Alternative care funding under this subdivision is not available for a person who
74.27is a medical assistance recipient or who would be eligible for medical assistance without a
74.28spenddown or waiver obligation. A person whose initial application for medical assistance
74.29and the elderly waiver program is being processed may be served under the alternative care
74.30program for a period up to 60 days. If the individual is found to be eligible for medical
74.31assistance, medical assistance must be billed for services payable under the federally
74.32approved elderly waiver plan and delivered from the date the individual was found eligible
74.33for the federally approved elderly waiver plan. Notwithstanding this provision, alternative
74.34care funds may not be used to pay for any service the cost of which: (i) is payable by
74.35medical assistance; (ii) is used by a recipient to meet a waiver obligation; or (iii) is used to
75.1pay a medical assistance income spenddown for a person who is eligible to participate in the
75.2federally approved elderly waiver program under the special income standard provision.
75.3    (c) Alternative care funding is not available for a person who resides in a licensed
75.4nursing home, certified boarding care home, hospital, or intermediate care facility, except
75.5for case management services which are provided in support of the discharge planning
75.6process for a nursing home resident or certified boarding care home resident to assist with
75.7a relocation process to a community-based setting.
75.8    (d) Alternative care funding is not available for a person whose income is greater
75.9than the maintenance needs allowance under section 256B.0915, subdivision 1d, but equal
75.10to or less than 120 percent of the federal poverty guideline effective July 1 in the fiscal
75.11year for which alternative care eligibility is determined, who would be eligible for the
75.12elderly waiver with a waiver obligation.

75.13    Sec. 25. Minnesota Statutes 2012, section 256B.0915, subdivision 5, is amended to read:
75.14    Subd. 5. Assessments and reassessments for waiver clients. (a) Each client
75.15shall receive an initial assessment of strengths, informal supports, and need for services
75.16in accordance with section 256B.0911, subdivisions 3, 3a, and 3b. A reassessment of a
75.17client served under the elderly waiver must be conducted at least every 12 months and at
75.18other times when the case manager determines that there has been significant change in
75.19the client's functioning. This may include instances where the client is discharged from
75.20the hospital. There must be a determination that the client requires nursing facility level
75.21of care as defined in section 256B.0911, subdivision 4a, paragraph (d) 4e, at initial and
75.22subsequent assessments to initiate and maintain participation in the waiver program.
75.23(b) Regardless of other assessments identified in section 144.0724, subdivision
75.244, as appropriate to determine nursing facility level of care for purposes of medical
75.25assistance payment for nursing facility services, only face-to-face assessments conducted
75.26according to section 256B.0911, subdivisions 3a and 3b, that result in a nursing facility
75.27level of care determination will be accepted for purposes of initial and ongoing access to
75.28waiver service payment.

75.29    Sec. 26. Minnesota Statutes 2012, section 256B.0917, is amended by adding a
75.30subdivision to read:
75.31    Subd. 1a. Home and community-based services for older adults. (a) The purpose
75.32of projects selected by the commissioner of human services under this section is to
75.33make strategic changes in the long-term services and supports system for older adults
75.34including statewide capacity for local service development and technical assistance, and
76.1statewide availability of home and community-based services for older adult services,
76.2caregiver support and respite care services, and other supports in the state of Minnesota.
76.3These projects are intended to create incentives for new and expanded home and
76.4community-based services in Minnesota in order to:
76.5(1) reach older adults early in the progression of their need for long-term services
76.6and supports, providing them with low-cost, high-impact services that will prevent or
76.7delay the use of more costly services;
76.8(2) support older adults to live in the most integrated, least restrictive community
76.9setting;
76.10(3) support the informal caregivers of older adults;
76.11(4) develop and implement strategies to integrate long-term services and supports
76.12with health care services, in order to improve the quality of care and enhance the quality
76.13of life of older adults and their informal caregivers;
76.14(5) ensure cost-effective use of financial and human resources;
76.15(6) build community-based approaches and community commitment to delivering
76.16long-term services and supports for older adults in their own homes;
76.17(7) achieve a broad awareness and use of lower-cost in-home services as an
76.18alternative to nursing homes and other residential services;
76.19(8) strengthen and develop additional home and community-based services and
76.20alternatives to nursing homes and other residential services; and
76.21(9) strengthen programs that use volunteers.
76.22(b) The services provided by these projects are available to older adults who are
76.23eligible for medical assistance and the elderly waiver under section 256B.0915, the
76.24alternative care program under section 256B.0913, or essential community supports grant
76.25under subdivision 14, paragraph (b), and to persons who have their own funds to pay for
76.26services.

76.27    Sec. 27. Minnesota Statutes 2012, section 256B.0917, is amended by adding a
76.28subdivision to read:
76.29    Subd. 1b. Definitions. (a) For purposes of this section, the following terms have
76.30the meanings given.
76.31(b) "Community" means a town; township; city; or targeted neighborhood within a
76.32city; or a consortium of towns, townships, cities, or specific neighborhoods within a city.
76.33(c) "Core home and community-based services provider" means a Faith in Action,
76.34Living at Home Block Nurse, Congregational Nurse, or similar community-based
76.35program governed by a board, the majority of whose members reside within the program's
77.1service area, that organizes and uses volunteers and paid staff to deliver nonmedical
77.2services intended to assist older adults to identify and manage risks and to maintain their
77.3community living and integration in the community.
77.4(d) "Eldercare development partnership" means a team of representatives of county
77.5social service and public health agencies, the area agency on aging, local nursing home
77.6providers, local home care providers, and other appropriate home and community-based
77.7providers in the area agency's planning and service area.
77.8(e) "Long-term services and supports" means any service available under the
77.9elderly waiver program or alternative care grant programs, nursing facility services,
77.10transportation services, caregiver support and respite care services, and other home and
77.11community-based services identified as necessary either to maintain lifestyle choices for
77.12older adults or to support them to remain in their own home.
77.13(f) "Older adult" refers to an individual who is 65 years of age or older.

77.14    Sec. 28. Minnesota Statutes 2012, section 256B.0917, is amended by adding a
77.15subdivision to read:
77.16    Subd. 1c. Eldercare development partnerships. The commissioner of human
77.17services shall select and contract with eldercare development partnerships sufficient to
77.18provide statewide availability of service development and technical assistance using a
77.19request for proposals process. Eldercare development partnerships shall:
77.20(1) develop a local long-term services and supports strategy consistent with state
77.21goals and objectives;
77.22(2) identify and use existing local skills, knowledge, and relationships, and build
77.23on these assets;
77.24(3) coordinate planning for funds to provide services to older adults, including funds
77.25received under Title III of the Older Americans Act, Title XX of the Social Security Act,
77.26and the Local Public Health Act;
77.27(4) target service development and technical assistance where nursing facility
77.28closures have occurred or are occurring or in areas where service needs have been
77.29identified through activities under section 144A.351;
77.30(5) provide sufficient staff for development and technical support in its designated
77.31area; and
77.32(6) designate a single public or nonprofit member of the eldercare development
77.33partnerships to apply grant funding and manage the project.

77.34    Sec. 29. Minnesota Statutes 2012, section 256B.0917, subdivision 6, is amended to read:
78.1    Subd. 6. Caregiver support and respite care projects. (a) The commissioner
78.2shall establish up to 36 projects to expand the respite care network in the state and to
78.3support caregivers in their responsibilities for care. The purpose of each project shall
78.4be to availability of caregiver support and respite care services for family and other
78.5caregivers. The commissioner shall use a request for proposals to select nonprofit entities
78.6to administer the projects. Projects shall:
78.7(1) establish a local coordinated network of volunteer and paid respite workers;
78.8(2) coordinate assignment of respite workers care services to clients and care
78.9receivers and assure the health and safety of the client; and caregivers of older adults;
78.10(3) provide training for caregivers and ensure that support groups are available
78.11in the community.
78.12(b) The caregiver support and respite care funds shall be available to the four to six
78.13local long-term care strategy projects designated in subdivisions 1 to 5.
78.14(c) The commissioner shall publish a notice in the State Register to solicit proposals
78.15from public or private nonprofit agencies for the projects not included in the four to six
78.16local long-term care strategy projects defined in subdivision 2. A county agency may,
78.17alone or in combination with other county agencies, apply for caregiver support and
78.18respite care project funds. A public or nonprofit agency within a designated SAIL project
78.19area may apply for project funds if the agency has a letter of agreement with the county
78.20or counties in which services will be developed, stating the intention of the county or
78.21counties to coordinate their activities with the agency requesting a grant.
78.22(d) The commissioner shall select grantees based on the following criteria:
78.23(1) the ability of the proposal to demonstrate need in the area served, as evidenced
78.24by a community needs assessment or other demographic data;
78.25(2) the ability of the proposal to clearly describe how the project
78.26(3) assure the health and safety of the older adults;
78.27(4) identify at-risk caregivers;
78.28(5) provide information, education, and training for caregivers in the designated
78.29community; and
78.30(6) demonstrate the need in the proposed service area particularly where nursing
78.31facility closures have occurred or are occurring or areas with service needs identified
78.32by section 144A.351. Preference must be given for projects that reach underserved
78.33populations.
78.34(b) Projects must clearly describe:
78.35(1) how they will achieve the their purpose defined in paragraph (b);
78.36(3) the ability of the proposal to reach underserved populations;
79.1(4) the ability of the proposal to demonstrate community commitment to the project,
79.2as evidenced by letters of support and cooperation as well as formation of a community
79.3task force;
79.4(5) the ability of the proposal to clearly describe (2) the process for recruiting,
79.5training, and retraining volunteers; and
79.6(6) the inclusion in the proposal of the (3) a plan to promote the project in the
79.7designated community, including outreach to persons needing the services.
79.8(e) (c) Funds for all projects under this subdivision may be used to:
79.9(1) hire a coordinator to develop a coordinated network of volunteer and paid respite
79.10care services and assign workers to clients;
79.11(2) recruit and train volunteer providers;
79.12(3) train provide information, training, and education to caregivers;
79.13(4) ensure the development of support groups for caregivers;
79.14(5) (4) advertise the availability of the caregiver support and respite care project; and
79.15(6) (5) purchase equipment to maintain a system of assigning workers to clients.
79.16(f) (d) Project funds may not be used to supplant existing funding sources.

79.17    Sec. 30. Minnesota Statutes 2012, section 256B.0917, is amended by adding a
79.18subdivision to read:
79.19    Subd. 7a. Core home and community-based services. The commissioner shall
79.20select and contract with core home and community-based services providers for projects
79.21to provide services and supports to older adults both with and without family and other
79.22informal caregivers using a request for proposals process. Projects must:
79.23(1) have a credible, public, or private nonprofit sponsor providing ongoing financial
79.24support;
79.25(2) have a specific, clearly defined geographic service area;
79.26(3) use a practice framework designed to identify high-risk older adults and help them
79.27take action to better manage their chronic conditions and maintain their community living;
79.28(4) have a team approach to coordination and care, ensuring that the older adult
79.29participants, their families, and the formal and informal providers are all part of planning
79.30and providing services;
79.31(5) provide information, support services, homemaking services, counseling, and
79.32training for the older adults and family caregivers;
79.33(6) encourage service area or neighborhood residents and local organizations to
79.34collaborate in meeting the needs of older adults in their geographic service areas;
80.1(7) recruit, train, and direct the use of volunteers to provide informal services and
80.2other appropriate support to older adults and their caregivers; and
80.3(8) provide coordination and management of formal and informal services to older
80.4adults and their families using less expensive alternatives.

80.5    Sec. 31. Minnesota Statutes 2012, section 256B.0917, subdivision 13, is amended to
80.6read:
80.7    Subd. 13. Community service grants. The commissioner shall award contracts
80.8for grants to public and private nonprofit agencies to establish services that strengthen
80.9a community's ability to provide a system of home and community-based services
80.10for elderly persons. The commissioner shall use a request for proposal process. The
80.11commissioner shall give preference when awarding grants under this section to areas
80.12where nursing facility closures have occurred or are occurring or to areas with service
80.13needs identified under section 144A.351. The commissioner shall consider grants for:
80.14(1) caregiver support and respite care projects under subdivision 6;
80.15(2) the living-at-home/block nurse grant under subdivisions 7 to 10; and
80.16(3) services identified as needed for community transition.

80.17    Sec. 32. Minnesota Statutes 2012, section 256B.439, subdivision 3, is amended to read:
80.18    Subd. 3. Consumer surveys of nursing facilities residents. Following
80.19identification of the quality measurement tool, the commissioners shall conduct surveys
80.20of long-term care service consumers of nursing facilities to develop quality profiles
80.21of providers. To the extent possible, surveys must be conducted face-to-face by state
80.22employees or contractors. At the discretion of the commissioners, surveys may be
80.23conducted by telephone or by provider staff. Surveys must be conducted periodically to
80.24update quality profiles of individual service nursing facilities providers.

80.25    Sec. 33. Minnesota Statutes 2012, section 256B.439, is amended by adding a
80.26subdivision to read:
80.27    Subd. 3a. Home and community-based services report card in cooperation with
80.28the commissioner of health. The commissioner shall work with existing Department
80.29of Human Services advisory groups to develop recommendations for a home and
80.30community-based services report card. Health and human services staff that regulate
80.31home and community-based services as provided in chapter 245D and licensed home care
80.32as provided in chapter 144A shall be consulted. The advisory groups shall consider the
80.33requirements from the Minnesota consumer information guide under section 144G.06 as a
81.1base for development of the home and community-based services report card to compare
81.2the housing options available to consumers. Other items to be considered by the advisory
81.3groups in developing recommendations include:
81.4(1) defining the goals of the report card, including measuring outcomes, providing
81.5consumer information, and defining vehicle-for-pay performance;
81.6(2) developing separate measures for programs for the elderly population and for
81.7persons with disabilities;
81.8(3) the sources of information needed that are standardized and contain sufficient data;
81.9(4) the financial support needed for creating and publicizing the housing information
81.10guide, and ongoing funding for data collection and staffing to monitor, report, and analyze;
81.11(5) a recognition that home and community-based services settings exist with
81.12significant variations in size, settings, and services available;
81.13(6) ensuring that consumer choice and consumer information is retained and valued;
81.14(7) the applicability of these measures to providers based on payor source, size,
81.15and population served; and
81.16(8) dissemination of quality profiles.
81.17The advisory groups shall discuss whether there are additional funding, resources,
81.18and research needed. The commissioner shall report recommendations to the chairs and
81.19ranking minority members of the legislative committees and divisions with jurisdiction
81.20over health and human services issues by August 1, 2014. The report card shall be
81.21available on July 1, 2015.

81.22    Sec. 34. Minnesota Statutes 2012, section 256B.439, subdivision 4, is amended to read:
81.23    Subd. 4. Dissemination of quality profiles. By July 1, 2003 2014, the
81.24commissioners shall implement a system public awareness effort to disseminate the quality
81.25profiles developed from consumer surveys using the quality measurement tool. Profiles
81.26may be disseminated to through the Senior LinkAge Line and Disability Linkage Line and
81.27to consumers, providers, and purchasers of long-term care services through all feasible
81.28printed and electronic outlets. The commissioners may conduct a public awareness
81.29campaign to inform potential users regarding profile contents and potential uses.

81.30    Sec. 35. Minnesota Statutes 2012, section 256B.441, subdivision 13, is amended to read:
81.31    Subd. 13. External fixed costs. "External fixed costs" means costs related to the
81.32nursing home surcharge under section 256.9657, subdivision 1; licensure fees under
81.33section 144.122; until September 30, 2013, long-term care consultation fees under
81.34section 256B.0911, subdivision 6; family advisory council fee under section 144A.33;
82.1scholarships under section 256B.431, subdivision 36; planned closure rate adjustments
82.2under section 256B.437; or single bed room incentives under section 256B.431,
82.3subdivision 42
; property taxes and property insurance; and PERA.

82.4    Sec. 36. Minnesota Statutes 2012, section 256B.441, subdivision 53, is amended to read:
82.5    Subd. 53. Calculation of payment rate for external fixed costs. The commissioner
82.6shall calculate a payment rate for external fixed costs.
82.7    (a) For a facility licensed as a nursing home, the portion related to section 256.9657
82.8shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
82.9home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
82.10result of its number of nursing home beds divided by its total number of licensed beds.
82.11    (b) The portion related to the licensure fee under section 144.122, paragraph (d),
82.12shall be the amount of the fee divided by actual resident days.
82.13    (c) The portion related to scholarships shall be determined under section 256B.431,
82.14subdivision 36.
82.15    (d) Until September 30, 2013, the portion related to long-term care consultation shall
82.16be determined according to section 256B.0911, subdivision 6.
82.17    (e) The portion related to development and education of resident and family advisory
82.18councils under section 144A.33 shall be $5 divided by 365.
82.19    (f) The portion related to planned closure rate adjustments shall be as determined
82.20under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436.
82.21Planned closure rate adjustments that take effect before October 1, 2014, shall no longer
82.22be included in the payment rate for external fixed costs beginning October 1, 2016.
82.23Planned closure rate adjustments that take effect on or after October 1, 2014, shall no
82.24longer be included in the payment rate for external fixed costs beginning on October 1 of
82.25the first year not less than two years after their effective date.
82.26    (g) The portions related to property insurance, real estate taxes, special assessments,
82.27and payments made in lieu of real estate taxes directly identified or allocated to the nursing
82.28facility shall be the actual amounts divided by actual resident days.
82.29    (h) The portion related to the Public Employees Retirement Association shall be
82.30actual costs divided by resident days.
82.31    (i) The single bed room incentives shall be as determined under section 256B.431,
82.32subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall
82.33no longer be included in the payment rate for external fixed costs beginning October 1,
82.342016. Single bed room incentives that take effect on or after October 1, 2014, shall no
83.1longer be included in the payment rate for external fixed costs beginning on October 1 of
83.2the first year not less than two years after their effective date.
83.3    (j) The payment rate for external fixed costs shall be the sum of the amounts in
83.4paragraphs (a) to (i).

83.5    Sec. 37. Minnesota Statutes 2012, section 256B.49, subdivision 12, is amended to read:
83.6    Subd. 12. Informed choice. Persons who are determined likely to require the level
83.7of care provided in a nursing facility as determined under section 256B.0911, subdivision
83.84e, or a hospital shall be informed of the home and community-based support alternatives
83.9to the provision of inpatient hospital services or nursing facility services. Each person
83.10must be given the choice of either institutional or home and community-based services
83.11using the provisions described in section 256B.77, subdivision 2, paragraph (p).

83.12    Sec. 38. Minnesota Statutes 2012, section 256B.49, subdivision 14, is amended to read:
83.13    Subd. 14. Assessment and reassessment. (a) Assessments and reassessments
83.14shall be conducted by certified assessors according to section 256B.0911, subdivision 2b.
83.15With the permission of the recipient or the recipient's designated legal representative,
83.16the recipient's current provider of services may submit a written report outlining their
83.17recommendations regarding the recipient's care needs prepared by a direct service
83.18employee with at least 20 hours of service to that client. The person conducting the
83.19assessment or reassessment must notify the provider of the date by which this information
83.20is to be submitted. This information shall be provided to the person conducting the
83.21assessment and the person or the person's legal representative and must be considered
83.22prior to the finalization of the assessment or reassessment.
83.23(b) There must be a determination that the client requires a hospital level of care or a
83.24nursing facility level of care as defined in section 256B.0911, subdivision 4a, paragraph
83.25(d) 4e, at initial and subsequent assessments to initiate and maintain participation in the
83.26waiver program.
83.27(c) Regardless of other assessments identified in section 144.0724, subdivision 4, as
83.28appropriate to determine nursing facility level of care for purposes of medical assistance
83.29payment for nursing facility services, only face-to-face assessments conducted according
83.30to section 256B.0911, subdivisions 3a, 3b, and 4d, that result in a hospital level of care
83.31determination or a nursing facility level of care determination must be accepted for
83.32purposes of initial and ongoing access to waiver services payment.
84.1(d) Recipients who are found eligible for home and community-based services under
84.2this section before their 65th birthday may remain eligible for these services after their
84.365th birthday if they continue to meet all other eligibility factors.
84.4(e) The commissioner shall develop criteria to identify recipients whose level of
84.5functioning is reasonably expected to improve and reassess these recipients to establish
84.6a baseline assessment. Recipients who meet these criteria must have a comprehensive
84.7transitional service plan developed under subdivision 15, paragraphs (b) and (c), and be
84.8reassessed every six months until there has been no significant change in the recipient's
84.9functioning for at least 12 months. After there has been no significant change in the
84.10recipient's functioning for at least 12 months, reassessments of the recipient's strengths,
84.11informal support systems, and need for services shall be conducted at least every 12
84.12months and at other times when there has been a significant change in the recipient's
84.13functioning. Counties, case managers, and service providers are responsible for
84.14conducting these reassessments and shall complete the reassessments out of existing funds.

84.15    Sec. 39. Minnesota Statutes 2012, section 256B.69, subdivision 8, is amended to read:
84.16    Subd. 8. Preadmission screening waiver. Except as applicable to the project's
84.17operation, the provisions of section sections 256.975 and 256B.0911 are waived for the
84.18purposes of this section for recipients enrolled with demonstration providers or in the
84.19prepaid medical assistance program for seniors.

84.20    Sec. 40. Minnesota Statutes 2012, section 256I.05, is amended by adding a subdivision
84.21to read:
84.22    Subd. 1o. Supplementary service rate; exemptions. A county agency shall not
84.23negotiate a supplementary service rate under this section for any individual that has been
84.24determined to be eligible for Housing Stability Services as approved by the Centers
84.25for Medicare and Medicaid Services, and who resides in an establishment voluntarily
84.26registered under section 144D.025, as a supportive housing establishment or participates
84.27in the Minnesota supportive housing demonstration program under section 256I.04,
84.28subdivision 3, paragraph (a), clause (4).

84.29    Sec. 41. Minnesota Statutes 2012, section 626.557, subdivision 4, is amended to read:
84.30    Subd. 4. Reporting. (a) Except as provided in paragraph (b), a mandated reporter
84.31shall immediately make an oral report to the common entry point. The common entry
84.32point may accept electronic reports submitted through a Web-based reporting system
84.33established by the commissioner. Use of a telecommunications device for the deaf or other
85.1similar device shall be considered an oral report. The common entry point may not require
85.2written reports. To the extent possible, the report must be of sufficient content to identify
85.3the vulnerable adult, the caregiver, the nature and extent of the suspected maltreatment,
85.4any evidence of previous maltreatment, the name and address of the reporter, the time,
85.5date, and location of the incident, and any other information that the reporter believes
85.6might be helpful in investigating the suspected maltreatment. A mandated reporter may
85.7disclose not public data, as defined in section 13.02, and medical records under sections
85.8144.291 to 144.298, to the extent necessary to comply with this subdivision.
85.9(b) A boarding care home that is licensed under sections 144.50 to 144.58 and
85.10certified under Title 19 of the Social Security Act, a nursing home that is licensed under
85.11section 144A.02 and certified under Title 18 or Title 19 of the Social Security Act, or a
85.12hospital that is licensed under sections 144.50 to 144.58 and has swing beds certified under
85.13Code of Federal Regulations, title 42, section 482.66, may submit a report electronically
85.14to the common entry point instead of submitting an oral report. The report may be a
85.15duplicate of the initial report the facility submits electronically to the commissioner of
85.16health to comply with the reporting requirements under Code of Federal Regulations, title
85.1742, section 483.13. The commissioner of health may modify these reporting requirements
85.18to include items required under paragraph (a) that are not currently included in the
85.19electronic reporting form.
85.20EFFECTIVE DATE.This section is effective July 1, 2014.

85.21    Sec. 42. Minnesota Statutes 2012, section 626.557, subdivision 9, is amended to read:
85.22    Subd. 9. Common entry point designation. (a) Each county board shall designate
85.23a common entry point for reports of suspected maltreatment. Two or more county boards
85.24may jointly designate a single The commissioner of human services shall establish a
85.25 common entry point effective July 1, 2014. The common entry point is the unit responsible
85.26for receiving the report of suspected maltreatment under this section.
85.27(b) The common entry point must be available 24 hours per day to take calls from
85.28reporters of suspected maltreatment. The common entry point shall use a standard intake
85.29form that includes:
85.30(1) the time and date of the report;
85.31(2) the name, address, and telephone number of the person reporting;
85.32(3) the time, date, and location of the incident;
85.33(4) the names of the persons involved, including but not limited to, perpetrators,
85.34alleged victims, and witnesses;
85.35(5) whether there was a risk of imminent danger to the alleged victim;
86.1(6) a description of the suspected maltreatment;
86.2(7) the disability, if any, of the alleged victim;
86.3(8) the relationship of the alleged perpetrator to the alleged victim;
86.4(9) whether a facility was involved and, if so, which agency licenses the facility;
86.5(10) any action taken by the common entry point;
86.6(11) whether law enforcement has been notified;
86.7(12) whether the reporter wishes to receive notification of the initial and final
86.8reports; and
86.9(13) if the report is from a facility with an internal reporting procedure, the name,
86.10mailing address, and telephone number of the person who initiated the report internally.
86.11(c) The common entry point is not required to complete each item on the form prior
86.12to dispatching the report to the appropriate lead investigative agency.
86.13(d) The common entry point shall immediately report to a law enforcement agency
86.14any incident in which there is reason to believe a crime has been committed.
86.15(e) If a report is initially made to a law enforcement agency or a lead investigative
86.16agency, those agencies shall take the report on the appropriate common entry point intake
86.17forms and immediately forward a copy to the common entry point.
86.18(f) The common entry point staff must receive training on how to screen and
86.19dispatch reports efficiently and in accordance with this section.
86.20(g) The commissioner of human services shall maintain a centralized database
86.21for the collection of common entry point data, lead investigative agency data including
86.22maltreatment report disposition, and appeals data. The common entry point shall
86.23have access to the centralized database and must log the reports into the database and
86.24immediately identify and locate prior reports of abuse, neglect, or exploitation.
86.25(h) When appropriate, the common entry point staff must refer calls that do not
86.26allege the abuse, neglect, or exploitation of a vulnerable adult to other organizations
86.27that might resolve the reporter's concerns.
86.28(i) a common entry point must be operated in a manner that enables the
86.29commissioner of human services to:
86.30(1) track critical steps in the reporting, evaluation, referral, response, disposition,
86.31and investigative process to ensure compliance with all requirements for all reports;
86.32(2) maintain data to facilitate the production of aggregate statistical reports for
86.33monitoring patterns of abuse, neglect, or exploitation;
86.34(3) serve as a resource for the evaluation, management, and planning of preventative
86.35and remedial services for vulnerable adults who have been subject to abuse, neglect,
86.36or exploitation;
87.1(4) set standards, priorities, and policies to maximize the efficiency and effectiveness
87.2of the common entry point; and
87.3(5) track and manage consumer complaints related to the common entry point.
87.4(j) The commissioners of human services and health shall collaborate on the
87.5creation of a system for referring reports to the lead investigative agencies. This system
87.6shall enable the commissioner of human services to track critical steps in the reporting,
87.7evaluation, referral, response, disposition, investigation, notification, determination, and
87.8appeal processes.

87.9    Sec. 43. Minnesota Statutes 2012, section 626.557, subdivision 9e, is amended to read:
87.10    Subd. 9e. Education requirements. (a) The commissioners of health, human
87.11services, and public safety shall cooperate in the development of a joint program for
87.12education of lead investigative agency investigators in the appropriate techniques for
87.13investigation of complaints of maltreatment. This program must be developed by July
87.141, 1996. The program must include but need not be limited to the following areas: (1)
87.15information collection and preservation; (2) analysis of facts; (3) levels of evidence; (4)
87.16conclusions based on evidence; (5) interviewing skills, including specialized training to
87.17interview people with unique needs; (6) report writing; (7) coordination and referral
87.18to other necessary agencies such as law enforcement and judicial agencies; (8) human
87.19relations and cultural diversity; (9) the dynamics of adult abuse and neglect within family
87.20systems and the appropriate methods for interviewing relatives in the course of the
87.21assessment or investigation; (10) the protective social services that are available to protect
87.22alleged victims from further abuse, neglect, or financial exploitation; (11) the methods by
87.23which lead investigative agency investigators and law enforcement workers cooperate in
87.24conducting assessments and investigations in order to avoid duplication of efforts; and
87.25(12) data practices laws and procedures, including provisions for sharing data.
87.26(b) The commissioner of human services shall conduct an outreach campaign to
87.27promote the common entry point for reporting vulnerable adult maltreatment. This
87.28campaign shall use the Internet and other means of communication.
87.29(b) (c) The commissioners of health, human services, and public safety shall offer at
87.30least annual education to others on the requirements of this section, on how this section is
87.31implemented, and investigation techniques.
87.32(c) (d) The commissioner of human services, in coordination with the commissioner
87.33of public safety shall provide training for the common entry point staff as required in this
87.34subdivision and the program courses described in this subdivision, at least four times
87.35per year. At a minimum, the training shall be held twice annually in the seven-county
88.1metropolitan area and twice annually outside the seven-county metropolitan area. The
88.2commissioners shall give priority in the program areas cited in paragraph (a) to persons
88.3currently performing assessments and investigations pursuant to this section.
88.4(d) (e) The commissioner of public safety shall notify in writing law enforcement
88.5personnel of any new requirements under this section. The commissioner of public
88.6safety shall conduct regional training for law enforcement personnel regarding their
88.7responsibility under this section.
88.8(e) (f) Each lead investigative agency investigator must complete the education
88.9program specified by this subdivision within the first 12 months of work as a lead
88.10investigative agency investigator.
88.11A lead investigative agency investigator employed when these requirements take
88.12effect must complete the program within the first year after training is available or as soon
88.13as training is available.
88.14All lead investigative agency investigators having responsibility for investigation
88.15duties under this section must receive a minimum of eight hours of continuing education
88.16or in-service training each year specific to their duties under this section.

88.17    Sec. 44. FEDERAL APPROVAL.
88.18This article is contingent on federal approval.

88.19    Sec. 45. REPEALER.
88.20(a) Minnesota Statutes 2012, sections 245A.655; and 256B.0917, subdivisions 1, 2,
88.213, 4, 5, 7, 8, 9, 10, 11, and 12, are repealed.
88.22(b) Minnesota Statutes 2012, section 256B.0911, subdivisions 4a, 4b, and 4c, are
88.23repealed effective October 1, 2013.

88.24ARTICLE 3
88.25SAFE AND HEALTHY DEVELOPMENT OF CHILDREN,
88.26YOUTH, AND FAMILIES

88.27    Section 1. Minnesota Statutes 2012, section 119B.011, is amended by adding a
88.28subdivision to read:
88.29    Subd. 19b. Student parent. "Student parent" means a person who is:
88.30(1) under 21 years of age and has a child;
88.31(2) pursuing a high school or general equivalency diploma;
88.32(3) residing within a county that has a basic sliding fee waiting list under section
88.33119B.03, subdivision 4; and
88.34(4) not an MFIP participant.
89.1EFFECTIVE DATE.This section is effective November 11, 2013.

89.2    Sec. 2. Minnesota Statutes 2012, section 119B.02, is amended by adding a subdivision
89.3to read:
89.4    Subd. 7. Child care market rate survey. Biennially, the commissioner shall survey
89.5prices charged by child care providers in Minnesota to determine the 75th percentile for
89.6like-care arrangements in county price clusters.
89.7EFFECTIVE DATE.This section is effective February 3, 2014.

89.8    Sec. 3. Minnesota Statutes 2012, section 119B.025, subdivision 1, is amended to read:
89.9    Subdivision 1. Factors which must be verified. (a) The county shall verify the
89.10following at all initial child care applications using the universal application:
89.11(1) identity of adults;
89.12(2) presence of the minor child in the home, if questionable;
89.13(3) relationship of minor child to the parent, stepparent, legal guardian, eligible
89.14relative caretaker, or the spouses of any of the foregoing;
89.15(4) age;
89.16(5) immigration status, if related to eligibility;
89.17(6) Social Security number, if given;
89.18(7) income;
89.19(8) spousal support and child support payments made to persons outside the
89.20household;
89.21(9) residence; and
89.22(10) inconsistent information, if related to eligibility.
89.23(b) If a family did not use the universal application or child care addendum to apply
89.24for child care assistance, the family must complete the universal application or child care
89.25addendum at its next eligibility redetermination and the county must verify the factors
89.26listed in paragraph (a) as part of that redetermination. Once a family has completed a
89.27universal application or child care addendum, the county shall use the redetermination
89.28form described in paragraph (c) for that family's subsequent redeterminations. Eligibility
89.29must be redetermined at least every six months. A family is considered to have met the
89.30eligibility redetermination requirement if a complete redetermination form and all required
89.31verifications are received within 30 days after the date the form was due. Assistance shall
89.32be payable retroactively from the redetermination due date. For a family where at least
89.33one parent is under the age of 21, does not have a high school or general equivalency
89.34diploma, and is a student in a school district or another similar program that provides or
90.1arranges for child care, as well as parenting, social services, career and employment
90.2supports, and academic support to achieve high school graduation, the redetermination of
90.3eligibility shall be deferred beyond six months, but not to exceed 12 months, to the end of
90.4the student's school year. If a family reports a change in an eligibility factor before the
90.5family's next regularly scheduled redetermination, the county must recalculate eligibility
90.6without requiring verification of any eligibility factor that did not change.
90.7(c) The commissioner shall develop a redetermination form to redetermine eligibility
90.8and a change report form to report changes that minimize paperwork for the county and
90.9the participant.
90.10EFFECTIVE DATE.This section is effective August 4, 2014.

90.11    Sec. 4. Minnesota Statutes 2012, section 119B.03, subdivision 4, is amended to read:
90.12    Subd. 4. Funding priority. (a) First priority for child care assistance under the
90.13basic sliding fee program must be given to eligible non-MFIP families who do not have a
90.14high school or general equivalency diploma or who need remedial and basic skill courses
90.15in order to pursue employment or to pursue education leading to employment and who
90.16need child care assistance to participate in the education program. This includes student
90.17parents as defined under section 119B.011, subdivision 19b. Within this priority, the
90.18following subpriorities must be used:
90.19(1) child care needs of minor parents;
90.20(2) child care needs of parents under 21 years of age; and
90.21(3) child care needs of other parents within the priority group described in this
90.22paragraph.
90.23(b) Second priority must be given to parents who have completed their MFIP or
90.24DWP transition year, or parents who are no longer receiving or eligible for diversionary
90.25work program supports.
90.26(c) Third priority must be given to families who are eligible for portable basic sliding
90.27fee assistance through the portability pool under subdivision 9.
90.28(d) Fourth priority must be given to families in which at least one parent is a veteran
90.29as defined under section 197.447.
90.30(e) Families under paragraph (b) must be added to the basic sliding fee waiting list
90.31on the date they begin the transition year under section 119B.011, subdivision 20, and
90.32must be moved into the basic sliding fee program as soon as possible after they complete
90.33their transition year.
90.34EFFECTIVE DATE.This section is effective November 11, 2013.

91.1    Sec. 5. Minnesota Statutes 2012, section 119B.05, subdivision 1, is amended to read:
91.2    Subdivision 1. Eligible participants. Families eligible for child care assistance
91.3under the MFIP child care program are:
91.4    (1) MFIP participants who are employed or in job search and meet the requirements
91.5of section 119B.10;
91.6    (2) persons who are members of transition year families under section 119B.011,
91.7subdivision 20
, and meet the requirements of section 119B.10;
91.8    (3) families who are participating in employment orientation or job search, or
91.9other employment or training activities that are included in an approved employability
91.10development plan under section 256J.95;
91.11    (4) MFIP families who are participating in work job search, job support,
91.12employment, or training activities as required in their employment plan, or in appeals,
91.13hearings, assessments, or orientations according to chapter 256J;
91.14    (5) MFIP families who are participating in social services activities under chapter
91.15256J as required in their employment plan approved according to chapter 256J;
91.16    (6) families who are participating in services or activities that are included in an
91.17approved family stabilization plan under section 256J.575;
91.18    (7) families who are participating in programs as required in tribal contracts under
91.19section 119B.02, subdivision 2, or 256.01, subdivision 2; and
91.20    (8) families who are participating in the transition year extension under section
91.21119B.011, subdivision 20a; and
91.22(9) student parents as defined under section 119B.011, subdivision 19b.
91.23EFFECTIVE DATE.This section is effective November 11, 2013.

91.24    Sec. 6. Minnesota Statutes 2012, section 119B.13, subdivision 1, is amended to read:
91.25    Subdivision 1. Subsidy restrictions. (a) Beginning October 31, 2011 February 3,
91.262014, the maximum rate paid for child care assistance in any county or multicounty region
91.27 county price cluster under the child care fund shall be the rate for like-care arrangements in
91.28the county effective July 1, 2006, decreased by 2.5 percent greater of the 25th percentile of
91.29the 2011 child care provider rate survey or the maximum rate effective November 28, 2011.
91.30The commissioner may: (1) assign a county with no reported provider prices to a similar
91.31price cluster; and (2) consider county level access when determining final price clusters.
91.32    (b) Biennially, beginning in 2012, the commissioner shall survey rates charged
91.33by child care providers in Minnesota to determine the 75th percentile for like-care
91.34arrangements in counties. When the commissioner determines that, using the
91.35commissioner's established protocol, the number of providers responding to the survey is
92.1too small to determine the 75th percentile rate for like-care arrangements in a county or
92.2multicounty region, the commissioner may establish the 75th percentile maximum rate
92.3based on like-care arrangements in a county, region, or category that the commissioner
92.4deems to be similar.
92.5    (c) (b) A rate which includes a special needs rate paid under subdivision 3 or under a
92.6school readiness service agreement paid under section 119B.231, may be in excess of the
92.7maximum rate allowed under this subdivision.
92.8    (d) (c) The department shall monitor the effect of this paragraph on provider rates.
92.9The county shall pay the provider's full charges for every child in care up to the maximum
92.10established. The commissioner shall determine the maximum rate for each type of care
92.11on an hourly, full-day, and weekly basis, including special needs and disability care. The
92.12maximum payment to a provider for one day of care must not exceed the daily rate. The
92.13maximum payment to a provider for one week of care must not exceed the weekly rate.
92.14(e) (d) Child care providers receiving reimbursement under this chapter must not
92.15be paid activity fees or an additional amount above the maximum rates for care provided
92.16during nonstandard hours for families receiving assistance.
92.17    (f) (e) When the provider charge is greater than the maximum provider rate allowed,
92.18the parent is responsible for payment of the difference in the rates in addition to any
92.19family co-payment fee.
92.20    (g) (f) All maximum provider rates changes shall be implemented on the Monday
92.21following the effective date of the maximum provider rate.
92.22    (g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum
92.23registration fees in effect on January 1, 2013, shall remain in effect.

92.24    Sec. 7. Minnesota Statutes 2012, section 119B.13, subdivision 1a, is amended to read:
92.25    Subd. 1a. Legal nonlicensed family child care provider rates. (a) Legal
92.26nonlicensed family child care providers receiving reimbursement under this chapter must
92.27be paid on an hourly basis for care provided to families receiving assistance.
92.28(b) The maximum rate paid to legal nonlicensed family child care providers must be
92.2968 percent of the county maximum hourly rate for licensed family child care providers. In
92.30counties or county price clusters where the maximum hourly rate for licensed family child
92.31care providers is higher than the maximum weekly rate for those providers divided by 50,
92.32the maximum hourly rate that may be paid to legal nonlicensed family child care providers
92.33is the rate equal to the maximum weekly rate for licensed family child care providers
92.34divided by 50 and then multiplied by 0.68. The maximum payment to a provider for one
93.1day of care must not exceed the maximum hourly rate times ten. The maximum payment
93.2to a provider for one week of care must not exceed the maximum hourly rate times 50.
93.3(c) A rate which includes a special needs rate paid under subdivision 3 may be in
93.4excess of the maximum rate allowed under this subdivision.
93.5(d) Legal nonlicensed family child care providers receiving reimbursement under
93.6this chapter may not be paid registration fees for families receiving assistance.
93.7EFFECTIVE DATE.This section is effective February 3, 2014.

93.8    Sec. 8. Minnesota Statutes 2012, section 119B.13, subdivision 3a, is amended to read:
93.9    Subd. 3a. Provider rate differential for accreditation. A family child care
93.10provider or child care center shall be paid a 15 percent differential above the maximum
93.11rate established in subdivision 1, up to the actual provider rate, if the provider or center
93.12holds a current early childhood development credential or is accredited. For a family
93.13child care provider, early childhood development credential and accreditation includes
93.14an individual who has earned a child development associate degree, a child development
93.15associate credential, a diploma in child development from a Minnesota state technical
93.16college, or a bachelor's or post baccalaureate degree in early childhood education from
93.17an accredited college or university, or who is accredited by the National Association for
93.18Family Child Care or the Competency Based Training and Assessment Program. For a
93.19child care center, accreditation includes accreditation that meets the following criteria:
93.20the accrediting organization must demonstrate the use of standards that promote the
93.21physical, social, emotional, and cognitive development of children. The accreditation
93.22standards shall include, but are not limited to, positive interactions between adults and
93.23children, age-appropriate learning activities, a system of tracking children's learning,
93.24use of assessment to meet children's needs, specific qualifications for staff, a learning
93.25environment that supports developmentally appropriate experiences for children, health
93.26and safety requirements, and family engagement strategies. The commissioner of human
93.27services, in conjunction with the commissioners of education and health, will develop an
93.28application and approval process based on the criteria in this section and any additional
93.29criteria. The process developed by the commissioner of human services must address
93.30periodic reassessment of approved accreditations. The commissioner of human services
93.31must report the criteria developed, the application, approval, and reassessment processes,
93.32and any additional recommendations by February 15, 2013, to the chairs and ranking
93.33minority members of the legislative committees having jurisdiction over early childhood
93.34issues. Based on an application process developed by the commissioner in conjunction
93.35with the commissioners of education and health, the Department of Human Services must
94.1accept applications from accrediting organizations beginning on July 1, 2013, and on an
94.2annual basis thereafter. The provider rate differential shall be paid to centers holding an
94.3accreditation from an approved accrediting organization beginning on a billing cycle to be
94.4determined by the commissioner, no later than the last Monday in February of a calendar
94.5year. The commissioner shall annually publish a list of approved accrediting organizations.
94.6An approved accreditation must be reassessed by the commissioner every two years. If an
94.7approved accrediting organization is determined to no longer meet the approval criteria, the
94.8organization and centers being paid the differential under that accreditation must be given
94.9a 90-day notice by the commissioner and the differential payment must end after a 15-day
94.10notice to affected families and centers as directed in Minnesota Rules, part 3400.0185,
94.11subparts 3 and 4. The following accreditations shall be recognized for the provider rate
94.12differential until an approval process is implemented: the National Association for the
94.13Education of Young Children, the Council on Accreditation, the National Early Childhood
94.14Program Accreditation, the National School-Age Care Association, or the National Head
94.15Start Association Program of Excellence. For Montessori programs, accreditation includes
94.16the American Montessori Society, Association of Montessori International-USA, or the
94.17National Center for Montessori Education.

94.18    Sec. 9. Minnesota Statutes 2012, section 119B.13, is amended by adding a subdivision
94.19to read:
94.20    Subd. 3b. Provider rate differential for Parent Aware. A family child care
94.21provider or child care center shall be paid a 15 percent differential if they hold a three-star
94.22Parent Aware rating or a 20 percent differential if they hold a four-star Parent Aware
94.23rating. A 15 percent or 20 percent rate differential must be paid above the maximum rate
94.24established in subdivision 1, up to the actual provider rate.
94.25EFFECTIVE DATE.This section is effective March 3, 2014.

94.26    Sec. 10. Minnesota Statutes 2012, section 119B.13, is amended by adding a subdivision
94.27to read:
94.28    Subd. 3c. Weekly rate paid for children attending high-quality care. A licensed
94.29child care provider or license-exempt center may be paid up to the applicable weekly
94.30maximum rate, not to exceed the provider's actual charge, when the following conditions
94.31are met:
94.32(1) the child is age birth to five years, but not yet in kindergarten;
94.33(2) the child attends a child care provider that qualifies for the rate differential
94.34identified in subdivision 3a or 3b; and
95.1(3) the applicant's activities qualify for at least 30 hours of care per week under
95.2sections 119B.03, 119B.05, 119B.10, and Minnesota Rules, chapter 3400.
95.3EFFECTIVE DATE.This section is effective August 4, 2014.

95.4    Sec. 11. Minnesota Statutes 2012, section 119B.13, subdivision 6, is amended to read:
95.5    Subd. 6. Provider payments. (a) The provider shall bill for services provided
95.6within ten days of the end of the service period. If bills are submitted within ten days of
95.7the end of the service period, payments under the child care fund shall be made within 30
95.8days of receiving a bill from the provider. Counties or the state may establish policies that
95.9make payments on a more frequent basis.
95.10(b) If a provider has received an authorization of care and been issued a billing form
95.11for an eligible family, the bill must be submitted within 60 days of the last date of service on
95.12the bill. A bill submitted more than 60 days after the last date of service must be paid if the
95.13county determines that the provider has shown good cause why the bill was not submitted
95.14within 60 days. Good cause must be defined in the county's child care fund plan under
95.15section 119B.08, subdivision 3, and the definition of good cause must include county error.
95.16Any bill submitted more than a year after the last date of service on the bill must not be paid.
95.17(c) If a provider provided care for a time period without receiving an authorization
95.18of care and a billing form for an eligible family, payment of child care assistance may only
95.19be made retroactively for a maximum of six months from the date the provider is issued
95.20an authorization of care and billing form.
95.21(d) A county may refuse to issue a child care authorization to a licensed or legal
95.22nonlicensed provider, revoke an existing child care authorization to a licensed or legal
95.23nonlicensed provider, stop payment issued to a licensed or legal nonlicensed provider, or
95.24refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:
95.25(1) the provider admits to intentionally giving the county materially false information
95.26on the provider's billing forms;
95.27(2) a county finds by a preponderance of the evidence that the provider intentionally
95.28gave the county materially false information on the provider's billing forms;
95.29(3) the provider is in violation of child care assistance program rules, until the
95.30agency determines those violations have been corrected;
95.31    (4) the provider is operating after receipt of an order of suspension or an order
95.32of revocation of the provider's license, or the provider has been issued an order citing
95.33violations of licensing standards that affect the health and safety of children in care due to
95.34the nature, chronicity, or severity of the licensing violations, until the licensing agency
95.35determines those violations have been corrected;
96.1(5) the provider submits false attendance reports or refuses to provide documentation
96.2of the child's attendance upon request; or
96.3(6) the provider gives false child care price information.
96.4The county may withhold the provider's authorization or payment for a period of
96.5time not to exceed three months beyond the time the condition has been corrected.
96.6(e) A county's payment policies must be included in the county's child care plan
96.7under section 119B.08, subdivision 3. If payments are made by the state, in addition to
96.8being in compliance with this subdivision, the payments must be made in compliance
96.9with section 16A.124.
96.10EFFECTIVE DATE.This section is effective February 3, 2014.

96.11    Sec. 12. Minnesota Statutes 2012, section 119B.13, subdivision 7, is amended to read:
96.12    Subd. 7. Absent days. (a) Licensed child care providers and license-exempt centers
96.13must not be reimbursed for more than ten 25 full-day absent days per child, excluding
96.14holidays, in a fiscal year, or for more than ten consecutive full-day absent days. Legal
96.15nonlicensed family child care providers must not be reimbursed for absent days. If a child
96.16attends for part of the time authorized to be in care in a day, but is absent for part of the
96.17time authorized to be in care in that same day, the absent time must be reimbursed but
96.18the time must not count toward the ten absent day days limit. Child care providers must
96.19only be reimbursed for absent days if the provider has a written policy for child absences
96.20and charges all other families in care for similar absences.
96.21(b) Notwithstanding paragraph (a), children with documented medical conditions
96.22that cause more frequent absences may exceed the 25 absent days limit, or ten consecutive
96.23full-day absent days limit. Absences due to a documented medical condition of a parent
96.24or sibling who lives in the same residence as the child receiving child care assistance
96.25do not count against the absent days limit in a fiscal year. Documentation of medical
96.26conditions must be on the forms and submitted according to the timelines established by
96.27the commissioner. A public health nurse or school nurse may verify the illness in lieu of
96.28a medical practitioner. If a provider sends a child home early due to a medical reason,
96.29including, but not limited to, fever or contagious illness, the child care center director or
96.30lead teacher may verify the illness in lieu of a medical practitioner.
96.31(b) (c) Notwithstanding paragraph (a), children in families may exceed the ten absent
96.32days limit if at least one parent: (1) is under the age of 21; (2) does not have a high school
96.33or general equivalency diploma; and (3) is a student in a school district or another similar
96.34program that provides or arranges for child care, parenting support, social services, career
96.35and employment supports, and academic support to achieve high school graduation, upon
97.1request of the program and approval of the county. If a child attends part of an authorized
97.2day, payment to the provider must be for the full amount of care authorized for that day.
97.3    (c) (d) Child care providers must be reimbursed for up to ten federal or state holidays
97.4or designated holidays per year when the provider charges all families for these days and the
97.5holiday or designated holiday falls on a day when the child is authorized to be in attendance.
97.6Parents may substitute other cultural or religious holidays for the ten recognized state and
97.7federal holidays. Holidays do not count toward the ten absent day days limit.
97.8    (d) (e) A family or child care provider must not be assessed an overpayment for an
97.9absent day payment unless (1) there was an error in the amount of care authorized for the
97.10family, (2) all of the allowed full-day absent payments for the child have been paid, or (3)
97.11the family or provider did not timely report a change as required under law.
97.12    (e) (f) The provider and family shall receive notification of the number of absent
97.13days used upon initial provider authorization for a family and ongoing notification of the
97.14number of absent days used as of the date of the notification.
97.15(g) For purposes of this subdivision, "absent days limit" means 25 full-day absent
97.16days per child, excluding holidays, in a fiscal year; and ten consecutive full-day absent days.
97.17EFFECTIVE DATE.This section is effective February 1, 2014.

97.18    Sec. 13. Minnesota Statutes 2012, section 245A.07, subdivision 2a, is amended to read:
97.19    Subd. 2a. Immediate suspension expedited hearing. (a) Within five working days
97.20of receipt of the license holder's timely appeal, the commissioner shall request assignment
97.21of an administrative law judge. The request must include a proposed date, time, and place
97.22of a hearing. A hearing must be conducted by an administrative law judge within 30
97.23calendar days of the request for assignment, unless an extension is requested by either
97.24party and granted by the administrative law judge for good cause. The commissioner shall
97.25issue a notice of hearing by certified mail or personal service at least ten working days
97.26before the hearing. The scope of the hearing shall be limited solely to the issue of whether
97.27the temporary immediate suspension should remain in effect pending the commissioner's
97.28final order under section 245A.08, regarding a licensing sanction issued under subdivision
97.293 following the immediate suspension. The burden of proof in expedited hearings under
97.30this subdivision shall be limited to the commissioner's demonstration that reasonable
97.31cause exists to believe that the license holder's actions or failure to comply with applicable
97.32law or rule poses, or if the actions of other individuals or conditions in the program
97.33poses an imminent risk of harm to the health, safety, or rights of persons served by the
97.34program. "Reasonable cause" means there exist specific articulable facts or circumstances
97.35which provide the commissioner with a reasonable suspicion that there is an imminent
98.1risk of harm to the health, safety, or rights of persons served by the program. When the
98.2commissioner has determined there is reasonable cause to order the temporary immediate
98.3suspension of a license based on a violation of safe sleep requirements, as defined in
98.4section 245A.1435, the commissioner is not required to demonstrate that an infant died or
98.5was injured as a result of the safe sleep violations.
98.6    (b) The administrative law judge shall issue findings of fact, conclusions, and a
98.7recommendation within ten working days from the date of hearing. The parties shall have
98.8ten calendar days to submit exceptions to the administrative law judge's report. The
98.9record shall close at the end of the ten-day period for submission of exceptions. The
98.10commissioner's final order shall be issued within ten working days from the close of the
98.11record. Within 90 calendar days after a final order affirming an immediate suspension, the
98.12commissioner shall make a determination regarding whether a final licensing sanction
98.13shall be issued under subdivision 3. The license holder shall continue to be prohibited
98.14from operation of the program during this 90-day period.
98.15    (c) When the final order under paragraph (b) affirms an immediate suspension, and a
98.16final licensing sanction is issued under subdivision 3 and the license holder appeals that
98.17sanction, the license holder continues to be prohibited from operation of the program
98.18pending a final commissioner's order under section 245A.08, subdivision 5, regarding the
98.19final licensing sanction.

98.20    Sec. 14. Minnesota Statutes 2012, section 245A.1435, is amended to read:
98.21245A.1435 REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT
98.22DEATH SYNDROME IN LICENSED PROGRAMS.
98.23    (a) When a license holder is placing an infant to sleep, the license holder must
98.24place the infant on the infant's back, unless the license holder has documentation from
98.25the infant's parent physician directing an alternative sleeping position for the infant. The
98.26parent physician directive must be on a form approved by the commissioner and must
98.27include a statement that the parent or legal guardian has read the information provided by
98.28the Minnesota Sudden Infant Death Center, related to the risk of SIDS and the importance
98.29of placing an infant or child on its back to sleep to reduce the risk of SIDS. remain on file
98.30at the licensed location. An infant who independently rolls onto its stomach after being
98.31placed to sleep on its back may be allowed to remain sleeping on its stomach if the infant
98.32is at least six months of age or the license holder has a signed statement from the parent
98.33indicating that the infant regularly rolls over at home.
98.34(b) The license holder must place the infant in a crib directly on a firm mattress with
98.35a fitted crib sheet that fits tightly on the mattress and overlaps the mattress so it cannot be
99.1dislodged by pulling on the corner of the sheet. The license holder must not place pillows,
99.2quilts, comforters, sheepskin, pillow-like stuffed toys, or other soft products in the crib
99.3with the infant The license holder must place the infant in a crib directly on a firm mattress
99.4with a fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress,
99.5and overlaps the underside of the mattress so it cannot be dislodged by pulling on the
99.6corner of the sheet with reasonable effort. The license holder must not place anything in
99.7the crib with the infant except for the infant's pacifier, as defined in Code of Federal
99.8Regulations, title 16, part 1511. The requirements of this section apply to license holders
99.9serving infants up to and including 12 months younger than one year of age. Licensed
99.10child care providers must meet the crib requirements under section 245A.146.
99.11(c) If an infant falls asleep before being placed in a crib, the license holder must
99.12move the infant to a crib as soon as practicable, and must keep the infant within sight of
99.13the license holder until the infant is placed in a crib. When an infant falls asleep while
99.14being held, the license holder must consider the supervision needs of other children in
99.15care when determining how long to hold the infant before placing the infant in a crib to
99.16sleep. The sleeping infant must not be in a position where the airway may be blocked or
99.17with anything covering the infant's face.
99.18(d) Placing a swaddled infant down to sleep in a licensed setting is not recommended
99.19for an infant of any age and is prohibited for any infant who has begun to roll over
99.20independently. However, with the written consent of a parent or guardian according to this
99.21paragraph, a license holder may place the infant who has not yet begun to roll over on its
99.22own down to sleep in a one-piece sleeper equipped with an attached system that fastens
99.23securely only across the upper torso, with no constriction of the hips or legs, to create a
99.24swaddle. Prior to any use of swaddling for sleep by a provider licensed under this chapter,
99.25the license holder must obtain informed written consent for the use of swaddling from the
99.26parent or guardian of the infant on a form provided by the commissioner and prepared in
99.27partnership with the Minnesota Sudden Infant Death Center.

99.28    Sec. 15. Minnesota Statutes 2012, section 245A.144, is amended to read:
99.29245A.144 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT
99.30DEATH AND SHAKEN BABY SYNDROME ABUSIVE HEAD TRAUMA FOR
99.31CHILD FOSTER CARE PROVIDERS.
99.32    (a) Licensed child foster care providers that care for infants or children through five
99.33years of age must document that before staff persons and caregivers assist in the care
99.34of infants or children through five years of age, they are instructed on the standards in
99.35section 245A.1435 and receive training on reducing the risk of sudden unexpected infant
100.1death syndrome and shaken baby syndrome for abusive head trauma from shaking infants
100.2and young children. This section does not apply to emergency relative placement under
100.3section 245A.035. The training on reducing the risk of sudden unexpected infant death
100.4syndrome and shaken baby syndrome abusive head trauma may be provided as:
100.5    (1) orientation training to child foster care providers, who care for infants or children
100.6through five years of age, under Minnesota Rules, part 2960.3070, subpart 1; or
100.7    (2) in-service training to child foster care providers, who care for infants or children
100.8through five years of age, under Minnesota Rules, part 2960.3070, subpart 2.
100.9    (b) Training required under this section must be at least one hour in length and must
100.10be completed at least once every five years. At a minimum, the training must address
100.11the risk factors related to sudden unexpected infant death syndrome and shaken baby
100.12syndrome abusive head trauma, means of reducing the risk of sudden unexpected infant
100.13death syndrome and shaken baby syndrome abusive head trauma, and license holder
100.14communication with parents regarding reducing the risk of sudden unexpected infant
100.15death syndrome and shaken baby syndrome abusive head trauma.
100.16    (c) Training for child foster care providers must be approved by the county or
100.17private licensing agency that is responsible for monitoring the child foster care provider
100.18under section 245A.16. The approved training fulfills, in part, training required under
100.19Minnesota Rules, part 2960.3070.

100.20    Sec. 16. Minnesota Statutes 2012, section 245A.1444, is amended to read:
100.21245A.1444 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT
100.22DEATH SYNDROME AND SHAKEN BABY SYNDROME ABUSIVE HEAD
100.23TRAUMA BY OTHER PROGRAMS.
100.24    A licensed chemical dependency treatment program that serves clients with infants
100.25or children through five years of age, who sleep at the program and a licensed children's
100.26residential facility that serves infants or children through five years of age, must document
100.27that before program staff persons or volunteers assist in the care of infants or children
100.28through five years of age, they are instructed on the standards in section 245A.1435 and
100.29receive training on reducing the risk of sudden unexpected infant death syndrome and
100.30shaken baby syndrome abusive head trauma from shaking infants and young children. The
100.31training conducted under this section may be used to fulfill training requirements under
100.32Minnesota Rules, parts 2960.0100, subpart 3; and 9530.6490, subpart 4, item B.
100.33    This section does not apply to child care centers or family child care programs
100.34governed by sections 245A.40 and 245A.50.

101.1    Sec. 17. [245A.1446] FAMILY CHILD CARE DIAPERING AREA
101.2DISINFECTION.
101.3Notwithstanding Minnesota Rules, part 9502.0435, a family child care provider may
101.4disinfect the diaper changing surface with chlorine bleach in a manner consistent with label
101.5directions for disinfection or with a surface disinfectant that meets the following criteria:
101.6(1) the manufacturer's label or instructions state that the product is registered with
101.7the United States Environmental Protection Agency;
101.8(2) the manufacturer's label or instructions state that the disinfectant is effective
101.9against Staphylococcus aureus, Salmonella choleraesuis, and Pseudomonas aeruginosa;
101.10(3) the manufacturer's label or instructions state that the disinfectant is effective with
101.11a ten minute or less contact time;
101.12(4) the disinfectant is clearly labeled by the manufacturer with directions for mixing
101.13and use;
101.14(5) the disinfectant is used only in accordance with the manufacturer's directions; and
101.15(6) the product does not include triclosan or derivatives of triclosan.

101.16    Sec. 18. [245A.147] FAMILY CHILD CARE INFANT SLEEP SUPERVISION
101.17REQUIREMENTS.
101.18    Subdivision 1. In-person checks on infants. (a) License holders that serve infants
101.19are encouraged to monitor sleeping infants by conducting in-person checks on each infant
101.20in their care every 30 minutes.
101.21(b) Upon enrollment of an infant in a family child care program, the license holder is
101.22encouraged to conduct in-person checks on the sleeping infant every 15 minutes, during
101.23the first four months of care.
101.24(c) When an infant has an upper respiratory infection, the license holder is
101.25encouraged to conduct in-person checks on the sleeping infant every 15 minutes
101.26throughout the hours of sleep.
101.27    Subd. 2. Use of audio or visual monitoring devices. In addition to conducting
101.28the in-person checks encouraged under subdivision 1, license holders serving infants are
101.29encouraged to use and maintain an audio or visual monitoring device to monitor each
101.30sleeping infant in care during all hours of sleep.

101.31    Sec. 19. [245A.152] CHILD CARE LICENSE HOLDER INSURANCE.
101.32(a) A license holder must provide a written notice to all parents or guardians of all
101.33children to be accepted for care prior to admission stating whether the license holder has
102.1liability insurance. This notice may be incorporated into and provided on the admission
102.2form used by the license holder.
102.3(b) If the license holder has liability insurance:
102.4(1) the license holder shall inform parents in writing that a current certificate of
102.5coverage for insurance is available for inspection to all parents or guardians of children
102.6receiving services and to all parents seeking services from the family child care program;
102.7(2) the notice must provide the parent or guardian with the date of expiration or
102.8next renewal of the policy; and
102.9(3) upon the expiration date of the policy, the license holder must provide a new
102.10written notice indicating whether the insurance policy has lapsed or whether the license
102.11holder has renewed the policy.
102.12If the policy was renewed, the license holder must provide the new expiration date of the
102.13policy in writing to the parents or guardians.
102.14(c) If the license holder does not have liability insurance, the license holder must
102.15provide an annual notice, on a form developed and made available by the commissioner,
102.16to the parents or guardians of children in care indicating that the license holder does not
102.17carry liability insurance.
102.18(d) The license holder must notify all parents and guardians in writing immediately
102.19of any change in insurance status.
102.20(e) The license holder must make available upon request the certificate of liability
102.21insurance to the parents of children in care, to the commissioner, and to county licensing
102.22agents.
102.23(f) The license holder must document, with the signature of the parent or guardian,
102.24that the parent or guardian received the notices required by this section.

102.25    Sec. 20. Minnesota Statutes 2012, section 245A.40, subdivision 5, is amended to read:
102.26    Subd. 5. Sudden unexpected infant death syndrome and shaken baby syndrome
102.27 abusive head trauma training. (a) License holders must document that before staff
102.28persons and volunteers care for infants, they are instructed on the standards in section
102.29245A.1435 and receive training on reducing the risk of sudden unexpected infant death
102.30syndrome. In addition, license holders must document that before staff persons care for
102.31infants or children under school age, they receive training on the risk of shaken baby
102.32syndrome abusive head trauma from shaking infants and young children. The training
102.33in this subdivision may be provided as orientation training under subdivision 1 and
102.34in-service training under subdivision 7.
103.1    (b) Sudden unexpected infant death syndrome reduction training required under
103.2this subdivision must be at least one-half hour in length and must be completed at least
103.3once every five years year. At a minimum, the training must address the risk factors
103.4related to sudden unexpected infant death syndrome, means of reducing the risk of sudden
103.5unexpected infant death syndrome in child care, and license holder communication with
103.6parents regarding reducing the risk of sudden unexpected infant death syndrome.
103.7    (c) Shaken baby syndrome Abusive head trauma training under this subdivision
103.8must be at least one-half hour in length and must be completed at least once every five
103.9years year. At a minimum, the training must address the risk factors related to shaken
103.10baby syndrome for shaking infants and young children, means to reduce the risk of shaken
103.11baby syndrome abusive head trauma in child care, and license holder communication with
103.12parents regarding reducing the risk of shaken baby syndrome abusive head trauma.
103.13(d) The commissioner shall make available for viewing a video presentation on the
103.14dangers associated with shaking infants and young children. The video presentation must
103.15be part of the orientation and annual in-service training of licensed child care center
103.16staff persons caring for children under school age. The commissioner shall provide to
103.17child care providers and interested individuals, at cost, copies of a video approved by the
103.18commissioner of health under section 144.574 on the dangers associated with shaking
103.19infants and young children.

103.20    Sec. 21. Minnesota Statutes 2012, section 245A.50, is amended to read:
103.21245A.50 FAMILY CHILD CARE TRAINING REQUIREMENTS.
103.22    Subdivision 1. Initial training. (a) License holders, caregivers, and substitutes must
103.23comply with the training requirements in this section.
103.24    (b) Helpers who assist with care on a regular basis must complete six hours of
103.25training within one year after the date of initial employment.
103.26    Subd. 2. Child growth and development and behavior guidance training. (a) For
103.27purposes of family and group family child care, the license holder and each adult caregiver
103.28who provides care in the licensed setting for more than 30 days in any 12-month period
103.29shall complete and document at least two four hours of child growth and development
103.30and behavior guidance training within the first year of prior to initial licensure, and before
103.31caring for children. For purposes of this subdivision, "child growth and development
103.32training" means training in understanding how children acquire language and develop
103.33physically, cognitively, emotionally, and socially. "Behavior guidance training" means
103.34training in the understanding of the functions of child behavior and strategies for managing
103.35challenging situations. Child growth and development and behavior guidance training
104.1must be repeated annually. Training curriculum shall be developed or approved by the
104.2commissioner of human services by January 1, 2014.
104.3    (b) Notwithstanding paragraph (a), individuals are exempt from this requirement if
104.4they:
104.5    (1) have taken a three-credit course on early childhood development within the
104.6past five years;
104.7    (2) have received a baccalaureate or master's degree in early childhood education or
104.8school-age child care within the past five years;
104.9    (3) are licensed in Minnesota as a prekindergarten teacher, an early childhood
104.10educator, a kindergarten to grade 6 teacher with a prekindergarten specialty, an early
104.11childhood special education teacher, or an elementary teacher with a kindergarten
104.12endorsement; or
104.13    (4) have received a baccalaureate degree with a Montessori certificate within the
104.14past five years.
104.15    Subd. 3. First aid. (a) When children are present in a family child care home
104.16governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at least one staff person
104.17must be present in the home who has been trained in first aid. The first aid training must
104.18have been provided by an individual approved to provide first aid instruction. First aid
104.19training may be less than eight hours and persons qualified to provide first aid training
104.20include individuals approved as first aid instructors. First aid training must be repeated
104.21every two years.
104.22    (b) A family child care provider is exempt from the first aid training requirements
104.23under this subdivision related to any substitute caregiver who provides less than 30 hours
104.24of care during any 12-month period.
104.25    (c) Video training reviewed and approved by the county licensing agency satisfies
104.26the training requirement of this subdivision.
104.27    Subd. 4. Cardiopulmonary resuscitation. (a) When children are present in a family
104.28child care home governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at least
104.29one staff person must be present in the home who has been trained in cardiopulmonary
104.30resuscitation (CPR) and in the treatment of obstructed airways that includes CPR
104.31techniques for infants and children. The CPR training must have been provided by an
104.32individual approved to provide CPR instruction, must be repeated at least once every three
104.33 two years, and must be documented in the staff person's records.
104.34    (b) A family child care provider is exempt from the CPR training requirement in
104.35this subdivision related to any substitute caregiver who provides less than 30 hours of
104.36care during any 12-month period.
105.1    (c) Video training reviewed and approved by the county licensing agency satisfies
105.2the training requirement of this subdivision. Persons providing CPR training must use
105.3CPR training that has been developed:
105.4    (1) by the American Heart Association or the American Red Cross and incorporates
105.5psychomotor skills to support the instruction; or
105.6    (2) using nationally recognized, evidence-based guidelines for CPR training and
105.7incorporates psychomotor skills to support the instruction.
105.8    Subd. 5. Sudden unexpected infant death syndrome and shaken baby syndrome
105.9 abusive head trauma training. (a) License holders must document that before staff
105.10persons, caregivers, and helpers assist in the care of infants, they are instructed on the
105.11standards in section 245A.1435 and receive training on reducing the risk of sudden
105.12unexpected infant death syndrome. In addition, license holders must document that before
105.13staff persons, caregivers, and helpers assist in the care of infants and children under
105.14school age, they receive training on reducing the risk of shaken baby syndrome abusive
105.15head trauma from shaking infants and young children. The training in this subdivision
105.16may be provided as initial training under subdivision 1 or ongoing annual training under
105.17subdivision 7.
105.18    (b) Sudden unexpected infant death syndrome reduction training required under this
105.19subdivision must be at least one-half hour in length and must be completed in person
105.20 at least once every five years two years. On the years when the license holder is not
105.21receiving the in-person training on sudden unexpected infant death reduction, the license
105.22holder must receive sudden unexpected infant death reduction training through a video
105.23of no more than one hour in length developed or approved by the commissioner. At a
105.24minimum, the training must address the risk factors related to sudden unexpected infant
105.25death syndrome, means of reducing the risk of sudden unexpected infant death syndrome
105.26 in child care, and license holder communication with parents regarding reducing the risk
105.27of sudden unexpected infant death syndrome.
105.28    (c) Shaken baby syndrome Abusive head trauma training required under this
105.29subdivision must be at least one-half hour in length and must be completed at least once
105.30every five years year. At a minimum, the training must address the risk factors related
105.31to shaken baby syndrome shaking infants and young children, means of reducing the
105.32risk of shaken baby syndrome abusive head trauma in child care, and license holder
105.33communication with parents regarding reducing the risk of shaken baby syndrome abusive
105.34head trauma.
105.35(d) Training for family and group family child care providers must be developed
105.36by the commissioner in conjunction with the Minnesota Sudden Infant Death Center
106.1and approved by the county licensing agency by the Minnesota Center for Professional
106.2Development.
106.3    (e) The commissioner shall make available for viewing by all licensed child care
106.4providers a video presentation on the dangers associated with shaking infants and young
106.5children. The video presentation shall be part of the initial and ongoing annual training of
106.6licensed child care providers, caregivers, and helpers caring for children under school age.
106.7The commissioner shall provide to child care providers and interested individuals, at cost,
106.8copies of a video approved by the commissioner of health under section 144.574 on the
106.9dangers associated with shaking infants and young children.
106.10    Subd. 6. Child passenger restraint systems; training requirement. (a) A license
106.11holder must comply with all seat belt and child passenger restraint system requirements
106.12under section 169.685.
106.13    (b) Family and group family child care programs licensed by the Department of
106.14Human Services that serve a child or children under nine years of age must document
106.15training that fulfills the requirements in this subdivision.
106.16    (1) Before a license holder, staff person, caregiver, or helper transports a child or
106.17children under age nine in a motor vehicle, the person placing the child or children in a
106.18passenger restraint must satisfactorily complete training on the proper use and installation
106.19of child restraint systems in motor vehicles. Training completed under this subdivision may
106.20be used to meet initial training under subdivision 1 or ongoing training under subdivision 7.
106.21    (2) Training required under this subdivision must be at least one hour in length,
106.22completed at initial training, and repeated at least once every five years. At a minimum,
106.23the training must address the proper use of child restraint systems based on the child's
106.24size, weight, and age, and the proper installation of a car seat or booster seat in the motor
106.25vehicle used by the license holder to transport the child or children.
106.26    (3) Training under this subdivision must be provided by individuals who are certified
106.27and approved by the Department of Public Safety, Office of Traffic Safety. License holders
106.28may obtain a list of certified and approved trainers through the Department of Public
106.29Safety Web site or by contacting the agency.
106.30    (c) Child care providers that only transport school-age children as defined in section
106.31245A.02, subdivision 19 , paragraph (f), in child care buses as defined in section 169.448,
106.32subdivision 1, paragraph (e), are exempt from this subdivision.
106.33    Subd. 7. Training requirements for family and group family child care. For
106.34purposes of family and group family child care, the license holder and each primary
106.35caregiver must complete eight 16 hours of ongoing training each year. For purposes
106.36of this subdivision, a primary caregiver is an adult caregiver who provides services in
107.1the licensed setting for more than 30 days in any 12-month period. Repeat of topical
107.2training requirements in subdivisions 2 to 8 shall count toward the annual 16-hour training
107.3requirement. Additional ongoing training subjects to meet the annual 16-hour training
107.4requirement must be selected from the following areas:
107.5    (1) "child growth and development training" has the meaning given in under
107.6 subdivision 2, paragraph (a);
107.7    (2) "learning environment and curriculum" includes, including training in
107.8establishing an environment and providing activities that provide learning experiences to
107.9meet each child's needs, capabilities, and interests;
107.10    (3) "assessment and planning for individual needs" includes, including training in
107.11observing and assessing what children know and can do in order to provide curriculum
107.12and instruction that addresses their developmental and learning needs, including children
107.13with special needs and bilingual children or children for whom English is not their
107.14primary language;
107.15    (4) "interactions with children" includes, including training in establishing
107.16supportive relationships with children, guiding them as individuals and as part of a group;
107.17    (5) "families and communities" includes, including training in working
107.18collaboratively with families and agencies or organizations to meet children's needs and to
107.19encourage the community's involvement;
107.20    (6) "health, safety, and nutrition" includes, including training in establishing and
107.21maintaining an environment that ensures children's health, safety, and nourishment,
107.22including child abuse, maltreatment, prevention, and reporting; home and fire safety; child
107.23injury prevention; communicable disease prevention and control; first aid; and CPR; and
107.24    (7) "program planning and evaluation" includes, including training in establishing,
107.25implementing, evaluating, and enhancing program operations.; and
107.26(8) behavior guidance, including training in the understanding of the functions of
107.27child behavior and strategies for managing behavior.
107.28    Subd. 8. Other required training requirements. (a) The training required of
107.29family and group family child care providers and staff must include training in the cultural
107.30dynamics of early childhood development and child care. The cultural dynamics and
107.31disabilities training and skills development of child care providers must be designed to
107.32achieve outcomes for providers of child care that include, but are not limited to:
107.33    (1) an understanding and support of the importance of culture and differences in
107.34ability in children's identity development;
107.35    (2) understanding the importance of awareness of cultural differences and
107.36similarities in working with children and their families;
108.1    (3) understanding and support of the needs of families and children with differences
108.2in ability;
108.3    (4) developing skills to help children develop unbiased attitudes about cultural
108.4differences and differences in ability;
108.5    (5) developing skills in culturally appropriate caregiving; and
108.6    (6) developing skills in appropriate caregiving for children of different abilities.
108.7    The commissioner shall approve the curriculum for cultural dynamics and disability
108.8training.
108.9    (b) The provider must meet the training requirement in section 245A.14, subdivision
108.1011
, paragraph (a), clause (4), to be eligible to allow a child cared for at the family child
108.11care or group family child care home to use the swimming pool located at the home.
108.12    Subd. 9. Supervising for safety; training requirement. Effective July 1, 2014,
108.13all family child care license holders and each adult caregiver who provides care in the
108.14licensed family child care home for more than 30 days in any 12-month period shall
108.15complete and document at least six hours of approved training on supervising for safety
108.16prior to initial licensure, and before caring for children. At least two hours of training
108.17on supervising for safety must be repeated annually. For purposes of this subdivision,
108.18"supervising for safety" includes supervision basics, supervision outdoors, equipment and
108.19materials, illness, injuries, and disaster preparedness. The commissioner shall develop
108.20the supervising for safety curriculum by January 1, 2014.
108.21    Subd. 10. Approved training. County licensing staff must accept training approved
108.22by the Minnesota Center for Professional Development, including:
108.23(1) face-to-face or classroom training;
108.24(2) online training; and
108.25(3) relationship-based professional development, such as mentoring, coaching,
108.26and consulting.
108.27    Subd. 11. Provider training. New and increased training requirements under this
108.28section must not be imposed on providers until the commissioner establishes statewide
108.29accessibility to the required provider training.

108.30    Sec. 22. Minnesota Statutes 2012, section 252.27, subdivision 2a, is amended to read:
108.31    Subd. 2a. Contribution amount. (a) The natural or adoptive parents of a minor
108.32child, including a child determined eligible for medical assistance without consideration of
108.33parental income, must contribute to the cost of services used by making monthly payments
108.34on a sliding scale based on income, unless the child is married or has been married, parental
108.35rights have been terminated, or the child's adoption is subsidized according to section
109.1259.67 or through title IV-E of the Social Security Act. The parental contribution is a partial
109.2or full payment for medical services provided for diagnostic, therapeutic, curing, treating,
109.3mitigating, rehabilitation, maintenance, and personal care services as defined in United
109.4States Code, title 26, section 213, needed by the child with a chronic illness or disability.
109.5    (b) For households with adjusted gross income equal to or greater than 100 275
109.6 percent of federal poverty guidelines, the parental contribution shall be computed by
109.7applying the following schedule of rates to the adjusted gross income of the natural or
109.8adoptive parents:
109.9    (1) if the adjusted gross income is equal to or greater than 100 percent of federal
109.10poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
109.11contribution is $4 per month;
109.12    (2) (1) if the adjusted gross income is equal to or greater than 175 275 percent
109.13of federal poverty guidelines and less than or equal to 545 percent of federal poverty
109.14guidelines, the parental contribution shall be determined using a sliding fee scale
109.15established by the commissioner of human services which begins at one 2.76 percent of
109.16adjusted gross income at 175 275 percent of federal poverty guidelines and increases to
109.177.5 percent of adjusted gross income for those with adjusted gross income up to 545
109.18percent of federal poverty guidelines;
109.19    (3) (2) if the adjusted gross income is greater than 545 percent of federal poverty
109.20guidelines and less than 675 percent of federal poverty guidelines, the parental
109.21contribution shall be 7.5 percent of adjusted gross income;
109.22    (4) (3) if the adjusted gross income is equal to or greater than 675 percent of federal
109.23poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
109.24contribution shall be determined using a sliding fee scale established by the commissioner
109.25of human services which begins at 7.5 percent of adjusted gross income at 675 percent of
109.26federal poverty guidelines and increases to ten percent of adjusted gross income for those
109.27with adjusted gross income up to 975 percent of federal poverty guidelines; and
109.28    (5) (4) if the adjusted gross income is equal to or greater than 975 percent of federal
109.29poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross income.
109.30    If the child lives with the parent, the annual adjusted gross income is reduced by
109.31$2,400 prior to calculating the parental contribution. If the child resides in an institution
109.32specified in section 256B.35, the parent is responsible for the personal needs allowance
109.33specified under that section in addition to the parental contribution determined under this
109.34section. The parental contribution is reduced by any amount required to be paid directly to
109.35the child pursuant to a court order, but only if actually paid.
110.1    (c) The household size to be used in determining the amount of contribution under
110.2paragraph (b) includes natural and adoptive parents and their dependents, including the
110.3child receiving services. Adjustments in the contribution amount due to annual changes
110.4in the federal poverty guidelines shall be implemented on the first day of July following
110.5publication of the changes.
110.6    (d) For purposes of paragraph (b), "income" means the adjusted gross income of the
110.7natural or adoptive parents determined according to the previous year's federal tax form,
110.8except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
110.9have been used to purchase a home shall not be counted as income.
110.10    (e) The contribution shall be explained in writing to the parents at the time eligibility
110.11for services is being determined. The contribution shall be made on a monthly basis
110.12effective with the first month in which the child receives services. Annually upon
110.13redetermination or at termination of eligibility, if the contribution exceeded the cost of
110.14services provided, the local agency or the state shall reimburse that excess amount to
110.15the parents, either by direct reimbursement if the parent is no longer required to pay a
110.16contribution, or by a reduction in or waiver of parental fees until the excess amount is
110.17exhausted. All reimbursements must include a notice that the amount reimbursed may be
110.18taxable income if the parent paid for the parent's fees through an employer's health care
110.19flexible spending account under the Internal Revenue Code, section 125, and that the
110.20parent is responsible for paying the taxes owed on the amount reimbursed.
110.21    (f) The monthly contribution amount must be reviewed at least every 12 months;
110.22when there is a change in household size; and when there is a loss of or gain in income
110.23from one month to another in excess of ten percent. The local agency shall mail a written
110.24notice 30 days in advance of the effective date of a change in the contribution amount.
110.25A decrease in the contribution amount is effective in the month that the parent verifies a
110.26reduction in income or change in household size.
110.27    (g) Parents of a minor child who do not live with each other shall each pay the
110.28contribution required under paragraph (a). An amount equal to the annual court-ordered
110.29child support payment actually paid on behalf of the child receiving services shall be
110.30deducted from the adjusted gross income of the parent making the payment prior to
110.31calculating the parental contribution under paragraph (b).
110.32    (h) The contribution under paragraph (b) shall be increased by an additional five
110.33percent if the local agency determines that insurance coverage is available but not
110.34obtained for the child. For purposes of this section, "available" means the insurance is a
110.35benefit of employment for a family member at an annual cost of no more than five percent
110.36of the family's annual income. For purposes of this section, "insurance" means health
111.1and accident insurance coverage, enrollment in a nonprofit health service plan, health
111.2maintenance organization, self-insured plan, or preferred provider organization.
111.3    Parents who have more than one child receiving services shall not be required
111.4to pay more than the amount for the child with the highest expenditures. There shall
111.5be no resource contribution from the parents. The parent shall not be required to pay
111.6a contribution in excess of the cost of the services provided to the child, not counting
111.7payments made to school districts for education-related services. Notice of an increase in
111.8fee payment must be given at least 30 days before the increased fee is due.
111.9    (i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if,
111.10in the 12 months prior to July 1:
111.11    (1) the parent applied for insurance for the child;
111.12    (2) the insurer denied insurance;
111.13    (3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
111.14a complaint or appeal, in writing, to the commissioner of health or the commissioner of
111.15commerce, or litigated the complaint or appeal; and
111.16    (4) as a result of the dispute, the insurer reversed its decision and granted insurance.
111.17    For purposes of this section, "insurance" has the meaning given in paragraph (h).
111.18    A parent who has requested a reduction in the contribution amount under this
111.19paragraph shall submit proof in the form and manner prescribed by the commissioner or
111.20county agency, including, but not limited to, the insurer's denial of insurance, the written
111.21letter or complaint of the parents, court documents, and the written response of the insurer
111.22approving insurance. The determinations of the commissioner or county agency under this
111.23paragraph are not rules subject to chapter 14.
111.24(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30,
111.252015, the parental contribution shall be computed by applying the following contribution
111.26schedule to the adjusted gross income of the natural or adoptive parents:
111.27(1) if the adjusted gross income is equal to or greater than 100 percent of federal
111.28poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
111.29contribution is $4 per month;
111.30(2) if the adjusted gross income is equal to or greater than 175 percent of federal
111.31poverty guidelines and less than or equal to 525 percent of federal poverty guidelines,
111.32the parental contribution shall be determined using a sliding fee scale established by the
111.33commissioner of human services which begins at one percent of adjusted gross income
111.34at 175 percent of federal poverty guidelines and increases to eight percent of adjusted
111.35gross income for those with adjusted gross income up to 525 percent of federal poverty
111.36guidelines;
112.1(3) if the adjusted gross income is greater than 525 percent of federal poverty
112.2guidelines and less than 675 percent of federal poverty guidelines, the parental
112.3contribution shall be 9.5 percent of adjusted gross income;
112.4(4) if the adjusted gross income is equal to or greater than 675 percent of federal
112.5poverty guidelines and less than 900 percent of federal poverty guidelines, the parental
112.6contribution shall be determined using a sliding fee scale established by the commissioner
112.7of human services which begins at 9.5 percent of adjusted gross income at 675 percent of
112.8federal poverty guidelines and increases to 12 percent of adjusted gross income for those
112.9with adjusted gross income up to 900 percent of federal poverty guidelines; and
112.10(5) if the adjusted gross income is equal to or greater than 900 percent of federal
112.11poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross
112.12income. If the child lives with the parent, the annual adjusted gross income is reduced by
112.13$2,400 prior to calculating the parental contribution. If the child resides in an institution
112.14specified in section 256B.35, the parent is responsible for the personal needs allowance
112.15specified under that section in addition to the parental contribution determined under this
112.16section. The parental contribution is reduced by any amount required to be paid directly to
112.17the child pursuant to a court order, but only if actually paid.
112.18EFFECTIVE DATE.Paragraph (b) is effective January 1, 2014. Paragraph (j)
112.19is effective July 1, 2013.

112.20    Sec. 23. Minnesota Statutes 2012, section 256.98, subdivision 8, is amended to read:
112.21    Subd. 8. Disqualification from program. (a) Any person found to be guilty of
112.22wrongfully obtaining assistance by a federal or state court or by an administrative hearing
112.23determination, or waiver thereof, through a disqualification consent agreement, or as part
112.24of any approved diversion plan under section 401.065, or any court-ordered stay which
112.25carries with it any probationary or other conditions, in the Minnesota family investment
112.26program and any affiliated program to include the diversionary work program and the
112.27work participation cash benefit program, the food stamp or food support program, the
112.28general assistance program, the group residential housing program, or the Minnesota
112.29supplemental aid program shall be disqualified from that program. In addition, any person
112.30disqualified from the Minnesota family investment program shall also be disqualified from
112.31the food stamp or food support program. The needs of that individual shall not be taken
112.32into consideration in determining the grant level for that assistance unit:
112.33(1) for one year after the first offense;
112.34(2) for two years after the second offense; and
112.35(3) permanently after the third or subsequent offense.
113.1The period of program disqualification shall begin on the date stipulated on the
113.2advance notice of disqualification without possibility of postponement for administrative
113.3stay or administrative hearing and shall continue through completion unless and until the
113.4findings upon which the sanctions were imposed are reversed by a court of competent
113.5jurisdiction. The period for which sanctions are imposed is not subject to review. The
113.6sanctions provided under this subdivision are in addition to, and not in substitution
113.7for, any other sanctions that may be provided for by law for the offense involved. A
113.8disqualification established through hearing or waiver shall result in the disqualification
113.9period beginning immediately unless the person has become otherwise ineligible for
113.10assistance. If the person is ineligible for assistance, the disqualification period begins
113.11when the person again meets the eligibility criteria of the program from which they were
113.12disqualified and makes application for that program.
113.13(b) A family receiving assistance through child care assistance programs under
113.14chapter 119B with a family member who is found to be guilty of wrongfully obtaining child
113.15care assistance by a federal court, state court, or an administrative hearing determination
113.16or waiver, through a disqualification consent agreement, as part of an approved diversion
113.17plan under section 401.065, or a court-ordered stay with probationary or other conditions,
113.18is disqualified from child care assistance programs. The disqualifications must be for
113.19periods of three months, six months, and one year and two years for the first, and
113.20 second, and third offenses, respectively. Subsequent violations must result in permanent
113.21disqualification. During the disqualification period, disqualification from any child care
113.22program must extend to all child care programs and must be immediately applied.
113.23(c) A provider caring for children receiving assistance through child care assistance
113.24programs under chapter 119B is disqualified from receiving payment for child care
113.25services from the child care assistance program under chapter 119B when the provider is
113.26found to have wrongfully obtained child care assistance by a federal court, state court,
113.27or an administrative hearing determination or waiver under section 256.046, through
113.28a disqualification consent agreement, as part of an approved diversion plan under
113.29section 401.065, or a court-ordered stay with probationary or other conditions. The
113.30disqualification must be for a period of one year for the first offense and two years for
113.31the second offense. Any subsequent violation must result in permanent disqualification.
113.32The disqualification period must be imposed immediately after a determination is made
113.33under this paragraph. During the disqualification period, the provider is disqualified from
113.34receiving payment from any child care program under chapter 119B.
113.35(d) Any person found to be guilty of wrongfully obtaining general assistance
113.36medical care, MinnesotaCare for adults without children, and upon federal approval, all
114.1categories of medical assistance and remaining categories of MinnesotaCare, except
114.2for children through age 18, by a federal or state court or by an administrative hearing
114.3determination, or waiver thereof, through a disqualification consent agreement, or as part
114.4of any approved diversion plan under section 401.065, or any court-ordered stay which
114.5carries with it any probationary or other conditions, is disqualified from that program. The
114.6period of disqualification is one year after the first offense, two years after the second
114.7offense, and permanently after the third or subsequent offense. The period of program
114.8disqualification shall begin on the date stipulated on the advance notice of disqualification
114.9without possibility of postponement for administrative stay or administrative hearing
114.10and shall continue through completion unless and until the findings upon which the
114.11sanctions were imposed are reversed by a court of competent jurisdiction. The period for
114.12which sanctions are imposed is not subject to review. The sanctions provided under this
114.13subdivision are in addition to, and not in substitution for, any other sanctions that may be
114.14provided for by law for the offense involved.
114.15EFFECTIVE DATE.This section is effective February 3, 2014.

114.16    Sec. 24. Minnesota Statutes 2012, section 256J.08, subdivision 24, is amended to read:
114.17    Subd. 24. Disregard. "Disregard" means earned income that is not counted when
114.18determining initial eligibility in the initial income test in section 256J.21, subdivision 3,
114.19 or income that is not counted when determining ongoing eligibility and calculating the
114.20amount of the assistance payment for participants. The commissioner shall determine
114.21the amount of the disregard according to section 256J.24, subdivision 10 for ongoing
114.22eligibility shall be 50 percent of gross earned income.
114.23EFFECTIVE DATE.This section is effective October 1, 2014, or upon approval
114.24from the United States Department of Agriculture, whichever is later.

114.25    Sec. 25. Minnesota Statutes 2012, section 256J.21, subdivision 2, is amended to read:
114.26    Subd. 2. Income exclusions. The following must be excluded in determining a
114.27family's available income:
114.28    (1) payments for basic care, difficulty of care, and clothing allowances received for
114.29providing family foster care to children or adults under Minnesota Rules, parts 9555.5050
114.30to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used
114.31for care and maintenance of a third-party beneficiary who is not a household member;
114.32    (2) reimbursements for employment training received through the Workforce
114.33Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;
115.1    (3) reimbursement for out-of-pocket expenses incurred while performing volunteer
115.2services, jury duty, employment, or informal carpooling arrangements directly related to
115.3employment;
115.4    (4) all educational assistance, except the county agency must count graduate student
115.5teaching assistantships, fellowships, and other similar paid work as earned income and,
115.6after allowing deductions for any unmet and necessary educational expenses, shall
115.7count scholarships or grants awarded to graduate students that do not require teaching
115.8or research as unearned income;
115.9    (5) loans, regardless of purpose, from public or private lending institutions,
115.10governmental lending institutions, or governmental agencies;
115.11    (6) loans from private individuals, regardless of purpose, provided an applicant or
115.12participant documents that the lender expects repayment;
115.13    (7)(i) state income tax refunds; and
115.14    (ii) federal income tax refunds;
115.15    (8)(i) federal earned income credits;
115.16    (ii) Minnesota working family credits;
115.17    (iii) state homeowners and renters credits under chapter 290A; and
115.18    (iv) federal or state tax rebates;
115.19    (9) funds received for reimbursement, replacement, or rebate of personal or real
115.20property when these payments are made by public agencies, awarded by a court, solicited
115.21through public appeal, or made as a grant by a federal agency, state or local government,
115.22or disaster assistance organizations, subsequent to a presidential declaration of disaster;
115.23    (10) the portion of an insurance settlement that is used to pay medical, funeral, and
115.24burial expenses, or to repair or replace insured property;
115.25    (11) reimbursements for medical expenses that cannot be paid by medical assistance;
115.26    (12) payments by a vocational rehabilitation program administered by the state
115.27under chapter 268A, except those payments that are for current living expenses;
115.28    (13) in-kind income, including any payments directly made by a third party to a
115.29provider of goods and services;
115.30    (14) assistance payments to correct underpayments, but only for the month in which
115.31the payment is received;
115.32    (15) payments for short-term emergency needs under section 256J.626, subdivision 2;
115.33    (16) funeral and cemetery payments as provided by section 256.935;
115.34    (17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in
115.35a calendar month;
116.1    (18) any form of energy assistance payment made through Public Law 97-35,
116.2Low-Income Home Energy Assistance Act of 1981, payments made directly to energy
116.3providers by other public and private agencies, and any form of credit or rebate payment
116.4issued by energy providers;
116.5    (19) Supplemental Security Income (SSI), including retroactive SSI payments and
116.6other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;
116.7    (20) Minnesota supplemental aid, including retroactive payments;
116.8    (21) proceeds from the sale of real or personal property;
116.9    (22) state adoption assistance payments under section 259.67, and up to an equal
116.10amount of county adoption assistance payments;
116.11    (23) state-funded family subsidy program payments made under section 252.32 to
116.12help families care for children with developmental disabilities, consumer support grant
116.13funds under section 256.476, and resources and services for a disabled household member
116.14under one of the home and community-based waiver services programs under chapter 256B;
116.15    (24) interest payments and dividends from property that is not excluded from and
116.16that does not exceed the asset limit;
116.17    (25) rent rebates;
116.18    (26) income earned by a minor caregiver, minor child through age 6, or a minor
116.19child who is at least a half-time student in an approved elementary or secondary education
116.20program;
116.21    (27) income earned by a caregiver under age 20 who is at least a half-time student in
116.22an approved elementary or secondary education program;
116.23    (28) MFIP child care payments under section 119B.05;
116.24    (29) all other payments made through MFIP to support a caregiver's pursuit of
116.25greater economic stability;
116.26    (30) income a participant receives related to shared living expenses;
116.27    (31) reverse mortgages;
116.28    (32) benefits provided by the Child Nutrition Act of 1966, United States Code, title
116.2942, chapter 13A, sections 1771 to 1790;
116.30    (33) benefits provided by the women, infants, and children (WIC) nutrition program,
116.31United States Code, title 42, chapter 13A, section 1786;
116.32    (34) benefits from the National School Lunch Act, United States Code, title 42,
116.33chapter 13, sections 1751 to 1769e;
116.34    (35) relocation assistance for displaced persons under the Uniform Relocation
116.35Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title
117.142, chapter 61, subchapter II, section 4636, or the National Housing Act, United States
117.2Code, title 12, chapter 13, sections 1701 to 1750jj;
117.3    (36) benefits from the Trade Act of 1974, United States Code, title 19, chapter
117.412, part 2, sections 2271 to 2322;
117.5    (37) war reparations payments to Japanese Americans and Aleuts under United
117.6States Code, title 50, sections 1989 to 1989d;
117.7    (38) payments to veterans or their dependents as a result of legal settlements
117.8regarding Agent Orange or other chemical exposure under Public Law 101-239, section
117.910405, paragraph (a)(2)(E);
117.10    (39) income that is otherwise specifically excluded from MFIP consideration in
117.11federal law, state law, or federal regulation;
117.12    (40) security and utility deposit refunds;
117.13    (41) American Indian tribal land settlements excluded under Public Laws 98-123,
117.1498-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech
117.15Lake, and Mille Lacs reservations and payments to members of the White Earth Band,
117.16under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
117.17    (42) all income of the minor parent's parents and stepparents when determining the
117.18grant for the minor parent in households that include a minor parent living with parents or
117.19stepparents on MFIP with other children;
117.20    (43) income of the minor parent's parents and stepparents equal to 200 percent of the
117.21federal poverty guideline for a family size not including the minor parent and the minor
117.22parent's child in households that include a minor parent living with parents or stepparents
117.23not on MFIP when determining the grant for the minor parent. The remainder of income is
117.24deemed as specified in section 256J.37, subdivision 1b;
117.25    (44) payments made to children eligible for relative custody assistance under section
117.26257.85 ;
117.27    (45) vendor payments for goods and services made on behalf of a client unless the
117.28client has the option of receiving the payment in cash;
117.29    (46) the principal portion of a contract for deed payment; and
117.30    (47) cash payments to individuals enrolled for full-time service as a volunteer under
117.31AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps
117.32National, and AmeriCorps NCCC; and
117.33    (48) housing assistance grants under section 256J.35, paragraph (a).

117.34    Sec. 26. Minnesota Statutes 2012, section 256J.21, subdivision 3, is amended to read:
118.1    Subd. 3. Initial income test. The county agency shall determine initial eligibility
118.2by considering all earned and unearned income that is not excluded under subdivision 2.
118.3To be eligible for MFIP, the assistance unit's countable income minus the disregards in
118.4paragraphs (a) and (b) must be below the transitional standard of assistance family wage
118.5level according to section 256J.24 for that size assistance unit.
118.6(a) The initial eligibility determination must disregard the following items:
118.7(1) the employment disregard is 18 percent of the gross earned income whether or
118.8not the member is working full time or part time;
118.9(2) dependent care costs must be deducted from gross earned income for the actual
118.10amount paid for dependent care up to a maximum of $200 per month for each child less
118.11than two years of age, and $175 per month for each child two years of age and older under
118.12this chapter and chapter 119B;
118.13(3) all payments made according to a court order for spousal support or the support
118.14of children not living in the assistance unit's household shall be disregarded from the
118.15income of the person with the legal obligation to pay support, provided that, if there has
118.16been a change in the financial circumstances of the person with the legal obligation to pay
118.17support since the support order was entered, the person with the legal obligation to pay
118.18support has petitioned for a modification of the support order; and
118.19(4) an allocation for the unmet need of an ineligible spouse or an ineligible child
118.20under the age of 21 for whom the caregiver is financially responsible and who lives with
118.21the caregiver according to section 256J.36.
118.22(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant
118.23units when at least one member has received MFIP in this state within four months of
118.24the most recent application for MFIP, apply the disregard as defined in section 256J.08,
118.25subdivision 24
, for all unit members.
118.26After initial eligibility is established, the assistance payment calculation is based on
118.27the monthly income test.
118.28EFFECTIVE DATE.This section is effective October 1, 2014, or upon approval
118.29from the United States Department of Agriculture, whichever is later.

118.30    Sec. 27. Minnesota Statutes 2012, section 256J.24, subdivision 5, is amended to read:
118.31    Subd. 5. MFIP transitional standard. The MFIP transitional standard is based
118.32on the number of persons in the assistance unit eligible for both food and cash assistance
118.33unless the restrictions in subdivision 6 on the birth of a child apply. The amount of the
118.34transitional standard is published annually by the Department of Human Services.
119.1EFFECTIVE DATE.This section is effective January 1, 2015.

119.2    Sec. 28. Minnesota Statutes 2012, section 256J.24, subdivision 7, is amended to read:
119.3    Subd. 7. Family wage level. The family wage level is 110 percent of the transitional
119.4standard under subdivision 5 or 6, when applicable, and is the standard used when there is
119.5earned income in the assistance unit. As specified in section 256J.21. If there is earned
119.6income in the assistance unit, earned income is subtracted from the family wage level to
119.7determine the amount of the assistance payment, as specified in section 256J.21. The
119.8assistance payment may not exceed the transitional standard under subdivision 5 or 6,
119.9or the shared household standard under subdivision 9, whichever is applicable, for the
119.10assistance unit.
119.11EFFECTIVE DATE.This section is effective October 1, 2014, or upon approval
119.12from the United States Department of Agriculture, whichever is later.

119.13    Sec. 29. Minnesota Statutes 2012, section 256J.35, is amended to read:
119.14256J.35 AMOUNT OF ASSISTANCE PAYMENT.
119.15Except as provided in paragraphs (a) to (c), the amount of an assistance payment is
119.16equal to the difference between the MFIP standard of need or the Minnesota family wage
119.17level in section 256J.24 and countable income.
119.18(a) Beginning July 1, 2015, MFIP assistance units are eligible for an MFIP housing
119.19assistance grant of $110 per month, unless:
119.20(1) the housing assistance unit is currently receiving public and assisted rental
119.21subsidies provided through the Department of Housing and Urban Development (HUD)
119.22and is subject to section 256J.37, subdivision 3a; or
119.23(2) the assistance unit is a child-only case under section 256J.88.
119.24(a) (b) When MFIP eligibility exists for the month of application, the amount of
119.25the assistance payment for the month of application must be prorated from the date of
119.26application or the date all other eligibility factors are met for that applicant, whichever is
119.27later. This provision applies when an applicant loses at least one day of MFIP eligibility.
119.28(b) (c) MFIP overpayments to an assistance unit must be recouped according to
119.29section 256J.38, subdivision 4.
119.30(c) (d) An initial assistance payment must not be made to an applicant who is not
119.31eligible on the date payment is made.

119.32    Sec. 30. Minnesota Statutes 2012, section 256J.621, is amended to read:
120.1256J.621 WORK PARTICIPATION CASH BENEFITS.
120.2    Subdivision 1. Program characteristics. (a) Effective October 1, 2009, upon
120.3exiting the diversionary work program (DWP) or upon terminating the Minnesota family
120.4investment program with earnings, a participant who is employed may be eligible for work
120.5participation cash benefits of $25 per month to assist in meeting the family's basic needs
120.6as the participant continues to move toward self-sufficiency.
120.7    (b) To be eligible for work participation cash benefits, the participant shall not
120.8receive MFIP or diversionary work program assistance during the month and the
120.9participant or participants must meet the following work requirements:
120.10    (1) if the participant is a single caregiver and has a child under six years of age, the
120.11participant must be employed at least 87 hours per month;
120.12    (2) if the participant is a single caregiver and does not have a child under six years of
120.13age, the participant must be employed at least 130 hours per month; or
120.14    (3) if the household is a two-parent family, at least one of the parents must be
120.15employed 130 hours per month.
120.16    Whenever a participant exits the diversionary work program or is terminated from
120.17MFIP and meets the other criteria in this section, work participation cash benefits are
120.18available for up to 24 consecutive months.
120.19    (c) Expenditures on the program are maintenance of effort state funds under
120.20a separate state program for participants under paragraph (b), clauses (1) and (2).
120.21Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort
120.22funds. Months in which a participant receives work participation cash benefits under this
120.23section do not count toward the participant's MFIP 60-month time limit.
120.24    Subd. 2. Program suspension. (a) Effective December 1, 2014, the work
120.25participation cash benefits program shall be suspended.
120.26(b) The commissioner of human services may reinstate the work participation cash
120.27benefits program if the United States Department of Human Services determines that the
120.28state of Minnesota did not meet the federal TANF work participation rate and sends a
120.29notice of penalty to reduce Minnesota's federal TANF block grant authorized under title I
120.30of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation
120.31Act of 1996, and under Public Law 109-171, the Deficit Reduction Act of 2005.
120.32(c) The commissioner shall notify the chairs and ranking minority members of the
120.33legislative committees with jurisdiction over human services policy and finance of the
120.34potential penalty and the commissioner's plans to reinstate the work participation cash
120.35benefit program within 30 days of the date the commissioner receives notification that
120.36the state failed to meet the federal work participation rate.

121.1    Sec. 31. Minnesota Statutes 2012, section 256J.626, subdivision 7, is amended to read:
121.2    Subd. 7. Performance base funds. (a) For the purpose of this section, the following
121.3terms have the meanings given.
121.4(1) "Caseload Reduction Credit" (CRC) means the measure of how much Minnesota
121.5TANF and separate state program caseload has fallen relative to federal fiscal year 2005
121.6based on caseload data from October 1 to September 30.
121.7(2) "TANF participation rate target" means a 50 percent participation rate reduced by
121.8the CRC for the previous year.
121.9(b) (a) For calendar year 2010 2016 and yearly thereafter, each county and tribe will
121.10 must be allocated 95 100 percent of their initial calendar year allocation. Allocations for
121.11counties and tribes will must be allocated additional funds adjusted based on performance
121.12as follows:
121.13    (1) a county or tribe that achieves the TANF participation rate target or a five
121.14percentage point improvement over the previous year's TANF participation rate under
121.15section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive months for
121.16the most recent year for which the measurements are available, will receive an additional
121.17allocation equal to 2.5 percent of its initial allocation;
121.18    (2) (1) a county or tribe that performs within or above its range of expected
121.19performance on the annualized three-year self-support index under section 256J.751,
121.20subdivision 2
, clause (6), will must receive an additional allocation equal to 2.5 percent of
121.21its initial allocation; and
121.22    (3) a county or tribe that does not achieve the TANF participation rate target or
121.23a five percentage point improvement over the previous year's TANF participation rate
121.24under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive
121.25months for the most recent year for which the measurements are available, will not
121.26receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear
121.27improvement plan with the commissioner; or
121.28    (4) (2) a county or tribe that does not perform within or above performs below its
121.29range of expected performance on the annualized three-year self-support index under
121.30section 256J.751, subdivision 2, clause (6), will not receive an additional allocation equal
121.31to 2.5 percent of its initial allocation until after negotiating for two consecutive years must
121.32negotiate a multiyear improvement plan with the commissioner. If no improvement is
121.33shown by the end of the multiyear plan, the county's or tribe's allocation must be decreased
121.34by 2.5 percent. The decrease must remain in effect until the county or tribe performs
121.35within or above its range of expected performance.
122.1    (c) (b) For calendar year 2009 2016 and yearly thereafter, performance-based funds
122.2for a federally approved tribal TANF program in which the state and tribe have in place a
122.3contract under section 256.01, addressing consolidated funding, will must be allocated
122.4as follows:
122.5    (1) a tribe that achieves the participation rate approved in its federal TANF plan
122.6using the average of 12 consecutive months for the most recent year for which the
122.7measurements are available, will receive an additional allocation equal to 2.5 percent of
122.8its initial allocation; and
122.9    (2) (1) a tribe that performs within or above its range of expected performance on the
122.10annualized three-year self-support index under section 256J.751, subdivision 2, clause (6),
122.11will must receive an additional allocation equal to 2.5 percent of its initial allocation; or
122.12    (3) a tribe that does not achieve the participation rate approved in its federal TANF
122.13plan using the average of 12 consecutive months for the most recent year for which the
122.14measurements are available, will not receive an additional allocation equal to 2.5 percent
122.15of its initial allocation until after negotiating a multiyear improvement plan with the
122.16commissioner; or
122.17    (4) (2) a tribe that does not perform within or above performs below its range of
122.18expected performance on the annualized three-year self-support index under section
122.19256J.751, subdivision 2 , clause (6), will not receive an additional allocation equal to
122.202.5 percent until after negotiating for two consecutive years must negotiate a multiyear
122.21improvement plan with the commissioner. If no improvement is shown by the end of the
122.22multiyear plan, the tribe's allocation must be decreased by 2.5 percent. The decrease must
122.23remain in effect until the tribe performs within or above its range of expected performance.
122.24    (d) (c) Funds remaining unallocated after the performance-based allocations
122.25in paragraph (b) (a) are available to the commissioner for innovation projects under
122.26subdivision 5.
122.27     (1) (d) If available funds are insufficient to meet county and tribal allocations under
122.28paragraph paragraphs (a) and (b), the commissioner may make available for allocation
122.29funds that are unobligated and available from the innovation projects through the end of
122.30the current biennium shall proportionally prorate funds to counties and tribes that qualify
122.31for a bonus under paragraphs (a), clause (1), and (b), clause (2).
122.32    (2) If after the application of clause (1) funds remain insufficient to meet county and
122.33tribal allocations under paragraph (b), the commissioner must proportionally reduce the
122.34allocation of each county and tribe with respect to their maximum allocation available
122.35under paragraph (b).

123.1    Sec. 32. [256J.78] TANF DEMONSTRATION PROJECTS OR WAIVER FROM
123.2FEDERAL RULES AND REGULATIONS.
123.3    Subdivision 1. Duties of the commissioner. The commissioner of human services
123.4may pursue TANF demonstration projects or waivers of TANF requirements from the
123.5United States Department of Health and Human Services as needed to allow the state to
123.6build a more results-oriented Minnesota Family Investment Program to better meet the
123.7needs of Minnesota families.
123.8    Subd. 2. Purpose. The purpose of the TANF demonstration projects or waivers is to:
123.9(1) replace the federal TANF process measure and its complex administrative
123.10requirements with state-developed outcomes measures that track adult employment and
123.11exits from MFIP cash assistance;
123.12(2) simplify programmatic and administrative requirements; and
123.13(3) make other policy or programmatic changes that improve the performance of the
123.14program and the outcomes for participants.
123.15    Subd. 3. Report to legislature. The commissioner shall report to the members of
123.16the legislative committees having jurisdiction over human services issues by March 1,
123.172014, regarding the progress of this waiver or demonstration project.
123.18EFFECTIVE DATE.This section is effective the day following final enactment.

123.19    Sec. 33. Minnesota Statutes 2012, section 256K.45, is amended to read:
123.20256K.45 RUNAWAY AND HOMELESS YOUTH ACT.
123.21    Subdivision 1. Grant program established. The commissioner of human services
123.22shall establish a Homeless Youth Act fund and award grants to providers who are
123.23committed to serving homeless youth and youth at risk of homelessness, to provide
123.24street and community outreach and drop-in programs, emergency shelter programs,
123.25and integrated supportive housing and transitional living programs, consistent with the
123.26program descriptions in this act to reduce the incidence of homelessness among youth.
123.27    Subdivision 1. Subd. 1a. Definitions. (a) The definitions in this subdivision apply
123.28to this section.
123.29(b) "Commissioner" means the commissioner of human services.
123.30(c) "Homeless youth" means a person 21 years of age or younger who is
123.31unaccompanied by a parent or guardian and is without shelter where appropriate care and
123.32supervision are available, whose parent or legal guardian is unable or unwilling to provide
123.33shelter and care, or who lacks a fixed, regular, and adequate nighttime residence. The
123.34following are not fixed, regular, or adequate nighttime residences:
124.1(1) a supervised publicly or privately operated shelter designed to provide temporary
124.2living accommodations;
124.3(2) an institution or a publicly or privately operated shelter designed to provide
124.4temporary living accommodations;
124.5(3) transitional housing;
124.6(4) a temporary placement with a peer, friend, or family member that has not offered
124.7permanent residence, a residential lease, or temporary lodging for more than 30 days; or
124.8(5) a public or private place not designed for, nor ordinarily used as, a regular
124.9sleeping accommodation for human beings.
124.10Homeless youth does not include persons incarcerated or otherwise detained under
124.11federal or state law.
124.12(d) "Youth at risk of homelessness" means a person 21 years of age or younger
124.13whose status or circumstances indicate a significant danger of experiencing homelessness
124.14in the near future. Status or circumstances that indicate a significant danger may include:
124.15(1) youth exiting out-of-home placements; (2) youth who previously were homeless; (3)
124.16youth whose parents or primary caregivers are or were previously homeless; (4) youth
124.17who are exposed to abuse and neglect in their homes; (5) youth who experience conflict
124.18with parents due to chemical or alcohol dependency, mental health disabilities, or other
124.19disabilities; and (6) runaways.
124.20(e) "Runaway" means an unmarried child under the age of 18 years who is absent
124.21from the home of a parent or guardian or other lawful placement without the consent of
124.22the parent, guardian, or lawful custodian.
124.23    Subd. 2. Homeless and runaway youth report. The commissioner shall develop a
124.24 report for homeless youth, youth at risk of homelessness, and runaways. The report shall
124.25include coordination of services as defined under subdivisions 3 to 5 prepare a biennial
124.26report, beginning in February 2015, which provides meaningful information to the
124.27legislative committees having jurisdiction over the issue of homeless youth, that includes,
124.28but is not limited to: (1) a list of the areas of the state with the greatest need for services
124.29and housing for homeless youth, and the level and nature of the needs identified; (2) details
124.30about grants made; (3) the distribution of funds throughout the state based on population
124.31need; (4) follow-up information, if available, on the status of homeless youth and whether
124.32they have stable housing two years after services are provided; and (5) any other outcomes
124.33for populations served to determine the effectiveness of the programs and use of funding.
124.34    Subd. 3. Street and community outreach and drop-in program. Youth drop-in
124.35centers must provide walk-in access to crisis intervention and ongoing supportive services
124.36including one-to-one case management services on a self-referral basis. Street and
125.1community outreach programs must locate, contact, and provide information, referrals,
125.2and services to homeless youth, youth at risk of homelessness, and runaways. Information,
125.3referrals, and services provided may include, but are not limited to:
125.4(1) family reunification services;
125.5(2) conflict resolution or mediation counseling;
125.6(3) assistance in obtaining temporary emergency shelter;
125.7(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
125.8(5) counseling regarding violence, prostitution sexual exploitation, substance abuse,
125.9sexually transmitted diseases, and pregnancy;
125.10(6) referrals to other agencies that provide support services to homeless youth,
125.11youth at risk of homelessness, and runaways;
125.12(7) assistance with education, employment, and independent living skills;
125.13(8) aftercare services;
125.14(9) specialized services for highly vulnerable runaways and homeless youth,
125.15including teen parents, emotionally disturbed and mentally ill youth, and sexually
125.16exploited youth; and
125.17(10) homelessness prevention.
125.18    Subd. 4. Emergency shelter program. (a) Emergency shelter programs must
125.19provide homeless youth and runaways with referral and walk-in access to emergency,
125.20short-term residential care. The program shall provide homeless youth and runaways with
125.21safe, dignified shelter, including private shower facilities, beds, and at least one meal each
125.22day; and shall assist a runaway and homeless youth with reunification with the family or
125.23legal guardian when required or appropriate.
125.24(b) The services provided at emergency shelters may include, but are not limited to:
125.25(1) family reunification services;
125.26(2) individual, family, and group counseling;
125.27(3) assistance obtaining clothing;
125.28(4) access to medical and dental care and mental health counseling;
125.29(5) education and employment services;
125.30(6) recreational activities;
125.31(7) advocacy and referral services;
125.32(8) independent living skills training;
125.33(9) aftercare and follow-up services;
125.34(10) transportation; and
125.35(11) homelessness prevention.
126.1    Subd. 5. Supportive housing and transitional living programs. Transitional
126.2living programs must help homeless youth and youth at risk of homelessness to find and
126.3maintain safe, dignified housing. The program may also provide rental assistance and
126.4related supportive services, or refer youth to other organizations or agencies that provide
126.5such services. Services provided may include, but are not limited to:
126.6(1) educational assessment and referrals to educational programs;
126.7(2) career planning, employment, work skill training, and independent living skills
126.8training;
126.9(3) job placement;
126.10(4) budgeting and money management;
126.11(5) assistance in securing housing appropriate to needs and income;
126.12(6) counseling regarding violence, prostitution sexual exploitation, substance abuse,
126.13sexually transmitted diseases, and pregnancy;
126.14(7) referral for medical services or chemical dependency treatment;
126.15(8) parenting skills;
126.16(9) self-sufficiency support services or life skill training;
126.17(10) aftercare and follow-up services; and
126.18(11) homelessness prevention.
126.19    Subd. 6. Funding. Any Funds appropriated for this section may be expended on
126.20programs described under subdivisions 3 to 5, technical assistance, and capacity building.
126.21Up to four percent of funds appropriated may be used for the purpose of monitoring and
126.22evaluating runaway and homeless youth programs receiving funding under this section.
126.23Funding shall be directed to meet the greatest need, with a significant share of the funding
126.24focused on homeless youth providers in greater Minnesota to meet the greatest need
126.25on a statewide basis.

126.26    Sec. 34. Minnesota Statutes 2012, section 256M.40, subdivision 1, is amended to read:
126.27    Subdivision 1. Formula. The commissioner shall allocate state funds appropriated
126.28under this chapter to each county board on a calendar year basis in an amount determined
126.29according to the formula in paragraphs (a) to (e).
126.30(a) For calendar years 2011 and 2012, the commissioner shall allocate available
126.31funds to each county in proportion to that county's share in calendar year 2010.
126.32(b) For calendar year 2013 and each calendar year thereafter, the commissioner shall
126.33allocate available funds to each county as follows:
126.34(1) 75 percent must be distributed on the basis of the county share in calendar year
126.352012;
127.1(2) five percent must be distributed on the basis of the number of persons residing in
127.2the county as determined by the most recent data of the state demographer;
127.3(3) ten percent must be distributed on the basis of the number of vulnerable children
127.4that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, and in
127.5the county as determined by the most recent data of the commissioner; and
127.6(4) ten percent must be distributed on the basis of the number of vulnerable adults
127.7that are subjects of reports under section 626.557 in the county as determined by the most
127.8recent data of the commissioner.
127.9(c) For calendar year 2014, the commissioner shall allocate available funds to each
127.10county as follows:
127.11(1) 50 percent must be distributed on the basis of the county share in calendar year
127.122012;
127.13(2) Ten percent must be distributed on the basis of the number of persons residing in
127.14the county as determined by the most recent data of the state demographer;
127.15(3) 20 percent must be distributed on the basis of the number of vulnerable children
127.16that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the
127.17county as determined by the most recent data of the commissioner; and
127.18(4) 20 percent must be distributed on the basis of the number of vulnerable adults
127.19that are subjects of reports under section 626.557 in the county as determined by the
127.20most recent data of the commissioner The commissioner is precluded from changing the
127.21formula under this subdivision or recommending a change to the legislature without
127.22public review and input.
127.23(d) For calendar year 2015, the commissioner shall allocate available funds to each
127.24county as follows:
127.25(1) 25 percent must be distributed on the basis of the county share in calendar year
127.262012;
127.27(2) 15 percent must be distributed on the basis of the number of persons residing in
127.28the county as determined by the most recent data of the state demographer;
127.29(3) 30 percent must be distributed on the basis of the number of vulnerable children
127.30that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the
127.31county as determined by the most recent data of the commissioner; and
127.32(4) 30 percent must be distributed on the basis of the number of vulnerable adults
127.33that are subjects of reports under section 626.557 in the county as determined by the most
127.34recent data of the commissioner.
127.35(e) For calendar year 2016 and each calendar year thereafter, the commissioner shall
127.36allocate available funds to each county as follows:
128.1(1) 20 percent must be distributed on the basis of the number of persons residing in
128.2the county as determined by the most recent data of the state demographer;
128.3(2) 40 percent must be distributed on the basis of the number of vulnerable children
128.4that are subjects of reports under chapter 260C and sections 626.556 and 626.5561, in the
128.5county as determined by the most recent data of the commissioner; and
128.6(3) 40 percent must be distributed on the basis of the number of vulnerable adults
128.7that are subjects of reports under section 626.557 in the county as determined by the most
128.8recent data of the commissioner.

128.9    Sec. 35. Minnesota Statutes 2012, section 257.0755, subdivision 1, is amended to read:
128.10    Subdivision 1. Creation. One Each ombudsperson shall operate independently from
128.11but in collaboration with each of the following groups the community-specific board that
128.12appointed the ombudsperson under section 257.0768: the Indian Affairs Council, the
128.13Council on Affairs of Chicano/Latino people, the Council on Black Minnesotans, and
128.14the Council on Asian-Pacific Minnesotans.

128.15    Sec. 36. Minnesota Statutes 2012, section 259A.20, subdivision 4, is amended to read:
128.16    Subd. 4. Reimbursement for special nonmedical expenses. (a) Reimbursement
128.17for special nonmedical expenses is available to children, except those eligible for adoption
128.18assistance based on being an at-risk child.
128.19(b) Reimbursements under this paragraph shall be made only after the adoptive
128.20parent documents that the requested service was denied by the local social service agency,
128.21community agencies, the local school district, the local public health department, the
128.22parent's insurance provider, or the child's program. The denial must be for an eligible
128.23service or qualified item under the program requirements of the applicable agency or
128.24organization.
128.25(c) Reimbursements must be previously authorized, adhere to the requirements and
128.26procedures prescribed by the commissioner, and be limited to:
128.27(1) child care for a child age 12 and younger, or for a child age 13 or 14 who has a
128.28documented disability that requires special instruction for and services by the child care
128.29provider. Child care reimbursements may be made if all available adult caregivers are
128.30employed, unemployed due to a disability as defined in section 259A.01, subdivision 14,
128.31 or attending educational or vocational training programs. Documentation from a qualified
128.32expert that is dated within the last 12 months must be provided to verify the disability. If a
128.33parent is attending an educational or vocational training program, child care reimbursement
128.34is limited to no more than the time necessary to complete the credit requirements for an
129.1associate or baccalaureate degree as determined by the educational institution. Child
129.2care reimbursement is not limited for an adoptive parent completing basic or remedial
129.3education programs needed to prepare for postsecondary education or employment;
129.4(2) respite care provided for the relief of the child's parent up to 504 hours of respite
129.5care annually;
129.6(3) camping up to 14 days per state fiscal year for a child to attend a special needs
129.7camp. The camp must be accredited by the American Camp Association as a special needs
129.8camp in order to be eligible for camp reimbursement;
129.9(4) postadoption counseling to promote the child's integration into the adoptive
129.10family that is provided by the placing agency during the first year following the date of the
129.11adoption decree. Reimbursement is limited to 12 sessions of postadoption counseling;
129.12(5) family counseling that is required to meet the child's special needs.
129.13Reimbursement is limited to the prorated portion of the counseling fees allotted to the
129.14family when the adoptive parent's health insurance or Medicaid pays for the child's
129.15counseling but does not cover counseling for the rest of the family members;
129.16(6) home modifications to accommodate the child's special needs upon which
129.17eligibility for adoption assistance was approved. Reimbursement is limited to once every
129.18five years per child;
129.19(7) vehicle modifications to accommodate the child's special needs upon which
129.20eligibility for adoption assistance was approved. Reimbursement is limited to once every
129.21five years per family; and
129.22(8) burial expenses up to $1,000, if the special needs, upon which eligibility for
129.23adoption assistance was approved, resulted in the death of the child.
129.24(d) The adoptive parent shall submit statements for expenses incurred between July
129.251 and June 30 of a given fiscal year to the state adoption assistance unit within 60 days
129.26after the end of the fiscal year in order for reimbursement to occur.

129.27    Sec. 37. Minnesota Statutes 2012, section 260B.007, subdivision 6, is amended to read:
129.28    Subd. 6. Delinquent child. (a) Except as otherwise provided in paragraphs (b)
129.29and (c), "delinquent child" means a child:
129.30(1) who has violated any state or local law, except as provided in section 260B.225,
129.31subdivision 1
, and except for juvenile offenders as described in subdivisions 16 to 18;
129.32(2) who has violated a federal law or a law of another state and whose case has been
129.33referred to the juvenile court if the violation would be an act of delinquency if committed
129.34in this state or a crime or offense if committed by an adult;
130.1(3) who has escaped from confinement to a state juvenile correctional facility after
130.2being committed to the custody of the commissioner of corrections; or
130.3(4) who has escaped from confinement to a local juvenile correctional facility after
130.4being committed to the facility by the court.
130.5(b) The term delinquent child does not include a child alleged to have committed
130.6murder in the first degree after becoming 16 years of age, but the term delinquent child
130.7does include a child alleged to have committed attempted murder in the first degree.
130.8(c) The term delinquent child does not include a child under the age of 16 years
130.9 alleged to have engaged in conduct which would, if committed by an adult, violate any
130.10federal, state, or local law relating to being hired, offering to be hired, or agreeing to be
130.11hired by another individual to engage in sexual penetration or sexual conduct.
130.12EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
130.13offenses committed on or after that date.

130.14    Sec. 38. Minnesota Statutes 2012, section 260B.007, subdivision 16, is amended to read:
130.15    Subd. 16. Juvenile petty offender; juvenile petty offense. (a) "Juvenile petty
130.16offense" includes a juvenile alcohol offense, a juvenile controlled substance offense,
130.17a violation of section 609.685, or a violation of a local ordinance, which by its terms
130.18prohibits conduct by a child under the age of 18 years which would be lawful conduct if
130.19committed by an adult.
130.20(b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also
130.21includes an offense that would be a misdemeanor if committed by an adult.
130.22(c) "Juvenile petty offense" does not include any of the following:
130.23(1) a misdemeanor-level violation of section 518B.01, 588.20, 609.224, 609.2242,
130.24609.324 , subdivision 2 or 3, 609.5632, 609.576, 609.66, 609.746, 609.748, 609.79,
130.25or 617.23;
130.26(2) a major traffic offense or an adult court traffic offense, as described in section
130.27260B.225 ;
130.28(3) a misdemeanor-level offense committed by a child whom the juvenile court
130.29previously has found to have committed a misdemeanor, gross misdemeanor, or felony
130.30offense; or
130.31(4) a misdemeanor-level offense committed by a child whom the juvenile court
130.32has found to have committed a misdemeanor-level juvenile petty offense on two or
130.33more prior occasions, unless the county attorney designates the child on the petition
130.34as a juvenile petty offender notwithstanding this prior record. As used in this clause,
131.1"misdemeanor-level juvenile petty offense" includes a misdemeanor-level offense that
131.2would have been a juvenile petty offense if it had been committed on or after July 1, 1995.
131.3(d) A child who commits a juvenile petty offense is a "juvenile petty offender." The
131.4term juvenile petty offender does not include a child under the age of 16 years alleged
131.5to have violated any law relating to being hired, offering to be hired, or agreeing to be
131.6hired by another individual to engage in sexual penetration or sexual conduct which, if
131.7committed by an adult, would be a misdemeanor.
131.8EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
131.9offenses committed on or after that date.

131.10    Sec. 39. Minnesota Statutes 2012, section 260C.007, subdivision 6, is amended to read:
131.11    Subd. 6. Child in need of protection or services. "Child in need of protection or
131.12services" means a child who is in need of protection or services because the child:
131.13    (1) is abandoned or without parent, guardian, or custodian;
131.14    (2)(i) has been a victim of physical or sexual abuse as defined in section 626.556,
131.15subdivision 2, (ii) resides with or has resided with a victim of child abuse as defined in
131.16subdivision 5 or domestic child abuse as defined in subdivision 13, (iii) resides with or
131.17would reside with a perpetrator of domestic child abuse as defined in subdivision 13 or
131.18child abuse as defined in subdivision 5 or 13, or (iv) is a victim of emotional maltreatment
131.19as defined in subdivision 15;
131.20    (3) is without necessary food, clothing, shelter, education, or other required care
131.21for the child's physical or mental health or morals because the child's parent, guardian,
131.22or custodian is unable or unwilling to provide that care;
131.23    (4) is without the special care made necessary by a physical, mental, or emotional
131.24condition because the child's parent, guardian, or custodian is unable or unwilling to
131.25provide that care;
131.26    (5) is medically neglected, which includes, but is not limited to, the withholding of
131.27medically indicated treatment from a disabled infant with a life-threatening condition. The
131.28term "withholding of medically indicated treatment" means the failure to respond to the
131.29infant's life-threatening conditions by providing treatment, including appropriate nutrition,
131.30hydration, and medication which, in the treating physician's or physicians' reasonable
131.31medical judgment, will be most likely to be effective in ameliorating or correcting all
131.32conditions, except that the term does not include the failure to provide treatment other
131.33than appropriate nutrition, hydration, or medication to an infant when, in the treating
131.34physician's or physicians' reasonable medical judgment:
131.35    (i) the infant is chronically and irreversibly comatose;
132.1    (ii) the provision of the treatment would merely prolong dying, not be effective in
132.2ameliorating or correcting all of the infant's life-threatening conditions, or otherwise be
132.3futile in terms of the survival of the infant; or
132.4    (iii) the provision of the treatment would be virtually futile in terms of the survival
132.5of the infant and the treatment itself under the circumstances would be inhumane;
132.6    (6) is one whose parent, guardian, or other custodian for good cause desires to be
132.7relieved of the child's care and custody, including a child who entered foster care under a
132.8voluntary placement agreement between the parent and the responsible social services
132.9agency under section 260C.227;
132.10    (7) has been placed for adoption or care in violation of law;
132.11    (8) is without proper parental care because of the emotional, mental, or physical
132.12disability, or state of immaturity of the child's parent, guardian, or other custodian;
132.13    (9) is one whose behavior, condition, or environment is such as to be injurious or
132.14dangerous to the child or others. An injurious or dangerous environment may include, but
132.15is not limited to, the exposure of a child to criminal activity in the child's home;
132.16    (10) is experiencing growth delays, which may be referred to as failure to thrive, that
132.17have been diagnosed by a physician and are due to parental neglect;
132.18    (11) has engaged in prostitution as defined in section 609.321, subdivision 9 is a
132.19sexually exploited youth;
132.20    (12) has committed a delinquent act or a juvenile petty offense before becoming
132.21ten years old;
132.22    (13) is a runaway;
132.23    (14) is a habitual truant;
132.24    (15) has been found incompetent to proceed or has been found not guilty by reason
132.25of mental illness or mental deficiency in connection with a delinquency proceeding, a
132.26certification under section 260B.125, an extended jurisdiction juvenile prosecution, or a
132.27proceeding involving a juvenile petty offense; or
132.28(16) has a parent whose parental rights to one or more other children were
132.29involuntarily terminated or whose custodial rights to another child have been involuntarily
132.30transferred to a relative and there is a case plan prepared by the responsible social services
132.31agency documenting a compelling reason why filing the termination of parental rights
132.32petition under section 260C.301, subdivision 3, is not in the best interests of the child; or.
132.33(17) is a sexually exploited youth.
132.34EFFECTIVE DATE.This section is effective August 1, 2014.

132.35    Sec. 40. Minnesota Statutes 2012, section 260C.007, subdivision 31, is amended to read:
133.1    Subd. 31. Sexually exploited youth. "Sexually exploited youth" means an
133.2individual who:
133.3(1) is alleged to have engaged in conduct which would, if committed by an adult,
133.4violate any federal, state, or local law relating to being hired, offering to be hired, or
133.5agreeing to be hired by another individual to engage in sexual penetration or sexual conduct;
133.6(2) is a victim of a crime described in section 609.342, 609.343, 609.344, 609.345,
133.7609.3451 , 609.3453, 609.352, 617.246, or 617.247;
133.8(3) is a victim of a crime described in United States Code, title 18, section 2260;
133.92421; 2422; 2423; 2425; 2425A; or 2256; or
133.10(4) is a sex trafficking victim as defined in section 609.321, subdivision 7b.
133.11EFFECTIVE DATE.This section is effective the day following final enactment.

133.12    Sec. 41. Minnesota Statutes 2012, section 518A.60, is amended to read:
133.13518A.60 COLLECTION; ARREARS ONLY.
133.14(a) Remedies available for the collection and enforcement of support in this chapter
133.15and chapters 256, 257, 518, and 518C also apply to cases in which the child or children
133.16for whom support is owed are emancipated and the obligor owes past support or has an
133.17accumulated arrearage as of the date of the youngest child's emancipation. Child support
133.18arrearages under this section include arrearages for child support, medical support, child
133.19care, pregnancy and birth expenses, and unreimbursed medical expenses as defined in
133.20section 518A.41, subdivision 1, paragraph (h).
133.21(b) This section applies retroactively to any support arrearage that accrued on or
133.22before June 3, 1997, and to all arrearages accruing after June 3, 1997.
133.23(c) Past support or pregnancy and confinement expenses ordered for which the
133.24obligor has specific court ordered terms for repayment may not be enforced using
133.25drivers' and occupational or professional license suspension, credit bureau reporting, and
133.26additional income withholding under section 518A.53, subdivision 10, paragraph (a),
133.27unless the obligor fails to comply with the terms of the court order for repayment.
133.28(d) If an arrearage exists at the time a support order would otherwise terminate
133.29and section 518A.53, subdivision 10, paragraph (c), does not apply to this section, the
133.30arrearage shall be repaid in an amount equal to the current support order until all arrears
133.31have been paid in full, absent a court order to the contrary.
133.32(e) If an arrearage exists according to a support order which fails to establish a
133.33monthly support obligation in a specific dollar amount, the public authority, if it provides
133.34child support services, or the obligee, may establish a payment agreement which shall
134.1equal what the obligor would pay for current support after application of section 518A.34,
134.2plus an additional 20 percent of the current support obligation, until all arrears have been
134.3paid in full. If the obligor fails to enter into or comply with a payment agreement, the
134.4public authority, if it provides child support services, or the obligee, may move the district
134.5court or child support magistrate, if section 484.702 applies, for an order establishing
134.6repayment terms.
134.7(f) If there is no longer a current support order because all of the children of the
134.8order are emancipated, the public authority may discontinue child support services and
134.9close its case under title IV-D of the Social Security Act if:
134.10(1) the arrearage is under $500; or
134.11(2) the arrearage is considered unenforceable by the public authority because there
134.12have been no collections for three years, and all administrative and legal remedies have
134.13been attempted or are determined by the public authority to be ineffective because the
134.14obligor is unable to pay, the obligor has no known income or assets, and there is no
134.15reasonable prospect that the obligor will be able to pay in the foreseeable future.
134.16    (g) At least 60 calendar days before the discontinuation of services under paragraph
134.17(f), the public authority must mail a written notice to the obligee and obligor at the
134.18obligee's and obligor's last known addresses that the public authority intends to close the
134.19child support enforcement case and explaining each party's rights. Seven calendar days
134.20after the first notice is mailed, the public authority must mail a second notice under this
134.21paragraph to the obligee.
134.22    (h) The case must be kept open if the obligee responds before case closure and
134.23provides information that could reasonably lead to collection of arrears. If the case is
134.24closed, the obligee may later request that the case be reopened by completing a new
134.25application for services, if there is a change in circumstances that could reasonably lead to
134.26the collection of arrears.

134.27    Sec. 42. Laws 1998, chapter 407, article 6, section 116, is amended to read:
134.28    Sec. 116. EBT TRANSACTION COSTS; APPROVAL FROM LEGISLATURE.
134.29    The commissioner of human services shall request and receive approval from the
134.30legislature before adjusting the payment to not subsidize retailers for electronic benefit
134.31transfer transaction costs Supplemental Nutrition Assistance Program transactions.
134.32EFFECTIVE DATE.This section is effective 30 days after the commissioner
134.33notifies retailers of the termination of their agreement with the state. The commissioner of
134.34human services must notify the revisor of statutes of that date.

135.1    Sec. 43. Laws 2011, First Special Session chapter 9, article 1, section 3, the effective
135.2date, is amended to read:
135.3EFFECTIVE DATE.This section is effective January 1, 2013 July 1, 2014.
135.4EFFECTIVE DATE.This section is effective retroactively from January 1, 2013.

135.5    Sec. 44. DIRECTION TO COMMISSIONERS; INCOME AND ASSET
135.6EXCLUSION.
135.7(a) The commissioner of human services shall not count conditional cash transfers
135.8made to families participating in a family independence demonstration as income or
135.9assets for purposes of determining or redetermining eligibility for child care assistance
135.10programs under Minnesota Statutes, chapter 119B; general assistance under Minnesota
135.11Statutes, chapter 256D; group residential housing under Minnesota Statutes, chapter 256I;
135.12the Minnesota family investment program, work benefit program, or diversionary work
135.13program under Minnesota Statutes, chapter 256J, during the duration of the demonstration.
135.14(b) The commissioner of human services shall not count conditional cash transfers
135.15made to families participating in a family independence demonstration as income or assets
135.16for purposes of determining or redetermining eligibility for medical assistance under
135.17Minnesota Statutes, chapter 256B, and MinnesotaCare under Minnesota Statutes, chapter
135.18256L, except that for enrollees subject to a modified adjusted gross income calculation to
135.19determine eligibility, the conditional cash transfer payments shall be counted as income if
135.20they are included on the enrollee's federal tax return as income, or if the payments can be
135.21taken into account in the month of receipt as a lump sum payment.
135.22(c) The commissioner of the Minnesota Housing Finance Agency shall not count
135.23conditional cash transfers made to families participating in a family independence
135.24demonstration as income or assets for purposes of determining or redetermining eligibility
135.25for housing assistance programs under Minnesota Statutes, section 462A.201, during
135.26the duration of the demonstration.
135.27(d) For the purposes of this section:
135.28(1) "conditional cash transfer" means a payment made to a participant in a family
135.29independence demonstration by a sponsoring organization to incent, support, or facilitate
135.30participation; and
135.31(2) "family independence demonstration" means an initiative sponsored or
135.32cosponsored by a governmental or nongovernmental organization, the goal of which is
135.33to facilitate individualized goal-setting and peer support for cohorts of no more than 12
136.1families each toward the development of financial and nonfinancial assets that enable the
136.2participating families to achieve financial independence.
136.3(e) The citizens league shall provide a report to the legislative committees having
136.4jurisdiction over human services issues by July 1, 2016, informing the legislature on the
136.5progress and outcomes of the demonstration under this section.

136.6    Sec. 45. REDUCTION OF YOUTH HOMELESSNESS.
136.7(a) The Minnesota Interagency Council on Homelessness established under the
136.8authority of Minnesota Statutes, section 462A.29, as it updates its statewide plan to
136.9prevent and end homelessness, shall make recommendations on strategies to reduce the
136.10number of youth experiencing homelessness and to prevent homelessness for youth who
136.11are at risk of becoming homeless.
136.12(b) Recommended strategies must take into consideration, to the extent feasible,
136.13issues that contribute to or reduce youth homelessness including, but not limited to, mental
136.14health, chemical dependency, trafficking of youth for sex or other purposes, exiting foster
136.15care, and involvement in gangs. The recommended strategies must include supportive
136.16services as outlined in Minnesota Statutes, section 256K.45, subdivision 5.
136.17(c) The council shall provide an update on the status of its work by December 1,
136.182014, to the legislative committees with jurisdiction over housing, homelessness, and
136.19matters pertaining to youth. If the council determines legislative action is required to
136.20implement recommended strategies, the council shall submit proposals to the legislature at
136.21the earliest possible opportunity.

136.22    Sec. 46. HOUSING ASSISTANCE GRANTS; FORECASTED PROGRAM.
136.23Beginning July 1, 2015, housing assistance grants under Minnesota Statutes, section
136.24256J.35, paragraph (a), must be a forecasted program and the commissioner, with the
136.25approval of the commissioner of management and budget, may transfer unencumbered
136.26appropriation balances within fiscal years of each biennium with other forecasted
136.27programs of the Department of Human Services. The commissioner shall inform the
136.28chairs and ranking minority members of the senate Health and Human Services Finance
136.29Division and the house of representatives Health and Human Services Finance committee
136.30quarterly about transfers made under this provision.

136.31    Sec. 47. PLAN FOR GROUP RESIDENTIAL HOUSING SPECIALTY RATE
136.32AND BANKED BEDS.
137.1The commissioner of human services, in consultation with and cooperation of the
137.2counties, shall review the statewide number and status of group residential housing beds
137.3with rates in excess of the MSA equivalent rate, including banked supplemental service
137.4rate beds. The commissioner shall study the type and amount of supplemental services
137.5delivered or planned for development, and develop a plan for rate setting criteria and
137.6an efficient use of these beds. The commissioner shall review the performance of all
137.7programs that receive supplemental service rates. The plan must require that all beds
137.8receiving supplemental service rates address critical service needs and must establish
137.9quality performance requirements for beds receiving supplemental service rates. The
137.10commissioner shall present the written plan no later than February 1, 2014, to the chairs
137.11and ranking minority members of the house of representatives and senate finance and
137.12policy committees and divisions with jurisdiction over the Department of Human Services.

137.13    Sec. 48. REPEALER.
137.14(a) Minnesota Statutes 2012, section 256J.24, is repealed January 1, 2015.
137.15(b) Minnesota Statutes 2012, section 609.093, is repealed effective the day following
137.16final enactment.

137.17ARTICLE 4
137.18STRENGTHENING CHEMICAL AND MENTAL HEALTH SERVICES

137.19    Section 1. Minnesota Statutes 2012, section 245.462, subdivision 20, is amended to read:
137.20    Subd. 20. Mental illness. (a) "Mental illness" means an organic disorder of the brain
137.21or a clinically significant disorder of thought, mood, perception, orientation, memory, or
137.22behavior that is detailed in a diagnostic codes list published by the commissioner, and that
137.23seriously limits a person's capacity to function in primary aspects of daily living such as
137.24personal relations, living arrangements, work, and recreation.
137.25    (b) An "adult with acute mental illness" means an adult who has a mental illness that
137.26is serious enough to require prompt intervention.
137.27    (c) For purposes of case management and community support services, a "person
137.28with serious and persistent mental illness" means an adult who has a mental illness and
137.29meets at least one of the following criteria:
137.30    (1) the adult has undergone two or more episodes of inpatient care for a mental
137.31illness within the preceding 24 months;
137.32    (2) the adult has experienced a continuous psychiatric hospitalization or residential
137.33treatment exceeding six months' duration within the preceding 12 months;
138.1    (3) the adult has been treated by a crisis team two or more times within the preceding
138.224 months;
138.3    (4) the adult:
138.4    (i) has a diagnosis of schizophrenia, bipolar disorder, major depression,
138.5schizoaffective disorder, or borderline personality disorder;
138.6    (ii) indicates a significant impairment in functioning; and
138.7    (iii) has a written opinion from a mental health professional, in the last three years,
138.8stating that the adult is reasonably likely to have future episodes requiring inpatient or
138.9residential treatment, of a frequency described in clause (1) or (2), unless ongoing case
138.10management or community support services are provided;
138.11    (5) the adult has, in the last three years, been committed by a court as a person who is
138.12mentally ill under chapter 253B, or the adult's commitment has been stayed or continued; or
138.13    (6) the adult (i) was eligible under clauses (1) to (5), but the specified time period
138.14has expired or the adult was eligible as a child under section 245.4871, subdivision 6; and
138.15(ii) has a written opinion from a mental health professional, in the last three years, stating
138.16that the adult is reasonably likely to have future episodes requiring inpatient or residential
138.17treatment, of a frequency described in clause (1) or (2), unless ongoing case management
138.18or community support services are provided; or
138.19    (7) the adult was eligible as a child under section 245.4871, subdivision 6, and is
138.20age 21 or younger.

138.21    Sec. 2. Minnesota Statutes 2012, section 245.4661, subdivision 5, is amended to read:
138.22    Subd. 5. Planning for pilot projects. (a) Each local plan for a pilot project, with
138.23the exception of the placement of a Minnesota specialty treatment facility as defined in
138.24paragraph (c), must be developed under the direction of the county board, or multiple
138.25county boards acting jointly, as the local mental health authority. The planning process
138.26for each pilot shall include, but not be limited to, mental health consumers, families,
138.27advocates, local mental health advisory councils, local and state providers, representatives
138.28of state and local public employee bargaining units, and the department of human services.
138.29As part of the planning process, the county board or boards shall designate a managing
138.30entity responsible for receipt of funds and management of the pilot project.
138.31(b) For Minnesota specialty treatment facilities, the commissioner shall issue a
138.32request for proposal for regions in which a need has been identified for services.
138.33(c) For purposes of this section, "Minnesota specialty treatment facility" is defined
138.34as an intensive rehabilitative mental health service under section 256B.0622, subdivision
138.352, paragraph (b).

139.1    Sec. 3. Minnesota Statutes 2012, section 245.4661, subdivision 6, is amended to read:
139.2    Subd. 6. Duties of commissioner. (a) For purposes of the pilot projects, the
139.3commissioner shall facilitate integration of funds or other resources as needed and
139.4requested by each project. These resources may include:
139.5(1) residential services funds administered under Minnesota Rules, parts 9535.2000
139.6to 9535.3000, in an amount to be determined by mutual agreement between the project's
139.7managing entity and the commissioner of human services after an examination of the
139.8county's historical utilization of facilities located both within and outside of the county
139.9and licensed under Minnesota Rules, parts 9520.0500 to 9520.0690;
139.10(2) community support services funds administered under Minnesota Rules, parts
139.119535.1700 to 9535.1760;
139.12(3) other mental health special project funds;
139.13(4) medical assistance, general assistance medical care, MinnesotaCare and group
139.14residential housing if requested by the project's managing entity, and if the commissioner
139.15determines this would be consistent with the state's overall health care reform efforts; and
139.16(5) regional treatment center resources consistent with section 246.0136, subdivision
139.171
.; and
139.18(6) funds transferred from section 246.18, subdivision 8, for grants to providers to
139.19participate in mental health specialty treatment services, awarded to providers through
139.20a request for proposal process.
139.21(b) The commissioner shall consider the following criteria in awarding start-up and
139.22implementation grants for the pilot projects:
139.23(1) the ability of the proposed projects to accomplish the objectives described in
139.24subdivision 2;
139.25(2) the size of the target population to be served; and
139.26(3) geographical distribution.
139.27(c) The commissioner shall review overall status of the projects initiatives at least
139.28every two years and recommend any legislative changes needed by January 15 of each
139.29odd-numbered year.
139.30(d) The commissioner may waive administrative rule requirements which are
139.31incompatible with the implementation of the pilot project.
139.32(e) The commissioner may exempt the participating counties from fiscal sanctions
139.33for noncompliance with requirements in laws and rules which are incompatible with the
139.34implementation of the pilot project.
139.35(f) The commissioner may award grants to an entity designated by a county board or
139.36group of county boards to pay for start-up and implementation costs of the pilot project.

140.1    Sec. 4. Minnesota Statutes 2012, section 245.4682, subdivision 2, is amended to read:
140.2    Subd. 2. General provisions. (a) In the design and implementation of reforms to
140.3the mental health system, the commissioner shall:
140.4    (1) consult with consumers, families, counties, tribes, advocates, providers, and
140.5other stakeholders;
140.6    (2) bring to the legislature, and the State Advisory Council on Mental Health, by
140.7January 15, 2008, recommendations for legislation to update the role of counties and to
140.8clarify the case management roles, functions, and decision-making authority of health
140.9plans and counties, and to clarify county retention of the responsibility for the delivery of
140.10social services as required under subdivision 3, paragraph (a);
140.11    (3) withhold implementation of any recommended changes in case management
140.12roles, functions, and decision-making authority until after the release of the report due
140.13January 15, 2008;
140.14    (4) ensure continuity of care for persons affected by these reforms including
140.15ensuring client choice of provider by requiring broad provider networks and developing
140.16mechanisms to facilitate a smooth transition of service responsibilities;
140.17    (5) provide accountability for the efficient and effective use of public and private
140.18resources in achieving positive outcomes for consumers;
140.19    (6) ensure client access to applicable protections and appeals; and
140.20    (7) make budget transfers necessary to implement the reallocation of services and
140.21client responsibilities between counties and health care programs that do not increase the
140.22state and county costs and efficiently allocate state funds.
140.23    (b) When making transfers under paragraph (a) necessary to implement movement
140.24of responsibility for clients and services between counties and health care programs,
140.25the commissioner, in consultation with counties, shall ensure that any transfer of state
140.26grants to health care programs, including the value of case management transfer grants
140.27under section 256B.0625, subdivision 20, does not exceed the value of the services being
140.28transferred for the latest 12-month period for which data is available. The commissioner
140.29may make quarterly adjustments based on the availability of additional data during the
140.30first four quarters after the transfers first occur. If case management transfer grants under
140.31section 256B.0625, subdivision 20, are repealed and the value, based on the last year prior
140.32to repeal, exceeds the value of the services being transferred, the difference becomes an
140.33ongoing part of each county's adult and children's mental health grants under sections
140.34245.4661 , 245.4889, and 256E.12.
140.35    (c) This appropriation is not authorized to be expended after December 31, 2010,
140.36unless approved by the legislature.

141.1    Sec. 5. Minnesota Statutes 2012, section 245.4871, subdivision 26, is amended to read:
141.2    Subd. 26. Mental health practitioner. "Mental health practitioner" means a person
141.3providing services to children with emotional disturbances. A mental health practitioner
141.4must have training and experience in working with children. A mental health practitioner
141.5must be qualified in at least one of the following ways:
141.6(1) holds a bachelor's degree in one of the behavioral sciences or related fields from
141.7an accredited college or university and:
141.8(i) has at least 2,000 hours of supervised experience in the delivery of mental health
141.9services to children with emotional disturbances; or
141.10(ii) is fluent in the non-English language of the ethnic group to which at least 50
141.11percent of the practitioner's clients belong, completes 40 hours of training in the delivery
141.12of services to children with emotional disturbances, and receives clinical supervision from
141.13a mental health professional at least once a week until the requirement of 2,000 hours
141.14of supervised experience is met;
141.15(2) has at least 6,000 hours of supervised experience in the delivery of mental
141.16health services to children with emotional disturbances; hours worked as a mental health
141.17behavioral aide I or II under section 256B.0943, subdivision 7, may be included in the
141.186,000 hours of experience;
141.19(3) is a graduate student in one of the behavioral sciences or related fields and is
141.20formally assigned by an accredited college or university to an agency or facility for
141.21clinical training; or
141.22(4) holds a master's or other graduate degree in one of the behavioral sciences or
141.23related fields from an accredited college or university and has less than 4,000 hours
141.24post-master's experience in the treatment of emotional disturbance.

141.25    Sec. 6. Minnesota Statutes 2012, section 245.4875, subdivision 8, is amended to read:
141.26    Subd. 8. Transition services. The county board may continue to provide mental
141.27health services as defined in sections 245.487 to 245.4889 to persons over 18 years of
141.28age, but under 21 years of age, if the person was receiving case management or family
141.29community support services prior to age 18, and if one of the following conditions is met:
141.30(1) the person is receiving special education services through the local school
141.31district; or
141.32(2) it is in the best interest of the person to continue services defined in sections
141.33245.487 to 245.4889; or
141.34(3) the person is requesting services and the services are medically necessary.

142.1    Sec. 7. Minnesota Statutes 2012, section 245.4881, subdivision 1, is amended to read:
142.2    Subdivision 1. Availability of case management services. (a) The county board
142.3shall provide case management services for each child with severe emotional disturbance
142.4who is a resident of the county and the child's family who request or consent to the services.
142.5Case management services may be continued must be offered to be provided for a child with
142.6a serious emotional disturbance who is over the age of 18 consistent with section 245.4875,
142.7subdivision 8
, or the child's legal representative, provided the child's service needs can be
142.8met within the children's service system. Before discontinuing case management services
142.9under this subdivision for children between the ages of 17 and 21, a transition plan
142.10must be developed. The transition plan must be developed with the child and, with the
142.11consent of a child age 18 or over, the child's parent, guardian, or legal representative. The
142.12transition plan should include plans for health insurance, housing, education, employment,
142.13and treatment. Staffing ratios must be sufficient to serve the needs of the clients. The case
142.14manager must meet the requirements in section 245.4871, subdivision 4.
142.15(b) Except as permitted by law and the commissioner under demonstration projects,
142.16case management services provided to children with severe emotional disturbance eligible
142.17for medical assistance must be billed to the medical assistance program under sections
142.18256B.02, subdivision 8 , and 256B.0625.
142.19(c) Case management services are eligible for reimbursement under the medical
142.20assistance program. Costs of mentoring, supervision, and continuing education may be
142.21included in the reimbursement rate methodology used for case management services under
142.22the medical assistance program.

142.23    Sec. 8. Minnesota Statutes 2012, section 246.18, subdivision 8, is amended to read:
142.24    Subd. 8. State-operated services account. (a) The state-operated services account is
142.25established in the special revenue fund. Revenue generated by new state-operated services
142.26listed under this section established after July 1, 2010, that are not enterprise activities must
142.27be deposited into the state-operated services account, unless otherwise specified in law:
142.28(1) intensive residential treatment services;
142.29(2) foster care services; and
142.30(3) psychiatric extensive recovery treatment services.
142.31(b) Funds deposited in the state-operated services account are available to the
142.32commissioner of human services for the purposes of:
142.33(1) providing services needed to transition individuals from institutional settings
142.34within state-operated services to the community when those services have no other
142.35adequate funding source;
143.1(2) grants to providers participating in mental health specialty treatment services
143.2under section 245.4661; and
143.3(3) to fund the operation of the Intensive Residential Treatment Service program in
143.4Willmar.

143.5    Sec. 9. Minnesota Statutes 2012, section 246.18, is amended by adding a subdivision
143.6to read:
143.7    Subd. 9. Transfers. The commissioner may transfer state mental health grant funds
143.8to the account in subdivision 8 for noncovered allowable costs of a provider certified and
143.9licensed under section 256B.0622 and operating under section 246.014.

143.10    Sec. 10. Minnesota Statutes 2012, section 246.54, is amended to read:
143.11246.54 LIABILITY OF COUNTY; REIMBURSEMENT.
143.12    Subdivision 1. County portion for cost of care. (a) Except for chemical
143.13dependency services provided under sections 254B.01 to 254B.09, the client's county
143.14shall pay to the state of Minnesota a portion of the cost of care provided in a regional
143.15treatment center or a state nursing facility to a client legally settled in that county. A
143.16county's payment shall be made from the county's own sources of revenue and payments
143.17shall equal a percentage of the cost of care, as determined by the commissioner, for each
143.18day, or the portion thereof, that the client spends at a regional treatment center or a state
143.19nursing facility according to the following schedule:
143.20    (1) zero percent for the first 30 days;
143.21    (2) 20 percent for days 31 to 60; and
143.22    (3) 50 75 percent for any days over 60.
143.23    (b) The increase in the county portion for cost of care under paragraph (a), clause
143.24(3), shall be imposed when the treatment facility has determined that it is clinically
143.25appropriate for the client to be discharged.
143.26    (c) If payments received by the state under sections 246.50 to 246.53 exceed 80
143.27percent of the cost of care for days 31 to 60, or 50 25 percent for days over 60, the county
143.28shall be responsible for paying the state only the remaining amount. The county shall
143.29not be entitled to reimbursement from the client, the client's estate, or from the client's
143.30relatives, except as provided in section 246.53.
143.31    Subd. 2. Exceptions. (a) Subdivision 1 does not apply to services provided at the
143.32Minnesota Security Hospital or the Minnesota extended treatment options program. For
143.33services at these facilities the Minnesota Security Hospital, a county's payment shall be
143.34made from the county's own sources of revenue and payments shall be paid as follows:.
144.1Excluding the state-operated forensic transition service, payments to the state from the
144.2county shall equal ten percent of the cost of care, as determined by the commissioner, for
144.3each day, or the portion thereof, that the client spends at the facility. For the state-operated
144.4forensic transition service, payments to the state from the county shall equal 50 percent of
144.5the cost of care, as determined by the commissioner, for each day, or the portion thereof,
144.6that the client spends in the program. If payments received by the state under sections
144.7246.50 to 246.53 for services provided at the Minnesota Security Hospital, excluding the
144.8state-operated forensic transition service, exceed 90 percent of the cost of care, the county
144.9shall be responsible for paying the state only the remaining amount. If payments received
144.10by the state under sections 246.50 to 246.53 for the state-operated forensic transition service
144.11exceed 50 percent of the cost of care, the county shall be responsible for paying the state
144.12only the remaining amount. The county shall not be entitled to reimbursement from the
144.13client, the client's estate, or from the client's relatives, except as provided in section 246.53.
144.14    (b) Regardless of the facility to which the client is committed, subdivision 1 does
144.15not apply to the following individuals:
144.16    (1) clients who are committed as mentally ill and dangerous under section 253B.02,
144.17subdivision 17;
144.18    (2) (1) clients who are committed as sexual psychopathic personalities under section
144.19253B.02, subdivision 18b ; and
144.20    (3) (2) clients who are committed as sexually dangerous persons under section
144.21253B.02 , subdivision 18c.
144.22    For each of the individuals in clauses (1) to (3), the payment by the county to the state
144.23shall equal ten percent of the cost of care for each day as determined by the commissioner.

144.24    Sec. 11. Minnesota Statutes 2012, section 253B.10, subdivision 1, is amended to read:
144.25    Subdivision 1. Administrative requirements. (a) When a person is committed,
144.26the court shall issue a warrant or an order committing the patient to the custody of the
144.27head of the treatment facility. The warrant or order shall state that the patient meets the
144.28statutory criteria for civil commitment.
144.29(b) The commissioner shall prioritize patients being admitted from jail or a
144.30correctional institution who are:
144.31(1) ordered confined in a state hospital for an examination under Minnesota Rules of
144.32Criminal Procedure, rules 20.01, subdivision 4, paragraph (a), and 20.02, subdivision 2;
144.33(2) under civil commitment for competency treatment and continuing supervision
144.34under Minnesota Rules of Criminal Procedure, rule 20.01, subdivision 7;
145.1(3) found not guilty by reason of mental illness under Minnesota Rules of Criminal
145.2Procedure, rule 20.02, subdivision 8, and under civil commitment or are ordered to be
145.3detained in a state hospital or other facility pending completion of the civil commitment
145.4proceedings; or
145.5(4) committed under this chapter to the commissioner after dismissal of the patient's
145.6criminal charges.
145.7Patients described in this paragraph must be admitted to a service operated by the
145.8commissioner within 48 hours. The commitment must be ordered by the court as provided
145.9in section 253B.09, subdivision 1, paragraph (c).
145.10(c) Upon the arrival of a patient at the designated treatment facility, the head of the
145.11facility shall retain the duplicate of the warrant and endorse receipt upon the original
145.12warrant or acknowledge receipt of the order. The endorsed receipt or acknowledgment
145.13must be filed in the court of commitment. After arrival, the patient shall be under the
145.14control and custody of the head of the treatment facility.
145.15(d) Copies of the petition for commitment, the court's findings of fact and
145.16conclusions of law, the court order committing the patient, the report of the examiners,
145.17and the prepetition report shall be provided promptly to the treatment facility.

145.18    Sec. 12. Minnesota Statutes 2012, section 254B.13, is amended to read:
145.19254B.13 PILOT PROJECTS; CHEMICAL HEALTH CARE.
145.20    Subdivision 1. Authorization for navigator pilot projects. The commissioner may
145.21approve and implement navigator pilot projects developed under the planning process
145.22required under Laws 2009, chapter 79, article 7, section 26, to provide alternatives to and
145.23enhance coordination of the delivery of chemical health services required under section
145.24254B.03 .
145.25    Subd. 2. Program design and implementation. (a) The commissioner and
145.26counties participating in the navigator pilot projects shall continue to work in partnership
145.27to refine and implement the navigator pilot projects initiated under Laws 2009, chapter
145.2879, article 7, section 26.
145.29(b) The commissioner and counties participating in the navigator pilot projects shall
145.30complete the planning phase by June 30, 2010, and, if approved by the commissioner for
145.31implementation, enter into agreements governing the operation of the navigator pilot
145.32projects with implementation scheduled no earlier than July 1, 2010.
145.33    Subd. 2a. Eligibility for navigator pilot program. (a) To be considered for
145.34participation in a navigator pilot program, an individual must:
145.35(1) be a resident of a county with an approved navigator program;
146.1(2) be eligible for consolidated chemical dependency treatment fund services;
146.2(3) be a voluntary participant in the navigator program;
146.3(4) satisfy one of the following items:
146.4(i) have at least one severity rating of three or above in dimension four, five, or six in
146.5a comprehensive assessment under Minnesota Rules, part 9530.6422; or
146.6(ii) have at least one severity rating of two or above in dimension four, five, or six in
146.7a comprehensive assessment under Minnesota Rules, part 9530.6422, and be currently
146.8participating in a Rule 31 treatment program under Minnesota Rules, parts 9530.6405 to
146.99530.6505, or be within 60 days following discharge after participation in a Rule 31
146.10treatment program; and
146.11(5) have had at least two treatment episodes in the past two years, not limited
146.12to episodes reimbursed by the consolidated chemical dependency treatment funds. An
146.13admission to an emergency room, a detoxification program, or a hospital may be substituted
146.14for one treatment episode if it resulted from the individual's substance use disorder.
146.15(b) New eligibility criteria may be added as mutually agreed upon by the
146.16commissioner and participating navigator programs.
146.17    Subd. 3. Program evaluation. The commissioner shall evaluate navigator pilot
146.18projects under this section and report the results of the evaluation to the chairs and
146.19ranking minority members of the legislative committees with jurisdiction over chemical
146.20health issues by January 15, 2014. Evaluation of the navigator pilot projects must be
146.21based on outcome evaluation criteria negotiated with the navigator pilot projects prior
146.22to implementation.
146.23    Subd. 4. Notice of navigator pilot project discontinuation. Each county's
146.24participation in the navigator pilot project may be discontinued for any reason by the county
146.25or the commissioner of human services after 30 days' written notice to the other party.
146.26Any unspent funds held for the exiting county's pro rata share in the special revenue fund
146.27under the authority in subdivision 5, paragraph (d), shall be transferred to the consolidated
146.28chemical dependency treatment fund following discontinuation of the pilot project.
146.29    Subd. 5. Duties of commissioner. (a) Notwithstanding any other provisions in
146.30this chapter, the commissioner may authorize navigator pilot projects to use chemical
146.31dependency treatment funds to pay for nontreatment navigator pilot services:
146.32(1) in addition to those authorized under section 254B.03, subdivision 2, paragraph
146.33(a); and
146.34(2) by vendors in addition to those authorized under section 254B.05 when not
146.35providing chemical dependency treatment services.
147.1(b) For purposes of this section, "nontreatment navigator pilot services" include
147.2navigator services, peer support, family engagement and support, housing support, rent
147.3subsidies, supported employment, and independent living skills.
147.4(c) State expenditures for chemical dependency services and nontreatment navigator
147.5pilot services provided by or through the navigator pilot projects must not be greater than
147.6the chemical dependency treatment fund expected share of forecasted expenditures in the
147.7absence of the navigator pilot projects. The commissioner may restructure the schedule of
147.8payments between the state and participating counties under the local agency share and
147.9division of cost provisions under section 254B.03, subdivisions 3 and 4, as necessary to
147.10facilitate the operation of the navigator pilot projects.
147.11(d) To the extent that state fiscal year expenditures within a pilot project are less
147.12than the expected share of forecasted expenditures in the absence of the pilot projects,
147.13the commissioner shall deposit the unexpended funds in a separate account within the
147.14consolidated chemical dependency treatment fund, and make these funds available for
147.15expenditure by the pilot projects the following year. To the extent that treatment and
147.16nontreatment pilot services expenditures within the pilot project exceed the amount
147.17expected in the absence of the pilot projects, the pilot project county or counties are
147.18responsible for the portion of nontreatment pilot services expenditures in excess of the
147.19otherwise expected share of forecasted expenditures.
147.20(e) (d) The commissioner may waive administrative rule requirements that are
147.21incompatible with the implementation of the navigator pilot project, except that any
147.22chemical dependency treatment funded under this section must continue to be provided
147.23by a licensed treatment provider.
147.24(f) (e) The commissioner shall not approve or enter into any agreement related to
147.25navigator pilot projects authorized under this section that puts current or future federal
147.26funding at risk.
147.27(f) The commissioner shall provide participating navigator pilot projects with
147.28transactional data, reports, provider data, and other data generated by county activity to
147.29assess and measure outcomes. This information must be transmitted or made available in
147.30an acceptable form to participating navigator pilot projects at least once every six months
147.31or within a reasonable time following the commissioner's receipt of information from the
147.32counties needed to comply with this paragraph.
147.33    Subd. 6. Duties of county board. The county board, or other county entity that
147.34is approved to administer a navigator pilot project, shall:
147.35(1) administer the navigator pilot project in a manner consistent with the objectives
147.36described in subdivision 2 and the planning process in subdivision 5;
148.1(2) ensure that no one is denied chemical dependency treatment services for which
148.2they would otherwise be eligible under section 254A.03, subdivision 3; and
148.3(3) provide the commissioner with timely and pertinent information as negotiated in
148.4agreements governing operation of the navigator pilot projects.
148.5    Subd. 7. Managed care. An individual who is eligible for the navigator pilot
148.6program under subdivision 2a is excluded from mandatory enrollment in managed care
148.7until these services are included in the health plan's benefit set.
148.8    Subd. 8. Authorization for continuation of navigator pilots. The navigator pilot
148.9projects implemented pursuant to subdivision 1 are authorized to continue operation after
148.10July 1, 2013, under existing agreements governing operation of the pilot projects.
148.11EFFECTIVE DATE.The amendments to subdivisions 1 to 6 and 8 are effective
148.12August 1, 2013. Subdivision 7 is effective July 1, 2013.

148.13    Sec. 13. [254B.14] CONTINUUM OF CARE PILOT PROJECTS; CHEMICAL
148.14HEALTH CARE.
148.15    Subdivision 1. Authorization for continuum of care pilot projects. The
148.16commissioner shall establish chemical dependency continuum of care pilot projects to
148.17begin implementing the measures developed with stakeholder input and identified in the
148.18report completed pursuant to Laws 2012, chapter 247, article 5, section 8. The pilot
148.19projects are intended to improve the effectiveness and efficiency of the service continuum
148.20for chemically dependent individuals in Minnesota while reducing duplication of efforts
148.21and promoting scientifically supported practices.
148.22    Subd. 2. Program implementation. (a) The commissioner, in coordination with
148.23representatives of the Minnesota Association of County Social Service Administrators
148.24and the Minnesota Inter-County Association, shall develop a process for identifying and
148.25selecting interested counties and providers for participation in the continuum of care pilot
148.26projects. There shall be three pilot projects; one representing the northern region, one for
148.27the metro region, and one for the southern region. The selection process of counties and
148.28providers must include consideration of population size, geographic distribution, cultural
148.29and racial demographics, and provider accessibility. The commissioner shall identify
148.30counties and providers that are selected for participation in the continuum of care pilot
148.31projects no later than September 30, 2013.
148.32(b) The commissioner and entities participating in the continuum of care pilot
148.33projects shall enter into agreements governing the operation of the continuum of care pilot
148.34projects. The agreements shall identify pilot project outcomes and include timelines for
148.35implementation and beginning operation of the pilot projects.
149.1(c) Entities that are currently participating in the navigator pilot project are
149.2eligible to participate in the continuum of care pilot project subsequent to or instead of
149.3participating in the navigator pilot project.
149.4(d) The commissioner may waive administrative rule requirements that are
149.5incompatible with implementation of the continuum of care pilot projects.
149.6(e) Notwithstanding section 254A.19, the commissioner may designate noncounty
149.7entities to complete chemical use assessments and placement authorizations required
149.8under section 254A.19 and Minnesota Rules, parts 9530.6600 to 9530.6655. Section
149.9254A.19, subdivision 3, is applicable to the continuum of care pilot projects at the
149.10discretion of the commissioner.
149.11    Subd. 3. Program design. (a) The operation of the pilot projects shall include:
149.12(1) new services that are responsive to the chronic nature of substance use disorder;
149.13(2) telehealth services, when appropriate to address barriers to services;
149.14(3) services that assure integration with the mental health delivery system when
149.15appropriate;
149.16(4) services that address the needs of diverse populations; and
149.17(5) an assessment and access process that permits clients to present directly to a
149.18service provider for a substance use disorder assessment and authorization of services.
149.19(b) Prior to implementation of the continuum of care pilot projects, a utilization
149.20review process must be developed and agreed to by the commissioner, participating
149.21counties, and providers. The utilization review process shall be described in the
149.22agreements governing operation of the continuum of care pilot projects.
149.23    Subd. 4. Notice of project discontinuation. Each entity's participation in the
149.24continuum of care pilot project may be discontinued for any reason by the county or the
149.25commissioner after 30 days' written notice to the entity.
149.26    Subd. 5. Duties of commissioner. (a) Notwithstanding any other provisions in this
149.27chapter, the commissioner may authorize chemical dependency treatment funds to pay for
149.28nontreatment services arranged by continuum of care pilot projects. Individuals who are
149.29currently accessing Rule 31 treatment services are eligible for concurrent participation in
149.30the continuum of care pilot projects.
149.31(b) County expenditures for continuum of care pilot project services shall not
149.32be greater than their expected share of forecasted expenditures in the absence of the
149.33continuum of care pilot projects.
149.34    Subd. 6. Managed care. An individual who is eligible for the continuum of care
149.35pilot project is excluded from mandatory enrollment in managed care unless these services
149.36are included in the health plan's benefit set.
150.1EFFECTIVE DATE.This section is effective August 1, 2013.

150.2    Sec. 14. [256.478] HOME AND COMMUNITY-BASED SERVICES
150.3TRANSITIONS GRANTS.
150.4(a) The commissioner shall make available home and community-based services
150.5transition grants to serve individuals who do not meet eligibility criteria for the medical
150.6assistance program under section 256B.056 or 256B.057, but who otherwise meet the
150.7criteria under section 256B.092, subdivision 13, or 256B.49, subdivision 24.
150.8(b) For the purposes of this section, the commissioner has the authority to transfer
150.9funds between the medical assistance account and the home and community-based
150.10services transitions grants account.
150.11EFFECTIVE DATE.This section is effective July 1, 2013.

150.12    Sec. 15. [256B.0616] MENTAL HEALTH CERTIFIED FAMILY PEER
150.13SPECIALIST.
150.14    Subdivision 1. Scope. Medical assistance covers mental health certified family peer
150.15specialists services, as established in subdivision 2, subject to federal approval, if provided
150.16to recipients who have an emotional disturbance or severe emotional disturbance under
150.17chapter 245, and are provided by a certified family peer specialist who has completed the
150.18training under subdivision 5. A family peer specialist cannot provide services to the
150.19peer specialist's family.
150.20    Subd. 2. Establishment. The commissioner of human services shall establish a
150.21certified family peer specialists program model which:
150.22(1) provides nonclinical family peer support counseling, building on the strengths
150.23of families and helping them achieve desired outcomes;
150.24(2) collaborates with others providing care or support to the family;
150.25(3) provides nonadversarial advocacy;
150.26(4) promotes the individual family culture in the treatment milieu;
150.27(5) links parents to other parents in the community;
150.28(6) offers support and encouragement;
150.29(7) assists parents in developing coping mechanisms and problem-solving skills;
150.30(8) promotes resiliency, self-advocacy, development of natural supports, and
150.31maintenance of skills learned in other support services;
150.32(9) establishes and provides peer led parent support groups; and
151.1(10) increases the child's ability to function better within the child's home, school,
151.2and community by educating parents on community resources, assisting with problem
151.3solving, and educating parents on mental illnesses.
151.4    Subd. 3. Eligibility. Family peer support services may be located in inpatient
151.5hospitalization, partial hospitalization, residential treatment, treatment foster care, day
151.6treatment, children's therapeutic services and supports, or crisis services.
151.7    Subd. 4. Peer support specialist program providers. The commissioner shall
151.8develop a process to certify family peer support specialist programs, in accordance with
151.9the federal guidelines, in order for the program to bill for reimbursable services. Family
151.10peer support programs must operate within an existing mental health community provider
151.11or center.
151.12    Subd. 5. Certified family peer specialist training and certification. The
151.13commissioner shall develop a training and certification process for certified family peer
151.14specialists who must be at least 21 years of age and have a high school diploma or its
151.15equivalent. The candidates must have raised or are currently raising a child with a mental
151.16illness, have had experience navigating the children's mental health system, and must
151.17demonstrate leadership and advocacy skills and a strong dedication to family-driven and
151.18family-focused services. The training curriculum must teach participating family peer
151.19specialists specific skills relevant to providing peer support to other parents. In addition
151.20to initial training and certification, the commissioner shall develop ongoing continuing
151.21educational workshops on pertinent issues related to family peer support counseling.

151.22    Sec. 16. Minnesota Statutes 2012, section 256B.0623, subdivision 2, is amended to read:
151.23    Subd. 2. Definitions. For purposes of this section, the following terms have the
151.24meanings given them.
151.25(a) "Adult rehabilitative mental health services" means mental health services
151.26which are rehabilitative and enable the recipient to develop and enhance psychiatric
151.27stability, social competencies, personal and emotional adjustment, and independent living,
151.28parenting skills, and community skills, when these abilities are impaired by the symptoms
151.29of mental illness. Adult rehabilitative mental health services are also appropriate when
151.30provided to enable a recipient to retain stability and functioning, if the recipient would
151.31be at risk of significant functional decompensation or more restrictive service settings
151.32without these services.
151.33(1) Adult rehabilitative mental health services instruct, assist, and support the
151.34recipient in areas such as: interpersonal communication skills, community resource
151.35utilization and integration skills, crisis assistance, relapse prevention skills, health care
152.1directives, budgeting and shopping skills, healthy lifestyle skills and practices, cooking
152.2and nutrition skills, transportation skills, medication education and monitoring, mental
152.3illness symptom management skills, household management skills, employment-related
152.4skills, parenting skills, and transition to community living services.
152.5(2) These services shall be provided to the recipient on a one-to-one basis in the
152.6recipient's home or another community setting or in groups.
152.7(b) "Medication education services" means services provided individually or in
152.8groups which focus on educating the recipient about mental illness and symptoms; the role
152.9and effects of medications in treating symptoms of mental illness; and the side effects of
152.10medications. Medication education is coordinated with medication management services
152.11and does not duplicate it. Medication education services are provided by physicians,
152.12pharmacists, physician's assistants, or registered nurses.
152.13(c) "Transition to community living services" means services which maintain
152.14continuity of contact between the rehabilitation services provider and the recipient and
152.15which facilitate discharge from a hospital, residential treatment program under Minnesota
152.16Rules, chapter 9505, board and lodging facility, or nursing home. Transition to community
152.17living services are not intended to provide other areas of adult rehabilitative mental health
152.18services.

152.19    Sec. 17. Minnesota Statutes 2012, section 256B.0625, subdivision 48, is amended to
152.20read:
152.21    Subd. 48. Psychiatric consultation to primary care practitioners. Effective
152.22January 1, 2006, Medical assistance covers consultation provided by a psychiatrist, a
152.23psychologist, or an advanced practice registered nurse certified in psychiatric mental
152.24health via telephone, e-mail, facsimile, or other means of communication to primary care
152.25practitioners, including pediatricians. The need for consultation and the receipt of the
152.26consultation must be documented in the patient record maintained by the primary care
152.27practitioner. If the patient consents, and subject to federal limitations and data privacy
152.28provisions, the consultation may be provided without the patient present.

152.29    Sec. 18. Minnesota Statutes 2012, section 256B.0625, subdivision 56, is amended to
152.30read:
152.31    Subd. 56. Medical service coordination. (a)(1) Medical assistance covers in-reach
152.32community-based service coordination that is performed through a hospital emergency
152.33department as an eligible procedure under a state healthcare program for a frequent user.
152.34A frequent user is defined as an individual who has frequented the hospital emergency
153.1department for services three or more times in the previous four consecutive months.
153.2In-reach community-based service coordination includes navigating services to address a
153.3client's mental health, chemical health, social, economic, and housing needs, or any other
153.4activity targeted at reducing the incidence of emergency room and other nonmedically
153.5necessary health care utilization.
153.6(2) Medical assistance covers in-reach community-based service coordination that
153.7is performed through a hospital emergency department or inpatient psychiatric unit
153.8for a child or young adult up to age 21 with a serious emotional disturbance who has
153.9frequented the hospital emergency room two or more times in the previous consecutive
153.10three months or been admitted to an inpatient psychiatric unit two or more times in the
153.11previous consecutive four months, or is being discharged to a shelter.
153.12    (b) Reimbursement must be made in 15-minute increments and allowed for up to 60
153.13days posthospital discharge based upon the specific identified emergency department visit
153.14or inpatient admitting event. In-reach community-based service coordination shall seek to
153.15connect frequent users with existing covered services available to them, including, but not
153.16limited to, targeted case management, waiver case management, or care coordination in a
153.17health care home. For children and young adults with a serious emotional disturbance,
153.18in-reach community-based service coordination includes navigating and arranging for
153.19community-based services prior to discharge to address a client's mental health, chemical
153.20health, social, educational, family support and housing needs, or any other activity targeted
153.21at reducing multiple incidents of emergency room use, inpatient readmissions, and other
153.22nonmedically necessary health care utilization. In-reach services shall seek to connect
153.23them with existing covered services, including targeted case management, waiver case
153.24management, care coordination in a health care home, children's therapeutic services and
153.25supports, crisis services, and respite care. Eligible in-reach service coordinators must hold
153.26a minimum of a bachelor's degree in social work, public health, corrections, or a related
153.27field. The commissioner shall submit any necessary application for waivers to the Centers
153.28for Medicare and Medicaid Services to implement this subdivision.
153.29    (c)(1) For the purposes of this subdivision, "in-reach community-based service
153.30coordination" means the practice of a community-based worker with training, knowledge,
153.31skills, and ability to access a continuum of services, including housing, transportation,
153.32chemical and mental health treatment, employment, education, and peer support services,
153.33by working with an organization's staff to transition an individual back into the individual's
153.34living environment. In-reach community-based service coordination includes working
153.35with the individual during their discharge and for up to a defined amount of time in the
153.36individual's living environment, reducing the individual's need for readmittance.
154.1    (2) Hospitals utilizing in-reach service coordinators shall report annually to the
154.2commissioner on the number of adults, children, and adolescents served; the postdischarge
154.3services which they accessed; and emergency department/psychiatric hospitalization
154.4readmissions. The commissioner shall ensure that services and payments provided under
154.5in-reach care coordination do not duplicate services or payments provided under section
154.6256B.0753, 256B.0755, or 256B.0625, subdivision 20.

154.7    Sec. 19. Minnesota Statutes 2012, section 256B.0625, is amended by adding a
154.8subdivision to read:
154.9    Subd. 61. Family psychoeducation services. Effective July 1, 2013, or upon
154.10federal approval, whichever is later, medical assistance covers family psychoeducation
154.11services provided to a child up to age 21 with a diagnosed mental health condition when
154.12identified in the child's individual treatment plan and provided by a licensed mental health
154.13professional, as defined in Minnesota Rules, part 9505.0371, subpart 5, item A, or a
154.14clinical trainee, as defined in Minnesota Rules, part 9505.0371, subpart 5, item C, who
154.15has determined it medically necessary to involve family members in the child's care. For
154.16the purposes of this subdivision, "family psychoeducation services" means information
154.17or demonstration provided to an individual or family as part of an individual, family,
154.18multifamily group, or peer group session to explain, educate, and support the child and
154.19family in understanding a child's symptoms of mental illness, the impact on the child's
154.20development, and needed components of treatment and skill development so that the
154.21individual, family, or group can help the child to prevent relapse, prevent the acquisition
154.22of comorbid disorders, and achieve optimal mental health and long-term resilience.

154.23    Sec. 20. Minnesota Statutes 2012, section 256B.0625, is amended by adding a
154.24subdivision to read:
154.25    Subd. 62. Mental health clinical care consultation. Effective July 1, 2013, or upon
154.26federal approval, whichever is later, medical assistance covers clinical care consultation
154.27for a person up to age 21 who is diagnosed with a complex mental health condition or a
154.28mental health condition that co-occurs with other complex and chronic conditions, when
154.29described in the person's individual treatment plan and provided by a licensed mental health
154.30professional, as defined in Minnesota Rules, part 9505.0371, subpart 5, item A, or a clinical
154.31trainee, as defined in Minnesota Rules, part 9505.0371, subpart 5, item C. For the purposes
154.32of this subdivision, "clinical care consultation" means communication from a treating
154.33mental health professional to other providers or educators not under the clinical supervision
154.34of the treating mental health professional who are working with the same client to inform,
155.1inquire, and instruct regarding the client's symptoms; strategies for effective engagement,
155.2care, and intervention needs; and treatment expectations across service settings; and to
155.3direct and coordinate clinical service components provided to the client and family.

155.4    Sec. 21. Minnesota Statutes 2012, section 256B.092, is amended by adding a
155.5subdivision to read:
155.6    Subd. 13. Waiver allocations for transition populations. (a) The commissioner
155.7shall make available additional waiver allocations and additional necessary resources
155.8to assure timely discharges from the Anoka Metro Regional Treatment Center and the
155.9Minnesota Security Hospital in St. Peter for individuals who meet the following criteria:
155.10(1) are otherwise eligible for the developmental disabilities waiver under this section;
155.11(2) who would otherwise remain at the Anoka Metro Regional Treatment Center or
155.12the Minnesota Security Hospital;
155.13(3) whose discharge would be significantly delayed without the available waiver
155.14allocation; and
155.15(4) who have met treatment objectives and no longer meet hospital level of care.
155.16(b) Additional waiver allocations under this subdivision must meet cost-effectiveness
155.17requirements of the federal approved waiver plan.
155.18(c) Any corporate foster care home developed under this subdivision must be
155.19considered an exception under section 245A.03, subdivision 7, paragraph (a).
155.20EFFECTIVE DATE.This section is effective July 1, 2013.

155.21    Sec. 22. Minnesota Statutes 2012, section 256B.0943, subdivision 1, is amended to read:
155.22    Subdivision 1. Definitions. For purposes of this section, the following terms have
155.23the meanings given them.
155.24(a) "Children's therapeutic services and supports" means the flexible package of
155.25mental health services for children who require varying therapeutic and rehabilitative
155.26levels of intervention. The services are time-limited interventions that are delivered using
155.27various treatment modalities and combinations of services designed to reach treatment
155.28outcomes identified in the individual treatment plan.
155.29(b) "Clinical supervision" means the overall responsibility of the mental health
155.30professional for the control and direction of individualized treatment planning, service
155.31delivery, and treatment review for each client. A mental health professional who is an
155.32enrolled Minnesota health care program provider accepts full professional responsibility
155.33for a supervisee's actions and decisions, instructs the supervisee in the supervisee's work,
155.34and oversees or directs the supervisee's work.
156.1(c) "County board" means the county board of commissioners or board established
156.2under sections 402.01 to 402.10 or 471.59.
156.3(d) "Crisis assistance" has the meaning given in section 245.4871, subdivision 9a.
156.4(e) "Culturally competent provider" means a provider who understands and can
156.5utilize to a client's benefit the client's culture when providing services to the client. A
156.6provider may be culturally competent because the provider is of the same cultural or
156.7ethnic group as the client or the provider has developed the knowledge and skills through
156.8training and experience to provide services to culturally diverse clients.
156.9(f) "Day treatment program" for children means a site-based structured program
156.10consisting of group psychotherapy for more than three individuals and other intensive
156.11therapeutic services provided by a multidisciplinary team, under the clinical supervision
156.12of a mental health professional.
156.13(g) "Diagnostic assessment" has the meaning given in section 245.4871, subdivision
156.1411
.
156.15(h) "Direct service time" means the time that a mental health professional, mental
156.16health practitioner, or mental health behavioral aide spends face-to-face with a client
156.17and the client's family. Direct service time includes time in which the provider obtains
156.18a client's history or provides service components of children's therapeutic services and
156.19supports. Direct service time does not include time doing work before and after providing
156.20direct services, including scheduling, maintaining clinical records, consulting with others
156.21about the client's mental health status, preparing reports, receiving clinical supervision,
156.22and revising the client's individual treatment plan.
156.23(i) "Direction of mental health behavioral aide" means the activities of a mental
156.24health professional or mental health practitioner in guiding the mental health behavioral
156.25aide in providing services to a client. The direction of a mental health behavioral aide
156.26must be based on the client's individualized treatment plan and meet the requirements in
156.27subdivision 6, paragraph (b), clause (5).
156.28(j) "Emotional disturbance" has the meaning given in section 245.4871, subdivision
156.2915
. For persons at least age 18 but under age 21, mental illness has the meaning given in
156.30section 245.462, subdivision 20, paragraph (a).
156.31(k) "Individual behavioral plan" means a plan of intervention, treatment, and
156.32services for a child written by a mental health professional or mental health practitioner,
156.33under the clinical supervision of a mental health professional, to guide the work of the
156.34mental health behavioral aide.
156.35(l) "Individual treatment plan" has the meaning given in section 245.4871,
156.36subdivision 21
.
157.1(m) "Mental health behavioral aide services" means medically necessary one-on-one
157.2activities performed by a trained paraprofessional to assist a child retain or generalize
157.3psychosocial skills as taught by a mental health professional or mental health practitioner
157.4and as described in the child's individual treatment plan and individual behavior plan.
157.5Activities involve working directly with the child or child's family as provided in
157.6subdivision 9, paragraph (b), clause (4).
157.7(n) "Mental health professional" means an individual as defined in section 245.4871,
157.8subdivision 27
, clauses (1) to (6), or tribal vendor as defined in section 256B.02,
157.9subdivision 7
, paragraph (b).
157.10    (o) "Mental health service plan development" includes:
157.11    (1) the development, review, and revision of a child's individual treatment plan,
157.12as provided in Minnesota Rules, part 9505.0371, subpart 7, including involvement of
157.13the client or client's parents, primary caregiver, or other person authorized to consent to
157.14mental health services for the client, and including arrangement of treatment and support
157.15activities specified in the individual treatment plan; and
157.16    (2) administering standardized outcome measurement instruments, determined
157.17and updated by the commissioner, as periodically needed to evaluate the effectiveness
157.18of treatment for children receiving clinical services and reporting outcome measures,
157.19as required by the commissioner.
157.20(o) (p) "Preschool program" means a day program licensed under Minnesota Rules,
157.21parts 9503.0005 to 9503.0175, and enrolled as a children's therapeutic services and
157.22supports provider to provide a structured treatment program to a child who is at least 33
157.23months old but who has not yet attended the first day of kindergarten.
157.24(p) (q) "Skills training" means individual, family, or group training, delivered
157.25by or under the direction of a mental health professional, designed to facilitate the
157.26acquisition of psychosocial skills that are medically necessary to rehabilitate the child
157.27to an age-appropriate developmental trajectory heretofore disrupted by a psychiatric
157.28illness or to self-monitor, compensate for, cope with, counteract, or replace skills deficits
157.29or maladaptive skills acquired over the course of a psychiatric illness. Skills training
157.30is subject to the following requirements:
157.31(1) a mental health professional or a mental health practitioner must provide skills
157.32training;
157.33(2) the child must always be present during skills training; however, a brief absence
157.34of the child for no more than ten percent of the session unit may be allowed to redirect or
157.35instruct family members;
158.1(3) skills training delivered to children or their families must be targeted to the
158.2specific deficits or maladaptations of the child's mental health disorder and must be
158.3prescribed in the child's individual treatment plan;
158.4(4) skills training delivered to the child's family must teach skills needed by parents
158.5to enhance the child's skill development and to help the child use in daily life the skills
158.6previously taught by a mental health professional or mental health practitioner and to
158.7develop or maintain a home environment that supports the child's progressive use skills;
158.8(5) group skills training may be provided to multiple recipients who, because of the
158.9nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from
158.10interaction in a group setting, which must be staffed as follows:
158.11(i) one mental health professional or one mental health practitioner under supervision
158.12of a licensed mental health professional must work with a group of four to eight clients; or
158.13(ii) two mental health professionals or two mental health practitioners under
158.14supervision of a licensed mental health professional, or one professional plus one
158.15practitioner must work with a group of nine to 12 clients.

158.16    Sec. 23. Minnesota Statutes 2012, section 256B.0943, subdivision 2, is amended to read:
158.17    Subd. 2. Covered service components of children's therapeutic services and
158.18supports. (a) Subject to federal approval, medical assistance covers medically necessary
158.19children's therapeutic services and supports as defined in this section that an eligible
158.20provider entity certified under subdivision 4 provides to a client eligible under subdivision
158.213.
158.22(b) The service components of children's therapeutic services and supports are:
158.23(1) individual, family, and group psychotherapy;
158.24(2) individual, family, or group skills training provided by a mental health
158.25professional or mental health practitioner;
158.26(3) crisis assistance;
158.27(4) mental health behavioral aide services; and
158.28(5) direction of a mental health behavioral aide.;
158.29(6) mental health service plan development;
158.30(7) clinical care consultation under section 256B.0625, subdivision 62;
158.31(8) family psychoeducation under section 256B.0625, subdivision 61; and
158.32(9) services provided by a family peer specialist under section 256B.0616.
158.33(c) Service components in paragraph (b) may be combined to constitute therapeutic
158.34programs, including day treatment programs and therapeutic preschool programs.

159.1    Sec. 24. Minnesota Statutes 2012, section 256B.0943, subdivision 7, is amended to read:
159.2    Subd. 7. Qualifications of individual and team providers. (a) An individual
159.3or team provider working within the scope of the provider's practice or qualifications
159.4may provide service components of children's therapeutic services and supports that are
159.5identified as medically necessary in a client's individual treatment plan.
159.6(b) An individual provider must be qualified as:
159.7(1) a mental health professional as defined in subdivision 1, paragraph (n); or
159.8(2) a mental health practitioner as defined in section 245.4871, subdivision 26. The
159.9mental health practitioner must work under the clinical supervision of a mental health
159.10professional; or
159.11(3) a mental health behavioral aide working under the clinical supervision of a
159.12mental health professional to implement the rehabilitative mental health services identified
159.13in the client's individual treatment plan and individual behavior plan.
159.14(A) A level I mental health behavioral aide must:
159.15(i) be at least 18 years old;
159.16(ii) have a high school diploma or general equivalency diploma (GED) or two years
159.17of experience as a primary caregiver to a child with severe emotional disturbance within
159.18the previous ten years; and
159.19(iii) meet preservice and continuing education requirements under subdivision 8.
159.20(B) A level II mental health behavioral aide must:
159.21(i) be at least 18 years old;
159.22(ii) have an associate or bachelor's degree or 4,000 hours of experience in delivering
159.23clinical services in the treatment of mental illness concerning children or adolescents or
159.24complete a certificate program established under subdivision 8a; and
159.25(iii) meet preservice and continuing education requirements in subdivision 8.
159.26(c) A preschool program multidisciplinary team must include at least one mental
159.27health professional and one or more of the following individuals under the clinical
159.28supervision of a mental health professional:
159.29(i) a mental health practitioner; or
159.30(ii) a program person, including a teacher, assistant teacher, or aide, who meets the
159.31qualifications and training standards of a level I mental health behavioral aide.
159.32(d) A day treatment multidisciplinary team must include at least one mental health
159.33professional and one mental health practitioner.

159.34    Sec. 25. Minnesota Statutes 2012, section 256B.0943, is amended by adding a
159.35subdivision to read:
160.1    Subd. 8a. Level II mental health behavioral aide. The commissioner of human
160.2services, in collaboration with children's mental health providers and the Board of Trustees
160.3of the Minnesota State Colleges and Universities, shall develop a certificate program
160.4for level II mental health behavioral aides.

160.5    Sec. 26. Minnesota Statutes 2012, section 256B.0946, is amended to read:
160.6256B.0946 INTENSIVE TREATMENT IN FOSTER CARE.
160.7    Subdivision 1. Required covered service components. (a) Effective July 1, 2006,
160.8 upon enactment and subject to federal approval, medical assistance covers medically
160.9necessary intensive treatment services described under paragraph (b) that are provided
160.10by a provider entity eligible under subdivision 3 to a client eligible under subdivision 2
160.11who is placed in a treatment foster home licensed under Minnesota Rules, parts 2960.3000
160.12to 2960.3340.
160.13(b) Intensive treatment services to children with severe emotional disturbance mental
160.14illness residing in treatment foster care family settings must meet the relevant standards
160.15for mental health services under sections 245.487 to 245.4889. In addition, that comprise
160.16 specific required service components provided in clauses (1) to (5), are reimbursed by
160.17medical assistance must when they meet the following standards:
160.18(1) case management service component must meet the standards in Minnesota
160.19Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10;
160.20(1) psychotherapy provided by a mental health professional as defined in Minnesota
160.21Rules, part 9505.0371, subpart 5, item A, or a clinical trainee, as defined in Minnesota
160.22Rules, part 9505.0371, subpart 5, item C;
160.23(2) psychotherapy, crisis assistance, and skills training components must meet the
160.24 provided according to standards for children's therapeutic services and supports in section
160.25256B.0943 ; and
160.26(3) individual family, and group psychoeducation services under supervision of,
160.27defined in subdivision 1a, paragraph (q), provided by a mental health professional. or a
160.28clinical trainee;
160.29(4) clinical care consultation, as defined in subdivision 1a, and provided by a mental
160.30health professional or a clinical trainee; and
160.31(5) service delivery payment requirements as provided under subdivision 4.
160.32    Subd. 1a. Definitions. For the purposes of this section, the following terms have
160.33the meanings given them.
160.34(a) "Clinical care consultation" means communication from a treating clinician to
160.35other providers working with the same client to inform, inquire, and instruct regarding
161.1the client's symptoms, strategies for effective engagement, care and intervention needs,
161.2and treatment expectations across service settings, including but not limited to the client's
161.3school, social services, day care, probation, home, primary care, medication prescribers,
161.4disabilities services, and other mental health providers and to direct and coordinate clinical
161.5service components provided to the client and family.
161.6(b) "Clinical supervision" means the documented time a clinical supervisor and
161.7supervisee spend together to discuss the supervisee's work, to review individual client
161.8cases, and for the supervisee's professional development. It includes the documented
161.9oversight and supervision responsibility for planning, implementation, and evaluation of
161.10services for a client's mental health treatment.
161.11(c) "Clinical supervisor" means the mental health professional who is responsible
161.12for clinical supervision.
161.13(d) "Clinical trainee" has the meaning given in Minnesota Rules, part 9505.0371,
161.14subpart 5, item C;
161.15(e) "Crisis assistance" has the meaning given in section 245.4871, subdivision 9a,
161.16including the development of a plan that addresses prevention and intervention strategies
161.17to be used in a potential crisis, but does not include actual crisis intervention.
161.18(f) "Culturally appropriate" means providing mental health services in a manner that
161.19incorporates the child's cultural influences, as defined in Minnesota Rules, part 9505.0370,
161.20subpart 9, into interventions as a way to maximize resiliency factors and utilize cultural
161.21strengths and resources to promote overall wellness.
161.22(g) "Culture" means the distinct ways of living and understanding the world that
161.23are used by a group of people and are transmitted from one generation to another or
161.24adopted by an individual.
161.25(h) "Diagnostic assessment" has the meaning given in Minnesota Rules, part
161.269505.0370, subpart 11.
161.27(i) "Family" means a person who is identified by the client or the client's parent or
161.28guardian as being important to the client's mental health treatment. Family may include,
161.29but is not limited to, parents, foster parents, children, spouse, committed partners, former
161.30spouses, persons related by blood or adoption, persons who are a part of the client's
161.31permanency plan, or persons who are presently residing together as a family unit.
161.32(j) "Foster care" has the meaning given in section 260C.007, subdivision 18.
161.33(k) "Foster family setting" means the foster home in which the license holder resides.
161.34(l) "Individual treatment plan" has the meaning given in Minnesota Rules, part
161.359505.0370, subpart 15.
162.1(m) "Mental health practitioner" has the meaning given in Minnesota Rules, part
162.29505.0370, subpart 17.
162.3(n) "Mental health professional" has the meaning given in Minnesota Rules, part
162.49505.0370, subpart 18.
162.5(o) "Mental illness" has the meaning given in Minnesota Rules, part 9505.0370,
162.6subpart 20.
162.7(p) "Parent" has the meaning given in section 260C.007, subdivision 25.
162.8(q) "Psychoeducation services" means information or demonstration provided to
162.9an individual, family, or group to explain, educate, and support the individual, family, or
162.10group in understanding a child's symptoms of mental illness, the impact on the child's
162.11development, and needed components of treatment and skill development so that the
162.12individual, family, or group can help the child to prevent relapse, prevent the acquisition
162.13of comorbid disorders, and achieve optimal mental health and long-term resilience.
162.14(r) "Psychotherapy" has the meaning given in Minnesota Rules, part 9505.0370,
162.15subpart 27.
162.16(s) "Team consultation and treatment planning" means the coordination of treatment
162.17plans and consultation among providers in a group concerning the treatment needs of the
162.18child, including disseminating the child's treatment service schedule to all members of the
162.19service team. Team members must include all mental health professionals working with
162.20the child, a parent, the child unless the team lead or parent deem it clinically inappropriate,
162.21and at least two of the following: an individualized education program case manager;
162.22probation agent; children's mental health case manager; child welfare worker, including
162.23adoption or guardianship worker; primary care provider; foster parent; and any other
162.24member of the child's service team.
162.25    Subd. 2. Determination of client eligibility. A client's eligibility to receive
162.26treatment foster care under this section shall be determined by An eligible recipient is an
162.27individual, from birth through age 20, who is currently placed in a foster home licensed
162.28under Minnesota Rules, parts 2960.3000 to 2960.3340, and has received a diagnostic
162.29assessment, and an evaluation of level of care needed, and development of an individual
162.30treatment plan, as defined in paragraphs (a) to (c) and (b).
162.31(a) The diagnostic assessment must:
162.32(1) meet criteria described in Minnesota Rules, part 9505.0372, subpart 1, and be
162.33conducted by a psychiatrist, licensed psychologist, or licensed independent clinical social
162.34worker that is mental health professional or a clinical trainee;
162.35(2) determine whether or not a child meets the criteria for mental illness, as defined
162.36in Minnesota Rules, part 9505.0370, subpart 20;
163.1(3) document that intensive treatment services are medically necessary within a
163.2foster family setting to ameliorate identified symptoms and functional impairments;
163.3(4) be performed within 180 days prior to before the start of service; and
163.4(2) include current diagnoses on all five axes of the client's current mental health
163.5status;
163.6(3) determine whether or not a child meets the criteria for severe emotional
163.7disturbance in section 245.4871, subdivision 6, or for serious and persistent mental illness
163.8in section 245.462, subdivision 20; and
163.9(4) be completed annually until age 18. For individuals between age 18 and 21,
163.10unless a client's mental health condition has changed markedly since the client's most
163.11recent diagnostic assessment, annual updating is necessary. For the purpose of this section,
163.12"updating" means a written summary, including current diagnoses on all five axes, by a
163.13mental health professional of the client's current mental status and service needs.
163.14(5) be completed as either a standard or extended diagnostic assessment annually to
163.15determine continued eligibility for the service.
163.16(b) The evaluation of level of care must be conducted by the placing county with
163.17an instrument, tribe, or case manager in conjunction with the diagnostic assessment as
163.18described by Minnesota Rules, part 9505.0372, subpart 1, item B, using a validated tool
163.19 approved by the commissioner of human services and not subject to the rulemaking
163.20process, consistent with section 245.4885, subdivision 1, paragraph (d), the result of which
163.21evaluation demonstrates that the child requires intensive intervention without 24-hour
163.22medical monitoring. The commissioner shall update the list of approved level of care
163.23instruments tools annually and publish on the department's Web site.
163.24(c) The individual treatment plan must be:
163.25(1) based on the information in the client's diagnostic assessment;
163.26(2) developed through a child-centered, family driven planning process that identifies
163.27service needs and individualized, planned, and culturally appropriate interventions that
163.28contain specific measurable treatment goals and objectives for the client and treatment
163.29strategies for the client's family and foster family;
163.30(3) reviewed at least once every 90 days and revised; and
163.31(4) signed by the client or, if appropriate, by the client's parent or other person
163.32authorized by statute to consent to mental health services for the client.
163.33    Subd. 3. Eligible mental health services providers. (a) Eligible providers for
163.34intensive children's mental health services in a foster family setting must be certified
163.35by the state and have a service provision contract with a county board or a reservation
164.1tribal council and must be able to demonstrate the ability to provide all of the services
164.2required in this section.
164.3(b) For purposes of this section, a provider agency must have an individual
164.4placement agreement for each recipient and must be a licensed child placing agency, under
164.5Minnesota Rules, parts 9543.0010 to 9543.0150, and either be:
164.6(1) a county county-operated entity certified by the state;
164.7(2) an Indian Health Services facility operated by a tribe or tribal organization under
164.8funding authorized by United States Code, title 25, sections 450f to 450n, or title 3 of the
164.9Indian Self-Determination Act, Public Law 93-638, section 638 (facilities or providers); or
164.10(3) a noncounty entity under contract with a county board.
164.11(c) Certified providers that do not meet the service delivery standards required in
164.12this section shall be subject to a decertification process.
164.13(d) For the purposes of this section, all services delivered to a client must be
164.14provided by a mental health professional or a clinical trainee.
164.15    Subd. 4. Eligible provider responsibilities Service delivery payment
164.16requirements. (a) To be an eligible provider for payment under this section, a provider
164.17must develop and practice written policies and procedures for treatment foster care services
164.18 intensive treatment in foster care, consistent with subdivision 1, paragraph (b), clauses (1),
164.19(2), and (3) and comply with the following requirements in paragraphs (b) to (n).
164.20(b) In delivering services under this section, a treatment foster care provider must
164.21ensure that staff caseload size reasonably enables the provider to play an active role in
164.22service planning, monitoring, delivering, and reviewing for discharge planning to meet
164.23the needs of the client, the client's foster family, and the birth family, as specified in each
164.24client's individual treatment plan.
164.25(b) A qualified clinical supervisor, as defined in and performing in compliance with
164.26Minnesota Rules, part 9505.0371, subpart 5, item D, must supervise the treatment and
164.27provision of services described in this section.
164.28(c) Each client receiving treatment services must receive an extended diagnostic
164.29assessment, as described in Minnesota Rules, part 9505.0372, subpart 1, item C, within
164.3030 days of enrollment in this service unless the client has a previous extended diagnostic
164.31assessment that the client, parent, and mental health professional agree still accurately
164.32describes the client's current mental health functioning.
164.33(d) Each previous and current mental health, school, and physical health treatment
164.34provider must be contacted to request documentation of treatment and assessments that
164.35the eligible client has received. This information must be reviewed and incorporated into
164.36the diagnostic assessment and team consultation and treatment planning review process.
165.1(e) Each client receiving treatment must be assessed for a trauma history, and
165.2the client's treatment plan must document how the results of the assessment will be
165.3incorporated into treatment.
165.4(f) Each client receiving treatment services must have an individual treatment plan
165.5that is reviewed, evaluated, and signed every 90 days using the team consultation and
165.6treatment planning process, as defined in subdivision 1a, paragraph (s).
165.7(g) Care consultation, as defined in subdivision 1a, paragraph (a), must be provided
165.8in accordance with the client's individual treatment plan.
165.9(h) Each client must have a crisis assistance plan within ten days of initiating
165.10services and must have access to clinical phone support 24 hours per day, seven days per
165.11week, during the course of treatment. The crisis plan must demonstrate coordination with
165.12the local or regional mobile crisis intervention team.
165.13(i) Services must be delivered and documented at least three days per week, equaling
165.14at least six hours of treatment per week, unless reduced units of service are specified on
165.15the treatment plan as part of transition or on a discharge plan to another service or level of
165.16care. Documentation must comply with Minnesota Rules, parts 9505.2175 and 9505.2197.
165.17(j) Location of service delivery must be in the client's home, day care setting,
165.18school, or other community-based setting that is specified on the client's individualized
165.19treatment plan.
165.20(k) Treatment must be developmentally and culturally appropriate for the client.
165.21(l) Services must be delivered in continual collaboration and consultation with the
165.22client's medical providers and, in particular, with prescribers of psychotropic medications,
165.23including those prescribed on an off-label basis. Members of the service team must be
165.24aware of the medication regimen and potential side effects.
165.25(m) Parents, siblings, foster parents, and members of the child's permanency plan
165.26must be involved in treatment and service delivery unless otherwise noted in the treatment
165.27plan.
165.28(n) Transition planning for the child must be conducted starting with the first
165.29treatment plan and must be addressed throughout treatment to support the child's
165.30permanency plan and postdischarge mental health service needs.
165.31    Subd. 5. Service authorization. The commissioner will administer authorizations
165.32for services under this section in compliance with section 256B.0625, subdivision 25.
165.33    Subd. 6. Excluded services. (a) Services in clauses (1) to (4) (7) are not covered
165.34under this section and are not eligible for medical assistance payment as components of
165.35intensive treatment in foster care services, but may be billed separately:
166.1(1) treatment foster care services provided in violation of medical assistance policy
166.2in Minnesota Rules, part 9505.0220;
166.3(2) service components of children's therapeutic services and supports
166.4simultaneously provided by more than one treatment foster care provider;
166.5(3) home and community-based waiver services; and
166.6(4) treatment foster care services provided to a child without a level of care
166.7determination according to section 245.4885, subdivision 1.
166.8(1) inpatient psychiatric hospital treatment;
166.9(2) mental health targeted case management;
166.10(3) partial hospitalization;
166.11(4) medication management;
166.12(5) children's mental health day treatment services;
166.13(6) crisis response services under section 256B.0944; and
166.14(7) transportation.
166.15(b) Children receiving intensive treatment in foster care services are not eligible for
166.16medical assistance reimbursement for the following services while receiving intensive
166.17treatment in foster care:
166.18(1) mental health case management services under section 256B.0625, subdivision
166.1920
; and
166.20(2) (1) psychotherapy and skill skills training components of children's therapeutic
166.21services and supports under section 256B.0625, subdivision 35b.;
166.22(2) mental health behavioral aide services as defined in section 256B.0943,
166.23subdivision 1, paragraph (m);
166.24(3) home and community-based waiver services;
166.25(4) mental health residential treatment; and
166.26(5) room and board costs as defined in section 256I.03, subdivision 6.
166.27    Subd. 7. Medical assistance payment and rate setting. The commissioner shall
166.28establish a single daily per-client encounter rate for intensive treatment in foster care
166.29services. The rate must be constructed to cover only eligible services delivered to an
166.30eligible recipient by an eligible provider, as prescribed in subdivision 1, paragraph (b).

166.31    Sec. 27. Minnesota Statutes 2012, section 256B.49, is amended by adding a
166.32subdivision to read:
166.33    Subd. 24. Waiver allocations for transition populations. (a) The commissioner
166.34shall make available additional waiver allocations and additional necessary resources
167.1to assure timely discharges from the Anoka Metro Regional Treatment Center and the
167.2Minnesota Security Hospital in St. Peter for individuals who meet the following criteria:
167.3(1) are otherwise eligible for the brain injury, community alternatives for disabled
167.4individuals, or community alternative care waivers under this section;
167.5(2) who would otherwise remain at the Anoka Metro Regional Treatment Center or
167.6the Minnesota Security Hospital;
167.7(3) whose discharge would be significantly delayed without the available waiver
167.8allocation; and
167.9(4) who have met treatment objectives and no longer meet hospital level of care.
167.10(b) Additional waiver allocations under this subdivision must meet cost-effectiveness
167.11requirements of the federal approved waiver plan.
167.12(c) Any corporate foster care home developed under this subdivision must be
167.13considered an exception under section 245A.03, subdivision 7, paragraph (a).
167.14EFFECTIVE DATE.This section is effective July 1, 2013.

167.15    Sec. 28. Minnesota Statutes 2012, section 256B.761, is amended to read:
167.16256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
167.17(a) Effective for services rendered on or after July 1, 2001, payment for medication
167.18management provided to psychiatric patients, outpatient mental health services, day
167.19treatment services, home-based mental health services, and family community support
167.20services shall be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the
167.2150th percentile of 1999 charges.
167.22(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health
167.23services provided by an entity that operates: (1) a Medicare-certified comprehensive
167.24outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1,
167.251993, with at least 33 percent of the clients receiving rehabilitation services in the most
167.26recent calendar year who are medical assistance recipients, will be increased by 38 percent,
167.27when those services are provided within the comprehensive outpatient rehabilitation
167.28facility and provided to residents of nursing facilities owned by the entity.
167.29(c) The commissioner shall establish three levels of payment for mental health
167.30diagnostic assessment, based on three levels of complexity. The aggregate payment under
167.31the tiered rates must not exceed the projected aggregate payments for mental health
167.32diagnostic assessment under the previous single rate. The new rate structure is effective
167.33January 1, 2011, or upon federal approval, whichever is later.
168.1(d) In addition to rate increases otherwise provided, the commissioner may
168.2restructure coverage policy and rates to improve access to adult rehabilitative mental
168.3health services under section 256B.0623 and related mental health support services under
168.4section 256B.021, subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and
168.52016, the projected state share of increased costs due to this paragraph is transferred
168.6from adult mental health grants under sections 245.4661 and 256E.12. The transfer for
168.7fiscal year 2016 is a permanent base adjustment for subsequent fiscal years. Payments
168.8made to managed care plans and county-based purchasing plans under sections 256B.69,
168.9256B.692, and 256L.12 shall reflect the rate changes described in this paragraph.

168.10    Sec. 29. CHILD AND ADOLESCENT BEHAVIORAL HEALTH SERVICES.
168.11The commissioner of human services shall, in consultation with children's mental
168.12health community providers, hospitals providing care to children, children's mental health
168.13advocates, and other interested parties, develop recommendations and legislation, if
168.14necessary, for the state-operated child and adolescent behavioral health services facility
168.15to ensure that:
168.16(1) the facility and the services provided meet the needs of children with serious
168.17emotional disturbances, autism spectrum disorders, reactive attachment disorder, PTSD,
168.18serious emotional disturbance co-occurring with a developmental disability, borderline
168.19personality disorder, schizophrenia, fetal alcohol spectrum disorders, brain injuries,
168.20violent tendencies, and complex medical issues;
168.21(2) qualified personnel and staff can be recruited who have specific expertise and
168.22training to treat the children in the facility; and
168.23(3) the treatment provided at the facility is high-quality, effective treatment.

168.24    Sec. 30. PILOT PROVIDER INPUT SURVEY OF PEDIATRIC SERVICES AND
168.25CHILDREN'S MENTAL HEALTH SERVICES.
168.26(a) To assess the efficiency and other operational issues in the management of the
168.27health care delivery system, the commissioner of human services shall initiate a provider
168.28survey. The pilot survey shall consist of an electronic survey of providers of pediatric
168.29home health care services and children's mental health services to identify and measure
168.30issues that arise in dealing with the management of medical assistance. To the maximum
168.31degree possible, existing technology shall be used and interns sought to analyze the results.
168.32(b) The survey questions must focus on seven key business functions provided
168.33by medical assistance contractors: provider inquiries; provider outreach and education;
168.34claims processing; appeals; provider enrollment; medical review; and provider audit and
169.1reimbursement. The commissioner must consider the results of the survey in evaluating
169.2and renewing managed care and fee-for-service management contracts.
169.3(c) The commissioner shall report by January 15, 2014, the results of the survey to
169.4the chairs of the health and human services policy and finance committees and shall
169.5make recommendations on the value of implementing an annual survey with a rotating
169.6list of provider groups as a component of the continuous quality improvement system for
169.7medical assistance.

169.8    Sec. 31. MENTALLY ILL AND DANGEROUS COMMITMENTS
169.9STAKEHOLDERS GROUP.
169.10(a) The commissioner of human services, in consultation with the state court
169.11administrator, shall convene a stakeholder group to develop recommendations for the
169.12legislature that address issues raised in the February 2013 Office of the Legislative
169.13Auditor report on State-Operated Services for persons committed to the commissioner as
169.14mentally ill and dangerous under Minnesota Statutes, section 253B.18. Stakeholders must
169.15include representatives from the Department of Human Services, county human services,
169.16county attorneys, commitment defense attorneys, the ombudsman for mental health and
169.17developmental disabilities, the federal protection and advocacy system, and consumers
169.18and advocates for persons with mental illnesses.
169.19(b) The stakeholder group shall provide recommendations in the following areas:
169.20(1) the role of the special review board, including the scope of authority of the
169.21special review board and the authority of the commissioner to accept or reject special
169.22review board recommendations;
169.23(2) review of special review board decisions by the district court;
169.24(3) annual district court review of commitment, scope of court authority, and
169.25appropriate review criteria;
169.26(4) options, including annual court hearing and review, as alternatives to
169.27indeterminate commitment under Minnesota Statutes, section 253B.18; and
169.28(5) extension of the right to petition the court under Minnesota Statutes,
169.29section 253B.17, to those committed under Minnesota Statutes, section 253B.18.
169.30The commissioner of human services and the state court administrator shall provide
169.31relevant data for the group's consideration in developing these recommendations,
169.32including numbers of proceedings in each category and costs associated with court and
169.33administrative proceedings under Minnesota Statutes, section 253B.18.
169.34(c) By January 15, 2014, the commissioner of human services shall submit the
169.35recommendations of the stakeholder group to the chairs and ranking minority members
170.1of the committees of the legislature with jurisdiction over civil commitment and human
170.2services issues.

170.3    Sec. 32. STATE ASSISTANCE TO COUNTIES; TRANSITIONS FOR HIGH
170.4NEEDS POPULATIONS.
170.5(a) Effective immediately, the commissioner of human services shall work with
170.6counties that request assistance to assure timely discharge from Anoka Metro Regional
170.7Treatment Center and the Minnesota Security Hospital for individuals who are ready
170.8for discharge but for whom the county may not have provider resources or appropriate
170.9placement available. Special consideration must be given to uninsured individuals who are
170.10not eligible for medical assistance and who may need continued treatment, and individuals
170.11with complex needs and other factors that hinder county efforts to place the individual in a
170.12safe, affordable setting.
170.13(b) The commissioner shall assure that, given Olmstead court directives and the
170.14role family and friends play in treatment progress, metropolitan area residents are asked
170.15whether they wished to be placed in an Intensive Residential Treatment Service program
170.16at Willmar or Cambridge or to be placed in a location more accessible to family, friends,
170.17and health providers.

170.18ARTICLE 5
170.19DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY

170.20    Section 1. Minnesota Statutes 2012, section 13.461, is amended by adding a
170.21subdivision to read:
170.22    Subd. 7b. Child care provider and recipient fraud investigations. Data related
170.23to child care fraud and recipient fraud investigations are governed by section 245E.01,
170.24subdivision 15.

170.25    Sec. 2. Minnesota Statutes 2012, section 243.166, subdivision 7, is amended to read:
170.26    Subd. 7. Use of data. (a) Except as otherwise provided in subdivision 7a or sections
170.27244.052 and 299C.093, the data provided under this section is private data on individuals
170.28under section 13.02, subdivision 12.
170.29(b) The data may be used only for by law enforcement and corrections agencies for
170.30 law enforcement and corrections purposes.
170.31(c) The commissioner of human services is authorized to have access to the data for:
171.1(1) state-operated services, as defined in section 246.014, are also authorized to
171.2have access to the data for the purposes described in section 246.13, subdivision 2,
171.3paragraph (b); and
171.4(2) purposes of completing background studies under chapter 245C.

171.5    Sec. 3. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision
171.6to read:
171.7    Subd. 4a. Agency background studies. (a) The commissioner shall develop and
171.8implement an electronic process for the regular transfer of new criminal case information
171.9that is added to the Minnesota court information system. The commissioner's system
171.10must include for review only information that relates to individuals who have been the
171.11subject of a background study under this chapter that remain affiliated with the agency
171.12that initiated the background study. For purposes of this paragraph, an individual remains
171.13affiliated with an agency that initiated the background study until the agency informs the
171.14commissioner that the individual is no longer affiliated. When any individual no longer
171.15affiliated according to this paragraph returns to a position requiring a background study
171.16under this chapter, the agency with whom the individual is again affiliated shall initiate
171.17a new background study regardless of the length of time the individual was no longer
171.18affiliated with the agency.
171.19(b) The commissioner shall develop and implement an online system for agencies that
171.20initiate background studies under this chapter to access and maintain records of background
171.21studies initiated by that agency. The system must show all active background study subjects
171.22affiliated with that agency and the status of each individual's background study. Each
171.23agency that initiates background studies must use this system to notify the commissioner
171.24of discontinued affiliation for purposes of the processes required under paragraph (a).

171.25    Sec. 4. Minnesota Statutes 2012, section 245C.08, subdivision 1, is amended to read:
171.26    Subdivision 1. Background studies conducted by Department of Human
171.27Services. (a) For a background study conducted by the Department of Human Services,
171.28the commissioner shall review:
171.29    (1) information related to names of substantiated perpetrators of maltreatment of
171.30vulnerable adults that has been received by the commissioner as required under section
171.31626.557, subdivision 9c , paragraph (j);
171.32    (2) the commissioner's records relating to the maltreatment of minors in licensed
171.33programs, and from findings of maltreatment of minors as indicated through the social
171.34service information system;
172.1    (3) information from juvenile courts as required in subdivision 4 for individuals
172.2listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
172.3    (4) information from the Bureau of Criminal Apprehension, including information
172.4regarding a background study subject's registration in Minnesota as a predatory offender
172.5under section 243.166;
172.6    (5) except as provided in clause (6), information from the national crime information
172.7system when the commissioner has reasonable cause as defined under section 245C.05,
172.8subdivision 5; and
172.9    (6) for a background study related to a child foster care application for licensure or
172.10adoptions, the commissioner shall also review:
172.11    (i) information from the child abuse and neglect registry for any state in which the
172.12background study subject has resided for the past five years; and
172.13    (ii) information from national crime information databases, when the background
172.14study subject is 18 years of age or older.
172.15    (b) Notwithstanding expungement by a court, the commissioner may consider
172.16information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
172.17received notice of the petition for expungement and the court order for expungement is
172.18directed specifically to the commissioner.
172.19    (c) The commissioner shall also review criminal case information received according
172.20to section 245C.04, subdivision 4a, from the Minnesota court information system that
172.21relates to individuals who have already been studied under this chapter and who remain
172.22affiliated with the agency that initiated the background study.

172.23    Sec. 5. [245E.01] CHILD CARE PROVIDER AND RECIPIENT FRAUD
172.24INVESTIGATIONS WITHIN THE CHILD CARE ASSISTANCE PROGRAM.
172.25    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
172.26subdivision have the meanings given them.
172.27(b) "Applicant" has the meaning given in section 119B.011, subdivision 2.
172.28(c) "Child care assistance program" means any of the assistance programs under
172.29chapter 119B.
172.30(d) "Commissioner" means the commissioner of human services.
172.31(e) "Controlling individual" has the meaning given in section 245A.02, subdivision
172.325a.
172.33(f) "County" means a local county child care assistance program staff or
172.34subcontracted staff, or a county investigator acting on behalf of the commissioner.
172.35(g) "Department" means the Department of Human Services.
173.1(h) "Financial misconduct" or "misconduct" means an entity's or individual's acts or
173.2omissions that result in fraud and abuse or error against the Department of Human Services.
173.3(i) "Identify" means to furnish the full name, current or last known address, phone
173.4number, and e-mail address of the individual or business entity.
173.5(j) "License holder" has the meaning given in section 245A.02, subdivision 9.
173.6(k) "Mail" means the use of any mail service with proof of delivery and receipt.
173.7(l) "Provider" means either a provider as defined in section 119B.011, subdivision
173.819, or a legal unlicensed provider as defined in section 119B.011, subdivision 16.
173.9(m) "Recipient" means a family receiving assistance as defined under section
173.10119B.011, subdivision 13.
173.11(n) "Terminate" means revocation of participation in the child care assistance
173.12program.
173.13    Subd. 2. Investigating provider or recipient financial misconduct. The
173.14department shall investigate alleged or suspected financial misconduct by providers and
173.15errors related to payments issued by the child care assistance program under this chapter.
173.16Recipients, employees, and staff may be investigated when the evidence shows that their
173.17conduct is related to the financial misconduct of a provider, license holder, or controlling
173.18individual.
173.19    Subd. 3. Scope of investigations. (a) The department may contact any person,
173.20agency, organization, or other entity that is necessary to an investigation.
173.21(b) The department may examine or interview any individual, document, or piece of
173.22evidence that may lead to information that is relevant to child care assistance program
173.23benefits, payments, and child care provider authorizations. This includes, but is not
173.24limited to:
173.25(1) child care assistance program payments;
173.26(2) services provided by the program or related to child care assistance program
173.27recipients;
173.28(3) services provided to a provider;
173.29(4) provider financial records of any type;
173.30(5) daily attendance records of the children receiving services from the provider;
173.31(6) billings; and
173.32(7) verification of the credentials of a license holder, controlling individual,
173.33employee, staff person, contractor, subcontractor, and entities under contract with the
173.34provider to provide services or maintain service and the provider's financial records
173.35related to those services.
174.1    Subd. 4. Determination of investigation. After completing its investigation, the
174.2department shall issue one of the following determinations:
174.3(1) no violation of child care assistance requirements occurred;
174.4(2) there is insufficient evidence to show that a violation of child care assistance
174.5requirements occurred;
174.6(3) a preponderance of evidence shows a violation of child care assistance program
174.7law, rule, or policy; or
174.8(4) there exists a credible allegation of fraud.
174.9    Subd. 5. Actions or administrative sanctions. (a) After completing the
174.10determination under subdivision 4, the department may take one or more of the actions
174.11or sanctions specified in this subdivision.
174.12(b) The department may take the following actions:
174.13(1) refer the investigation to law enforcement or a county attorney for possible
174.14criminal prosecution;
174.15(2) refer relevant information to the department's licensing division, the child care
174.16assistance program, the Department of Education, the federal child and adult care food
174.17program, or appropriate child or adult protection agency;
174.18(3) enter into a settlement agreement with a provider, license holder, controlling
174.19individual, or recipient; or
174.20(4) refer the matter for review by a prosecutorial agency with appropriate jurisdiction
174.21for possible civil action under the Minnesota False Claims Act, chapter 15C.
174.22(c) In addition to section 256.98, the department may impose sanctions by:
174.23(1) pursuing administrative disqualification through hearings or waivers;
174.24(2) establishing and seeking monetary recovery or recoupment; or
174.25(3) issuing an order of corrective action that states the practices that are violations of
174.26child care assistance program policies, laws, or regulations, and that they must be corrected.
174.27    Subd. 6. Duty to provide access. (a) A provider, license holder, controlling
174.28individual, employee, staff person, or recipient has an affirmative duty to provide access
174.29upon request to information specified under subdivision 8 or the program facility.
174.30(b) Failure to provide access may result in denial or termination of authorizations for
174.31or payments to a recipient, provider, license holder, or controlling individual in the child
174.32care assistance program.
174.33(c) When a provider fails to provide access, a 15-day notice of denial or termination
174.34must be issued to the provider, which prohibits the provider from participating in the child
174.35care assistance program. Notice must be sent to recipients whose children are under the
174.36provider's care pursuant to Minnesota Rules, part 3400.0185.
175.1(d) If the provider continues to fail to provide access at the expiration of the 15-day
175.2notice period, child care assistance program payments to the provider must be denied
175.3beginning the 16th day following notice of the initial failure or refusal to provide access.
175.4The department may rescind the denial based upon good cause if the provider submits in
175.5writing a good cause basis for having failed or refused to provide access. The writing must
175.6be postmarked no later than the 15th day following the provider's notice of initial failure
175.7to provide access. Additionally, the provider, license holder, or controlling individual
175.8must immediately provide complete, ongoing access to the department. Repeated failures
175.9to provide access must, after the initial failure or for any subsequent failure, result in
175.10termination from participation in the child care assistance program.
175.11(e) The department, at its own expense, may photocopy or otherwise duplicate
175.12records referenced in subdivision 8. Photocopying must be done on the provider's
175.13premises on the day of the request or other mutually agreeable time, unless removal of
175.14records is specifically permitted by the provider. If requested, a provider, license holder,
175.15or controlling individual, or a designee, must assist the investigator in duplicating any
175.16record, including a hard copy or electronically stored data, on the day of the request.
175.17(f) A provider, license holder, controlling individual, employee, or staff person must
175.18grant the department access during the department's normal business hours, and any hours
175.19that the program is operated, to examine the provider's program or the records listed in
175.20subdivision 8. A provider shall make records available at the provider's place of business
175.21on the day for which access is requested, unless the provider and the department both agree
175.22otherwise. The department's normal business hours are 8:00 a.m. to 5:00 p.m., Monday
175.23through Friday, excluding state holidays as defined in section 645.44, subdivision 5.
175.24    Subd. 7. Honest and truthful statements. It shall be unlawful for a provider,
175.25license holder, controlling individual, or recipient to:
175.26(1) falsify, conceal, or cover up by any trick, scheme, or device a material fact;
175.27(2) make any materially false, fictitious, or fraudulent statement or representation; or
175.28(3) make or use any false writing or document knowing the same to contain any
175.29materially false, fictitious, or fraudulent statement or entry related to any child care
175.30assistance program services that the provider, license holder, or controlling individual
175.31supplies or in relation to any child care assistance payments received by a provider, license
175.32holder, or controlling individual or to any fraud investigator or law enforcement officer
175.33conducting a financial misconduct investigation.
175.34    Subd. 8. Record retention. (a) The following records must be maintained,
175.35controlled, and made immediately accessible to license holders, providers, and controlling
175.36individuals. The records must be organized and labeled to correspond to categories that
176.1make them easy to identify so that they can be made available immediately upon request
176.2to an investigator acting on behalf of the commissioner at the provider's place of business:
176.3(1) payroll ledgers, canceled checks, bank deposit slips, and any other accounting
176.4records;
176.5(2) daily attendance records required by and that comply with section 119B.125,
176.6subdivision 6;
176.7(3) billing transmittal forms requesting payments from the child care assistance
176.8program and billing adjustments related to child care assistance program payments;
176.9(4) records identifying all persons, corporations, partnerships, and entities with an
176.10ownership or controlling interest in the provider's child care business;
176.11(5) employee records identifying those persons currently employed by the provider's
176.12child care business or who have been employed by the business at any time within the
176.13previous five years. The records must include each employee's name, hourly and annual
176.14salary, qualifications, position description, job title, and dates of employment. In addition,
176.15employee records that must be made available include the employee's time sheets, current
176.16home address of the employee or last known address of any former employee, and
176.17documentation of background studies required under chapter 119B or 245C;
176.18(6) records related to transportation of children in care, including but not limited to:
176.19(i) the dates and times that transportation is provided to children for transportation to
176.20and from the provider's business location for any purpose. For transportation related to
176.21field trips or locations away from the provider's business location, the names and addresses
176.22of those field trips and locations must also be provided;
176.23(ii) the name, business address, phone number, and Web site address, if any, of the
176.24transportation service utilized; and
176.25(iii) all billing or transportation records related to the transportation.
176.26(b) A provider, license holder, or controlling individual must retain all records in
176.27paragraph (a) for at least six years after the last date of service. Microfilm or electronically
176.28stored records satisfy the record keeping requirements of this subdivision.
176.29(c) A provider, license holder, or controlling individual who withdraws or is
176.30terminated from the child care assistance program must retain the records required under
176.31this subdivision and make them available to the department on demand.
176.32(d) If the ownership of a provider changes, the transferor, unless otherwise provided
176.33by law or by written agreement with the transferee, is responsible for maintaining,
176.34preserving, and upon request from the department, making available the records related to
176.35the provider that were generated before the date of the transfer. Any written agreement
176.36affecting this provision must be held in the possession of the transferor and transferee.
177.1The written agreement must be provided to the department or county immediately upon
177.2request, and the written agreement must be retained by the transferor and transferee for six
177.3years after the agreement is fully executed.
177.4(e) In the event of an appealed case, the provider must retain all records required in
177.5this subdivision for the duration of the appeal or six years, whichever is longer.
177.6(f) A provider's use of electronic record keeping or electronic signatures is governed
177.7by chapter 325L.
177.8    Subd. 9. Factors regarding imposition of administrative sanctions. (a) The
177.9department shall consider the following factors in determining the administrative sanctions
177.10to be imposed:
177.11(1) nature and extent of financial misconduct;
177.12(2) history of financial misconduct;
177.13(3) actions taken or recommended by other state agencies, other divisions of the
177.14department, and court and administrative decisions;
177.15(4) prior imposition of sanctions;
177.16(5) size and type of provider;
177.17(6) information obtained through an investigation from any source;
177.18(7) convictions or pending criminal charges; and
177.19(8) any other information relevant to the acts or omissions related to the financial
177.20misconduct.
177.21(b) Any single factor under paragraph (a) may be determinative of the department's
177.22decision of whether and what sanctions are imposed.
177.23    Subd. 10. Written notice of department sanction. (a) The department shall give
177.24notice in writing to a person of an administrative sanction that is to be imposed. The notice
177.25shall be sent by mail as defined in subdivision 1, paragraph (k).
177.26(b) The notice shall state:
177.27(1) the factual basis for the department's determination;
177.28(2) the sanction the department intends to take;
177.29(3) the dollar amount of the monetary recovery or recoupment, if any;
177.30(4) how the dollar amount was computed;
177.31(5) the right to dispute the department's determination and to provide evidence;
177.32(6) the right to appeal the department's proposed sanction; and
177.33(7) the option to meet informally with department staff, and to bring additional
177.34documentation or information, to resolve the issues.
177.35(c) In cases of determinations resulting in denial or termination of payments, in
177.36addition to the requirements of paragraph (b), the notice must state:
178.1(1) the length of the denial or termination;
178.2(2) the requirements and procedures for reinstatement; and
178.3(3) the provider's right to submit documents and written arguments against the
178.4denial or termination of payments for review by the department before the effective date
178.5of denial or termination.
178.6(d) The submission of documents and written argument for review by the department
178.7under paragraph (b), clause (5) or (7), or paragraph (c), clause (3), does not stay the
178.8deadline for filing an appeal.
178.9(e) Unless timely appealed, the effective date of the proposed sanction shall be 30
178.10days after the license holder's, provider's, controlling individual's, or recipient's receipt of
178.11the notice. If a timely appeal is made, the proposed sanction shall be delayed pending
178.12the final outcome of the appeal. Implementation of a proposed sanction following the
178.13resolution of a timely appeal may be postponed if, in the opinion of the department, the
178.14delay of sanction is necessary to protect the health or safety of children in care. The
178.15department may consider the economic hardship of a person in implementing the proposed
178.16sanction, but economic hardship shall not be a determinative factor in implementing the
178.17proposed sanction.
178.18(f) Requests for an informal meeting to attempt to resolve issues and requests
178.19for appeals must be sent or delivered to the department's Office of Inspector General,
178.20Financial Fraud and Abuse Division.
178.21    Subd. 11. Appeal of department sanction under this section. (a) If the department
178.22does not pursue a criminal action against a provider, license holder, controlling individual,
178.23or recipient for financial misconduct, but the department imposes an administrative
178.24sanction under subdivision 5, paragraph (c), any individual or entity against whom the
178.25sanction was imposed may appeal the department's administrative sanction under this
178.26section pursuant to section 119B.16 or 256.045 with the additional requirements in clauses
178.27(1) to (4). An appeal must specify:
178.28(1) each disputed item, the reason for the dispute, and an estimate of the dollar
178.29amount involved for each disputed item, if appropriate;
178.30(2) the computation that is believed to be correct, if appropriate;
178.31(3) the authority in the statute or rule relied upon for each disputed item; and
178.32(4) the name, address, and phone number of the person at the provider's place of
178.33business with whom contact may be made regarding the appeal.
178.34(b) An appeal is considered timely only if postmarked or received by the department's
178.35Appeals Division within 30 days after receiving a notice of department sanction.
179.1(c) Before the appeal hearing, the department may deny or terminate authorizations
179.2or payment to the entity or individual if the department determines that the action is
179.3necessary to protect the public welfare or the interests of the child care assistance program.
179.4    Subd. 12. Consolidated hearings with licensing sanction. If a financial
179.5misconduct sanction has an appeal hearing right and it is timely appealed, and a licensing
179.6sanction exists for which there is an appeal hearing right and the sanction is timely
179.7appealed, and the overpayment recovery action and licensing sanction involve the same
179.8set of facts, the overpayment recovery action and licensing sanction must be consolidated
179.9in the contested case hearing related to the licensing sanction.
179.10    Subd. 13. Grounds for and methods of monetary recovery. (a) The department
179.11may obtain monetary recovery from a provider who has been improperly paid by the
179.12child care assistance program, regardless of whether the error was intentional or county
179.13error. The department does not need to establish a pattern as a precondition of monetary
179.14recovery of erroneous or false billing claims, duplicate billing claims, or billing claims
179.15based on false statements or financial misconduct.
179.16(b) The department shall obtain monetary recovery from providers by the following
179.17means:
179.18(1) permitting voluntary repayment of money, either in lump-sum payment or
179.19installment payments;
179.20(2) using any legal collection process;
179.21(3) deducting or withholding program payments; or
179.22(4) utilizing the means set forth in chapter 16D.
179.23    Subd. 14. Reporting of suspected fraudulent activity. (a) A person who, in
179.24good faith, makes a report of or testifies in any action or proceeding in which financial
179.25misconduct is alleged, and who is not involved in, has not participated in, or has not aided
179.26and abetted, conspired, or colluded in the financial misconduct, shall have immunity from
179.27any liability, civil or criminal, that results by reason of the person's report or testimony.
179.28For the purpose of any proceeding, the good faith of any person reporting or testifying
179.29under this provision shall be presumed.
179.30(b) If a person that is or has been involved in, participated in, aided and abetted,
179.31conspired, or colluded in the financial misconduct reports the financial misconduct,
179.32the department may consider that person's report and assistance in investigating the
179.33misconduct as a mitigating factor in the department's pursuit of civil, criminal, or
179.34administrative remedies.
180.1    Subd. 15. Data privacy. Data of any kind obtained or created in relation to a provider
180.2or recipient investigation under this section is defined, classified, and protected the same as
180.3all other data under section 13.46, and this data has the same classification as licensing data.
180.4    Subd. 16. Monetary recovery; random sample extrapolation. The department is
180.5authorized to calculate the amount of monetary recovery from a provider, license holder, or
180.6controlling individual based upon extrapolation from a statistical random sample of claims
180.7submitted by the provider, license holder, or controlling individual and paid by the child
180.8care assistance program. The department's random sample extrapolation shall constitute a
180.9rebuttable presumption of the accuracy of the calculation of monetary recovery. If the
180.10presumption is not rebutted by the provider, license holder, or controlling individual in the
180.11appeal process, the department shall use the extrapolation as the monetary recovery figure.
180.12The department may use sampling and extrapolation to calculate the amount of monetary
180.13recovery if the claims to be reviewed represent services to 50 or more children in care.
180.14    Subd. 17. Effect of department's monetary penalty determination. Unless a
180.15timely and proper appeal is received by the department, the department's administrative
180.16determination or sanction shall be considered a final department determination.
180.17    Subd. 18. Office of Inspector General recoveries. Overpayment recoveries
180.18resulting from child care provider fraud investigations initiated by the department's Office
180.19of Inspector General's fraud investigations staff are excluded from the county recovery
180.20provision in section 119B.11, subdivision 3.

180.21    Sec. 6. Minnesota Statutes 2012, section 256B.04, subdivision 21, is amended to read:
180.22    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
180.23Medicare and Medicaid Services determines that a provider is designated "high-risk," the
180.24commissioner may withhold payment from providers within that category upon initial
180.25enrollment for a 90-day period. The withholding for each provider must begin on the date
180.26of the first submission of a claim.
180.27(b) An enrolled provider that is also licensed by the commissioner under chapter
180.28245A must designate an individual as the entity's compliance officer. The compliance
180.29officer must:
180.30(1) develop policies and procedures to assure adherence to medical assistance laws
180.31and regulations and to prevent inappropriate claims submissions;
180.32(2) train the employees of the provider entity, and any agents or subcontractors of
180.33the provider entity including billers, on the policies and procedures under clause (1);
180.34(3) respond to allegations of improper conduct related to the provision or billing of
180.35medical assistance services, and implement action to remediate any resulting problems;
181.1(4) use evaluation techniques to monitor compliance with medical assistance laws
181.2and regulations;
181.3(5) promptly report to the commissioner any identified violations of medical
181.4assistance laws or regulations; and
181.5    (6) within 60 days of discovery by the provider of a medical assistance
181.6reimbursement overpayment, report the overpayment to the commissioner and make
181.7arrangements with the commissioner for the commissioner's recovery of the overpayment.
181.8The commissioner may require, as a condition of enrollment in medical assistance, that a
181.9provider within a particular industry sector or category establish a compliance program that
181.10contains the core elements established by the Centers for Medicare and Medicaid Services.
181.11(c) The commissioner may revoke the enrollment of an ordering or rendering
181.12provider for a period of not more than one year, if the provider fails to maintain and, upon
181.13request from the commissioner, provide access to documentation relating to written orders
181.14or requests for payment for durable medical equipment, certifications for home health
181.15services, or referrals for other items or services written or ordered by such provider, when
181.16the commissioner has identified a pattern of a lack of documentation. A pattern means a
181.17failure to maintain documentation or provide access to documentation on more than one
181.18occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
181.19provider under the provisions of section 256B.064.
181.20(d) The commissioner shall terminate or deny the enrollment of any individual or
181.21entity if the individual or entity has been terminated from participation in Medicare or
181.22under the Medicaid program or Children's Health Insurance Program of any other state.
181.23(e) As a condition of enrollment in medical assistance, the commissioner shall
181.24require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
181.25and Medicaid Services or the Minnesota Department of Human Services commissioner
181.26 permit the Centers for Medicare and Medicaid Services, its agents, or its designated
181.27contractors and the state agency, its agents, or its designated contractors to conduct
181.28unannounced on-site inspections of any provider location. The commissioner shall publish
181.29in the Minnesota Health Care Program Provider Manual a list of provider types designated
181.30"limited," "moderate," or "high-risk," based on the criteria and standards used to designate
181.31Medicare providers in Code of Federal Regulations, title 42, section 424.518. The list and
181.32criteria are not subject to the requirements of chapter 14. The commissioner's designations
181.33are not subject to administrative appeal.
181.34(f) As a condition of enrollment in medical assistance, the commissioner shall
181.35require that a high-risk provider, or a person with a direct or indirect ownership interest in
181.36the provider of five percent or higher, consent to criminal background checks, including
182.1fingerprinting, when required to do so under state law or by a determination by the
182.2commissioner or the Centers for Medicare and Medicaid Services that a provider is
182.3designated high-risk for fraud, waste, or abuse.
182.4(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical
182.5equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in
182.6Minnesota and receiving Medicaid funds, must purchase a surety bond that is annually
182.7renewed and designates the Minnesota Department of Human Services as the obligee, and
182.8must be submitted in a form approved by the commissioner.
182.9(2) At the time of initial enrollment or reenrollment, the provider agency must
182.10purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
182.11in the previous calendar year is up to and including $300,000, the provider agency must
182.12purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
182.13in the previous calendar year is over $300,000, the provider agency must purchase a
182.14performance bond of $100,000. The performance bond must allow for recovery of costs
182.15and fees in pursuing a claim on the bond.
182.16(h) The Department of Human Services may require a provider to purchase a
182.17performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
182.18or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
182.19department determines there is significant evidence of or potential for fraud and abuse by
182.20the provider, or (3) the provider or category of providers is designated high-risk pursuant
182.21to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
182.22performance bond must be in an amount of $100,000 or ten percent of the provider's
182.23payments from Medicaid during the immediately preceding 12 months, whichever is
182.24greater. The performance bond must name the Department of Human Services as an
182.25obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.
182.26EFFECTIVE DATE.This section is effective the day following final enactment.

182.27    Sec. 7. Minnesota Statutes 2012, section 256B.04, is amended by adding a subdivision
182.28to read:
182.29    Subd. 22. Application fee. (a) The commissioner must collect and retain federally
182.30required nonrefundable application fees to pay for provider screening activities in
182.31accordance with Code of Federal Regulations, title 42, section 455, subpart E. The
182.32enrollment application must be made under the procedures specified by the commissioner,
182.33in the form specified by the commissioner, and accompanied by an application fee
182.34described in paragraph (b), or a request for a hardship exception as described in the
182.35specified procedures. Application fees must be deposited in the provider screening account
183.1in the special revenue fund. Amounts in the provider screening account are appropriated
183.2to the commissioner for costs associated with the provider screening activities required
183.3in Code of Federal Regulations, title 42, section 455, subpart E. The commissioner
183.4shall conduct screening activities as required by Code of Federal Regulations, title 42,
183.5section 455, subpart E, and as otherwise provided by law, to include database checks,
183.6unannounced pre- and postenrollment site visits, fingerprinting, and criminal background
183.7studies. The commissioner must revalidate all providers under this subdivision at least
183.8once every five years.
183.9(b) The application fee under this subdivision is $532 for the calendar year 2013.
183.10For calendar year 2014 and subsequent years, the fee:
183.11(1) is adjusted by the percentage change to the consumer price index for all urban
183.12consumers, United States city average, for the 12-month period ending with June of the
183.13previous year. The resulting fee must be announced in the Federal Register;
183.14(2) is effective from January 1 to December 31 of a calendar year;
183.15(3) is required on the submission of an initial application, an application to establish
183.16a new practice location, an application for re-enrollment when the provider is not enrolled
183.17at the time of application of re-enrollment, or at revalidation when required by federal
183.18regulation; and
183.19(4) must be in the amount in effect for the calendar year during which the application
183.20for enrollment, new practice location, or re-enrollment is being submitted.
183.21(c) The application fee under this subdivision cannot be charged to:
183.22(1) providers who are enrolled in Medicare or who provide documentation of
183.23payment of the fee to, and enrollment with, another state, unless the commissioner is
183.24required to rescreen the provider;
183.25(2) providers who are enrolled but are required to submit new applications for
183.26purposes of reenrollment;
183.27(3) a provider who enrolls as an individual; and
183.28(4) group practices and clinics that bill on behalf of individually enrolled providers
183.29within the practice who have reassigned their billing privileges to the group practice
183.30or clinic.
183.31EFFECTIVE DATE.This section is effective the day following final enactment.

183.32    Sec. 8. Minnesota Statutes 2012, section 256B.064, subdivision 1a, is amended to read:
183.33    Subd. 1a. Grounds for sanctions against vendors. The commissioner may
183.34impose sanctions against a vendor of medical care for any of the following: (1) fraud,
183.35theft, or abuse in connection with the provision of medical care to recipients of public
184.1assistance; (2) a pattern of presentment of false or duplicate claims or claims for services
184.2not medically necessary; (3) a pattern of making false statements of material facts for
184.3the purpose of obtaining greater compensation than that to which the vendor is legally
184.4entitled; (4) suspension or termination as a Medicare vendor; (5) refusal to grant the state
184.5agency access during regular business hours to examine all records necessary to disclose
184.6the extent of services provided to program recipients and appropriateness of claims for
184.7payment; (6) failure to repay an overpayment or a fine finally established under this
184.8section; and (7) failure to correct errors in the maintenance of health service or financial
184.9records for which a fine was imposed or after issuance of a warning by the commissioner;
184.10and (8) any reason for which a vendor could be excluded from participation in the
184.11Medicare program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act.
184.12The determination of services not medically necessary may be made by the commissioner
184.13in consultation with a peer advisory task force appointed by the commissioner on the
184.14recommendation of appropriate professional organizations. The task force expires as
184.15provided in section 15.059, subdivision 5.

184.16    Sec. 9. Minnesota Statutes 2012, section 256B.064, subdivision 1b, is amended to read:
184.17    Subd. 1b. Sanctions available. The commissioner may impose the following
184.18sanctions for the conduct described in subdivision 1a: suspension or withholding of
184.19payments to a vendor and suspending or terminating participation in the program, or
184.20imposition of a fine under subdivision 2, paragraph (f). When imposing sanctions under
184.21this section, the commissioner shall consider the nature, chronicity, or severity of the
184.22conduct and the effect of the conduct on the health and safety of persons served by the
184.23vendor. Regardless of imposition of sanctions, the commissioner may make a referral
184.24to the appropriate state licensing board.

184.25    Sec. 10. Minnesota Statutes 2012, section 256B.064, subdivision 2, is amended to read:
184.26    Subd. 2. Imposition of monetary recovery and sanctions. (a) The commissioner
184.27shall determine any monetary amounts to be recovered and sanctions to be imposed upon
184.28a vendor of medical care under this section. Except as provided in paragraphs (b) and
184.29(d), neither a monetary recovery nor a sanction will be imposed by the commissioner
184.30without prior notice and an opportunity for a hearing, according to chapter 14, on the
184.31commissioner's proposed action, provided that the commissioner may suspend or reduce
184.32payment to a vendor of medical care, except a nursing home or convalescent care facility,
184.33after notice and prior to the hearing if in the commissioner's opinion that action is
184.34necessary to protect the public welfare and the interests of the program.
185.1(b) Except when the commissioner finds good cause not to suspend payments under
185.2Code of Federal Regulations, title 42, section 455.23 (e) or (f), the commissioner shall
185.3withhold or reduce payments to a vendor of medical care without providing advance
185.4notice of such withholding or reduction if either of the following occurs:
185.5(1) the vendor is convicted of a crime involving the conduct described in subdivision
185.61a; or
185.7(2) the commissioner determines there is a credible allegation of fraud for which an
185.8investigation is pending under the program. A credible allegation of fraud is an allegation
185.9which has been verified by the state, from any source, including but not limited to:
185.10(i) fraud hotline complaints;
185.11(ii) claims data mining; and
185.12(iii) patterns identified through provider audits, civil false claims cases, and law
185.13enforcement investigations.
185.14Allegations are considered to be credible when they have an indicia of reliability
185.15and the state agency has reviewed all allegations, facts, and evidence carefully and acts
185.16judiciously on a case-by-case basis.
185.17(c) The commissioner must send notice of the withholding or reduction of payments
185.18under paragraph (b) within five days of taking such action unless requested in writing by a
185.19law enforcement agency to temporarily withhold the notice. The notice must:
185.20(1) state that payments are being withheld according to paragraph (b);
185.21(2) set forth the general allegations as to the nature of the withholding action, but
185.22need not disclose any specific information concerning an ongoing investigation;
185.23(3) except in the case of a conviction for conduct described in subdivision 1a, state
185.24that the withholding is for a temporary period and cite the circumstances under which
185.25withholding will be terminated;
185.26(4) identify the types of claims to which the withholding applies; and
185.27(5) inform the vendor of the right to submit written evidence for consideration by
185.28the commissioner.
185.29The withholding or reduction of payments will not continue after the commissioner
185.30determines there is insufficient evidence of fraud by the vendor, or after legal proceedings
185.31relating to the alleged fraud are completed, unless the commissioner has sent notice of
185.32intention to impose monetary recovery or sanctions under paragraph (a).
185.33(d) The commissioner shall suspend or terminate a vendor's participation in the
185.34program without providing advance notice and an opportunity for a hearing when the
185.35suspension or termination is required because of the vendor's exclusion from participation
186.1in Medicare. Within five days of taking such action, the commissioner must send notice of
186.2the suspension or termination. The notice must:
186.3(1) state that suspension or termination is the result of the vendor's exclusion from
186.4Medicare;
186.5(2) identify the effective date of the suspension or termination; and
186.6(3) inform the vendor of the need to be reinstated to Medicare before reapplying
186.7for participation in the program.
186.8(e) Upon receipt of a notice under paragraph (a) that a monetary recovery or
186.9sanction is to be imposed, a vendor may request a contested case, as defined in section
186.1014.02, subdivision 3 , by filing with the commissioner a written request of appeal. The
186.11appeal request must be received by the commissioner no later than 30 days after the date
186.12the notification of monetary recovery or sanction was mailed to the vendor. The appeal
186.13request must specify:
186.14(1) each disputed item, the reason for the dispute, and an estimate of the dollar
186.15amount involved for each disputed item;
186.16(2) the computation that the vendor believes is correct;
186.17(3) the authority in statute or rule upon which the vendor relies for each disputed item;
186.18(4) the name and address of the person or entity with whom contacts may be made
186.19regarding the appeal; and
186.20(5) other information required by the commissioner.
186.21(f) The commissioner may order a vendor to forfeit a fine for failure to fully document
186.22services according to standards in this chapter and Minnesota Rules, chapter 9505. The
186.23commissioner may assess fines if specific required components of documentation are
186.24missing. The fine for incomplete documentation shall equal 20 percent of the amount paid
186.25on the claims for reimbursement submitted by the vendor, or up to $5,000, whichever is less.
186.26(g) The vendor shall pay the fine assessed on or before the payment date specified. If
186.27the vendor fails to pay the fine, the commissioner may withhold or reduce payments and
186.28recover the amount of the fine. A timely appeal shall stay payment of the fine until the
186.29commissioner issues a final order.

186.30    Sec. 11. Minnesota Statutes 2012, section 256B.0659, subdivision 21, is amended to
186.31read:
186.32    Subd. 21. Requirements for initial provider enrollment of personal care
186.33assistance provider agencies. (a) All personal care assistance provider agencies must
186.34provide, at the time of enrollment, reenrollment, and revalidation as a personal care
187.1assistance provider agency in a format determined by the commissioner, information and
187.2documentation that includes, but is not limited to, the following:
187.3    (1) the personal care assistance provider agency's current contact information
187.4including address, telephone number, and e-mail address;
187.5    (2) proof of surety bond coverage in the amount of $50,000 or ten percent of the
187.6provider's payments from Medicaid in the previous year, whichever is less;
187.7    (2) proof of surety bond coverage. Upon new enrollment, or if the provider's
187.8Medicaid revenue in the previous calendar year is up to and including $300,000,
187.9the provider agency must purchase a performance bond of $50,000. If the Medicaid
187.10revenue in the previous year is over $300,000, the provider agency must purchase a
187.11performance bond of $100,000. The performance bond must be in a form approved by the
187.12commissioner, must be renewed annually, and must allow for recovery of costs and fees
187.13in pursuing a claim on the bond;
187.14    (3) proof of fidelity bond coverage in the amount of $20,000;
187.15    (4) proof of workers' compensation insurance coverage;
187.16    (5) proof of liability insurance;
187.17    (6) a description of the personal care assistance provider agency's organization
187.18identifying the names of all owners, managing employees, staff, board of directors, and
187.19the affiliations of the directors, owners, or staff to other service providers;
187.20    (7) a copy of the personal care assistance provider agency's written policies and
187.21procedures including: hiring of employees; training requirements; service delivery;
187.22and employee and consumer safety including process for notification and resolution
187.23of consumer grievances, identification and prevention of communicable diseases, and
187.24employee misconduct;
187.25    (8) copies of all other forms the personal care assistance provider agency uses in
187.26the course of daily business including, but not limited to:
187.27    (i) a copy of the personal care assistance provider agency's time sheet if the time
187.28sheet varies from the standard time sheet for personal care assistance services approved
187.29by the commissioner, and a letter requesting approval of the personal care assistance
187.30provider agency's nonstandard time sheet;
187.31    (ii) the personal care assistance provider agency's template for the personal care
187.32assistance care plan; and
187.33    (iii) the personal care assistance provider agency's template for the written
187.34agreement in subdivision 20 for recipients using the personal care assistance choice
187.35option, if applicable;
188.1    (9) a list of all training and classes that the personal care assistance provider agency
188.2requires of its staff providing personal care assistance services;
188.3    (10) documentation that the personal care assistance provider agency and staff have
188.4successfully completed all the training required by this section;
188.5    (11) documentation of the agency's marketing practices;
188.6    (12) disclosure of ownership, leasing, or management of all residential properties
188.7that is used or could be used for providing home care services;
188.8    (13) documentation that the agency will use the following percentages of revenue
188.9generated from the medical assistance rate paid for personal care assistance services
188.10for employee personal care assistant wages and benefits: 72.5 percent of revenue in the
188.11personal care assistance choice option and 72.5 percent of revenue from other personal
188.12care assistance providers. The revenue generated by the qualified professional and the
188.13reasonable costs associated with the qualified professional shall not be used in making
188.14this calculation; and
188.15    (14) effective May 15, 2010, documentation that the agency does not burden
188.16recipients' free exercise of their right to choose service providers by requiring personal
188.17care assistants to sign an agreement not to work with any particular personal care
188.18assistance recipient or for another personal care assistance provider agency after leaving
188.19the agency and that the agency is not taking action on any such agreements or requirements
188.20regardless of the date signed.
188.21    (b) Personal care assistance provider agencies shall provide the information specified
188.22in paragraph (a) to the commissioner at the time the personal care assistance provider
188.23agency enrolls as a vendor or upon request from the commissioner. The commissioner
188.24shall collect the information specified in paragraph (a) from all personal care assistance
188.25providers beginning July 1, 2009.
188.26    (c) All personal care assistance provider agencies shall require all employees in
188.27management and supervisory positions and owners of the agency who are active in the
188.28day-to-day management and operations of the agency to complete mandatory training
188.29as determined by the commissioner before enrollment of the agency as a provider.
188.30Employees in management and supervisory positions and owners who are active in
188.31the day-to-day operations of an agency who have completed the required training as
188.32an employee with a personal care assistance provider agency do not need to repeat
188.33the required training if they are hired by another agency, if they have completed the
188.34training within the past three years. By September 1, 2010, the required training must
188.35be available with meaningful access according to title VI of the Civil Rights Act and
188.36federal regulations adopted under that law or any guidance from the United States Health
189.1and Human Services Department. The required training must be available online or by
189.2electronic remote connection. The required training must provide for competency testing.
189.3Personal care assistance provider agency billing staff shall complete training about
189.4personal care assistance program financial management. This training is effective July 1,
189.52009. Any personal care assistance provider agency enrolled before that date shall, if it
189.6has not already, complete the provider training within 18 months of July 1, 2009. Any new
189.7owners or employees in management and supervisory positions involved in the day-to-day
189.8operations are required to complete mandatory training as a requisite of working for the
189.9agency. Personal care assistance provider agencies certified for participation in Medicare
189.10as home health agencies are exempt from the training required in this subdivision. When
189.11available, Medicare-certified home health agency owners, supervisors, or managers must
189.12successfully complete the competency test.
189.13EFFECTIVE DATE.This section is effective the day following final enactment.

189.14    Sec. 12. Minnesota Statutes 2012, section 299C.093, is amended to read:
189.15299C.093 DATABASE OF REGISTERED PREDATORY OFFENDERS.
189.16The superintendent of the Bureau of Criminal Apprehension shall maintain a
189.17computerized data system relating to individuals required to register as predatory offenders
189.18under section 243.166. To the degree feasible, the system must include the data required
189.19to be provided under section 243.166, subdivisions 4 and 4a, and indicate the time period
189.20that the person is required to register. The superintendent shall maintain this data in a
189.21manner that ensures that it is readily available to law enforcement agencies. This data is
189.22private data on individuals under section 13.02, subdivision 12, but may be used for law
189.23enforcement and corrections purposes. The commissioner of human services has access
189.24to the data for state-operated services, as defined in section 246.014, are also authorized
189.25to have access to the data for the purposes described in section 246.13, subdivision 2,
189.26paragraph (b), and for purposes of conducting background studies under chapter 245C.

189.27    Sec. 13. Minnesota Statutes 2012, section 402A.10, is amended to read:
189.28402A.10 DEFINITIONS.
189.29    Subdivision 1. Terms defined. For the purposes of this chapter, the terms defined
189.30in this section have the meanings given.
189.31    Subd. 1a. Balanced set of program measures. A "balanced set of program
189.32measures" is a set of measures that, together, adequately quantify achievement toward a
189.33particular program's outcome. As directed by section 402A.16, the Human Services
190.1Performance Council must recommend to the commissioner when a particular program
190.2has a balanced set of program measures.
190.3    Subd. 2. Commissioner. "Commissioner" means the commissioner of human
190.4services.
190.5    Subd. 3. Council. "Council" means the State-County Results, Accountability, and
190.6Service Delivery Redesign Council established in section 402A.20.
190.7    Subd. 4. Essential human services or essential services. "Essential human
190.8services" or "essential services" means assistance and services to recipients or potential
190.9recipients of public welfare and other services delivered by counties or tribes that are
190.10mandated in federal and state law that are to be available in all counties of the state.
190.11    Subd. 4a. Essential human services program. An "essential human services
190.12program" for the purposes of remedies under section 402A.18 means the following
190.13programs:
190.14(1) child welfare, including protection, truancy, minor parent, guardianship, and
190.15adoption;
190.16(2) children's mental health;
190.17(3) children's disability services;
190.18(4) public assistance eligibility, including measures related to processing timelines
190.19across information services programs;
190.20(5) MFIP;
190.21(6) child support;
190.22(7) chemical dependency;
190.23(8) adult disability;
190.24(9) adult mental health;
190.25(10) adult services such as long-term care; and
190.26(11) adult protection.
190.27    Subd. 4b. Measure. A "measure" means a quantitative indicator of a performance
190.28outcome.
190.29    Subd. 4c. Performance improvement plan. A "performance improvement plan"
190.30means a plan developed by a county or service delivery authority that describes steps the
190.31county or service delivery authority must take to improve performance on a specific
190.32measure or set of measures. The performance improvement plan must be negotiated
190.33with and approved by the commissioner. The performance improvement plan must
190.34require a specific numerical improvement in the measure or measures on which the plan
190.35is based and may include specific programmatic best practices or specific performance
190.36management practices that the county must implement.
191.1    Subd. 4d. Performance management system for human services. A "performance
191.2management system for human services" means a process by which performance data for
191.3essential human services is collected from counties or service delivery authorities and used
191.4to inform a variety of stakeholders and to improve performance over time.
191.5    Subd. 5. Service delivery authority. "Service delivery authority" means a single
191.6county, or consortium of counties operating by execution of a joint powers agreement
191.7under section 471.59 or other contractual agreement, that has voluntarily chosen by
191.8resolution of the county board of commissioners to participate in the redesign under this
191.9chapter or has been assigned by the commissioner pursuant to section 402A.18. A service
191.10delivery authority includes an Indian tribe or group of tribes that have voluntarily chosen
191.11by resolution of tribal government to participate in redesign under this chapter.
191.12    Subd. 6. Steering committee. "Steering committee" means the Steering Committee
191.13on Performance and Outcome Reforms.

191.14    Sec. 14. [402A.12] ESTABLISHMENT OF A PERFORMANCE MANAGEMENT
191.15SYSTEM FOR HUMAN SERVICES.
191.16By January 1, 2014, the commissioner shall implement a performance management
191.17system for essential human services as described in sections 402A.15 to 402A.18 that
191.18includes initial performance measures and standards consistent with the recommendations
191.19of the Steering Committee on Performance and Outcome Reforms in the December 2012
191.20report to the legislature.

191.21    Sec. 15. [402A.16] HUMAN SERVICES PERFORMANCE COUNCIL.
191.22    Subdivision 1. Establishment. By October 1, 2013, the commissioner shall convene
191.23a Human Services Performance Council to advise the commissioner on the implementation
191.24and operation of the performance management system for human services.
191.25    Subd. 2. Duties. The Human Services Performance Council shall:
191.26(1) hold meetings at least quarterly that are in compliance with Minnesota's Open
191.27Meeting Law under chapter 13D;
191.28(2) annually review the annual performance data submitted by counties or service
191.29delivery authorities;
191.30(3) review and advise the commissioner on department procedures related to the
191.31implementation of the performance management system and system process requirements
191.32and on barriers to process improvement in human services delivery;
191.33(4) advise the commissioner on the training and technical assistance needs of county
191.34or service delivery authority and department personnel;
192.1(5) review instances in which a county or service delivery authority has not made
192.2adequate progress on a performance improvement plan and make recommendations to
192.3the commissioner under section 402A.18;
192.4(6) consider appeals from counties or service delivery authorities that are in the
192.5remedies process and make recommendations to the commissioner on resolving the issue;
192.6(7) convene working groups to update and develop outcomes, measures, and
192.7performance standards for the performance management system and, on an annual basis,
192.8present these recommendations to the commissioner, including recommendations on when
192.9a particular essential human service program has a balanced set of program measures
192.10in place;
192.11(8) make recommendations on human services administrative rules or statutes that
192.12could be repealed in order to improve service delivery;
192.13(9) provide information to stakeholders on the council's role and regularly collect
192.14stakeholder input on performance management system performance; and
192.15(10) submit an annual report to the legislature and the commissioner, which
192.16includes a comprehensive report on the performance of individual counties or service
192.17delivery authorities as it relates to system measures; a list of counties or service delivery
192.18authorities that have been required to create performance improvement plans and the areas
192.19identified for improvement as part of the remedies process; a summary of performance
192.20improvement training and technical assistance activities offered to the county personnel
192.21by the department; recommendations on administrative rules or state statutes that could be
192.22repealed in order to improve service delivery; recommendations for system improvements,
192.23including updates to system outcomes, measures, and standards; and a response from
192.24the commissioner.
192.25    Subd. 3. Membership. (a) Human Services Performance Council membership shall
192.26be equally balanced among the following five stakeholder groups: the Association of
192.27Minnesota Counties, the Minnesota Association of County Social Service Administrators,
192.28the Department of Human Services, tribes and communities of color, and service providers
192.29and advocates for persons receiving human services. The Association of Minnesota
192.30Counties and the Minnesota Association of County Social Service Administrators shall
192.31appoint their own respective representatives. The commissioner of human services shall
192.32appoint representatives of the Department of Human Services, tribes and communities of
192.33color, and social services providers and advocates. Minimum council membership shall
192.34be 15 members, with at least three representatives from each stakeholder group, and
192.35maximum council membership shall be 20 members, with four representatives from
192.36each stakeholder group.
193.1(b) Notwithstanding section 15.059, Human Services Performance Council members
193.2shall be appointed for a minimum of two years, but may serve longer terms at the
193.3discretion of their appointing authority.
193.4(c) Notwithstanding section 15.059, members of the council shall receive no
193.5compensation for their services.
193.6(d) A commissioner's representative and a county representative from either the
193.7Association of Minnesota Counties or the Minnesota Association of County Social Service
193.8Administrators shall serve as Human Services Performance Council cochairs.
193.9    Subd. 4. Commissioner duties. The commissioner shall:
193.10(1) implement and maintain the performance management system for human services;
193.11(2) establish and regularly update the system's outcomes, measures, and standards,
193.12including the minimum performance standard for each performance measure;
193.13(3) determine when a particular program has a balanced set of measures;
193.14(4) receive reports from counties or service delivery authorities at least annually on
193.15their performance against system measures, provide counties with data needed to assess
193.16performance and monitor progress, and provide timely feedback to counties or service
193.17delivery authorities on their performance;
193.18(5) implement and monitor the remedies process in section 402A.18;
193.19(6) report to the Human Services Performance Council on county or service delivery
193.20authority performance on a semiannual basis;
193.21(7) provide general training and technical assistance to counties or service delivery
193.22authorities on topics related to performance measurement and performance improvement;
193.23(8) provide targeted training and technical assistance to counties or service delivery
193.24authorities that supports their performance improvement plans; and
193.25(9) provide staff support for the Human Services Performance Council.
193.26    Subd. 5. County or service delivery authority duties. The counties or service
193.27delivery authorities shall:
193.28(1) report performance data to meet performance management system requirements;
193.29and
193.30(2) provide training to personnel on basic principles of performance measurement
193.31and improvement and participate in training provided by the department.

193.32    Sec. 16. Minnesota Statutes 2012, section 402A.18, is amended to read:
193.33402A.18 COMMISSIONER POWER TO REMEDY FAILURE TO MEET
193.34PERFORMANCE OUTCOMES.
194.1    Subdivision 1. Underperforming county; specific service. If the commissioner
194.2determines that a county or service delivery authority is deficient in achieving minimum
194.3performance outcomes standards for a specific essential service human services program,
194.4the commissioner may impose the following remedies and adjust state and federal
194.5program allocations accordingly:
194.6(1) voluntary incorporation of the administration and operation of the specific
194.7essential service human services program with an existing service delivery authority or
194.8another county. A service delivery authority or county incorporating an underperforming
194.9county shall not be financially liable for the costs associated with remedying performance
194.10outcome deficiencies;
194.11(2) mandatory incorporation of the administration and operation of the specific
194.12essential service human services program with an existing service delivery authority or
194.13another county. A service delivery authority or county incorporating an underperforming
194.14county shall not be financially liable for the costs associated with remedying performance
194.15outcome deficiencies; or
194.16(3) transfer of authority for program administration and operation of the specific
194.17essential service human services program to the commissioner.
194.18    Subd. 2. Underperforming county; more than one-half of services. If the
194.19commissioner determines that a county or service delivery authority is deficient in
194.20achieving minimum performance outcomes standards for more than one-half of the defined
194.21essential human services programs, the commissioner may impose the following remedies:
194.22(1) voluntary incorporation of the administration and operation of essential human
194.23services programs with an existing service delivery authority or another county. A
194.24service delivery authority or county incorporating an underperforming county shall
194.25not be financially liable for the costs associated with remedying performance outcome
194.26deficiencies;
194.27(2) mandatory incorporation of the administration and operation of essential human
194.28services programs with an existing service delivery authority or another county. A
194.29service delivery authority or county incorporating an underperforming county shall
194.30not be financially liable for the costs associated with remedying performance outcome
194.31deficiencies; or
194.32(3) transfer of authority for program administration and operation of essential human
194.33services programs to the commissioner.
194.34    Subd. 2a. Financial responsibility of underperforming county. A county subject
194.35to remedies under subdivision 1 or 2 shall provide to the entity assuming administration
195.1of the essential service or essential human services program or programs the amount of
195.2nonfederal and nonstate funding needed to remedy performance outcome deficiencies.
195.3    Subd. 3. Conditions prior to imposing remedies. Before the commissioner may
195.4impose the remedies authorized under this section, the following conditions must be met:
195.5(1) the county or service delivery authority determined by the commissioner
195.6to be deficient in achieving minimum performance outcomes has the opportunity, in
195.7coordination with the council, to develop a program outcome improvement plan. The
195.8program outcome improvement plan must be developed no later than six months from the
195.9date of the deficiency determination; and
195.10(2) the council has conducted an assessment of the program outcome improvement
195.11plan to determine if the county or service delivery authority has made satisfactory progress
195.12toward performance outcomes and has made a recommendation about remedies to the
195.13commissioner. The assessment and recommendation must be made to the commissioner
195.14within 12 months from the date of the deficiency determination. (a) The commissioner
195.15shall notify a county or service delivery authority that it must submit a performance
195.16improvement plan if:
195.17(1) the county or service delivery authority does not meet the minimum performance
195.18standard for a measure; or
195.19(2) the county or service delivery authority does not meet the minimum performance
195.20standard for one or more racial or ethnic subgroup for which there is a statistically valid
195.21population size for three or more measures, even if the county or service delivery authority
195.22met the standard for the overall population.
195.23The commissioner must approve the performance improvement plan. The county or
195.24service delivery authority may negotiate the terms of the performance improvement plan
195.25with the commissioner.
195.26(b) When the department determines that a county or service delivery authority does
195.27not meet the minimum performance standard for a given measure, the commissioner
195.28must advise the county or service delivery authority that fiscal penalties may result if the
195.29performance does not improve. The department must offer technical assistance to the
195.30county or service delivery authority. Within 30 days of the initial advisement from the
195.31department, the county or service delivery authority may claim and the department may
195.32approve an extenuating circumstance that relieves the county or service delivery authority
195.33of any further remedy. If a county or service delivery authority has a small number of
195.34participants in an essential human services program such that reliable measurement is
195.35not possible, the commissioner may approve extenuating circumstances or may average
195.36performance over three years.
196.1(c) If there are no extenuating circumstances, the county or service delivery authority
196.2must submit a performance improvement plan to the commissioner within 60 days of the
196.3initial advisement from the department. The term of the performance improvement plan
196.4must be two years, starting with the date the plan is approved by the commissioner. This
196.5plan must include a target level for improvement for each measure that did not meet
196.6the minimum performance standard. The commissioner must approve the performance
196.7improvement plan within 60 days of submittal.
196.8(d) The department must monitor the performance improvement plan for two
196.9years. After two years, if the county or service delivery authority meets the minimum
196.10performance standard, there is no further remedy. If the county or service delivery
196.11authority fails to meet the minimum performance standard, but meets the improvement
196.12target in the performance improvement plan, the county or service delivery authority shall
196.13modify the performance improvement plan for further improvement and the department
196.14shall continue to monitor the plan.
196.15(e) If, after two years of monitoring, the county or service delivery authority fails to
196.16meet both the minimum performance standard and the improvement target identified in
196.17the performance improvement plan, the next step of the remedies process shall be invoked
196.18by the commissioner. This phase of the remedies process may include:
196.19(1) fiscal penalties for the county or service delivery authority that do not exceed
196.20one percent of the county's human services expenditures and that are negotiated in the
196.21performance improvement plan, based on what is needed to improve outcomes. Counties
196.22or service delivery authorities must reinvest the amount of the fiscal penalty into the
196.23essential human services program that was underperforming. A county or service delivery
196.24authority shall not be required to pay more than three fiscal penalties in a year; and
196.25(2) the department's provision of technical assistance to the county or service
196.26delivery authority that is targeted to address the specific performance issues.
196.27The commissioner shall continue monitoring the performance improvement plan for a
196.28third year.
196.29(f) If, after the third year of monitoring, the county or service delivery authority
196.30meets the minimum performance standard, there is no further remedy. If the county or
196.31service delivery authority fails to meet the minimum performance standard, but meets the
196.32improvement target for the performance improvement plan, the county or service delivery
196.33authority shall modify the performance improvement plan for further improvement and
196.34the department shall continue to monitor the plan.
196.35(g) If, after the third year of monitoring, the county or service delivery authority fails
196.36to meet the minimum performance standard and the improvement target identified in the
197.1performance improvement plan, the Human Services Performance Council shall review
197.2the situation and recommend a course of action to the commissioner.
197.3(h) If the commissioner has determined that a program has a balanced set of program
197.4measures and a county or service delivery authority is subject to fiscal penalties for more
197.5than one-half of the measures for that program, the commissioner may apply further
197.6remedies as described in subdivisions 1 and 2.

197.7    Sec. 17. INSTRUCTIONS TO THE COMMISSIONER.
197.8    In collaboration with labor organizations, the commissioner of human services shall
197.9develop clear and consistent standards for state-operated services programs to:
197.10    (1) address direct service staffing shortages;
197.11    (2) identify and help resolve workplace safety issues; and
197.12    (3) elevate the use and visibility of performance measures and objectives related to
197.13overtime use.

197.14ARTICLE 6
197.15HEALTH CARE

197.16    Section 1. Minnesota Statutes 2012, section 245.03, subdivision 1, is amended to read:
197.17    Subdivision 1. Establishment. There is created a Department of Human Services.
197.18A commissioner of human services shall be appointed by the governor under the
197.19provisions of section 15.06. The commissioner shall be selected on the basis of ability and
197.20experience in welfare and without regard to political affiliations. The commissioner shall
197.21 may appoint a up to two deputy commissioner commissioners.

197.22    Sec. 2. Minnesota Statutes 2012, section 256.9657, subdivision 3, is amended to read:
197.23    Subd. 3. Surcharge on HMOs and community integrated service networks. (a)
197.24Effective October 1, 1992, each health maintenance organization with a certificate of
197.25authority issued by the commissioner of health under chapter 62D and each community
197.26integrated service network licensed by the commissioner under chapter 62N shall pay to
197.27the commissioner of human services a surcharge equal to six-tenths of one percent of the
197.28total premium revenues of the health maintenance organization or community integrated
197.29service network as reported to the commissioner of health according to the schedule in
197.30subdivision 4.
197.31(b) For purposes of this subdivision, total premium revenue means:
197.32(1) premium revenue recognized on a prepaid basis from individuals and groups
197.33for provision of a specified range of health services over a defined period of time which
198.1is normally one month, excluding premiums paid to a health maintenance organization
198.2or community integrated service network from the Federal Employees Health Benefit
198.3Program;
198.4(2) premiums from Medicare wraparound subscribers for health benefits which
198.5supplement Medicare coverage;
198.6(3) Medicare revenue, as a result of an arrangement between a health maintenance
198.7organization or a community integrated service network and the Centers for Medicare
198.8and Medicaid Services of the federal Department of Health and Human Services, for
198.9services to a Medicare beneficiary, excluding Medicare revenue that states are prohibited
198.10from taxing under sections 1854, 1860D-12, and 1876 of title XVIII of the federal Social
198.11Security Act, codified as United States Code, title 42, sections 1395mm, 1395w-112, and
198.121395w-24, respectively, as they may be amended from time to time; and
198.13(4) medical assistance revenue, as a result of an arrangement between a health
198.14maintenance organization or community integrated service network and a Medicaid state
198.15agency, for services to a medical assistance beneficiary.
198.16If advance payments are made under clause (1) or (2) to the health maintenance
198.17organization or community integrated service network for more than one reporting period,
198.18the portion of the payment that has not yet been earned must be treated as a liability.
198.19(c) When a health maintenance organization or community integrated service
198.20network merges or consolidates with or is acquired by another health maintenance
198.21organization or community integrated service network, the surviving corporation or the
198.22new corporation shall be responsible for the annual surcharge originally imposed on
198.23each of the entities or corporations subject to the merger, consolidation, or acquisition,
198.24regardless of whether one of the entities or corporations does not retain a certificate of
198.25authority under chapter 62D or a license under chapter 62N.
198.26(d) Effective July 1 June 15 of each year, the surviving corporation's or the new
198.27corporation's surcharge shall be based on the revenues earned in the second previous
198.28calendar year by all of the entities or corporations subject to the merger, consolidation,
198.29or acquisition regardless of whether one of the entities or corporations does not retain a
198.30certificate of authority under chapter 62D or a license under chapter 62N until the total
198.31premium revenues of the surviving corporation include the total premium revenues of all
198.32the merged entities as reported to the commissioner of health.
198.33(e) When a health maintenance organization or community integrated service
198.34network, which is subject to liability for the surcharge under this chapter, transfers,
198.35assigns, sells, leases, or disposes of all or substantially all of its property or assets, liability
199.1for the surcharge imposed by this chapter is imposed on the transferee, assignee, or buyer
199.2of the health maintenance organization or community integrated service network.
199.3(f) In the event a health maintenance organization or community integrated service
199.4network converts its licensure to a different type of entity subject to liability for the
199.5surcharge under this chapter, but survives in the same or substantially similar form, the
199.6surviving entity remains liable for the surcharge regardless of whether one of the entities
199.7or corporations does not retain a certificate of authority under chapter 62D or a license
199.8under chapter 62N.
199.9(g) The surcharge assessed to a health maintenance organization or community
199.10integrated service network ends when the entity ceases providing services for premiums
199.11and the cessation is not connected with a merger, consolidation, acquisition, or conversion.

199.12    Sec. 3. Minnesota Statutes 2012, section 256.9657, subdivision 4, is amended to read:
199.13    Subd. 4. Payments into the account. (a) Payments to the commissioner under
199.14subdivisions subdivision 1 to 3 must be paid in monthly installments due on the 15th of
199.15the month beginning October 15, 1992. The monthly payment must be equal to the annual
199.16surcharge divided by 12. Payments to the commissioner under subdivisions 2 and 3 for
199.17fiscal year 1993 must be based on calendar year 1990 revenues. Effective July 1 of each
199.18year, beginning in 1993, payments under subdivisions 2 and 3 must be based on revenues
199.19earned in the second previous calendar year.
199.20(b) Effective October 15, 2014, payment to the commissioner under subdivision 2
199.21must be paid in nine monthly installments due on the 15th of the month beginning October
199.2215, 2014, through June 15 of the following year. The monthly payment must be equal
199.23to the annual surcharge divided by nine.
199.24(b) (c) Effective October 1, 1995 2014, and each October 1 thereafter, the payments
199.25in subdivisions subdivision 2 and 3 must be based on revenues earned in the previous
199.26calendar year.
199.27(c) (d) If the commissioner of health does not provide by August 15 of any year data
199.28needed to update the base year for the hospital and or April 15 of any year data needed to
199.29update the base year for the health maintenance organization surcharges, the commissioner
199.30of human services may estimate base year revenue and use that estimate for the purposes
199.31of this section until actual data is provided by the commissioner of health.
199.32(d) (e) Payments to the commissioner under subdivision 3a must be paid in monthly
199.33installments due on the 15th of the month beginning July 15, 2003. The monthly payment
199.34must be equal to the annual surcharge divided by 12.
200.1(f) Payments due in July through September 2014 under subdivision 3 for revenue
200.2earned in calendar year 2012 shall be paid in a lump sum on June 15, 2014. On June
200.315, 2014, each health maintenance organization and community-integrated service
200.4network shall pay all payments under subdivision 3 in a lump sum for revenue earned in
200.5calendar year 2013. Effective June 15, 2015, and each June 15 thereafter, the payments in
200.6subdivision 3 shall be based on revenues earned in the previous calendar year and paid
200.7in a lump sum on June 15 of each year.

200.8    Sec. 4. Minnesota Statutes 2012, section 256.969, subdivision 29, is amended to read:
200.9    Subd. 29. Reimbursement for the fee increase for the early hearing detection
200.10and intervention program. (a) For admissions occurring on or after July 1, 2010,
200.11payment rates shall be adjusted to include the increase to the fee that is effective on July 1,
200.122010, for the early hearing detection and intervention program recipients under section
200.13144.125, subdivision 1 , that is paid by the hospital for public program recipients. This
200.14payment increase shall be in effect until the increase is fully recognized in the base year
200.15cost under subdivision 2b. This payment shall be included in payments to contracted
200.16managed care organizations.
200.17    (b) For admissions occurring on or after July 1, 2013, payment rates shall be adjusted
200.18to include the increase to the fee that is effective July 1, 2013, for the early hearing
200.19detection and intervention program under section 144.125, subdivision 1, paragraph (d),
200.20that is paid by the hospital for medical assistance and MinnesotaCare program enrollees.
200.21This payment increase shall be in effect until the increase is fully recognized in the
200.22base-year cost under subdivision 2b. This payment shall be included in payments to
200.23managed care plans and county-based purchasing plans.

200.24    Sec. 5. Minnesota Statutes 2012, section 256B.04, is amended by adding a subdivision
200.25to read:
200.26    Subd. 22. Medical assistance costs for certain inmates. The commissioner shall
200.27execute an interagency agreement with the commissioner of corrections to recover the
200.28state cost attributable to medical assistance eligibility for inmates of public institutions
200.29admitted to a medical institution on an inpatient basis. The annual amount to be transferred
200.30from the Department of Corrections under the agreement must include all eligible state
200.31medical assistance costs, including administrative costs incurred by the Department of
200.32Human Services, attributable to inmates under state and county jurisdiction admitted to
200.33medical institutions on an inpatient basis that are related to the implementation of section
200.34256B.055, subdivision 14, paragraph (c).

201.1    Sec. 6. Minnesota Statutes 2012, section 256B.055, subdivision 14, is amended to read:
201.2    Subd. 14. Persons detained by law. (a) Medical assistance may be paid for an
201.3inmate of a correctional facility who is conditionally released as authorized under section
201.4241.26 , 244.065, or 631.425, if the individual does not require the security of a public
201.5detention facility and is housed in a halfway house or community correction center, or
201.6under house arrest and monitored by electronic surveillance in a residence approved
201.7by the commissioner of corrections, and if the individual meets the other eligibility
201.8requirements of this chapter.
201.9    (b) An individual who is enrolled in medical assistance, and who is charged with a
201.10crime and incarcerated for less than 12 months shall be suspended from eligibility at the
201.11time of incarceration until the individual is released. Upon release, medical assistance
201.12eligibility is reinstated without reapplication using a reinstatement process and form, if the
201.13individual is otherwise eligible.
201.14    (c) An individual, regardless of age, who is considered an inmate of a public
201.15institution as defined in Code of Federal Regulations, title 42, section 435.1010, and
201.16who meets the eligibility requirements in section 256B.056, is not eligible for medical
201.17assistance, except for covered services received while an inpatient in a medical institution
201.18as defined in Code of Federal Regulations, title 42, section 435.1010. Security issues,
201.19including costs, related to the inpatient treatment of an inmate are the responsibility of the
201.20entity with jurisdiction over the inmate.
201.21EFFECTIVE DATE.This section is effective January 1, 2014.

201.22    Sec. 7. Minnesota Statutes 2012, section 256B.06, subdivision 4, is amended to read:
201.23    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited
201.24to citizens of the United States, qualified noncitizens as defined in this subdivision, and
201.25other persons residing lawfully in the United States. Citizens or nationals of the United
201.26States must cooperate in obtaining satisfactory documentary evidence of citizenship or
201.27nationality according to the requirements of the federal Deficit Reduction Act of 2005,
201.28Public Law 109-171.
201.29(b) "Qualified noncitizen" means a person who meets one of the following
201.30immigration criteria:
201.31(1) admitted for lawful permanent residence according to United States Code, title 8;
201.32(2) admitted to the United States as a refugee according to United States Code,
201.33title 8, section 1157;
201.34(3) granted asylum according to United States Code, title 8, section 1158;
202.1(4) granted withholding of deportation according to United States Code, title 8,
202.2section 1253(h);
202.3(5) paroled for a period of at least one year according to United States Code, title 8,
202.4section 1182(d)(5);
202.5(6) granted conditional entrant status according to United States Code, title 8,
202.6section 1153(a)(7);
202.7(7) determined to be a battered noncitizen by the United States Attorney General
202.8according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996,
202.9title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
202.10(8) is a child of a noncitizen determined to be a battered noncitizen by the United
202.11States Attorney General according to the Illegal Immigration Reform and Immigrant
202.12Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill,
202.13Public Law 104-200; or
202.14(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public
202.15Law 96-422, the Refugee Education Assistance Act of 1980.
202.16(c) All qualified noncitizens who were residing in the United States before August
202.1722, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for
202.18medical assistance with federal financial participation.
202.19(d) Beginning December 1, 1996, qualified noncitizens who entered the United
202.20States on or after August 22, 1996, and who otherwise meet the eligibility requirements
202.21of this chapter are eligible for medical assistance with federal participation for five years
202.22if they meet one of the following criteria:
202.23(1) refugees admitted to the United States according to United States Code, title 8,
202.24section 1157;
202.25(2) persons granted asylum according to United States Code, title 8, section 1158;
202.26(3) persons granted withholding of deportation according to United States Code,
202.27title 8, section 1253(h);
202.28(4) veterans of the United States armed forces with an honorable discharge for
202.29a reason other than noncitizen status, their spouses and unmarried minor dependent
202.30children; or
202.31(5) persons on active duty in the United States armed forces, other than for training,
202.32their spouses and unmarried minor dependent children.
202.33 Beginning July 1, 2010, children and pregnant women who are noncitizens
202.34described in paragraph (b) or who are lawfully present in the United States as defined
202.35in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet
202.36eligibility requirements of this chapter, are eligible for medical assistance with federal
203.1financial participation as provided by the federal Children's Health Insurance Program
203.2Reauthorization Act of 2009, Public Law 111-3.
203.3(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter